ADB to provide US$ 106-mn for projects

Thimphu: The Asian Development Bank (ADB) will be providing over US$ 106 million for the Dagachhu Hydropower and Rural Electrification projects under the Green Power Development Project.

The Finance Minister Lyonpo Wangdi Norbu and the Director General of South Asia Department of the Asian Development Bank, Kunio Senga signed the agreement.

Under the agreement, the Asian Development Bank will provide US$ 80 million as loan for the 114 MW Dagachhu Hydropower Project. ADB will also provide over US$ 26 million as grant assistance for the Rural Electrification Project.

The total cost for the Dagachhu Hydropower Project is estimated at over US$ 200 million. The Finance Secretary Lam Dorji said the Austrian Export Credit Agency, Tata Power of India, Druk Green Power Corporation, National Pension and Provident Fund, and the government will finance the remaining money.

The Rural Electrification Project is estimated to cost over US$ 32 million. The Finance Secretary said the government will bear the rest of the cost.

The Director General of the South Asia Department of the Asian Development Bank Kunio Senga described the agreement as historic.

“For the first time ADB’s intervention in one project is more than US$ 100 million. Normally the size of our assistance is about US$ 20-30 million. For the first time we have extended a large sum of money,” said Kunio Senga.

Started in 1983, the Asian Development Bank has provided about US$ 300 million as assistance to Bhutan, financing about 30 projects.