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Case Story on Cross-border Power Export from Dagachhu Hydropower Development
This article presents a case story of Dagachhu Hydropower in Bhutan. It is the world first cross-border clean development mechanism (CDM) initiative under the United Nations Framework Convention on Climate Change and the first cross-border power generation project financed by international agencies like ADB in South Asia. It was also the first PPP adopted by Bhutan where Bhutanese public and Indian private enterprises established a joint venture through the sector's institutional reforms and policy formation for private participation.
The paper first discusses the increasing demand in power generation and the challenges of hydropower that Bhutan faced, which led to the Dagachhu Hydropower development. It further presents the design and implementation of the project, policy for private participation, institutional framework, and the PPP financing scheme.