Bhutan : Green Power Project Readiness Enhancement

Sovereign Project | 56335-001

Project Details

  • Project Officer
    Ogino, Kaoru
    Sectors Group
    Request for information
  • Approval Date
    28 November 2023
  • Country/Economy
    Bhutan
  • Sector
    • Energy
Project Name Green Power Project Readiness Enhancement
Project Number 56335-001
Country / Economy Bhutan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 6051-BHU: Project Readiness Financing (Energy)
Concessional ordinary capital resources lending US$ 5.00 million
Operational Priorities OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Energy / Large hydropower generation
Gender
Description
Project Rationale and Linkage to Country/Regional Strategy Bhutan has significant potential hydropower reserves estimated at 23,760 MW, of which only 9.8% has been tapped, resulting in an installed generation capacity of 2,334 MW. This electricity is utilized for domestic consumption while the surplus is exported to India. During the wet season, excess power is sold to India, and its revenue earning sustains the Bhutanese economy. Hydropower exports account for approximately 50% of total exports and contribute to 30-40% of the government's annual revenue. These revenues are the primary source for government spending on socioeconomic development for social services such as healthcare, education, and rural development. Thus, Bhutan has been incentivized to promote hydropower development as the key driver for inclusive economic growth. However, hydropower exports have experienced a decline since 2020 due to rising domestic electricity demand. Increased domestic consumption has led to a reduction in export and total revenues. The domestic demand growth will continue, primarily driven by industrial customers.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Advance contracting. Advance contracting will be used for all consulting service packages, which comprise two separate packages for the Bunakha hydropower project and the Nyera Amari hydropower project. The various steps would include preparation of RFP and technical and financial evaluation of consulting firm for the overall review and update of the technical, environmental, and social aspects of the projects, followed by preparation of tender stage engineering and tender documents for the award of works (Civil, hydro-mechanical, and electromechanical, transmission) under a single performance-based contract of consulting services.
Procurement All advance contracting and retroactive financing will follow the ADB Procurement Policy (2017, as amended from time to time) and the ADB Procurement Regulations (2017, as amended from time to time). The issuance of consulting service recruitment notices or invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. ADB has advised the DGPC that approval of advance contracting and retroactive financing does not commit ADB to finance the PRF project.
Responsible ADB Officer Ogino, Kaoru
Responsible ADB Department Sectors Group
Responsible ADB Division Energy Sector Office (SG-ENE)
Executing Agencies
Druk Green Power Corporation Limited
Timetable
Concept Clearance 31 Jul 2023
Fact Finding 10 Sep 2023 to 15 Sep 2023
MRM 09 Oct 2023
Approval 28 Nov 2023
Last Review Mission -
Last PDS Update 04 Dec 2023

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Safeguard Documents See also: Safeguards
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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

Tender Title Type Status Posting Date Deadline
Nyera Amari Integrated HPP Firm - Consulting Closed
Bunakha Hydropower Project Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.