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Pre-financing system will continue

July 25, 2014
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Pre-financing system will continue-“In order to enjoy the benefits of a sound economic system, it is of utmost importance to build quality roads,” says Prime Minister Tshering Tobgay.


Lyonchhen meet with a group of engineers and accountants who were in Thimphu to attend a meeting.

Commenting on the Thimphu-Wangdue highway, Lyonchhen said, the ongoing road widening works on the Thimphu-Wangdue highway is quality based. And on this note, the widening works have been decided to go on till Trashigang.

The works are to be carried out and complete within the current Five Year Plan.

Pre-financing system

The meeting also saw discussions on pre-finances, money that is given by the government to undertake projects when the funded agencies take time to release the budget.

An accountant from Nganglam, Thinlay Namgay said, it has become difficult for them to undertake the project works without any advance budget from the government. He asked the Prime Minister if the pre-financing system could be resumed.


Pre-financing is an interim solution of providing money from the government when the agencies who actually sponsor the projects take times to release their budget.

The Prime Minister, responded saying that the government had decided not to support pre-financing as the government had pre-financed a lot of projects with huge amounts in the 10th Five Year Plan.

Adding to it, Lyonchhen said, the engineers and the people at site could, however, submit their issues case by case to the Minister of Works and Human Settlement who in turn will table the issues for discussion in the Cabinet.

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