Infrastructure & PPPs in Bangladesh, Nepal, Sri Lanka and Bhutan - Q4 2025 Update

YOG INFRA
3 days ago
18 min read

Bangladesh, Nepal, Bhutan and Sri Lanka are advancing large-scale clean energy projects, modernizing trade and transport infrastructure, and deepening cross-border connectivity to support long-term economic growth and energy security. BANGLADESH is accelerating solar, logistics, and low-carbon infrastructure through PPPs and multilateral finance, strengthening energy security and trade efficiency. NEPAL is boosting regional integration with cross-border power, petroleum, and rail projects, while advancing climate-resilient and urban infrastructure with donor support. BHUTAN is diversifying beyond hydropower via PPP-led renewables, cross-border rail connectivity, and innovative financing aligned with its Gelephu Mindfulness City vision. SRI LANKA is reforming its power sector and expanding renewables through multilateral funding, grid upgrades, and stronger PPP frameworks to support recovery and energy security.

Read more about key developments in Infrastructure and PPPs in the four countries in our Q4 2025 insight.

BANGLADESH

BANGLADESH ISSUED TENDERS FOR 72.5 MW ROOFTOP SOLAR PROJECTS UNDER NATIONAL PROGRAM

The Bangladesh Power Development Board (BPDB) announced tenders for the installation of 17 rooftop solar systems totaling 72.5 MW in capacity. The projects will be implemented under a third-party OPEX model, where private developers will build, own, and operate the systems, selling the generated electricity to the BPDB.

This initiative forms part of the National Rooftop Solar Program, which targets 3,000 MW of rooftop solar capacity across state-owned buildings, including schools, hospitals, and rail stations. The program aligns with Bangladesh’s Renewable Energy Policy, aiming to meet 20% of national electricity demand from renewables by 2030 and 30% by 2040.

BANGLADESH AND APM TERMINALS SIGNED LANDMARK USD 550 MN INVESTMENT AGREEMENT

Bangladesh took a major step toward strengthening its maritime and trade infrastructure with the signing of a concession agreement for the development of the Laldia Container Terminal in Chattogram. The project represents an investment exceeding USD 550 Mn, making it one of the largest Public Private Partnership (PPP) investments in the country’s history.

The agreement was signed between the Chittagong Port Authority (CPA) and APM Terminals – part of A.P. Moller-Maersk – together with local partner QNS Container Services Ltd. The concession agreement will allow APM Terminals to operate the terminal for a period of 30 years, which can be extended based on KPIs (key performance indicators). The Laldia Container Terminal will be fully designed, financed, built and operated by the investors – a first-of-its-kind model for Bangladesh’s port infrastructure.

Once operational in 2030, the terminal will expand Bangladesh’s annual port handling capacity by over 800,000 TEUs (twenty-feet equivalent units), improving the country’s global trade efficiency and connectivity – helping the key engines of Bangladesh’s export economy such as textiles, apparel and manufacturing reach their import markets around the world.

GOVERNMENT APPROVED USD 57 MN E-WASTE PLANT AT KALIAKOIR HI-TECH PARK

The government approved a USD 57 Mn project to establish a modern e-waste management plant at Kaliakoir Hi-Tech Park in Gazipur, aiming to address rising environmental and health concerns linked to the country’s growing electronic waste. The project will be implemented by the Bangladesh Hi-Tech Park Authority under the ICT Division through a Public-Private Partnership (PPP) model.

The PPP approach aims to enhance national capacity for e-waste processing while reducing pressure on the government's revenue budget for the high-cost infrastructure. The project involves the design, installation, and operation of high-technology e-waste processing facilities with an annual processing capacity of 200,000 to 300,000 tonnes. The proposal sets a target of commissioning the plant by 2028 and anticipates significant employment generation as well as foreign investment opportunities.

MSC GROUP TO BOOST TRADE CONNECTIVITY FOR BANGLADESH WITH INLAND TERMINAL INVESTMENT

MEDLOG, the global logistics operator and part of the MSC Group of companies, signed an important concession agreement to operate the Pangaon Inland Container Terminal (PICT). This strategic project will enhance inland supply chain connectivity, ease cargo flows, and support both the communities and broader industrial growth of Bangladesh. The PICT near the capital Dhaka is strategically located on the Buriganga River, and close to the high-speed Dhaka-Mawa-Bhanga Expressway. The terminal will help build trade resilience and efficiency by shifting the country's cargo movement from congested roads to low emission inland waterways.

