Tenth Five Year Plan 2008-2013

2 Tenth Plan Document, Volume 2 MoA/23 Nature Conservation 190.000 Capacity Enhancement in Geoscientific Investigations and Mineral MEA/17 76.715 Development Assessment and Monitoring of Climate Change Induced and MEA/18 164.860 Geological Hazards Preparation of Master Plan for Management of Dratshang and its DL/05 7.600 Property NLC/01 Strengthening of National Land Commission 385.861 NEC/01 Conservation of Environment 109.300 Enabling Environment (EE) 4,816.630 MHCA/02 Strengthening of Immigration Services 57.000 MHCA/03 Civil Registration Services 100.455 MHCA/04 Disaster Risk Management 33.180 Legal Support to Local Administration and Supervision of MHCA/05 10.500 Cooperatives and NGOs MHCA/06 Secretariat Services 1,053.000 MEA/19 Secretariat Services 40.000 MoF/01 Institutional Strengthening of Ministry of Finance 699.921 MIC/04 Information and Media Development 112.000 MIC/05 Secretariat Services 24.500 BICMA/01 Strengthening of Bhutan InfoComm and Media Authority 10.500 MFA/01 Institutional Strengthening of Ministry of Foreign Affairs 447.510 MoE/09 Secretariat Services 71.500 MLHR/08 Secretariat Services 8.000 MWHS/06 Strenghening of Construction Development Services 38.000 Strengthening Legal & Institutional Framework for Controlling ACC/01 125.370 Corruption EC/01 Strengthening Electoral Process in the Country 79.910 Judiciary/01 Infrastructure Development 724.512 RAA/01 Infrastructure Development and Institutional Strengthening 53.555 RCSC/01 Strengthen Administrative, Legal and Management Systems 159.000 DL/09 Secretariat Services 58.907 BBS/01 Improvement of Reach and Quality of BBS Radio and TV Services 406.779 BNCA/01 Institutional and Infrastructural Development 21.403 GNHC/01 Strengthening Planning, Monitoring and Evaluation System 50.000 NCWC/01 Strengthening the Advancement of Women and Children 64.206 NSB/01 Strengthening of National Statistical System 45.290 Other Services 321.632 Strategic for Knowledge, Innovation and Life-Long Learning Skills (SKILLS) 18,645.536 MoE/01 Primary Education Services 3,003.440 MoE/02 Secondary Education Services 5,279.370 Tenth Plan Document Volume 2 3 MoE/03 Early Childhood Care & Development Services 3.450 MoE/04 Special Education Services 66.580 MoE/05 Adult Literacy & Continuing Education Services 48.550 MoE/06 Scholarship Services 657.780 MoE/07 Bhutan Board of Examination 30.760 MoE/08 Youth & Sports Services 327.700 MLHR/01 Human Resources Development 164.614 MLHR/02 Employment Promotion 238.285 Improvement of Working Conditions and Labour Relations at Work MLHR/03 86.150 Places MLHR/04 Enhancing the Competitiveness of Skilled Workers 37.587 MLHR/05 Institutional Strengthening of Vocational Training Institutes 604.830 MLHR/06 Institutional Strengthening of Zorig Chusum Institutes 113.110 Establishment of New Vocational Training Institutes and Institutes MLHR/07 193.491 of Zorig Chusum DL/02 Expansion and infrastructure in Tango Buddhist College 250.005 DL/03 Construction of Nangzur Anim Shedra (Nunnery) 150.000 Construction of a New Zhirim Lobdra at Kuenphen Yoeselling at DL/07 23.041 Gyelposhing, Mongar DL/08 Development of Management Information System 5.000 RCSC/02 Human Resource Development Programme 4,056.757 Enhancing the Quality, Relevance and Coverage of Management RIM/01 143.300 Education RIM/02 Campus Development 131.750 RUB/01 Expansion of Tertiary Education 1,726.640 RUB/02 Quality Assurance and Teaching-Learning 473.470 RUB/03 Research, Scholarly activities and Consultancy services 68.250 RUB/04 Promotion of Wholesome Education Services 158.740 National Sports Infrastructure Development BOC/01 100.000 TCB/02 Hotel and Tourism Management Training Institute 422.286 CBS/01 Centre for Bhutan Studies 50.000 DDC/01 Dzongkha Development Commission 30.600 Health 4,533.336 MoH/01 Health Management and Development 31.200 MoH/02 Health Promotion and Disease Prevention and Control 653.112 MoH/03 Diagnostic and Curative Services 3,637.840 MoH/04 Sustainability, Regulatory and Monitoring 72.184 DL/01 Improvement of Health & Sanitation Services 139.000 TOTAL 73,611.759

4 Tenth Plan Document, Volume 2 MINISTRY OF AGRICULTURE Tenth Plan Document Volume 2 5

6 Tenth Plan Document, Volume 2 MoA/01: COMMODITY/CEREAL DEVELOPMENT PROGRAMME 01 A.Overview 1 Sector : Agriculture MINISTRY OF AGRICULTURE Synergizing Integrated Rural-Urban Development for Linkage to National poverty reduction, food security and improved rural

2 Development Objectives & : livelihoods through enhanced agricultural productivity, Strategies access and marketing. Proportion of rural households in poverty reduced from 30.9% to 20% through enhanced food security, increased rural income and employment generation while ensuring

3 Expected Results/Targets : effective environmental conservation. Increase national rice self sufficiency level to 65% and national food self- sufficiency to 70% and raise mean annual rural household cash income from Nu. 10,700 to above Nu. 35,000 MDG Goal 1: Eradicate extreme poverty and hunger. SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people in poverty by 2010; 4 Relevant MDG & SDG : SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor and SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency : 6 Target Group : Farming Communities 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Costs : Nu. 60.000 m

11 External Financing Required : Nu. 60.000 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Agriculture, Dzongkhags and Gewogs National Food Security Report, 2004; National Food

14 Documents Available : Security Strategy Paper, Sector Tenth Plan B. Situational Analysis Agriculture in Bhutan revolves essentially around growing food grains for self-sustenance with about 69 percent of the total population dependent on it for their livelihood. The major commodity crops grown in the country are paddy, maize, wheat, buckwheat, barley and millet. In 2004, there were about 127,125 acres of land under cereal crop cultivation with total production of 156,304 MT. Over the years the demand for rice has been increasing since it is the most preferred cereal. The annual average import of rice over the last three years has been about 46,629 MT (imported through FCB and private traders) and valued at Nu. 384,157,000. The imported rice is consumed mainly by the growing urban population. Oilseed and grain legumes production has been a constant part of the country’s farming system. Mustard is one of the major sources of vegetable oil for consumption and cash income. Grain legumes are grown in almost all parts of the country. However, production remained stagnant in terms of acreage and yield, due to low emphasis received in the past. Available sources indicate that there is potential for production of 3,110 MT of oilseed and 7,710 MT of grain legumes. MINISTRY OF AGRICULTURE 7 There is thus a shortage of food production in the country. Farmers in Bhutan suffer from a persistent cycle of low productivity in agriculture mainly because of poor soil fertility, low levels of input supplies and substantial crop losses due to pests and lack of proper post-harvest management. This is mainly due to low level of investments in cereal production in the past. About half of all rural households experience food shortages for more than two months and many Geogs experience vulnerability to food insecurity. Therefore, substantial improvements need to be made in the delivery of improved seeds, inputs and technology, in order to achieve food security and the target of minimum 70 percent self-sufficiency in food grain production. Inadequate institutional coordination among the technical Departments, AMS, extension services in the field and with few ministries such as the MoEA have proved to be inadequate and created bottlenecks. There is also a need to enhance investment in areas of seed improvement, inputs and technology for commodity crops. Post-harvest management of commodity crops should be addressed collaboratively with the Post-harvest management programme. C. Strategy The arable agriculture commodity development programme will be pursued through the overall RNR Sector‘s Triple Gem Approach of enhancing production, improving access and targeted marketing. In addition, the Ministry of Agriculture will focus on executing targeted interventions in certain areas through the timely delivery of technical support, supply of improved seed varieties, improvement of crop management technology and practices, and other inputs necessary for enhancing production. Linking agricultural production to the market and increased commercial opportunities will be given a high priority. Investments will be made to commercialize the cultivation of cereals particularly rice in selected potential areas to increase rice production for import substitution. The arable agriculture programme will be guided by a set of specific milestones aimed at enhancing food availability, accessibility to food and stability of food. Stability aspect of food security will be enhanced through coordination with other programmes such as land and water management. The project plans shall be harmonized with the national arable agriculture commodity programme to ensure optimal use of resource and avoid duplication of efforts. For more effective co-ordination, each programme shall be headed by a Commodity Co-ordinator, who will liaise with relevant projects, research programme and other agencies within and outside the MOA. Focus shall be given through targeted intervention in potential commodity crops at national level. Where necessary institutional coordination must be reviewed and upgraded. Timely delivery of improved seeds, inputs and technology shall be accorded priority. Improved post-harvest management shall be adopted.

8 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 01 Proportion of rural Increased National Improved crop Promoting minor cereals and MINISTRY OF AGRICULTURE households living food self sufficiency management (Rice oil seeds in poverty reduced increased to 70% production increased from from 30.9% to 20% (food availability) 54,325 MT per year to Rice Commercialization 62,474 MT per year) Mean annual rural Food storage and Maize Storage & Value household cash distribution houses set Improved pest addition income increased up in four regions management practices from Nu. 10,700 to adopted Timely supply of inputs above Nu. 35,000 Infrastructure Linking production to strengthened market/s Post-production & Land and water management marketing enhanced Improved Soil fertility and input supply E. Management Arrangements Institutional Arrangements The Department of Agriculture shall be responsible for the overall execution, coordination and technical support of the programme and the Dzongkhag and Gewog administrations shall carry out the implementation. The Department shall prepare a comprehensive plan for commodity and cereal crop development in coordination with all the stakeholders – researchers, extension officers, input suppliers, producers, retailers, millers and exporters. This comprehensive plan shall be used as a guide for increased production of cereals and shall also entail the coordination mechanism and relevant processes among the different stakeholders. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Rice Development 30.000

2 Maize Development 10.000

3 Oil seeds and Grain Legumes Development programme 10.000

4 Other cereals (wheat, buckwheat, millet etc.) 10.000 Total 60.000 MINISTRY OF AGRICULTURE 9 MoA/02: POST HARVEST MANAGEMENT PROGRAMME A. Overview 1 Sector : Agriculture Synergizing Integrated Rural-Urban Development for Linkage to National poverty reduction, food security and improved rural

2 Development Objectives & : livelihoods through enhanced agricultural productivity, Strategies access and marketing.

3 Expected Results : Post harvest loss of crops reduced from 20% to 10% MDG Goal 1:Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people in poverty by

4 Relevant MDG & SDG : 2010; SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor and SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency : 6 Target Group : Farming Communities and traders 7 Scope : National 8 Status-Ongoing or new New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 99.500 m

11 External Financing required : Nu. 99.500 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Agriculture, Dzongkhags and Gewogs

14 Documents available : Sector Tenth Plan B. Situational Analysis The Post Harvest Management Programme was initiated in 1997 with the establishment of the National Post Harvest Center under the Department of Agriculture. The main objective of the programme is to enhance market value and reduce post-harvest loss of all agricultural crops. The estimated post-harvest loss of agricultural and horticultural crop ranges between 20-30% of the total production. During the Ninth Plan, two integrated food-processing plants were established in Dagapela and Goling and one is presently underway in Pemagatsel. About thirty dryers were established in different parts of the country for drying fruits, vegetables, and mushrooms. The adoption of post-harvest technology has increased through the conduct of various demonstrations and promotional events. For instance, the use of improved packaging materials such as fiberboard and plastic crates has had a major impact. In 2006, a consignment of apples (preserved in cold storage) was exported to Bangladesh for the first time. Continued support would be required during the Tenth Plan especially in the area of creating awareness on post-harvest management and technology. Notwithstanding the achievements, Post Harvest Management Unit (PHU) of the Ministry must strengthen coordination and collaboration with the BCCI, Agro-Industries and cottage food industries. Post-harvest management of crops requires development in terms of infrastructure and technology

10 Tenth Plan Document, Volume 2 C. Strategy The main strategies for the Post-Harvest Management programme in the Tenth Plan will include 01 improving post harvest handling through introduction of appropriate technology, infrastructure development and demonstration and trainings. The programme will also continue to support small- scale food processing enterprises to crops to enhance rural income, food security and create rural MINISTRY OF AGRICULTURE employment. During the Tenth Plan, major investments will have to be made in the development of agriculture based infrastructures. Cold stores, modern packing houses, food processing enterprises, modern crop handling and transport system are imperative to reduce loss, increase value and revolutionize the way crops are handled, marketed and consumed. The programme shall strengthen linkages within the Ministry and agencies outside the Ministry particularly BCCI, Agro-Industries and cottage food industries. Assistance through introduction of appropriate post-harvest value addition technologies, especially for the cottage food industries shall be given due importance. D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Reduce post Post harvest handling & Food Development of post- household cash harvest losses of processing technologies harvest handling income increased from agricultural and improved technologies & value Nu. 10,700 to above horticultural crops addition Nu. 35,000 by 10% from the Improved post harvest estimated 20% infrastructures for agriculture Infrastructure Proportion of rural crops particularly HH Development households living in Enhance the market level (1-2 mt) maize store poverty reduced from value of agricultural established Development of Rural 30.9% to 20% through crops by 5 – 10% Food Industry enhanced food security Rural food industries established E. Management Arrangements Institutional Arrangements The Department of Agriculture shall be responsible for the overall execution and coordination of the programme. The National Post-Harvest Center under the Department shall provide technical support in collaboration with the Research centers, Agriculture Marketing Services Division, Agriculture Machinery Centre and Extension services for implementation by the Dzongkhags and Gewogs. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Development of Post-harvest Handling Technologies & Value 34.30 Addition

2 Development of agri-based Rural Enterprises 15.20

3 Infrastructure Development 50.00 Total 99.50 MINISTRY OF AGRICULTURE 11 MoA/03: INTEGRATED PEST MANAGEMENT PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National : Synergizing Integrated Rural-Urban Development for Development Objectives& poverty reduction, food security and improved rural Strategies livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : Reduced pre-harvest crop losses to pest(including wildlife) and diseases from 20-30% to 10-15%, and minimize crop losses to storage pest from 25-20% to 15%

4 Relevant MDG & SDG : MDG Goal 1:Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people in poverty by 2010; SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor and SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency :

6 Target Group : Farmers with special focus on vulnerable Gewogs 7 Scope : National 8 Status – Ongoing or new : Ongoing/New 9 Timeframe : Five Years (2008-2013) 10 Indicative Capital Cost : Nu. 30.000 m 11 External financing required : Nu. 30.000 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Plant protection service center, extensions, Dzongkhags and Gewogs

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Plant Protection Programme was initiated with the start of the Agriculture Development Programme in the early 1960s. Due to the diverse ecological condition, Bhutan is highly prone to a diverse spectrum of pests and plant diseases that cause heavy crop losses. However, the magnitude of crop losses to pests in Bhutan has not been accurately assessed though sources from various estimates indicate that the overall pre-harvest loss to pests is about 20 to 30 percent and post- harvest loss to storage pests is about 10 to 20 percent. In the past development plans, research were undertaken on plant pest and diseases such as citrus fruit fly, rice blast disease, potato late blight disease, apple scab, chilly blight disease, diamond back moth on cabbage and cauliflower, etc. Extensive surveys were carried out on wild boar problems in relation to crop damage, social costs of guarding crops at night, and use of traps and citrus greening diseases. A database on pests and diseases is also maintained at the National Plant Protection Center and the information is made available through journals, newsletters, etc.

