According to ADB, the Government of Bhutan has provided electricity to around 60% of all rural households, with the figure expected to reach 84% by 2012.
The latest assistance is expected to help the government reach remaining rural households through a mix of both on-grid and off-grid power supplies.
The electrification project will connect more than 5,000 households to on-grid electricity supplies sourced from hydropower, while nearly 1,900 homes in remote areas that can’t be readily connected to the grid will get solar power packs.
A further 2,500 existing solar power users will have their systems upgraded, and pilot wind power and biogas production plants will also be established.
The project will be carried out in tandem with rural electrification work being undertaken by the Austrian Development Agency and Japan International Cooperation Agency.
ADB’s grant from its concessional Asian Development Fund covers around 87% of the total project investment cost of almost $25m.