Dagachhu Hydro Power Corporation

Dagachhu Hydro Power Corporation Limited was incorporated as a subsidiary company of Druk Green in May 2008. The 126 (2x63) MW Dagachhu Hydroelectric Project is located at Dagana in the south-western part of Bhutan. The run-of-the-river project is designed for an estimated mean annual generation of 515 GWh and in a 90% dependable year to generate 360 GWh.

The Dagachhu project is the first Public-Private Partnership venture in the hydropower sector. Druk Green is a majority equity partner with a 59% stake. Tata Power Company holds a 26% shareholding as a strategic partner while the NPPF of Bhutan has the balance 15% stake in the project. The Dagachhu project is the first major project to be managed entirely by a Bhutanese management team.

The project is funded in a 60:40 debt equity ratio with the Asian Development Bank providing a loan of USD 51 million for the civil works; RZB, Austria providing a loan of Euro 41.23 million for the electro-mechanical works; and NPPF providing a loan of Nu. 600 million. ADB also provided a loan of USD 39 million through the RGOB to meet the financing gap of the project. The cost of the project on completion was Nu. 12,227 million.

Besides the royalty energy, all the power from the project shall be evacuated to India through a long term Power Purchase Agreement with Tata Power Trading Company Limited, India.

The Dagachhu project is the first major hydropower project being promoted under the Clean Development Mechanism in Bhutan and first cross border CDM project in the world. Except for the royalty energy allocated to the RGOB, the balance generated energy from the project is to be evacuated to India through a long-term power purchase agreement that has been entered into with the Tata Power Trading Company. The project was successfully commissioned in March 2015.



Dagapela, Dagana: Bhutan

Tel: +975 6 460830