12 Tenth Plan Document, Volume 2 C. Strategy The focus of the Plant Protection Programme over the Tenth Plan will be to reduce pre-harvest and 01 post-harvest losses to pests by about 50 percent or achieve a storage pest loss of 5 to 10% and pre- harvest loss of 10 to 15%. This target will be achieved through research and development, adoption of appropriate pest management technologies, development of institutional framework and good MINISTRY OF AGRICULTURE agricultural management practices, strengthening information/database and enhancing awareness and building capacity of the extension workers and farmers. Special focus will also be on mitigating crop depredation by wildlife, including providing compensation for such damage, given that it is a major cause of food insecurity in most farming communities. D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Reduced pre-harvest At least 20% of Development of Integrated household cash income crop losses to pest farmers adopt Pest Management and increased from Nu. 10,700 (including wildlife) and integrated pest good agricultural practices to above Nu. 35,000 diseases from 20-30% to management (pre for major crops 10-15%, and post harvest Proportion of rural pest management Improved diagnostic and households living in Minimize crop losses to practices) and good other service facilities poverty reduced from storage pest from 25- agricultural practices 30.9% to 20% 20% to 15% Awareness Campaign and Training E. Management Arrangements Institutional Arrangements The Department of Agriculture shall be responsible for the overall execution and coordination of the programme. The National Plant Protection Center of the Department of Agriculture shall take the lead role in the implementation of the programme in coordination with the Dzongkhags and Gewogs. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Integrated Pest Management, Awareness Campaign, and Farmers 10.000 Training

2 Infrastructure Development 20.000 Total 30.000 MINISTRY OF AGRICULTURE 13 MoA/04: IRRIGATION & WATER MANAGEMENT PROGRAMME A. Overview 1 Sector : Agriculture Linkage to National Synergizing Integrated Rural-Urban Development for poverty

2 Development Objectives & : reduction, food security and improved rural livelihoods through Strategies enhanced agricultural productivity, access and marketing. Portion of wetland with dry season irrigation increased from 3 Expected Results : 40% to 70%. MDG Goal 1:Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people in poverty by 2010; 4 Relevant MDG & SDG : and SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor 5 Donor Agency :

6 Target Group : Farmers in rural areas 7 Scope : Nationwide

8 Status – Ongoing or new Ongoing/New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 70.500 m

11 External Financing required : Nu. 70.500 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Agriculture, Dzongkhags and Gewogs

14 Documents Available Sector Tenth Plan B. Situational Analysis Irrigation development in Bhutan so far has, more or less been confined to paddy irrigation. Paddy is grown in almost all Dzongkhags and at least 62,000 acres are irrigated paddy land, contributing to 34.5 percent of the cereal production in the country (Agriculture Statistics, 2005). While the total area under paddy cultivation has reduced considerably due to the loss of cultivable land from urban expansion, industrial growth and infrastructure development, productivity in terms of the yield per unit area has however increased. In 2005, paddy production was 67, 606 MT. Development assistance in the past focused mainly on the construction of new irrigation channels and the rehabilitation and renovation of existing channels to augment the seasonal shortage of water supply. During the Ninth Plan, about 133.21 km of new irrigation channels were constructed and 458.56 km of old channels renovated. In the Tenth Plan, 60 km of irrigation channels will be constructed in the 6 eastern regions. Various area development projects will continue to support construction of new irrigation schemes and improve existing ones. Support on irrigation development is thinly spread across country irrespective of the potential areas for development. Management of existing irrigation systems by the farmers are generally weak leading to low water use efficiency. Implementation of irrigation projects and the National Irrigation Policy (NIP) modules have become weak following the transfer of irrigation

14 Tenth Plan Document, Volume 2 engineers to MoWHS. Knowledge of extension agents on NIP modules is weak. Research on irrigation and water management is very limited. Except in the form of some demonstration plots for orchards using drip irrigation there is no RGOB support vis-à-vis irrigation, for crops other 01 than paddy. The focus of Irrigation development on crops other than paddy must be enhanced and the functioning of Water User’s Association made more efficient. There is also the need to enhance MINISTRY OF AGRICULTURE the national database and information on the irrigation system. C. Strategy Strategies for the Irrigation & Water Management Programme in the Tenth Plan will include the exploring of water sources and adoption of appropriate technologies to improve access to water and efficiency in the use of water resources including the options of water harvesting/lift pump and drip irrigation. More resources will be invested in areas where there is potential for increased production of paddy through wetland expansion and improved irrigation water supply. The potential for groundwater development in the southern belt will also be explored. The Water User Associations throughout the country will be strengthened through trainings and workshops in order to ensure sustainable management of water resources. Trainings will be provided to extension agents in the implementation of NIP modules. Extending irrigation to crops other than paddy will be one of the focuses in the Tenth Plan. Information management of irrigation schemes will be improved by updating the national irrigation inventory/database and ensuring a mechanism of periodical updating. This will assist in planning of irrigation development in the future. Protection and re-vegetation of catchment areas with suitable species will be explored to rejuvenate water source wherever possible in potential and feasible areas and where watershed programme do not cover such irrigation source protection. D. Results Framework Impact Outcome Output Projects/Activities Mean annual Portion of Taklai Irrigation channels Renovation of Irrigation Channels in rural household wetland with renovated emergency cash income dry season increased from irrigation Alternative water sources/ Renovation of Taklai Irrigation Channel Nu. 10,700 increased technologies explored to above Nu. from 40% to Water Harvesting & Irrigation of Cash Crop 35,000 70% Studies/policy review conducted & database Drip & Sprinkler Irrigation Trials Proportion of developed rural households Feasibility Study of large scale irrigation and living in poverty Water User Associations Ground Water reduced from formed and their capacity 30.9% to 20% strengthened Policy Review & Database Development Extension agents trained Establishing and Strengthening of Water on NIP modules User Associations MINISTRY OF AGRICULTURE 15 E. Management Arrangements Institutional Arrangements The Department of Agriculture shall be responsible for the overall execution and coordination of the programme. The Dzongkhags and Gewogs shall implement the construction, renovation, and rehabilitation of irrigation channels. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million) Renovation of Irrigation Channels in emergency including 1 35.000 renovation of Taklai irrigation channel

2 Water Harvesting & Irrigation of Cash Crop 12.500

3 Policy Review and Irrigation Database Development 1.000

4 Strengthening Water User Associations 3.000

5 Drip & Sprinkler Irrigation Trail 4.000

6 Feasibility Study for large scale irrigation 15.000 Total 70.500 MoA/05: SEED AND PLANT DEVELOPMENT PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : Quality and quantity of seeds and planting materials supply increased from 2 % to 50% of requirement. Availability and access increased from 100 MT to 600 MT of food crops and fruit seedlings from 200,000 to 500,000

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger and MDG Goal 7: Ensure environmental sustainability SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people living in poverty by 2010; and SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor and 5 Donor Agency : 6 Target Group : Farming communities 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008-2013)

16 Tenth Plan Document, Volume 2

10 Indicative Capital Cost : Nu. 20.000 m

11 External Financing Required : Nu. 20.000 m 01 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Agriculture MINISTRY OF AGRICULTURE

14 Documents Available : Sector Tenth Plan B. Situational Analysis The production and distribution of improved variety of seeds is a critical determinant of agricultural production and in increasing agricultural productivity. It determines crop yields and the performance and efficacy of all other essential agricultural inputs to the farming system. Moreover, seed development and propagation assumes a particular importance towards ensuring the long term sustainability of national food security. The Royal Government recognizing the importance of seed development in agricultural transformation attached a high priority on seed system development after the mid 1970s. A nationally coordinated seed production programme began in 1984 with the establishment of National Seed and Plant Programme. In 1995, the Druk Seed Corporation (DSC) was created to make the enterprise of seed production and propagation on a economically self sustaining basis. The DSC however still depends on government subsidies as it is not able to fully meet the cost of production and distribution due to high transportation costs and low level of demand from rural communities. Further, the corporation is unable to meet the needs of smallholder farmers as the seed production is limited to a few varieties and the quality of the seed produced is inconsistent. Over the years, large-scale seed production farms, technical laboratories, processing plants and certification systems have been established. However, there has been limited success according to the seed sector development review conducted in 2006. In view of the above situation and considering the important roles that public, private, formal and informal sectors can play in seed production and distribution, a national seed and plant programme is being proposed to facilitate seed and plant production, distribution and marketing. C. Strategy The programme will be promoted through the establishment of a new unit under the Department of Agriculture, which will take the lead role in creating an enabling environment, facilitating the development of seed and plant material and decentralizing the production and supply system through the formation of producer groups/associations. Private sector investment and involvement in seed and plant production shall be pursued. Seed health and quality shall be improved through proper training of the seed growers and putting in place seed inspection and certification system. The Seed and Plant Development Programme will not only ensure the timely supply of adequate quantity of quality seeds to farmers but will also strive to achieve variatal diversity to suit various agro-climatic zones. The seed distribution system shall be improved by strengthening the seed retailers/distributors at all levels (Dzongkhag and Geog) through training and incentives. MINISTRY OF AGRICULTURE 17 D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Quality and quantity Comprehensive Establishment of Seed and household cash of seeds and planting seed sector Plant Unit income increased materials supply development from Nu. 10,700 to increased from 2 % to strategy developed Development and above Nu. 35,000 50% of requirement Implementation of Strategy Capacity of private to enhance production Proportion of rural Availability and access and farmers‘ distribution and marketing households living in increased from 100 MT groups enhanced poverty reduced from to 600 MT of food crops and information Promoting seeds growers’ 30.9% to 20% and, fruit seedlings developed and made association from 200,000 to available 500,000 Development/review of clear cut specific crop promotion guidelines E. Management Arrangements Institutional Arrangements The Department of Agriculture shall be responsible for the overall execution, coordination and implementation of the programme in collaboration with the DSC and private and farmers’ groups. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Establishment of Seed and Plant Unit 7.000

2 Development and Implementation of Seed Sector Development 1.000 Strategy

3 Enhancing Production, Distribution and Marketing 8.000

4 Promoting private seed units and seed growers‘ associations 2.000

5 Seed vouchers (free seeds) during crop failures/disasters 2.000 Total 20.000 MoA/06: HORTICULTURE/CASH CROP DEVELOPMENT PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : Value of horticulture export increased from Nu.476 million per year to Nu. 900 million per year and Proportion of farmers engaged in horticulture export cropping increased from 10% to 25%.

