The Bhutanese Leading the way.
The 13th Five-Year-Plan (FYP) was officially launched on the 18 July at the Royal Thimphu College (RTC) auditorium, Thimphu.
The event was attended by the Prime Minister, Lektsho Lopen, Speaker of National Assembly and National Council, Opposition leader, Cabinet Ministers and our International partners, including India, Japan, the United Nations, and the Asian Development Bank.
The 13th FYP has been allocated a budget totaling Nu 512.28 billion (bn) which is higher than the previous plan.
India has allocated Nu 85 bn for the 13th FYP and an additional Nu 15 bn for the Economic Stimulus Program (ESP).
India’s Ambassador to Bhutan, Sudhakar Dalela, underscored the enduring and multifaceted cooperation between the two countries. He highlighted their exceptional partnership, spanning education, economy, health, and hydropower, as well as areas like sports, space, data, and technology. Ambassador Dalela emphasized the strong people-to-people connections and shared spiritual values that drive this exemplary relationship.
He praised the leadership of His Majesty’s and India’s successive political leaders for nurturing Bhutan-India friendship since 1961, resulting in the completion of significant infrastructure projects that have contributed to Bhutan’s economic development.
Looking forward, Ambassador Dalela reaffirmed India’s commitment to being a steadfast and reliable development partner for the country, aligning with our national priorities and the vision of our Monarch.
Tomoyuki Yamada, Chief Representative of Japan International Cooperation Agency (JICA) in Bhutan, outlined JICA’s revised country development cooperation policy.
Chief Representative of the Japan International Cooperation Agency (JICA), Tomoyuki Yamada, expressed satisfaction in making significant contributions to Bhutan. He noted Japan’s recent revision of its development cooperation policy, now focusing on health and industrial promotion alongside ongoing support in agriculture and infrastructure. JICA plans to implement seven cooperation programs in Bhutan, emphasizing agriculture, infrastructure, health, and medical care, while promoting industrial growth, good governance, environmental conservation, and disaster prevention.
Yamada highlighted Japan’s shift towards encouraging Bhutan to utilize concessional loans, aiming to enhance the effectiveness of development efforts. Specifically, JICA will collaborate with Bhutan’s Ministry of Agriculture and Livestock (MoAL) on a technical cooperation project addressing human-wildlife conflicts, drawing on Japan’s experience to boost rural productivity and incomes. Discussions with MoAL also include initiatives to add value to agriculture and provide financial support to farmers.
In infrastructure development, JICA plans to contribute two additional bridges in Mongar, adding to the 26 bridges already supported. Discussions are progressing with Druk Green Power Corporation (DGPC) and Bhutan Power Corporation (BPC) regarding two hydropower projects, namely Jomori and Druk Bindu.
Looking ahead, JICA is in discussions with Bhutan’s Ministry of Infrastructure and Transport (MoIT) on landslide prevention measures and plans to resurrect the Royal Center for Infectious Diseases using grant aid, with completion expected by 2026. Medical equipment support for eastern Bhutanese medical institutions is scheduled for this fiscal year.
JICA is also advancing digital initiatives, collaborating with Bhutan’s Ministry of Health and GovTech to establish four digital banks—Health Bank, Medical Bank, Biobank, and Household Bank. Discussions with MoIT are ongoing regarding the utilization of drone technology in various projects.
Representing the United Nations in Bhutan, Carrie Morrison, Country Director of the World Food Programme, emphasized the UN’s strategic priorities under the cooperation framework. These priorities focus on sustainable economic development, diversification, and shared prosperity in Bhutan.
The UN plans to allocate over USD 200 million to support Bhutan’s 13th FYP, with a strong focus on digitization, youth empowerment, gender equality, and the rights of Persons with Disabilities.
Country Director of the Asian Development Bank (ADB), Shamit Chakravarti, highlighted ADB’s extensive support for Bhutan, with USD 350 million for the 13th FYP.
Currently, the Asian Development Bank (ADB) is actively engaged in designing the Dagachhu hydro project. If successful, this project will mark Bhutan’s first hydroelectric endeavor with a small reservoir. The anticipated reservoir capacity may facilitate storing water for up to two months, potentially mitigating winter power deficits. This effort complements Bhutan’s ongoing commitment to boost solar power initiatives.
In alignment with Bhutan’s economic transformation agenda, ADB plans to reinforce three flagship programs. These include initiatives focused on economic diversification, skill development, and enhancing ecological diversity and resilience across the nation. He also mentioned plans to leverage public-private partnerships in health diagnostics and solar energy projects.
Overall, the collaboration between Bhutan and its international partners underscores a collective commitment to advancing the country’s socio-economic development goals outlined in the 13th FYP.
