BPC Distribution Upgradation (IFC-51639)

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
Thimphu, Tenchekha
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
Oct 31, 2026
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 Ltd.
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)
$ 20.11 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.
Currency conversion note:
Bank reported 1900
Converted using 2026-09-07 exchange rate.
Loan Amount (USD)
$ 20.11 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.
Project Cost (USD)
$ 63.24 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.
Currency conversion note:
Bank reported 5970
Converted using 2026-09-07 exchange rate.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 12, 2026

Disclosed by Bank Sep 7, 2026

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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, IFC is considering providing an Indian Rupee (INR)-denominated A Loan of up to INR 1.9 billion (approximately US$20 million) from its own account and mobilizing parallel loans of up to INR 3.8 billion (approximately US$40 million) from parallel lenders to Bhutan Power Corporation Limited (BPC). The financing will support three components of BPC’s capital investment program:

(i) upgrading the Thimphu transmission system;
(ii) strengthening the Thimphu distribution network; and
(iii) integrating upcoming solar power generation capacity around Tenchekha.  

IFC has ongoing upstream engagements with BPC covering environmental, social and governance (ESG), FIDIC contract management, cybersecurity risk management, climate change risk management and corporate insurance framework development. IFC delivered foundational ESG and FIDIC contract-management training in 2024, followed by climate-risk and cybersecurity workshops in May 2026. An insurance advisory workshop, advanced environmental, social and governance and FIDIC training are also planned.

The Company and the Project are located in Bhutan. The transmission and distribution investments will be implemented in and around Thimphu, while the solar integration component will be developed in Tenchekha, near the Paro and Thimphu Districts’ Boundary.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the IFC, the total Project cost is estimated at approximately Bhutanese Ngultrum (“Nu.”) 5.97 billion (approx. US$63 million). IFC proposes to provide a senior A Loan of up to INR 1.9 billion (approx. US$20 million) from its own account and mobilize parallel loans of up to INR 3.8 billion (approx. US$40 million). The remaining (approx. US$3 million) is expected to be funded through BPC’s internal cash accruals. The proposed loans will have a tenor of 15 years and are expected to be structured as a sustainability-linked loan with pricing linked to agreed sustainability performance targets.

IFC A Loan will be utilized for: (a) upgradation of Thimphu transmission system, including upgradation of 220/66kV Semtokha Air Insulated Substation to Gas Insulated Substation, and (b) integration of upcoming solar power generation capacity including construction of 220/33kV Tenchekha Pooling Substation.

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, BPC is Bhutan’s state-owned transmission and distribution utility, responsible for developing, operating and maintaining the national grid, supplying electricity to domestic consumers and facilitating cross-border electricity trade. BPC is wholly owned by Druk Holding and Investments, the commercial arm of the Royal Government of Bhutan. As of December 2025, BPC had total assets of Nu. 57.6 billion (approximately US$606 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.

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
Email: https://www.bpc.bt

General IFC Inquiries - IFC Communications:

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

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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