Under the new concession, MEDLOG will oversee operations, supply and automation at PICT, bringing global expertise and advanced technology to optimize inland logistics. MEDLOG will also expand terminal facilities to support growing trade volumes to offer an annual handling capacity of 160,000 TEUs. In addition, to strengthen multimodal connectivity, MEDLOG will charter inland barges from PICT to connect Pangaon with other river terminals and seaports.

AIIB AND NDB SUPPORT SUSTAINABLE INFRASTRUCTURE IN BANGLADESH WITH USD 75 MN LOAN TO CITY BANK PLC

The Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) will lend a combined USD 75 Mn to City Bank PLC (CBL), a leading private commercial bank in Bangladesh, to boost sustainable infrastructure investments in the country. Initiated and structured by AIIB, which is lending USD 50 Mn, alongside NDB’s parallel USD25 Mn, the financing will enable CBL to tackle critical infrastructure development challenges.

It is expected to catalyze sustainable investments across renewable energy, energy efficiency, e-mobility and digital infrastructure, while providing longer-tenor funding – an essential catalyst for large-scale and resilient infrastructure development to bridge the country’s infrastructure financing gap. The financing package will provide mid- to long-term funding for private-sector projects, with a focus on renewable energy, energy efficiency, e-mobility and digital infrastructure.

GOVERNMENT AND UNDP COLLABORATE TO ADVANCE LOW-CARBON URBAN DEVELOPMENT

The Government of Bangladesh, in partnership with the United Nations Development Programme (UNDP), launched a new project, to promote low-carbon urban development in Dhaka, Chattogram, and other major cities. Funded by the Global Environment Facility (GEF), the initiative aims to reduce greenhouse gas emissions and foster sustainable urban growth through greater investment in energy efficiency, renewable energy, and waste-to-energy solutions.

The five-year initiative titled “Promoting Energy-Related Low Carbon Urban Development (LCUD) in Bangladesh” will be executed by the Sustainable and Renewable Energy Development Authority (SREDA) under the Ministry of Power, Energy and Mineral Resources (MoPEMR). Through strategic collaboration and innovative solutions, the LCUD project is expected to create a replicable model for climate-resilient and energy-efficient cities, contributing to Bangladesh’s transition toward a greener and more sustainable future.

SOLARIC PARTNERS WITH HA-MEEM FOR BANGLADESH’S BIGGEST INDUSTRIAL ROOFTOP SOLAR PROJECT

Bangladesh is taking a major leap toward industrial sustainability with the signing of the 16.9 MWp Rooftop Solar Power Plant CapEx project at Ha-Meem Group’s Textile Zone. The project will cover the rooftops of Ha-Meem Denim Ltd., Ha-Meem Spinning Ltd., and Ha-Meem Textile Ltd., marking the largest solar initiative for denim and spinning operations in the country. Solaric Group will serve as the EPC partner for this landmark initiative, while financing is provided by IDCOL, reflecting Bangladesh’s strategic push for clean energy infrastructure and industrial decarbonization. Their collaboration underscores how innovation and strategic vision are shaping Bangladesh’s sustainable industrial future.

Key highlights of the project include:

40% green energy supply for denim and spinning operations
70% reduction in energy costs
Largest rooftop solar project for denim and spinning in Bangladesh

BANGLADESH OPENED TESTING LAB TO CERTIFY SOLAR MODULE QUALITY

Bangladesh inaugurated a testing laboratory to ensure quality and establish standards for both domestically produced and imported solar panels. The facility has been set up at the headquarters of the BSTI in Dhaka, equipped with German technology. The laboratory features a high-precision standard sun simulator capable of testing solar panels up to 2,700 mm × 1,600 mm and measuring module performance efficiency. Bangladesh established 17 standards for solar modules, prepared by the Sustainable and Renewable Energy Development Authority (SREDA).

Two other solar module testing laboratories currently operate in the country – one at the Bangladesh University of Engineering and Technology (BUET) and another at United International University (UIU) in Dhaka. In the past, BSTI relied on these external facilities for certification, but the new laboratory allows it to conduct tests independently and strengthen quality control.

