The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the government of Thimphu, the capital of the Kingdom of Bhutan, on February 25 for the “Hydroelectric Power Plant Construction Project”. The outline of the project is as follows.
Signing Ceremony
Project Summary
Hydroelectric power plant construction project
Hydro Power Plants Construction Project
Country (region covered)
Kingdom of Bhutan (Samdhupjongkhar and Samtse Districts)
Business Objectives
This project aims to contribute to the sustainable socio-economic development of Bhutan and the decarbonization of the South Asian region by constructing the Jomori Hydroelectric Power Plant (1 unit, 90MW), Drukbindu Hydroelectric Power Plant (2 units, 18MW and 8MW) and associated transmission lines in Samdupjongkhar and Samtse Districts, Bhutan, to meet increasing electricity demand stably and to promote export of surplus electricity to neighboring countries during rainy seasons. This project will contribute to the sustainable socio-economic development of the country and the decarbonization of the South Asian region.
Business
JICA will provide loans for (a), (d), and (f) below. The recipient is responsible for (a), (c), and (e).
(a) Civil works for one regulating reservoir hydropower plant (Jomori hydropower plant, 90MW) and two flow-in hydropower plants (Drukbindu hydropower plant, 18MW and 8MW)
(b) Electrical machinery in the maintenance of equipment at the above power plants.
(c) Hydromechanical and control and protection-related equipment in the maintenance of the above-mentioned power plant equipment
(d) Transmission line development (132kV, approx. 66km and 66kV, approx. 14km), etc.
(e) Consulting services (1) (basic and detailed design for (a) above, basic design and bidding assistance for (b) and (c) above, construction supervision support for (a) and (c) above, and environmental and social considerations for (a), (b) and (c) above)
(f) Consulting services (2) (construction supervision support for (a) and (d) above, human resource development for operation and maintenance, and environmental and social considerations for (d) above)
Loan amount (maximum)
13,688 million yen
Interest Rates
Body: 2.05% Consulting and services: 0.55
Redemption period
25 years (including 7 years of deferment)
Procurement Conditions
General Untied (Preferred Condition)
Implementing Agency
Bhutan National Power Generation Company, Bhutan Hydro Power Corporation, Bhutan Electricity Corporation
Contribution to the achievement of the SDGs
Goal 7 (Energy for All and Clean)
Goal 8 (both job satisfaction and economic growth)
Goal 9 (Create a foundation for industry and technological innovation)
Goal 13 (take concrete action on climate change)
Schedule for future project implementation (tentative)
(1) Scheduled completion of the project: May 2029 (the project will be completed at the time of the start of service)
- expected date of sending invitation letter for consulting services (construction management support, etc.): March 2025
-
public announcement of bids for the first package of international competitive bids for the main body of work:
Name of procurement package: Electrical equipment package
Scheduled date: May 2025
© Source JICA
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