United Nations

The project is the first hydropower project in the Kingdom financed through a public-private partnership with participation from Bhutanese and international stakeholders. Bhutan’s state-owned utility, Druk Green Power Corporation Limited holds 59% equity, India’s leading energy company, Tata Power Company holds 26% and the National Pension and Provident Fund of Bhutan holds 15% equity.

The Asian Development Bank, Raiffeisen Zentralbank Österreich AG (RZB) of Austria and the National Pension & Provident Fund of Bhutan are co-financers of the project.

The project was registered as a CDM project on February 26, 2010. The project is estimated to generate 515GWh of electricity annually that will provide 500,000 certified emission reduction (CER) certificates for trading with a crediting period from 2014 to 2021 (renewable). This is the first cross-border CDM project.

Contribution of the project activity to sustainable development

Since most of the project structures are underground, there is not much social and environmental impact. All affected families have been compensated in line with government regulations. The project has contributed to the socio-economic development of the local community and sustainable development of the country. The local communities have benefited from financial, employment and work opportunities.

The compliance report from the World Dam Commission and the report on co-benefit for sustainable development carried out by Asian Development Bank can be viewed at: http://www.dagachhu.com/index.php/downloads/

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