This laboratory will play an important role in importing high-quality solar panels and raising the quality of domestically produced panels to global standards. By establishing the solar panel testing laboratory, BSTI will be able to maintain international standards in solar power generation, which will also ensure consumer safety. The facility will help ensure module quality and prevent substandard imports.

GOODWE ANNOUNCED STRATEGIC PARTNERSHIP WITH ACI MOTORS AT THE OFFICIAL LAUNCH EVENT IN BANGLADESH

GoodWe, a leading global manufacturer of photovoltaic (PV) inverters and energy storage solutions, announced a strategic partnership with ACI Motors, a prominent name in Bangladesh’s energy and machinery sector. The partnership between GoodWe and ACI Motors will focus on expanding access to high-efficiency solar inverter solutions and smart energy technologies across Bangladesh. By combining GoodWe’s world-class PV expertise with ACI Motors’ strong local distribution network and market knowledge, the two companies aim to accelerate the adoption of solar energy for residential, commercial, and industrial applications.

Bangladesh has tremendous potential for solar energy growth, and this partnership reinforces dedication to empowering the nation with reliable, efficient, and sustainable PV solutions. With ACI Motors’ extensive reach, this collaboration will make clean energy more accessible to communities and businesses across the country. GoodWe’s latest range of PV inverters and energy storage systems, highlights their adaptability to Bangladesh’s unique market needs and climatic conditions.

BANGLADESH APPROVED 220 MW SOLAR PROJECT, ITS LARGEST TO DATE

The Government of Bangladesh officially approved a significant 220 MW solar power project in Sonagazi, Feni. This move marks a major step in expanding the country’s renewable energy capacity and underscores a commitment to a sustainable energy transition. The project, approved by the Executive Committee of the National Economic Council (ECNEC), is set to become a cornerstone of the nation’s green energy strategy.

The project will be developed as a joint venture between the Bangladesh Power Development Board (BPDB) and private sector partners. With an estimated cost of Tk 1,888.10 Cr (approximately USD 154 Mn), it represents a substantial investment in solar infrastructure. The Islamic Development Bank (IsDB) will provide USD 143.28 Mn in loan financing. The remaining funds will be covered by the government and the Electricity Generation Company of Bangladesh (EGCB), which will develop the project on approximately 634 acres.

The new plant will be located next to EGCB’s existing 75 MW solar facility, which has been supplying electricity to the grid since March last year. Because the transmission interconnection infrastructure was already built for the 75 MW plant, the new 220 MW array is expected to use the same evacuation facilities, eliminating the need for separate transmission construction. The Sonagazi project is a critical component of the nation’s goal to achieve 40% renewable energy by 2041. It will significantly expand the supply of clean energy to the national grid, helping to meet rising electricity demand while reducing dependence on volatile and costly fossil fuel imports, such as coal.

NEPAL

INDIA, NEPAL SIGNED AGREEMENTS TO BOOST POWER COOPERATION AND CROSS-BORDER TRANSMISSION

India and Nepal signed two major agreements to boost power cooperation and develop new cross-border transmission lines for enhanced regional energy trade and connectivity. The agreements have been signed between India’s POWERGRID and the Nepal Electricity Authority. Both agreements cover the development of the Inaruwa in Nepal to New Purnea in India 400 KV and Lamki, Dododhara in Nepal to Bareilly in India 400 KV transmission systems.

Both the agreements focus on the incorporation of two joint venture entities one in India and another in Nepal, to develop these high-capacity power transmission corridors. Once the project is completed, it is expected to substantially enhance electricity trade between the two nations, strengthen grid resilience, and promote sustainable growth across the region.

INDIA, NEPAL SIGNED B2B FRAMEWORK AGREEMENT TO DEVELOP PETROLEUM INFRASTRUCTURE

Nepal and India reached the B2B Framework Agreement regarding the development of petroleum infrastructure in Nepal under the India-Nepal energy partnership. By Implementation of these projects, transportation of petroleum products will be convenient from India to land-linked Nepal, which will significantly reduce costs for Nepal Oil Corporation by minimizing reliance on tank trucks. The infrastructure will mitigate handling losses & environmental risks, prevent road congestion resulting during tank truck movement and support Nepal’s energy security during natural disasters such as floods and landslides.

