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39 projects under Project Tied Assistance approved

December 2, 2013
in Uncategorized
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PTABhutan and India have approved 39 projects under Project Tied Assistance (PTA). The Indian government had committed Rs. 28 billion for the projects. About 42 projects are to be further considered.

Both the countries arrived at the decision during the second round of Plan Talks on the 11th Five Year Plan. The discussion was held in New Delhi last week.

A press release from the Ministry of Foreign Affairs states, it was agreed that projects above Rs.500 million shall require detailed project reports.

The release goes on to say, the government will hire about 200 people on contract to supervise and manage the projects in the 11th Plan.

“The government will allocate Nu. 2.3 billion under PTA as co-financing, which will be reserved as cushion to meet project cost escalations.”

The release states that in total, 81 projects will be taken up under the PTA.

The Talk also agreed to enhance the ceiling for each Small Development Projects (SDP) from Rs. 30 million to Rs. 50 million to further rationalise implementation of the projects by the local governments.

The SDP Committee comprising of representatives from the Ministry of Foreign Affairs, the Gross National Happiness Commission and the Embassy of India will meet in Thimphu soon to approve the first draft of SDP projects under the 11th Plan.

Following the Plan Talks, it is expected that GoI releases will be expedited and activities under the 11th Plan will commence soon.

The Bhutanese delegation was led by Foreign Secretary, Yeshey Dorji ,and the Indian delegation by Additional Secretary, Development Partnership Administration (DPA), Ms. Sujata Mehta.

 

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