Japan Grants Concessional Loan to Boost Bhutan’s Hydropower Development
2 March 2025
A landmark Official Development Assistance (ODA) loan agreement was signed between the Ministry of Finance of Bhutan and the Japan International Cooperation Agency (JICA) on 2 March 2025 to fund the construction of three small hydropower plants, amounting to over 13.6 billion Japanese Yen (approximately $94 million or Nu 7.8 billion), to be completed by May 2029. These new hydropower plants will help Bhutan meet its rising domestic power demand and increase electricity exports during the monsoon season, supporting the nation’s socio-economic development and decarbonization goals in the South Asia region.
The ODA will be used to procure equipment and services for the 90-megawatt Jomori Hydropower Plant in Samdrup Jongkhar, the 26-megawatt Druk Bindu I and II plants in Samtse, and installation of associated transmission lines. It is Japan’s first direct support for hydropower development in Bhutan.
The project will be executed by Druk Green Power Corporation, Druk Hydro Energy Limited, and Bhutan Power Corporation, following the formal exchange of notes between the Royal Bhutanese Embassy and the Embassy of Japan in New Delhi.
Related links
Japan grants largest ever loan to Bhutan for hydropower development
