BPC Transmission (IFC-48965)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bhutan
Geographic location where the impacts of the investment may be experienced.
Specific Location
Lungjong, Panbang, Zhemgang district; Phuentsholing, Mongar, S/Jongkhar, Gelephu, and Thimphu
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 15, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Bhutan Power Corporation Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 21, 2025

Disclosed by Bank Mar 6, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated on the project disclosure page, the IFC proposes to provide a corporate loan of US$20 million to Bhutan Power Corporation Limited (‘BPC’ or the ‘Company’) for the construction of a 132/33kV gas-insulated substation (GIS) at Lungjong in Panbang in Zhemgang district and the modernization of the distribution system (the ‘Project’).

The investment will be utilized for: (a) construction of 132/33kV GIS in Panbang and a 0.7 km Loop In Loop Out line to the existing 132kV Tingtibi - Nganglam transmission line, with an expected project cost of US$ 5.1 million; and (b) establishment of 4 regional Distribution Control Centers (DCCs) in Phuentsholing, Mongar, S/jongkhar and Gelephu, and upgradation of the central DCC in Thimphu and integration of all regional DCCs to the central DCC, with a total expected cost of US$16.8 million.

The regional DCCs will be established within existing operational assets of BPC (substations) and will not involve any new land acquisition or additional footprint. There is no involuntary land acquisition involved with the project. For the construction of the Panbang substation, 0.9 acres of private land was obtained from a single landowner through a willing buyer-willing seller approach. The landowner was provided substitute land with a similar landuse profile.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, Bhutan Power Corporation Limited is one of the two main power utilities in Bhutan, responsible for power transmission and distribution across Bhutan. BPC is wholly owned by Druk Holding and Investment Limited (DHI), an investment arm of the Royal Government of Bhutan (RGoB). BPC has been confirmed to be compliant with IFC State-owned Enterprises Directives. As of December 2024, BPC has total assets worth approx. US$553 million.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
Druk Holding and Investments Limited Parent Company Finance owns Bhutan Power Corporation Limited Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Bhutan Power Corporation Limited:

Mr. Ugyen Dorji - Manager, EGSS, CD, C&PD
Phone: +97517652616
Email: ugyendorji2013@bpc.bt
Address: Yarden Lam, Chubachu; Thimphu, Bhutan
Website: https://www.bpc.bt/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works