BPC Transmission

pending

 IFC proposes to provide a corporate loan of US$20 million to Bhutan Power Corporation Limited (‘BPC’ or the ‘Company’) for the construction of a 132/33kV gas-insulated substation (GIS) at Lungjong in Panbang in Zhemgang district and the modernization of the distribution system (the ‘Project’). BPC is a state-owned company in Bhutan, responsible for the transmission and distribution of electricity across the country. It is wholly owned by Druk Holding and Investments Limited (‘DHI’), the investment arm of the Royal Government of Bhutan, which operates on commercial principles. The investment will be utilized for: (a) construction of 132/33kV GIS in Panbang and a 0.7 km Loop In Loop Out line to the existing 132kV Tingtibi - Nganglam transmission line, with an expected project cost of US$ 5.1 million; and (b) establishment of 4 regional Distribution Control Centers (DCCs) in Phuentsholing, Mongar, S/jongkhar and Gelephu, and upgradation of the central DCC in Thimphu and integration of all regional DCCs to the central DCC, with a total expected cost of US$16.8 million. The regional DCCs will be established within existing operational assets of BPC (substations) and will not involve any new land acquisition or additional footprint.There is no involuntary land acquisition involved with the project. For the construction of the Panbang substation, 0.9 acres of private land was obtained from a single landowner through a willing buyer-willing seller approach. The landowner was provided substitute land with a similar landuse profile.