18 Tenth Plan Document, Volume 2

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger. SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people living in poverty 01 by 2010; and SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor MINISTRY OF AGRICULTURE 5 Donor Agency :

6 Target Group : Cash crop growers 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 118.850 m

11 External Financing Required : Nu. 118.850 m 12 Executing Agency : Ministry of Agriculture (MoA) 13 Implementing Agencies : Department of Agriculture, Dzongkhags, Gewogs

14 Documents Available : Sector Tenth Plan B. Situational Analysis Horticulture and cash crop development provides real and significant opportunities for many small- holding farmers to enhance income levels and thereby break out of subsistence farming and escape rural poverty. Indications are that many of the households in Bhutan engaged in horticulture and cash crop cultivation are generally better off and enjoy higher incomes than those who are not. As such, enabling more households to participate in horticulture and cash crop cultivation represents a viable and appropriate strategy to help raise rural incomes and reduce poverty. The main crops included under the horticulture commodity development programme are citrus, potato, fruits and nuts, vegetable, and mushroom. All of these crops play a vital role in enhancing and ensuring household level income generation as well as strengthening food security and nutrition. Fruit tree crops such as apple, oranges and arecanut are important export items for the country and accounted for 93.27 percent of the 44,755 MT total fruit crops production in 2004. The total area under fruit tree crops is around 13,000 hectares. Potato is commercially grown in most parts of the country. The national average yield of potato is 4,593 kg/acre while the highest yield reported was 6,732 kg/acre. The major vegetable crops cultivated are chili, radish, turnip, potatoes, ginger, beans, broccoli, green leaves, cabbage, etc. The total harvested area under vegetables in 2004 was 24,605 acres with production of 78,043 MT. Although a diverse range of crops are grown, production remains limited as most crops are produced on a subsistence basis. Inadequate land resources for horticulture/cash crop development are a factor constraining commercial horticulture production and cash crop development. Additionally, the horticulture sub-sector is still faced with inadequate professionals/specialists for important and major cash crops. Concurrently, an inadequate resource for planned activities is another critical issue. The lack of adequate infrastructure such as post harvest facility, cool chains, storage, grading, etc. also needs to be urgently addressed. The existing credit and repayment system for horticulture/ cash crop development also does not address needs of farmers and exporters and needs to be modified and made more relevant. There is also the need to strengthen institutional linkages with external agencies in third countries. MINISTRY OF AGRICULTURE 19 C. Strategy The Triple Gem Approach of enhancing production, improving access, and targeted marketing shall be the overall guiding strategy for the horticulture commodity development programme. The greater market orientation of horticultural and cash crop farming, professional management of farm enterprises and integration of farm enterprises into the market constitute some of the important strategies for cash crop development. A variety of market mechanisms will be promoted such as the establishment or strengthening of local and commodity specifica agricultural market boards, cooperatives and self help groups to facilitate farmers access markets and secure better prices for their agricultural commodities. The promotion of contract farming be permitted and encouraged to help protect small holder farmers overcome existing market constraints, minimize transaction costs and enhance market access. The existing citrus farms that have been affected by citrus greening and other diseases will be rehabilitated. As facilitated by the Land Act 2007, horticulture development through lease arrangements shall be carried out. The conversion of private registered land for horticulture/ cash crop cultivation shall be promoted through appropriate incentives. For commercialization, the programme shall strengthen the existing linkages and explore new market and institutional linkages particularly with AMS and Post Harvest Programme. To promote specialized focus human resources requirement shall be incorporated in the HRMD plan. To improve the credit system, the programme shall reschedule repayment scheme in consultation with relevant financial institutions for fruit crops. D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Proportion of farmers Potato production increased Potato Development household cash engaged in horticulture from 47,399 MT to 75,000 MT Citrus Development income increased export cropping from Nu. 10,700 to increased from 10% to Citrus production increased Fruits & Nuts above Nu. 35,000 25% from 23,000 MT to 30,000 MT Development Proportion of rural Value of horticulture Acreage under vegetable Vegetable Development households living export increased from production increased from in poverty reduced Nu.476 million per year 18,592 to 30,000 acres from 30.9% to 20% to Nu. 900 million per year Mushroom Production Mushroom Development increased from 35 MT to 70 MT E. Management Arrangements Institutional arrangments The Department of Agriculture shall be responsible for the overall execution and coordination of the programme. The Dzongkhag and Gewog administrations will carry out the actual implementation of the programme. The Department shall collaborate closely with Research Centers, Agriculture Marketing Service Division, National Post Harvest Programme and other relevant stakeholders for provision of technical inputs in the implementation of the programme.

20 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 01

1 Potato Development 15.400

2 Citrus Development 40.000 MINISTRY OF AGRICULTURE

3 Fruits and Nuts Development 20.000

4 Vegetable Development 10.000

5 Mushroom Development 33.450 Total 118.850 MoA/07: ORGANIC/NATURAL AGRICULTURE A. Overview 1 Sector : Agriculture

2 Linkage to National : Synergizing Integrated Rural-Urban Development for Development Objectives & poverty reduction, food security and improved rural Strategies livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : Proportion of rural households adopting organic farming principles increased from 1.5% to 10% and area under certified organic agriculture increased from 150 to 300 acres

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty; SDG Goal 2: Halve proportion of people living in poverty by 2010; and SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor 5 Donor Agency :

6 Target Group : All farmers in potential areas 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013) 10 Indicative Capital Cost : Nu. 24.500 m 11 External Financing Required : Nu. 24.500 m 12 Executing Agency : Ministry of Agriculture (MoA) 13 Implementing Agencies : Department of Agriculture, Dzongkhags, Gewogs

14 Documents Available : National Framework for Organic Farming in Bhutan B. Situational Analysis Organic food is increasingly gaining popularity and more widespread in mainstream agriculture around the world with a growing global market. It therefore presents a significant growth market opportunity for agriculture. Organic crop cultivation further holds out the further promise of improving production yields and raising productivity while also helping promote better land use management and potentially mitigating biodiversity loss. MINISTRY OF AGRICULTURE 21 Organic farming is known to help improve soil conditions and land use management for small farms. It can also provide for a broader income base through diversification of crops. Besides, processing and marketing of organic agricultural products could also create new off-farm rural employment opportunities, especially when export markets can be accessed effectively. Organic farming in Bhutan is still in its infancy but there is a growing interest in developing this potential in Bhutan from both the Royal Government and farming communities. Generally though, there is within the country a lack of clearer understanding of what is defined as and encompasses “organic” and on the various processes that goes into certifying a product as organic. Many wrongly assume that just the absence of agro-chemicals in the cultivation of an agricultural product automatically qualifies it an agricultural product as organic which for most export purposes is not sufficient in of it itself. As there are no policies and systems that directly support the development of organic industry in the country to date, the DoA has developed a National Framework for Organic Farming in Bhutan to provide some guidelines and support for the growth of an organic industry. A National Organic Programme was also established under the Horticulture Division in 2006 and has been promoting organic agriculture in Bhutan. There is a dire need though to explore the prospects for marketing, market identification, research and development of market at national, regional and international levels. Besides the lack of policy on the organic industry, there is also an acute lack of personnel with technical knowledge and skills and proper information on organic farming. Under the programme, given the incipient stage of its development, shortage of staff is an issue. There is also the need for a holistic and integrated approach to organic farming development in Bhutan. The focus on community production in any potential area needs to be supported by strong research and development and extension systems. The dissemination of awareness on advantages of organic farming in terms of both livelihood support and income generation through a farming system’s approach based on good agriculture practices (GAP) must also be pursued. Protection, support and assistance to areas declared as organic, eg. in Gasa must be provided through appropriate incentives and support for organic agriculture. National standards must be developed and a system of regulation adopted to regulate the import and export of organic products. Marketing aspects with a national logo and forms of branding should be developed for marketing of organic products in Bhutan and in export markets. Capacity in these areas is poor and must be strengthened to create an enabling environment. The use of chemical fertilizers and subsidy must also be reviewed so as to re-appropriate subsidies to other areas of agriculture development. C. Strategy Organic/natural farming will be promoted on a pilot basis given the enormous advantage that the country enjoys in terms of its pristine environment and the global and regional recognition of this fact coupled with the naturally limited use of agro-chemicals in agriculture. Further, organic/ natural farming will also be expanded to sustainable cultivation of the medicinal and aromatic plants or MAPs. The following three pronged strategic approach will be adopted to cover potential development areas: • Promote organic/natural farming in rural areas where access to agrochemicals is limited or non-existent;

22 Tenth Plan Document, Volume 2 • Incorporate organic farming principles in existing farming practices to enhance sustainable land use for environmental protection and resource management; and 01 • Expand organic production approaches. The strategy will also be to develop a community or a group of producers with common interests MINISTRY OF AGRICULTURE who are fully supported with well planned/designed that takes into consideration the full value chain. Efforts will also be required to establish producer companies in pilot sites and effectively engage NGOs and the private sector to implement a few at least on a public–private partnership basis. The programme in collaboration with AMS will focus on market information and market development on organic products. The review of regional and international standards, consultation with relevant stakeholders and the framing of appropriate regulations will also be required to be done. The provision of subsidies on chemical fertilzers must also be reviewed and alternative incentives such as compost sheds, fencing materials and irrigation considered for provision. The programme shall provide focused support to pro-organic development in declared organic areas. D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Area under Policy related to organic Develop organic farming policy, strategy household cash certified organic development in place with and implementation plan income increased agriculture enabling environment and from Nu. 10,700 to increased from national logo for Organic Develop organic standards and above Nu. 35,000 150 to 300 Bhutan appropriate regulation (Participatory acres Guarantee System) accreditation and Research centres certification system with a national logo) Proportion and departments’ Proportion of rural of rural organic developed and Establish National Organic Programme households living households technologies as production (NOP) in poverty reduced adopting options generated from 30.9% to 20% organic farming Baseline survey for identified potential principles Potential production areas areas and initiate organic production increased from and markets identified and 1.5% to 10% supported Develop incentive led packages for organic farmers in rural areas Proportion of rural households trained and Establish appropriate infrastructure for adopting organic farming production, processing and packaging of principles increased from organic produce at the farm level 1.5% to 10% Market development for organic produce A well structured and facilitation organic industry from consumer, production, Finance/ credit/grants/subsidies technology back up, input supplies and services to HRD- capacity development processing, trading and exports is in place MINISTRY OF AGRICULTURE 23 E. Management Arrangements Institutional arrangments • A National Organic Programme (NOP) will be created within the Ministry of Agriculture with adequate staff and sufficient resources and representation from relevant sectors to take on the planning, development and advocacy functions required to advance the organic sector nationally. This office will have adequate access to all departments and agencies to address crosscutting issues based on farming systems. • The scope of activities for the NOP will include providing advice on research and development, adjusting/proposing government policies, developing and implementing and regulations, developing strategies to improve extension and advisory services to accommodate and support organic farming and improve consumer awareness about organic produce and products by interacting with the private sector and traders and markets and coordinate capacity building required for organic sector development. • The NOP will be guided and assist in programme planning with a team of Technical Working Group (TWG) consisting of focal persons from relevant agencies and departments. • An empowered Committee (EC) consisting of heads of selected agencies will provide overall development of the organic sector and major programme directions. Indicative Cost # Description of projects/Activities Indicative Cost (Nu. in million)

1 Development of national strategies and policies 1.000

2 Institution set up 9.000

3 Production and industry support 2.000

4 Research and Development 2.000

5 Market development and marketing chain 1.000

6 Education, awareness & information 8.000

7 Finance/ credits/grants/ subsidies 1.500 Total 24.500 MoA/08: NATIONAL MEDICINAL AND AROMATIC PLANTS PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : MAP cultivation expanded to around 15 Dzongkhags; Number of species under cultivation increased to 10. Number of farmers engaged in MAP cultivation doubled from 100 to 200.

24 Tenth Plan Document, Volume 2

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty, SDG Goal 2: Halve proportion of people living in poverty 01 by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor MINISTRY OF AGRICULTURE 5 Donor Agency : 6 Target Group : Farming Communities and traders 7 Scope : National

8 Status-Ongoing or new New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 40.450 m

11 External Financing required : Nu. 40.450 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Agriculture, Dzongkhags and Gewogs

14 Documents available : Sector Tenth Plan B. Situational Analysis The country’s vast topography harbors around 7000 different species of plants of which 600 species have been identified with medicinal properties. Of these identified species, almost 300 are in traditional use. With the introduction of a small traditional medicine dispensary in Dechencholing in 1968, Sowa-Rigpa made its formal advent into the national health system. The objective was to provide alternative health treatment and cures for people alongside modern medicine while also preserving, promoting and propagating the unique cultural & social traditions associated with Sowa Rigpa. The MoA initiated the cultivation of medicinal herbs and plants in collaboration with the Institute for Traditional Medicine Services (ITMS) in the late 1990s. The focus in the Tenth Plan will be to build a strong database system, improve the quality of medicinal materials, enhance production in terms of both species and acreage, expand marketing links and develop sustainable management practices. The popularity and widespread use of traditional medicines and the strong foothold with the establishment of indigenous medical units in nearly all dzongkhags, have given rise to a pressing demand for medicinal plant resources. This has raised concerns about the long term sustainability and conservation of medicinal plant resources and as such the conservation of medicinal plants with emphasis on sustainable collection regimes and formulation of management strategies has been accorded significant priority. The cultivation of medicinal plants initiated in the late 1990s has emerged as a successful and viable alternative farming venture for farmers. This has also helped ease the pressure on collection from the wild. To facilitate local communities’ access to medicinal and aromatic plants, there is a need to delineate clearly the rights of access to collect MAPs including the issuance of permits while at the same time ensuring the sustainability of these resources. The absence of realistic pricing guidelines for MAPs taking into account production costs has often resulted in unrealistic farm gate prices. One of the causes for unrealistic farm gate price and the incidences of mismatch between market and product is the clear lack of integrated product-market value chain. MINISTRY OF AGRICULTURE 25 In keeping with the objectives and the theme of the Tenth Plan, the programme will focus on rural poverty alleviation through increased rural income generation. The domestication and cultivation of medicinal plants will recieve strong priority in conjunction with the objectives of improved and increased crop diversification. The programme will also help develop organizational methodologies & systems for sustainable utilization of medicinal plants resources. C. Strategy The main strategies in the Tenth Plan will include improving cultivation packages for priority species, including post harvest handling and value adding through semi processing and new product development. The programme will, in collaboration with AMS identify markets for the cultivated and collected materials and help to provide maximum benefits to the farmers. The programme shall ensure to address the issue of access and permits through the new Forest Policy, revised FN & C Act and Rules, and developing implementing guidelines. Upon review of regional and international price structure on relevant MAPs and assessing the local costs of production, the programme shall develop a pricing guideline. Cultivation of MAPs with high returns to the farmers shall be promoted through lease arrangements on GRF land and by introducing them in the private lands. D. Results Framework Impact Outcome Output Projects/Activities Sustainable cultivation of MAPs Development of Proportion of rural Number expanded to at least 15 Dzongkhags sustainable collection & households living in of farmers cultivation packages for poverty line reduced engaged No. of MAP species under the priority species from 30.9% to 20% in MAP cultivation increased to 10 cultivation Value addition, product Mean annual rural increased 200 farmers trained in improved and development and household cash from 100 to Sustainable collection of MAP marketing income increased 200 from Nu. 10,700 to Improved MAP processing units Quality standardization above Nu. 35,000 established and certification, E. Institutional Arrangement Institutional arrangments The Department of Agriculture shall be responsible for the overall execution and coordination of the programme. The National Medicinal Aromatic plants Programme under the Department shall provide technical support in collaboration with the Research centers, Agriculture Marketing Services Division and Extension services for implementation by the Dzongkhags and Gewogs.