As per the B2B Framework Agreement, a 50-kilometre petroleum pipeline from Siliguri of India to Charali of Jhapa will be built. Similarly, a Smart Greenfield Terminal will be constructed at Charali. The government of India will provide a grant for the implementation of a project to build a 62-kilometre petroleum pipeline from Amlekhgunj to Lothar of Chitwan. Likewise, at Lothar, a Smart Greenfield Terminal with 91,900 kiloliters capacity will be built by the NOC with the technical assistance of the Indian government. The total cost of these projects is worth USD 181 Mn.

ADB, IDA, AND SWITZERLAND PARTNER TO STRENGTHEN NEPAL’S DISASTER RISK MANAGEMENT AND BUILD CLIMATE-RESILIENT INFRASTRUCTURE

The Asian Development Bank (ADB), the World Bank Group’s International Development Association (IDA), and the Swiss Agency for Development and Cooperation (SDC) signed a three-year Memorandum of Understanding (MoU) reaffirming their shared commitment to support the Government of Nepal in strengthening disaster risk reduction and management and building climate-resilient infrastructure.

Nepal faces increasing threats from climate-induced hazards such as floods, droughts, landslides, and glacier melt, which continue to cause severe human and economic losses and displace communities. Nature-dependent sectors, including hydropower—vital to the country’s economic growth—are particularly vulnerable to these impacts. Through this partnership, ADB, IDA, and SDC reaffirm their shared commitment to supporting Nepal’s sustainable and resilient development by improving coordination, avoiding duplication, and leveraging their collective expertise and resources for greater impact.

INDIA, NEPAL INKED PACT TO BOOST RAIL FREIGHT CONNECTIVITY VIA JOGBANI-BIRATNAGAR LINK

India and Nepal interchanged a Letter of Exchange (LoE) to amend the Protocol to the Treaty of Transit between the two nations and widen rail freight services along the Jogbani-Biratnagar link. The LoE enables direct rail connectivity along the Jogbani-Biratnagar rail link for both containerized and bulk cargo, facilitating transport from the ports of Kolkata and Visakhapatnam to the Nepal Customs Yard cargo station located in Morang District, near Biratnagar in Nepal.

This liberalization extends to key transit corridors - Kolkata-Jogbani, Kolkata-Nautanwa, and Visakhapatnam-Nautanwa – strengthening multimodal trade connectivity between the two countries and Nepal's trade with third countries. Both countries stated that the deal will bolster bilateral trade, strengthen transit logistics, and support broader economic integration. India currently remains Nepal's largest trade and investment partner.

NEPAL, JAPAN SIGNED MOU FOR USD 350 MN LOAN

The Government of Nepal and the Government of Japan signed a loan agreement for the Koteshwor Chowk Improvement Project. Japan had provided loan assistance of JPY 34.59 Bn (USD 350 Mn) for the project. The loan will have a grace period of 10 years, a repayment period of 30 years and an interest rate of 0.2% annually. Under this project, underpasses and flyovers will be constructed in Koteshwor and Jadibuti sections.

It is expected to contribute significantly to ease the movement of vehicles on the highway and reduce traffic congestion. The project will be implemented through the Department of Roads under the Ministry of Physical Infrastructure and Transport. The project initiated with the objective of improving the important traffic congested areas of Kathmandu Valley under Nepal-Japan cooperation will bring a long-term change in the transportation management of Kathmandu Valley.

SRI LANKA

SRI LANKA SECURED USD 52 MN LOAN FOR POWER TRANSMISSION PROJECT

The Asian Infrastructure Investment Bank (AIIB) approved a USD 52 Mn sovereign-backed loan to support Sri Lanka’s efforts to strengthen its power infrastructure and advance renewable energy development through the Kerawalapitiya–Port L Second Transmission Line Project.

The project includes the design, supply, and construction of a 220kV single-circuit underground cable system linking the Kerawalapitiya Switching Station with the Colombo Port L Grid Substation. Enhancing grid stability and ensuring reliable electricity supply, the project will deliver lasting economic and social benefits for Sri Lanka, while reinforcing its path toward sustainable growth and resilience.

