Her Majesty Queen Mother Dorji Wangmo Wangchuck graced the Payment of Ecosystem Services Agreement signing ceremony in Phuentshogling today. In a win-win agreement, upstream watershed protectors and downstream water users are now linked, strengthening livelihoods while safeguarding the Omchhu ecosystem.
After two years of extensive field research and consultations with key stakeholders, the Payment for Ecosystem Services agreement was formally signed between the upstream communities living at the source of the Omchhu watershed and the beneficiaries, represented by the downstream water users of Phuentsholing Thromde.
The agreement recognizes the critical role of upstream communities in conserving the watershed, while ensuring a reliable and sustainable water supply for the growing border town. It is expected to strengthen environmental stewardship, improve livelihoods, and serve as a model for future conservation-linked development initiatives in the country.
“We will now work hand in hand to protect the water source. Our community will ensure that cattle do not graze near the source and that there is no tree cutting or other activities that could harm it. In return, downstream residents will contribute five percent of their water bill to incentivize us. Since they cannot easily travel upstream to protect the source, we will carry out these conservation activities on their behalf, as we live closest to the watershed,” said Tandin Wangchuk, Chairperson, Omchhu Watershed Service Provider, Wangdigatshel, Phuentshogling.
“It will benefit not only the upstream communities who are protecting the Omchhu watershed but also the downstream users, which is the Phuentshogling Thromde. We all know that water is increasingly becoming scarce. This will help the downstream users to have a reliable water source,” said Norbu Yangdon, Programme Coordinator, IKI Living Landscape Project, WWF Bhutan.
“It is also expected to enhance the sustainable financing mechanism in the country. It is usually always a project and plan by the government, but this is a kind of project among the people themselves, helping and supporting each other,” said Dr Sangay Dorji, Technical Director, Tarayana Foundation.
The agreement signifies a formal commitment to incentivise service providers to conserve the Omchhu watershed and mitigate existing environmental issues in the upstream watershed area.
According to Tarayana officials, this also marks the first CSO-initiated Payment for Ecosystem Services in Bhutan, implemented through a collaborative effort between the Tarayana Foundation and Phuentsholing Thromde, in partnership with WWF-Bhutan, and with technical support from the Department of Forests and Park Services and the Department of Water under the Ministry of Energy and Natural Resources.
Kinley Dem, Phuentshogling

