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).                                                  

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.                                                   

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.