26 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 01

1 Germplasm management 1.100

2 Production Management and cultivation 2.000 MINISTRY OF AGRICULTURE

3 Product development of MAP 18.500

4 Infrastructure development 18.850 Total 40.450 MoA/09: INTEGRATED SOIL FERTILITY & SUSTAINABLE LAND MANAGEMENT PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : At least 30-40% of farmers practice sustainable land management; Land evaluation and land capability information available for making informed decisions;

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure Environmental Sustainability SDG Goal 1: Eradication of hunger poverty, SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor; SDG Goal 17: Acceptable level of forest cover; SDGGoal 18: Acceptable level of water and soil quality; and SDG Goal 21: Wetland conservation 5 Donor Agency : 6 Target Group : Farming Communities 7 Scope : Nationwide 8 Status- Ongoing or new : Ongoing/New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 266.000 m

11 External financing Required Nu. 266.000 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : National Soil Service Center, Dzongkhags and Gewogs

14 Documents Available : Sustainable Land Management Project, 2005; Sector Tenth Plan MINISTRY OF AGRICULTURE 27 B. Situational Analysis 69 percent of Bhutan’s population lives in rural areas, the vast majority of whom subsist on an integrated livelihood system of crop agriculture, livestock rearing, and use of different varieties of forest products. An average rural household owns 3.48 acres of land, which is often spread over different agro-ecological zones and altitudes. The rural landscape is highly susceptible to landslides, soil run-off and seasonal floods owing to its characteristic steep terrain, fragile geological conditions and heavy rains. In certain pockets, intensive land use has caused soil erosion, landslides and forest degradation resulting in depletion of soil fertility and overall land degradation. These changing landuse scenarios and its management practices are eroding mountainous ecosystems services. Loss of top soils, vegetation covers, frequent floods and land slides are some of the examples of resource erosions. An example of such a situation is observed in Radhi Gewog, where with an area of only 29 square km, around 10 percent of the land has been lost or rendered unproductive due to land degradation and landslides. There is a general understanding that anthropogenic factors such as overgrazing, deforestation, poor farming practices, poor soil and irrigation water management and indiscriminate development of infrastructure such as roads have contributed to the land degradation problem. The ecosystem services are now being disturbed mainly through events of land degradation that includes loss of top soils, landslides and flash floods. These events are triggered largely by removal of vegetative cover through deforestation and over grazing, poor management of agricultural land and water resources, and construction of infrastructures to meet the needs of growing population. This is a serious concern for Bhutan when the arable land is less than 8% of the total land, where more than 70% of the arable land is under dry land farming system, and urbanization is taking place at a rapid pace. On an average, a household cultivates less than two hectares of land. Any loss of soil or land from these sites would reduce crop yield in addition to adding massive sediment loads into rivers which are the sources of the country’s clean hydro energy. Several initiatives have been taken to combat land degradation such as, review of the 1979 Land Act, land management campaigns carried out in various parts of the country since 2005 and commencement of the Sustainable Land Management Projects. C. Strategy The Ministry of Agriculture is preparing a National Action Plan (NAP) in consultation with a wide range of stakeholders to identity the root causes of land degradation and its likely mitigation measures. It is expected that the most of the existing programmes such as land management, community forest management, rangeland management and water management would feature in this action plan though the key elements will be sustainable land management including soil conservation and management of land. The focus of the Integrated Soil Fertility & Sustainable Land Management Programme in the Tenth Plan will be on mainstreaming sustainable land management into government policies and plans. Strengthening database management & information, dissemination of information for extension workers, farmers, planners and policy makers shall be the key strategies adopted. Piloting and replication of effective application of sustainable land management practices and capacity building of the local communities will be pursued. The principles of sustainable land management and

28 Tenth Plan Document, Volume 2 integrated water resource management (IWRM) will also be increasingly used to guide natural resource management activities to increase food production and maintain healthy eco-system services in the plan period. 01 Efforts will be made to identify and map critical/vulnerable areas through production of soil fertility maps. This will help promote best practices for soil fertility management through developing and MINISTRY OF AGRICULTURE disseminating information on soil classification and land capability and promotion of integrated soil fertility management. The land use data of 1999 will also be updated for effective planning and management purposes. D. Results Framework Impact Outcome Output Projects/Activities Proportion of Increase arable Sustainable land Soil, Plant, & Water Sample Analysis rural households land productivity management practices living in poverty through adopted & capacity of Land Evaluation and Land capability line reduced from integrated stakeholders enhanced information made available 30.9% to 20% soil fertility management Land evaluation Soil Quality Assessment & Integrated Proportion of rural and land capability Fertility Management households living Policy decisions information available for below the poverty guided by Dzongkhags Sustainable Land Management line reduced from soil and land Capacity strengthened 30.9% to 20% information National Land through enhanced studies Management Strategy Preparation of National Action food security developed and Programme for Land degradation implemented E. Management Arrangements Institutional arrangement The Ministry of Agriculture shall be the overall execution and coordination agency for the Programme. The National Soil Service Center under the Department of Agriculture shall be main agency for the implementation of the Programme in collaboration with the Dzongkhags and Gewogs. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Soil, Plant, fertilizer and Water Sample Analysis 5.000

3 Sustainable Land Management Project 245.000

4 Mainstreaming of sustainable land management 16.000 Total 266.000 MINISTRY OF AGRICULTURE 29 MoA/10: RURAL ACCESS PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction and improved rural livelihoods through enhanced rural access to markets and socio-economic services.

3 Expected Results : Proportion of rural population living more than 1 hour’s walk from motorable road head reduced from 40% to 20%

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty ; SDG Goal 2: Halve proportion of people living in poverty by 2010; SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor; SDG Goal 4: Ensure a robust pro-poor growth process; and SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups 5 Donor Agency :

6 Target Group : Remote Gewogs and Villages 7 Scope : National 8 Status – Ongoing or new : Ongoing/new 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 516.090 m

11 External Financing required : Nu. 516.090 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Department of Agriculture, Dzongkhags and Gewogs

14 Collaborating Agencies : Ministry of Works and Human Settlement

15 Documents Available : Sector Tenth Plan B. Situational Analysis Rural access is widely acknowledged in Bhutan by policy makers and rural communities as a highly essential and critical intervention for poverty alleviation and broad based development. Without adequate rural access, many development initiatives in of themselves provide marginal returns. Improving rural access through farm roads and power tiller tracks however constitutes an enormous challenge given the rugged terrain and scattered settlements of the rural population. The construction of farm roads and power tiller tracks was given high priority during the Ninth Plan as it was seen as an important strategy to raise living standards through enhancing rural accessibility. During the Ninth Plan, approximately 800 km of farm road and 173 km of power tiller tracks have been constructed. As a result, the proportion of rural households located within a distance of an hour‘s walk has decreased from 58 percent in 2000 to 40 percent in 2005. According to the Vulnerability Assessment and Mapping study carried out by the Ministry of Agriculture and World Food Programme in 2005, 37% of the Gewogs falling under the most vulnerable category

30 Tenth Plan Document, Volume 2 emphasized that improvement of road accessibility would reduce food insecurity in their Gewogs. Keeping in line with the Tenth Plan goal of poverty reduction, the sector‘s objective is to reduce the proportion of population living beyond one hour’s walk from a motorable road-head to 20%. 01 The construction of 63 km of farm roads in the 6 eastern Dzongkhags will be funded under the Agriculture Marketing Enterprise Promotion programme (AMEPP) during the Tenth Plan. The MINISTRY OF AGRICULTURE programme shall, taking environmental concerns among other factors into consideration, improve the quality & design of roads constructed. Clear and relevant policy in farm roads development must be adopted and pursued. There is a need to better handle the clearance procedures in terms of certification/clearance by different/relevant agencies. C. Strategy The key strategy of the sector in the Tenth Plan shall be the construction of farm roads and power tiller tracks in the rural areas, which will be guided by the Rural Access Master Plan. This plan will be based on the Dzongkhag Rural Access Planning (DRAP) reports. DRAP is finalized in 12 Dzongkhags and the reports on the remaining 8 Dzongkhags will be completed by August 2008. In order to expedite the process, the Department of Agriculture shall out-source some of the survey, design and supervision of the constructions. This is also to lessen the work burden on the already-overstretched Dzongkhag Engineering Sector. The ultimate expectation is the improvement in quality of roads designed and constructed by outsourcing some of the survey, designs and supervisions of constructions while backstopping to ascertain acceptable standards, environmental friendly techniques for road construction. The Central Machinery Unit located in Bumthang will provide technical backstopping through the provision of earth moving machineries at subsidized rate. The most important approach is to have a very clear and relevant policy for farm roads development. Such a policy would help ensure that all Gewogs and Dzongkhags follow a clear, transparent and consistent screening and prioritization process. The policy must also have clear directives on construction of bridge and maintenance of roads constructed. Maintenance of roads will be given due priority to ensure their long term sustainability. Specific standards/specifications of different roads and maintenance policy with clear roles and responsibilities of different agencies/communities shall be specified in collaboration with the Department of Roads taking into consideration the realistic capacity of the community. The implementing agencies will be adequately backstopped to ascertain that the roads are constructed to acceptable standards and environmental friendly techniques are applied. To support construction of farm roads, CMU will maintain a pool of machinery equipment so that infrastructure work beyond the capacity of outsourced agencies can be taken up without delay. Timely clearance for rural access activities shall be ensured by streamlining the procedure in consultation with relevant certification/clearance agencies. MINISTRY OF AGRICULTURE 31 D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Proportion of Farm road and PTT Development of Farm Roads household cash income rural population Maintenance Policy and PTT maintenance policy increased from Nu. living more than in place 10,700 to above Nu. 1 hour‘s walk Outsourcing of Farm Road 35,000 from a motorable FR and PTT Survey, Design & Supervision road head survey, design Works Proportion of rural reduced from and supervision households living below 40% to 20% outsourced Purchase of Non-destructive the poverty line reduced Testing Equipment & from 30.9% to 20% 750 Kms of FR Procurement of Aerial Photos/ through enhanced food constructed using Maps security CMU machineries (Baseline 250 Kms) Strengthening of CMU, Bumthang E. Management Arrangements Institutional arrangements The overall coordination and execution of the Programme shall be carried out by the Department of Agriculture. Although construction of the farm road and power tiller tracks are carried out by the Dzongkhags and Gewogs, the Department in collaboration with Central Machinery Unit (CMU), Bumthang will continue to provide technical support, design, supervision and quality control. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Purchase of Non-destructive Testing Equipment, Procurement of 1.100 Aerial Photos/ Maps

2 Outsourcing Farm Road Survey, Design & Supervision Works 9.200

3 Farm Road & Power Tiller Track Maintenance Policy 1.000

4 Machinery support for farm roads construction 61.900

5 Construction of Farm Roads (Spillover) 442.890 Total 516.090 MoA/11: FARM MECHANIZATION PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National : Synergizing Integrated Rural-Urban Development for Development Objectives & poverty reduction, food security and improved rural Strategies livelihoods through farm mechanization

3 Expected Results : Out-reach farm machinery services extended to gewog level.

32 Tenth Plan Document, Volume 2

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger; SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty 01 by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor MINISTRY OF AGRICULTURE SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency : 6 Target Group : Farming Communities 7 Scope : National 8 Status- Ongoing or new : Ongoing 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 60.696 m

11 External financing required : Nu. 60.696 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Department of Agriculture, Agriculture Machinery Center, Dzongkhags and Gewogs

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Agriculture Machinery Center (AMC) was established in Paro in 1983 with the objective to promote farm mechanization in Bhutan. Three more regional centers were established later at Khangma, Bhur and Bajo to extend agricultural machinery service coverage to remote farming communities. Since its establishment in 1983, the AMC has successfully established more than 6,000 small agro-based enterprises in the country such as rice mills, flour mills, oil mills and power tillers. Such labor saving machinery and equipment have served to ease the life of the farming community. The demand for labor saving technological devices is quite high and various promotional events and activities advocating this are being carried out. Even as no formal assessments have been carried out to support this, it is known that farm mechanization has helped address the shortage of farm labor to a large extent and reduced the drudgery and backbreaking nature of farm work. Farm Mechanization probably is inevitable and will continue to play a pivotal role during the Tenth Plan and in the long term given the emphasis on expanding the commercial orientation of agriculture. With the limitation on employment in the civil service, the provision of agriculture services though will increasingly become difficult. The focus of the Farm Mechanization programme will therefore be directed at supporting entrepreneurs who will provide such services to individual farmers. On the other hand, the AMC will also extend the outreach of farm machinery, equipment and tools to more remote areas, provide timely and quality back up support for installation, repair and maintenance and continue to conduct research on innovative and appropriate farming technologies. The approach will also be to strengthen the private sector in the manufacture and development of farm machines. MINISTRY OF AGRICULTURE 33 C. Strategy In the Tenth Plan, the AMC will continue to pursue the promotion of labor saving technologies as in the past basically in a holistic manner, i.e. carry out all the supporting activities such as making available the quality and appropriate technologies, providing back-up support services, training and carrying the research and development. Currently the Japanese Assistance for farm mechanization as KR-II Grant and Technical Assistance Project are substantial and will continue to play an important role throughout the Tenth Plan period and beyond. However, efforts are simultaneously being made to make farm mechanization activities self sustaining in the long term by developing indigenous technologies. In view of high demand for certain subsidized farm machinery, the programme will study and review the provisions of subsidy on farm machineries. With the intention to reach out to the more vulnerable and remote rural areas in providing timely and quality back-up farm mechanization support services, the Farm Mechanization programme will establish Gewog Machinery Centers in five Gewogs and eighteen private agricultural rural workshops. An important strategic aspect will be to strengthen the involvement of Farmers’ groups, associations and cooperatives and private enterprises dealing in farm machinery and related services. Efforts will be made to build the capacity of such groups to enable them to provide reliable services to farmers when required and develop appropriate storage structures. While the AMC will continue to support the individual farmers, the emphasis will be to support the groups, communities and individuals who in turn will provide services to the farmers in their localities. Training the Gewog extension and farmers’ groups on machine installation, repair and maintenance shall be pursued. D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Farm labor Sustainability of farm Strengthening R&D household cash income shortage machineries enhanced increased from Nu. addressed to a Inspection and Quality 10,700 to above Nu. large extent Safe and quality services Control 35,000 ensured Capacity Building Proportion of rural Capacity of end users enhanced households living below Enhancement of Outreach the poverty line reduced Outreach of farm machinery Services from 30.9% to 20% services extended to Gewog level Infrastructure Development E. Management Arrangements Institutional arrangements The Department of Agriculture shall be responsible for the overall execution and coordination of the programme. The AMC through its regional centers will play a key role in enhancing outreach services and building capacity of all end-users.

