During the First High Impact Community Development Projects (HICDP) meeting between Bhutan and India, 283 initiatives were approved for the 13th Five Year Plan (FYP). The committee reviewed and approved these projects, amounting to about Nu 4.171 billion, as the first batch of HICDPs for the 13th FYP period.
These projects are expected to enhance accessibility and economic opportunities for the local community, contributing to improved livelihoods, job opportunities, and food security.
In addition, HICDPs have short gestation periods and cover areas such as drinking water supply, irrigation, rural connectivity, agricultural infrastructure, flood protection, tourism development, township infrastructure development, and waste management, particularly in rural and semi-urban areas.
For the 13th FYP period in Bhutan, the Government of India has committed assistance of Nu 100 billion (INR 100,000 million), of which Nu 10 billion (INR 10,000 million) has been earmarked for HICDPs.
The HICDP meeting between the Royal Government of Bhutan and the Government of India for the 13th FYP was held on December 4, 2024, in Thimphu. The Royal Government delegation was led by Ms. Pema Tshomo, Director of the Department of Affairs in the Ministry of Foreign Affairs and External Trade, while the Government of India delegation was led by Mr. Niteen S. Yeola, Deputy Chief of Mission at the Embassy of India in Thimphu.
The meeting was held in a friendly and cordial atmosphere, reflecting the excellent bonds of friendship and cooperation between the two countries.
Meanwhile, for the 12th FYP, the Government of India released an amount of Nu 3.72 billion for various development projects in Bhutan, with most focusing on High Impact HICDPs, the Trade Support Facility (TSF), and the Program Grant.
During this period, the Government of India committed Nu 45 billion, with Nu 28 billion earmarked for 82 Project Tied Assistance (PTA) projects, Nu 8.5 billion for implementing 542 HICDPs, and Nu 8.5 billion provided as an untied Program Grant.
An additional commitment included Nu 4 billion as a Transitional Trade Support Facility to support Bhutan in enhancing its trade capacities. This support is crucial for Bhutan’s sustainable development and economic resilience, particularly in light of the challenges posed by climate change and the ongoing impacts of the COVID-19 pandemic.
Looking forward, both governments anticipate that strengthened collaboration will significantly contribute to Bhutan’s socio-economic development and pave the way for future bilateral initiatives that align with the developmental priorities of both nations.
Sherab Dorji from Thimphu
