The Bhutanese Leading the way.
The Prime Minister this week graced the signing ceremony of the Shareholders’ Agreement between Druk Green Power Corporation Limited (DGPC) and JSW Neo Energy Limited for the joint development of the 920 MW Punatsangchhu-III Hydroelectric Project, marking another important milestone in Bhutan’s growing energy partnership with the Indian private sector.
The Shareholders’ Agreement was signed by Dasho Chhewang Rinzin, Managing Director of DGPC, on behalf of Druk Green Power Corporation Limited, and Mr. Sharad Mahendra, Joint Managing Director & CEO of JSW Energy, on behalf of JSW Neo Energy Limited.
The partnership is expected to contribute towards harnessing Bhutan’s vast renewable energy potential, strengthening energy security, and advancing sustainable economic growth for the mutual benefit of Bhutan and India.
The Investment-cum-Shareholders’ Agreement is the definitive agreement entered into between the two promoters, DGPC and JSW, for the joint development of the 920 MW Punatshangchhu-III Hydropower Project. The Agreement sets out the ownership and governance structure, the promoters’ funding contributions, their respective roles and responsibilities, the terms governing the sale and transfer of shares, and the applicable governing law and dispute resolution mechanisms.
The project construction aims to start in late 2027.
The total project cost at the prefeasibility study stage is estimated to be Nu 78 billion. The project cost will be further firmed up during the DPR study, which is currently ongoing.
Punatsangchhu III is located downstream of the Punatsangchhu II HPP. The dam complex is located near Harachhu and the powerhouse is located approximately 2 km downstream of Relangthang.
The total project development timeline is envisaged at approximately six years. The project is planned to be commissioned by 2032-2033.
DGPC plans to meet its equity contribution requirements primarily through its operational cash flows. Loan will be raised through a non-recourse project financing arrangement with the support of strategic partner, JSW.
The Project is planned with an installed capacity of 920 MW (4×230 MW) and is estimated to generate about 3,400 million units of energy annually. The winter generation will be around 20 to 25% of total generation.
