Dorjilung Hydroelectric Power Project

pipeline

The Project is a peaking, run-of-river hydropower plant on the Kurichhu river in Mongar Dzongkhag (district) in the Eastern part of Bhutan. DHPP has a planned design capacity of 1,125 MW, expected annual energy generation of 4,500 GWh, and 12.6 million cubic meters (MCM) of live storage, enabling peaking operation of up to eight hours. Power will be transmitted through a 35 km long, 400-kilovolt (kV) transmission line from Dorjilung to the pooling station at Durungri. This line is considered an associated facility to the Project and will be developed and built by BPC as its own asset (with potential financing from the Japanese International Cooperation Agency – JICA) in about two years. BPC has extensive experience of developing and maintaining similar transmission lines over last several decades. From Durungri, the export-oriented power will flow to India via Bhutan’s national transmission grid which has sufficient spare capacity. The total cost (including estimated financing costs) of DHPP is estimated at US$1.7 billion. The financing will support the following Project components:Component A. Preparatory Works – US$100 million:(a) Preparatory works (approximately US$ [93] million): This comprises construction and strengthening of access roads and bridges, offices, on-site housing, preparation of civil contractor infrastructure, and construction of diversion and access tunnels (adits) and infrastructure for construction power. The preparatory work builds long term climate resilience by allowing for increased operational efficiency of the hydropower system and reduced risks of damage or failure during climate hazard events.(b) CLD-tailored investments (approximately US$ [7] million): This comprises the development and implementation of a community and local development plan (CLDP) in Mongar and Lhuentse districts. The investments under the CLDP may include activities to support skilling and tailored training, enterprise development support, and seed finance for nano- and micro-enterprises, and community-prioritized last-mile infrastructure and services prioritized by communities in these two districts, all with the aim to ensure rural communities, including women and vulnerable groups, gain sustainable benefits from the Project. A CLDP will include an operational manual – specifying eligibility criteria (both the type of beneficiaries and the types of activities to be supported), exclusion list, screening mechanism, target-setting for vulnerable groups, implementation arrangements, fund flow, and monitoring and reporting requirements -- to guide the implementation of the CLDP. Component B. Dam, Powerhouse, and Electromechanical Works – US$1,600 million:(a) Construction of Main Hydraulic Structures – Civil and Hydromechanical Works (US$1,300 million): This comprises civil works for the construction of the headworks structures (a 139.5-m high and 241-m long Roller-Compacted Concrete (RCC) dam), the 15 km long headrace tunnel, and the underground powerhouse complex, and installation of hydromechanical equipment for the headworks, powerhouse, and tailrace. A portion of the budget dedicated to this component will also be allocated towards the financing costs.(b) Power Generation Facility – Electrical and Electromechanical Works (US$300 million): This comprises the design, supply, and installation of underground powerhouse equipment (turbines, generators, and control equipment), underground switchyard equipment, a centralized control system, general electrical equipment, control equipment for the headworks, and electrical and mechanical auxiliary equipment and systems. The power plant will have six units of 187.5 MW each. To ensure smooth implementation of these components, dedicated resources would be allocated to project management and monitoring activities (these activities’ cost is already accounted for under Component B).