OPEC Fund for International Development signed a $47.3 million loan agreement with Bhutan to finance the Gamri-II Hydropower Project, expanding the Himalayan nation’s renewable energy capacity and deepening cooperation on future private sector investments.
The agreement was signed by OPEC Fund President Abdulhamid Alkhalifa and Bhutan’s Finance Minister Lyonpo Lekey Dorji.
The financing will support construction of a 55-megawatt run-of-river hydropower plant expected to generate about 219 gigawatt-hours of electricity annually, according to the OPEC Fund.
The project is designed to strengthen Bhutan’s energy security while supporting renewable electricity exports to neighboring India, a key source of foreign exchange earnings for the country.
Alongside the loan agreement, the two sides also signed a framework agreement that will allow the OPEC Fund to expand beyond sovereign lending into private sector operations in Bhutan, opening the door for future investments in businesses and commercially driven projects.
Gamri-II project marks the second hydropower initiative financed by the OPEC Fund in Bhutan following approval of the Begana and Gamri-I Integrated Hydropower Project in 2024.
Hydropower remains central to Bhutan’s economy and climate strategy, with the country relying heavily on renewable energy exports while maintaining its status as one of the world’s few carbon-negative nations.
The new plant is also expected to create jobs and support economic activity in Bhutan’s eastern Trashigang District during construction and operations.
The OPEC Fund said the private sector framework agreement would support Bhutan’s broader sustainable and inclusive development agenda by enabling future cooperation with businesses and private investors.
