With a recent installment of Nu 1.997 bn the Government of India (GoI) has released a total of Nu 17.576 bn to RGoB which is 39.06 percent of total committed allocation of Nu 45 bn in the 11th Five Year Plan Period.
The GoI has committed a total of Nu 45 bn in the 11th FYP to Bhutan. The detailed break-up of the commitment are Nu 28 bn for Project Tied Assistance (PTA) , Nu 8.5 bn for Program Grant (PG), and Nu 8.5 bn for Small Development Projects (SDP).
As of date, Government of India has released Nu 10.355 bn for GoI PTA projects, Nu 4.250 bn for PG and Nu 2.971 bn for SDP to RGoB.
PTA is for specific projects, PG gives more flexibility and SDP is for short term mainly smaller projects in rural areas.
In this financial year, GoI has released Nu 9.210 bn of which Nu 5.475 bn is for PTA, Nu 2035.504 million for SDP and Nu 1.7 bn for PG.
In the past a primary concern of the government has been on the timely release of funds by the GoI as delayed fund releases also delay projects. At the same time a part of the first year of any government is mainly focused on planning with activities taking off from the second year and hitting its peak in the third and fourth year. According to officials fund releases have improved but can be better coordinated.
Bishwadip Dey, Deputy Chief of Mission, Embassy of India, Thimphu handed over cheques amounting to Nu 1.997 bn to Mr. Thinley Namgyel, Officiating Secretary, GNHC on 14th January 2016.
Of the total 1.245 bn is for GoI Project Tied Assistance projects and Nu 751 million is for Small Development Projects.
This release of funds pertains to 12 specific projects. These are for the reconstruction of Wangduephodrang Dzong, up-gradation of the East-West highway from Semtokha to Wangdue, Wangdue to Chuserboo, Trongsa-Chuserboo road and Yadi to Lingmethang road.
It also includes funds for expansion of the Paro Airport, Urban Infrastructure Development in Kanglung, conservation of Phajoding Lhakhang, development of Infrastructure and Teaching in College of Science and Technology, Gaeddu College of Business Studies and Institute of Language and Cultural Studies and the first installment of 3rd Batch of SDP.
Mr. Thinley Namgyel thanked GOI for the timely release of funds. He informed that the Bhutan and India Development cooperation projects were at an advanced stage of implementation and efforts were being made to complete most projects as scheduled and requested if remaining release of funds could be processed at an early date.