34 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 01

1 Enhancement and sustainability of farm machinery 23.360

2 Inspection and Quality Control 4.061 MINISTRY OF AGRICULTURE

3 Improving efficiency and effectiveness of farm technology 3.828

4 Enhancement of Outreach/support Services 28.750

5 Supply and distribution of revolving farm machinery 0.697 Total 60.696 MoA/12: EXTENSION COORDINATION AND INFORMATION MANAGEMENT PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for poverty Objectives & Strategies reduction, food security and improved rural livelihoods from enhanced agricultural extension services

3 Expected Results : Commodity production focused based on suitability and economic potential of areas through mapping of potential production sites, data generation and publications; and sixteen technologies on different management and production aspects generated & applied in field.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger. SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency : 6 Target Group : Farming communities 7 Scope : National 8 Status – Ongoing or new : New

9 Timeframe : 2008-2013

10 Indicative Capital Cost : Nu. 12.000 m

11 External Financing Required : Nu. 12.000 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Department of Agriculture

14 Documents Available : Sector Tenth Plan B. Situational Analysis Commodity extension has a definite goal with focus approach in collaboration with and participation of all the relevant stakeholders targeted towards achieving production increase within a given period of time having linked to access and markets. In the Tenth Plan, attempt will be to refine extension services addressing location specific potentials and constraints to enhance households and national food security and income. MINISTRY OF AGRICULTURE 35 C. Strategy The programme strategies for the Tenth Plan will be to harmonize, rationalize and link research and extension services with relevant agencies, and facilitate commodity development approach through effective field demonstration and capacity building process. The agricultural extension policy has been reviewed and re-formulated with an objective to re- vitalize the extension services for enhancing the delivery of services. Based on past experiences and lessons learnt, the following strategic activities will be pursued: • Review agriculture diploma curriculum of CNR in consultation with the technical departments of the MoA; • Develop proper supervision and monitoring system for Departments and Dzongkhags; • Ensure availability of proper extension materials; • Equip all geog RNR centers adequately with equipment and materials required for providing required extension services; • Adopt and institute a reward and penalty system based on performance of the field staff to improve performance and service delivery; • Develop and endorse clear guidelines for deployment, placement and transfer of extension staff; • Develop clear and agreed terms of reference for extension staff; • Establish extension division in technical departments to improve the coordination of extension activities including supply of inputs; • Institute a system of a regular supervisory contact between extension staff and their supervisors; and • Link research activities to extension services and vice-versa. D.Results Framework Impact Outcome Output Projects/Activities Mean annual rural Commodity production Farmers adopt scientific Collection of data and household cash based on suitable farming practices publications income increased production areas through from Nu. 10,700 to mapping of potential Functional farmers Capacity building and above Nu. 35,000 sites, data generation and group established with awareness publications clear mandates and Proportion of rural responsibilities Development of households living 16 technologies on different extension materials below the poverty management and production line reduced from aspects generated and Supply of extension 30.9% to 20% applied in the field tools and equipment

36 Tenth Plan Document, Volume 2 E. Management Arrangements Institutional arrangments 01 The Department of Agriculture shall be responsible for the overall execution, coordination and implementation of the programme in collaboration with other agencies, Dzongkhags and MINISTRY OF AGRICULTURE Gewogs. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Information generation and management 2.000

2 Farmers training and extension materials 6.000

3 Technology Transfer and Community Development 4.000 Total 12.000 MoA/13: FEED & FODDER DEVELOPMENT PROGRAMME A. Overview 1 Sector : Livestock

2 Linkage to National Synergizing Integrated Rural-Urban Development for poverty Development Objectives & : reduction, food security and improved rural livelihoods through Strategies enhanced livestock development

3 Expected Results : Land brought under improved pasture development increased by 20%, from 3864.5 acres 2006/07 level to 4636.92 acres by 2013

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger and MDG Goal 7: Ensure environmental sustainability. SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency : 6 Target Group : Farmers rearing livestock 7 Scope : Nationwide 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 23.076 m

11 External financing required : Nu. 23.076 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Livestock, Dzongkhags and Gewogs

14 Documents Available : Sector Tenth Plan MINISTRY OF AGRICULTURE 37 B. Situational Analysis Livestock plays a vital role in the agricultural and rural economy of Bhutan, particularly in the context of the livelihoods of rural farming communities. Not only do they produce food directly for self consumption and sale, livestock also provide key inputs to crop agriculture. Many farms in Bhutan are also too small to justify owning or using a tractor and often the alternatives are animal power or human labor. Moreover, livestock for most small holder farmers provide a ready source of income to help purchase the necessary inputs for crop production such as seeds and fertilizers. As such livestock rearing for farmers in Bhutan contributes to multiple livelihood sources and offers viable pathways out of poverty. Additionally, it is an indispensable asset of rural farming communities and a core aspect of their human capital as it notably impacts on their health and nutritional well being. As of 2005 the total livestock population was 664,452 of which 338,847 or 51% comprise cattle population (Department of Livestock Bulletin, 2007). More than three fourths of all households in Bhutan also own cattle. Given this context, an important programme since the 1980s has always been the feed and fodder development programme. Significant efforts have been made in the areas of fodder germplasm production, improvement of nutrition and feed mills, development of rangelands, etc. However, the skewed distribution of pasture land must be effectively addressed in the light of the enabling provisions under the Land Act 2007. There is also the urgent need to increase improved pasture coverage to address shortage of feed and fodder, particularly during the winter. The poor quality of feed also remains a critical issue. To date, fodder germplasm (seeds & seedlings) are distributed with full subsidy to farmers. The introduction of improved pastureland is yet to make an impact in terms of coverage and only 1.7 percent of households have improved pasturelands. C. Strategy Research on better and improved varieties of feed and fodder, improved technological packages, alternative sources and integration of fodder production with horticultural development will be carried out in the Tenth Plan under the Feed and Fodder Development programme. In addition, based on findings from pilot studies, the Department shall promote leasing of Government reserved land for improved pasture development and initiate appropriate measures to improve rangeland management in high altitude regions. Improved pasture production will also be actively encouraged in private land to enhance production. Access to fodder germplasm for farmers will also be improved by upscaling establishment of fodder germplasm banks and building capacity of farmers in fodder germplasm production. There is the need to conduct research on new improved fodder species and scale up existing fodder germplasm banks. The National Tsamdro and Grazing Management Policy and strategies will be finalized and implemented. The revitalization of animal nutrition and feed mills shall also be taken up in the Tenth Plan. Micro feed mills will be established in potential areas and farmer’s groups will operate and manage them. In order to improve the feed quality, the programme shall review the existing centralized system of tendering and make necessary improvements. The livestock information and database management will also be strengthened.

38 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 01 Mean annual Land brought under National grazing Rangeland management and MINISTRY OF AGRICULTURE rural household improved pasture resource development cash income development management policy increased from increased by 20% and strategies Leasing of government land for Nu. 10,700 to from 3864.5 acres implemented improved pasture development above Nu. 35,000 to 4636.92 acres by

2013 Pasture Development in private & Proportion of New fodder government lease land rural households Farmers adopt species adopted living below improved by 20%, from 3208 Fodder germ-plasm production, the poverty line technologies to farmers (2006/07) distribution and quality control reduced from enhance feed and to 3849.6 farmers 30.9% to 20% fodder development by 2013 Infrastructure development Animal Nutrition and Feed Mill E. Management Arrangements Institutional arrangements The Department of Livestock shall be responsible for the overall coordination and execution of the programme. The National Feed and Fodder Development Programme under the Department shall provide technical inputs for implementation at the Dzongkhag and Gewog levels. The programme will be implemented in close coordination with the research and extension services in the promotion of feed & fodder development. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Pasture and Fodder Development 2.850

2 Animal Nutrition and Feed Mill 2.328

3 Rangeland Development 1.258

4 Infrastructure Development 13.250

5 Agri machineries, general tools, office equipment and 3.390 professional services Total 23.076 MINISTRY OF AGRICULTURE 39 MoA/14: LIVESTOCK HEALTH & LABORATORY SERVICES PROGRAMME A. Overview 1 Sector : Livestock

2 Linkage to National : Synergizing Integrated Rural-Urban Development for poverty Development Objectives & reduction, food security and improved rural livelihoods from Strategies enhanced livestock development

3 Expected Results : Reduction in loss of livestock from diseases by (1.2%) from 17913.6 numbers of death in 2005 to 13779.4 numbers of death by 2013. Number of farmers adopting stall feeding increased by 10%

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger; SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency :

6 Target Group : Livestock rearing households 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 145.490 m

11 External Financing : Nu. 145.490 m Required 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Livestock, Dzongkhags and Gewogs

14 Documents Available : Sector Tenth Plan B. Situational Analysis Livestock health services play a vital role in livestock development. With the increase in exotic crossbreeds, the livestock population is becoming more susceptible and vulnerable to diseases. This is further compounded by the increasing threats of trans-boundary diseases such as avian flu, rinderpest, etc. Currently there are four regional veterinary laboratories at Gedu, Gelephu, Bumthang and Khaling. Each of the regional laboratories caters to the nearby Dzongkhags and central farms. During the Ninth Plan, a total of 66,962 samples were tested and clinical services were provided to peri-urban farmers. Case studies and research were also carried out on the warble problems in Laya and Paro, tuberculosis and mastitis survey in Thimphu and sero-surveillance for bird flu in the country. Due to the systematic monitoring and purposive sero-survey exercise, the country was conferred the status of “free from Rinderpest” in 2005 a significant achievement of the disease prevention and control programme. There is still immense need to strengthen animal health services. Diseases such as Zoonotic, Foot and Mouth, Gid and Rabies, Avian Influenza, etc. will continue to be a major threat to livestock health and development. Basic standard materials & equipments to carry out livestock extension

40 Tenth Plan Document, Volume 2 health and laboratory activities continue to be inadequate in the gewog centres. There is also a need to strengthen both clinical and epidemiological animal health services and infrastructure. 01 C. Strategy MINISTRY OF AGRICULTURE During the Tenth Plan, the programme shall strengthen the existing infrastructure facilities, services, management and HRD to enhance efficiency, effectiveness and timely delivery of animal health services to rural communities, particularly in remote areas. The creation of Disease Free Zones (DZFs) regarding livestock diseases like FMD, rabies, etc are to be initiated. In order to improve and increase the animal health coverage and accessibility in remote areas, community animal health workers will be trained and necessary equipment, knowledge and skills provided. Additionally, other outreach programmes such as the mobile veterinary clinic and establishment of veterinary outpost clinic are to be carried out. The basic materials & equipments required for extension health and laboratory activities at the Gewog Centers will be supplied under the programme and such supplies will be effectively monitored and inventoried. A more effective coordination mechanism between the National Center for Animal Health (NCAH), Regional Veterinary Laboratories (RVL), Dzongkhag Field Units and the Gewog Extension Services, and Bhutan Agriculture and Food Regulatory Authority (BAFRA) in terms of disease surveillance and regulatory measures shall be established. The responsibility of the various national focal points for disease prevention, vaccine production and distribution and clinical services need to be clearly spelt out and will be undertaken. D. Results Framework Impact Outcome Output Projects/Activities Mean annual Reduction Reduced Disease prevention & control rural in loss of incidence household livestock from of diseases Veterinary Epidemiological services strengthened cash income diseases by outbreak by increased from 1.2% from 20% Vaccine Production, Procurement & Distribution Nu. 10,700 17913.6 to above Nu. deaths in Modality on Clinical and Laboratory Services 35,000 2005 to Disease Free 13779.4 Zones creation Regional Veterinary Laboratory Services Proportion of numbers of put in place rural households death from National Animal Hospital out-reach programme living below disease in Nos. of animal the poverty line 2013 health workers Training of Community Animal Health Workers reduced from trained 30.9% to 20% Infrastructure development Provision of livestock health services to the rural areas E. Management Arrangements Institutional arrangements The Department of Livestock shall be the overall execution and coordination agency for the Programme. The National Center for Animal Health under the Department as an apex body for livestock health, shall provide technical inputs through the network of Regional Veterinary MINISTRY OF AGRICULTURE 41 Laboratories, Dzongkhag field units, national focal points for disease prevention and control, vaccine production and distribution, national referral veterinary laboratory, clinical services, clinical research and extension coordination. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu in million)

1 National Centre for Animal Health (Serbethang) 43.480

2 Regional Livestock Development Centre (Tsimasham) – provide 11.500 livestock health, breeding, feed and fodder and other allied services

3 Regional Livestock Development Centre (Wangdue) – provide 21.032 livestock health, breeding, feed and fodder and other allied services