The project will help stabilize power supply across the Greater Colombo region, support the development of a new special economic zone, and improve reliability for businesses and households. It will also facilitate the integration of renewable energy from the northern and eastern regions into the national grid.

ASIAN DEVELOPMENT BANK APPROVED USD 100 MN FINANCE PACKAGE TO SUPPORT TRANSPARENCY IN SRI LANKA

The Asian Development Bank (ADB) approved a USD 100 Mn financing package to support public expenditure management, despite military occupation across the North-East. The program aims to support macroeconomic stability by strengthening public expenditure management, improving revenue mobilisation, and foster private sector participation. This latest funding follows USD 900 Mn in approved projects in 2025. The program aims to support macroeconomic stability and sustainable growth following the economic crisis by strengthening public expenditure management, improving revenue collection, and fostering private sector participation. This includes enhancing the management, transparency, and accountability of state-owned enterprises (SOEs), strengthening the legal and institutional framework for Public–Private Partnerships (PPPs), and improving the pipeline of climate-related projects, including those implemented through PPPs.

It will enhance revenue mobilisation by strengthening revenue generation through stronger domestic and international tax compliance, such as the development and implementation of a multiyear tax compliance improvement strategy and by further deepening international tax cooperation following Sri Lanka’s recent membership to the Global Forum on Transparency and Exchange of Information for Tax Purposes.

The program will support the government’s efforts to improve the enabling environment for private sector participation, including developing a legal framework for Public–Private Partnerships (PPP) that is aligned with international best practices and mobilising additional climate finance and private investment. It will also focus on strengthening the management, transparency, and accountability of state-owned enterprises (SOE).

SRI LANKA AND BANGLADESH STRENGTHEN TIES WITH FOCUS ON PORT CONNECTIVITY

Sri Lanka and Bangladesh agreed to advance cooperation in maritime connectivity, trade, and green tourism, reaffirming their commitment to deepen bilateral relations during the fourth round of Foreign Office Consultations (FOC). In the tourism sector, Sri Lanka proposed collaboration on green and sustainable tourism, aligning with its new national tourism development strategy. Bangladesh welcomed the proposal and suggested joint initiatives such as Tea and Buddhist tourism circuits, along with an early signing of an MoU on tourism cooperation.

The two countries also explored new avenues for mutual investment, with Sri Lanka inviting Bangladeshi investors to participate in infrastructure, logistics, and tourism projects. In return, Bangladesh encouraged Sri Lankan companies to invest in its export processing zones (EPZs), special economic zones (SEZs), and industrial parks — particularly in sectors like pharmaceuticals, ICT, renewable energy, and agro-processing.

Further cooperation was discussed in fisheries, agriculture, education, youth affairs, and health. Bangladesh invited Sri Lankan farmers for exchange visits and sought expertise in deep-sea fishing, while Sri Lanka offered additional training opportunities for Bangladeshi nurses. Dhaka also proposed setting up a Bangladesh–Sri Lanka Tech Corridor to foster collaboration in digital innovation. Reiterating their shared commitment to regional peace and prosperity, both countries pledged to enhance engagement through SAARC, BIMSTEC, and IORA frameworks. Bangladesh additionally sought Sri Lanka’s continued support for the safe and dignified repatriation of Rohingya refugees, underscoring a shared humanitarian approach to regional challenges.

CHARISMA ENERGY SERVICES SECURED 5 MW SOLAR POWER PURCHASE AGREEMENT WITH CEYLON ELECTRICITY BOARD IN SRI LANKA

Charisma Energy Services Limited announced that its subsidiary, Jericho Solar (Pvt) Ltd, entered into a 20-year Standardised Power Purchase Agreement (PPA) with the Ceylon Electricity Board in Sri Lanka for a 5 MW solar power plant. This agreement is part of the company’s strategy to expand its renewable energy portfolio, increasing its total capacity to 48.0 megawatts. The project is expected to be operational by the fourth quarter of 2026 and is not anticipated to significantly impact the company’s financials for the year ending December 2025.

Charisma Energy Services Limited, incorporated in Singapore, operates in the renewable energy sector. The company focuses on expanding its portfolio of renewable energy projects, aiming to generate returns for its shareholders. Its primary services include the development and management of solar power projects.

