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ADB-Bhutan Partnership to Support Inclusive, Green Growth

Jul 24, 2014

ADB-Bhutan Partnership to Support Inclusive, Green Growth-.To promote inclusive and environmentally sustainable growth in Bhutan and to boost cooperation with the neighbours, the Asian Development Bank (ADB) initiates a new country partnership strategy with Bhutan for 2014-2018.

“Bhutan has made enormous strides in reducing poverty and boosting economic growth and our goal is to work alongside the government to broaden the economy and ensure equal opportunities for everyone,” said Hun Kim, Director General of ADB’s South Asia Department.

Economic Growth

According to the press release from the ADB, poverty in Bhutan has dropped from 23.2 percent in 2007 to 12.0 percent in 2012 but inequality still remains high.

Poverty in Bhutan

Poverty in Bhutan has dropped but inequality remains high

Economic growth is expected to rebound to 6.0 percent in the fiscal year to end June 2014 but growth has been driven largely by the capital intensive hydropower sector.

Youth unemployment is highlighted to be a growing concern for Bhutan.


ADB’s priority sectors will be energy, finance, transport, and water and other urban infrastructure and services in support of the government’s 11th Five Year Plan for 2013-2018 that targets self-reliance for all national development needs by 2020, inclusive social development, including cutting poverty to 5 percent or less, and growth that is carbon-neutral.

ThimphuTown-urban infrastructure

ADB will prioritise energy, finance, transport, water and urban infrastructure

ADB’s energy projects will build on past successes and include mobilising hydropower development through public-private partnerships, promoting other renewable energy sources, and expanding the transmission and distribution networks.

Transport projects will strengthen the road network especially in the remote southern east-west highway, improve connectivity with neighbouring countries to promote cross-border trade, and strengthen other aspects of trade facilitation.

ADB will continue to support the development of key urban infrastructure such as water and sewage services in regional growth centers to help meet municipal service requirements of their rapidly growing populations.

ADB will also strengthen macro-financial stability and further development of the financial sector to foster a business enabling environment.

Private sector development, improved governance, gender equity and links with other development partners will also be key.

Bhutan joined ADB in 1982 and as of the end of 2013, had received US$ 337.46 mn through 29 loans, US$ 135.39 mn for 9 grants, and US$ 54.89 mn for 129 technical assistance projects.

Bhutan is eligible for concessional loans and grants from ADB’s concessional lending window and is estimated to receive US$ 179.73 mn from 2014 through 2017.

1 Comment for “ADB-Bhutan Partnership to Support Inclusive, Green Growth”

  1. Tashi

    Transportation could have been put into place 20 yrs ago not today when the things are so expensive and country is facing financial problems due to lavish expenditure in the past for nothing good and profitable.

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