Thimphu, September 5, 2025 — Marking its first-ever investment in Bhutan’s infrastructure sector, IFC, a member of the World Bank Group, announced a US$20 million investment in local currency-linked, long-term financing to Bhutan Power Corporation Limited (BPC), with support from the International Development Association’s Private Sector Window, Local Currency Facility.
This pioneering transaction sets the stage for market transformation in Bhutan, achieving three key milestones: introducing the country’s first Bhutanese Ngultrum (BTN)-linked loan, marking IFC’s debut infrastructure investment in Bhutan, and representing the first-ever State-Owned Enterprise investment in Asia’s power distribution sector. The financing will help modernize Bhutan’s power distribution system, strengthen the national grid, and deliver more reliable, high-quality electricity to households and businesses.
“This partnership with IFC represents a significant milestone for BPC, as it diversifies our financing options and marks our first international commercial loan," said Sonam Tobjey, CEO, Bhutan Power Corporation Ltd. “The Panbang GIS substation and the grid modernization will enhance electricity reliability, reduce outages, and support socio-economic growth in the country. More than an infrastructure upgrade, it is an investment in Bhutan’s future.”
The BTN-linked investment was made possible through IFC’s collaboration with Bhutanese authorities on the revised External Commercial Borrowing Guidelines, issued on 1 May 2025, which improved the regulatory framework to borrow from foreign lenders.
“Rural Bhutan still faces power outages, disrupting daily life and business. Addressing this challenge requires strong investment in sustainable infrastructure," said Imad N. Fakhoury, Regional Director for South Asia, IFC. “In line with the government’s vision to ensure electricity access for all, and in partnership with BPC, this investment will bridge a critical financing gap in the local lending market, enabling development that can boost economic growth, attract industrial investment, create jobs, and improve quality of life.”
Vikram Kumar, Director & Regional Head of Industry, Infrastructure and Natural Resources, Asia Pacific at IFC, signed the agreement on behalf of IFC, emphasizing the role of strategic partnerships in driving sustainable infrastructure development in Bhutan and across the Asia Pacific region, while advancing reliable access to electricity.
In addition to financing, the investment includes a strategic partnership between IFC and BPC to strengthen the company’s environmental, social, and governance standards and enhance project management capabilities. By aligning with IFC Performance Standards, BPC is positioning itself to attract funding from other development finance institutions and international agencies, expanding and diversifying its sources of capital beyond local markets.
This initiative complements broader World Bank Group efforts in Bhutan and aligns with the Country Partnership Framework (CPF) FY2025–29, which prioritizes climate resilience and sustainable infrastructure to improve connectivity and support growth.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2025, IFC committed a record $71.7 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About the IDA Private Sector Window
The International Development Association’s Private Sector Window (IDA PSW) was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in creating jobs and promoting economic transformation, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by the World Bank Group’s International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the Bank Group’s other tools are insufficient. For more information, visit: http://ida.worldbank.org/psw
About Bhutan Power Corporation
Bhutan Power Corporation Limited (BPC) is one of the portfolio companies of Druk Holding and Investments Limited (DHI) and is responsible for electricity transmission, distribution and supply across the country and construction of the associated infrastructures. BPC was established in July 2002 in line with the Electricity Act 2001 following the separation and delinking of the above responsibilities from the Department of Power.
BPC is guided by the Vision statement “To be innovative and efficient power utility driving the socio-economic transformation of Bhutan” and Mission statement “To provide affordable, adequate, reliable and quality electricity services to customers.” The values that BPC believes in and reinforces are Integrity, Mutual Respect, Professionalism, Accountability, Care and Tha Damtse (IMPACT). With its nationwide transmission and distribution network, BPC plays a vital role in ensuring reliable, affordable access to clean energy and supporting Bhutan’s socio-economic development. The company is committed to operational efficiency, sustainability, and the adoption of modern technologies to strengthen electricity services and drive the country’s long-term growth. For more information, please visit www.bpc.bt
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