Mangdechhu Hydroelectric Project (720MW) is one amongst the ten Hydroelectric Projects planned under the 10,000MW hydropower development by the year 2020 programme of Royal Government of Bhutan supported by the Government of India. An agreement for execution of Mangdechhu Hydroelectric Project was signed between the two governments on 30th April 2010 at the approved cost of Nu./Rs. 28963.00 million (March 2008 price level) to be funded by GoI as 30% grant and 70% loan at 10% annual interest to be paid in thirty equated semiannual installments.
The Mangdechhu Hydroelectric Project Authority was subsequently constituted on 8th June 2010. The Authority comprises of Chairperson and four members nominated by the Royal Government of Bhutan and three members nominated by the Government of India. The Project Management is headed by the Managing Director, who is being assisted by a Joint Managing Director, Director (Technical) and Director (Finance). NHPC Limited, Central Public Sector Undertaking of GoI is the Design and Engineering consultant to the Project.