GoI releases Nu 3.72bn for Development Projects of Bhutan

GoI releases Nu 3.72bn for Development Projects of Bhutan

The GoI has committed Nu 45bn for Bhutan’s 12th Five Year Plan

Following the 3rd Bhutan-India Development Cooperation Talks for the 12th Five Year

Plan, the Government of India (GoI) released an amount of Nu/Rs 3.72bn for various

Development Projects of Bhutan on September 23.

These Development Projects include the High Impact Community Development Projects (HICDPs), the Trade Support Facility (TSF) and the Program Grant.

For the 12th Five Year Plan of Bhutan, the GoI has committed Nu/Rs 45bn, out of which Nu/Rs 28bn has been earmarked for 82 Project Tied Assistance (PTA) Projects, Nu/Rs 8.5bn for implementing 542 HICDPs and Nu/Rs 8.5bn is being given as the untied Program Grant to Bhutan. In addition, India has also committed Nu/Rs 4bn as Transitional Trade Support Facility for the 12th Plan Period.

From the current release, the GoI will provide support of Nu/Rs 2.07bn to 309 HIDCP Projects. Also known as the Small Development Projects, these are small-scale Community Projects in the sectors of Health, Education, Water, Irrigation, Farm Roads and Infrastructure. Spread all across Bhutan, these Projects are being implemented in a decentralized fashion by various Dzongkhags and Thromdes.

In order to upgrade the Trade Infrastructure of Bhutan, improve Ease of Doing Business and strengthen bilateral economic linkages, an amount of Nu/Rs 80mn has been provided in this release toward the transitional Trade Support Facility. Under this facility, the Pasakha Dry Port is being constructed, feasibility studies of Nganglam and Gelephu Dry Ports is being conducted and the Bhutan Integrated Taxation System, one of the components of the flagship Digital Drukyul, is being implemented, among others.

Further, to facilitate Bhutan in implementing its development agenda, an amount of Nu/Rs 85mn has been provided out of the present release as Program Grant. The Program Grant facility is an untied grant in form of direct budgetary support to the finances of the Royal Government of Bhutan.

“Going forward, the people and the Government of India are resolute in their commitment to the equitable, inclusive and sustainable development of Bhutan in consonance with the principles of Gross National Happiness,” states the press release from the Embassy of India in Thimphu.

Kinley Yonten from Thimphu