SRI LANKA RECEIVED USD 30 MN WORLD BANK LOAN FOR RENEWABLE ENERGY PROJECTS

The Government of Sri Lanka secured a USD 30 Mn loan from the International Development Association (IDA) of the World Bank Group to support the Secure, Affordable, and Sustainable Energy for Sri Lanka Project. The project aims to strengthen infrastructure to facilitate renewable energy integration, supporting the government’s goal of generating 70% of the country’s electricity from renewable sources by 2030.

The initiative will also include a World Bank payment guarantee facility to encourage private sector investment. Key objectives include scaling up renewable energy adoption, enhancing grid infrastructure for secure and affordable power, mobilizing private sector participation, and building institutional capacity for long-term sector reforms. The total project cost is estimated at USD 60 Mn, with USD 30 Mn funded under the first phase by the World Bank and the remaining USD 30 Mn expected under the second phase. The Ceylon Electricity Board will implement the project in coordination with the Ministry of Energy and other relevant agencies.

ADB APPROVED USD 100 MN LOAN TO STRENGTHEN SRI LANKA’S POWER SECTOR, ACCELERATE CEB UNBUNDLING AND RENEWABLE ENERGY GROWTH

The Asian Development Bank (ADB) approved a USD 100 Mn policy-based loan to support Sri Lanka in strengthening its power sector. This financing builds on previous initiatives aimed at creating a more stable and financially sustainable electricity system in the country. The loan forms part of the second phase of ADB's Power Sector Reforms and Financial Sustainability Program, which focuses on accelerating the unbundling of the Ceylon Electricity Board (CEB) into independent companies responsible for generation, transmission, system operation, and distribution.

To enhance financial sustainability, the program will support the implementation of cost-reflective tariffs and a comprehensive debt restructuring plan for the CEB. The new independent companies will receive guidance on the transparent allocation of existing debts, which will strengthen their financial viability, improve creditworthiness, and enable them to operate on a more sustainable footing. The program also focuses on promoting renewable energy development and private sector engagement. By enhancing transparency and supporting financially sustainable power sector entities, it will enable competitive procurement for large-scale renewable energy projects and other identified priority generation schemes. These initiatives will be carried out while upholding strong environmental standards.

BHUTAN

INDIA–BHUTAN ANNOUNCED FIRST CROSS-BORDER RAILWAY PROJECTS

In a transformative step for regional integration, India and Bhutan approved their first-ever cross-border railway links, aimed at strengthening economic and strategic cooperation. These two new rail lines—Kokrajhar–Gelephu and Banarhat–Samtse—represent a major advancement in bilateral connectivity, with significant potential to reshape trade, mobility, and diplomatic ties between the two Himalayan neighbours.

The Kokrajhar–Gelephu route, budgeted at USD 390.53 Mn, will link Assam’s Kokrajhar district with Bhutan’s Gelephu in the Sarpang region. This 70-kilometer line will include six stations and nearly 100 bridges, traversing the challenging terrain of India’s northeast. Gelephu, which Bhutan is developing into a Mindfulness City, will now gain vital access to Indian markets and ports.

The second line, Banarhat–Samtse, is a shorter connection stretching from West Bengal’s Banarhat in Jalpaiguri district to Bhutan’s Samtse. With an outlay of USD 65.20 Mn, this 20-kilometer route includes two stations and approximately 25 bridges and is strategically positioned to support Samtse’s growth as an industrial hub. Combined, both projects amount to USD 455.73 Mn, marking a significant infrastructure commitment by India to its closest Himalayan ally.

INDIA AND BHUTAN SIGNED MOU TO BOOST COOPERATION IN RENEWABLE ENERGY

The agreement signed between Bhutan’s Ministry of Energy and Natural Resources and India’s Ministry of New and Renewable Energy. Under the agreement, both countries will work together on developing solar, wind, biomass, and green hydrogen projects, along with energy storage technologies. The plan combines India’s technical knowledge with Bhutan’s natural energy potential to create clean and reliable energy projects. This step expands the partnership between the two countries beyond hydropower and helps both nations move toward cleaner energy and stronger energy security.

