| Project Detail |
The proposed multitranche financing facility will support the development of run-of-river hydropower plant and transmission system facilities in the eastern region of Bhutan. The power generated from the plant can be supplied through the eastern grid network system for dual purposes of export and domestic consumption. Project Rationale and Linkage to Country/Regional Strategy The proposed investment program is to support development of the Nyera Amari run-of-river hydropower plant and a transmission system in the eastern region of Bhutan. This focus will make a geographical balance in development support from the Asian Development Bank (ADB), following the Dagachhu hydropower plant in the western region, and the Nikachhu hydropower plant in the central region. While the eastern region has the highest population among the regions, it has been less developed in overall infrastructure, and is more likely to be poor than other regions. The government of Bhutan aims for balanced regional development, which is to ensure that inclusive development is equitably spread across the country. The government regards its continued hydropower development as the country s economic key driver that will help maximize local, national, and regional development impacts. Hydropower generation contributes to one-fifth of the country s gross domestic product. Out of Bhutan s installed generation capacity (1,614 MW), about 75% is exported to India after meeting domestic electricity demand. The hydropower exports account for one-third of government revenue; they are primary source for government spending on socioeconomic development for social services such as health, education, and rural development. Hydropower development forms the foundation of the economy and social system in Bhutan. |
