The Ministry of Infrastructure and Transport (MoIT) has reprioritized several major infrastructure initiatives under the 13th Five-Year Plan (FYP), shifting focus toward climate resilience, essential services, and safety as Bhutan responds to evolving environmental and development challenges.
The recalibration comes at a time when increasing climate risks, rapid urbanization, and rising infrastructure demands are putting pressure on existing systems. Officials say the revised priorities are intended to ensure that limited resources are directed toward projects with the highest immediate and long-term impact.
According to the Ministry, investments have been increased in climate-resilient water systems, sanitation, and aviation safety—areas seen as critical to both public welfare and economic stability.
The Department of Infrastructure Development has revised its budget for potable and climate-resilient drinking water systems from Nu 2,850.64 million to Nu 3,138.51 million. This increase is driven largely by the inclusion of new initiatives, particularly water supply components under the Enhancing Climate Resilience of Urban Landscapes and Communities in the Thimphu–Paro Region (ECRUL), launched in February 2025 with support from the Global Environment Facility (GEF).
Additional funding has also been committed through the ACREWAS project, which covers Gasa, Punakha, and Tsirang, further strengthening efforts to improve water security in vulnerable regions.
Institutional support measures are also being reinforced. The deployment of the Construction Quality Inspection Squad is expected to improve monitoring and implementation of projects. While personnel costs are covered by respective agencies, their travel expenses are financed by the government to ensure consistent oversight.
“The increase in outlay is therefore attributed to these additional approved projects and activities,” the Ministry stated.
Funding from development partners continues to play a key role. ECRUL alone includes Nu 128.78 million in GEF support, while ACREWAS contributes an additional Nu 80 million under the Least Developed Countries Fund, highlighting Bhutan’s continued reliance on international financing for climate-related infrastructure.
As part of the reprioritization, some planned activities have been dropped or deferred. A program on specialized skills development for climate-resilient water infrastructure has been removed, with officials noting that similar objectives are already being met through donor-supported initiatives.
Likewise, a proposed feasibility study to shorten the Thimphu–Gelephu highway through tunneling has been shelved due to the high level of technical expertise required, which is currently unavailable. Instead, the Ministry will focus on upgrading key sections along the Wangdue–Gelephu corridor to improve connectivity more immediately.
At the same time, several new projects have been introduced.
In the transport sector, improvement of the 11.02 km Relangthang–Shechamthang road has been proposed, with an estimated budget of Nu 435.86 million. Survey work has been completed, and construction is expected to begin in the 2026–27 fiscal year.
A sanitation flagship programme has also been proposed, targeting 30 satellite towns and approximately 120,000 people. The initiative aims to increase access to safely managed sanitation services from 49 percent to 80 percent, aligning with global development targets under Sustainable Development Goal 6.
The urgency of such investments has been underscored by recent events, including flash floods in October 2025 that damaged water intake structures in Daga Dzongkhag. Reconstruction of these facilities has now been prioritized to restore essential services and build resilience against future disasters.
In the aviation sector, safety improvements are a key focus. At Bumthang Domestic Airport, plans include the construction of an emergency access road and a Runway End Safety Area (RESA), both aimed at enhancing operational safety.
Meanwhile, upgrades at Gelephu International Airport will include improved fencing and perimeter systems to meet international standards and reduce intrusion and wildlife risks.
The Bhutan Construction and Transport Authority (BCTA) has also proposed measures to strengthen road safety enforcement, including the use of speed guns, breath analyzers, and improved data systems for better decision-making.
Several projects have been adjusted to reflect shifting priorities. At Paro International Airport, development will follow a phased approach based on a new masterplan and future traffic demand, particularly with Gelephu’s expansion.
Other changes include prioritizing runway lighting over precision landing systems at Yonphula Airport, and promoting electric vehicles through charging infrastructure rather than direct procurement.
According to the Ministry, development partners continue to play a critical role in financing key initiatives across infrastructure, climate resilience, and capacity building.
Despite the ambitious plans, implementation remains a challenge. Of the Nu 45 billion indicative outlay for the 13th FYP, only about Nu 7.59 billion—approximately 18 percent—has been spent so far.
Officials say the reprioritization is intended not only to accelerate spending but also to ensure that investments are more strategic, targeted, and responsive to current realities.
Nidup Lhamo, Thimphu