4 Regional Livestock Development Centre (Zhemgang) – provide 11.500 livestock health, breeding, feed and fodder and other allied services)

5 Regional Livestock Development Centre (Khangma) – provide 11.500 livestock health, breeding, feed and fodder and other allied services

6 National Animal Hospital, Langjophakha, T/phu-Provision of clinical 44.580 veterinary Services

7 Livestock Central store, P/ling- renovation and fencing 1.900 Total 145.490 MoA/15: LIVESTOCK BREEDING AND INPUT SUPPLY PROGRAMME A. Overview 1 Sector : Livestock

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods from enhanced livestock development

3 Expected Results : Livestock productivity enhanced from 1.9 kg milk/day/ animal (baseline 2007) to 2.185kg milk/day/animal by 2013. 85% of livestock input demand met through in-house capacity.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger; SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency :

6 Target Group : Farmers rearing livestock 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 146.670 m

42 Tenth Plan Document, Volume 2

11 External Financing Required : Nu. 146.670 m

12 Executing Agency : Ministry of Agriculture 01 13 Implementing Agencies : Department of Livestock, Dzongkhags and Gewogs

14 Documents Available : Sector Tenth Plan MINISTRY OF AGRICULTURE B. Situational Analysis The crossbreeding programme for cattle as well as other species began in 1985. The breeding programme was supported through the establishment of farms across the regions. Currently, there are two exotic cattle farms, two Mithun farms, one Nublang farm, three pig breeding centers, three poultry farms, one sheep farm, one horse farm and two fish culture farms located in different parts of the country. The improved breed bulls from these farms are the main sources of input supply for cattle breeding in the villages. This is further supported through artificial insemination services. Although the percentage of improved livestock breeds as a share of total remains quite low at present, there is good potential and increased demand for improved breeds in the peri-urban areas and for crossbreed of Siri and Mithun in the rural areas. Under the current scenario, most of the infrastructure of government farms requires either major renovation or re-designing. Further, the quality of feed needs improvement as the existing centralized system of tendering has not been very effective in improving the quality of feed to enhance livestock production. Additionally, the viability of existing breeding farms is compromised due to existing management and operations system which are geared more towards meeting social objectives rather than fulfilling economic priorities. The national livestock identification and recording system must be reviewed and modernized to facilitate useful information database. The inventorying of information could also be designed to achieve uniformity and scope for periodical updates to incorporate pertinent changes in livestock population and relevant dynamics. C. Strategy In view of the constraints highlighted above and to ensure adequate input supply for improving livestock production in rural areas, the strengthening of farm infrastructure and diversification of farm activities will be given priority in the Tenth Plan. Farm infrastructure development shall focus on introducing appropriate designs while revamping the existing ones and constructing additional facilities. Business and management systems will be introduced in the farms to enhance their economic viability and preparae them for privatization in the long term. The existing livestock breeding policy and strategy will be reviewed and standard codes of practice will be developed to enhance productivity. The adoption and dissemination of standard codes of practice in private farms to enhance productivity shall be initiated and shall include the dairy farm record keeping, livestock inventory and other modern methods of dairy farming. The production of breeding stock through contract farmers will be promoted and the design and implementation of IMS undertaken. More livestock input generating farms also need to be established at strategic locations for easy generation and distribution to client districts and farms. For example, a fish seed production centre will be established at Sonamthang in Samdrupjongkhar to cater to the increased meat demand of the Dzongkhag and six eastern dzongkhags. Currently all fingerlings are supplied from Gelephu and this supply is often hampered by militant insurgencyand law and order situation in Assam. MINISTRY OF AGRICULTURE 43 D. Results Framework Impact Outcome Output Projects/Activities Mean annual rural Livestock Improved breed supply Systematic cross- breeding household cash productivity increased by 25% programme in place income increased enhanced from from Nu. 10,700 to 1.9kg milk/day/ Supply of high performing above Nu. 35,000 animal (baseline National cattle identification and adaptive breed 2007) to 2.185kg and recording system Proportion of rural milk/day/ animal by developed Improved database households living 2013 management system below the poverty Farmer’s managed input line reduced from production unit supported Supporting establishment 30.9% to 20% Livestock cross of farmer managed breed population Nublang farm strengthened livestock Input production increased by 25% unit Native Breed Conservation programme developed Enhancing productivity of government farms E. Management Arrangements Institutional arrangements The Department of Livestock shall be responsible for the overall execution and coordination of the programme, particularly for carrying out policy reviews and development of database and management system. The implementation of the programme will be carried out in collaboration with the Dzongkhags and Gewogs. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Livestock Breeding 20.790

2 IMS and M & E 5.450

3 Livestock Input Supply 120.430 Total 146.670

44 Tenth Plan Document, Volume 2 MoA/16: LIVESTOCK PRODUCTION PROGRAMME 01 A. Overview 1 Sector : Livestock MINISTRY OF AGRICULTURE

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods from enhanced livestock development

3 Expected Results : Value of livestock production increased from Nu. 550 million to Nu. 600 million per year Increased dairy production from 7179 MT (baseline 2007) to 7897 MT by 2013 Increased meat (poultry, pork, beef and fish) production from 2001.7MT (baseline 2007) to 2202 MT by 2013.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger; SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency :

6 Target Group : Prospective individuals and community based groups 7 Scope : National

8 Status- Ongoing or new : Ongoing 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 442.640 m

11 External Financing Required : Nu. 442.640 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Department of Livestock, Dzongkhags, Gewogs

14 Documents Available : Sector Tenth Plan B. Situational Analysis Livestock products in Bhutan include mainly dairy products, meat, wool and eggs. In 2005, 19,927 MT of milk, 1,649 MT of pork, 547 MT of beef, 151 MT of chicken and 5.39 million eggs were produced (Dept of Livestock, 2007). Livestock production has contributed significantly to food security and the notable improvements in the nutritional status of the rural population. However, due to land scarcity and the lack of adequate labour and capital investments, livestock production has not grown as rapidly as it could. A large share of the national consumption of livestock products is still imported. According to the Bhutan Agriculture and Food Regulatory Authority (BAFRA), import of livestock products amounted to 6,253 MT of beef, 3,469MT of pork, 781,341 cartons of eggs and 2,134,730 liters of milk between 2000 and 2005. There is thus considerable potential for expanding livestock production beyond subsistence levels in view of the sizeabole demand within the domestic market, particularly in peri-urban areas and certain districts. In view of this potential for enhancing both income generation capacity and the nutritional and dietary status of the population, the programme will continue to focus on creating an enabling environment to boost livestock production. MINISTRY OF AGRICULTURE 45 However, there are significant constraints in furthering livestock development which needs to be addressed. Inadequate access to land resources for pasture development inhibits growth in livestock production which is further exacerbated by the weak marketing network and mechanisms that are still underdeveloped and inefficient. Information management of livestock production within the country is also weak and needs to be strengthened. C. Strategy The key strategy for the programme will be to adopt an integrated approach for livestock production with clear linkages between production, processing and marketing initiatives. Therefore all other related interventions like feed and fodder, livestock breeding, livestock health, etc., will be geared towards increasing livestock production and productivity. A master plan for developing each commodity will be formulated for effective and efficient implementation. Private-public partnerships will also be promoted actively as a major platform to increase production and productivity, processing, value addition and marketing of livestock products. There is a need to promote improved technologies through subsidies. Under the programme, activities will be conducted to study and introduce product and market chains for farmers to take up planned livestock production activities. The potential of livestock production in peri-urban areas with comparative market advantage shall be further developed. The diversification of farm activities, particularly in southern Bhutan such as fishery, piggery and poultry will be encouraged and assistance provide in facilitating the formation of farmer’s groups, associations or cooperatives. Trainings are also to be conducted on product processing, diversification and marketing. The establishment of appropriate processing units for livestock products shall also be supported and farmers trained to adopt standard codes of practice on livestock production record management. The imposition of restrictions in meat production and marketing on auspicious periods has proved a constraint to the further development of the livestock sector and the removal of such restrictions will be reviewed. The stall feeding of cattle will be promoted in order to reduce grazing pressure on natural forest/ rangeland, alongside pursuing more efficient use of improved pasture resources. However, this will depend on the availability of government land on lease for improved pasture development. The programme shall coordinate with Feed and Fodder Development Programme on pasture development and provide support in terms of supplying machinery, equipment and technology. Backyard farms and processing plants will be established and farmers trained on improved backyard management practices. Providing access to market for livestock products and the formation of farmers groups will be employed as major strategies to boost livestock production in rural areas. Proper information management and data generation of livestock production shall be maintained within the IMS system of the Department of Livestock and will help generate necessary policy interventions to encourage domestic sales and exports. The lessons and experiences from the the Samthang fishery community development project in Wangduephodrang will be analysed and the beneficial poverty alleviating aspects appropriately replicated in other other poor communities. A generic pro-poor livestock development framework will be formulated accordingly and implemented to address poverty alleviation. This will target the poorest of the poor and concentrate on improving livelihoods of marginal communities in remote areas.

46 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 01 Mean rural Value of livestock Increased dairy Strengthening Livestock Development MINISTRY OF AGRICULTURE household cash production production from Initiatives income increased increased from 7179 MT (baseline through livestock production, from Nu. 10,700 to Nu. 550 million to 2007) to 7897 MT processing and marketing above Nu. 35,000 Nu. 600 million per by 2013 year Establishment of farmers groups and Increased meat associations Proportion of rural (poultry, pork, households living beef and fish) Development of public-private below poverty production from partnership initiatives reduced from 2001.7 MT 30.9% to 20% (baseline 2007) to Training on production and processing

2202 MT by 2013 Replication of Pro poor activities for

9 Dairy groups livestock enterprises development formed and trained based on Samthang experiences E. Management Arrangements Institutional arrangements The overall coordination and execution shall be carried out by the Department of Livestock. The various livestock divisions and agencies under the Department shall provide all supportive services required by the Dzongkhags and Gewogs in the implementation of the programme and towards this, focal person from each service providing agencies will be identified with clear roles and responsibilities. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Dairy Production –Milk Processing 120.950

2 Piggery Processing Centre 115.000

3 Poultry Processing Centre 51.000

4 Fishery (Community Farms) 86.000

5 Goat farm (Community Farms) 8.600

6 Sheep (Community Farms) 7.200

7 Equine (Community Farms) 1.700

8 Infrastructure (DVH + RNR EC + NLBP) 52.150 Total 442.640 MINISTRY OF AGRICULTURE 47 MoA/17: TARGETED HIGHLAND LIVELIHOOD SUPPORT PROGRAMME A. Overview

1 Sector : Livestock

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction, food security and improved rural livelihoods through enhanced livestock development.

3 Expected Results : Increased dairy (yak) production by 20%.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger. SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 4: Ensure a robust pro-poor growth process 5 Donor Agency :

6 Target Group : Rangeland communities in high altitude areas 7 Scope : National

8 Status- Ongoing or new : Ongoing on trial basis 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 34.760 m

11 External Financing Required : Nu. 34.760 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Department of Livestock, Dzongkhags, Gewogs, Communities & Private sectors

14 Documents Available : Sector Tenth Plan B. Situational Analysis Given the remoteness and distant isolation of many highland communities in the northern regions of the country and the particular access difficulties in providing basic socio-economic services and facilities, these communities have had limited benefit from mainstream development. This has necessitated a varied development approach in launching a targeted highland livelihood support programme that promotes sustainable rural livelihood prospects for yak herders in high altitude areas. Rangeland communities in the highland areas of Bhutan still continue to rely on traditional methods and technology for dairy processing and treating sick livestock. These communities also depend on highly inefficient and laborious dairy processing methods and expend considerable effort and time in gathering energy resources such as fuelwood for heating and cooking. This severely limits the efficient and more rational use of time for more productive pursuits. Moreover, yak herding is also increasingly becoming less attractive among the younger generation of these communities due to the drudgery and extremely hard work entailed. It is highly likely that unless appropriate measures are undertaken to make yak farming more appealing through the introduction of appropriate technology to ease the labour burden, many young people will eventually migrate from these communities and take up alternative livelihood opportunities eslewhere.

