Discussing a new Country Partnership Framework for Bhutan, the World Bank has approved USD 300 M in financing to help the country improve its regional trade and connectivity. The Country Partnership Framework, aligned with Bhutan’s 13th Five-Year Plan, focuses on creating more and better jobs and accelerating economic growth while safeguarding Bhutan’s unique cultural and natural heritage.
The Country Partnership Framework will help increase private investment, enhance climate resilience, and build resilient infrastructure for better connectivity. According to the World Bank, these efforts will help create more and better jobs, particularly for women, youth and disadvantaged groups.
It focuses on improving investment in job-rich sectors such as renewable natural resources, agribusiness, tourism, and digital and creative industries. It also aims to facilitate access to finance and payment systems to further expand the market potential of these sectors. The strategy will also support health, education and skills development, which are musts for job creation.
The Country Partnership Framework proposes a considerable increase in support to infrastructure financing to improve transport and digital connectivity, urban infrastructure, and support the government’s ambitious plans to increase hydropower and other forms of renewable energy generation.
The World Bank Board of Directors also approved USD 300 M in financing for the Accelerating Transport and Trade Connectivity in Eastern South Asia Phase 2.
According to a news release from the World Bank, the project will help improve regional trade, transport and digital connectivity along selected corridors in Bhutan through strategic investments in digital systems for trade, green and resilient infrastructure, and policy and institutional strengthening.
This includes a National Single Window for Trade and construction of the Gelephu to Tareythang Road, a critical road link along the Southern East-West Highway. It will help reduce import and export clearance time by 25 per cent and travel time along the project corridor by 70 per cent. Of the USD 300 M in financing, USD 154 M is in the form of grants.
Phub Gyem
