Bhutan’s hydropower sector is the backbone of its national economy and a strategic pillar for sustainable development. The legal and regulatory framework governing hydro-electric projects in Bhutan is complex, multi-layered, and highly specialized, involving environmental clearances, cross-border power agreements, land acquisition, public procurement, financing structures, and long-term concession arrangements.

Basnet Attorneys and Law provides comprehensive legal services and advisory for hydropower and hydro-electric projects in Bhutan, supporting developers, investors, EPC contractors, financiers, public sector entities, and joint venture partners at every stage of the project lifecycle.

End-to-End Legal Advisory for Hydropower Projects

Our firm advises on hydropower projects from project conception and feasibility through development, construction, operation, and transfer, ensuring legal compliance, risk mitigation, and commercial certainty.

Our hydropower legal services include:

1. Regulatory & Statutory Compliance

Advisory on Bhutan’s hydropower laws, energy policies, and sector-specific regulations

Licensing, permits, and approvals from relevant authorities

Compliance with environmental, social, and sustainability obligations

2. Project Structuring & Concession Agreements

Structuring of hydropower projects (public, private, PPP, JV models)

Drafting and negotiation of concession agreements and implementation agreements

Advisory on government guarantees, sovereign undertakings, and risk allocation

3. Power Purchase Agreements (PPAs)

Drafting, review, and negotiation of domestic and cross-border PPAs

Tariff structures, payment security mechanisms, and termination provisions

Dispute resolution and enforcement clauses

4. Land, Water Rights & Environmental Matters

Land acquisition and right-of-way advisory

Water use rights and river basin considerations

Environmental impact assessments (EIA) and compliance frameworks

5. EPC, O&M & Commercial Contracts

Engineering, Procurement & Construction (EPC) contracts

Operation & Maintenance (O&M) agreements

Supply, logistics, and ancillary project contracts

6. Project Finance & Investment Advisory

Legal due diligence for lenders and investors

Advisory on project finance structures and security documentation

Compliance with Bhutanese foreign investment and financing regulations

7. Dispute Resolution & Risk Management

Contractual dispute avoidance and resolution strategies

Arbitration, mediation, and litigation support

Advisory on force majeure, change-in-law, and termination scenarios

Why Basnet Attorneys and Law?

Basnet Attorneys and Law combines local legal insight in Bhutan with a strong understanding of infrastructure, energy, and hydropower projects. Our approach is pragmatic, commercially focused, and aligned with Bhutan’s unique legal and regulatory environment.

We will work closely with developers, government agencies, international investors, and technical consultants to ensure that hydropower projects are legally sound, bankable, and aligned with national development priorities.

With Bhutan continuing to expand its hydropower capacity and explore sustainable energy partnerships, experienced legal counsel is essential. Basnet Attorneys and Law will be a trusted legal partner for hydropower projects seeking clarity, compliance, and long-term legal certainty in Bhutan.