The agreement builds on a long history of energy cooperation between India and Bhutan, which has mainly focused on hydropower projects. With the recent opening of the 1,020 MW Punatsangchhu-II hydropower plant, Bhutan’s total power capacity increased by 40%. The new cooperation aims to bring similar success in other renewable energy areas and promote joint progress and development.

India also announced a line of credit of USD 444 Mn to support Bhutan’s energy projects. This financial help will be used to carry out renewable energy projects agreed upon under the new partnership. The agreement is expected to open the way for more joint research, training, and technology sharing between the two countries. It also aims to support stronger economic ties and regional cooperation through clean and sustainable energy projects.

TATA POWER, DRUK GREEN TO SET UP 1125 MW DORJILUNG HYDRO POWER PROJECT IN BHUTAN

The Tata Power Company Limited (Tata Power), one of India’s largest integrated power companies, signed Commercial Agreements with Druk Green Power Corporation Limited (DGPC) for the implementation of the 1,125 MW Dorjilung project. The Project will be implemented through a Special Purpose Vehicle (SPV), with DGPC and Tata Power holding equity shares of 60% and 40%, respectively.

The Run-of-the-River project, comprising six units of 187.5 MW each, is being developed on the Kurichhu River in Mongar, Bhutan. Designed with a six-hour pondage for peaking, Dorjilung represents a major step forward in expanding clean, reliable hydropower in the region. Tata Power committed an equity investment of approximately USD 174.49 Mn to be infused in tranches as per the agreed structure.

At a total project cost of USD 1.31 Bn, Dorjilung will be Bhutan’s second-largest hydropower project, and the largest Public–Private Partnership (PPP) hydro project ever undertaken in the country. On completion, the SPV will become an associate company of Tata Power, strengthening its strategic presence in the Himalayan renewable energy corridor. The project is slated for commissioning in September 2031, and 80% of its generation will be supplied to India, providing a significant boost to regional energy security and clean power availability. The project is supported by the World Bank, marking a milestone in cross-border clean-energy financing.

BHUTAN PLEDGES 10,000 BITCOIN WORTH USD 875 MN TO BUILD GELEPHU MINDFULNESS CITY

The Himalayan nation will dedicate 10,000 Bitcoin to develop the Gelephu Mindfulness City. This pledge marks one of the largest sovereign commitments of digital assets worldwide. The allocated Bitcoin holds a value of approximately USD 875 Mn at current market rates. Moreover, Bhutan has no plans to sell these digital assets anytime soon. The government will use prudent strategies to preserve and grow the Bitcoin’s value. These include risk-managed yield generation and long-term treasury management. The focus remains on capital preservation while supporting sustainable development.

The Gelephu Mindfulness City represents Bhutan’s ambitious economic transformation project. Located in southern Bhutan near the Indian border, GMC spans roughly 1,544 square miles. This covers approximately 10% of the entire kingdom’s territory. King Khesar launched this Special Administrative Region in 2024 with clear objectives. The project aims to create high-value local jobs for young Bhutanese citizens. Additionally, it seeks to prevent the exodus of youth seeking opportunities abroad. GMC targets diverse sectors including finance, tourism, green energy, and technology. Healthcare and agriculture also feature prominently in development plans. The city offers regulatory flexibility specifically designed for crypto and fintech companies.

BHUTAN TENDERED 120 MW SOLAR PROJECT

Druk Green Power Corporation Limited (DGPC) of Bhutan is seeking turnkey installation and commissioning of the 120 MW Wobthang Solar Farm. This is part of the larger Solar Farm Expansion Project, under which the target is to install a minimum of 310 MW of utility-scale solar generation capacity and associated transmission facility.

Interested bidders can be from any of the eligible countries, with experience in design, supply, installation, testing, and commissioning of solar PV projects. The Solar Farm Expansion Project will support the Kingdom of Bhutan in enhancing its domestic energy security and climate resilience. This will help reduce the country's dependence on costly power imports, particularly addressing recurring electricity shortages during the dry season. DGPC is seeking financing for the Solar Farm Expansion Project from the Asian Development Bank (ADB). Part of the proceeds will be used for payments for the Wobthang Solar Farm.

List of key transactions - Bangladesh ,Nepal, Sri Lanka and Bhutan Q4 2025

Source: YOG INFRA analysis

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