Dagachhu Hydro Power Project

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In February 2009, the 114 MW run-of-the-river Dagachhu Hydro Power Project located in Dagana Dzongkhag district, reached financial closure. The project, a joint-venture between Bhutanese state-run Druk Green Power Corporation (74%) and Tata Power Co. (26%), India’s largest non-state electricity generator, was to be commissioned in 2012. The plant was to sell power to Tata Power Company under a 25-year power purchase agreement (PPA) agreed in 2008. The project represented the first case of private participation in Bhutan's infrastructure outside the telecommunications sector. The equipment supply contract was competitively awarded to a consortium led by Alstom (France) which included Andritz Hydro, at a value of 55 million euro (US$80 million). The Dagachhu Hydro Power Project reached financial closure in February 2009. The total project cost was estimated at US$201.47 million, comprising debt of US$121.47 million (60%) and equity of $80 million (40%). 74% of the equity was provided by the Bhutan government (US$59 million) and 26% by Tata Power Company [India] (US$21 million). ADB's Asian Development Fund made a 32-year loan to state-owned Druk Green Power Corporation to cover US$29 million of the government's US$59 million equity contribution. On the debt side, the creditors were ADB (US$51 million), the Austrian Export Credit Agency (US$55.46 million) and the National Pension and Provident Fund of Bhutan (US$15 million). The project also applied for UNFCCC CDM financing. https://cdm.unfccc.int/Projects/DB/DNV-CUK1247228633.76/view