The World Bank has reiterated its strong commitment to support Bhutan’s comprehensive development agenda. During a recent visit to this South Asian nation, high-ranking officials associated with the World Bank stated their strong commitment to assisting this landlocked kingdom to achieve its economic and environmental goals while sustaining its distinct cultural identity.
The Dorjilung Hydropower project is a transformational opportunity
The World Bank Vice President responsible for South Asia, Johannes Zutt, inspected the site of the 1,125 MW Dorjilung Hydroelectric Power project located in Eastern Bhutan, which reflects the World Bank’s commitment to financing the biggest Hydropower project in Bhutan. The project is a game-changer because it entails collaborative funding to provide clean energy, generate jobs, and increase the resilience of Bhutan’s finances via export markets.
The Dorjilung project is being implemented within a Public-Private Partnership arrangement and is very strategic to the vision for improving energy security while promoting economic growth. The World Bank Group has necessarily leveraged resources across its two lending institutions, IDA, IBRD, and IFC, to finance this strategic infrastructure project that is likely to redefine the economy of Bhutan.
The main advantages of the Dorjilung Hydropower project are:
- Improved energy security to meet both domestic needs and export markets
- Employment opportunities during both the construction and operational stages
- Enhanced budgetary flexibility due to higher export earnings
- Contribution to Regional South Asian Power Markets by Clean Energy
World Bank expands support across multiple development sectors
The Vice President of South Asia at The World Bank, Johannes Zutt, visited a location earmarked for what will be 1,125 MW Dorjilung Hydroelectric Power Project in one of the Eastern regions of Bhutan, signaling The World Bank’s involvement with what is currently the biggest hydropower project being executed within this country that requires funding to generate clean energy and boost the economy due to energy exports to neighboring markets.
The Djorjilung project is being implemented with a Public-Private Partnership arrangement and is one of the most vital initiatives launched by Bhutan to increase energy security while promoting economic growth. World Bank Group resources have been leveraged across its constituent units, IDA, IBRD, and IFC, to finance this paradigmatic infrastructure project to change the landscape of the economy of Bhutan.
The project will invest in high-value chains such as dairy, citrus, potato, and forest-based value chains that are still at an emerging stage, while assisting farmers to adopt climate-resilient approaches and access better post-harvest technology. The project is projected to reduce 221,087 tons of CO₂ equivalent within a period of over 20 years while contributing to both economic and sustainability objectives that are aligned with making Bhutan carbon neutral.
Strategic partnership cements long-term development commitment
During this visit, he held meetings with His Majesty The King, His Majesty The Fourth King, Prime Minister Tshering Tobgay, and the Finance Minister Lekey Dorji. These important meetings reiterated the support that the World Bank Group offers to the goals pertaining to economic and development aspirations while taking into account the special commitment to sustainable development that this country has.
The World Bank has been partnering with Bhutan since 1981, with a very strong partnership that mirrors its engagement in inclusive and climate-resilient development. The commitment to sustainability can serve to show other nations, says Zutt, that it is possible to build economic growth while remaining stewards of nature and culture.
The comprehensive assistance being provided by the World Bank to the nation of Bhutan showcases how global financing entities can successfully work hand-in-hand with developing nations to accomplish change-driven development goals. As a result of such change-driven investments by the World Bank into hydropower infrastructure and the natural resources value chain, the nation is on course to make its economy more resilient while remaining committed to sustainability and its special development philosophy.