48 Tenth Plan Document, Volume 2 There is also another important consideration. Yak herders have been and are responsible for maintaining and sustainably utilizing the rich resources that are available in these high altitude areas. It will be important to continue promoting resource utilization for these communities while 01 also ensuring that this is done in a sustainable fashion to help preserve the natural resource base. MINISTRY OF AGRICULTURE C. Strategy The key strategy is to have a targeted and tailored programme to address the priority needs of yak herders who have special needs and considerations. Emphasis will be given to increasing the feed and fodder resource base by promoting winter and summer fodder to produce hay for winter feeding. Hygienic dairy processing will be promoted through distribution of improved dairy processing equipment like cream separator, butter churner and packaging and transportation materials. Farmer’s training on improved pasture production, dairy processing and on group formation will be given priority. Moreover, to promote the sustainable use of alternative energy source in these highland communities, solar lighting and cooking and biogas production using portable digester will be introduced or piloted, whichever is appropriate. To enhance meat production and encourage that this is done in a humane and hygienic manner, a micro meat processing unit will be established. Community Animal Health Workers will also be trained and equipped as a way of increasing the coverage and reach of veterinary services to all these communities. Veterinary clinic outposts will also be established at strategic locations that benefit the majority of households in the area. D. Results Framework Impact Outcome Output Projects/Activities Mean rural Increased Increased availability of Feed and fodder training and household cash dairy (yak) winter fodder demonstration income increased production from Nu. 10,700 by 20% Improved dairy and Promote improved fodder variety to above Nu. meat processing 35,000 technology promoted Construction of Meat processing Units Proportion of Increased coverage of Supply of dairy processing equipment rural households animal health services living in poverty Training of Community Animal health reduced from Sustainable alternative Workers 30.9% to 20% energy efficient technologies introduced Promote sustainable alternative energy sources for heating, cooking and lighting E. Management Arrangements Institutional arrangements The activities will be executed by the Department of Livestock in collaboration with the concerned Dzongkhag Adminstration, Yak herder communities and relevant outside stakeholders. The promotion of sustainable alternative energy resources will be done in close collaboration with the Department of Energy. The result and lessons learnt from these activities will be shared among stakeholders for further dissemination and consideration for replication in other similar rangeland areas. MINISTRY OF AGRICULTURE 49 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Fodder production 13.560

2 Training of Community Animal Health Workers and equipping 2.500 with necessary basic equipment

3 Dairy processing equipment 5.000

4 Establishment of meat processing units 1.200

5 Supply of portable solar lamps, solar cookers, biogas digester 10.000

6 Establishment of veterinary clinic outpost 2.500 Total 34.760 MoA/18: PARTICIPATORY FORESTRY PROGRAMME A. Overview 1 Sector : Forestry

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for Objectives & Strategies poverty reduction and improved rural livelihoods while promoting environmental conservation

3 Expected Results : Proportion of forest area managed as community and private forest increased from less than 1 % of GRF to 4%. Proportion of households involved in community and private forestry increased from 4% to 7%.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure environmental sustainability SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 17: Acceptable level of forest cover. SDG Goal 18: Acceptable level of water and soil quality. SDG Goal 19: Acceptable level of air quality SDG Goal 20: Conservation of bio-diversity 5 Donor Agency :

6 Target Group : Prospective farmers and community forest management groups 7 Scope : National

8 Status- Ongoing or new : On-going 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 83.200 m

11 External Financing required : Nu. 83.200 m 12 Executing Agency : Ministry of Agriculture 13 Implementing Agencies : Social Forestry Division (Department of Forests), Dzongkhags and Gewogs 14 Documents Available : Framework for Implementation of Decentralized Forestry Activities, 1993; Sector Tenth Plan

50 Tenth Plan Document, Volume 2 B. Situational Analysis Participatory forest management was introduced formally in 1979 through a Royal Decree. The 01 importance and the need for people‘s participation in protection and management of forests was further emphasized through the decentralization policy. Forestry activities with direct relevance for the sustenance of the rural community and those that demanded intensive community participation MINISTRY OF AGRICULTURE for effective implementation were decentralized since 1993. Decentralized forest activities include development and management of community and private forests, protection of forests from fire and restricting encroachment into sokshing and tsamdrog, allocation of dry firewood and sanctioning of rural timber. Forestry extension units have been created in the Dzongkhags with trained foresters to assist in the implementation of the decentralized forestry activities and enhancing forestry extension. With the creation of an enabling policy environment, community forestry has picked up pace recently. The Dzongkhags though still face staff shortages as each extension agent is responsible for two to three gewogs. The difficulty in authenticating land boundaries due to the shortage of surveyors in the dzongkhags has also proved to be a major obstacle for private forestry development. Some of the major community and private foresty activities undertaken over the Ninth Plan were: • 72 community forests established and handed over to local communities covering 9,000 ha of Forest area engaging 3,940 rural households. 121 private forests established; • Five CFs has started generating income from sale of forest produce; • A draft Community Forestry development strategy is prepared. 17 case studies on community forestry aspects published and four volumes of CF manuals published; and • In-country community forestry study tour guidelines for CFMGs published. An assessment of the forestry programme over the Ninth Plan shows that there is tremendous potential for developing community and private forestry to further enhance the livelihood opportunities for rural communities. The demand from the rural communities for community and private forestry has been increasing. This programme thus provides for an extended scope to augment farm incomes, promote rural enterprise development and reduce rural underemployment and unemployment. Moreover, the promotion of community and private foresty contributes to increasing local and national forest cover. C. Strategy Community forestry development will be given a special focus with the objective of empowering rural communities to sustainably manage local forest resources to enhance income generation, reduce poverty and stimulate employment generation. Up-scaling community forestry, development of community forestry-based enterprises and good governance of forest resources will be strengthened. Some of the specific strategies to promote participatory forestry in the Tenth Plan are as follows. A clear legal and policy framework will be developed through the revision of the Forest Policy, the FNC Act 1995 and Rules and Regulations to address the legal rights and ownership of community forests for the Community Forest Management Groups. To enable rural communities to fully meet their timber and wood requirements from community forests, the resource area allocation will be increased from the current ceiling of 2.5 ha per household to a minimum of 5 ha per household and MINISTRY OF AGRICULTURE 51 this change will be addressed in the FNC Rules. With the operationalization and strengthening of community forestry across the country, rural timber subsidies will need to be reduced and ultimately phased out in 10-15 years. Pertinent policy measures will also include supporting private forestry assistance to registered land owners. To enhance income generation, poverty alleviation and employment from community forests, establishment of forest resource based enterprises and regional CF associations will be supported with proper feasibility studies. A business economist will be hired through SNV or some other donors to support CF and NWFP business feasibility planning and product development. To enhance the capacity and capability of the Department, Dzongkhags and rural communities in the implementation of community forestry, private forestry and forestry extension programmes, human resource capacity will be strengthened through a series of long-term, short-term and in- service training programmes. In particular, community forest management groups (CFMGs) shall be provided a series of in-country training programmes on record keeping, book keeping, and planning aspects to ensure smooth implementation of CF plans, enhance equity and good resource governance. D. Results Framework Impact Outcome Output Projects/Activities Forest areas in Proportion of forest 400 community Strengthening Community the vicinity of area managed forests established Forestry development the communities as community and managed by local sustainably managed and private forest communities (Baseline: Strengthening Private by local people increased from less 72 community forests) Forestry contributing to than 1 % of GRF to enhancement of rural 4% About 1000 private Strengthening Forestry livelihoods and to forests developed Extension Services maintaining the forest Proportion of (Baseline:121 private cover households involved forests) Strengthen human resource in community and capacity at different levels private forestry through a series of ex- increased from 4% to country and in-country 7% training programmes E. Management Arrangements Institutional arrangements The Department of Forests shall be the overall executing and coordination agency for the Participatory Forestry Programme. The Social Forestry Division shall provide technical backstopping required by the Dzongkhags, Gewogs and the field forestry offices for enhancing management of participatory forestry programme. In order to effectively implement participatory forestry programme, the Department of Forests shall place adequate number of qualified forestry personnel in dzongkhags and gewogs.

52 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 01

1 Strengthening Community Forestry 62.000

2 Strengthening Private Forestry 5.000 MINISTRY OF AGRICULTURE

3 Strengthening Forestry Extension Services 16.200 Total 83.200 MoA/19: NON-WOOD FOREST RESOURCE DEVELOPMENT PROGRAMME A. Overview 1 Sector : Forestry

2 Linkage to National : Synergizing Integrated Rural-Urban Development for poverty Development Objectives & reduction and improved rural livelihoods through promoting Strategies NWFP while ensuring environmental conservation

3 Expected Results : Sustainable community management of NWFPs Species increased from 4 to 20; At least 100 NWFP management groups formed with significant contribution to income generation in rural communities.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure environmental sustainability SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 17: Acceptable level of forest cover. SDG Goal 18: Acceptable level of water and soil quality. SDG Goal 20: Conservation of bio-diversity 5 Donor Agency :

6 Target Group : Community forest/NWFP management groups/Traders/ Businesses 7 Scope : National 8 Status- Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 65.000 m

11 External Financing required : Nu. 65.000 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Social Forestry Division (Department of Forests), Dzongkhags and Gewogs

14 Documents Available : Framework for Implementation of Decentralized Forestry Activities, 1993; Sector Tenth Plan MINISTRY OF AGRICULTURE 53 B. Situational Analysis Non-timber forest products play a significant role in the economic and cultural lives of virtually all rural households in the country. Bhutan’s NWFP resource base is rich and includes a diverse range of products from medicines to dyes, oil seeds and nuts, incense, forest vegetables, fruits and nuts, bamboo and cane, spices, resins and high value mushrooms. This rich non-wood forest resource base comprises 600 medicinal plants, 97 varieties of mushrooms, 97 different fruits and nuts, 34 bamboos, 14 canes, 25 oil/resin species, 20 spices, 38 fibres, 70 ornamental plants, 181 fodder species, 36 dyes, 12 food crops (yams) and 77 forest vegetables. These are NWFPs that have been identified and described by the Department of Forests and harvested by people in rural areas, traded and exported and do not include others that remain unknown. NWFPs are used by rural communities for self-consumption with the surplus produce sold in local markets. Numerous case studies and RNR statistical data collected reflect the considerable potential of NWFPs for income generation for rural communities. For instance, RNR statistics reveal that about close to half of all households in the country use bamboo resources for a variety of purposes, 21% of households are engaged in harvesting mushrooms from the wild and 38.6% of households gather fern-tops during summer months. Data from the EODP project reveal that farmers from Mongar, Lhuentse, Trashigang, and Trashiyangtse earned an income worth Nu. 51,247,045 over a period of 10 years (1994-2004) from the sale of lemon grass oil (EODP, 2006). In Bjoka, Zhemgang Dzongkhag a study revealed that 66% of the monetary income was derived from bamboo & cane products. The Laya communities are semi nomadic pastoralists with income from a variety of activities, including 12% of income from yak husbandry, 8% from agriculture and 14% from incense making. However half of their income derives from the collection and sale of Cordyceps sinensis (Namgay, et al, 2007). Also case studies have shown the economic importance of NWFPs. On average Chirata (Swertia chirayita) contributed to 42% of the household cash income of Shingkhar Lauri farmers in 1996-97 (Pradhan et al, 1998) and star anise (Illicium griffithii) provide sizeable cash income for farmers in Yabrang in Trashigang Dzongkhag and Aja Nye in Mongar Dzongkhag (Mukhia et al., 2006). Despite the tremendous potential and opportunity for NWFPs for poverty alleviation and enhancing income generation in rural areas, NWFP development had not received adequate attention in the national forest resource policy in the past. As such, the NWFP sector is still very much in its infancy with its commercial potential barely realized. This has also resulted in poor priority for NWFPs and inadequate planning and poor resource allocation for its development. Policies will now need to comprehensively cover all relevant aspects such as local participation in NWFP development, investment promotion, technology development, engaging private enterprise and informal sectors, patenting of products/processes etc. Also, the NWFP sector is constrained by the limited technical capacity in the Department of Forests to further expand the sustainable utilization and management of NWFP resources. Under the DoF leadership, a multi-stakeholder NWFP working group comprising of members from ITMS, RNR Research, Ministry of Economic Affairs, and private sector have been formed to provide technical and advisory support to the Department. This body will provide technical advisory support to the Department of Forests and also form the institutional platform to share experiences and information on various use and management of NWFPs. Some of the other major activities undertaken in expanding NWFP resources during the Ninth Plan were: • Seven Community Forests specifically for NWFPs established; • Draft report on commodity chain analysis for wild mushrooms developed;

54 Tenth Plan Document, Volume 2 • National NWFP survey for 11 dzongkhags compiled and 20 NWFP species prioritized for management; 01 • Draft National NWFP strategy prepared; • A multi-stakeholder NWFP Working Group formed with the Department of Forests taking MINISTRY OF AGRICULTURE the lead and facilitating role; and • Draft NWFP collection and harvesting framework developed. C. Strategy Under the NWFP development programme over the Tenth Plan, NWFP management will be given special focus with the objective of income generation, poverty alleviation and empowerment of rural communities in forest resource management. With some of the decentralized forestry programmes such as protection of tsamdro and sokshing becoming redundant with their nationalization under the Land Act 2007, additional programmes needs to be decentralized to the dzongkhags. Since NWFPs have strong linkages to rural livelihoods and offer tremendous scope for poverty alleviation, this programme will be decentralized to the dzongkhags. A clear legal and policy framework will be developed through the revision of the Forest Policy, the FNC Act and the Rules to address legal rights and ownership of community groups to collect, harvest, trade and export NWFPs within the community forestry framework. A 5-10 km radial distance from the villages and settlements shall be designated for collection and management of NWFPs for local community management groups, including areas falling within FMUs and protected areas with the exception of core zones. As indicated earlier, NWFP management will also be an additional decentralized forestry programme to be fully implemented by the dzongkhag forestry sector in the Tenth Plan and beyond. Relevant surveys of prioritized NWFP species will be undertaken and technical guidelines for sustainable harvesting and management framework developed and tested for application and use in the field. The survey methodology and harvesting and management guidelines for at least twenty NWFP species of commercial value will also be implemented in the Tenth Plan. An essential and high priority activity for the Tenth Plan will be to expand the commercial harvesting of NWFPs. This is expected to further boost livelihoods and income generation in rural communities, particularly for the poor and landless, thereby reducing rural poverty. The harvesting of NWFPs is to be expanded to export level production catering to rapidly growing overseas markets. To facilitate this objective, the establishment of various NWFP resource based enterprises will be facilitated and supported with adequate feasibility studies. To enhance the capacity and capability of the Department of Forests, Dzongkhags and the Communities in the management and implementation of NWFP programme, institutional capacity of the sector will be strengthened through long-term, short-term and in-service training programmes. The implementation of in-service training programmes will be done in collaboration with relevant institutions such as College of Natural Resources and the Ugyen Wangchuck Forestry and Environmental Institute. Trainings will be provided for the various community management groups in the areas of book keeping, planning and decision-making in collaboration with the Rural Development Training Centre (RDTC). These groups will also recieve training in harvesting techniques of NWFPs. This will MINISTRY OF AGRICULTURE 55 also effectively empower the rural poor by promoting self-organization and enterprise development through the appropriate development and capacity building of cooperatives, community level enterprises and other necessary support mechanisms. D. Results Framework Impact Outcome Output Projects/Activities Mean rural Value of Non Sustainable community Strengthening NWFP management household cash Wood Forest management of NWFPs through development of NWFP income increased Products species increased from 4 strategy, resource assessment from Nu. 10,700 to (NWFP) to 20 guidelines and harvesting manuals above Nu. 35,000 including MAP increased from At least 100 NWFP Development of legal framework for Proportion of rural Nu. 60 Million to management groups formed the use, sale & export of NWFPs households living Nu. 100 Million with significant contribution in poverty reduced per annum to rural income generation Institutional strengthening for from 30.9% to 20% leading and coordination of NWFP NWFP resource management assessment guidelines developed Building information network for sale and export of NWFPs and Management & harvesting establishment of enterprises guidelines developed for 6 NWFPs Capacity building for DOF personnel and communities Feasibility studies for NWFP enterprise development conducted E. Management Arrangements Institutional arrangements The Social Forestry Division, Department of Forests shall be the overall executing and coordination agency for the NWFP Programme. SFD shall also provide technical backstopping to the DoF field offices and dzongkhag administrations and coordinate with other agencies in the government and the private sector for NWFP management and trade. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening Management of NWFP resources 40.000

2 Strengthening Legal Framework for NWFP management 5.000

3 Strengthening coordination and collaboration with NWFP 5.000 management stakeholders and institutions

4 Strengthening NWFP product development, enterprises, 15.000 marketing and trade. Total 65.000

56 Tenth Plan Document, Volume 2 MoA/20: FOREST RESOURCES DEVELOPMENT PROGRAMME 01 A. Overview 1 Sector : Forestry MINISTRY OF AGRICULTURE

2 Linkage to National : Synergizing Integrated Rural-Urban Development and Development Objectives & National Spatial Planning for poverty reduction and improved Strategies rural livelihoods through promoting sustainable utilization of forest resources while promoting environmental conservation

3 Expected Results Income from sale of timber earnings increased from Nu. 540 : million to Nu. 600 million per annum Area under sustainable forest management increased from 5% to 10%. Affordable housing materials provided to rural households through creation of enabling forestry policies and timber prices.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure environmental sustainability SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 17: Acceptable level of forest cover. SDG Goal 20: Conservation of bio-diversity 5 Donor Agency :

6 Target Group : Forest Management Units (FMU), working circles and Outside FMU 7 Scope : National 8 Status – Ongoing or new : On-going 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 89.850 m

11 External Financing Required : Nu. 89.850 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Forest Resource Development Division, Department of Forests

14 Collaborating Agencies : NRDCL

15 Documents Available : Forest Resource Potential Assessment, 2004; Sector Tenth Plan B. Situational Analysis Forest resources are important for economic and ecological sustainability. A critical dimension of Bhutan’s Vision 2020 and GNH development policy is to protect and conserve the country‘s fragile mountain environment and its unique flora and fauna for future generations. Bhutan’s Constitution, adopted in 2008, also strongly enshrines the responsibility of all Bhutanese citizens to preserve the environment to ensure the long term sustainable use of natural resources and clearly stipulates a national obligation to maintaina minimum forest cover of 60% for posterity. This requires that natural resources are utilized in a sustainable way and any trade-offs between economic gains and conservation are effectively managed to avoid any deterioration of environmental resources. The forest resource development programme has been initiated to develop sustainable MINISTRY OF AGRICULTURE 57 forestry management plans and systems. This is to ensure that forest resources are utilized and extracted in a sustainable manner. Some of the major initiatives undertaken over the Ninth Plan were: • 19 FMUs are in operation and 6 units are in the planning stage; • The total area covered under the FMUs is estimated at 127,362 hectares; • Management guidelines for management of areas outside FMUs developed; and • A national forest management code of Bhutan published to guide resource management. C. Strategy • Additional FMUs and working schemes will be opened up across the country to meet the domestic wood demands; • Timber import will be encouraged and facilitated for mega projects, large constructions and industries to ease pressure on state forest resources; • In order to bring about sustainable management of forest areas outside of FMU, CFs, protected areas system, which is currently not under any management, particularly to meet the rural demand for timber and fuel wood, these forest areas will be brought under some form of scientific management. However, this is an interim measure as many of these areas over time will be brought under community forestry; and • A nationwide Forest inventory will be conducted to develop a forest resource information base and facilitate decision making in forest based industry investments. D. Results Framework Impact Outcome Output Projects/Activities Sustainable Income from sale 6 new FMU management Strengthening management of of timber earnings plans implemented sustainable production forest increased from Nu. (baseline:19 FMUs) management of FMU with science based 540 million to Nu. 600 system for wood interventions to meet million per annum 20 Management plans production the long term needs for forests outside FMUs of the people for prepared and implemented Strengthening all types of forest Area under (baseline: 0) management of Forests resources sustainable forest Outside FMU system management Timber demands for domestic Mean rural household increased from 5% to needs are met (baseline: Forest Demarcation cash income 10% 214,000 cubic meters) increased from Nu. Development of Wood 10,700 to above Nu. Affordable housing One National Forest inventory Based Industries 35,000 materials provided conducted (baseline: 0) to rural households Facilitating Timber Proportion of rural through creation Feasibility study for wood- import households living in enabling forestry based industries conducted poverty reduced from policies and timber National Forest 30.9% to 20% prices Inventory

58 Tenth Plan Document, Volume 2 E. Management Arrangements 01 Institutional arrangements The overall execution and coordination of the programme shall be carried out by the Department of Forestry. The Forest Resource Development Division will play a key role in providing technical MINISTRY OF AGRICULTURE guidelines and other support for implementation of the programme in close collaboration with the Territorial Divisions, National Parks Services and the Natural Resource Development Corporation Limited. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Sustainable Management of FMU 40.000

2 Management of Forest Outside FMU 12.000

3 National Forest Inventory 35.170

4 Forests Demarcation 2.000

5 Wood Based Industries 0.680 Total 89.850 MoA/21: WATERSHED MANAGEMENT AND PLANTATION PROGRAMME A. Overview 1 Sector : Forestry

2 Linkage to National : Synergizing Integrated Rural-Urban Development and Development Objectives & National Spatial Planning for poverty reduction and improved Strategies rural livelihoods through promoting sustainable utilization of water and forest resources while promoting environmental conservation

3 Expected Results : Master-plan for atleast 2 river basins developed and implemented; Degraded and barren forestlands mapped; 10,000 acres of plantation established, 12 nurseries created.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure environmental sustainability SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 17: Acceptable level of forest cover SDG Goal 20: Conservation of bio-diversity SDG Goal 21: Wetland conservation 5 Donor Agency :

6 Target Group : Government agencies, communities, wood-based industries, power corporations 7 Scope : National 8 Status- Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 123.000 m MINISTRY OF AGRICULTURE 59

11 External Financing required : Nu. 123.000 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Department of Forests, Dzongkhags and Gewogs

14 Documents Available : Framework for Implementation of Decentralized Forestry Activities, 1993; Sector Tenth Plan B. Situational Analysis Watersheds systems are life supporting and there is a deep interrelationship between it and human activities. As such maintaining and protecting watersheds remain highly essential for a robust economy, conserving environment resources and ensuring a good quality of life. Given that Bhutan’s two most important sectors in the national economy – electricity and agriculture – are highly reliant on the state and condition of the country’s watersheds, watershed management and planning assumes enormous significance. The goal of watershed management is to plan and work toward an environmentally and economically healthy watershed benefitting all end users. Effective watershed management involves harmonizing the use of soil and water resources between upstream and downstream areas within a watershed toward the objectives of natural resource conservation, maintaining quality of water, increased agricultural productivity and a better standard of living for people. Despite its obvious importance, watershed management development activities over the past plans were only implemented in conjunction with other activities such as plantation, soil conservation and land management. Watershed management at the broader landscape level was not given much importance. In the 9th FYP, a Watershed Management Section was created under the Social Forestry Division but due to limited technical, financial and human resources, it remained a section without much activity. However, towards the end of the 9th plan, the SFD took the lead in developing a watershed management framework for the Wangchu River Basin. Some field level land management and soil conservation activities were also taken up at the dzongkhag and field divisions. The Wang Watershed Management project based in Paro had a more sustainable natural resource utilization approach without much specific focus on watershed per se. Some small scale research-based watershed management was also taken up in Lingmuteychu (Wangdue-Punakha) and Radi (Trashigang). Plantation forestry is an on-going activity. Over the 9th plan, only a little above 5,000 acres of plantation was created. While some of the plantations created in the 1960s are in good health, reached harvesting stage and are being utilized, most other plantations are in poor state due to limited maintenance and tending. Financial constraints have notably been a major obstacle to proper plantation development. As the natural timber stock is fast depleting, it will be increasingly difficult in the future to meet domestic timber and woods demands from the natural forest. Therefore, plantation forestry becomes an increasingly important strategy to address the growing demands for timber and adequate financial support and resources must be provided for the proper development of plantation forestry. Some of the significant activities for watershed and forestry plantation undertaken over the 9th plan include the following: • Watershed section within the Social Forestry Division was created; One critical catchment was notified for protection;

60 Tenth Plan Document, Volume 2 • Draft Wangchu River Basin management framework developed; • A series of land management and soil conservation activities were taken up; 01 • Norms and Standards for Plantation and Nurseries revised; and MINISTRY OF AGRICULTURE • More than 5000 acres of plantations have been created. C. Strategy A holistic and integrated approach to watershed management through different levels of watershed management planning and implementation will be the main strategy for watershed management. With the Department of Forests taking the lead, institutional mechanisms will be developed to mainstream watershed management in the national planning process. To strengthen plantation forestry, a nation wide survey of all the degraded and barren forest lands will be conducted to develop appropriate plantation programmes. The feasibility of outsourcing forest plantations through contract systems will also be studied. Degraded forestlands will be leased out to wood-based industries for growing forest crops to meet their raw materials, commercial timber plantations, carbon sequestration etc. D. Results Matrix Impact Outcome Output Projects/Activities Protection and Master plan for River basin level Strengthen institutional mechanism sustainable atleast 2 major management framework across agencies to direct watershed management watershed developed and implemented management at different levels of watersheds implemented for 2 major river basins and catchments (Baseline: 1 draft RBM River basin level management for ecosystem 10,000 acres framework for Wangchu planning services and of barren land prepared) human well brought under Sub-catchment level management being the plantation 3 critical catchment areas planning scheme(base notified for protection line: 53,126 (Baseline: 1 notified) Participatory Micro watershed acres) management Watershed management committees established and Mapping of degraded and barren functioning at national and forest lands dzongkhag levels (baseline:0) Strengthen plantation forestry Degraded and barren forest lands mapped for plantation Strengthen nurseries management (baseline: 0) Strengthen human resource 12 nurseries created capacity to manage watershed and plantation programmes MINISTRY OF AGRICULTURE 61 E. Management Arrangements: Institutional arrangements The Department of Forests will be the lead agency for watershed management and plantation programme. The Social Forestry Division will provide technical backstopping to the territorial divisions, parks and Dzongkhags in watershed management and plantation and liaise with stakeholders for effective implementation of the programme. Different levels of watershed management committees will be formed to steer watershed management. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening institutional mechanism for effective 5.000 watershed management

2 River basin level watershed management planning 18.000

3 Sub-catchment level watershed management planning and 40.000 implementation

4 Mapping of degraded and barren forestlands 5.000

5 Afforestation and Re-forestation 40.000

6 Strengthening nurseries management 15.000 Total 123.000 MoA/22: FOREST PROTECTION PROGRAMME A. Overview 1 Sector : Forestry

2 Linkage to National : Synergizing Integrated Rural-Urban Development and National Development Objectives & Spatial Planning for poverty reduction and improved rural Strategies livelihoods through promoting sustainable utilization of forest resources while promoting environmental conservation

3 Expected Results : Protection of forests from fires, pest and diseases, and effective land use monitoring.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure environmental sustainability SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 17: Acceptable level of forest cover. SDG Goal 20: Conservation of bio-diversity 5 Donor Agency : 6 Target Group : Nationwide 7 Scope : National

8 Status – Ongoing or new : On-going 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 243.040 m

11 External Financing : Nu. 243.040 m Required

62 Tenth Plan Document, Volume 2 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Forest Protection Division, Department of Forests 01

14 Collaborating Agencies : NRDCL, Dzongkhags, Wood-based industries

15 Documents Available : Forest Resource Potential Assessment, 2004; Sector Tenth Plan MINISTRY OF AGRICULTURE B. Situational Analysis Forest resources are important for economic and ecological sustainability. A critical dimension of Bhutan’s Vision 2020 and GNH development policy is to protect and conserve the country‘s fragile mountain environment and its unique flora and fauna for future generations. Bhutan’s Constitution, adopted in 2008, also strongly enshrines the responsibility of all Bhutanese citizens to preserve the environment to ensure the long term sustainable use of natural resources and clearly stipulates a national obligation to maintaina minimum forest cover of 60% for posterity. The foresty protection programme is geared towards protection of forests from pest and diseases, forest fires, land encroachment and to effectively manage, regulate and facilitate delivery of forestry services. The service delivery of the Department of Forests has been a matter of some public debate and is often questioned. The quality of services has not been upto expectations and the situation is further compounded by a host of problems. These include the rapid change in land use due to the rising expansion of human settlements and road networks that exacerbates the situation. This necessitates the need to maintain an even greater vigilance over resources that are lying adjacent to road heads and human settlements and often easily extractable without too much detection. Forest fires destroy large areas of forests every year damaging valuable timber and degrading other wood and non-wood resources and biodiversity. As a result of forest fires and subsequent loss of forest cover, land slides and soil erosion occurs frequently. With limited human and financial resources, the DoF is not able to effectively combat forest fires. In the last sixteen years, there have been 988 forest fire incidents and 397,970 acres of forests damaged by forest fire. There have also been a few pest and disease problems such as the dying of Yika in eastern Bhutan, pine die-back in Thimphu-Paro and certain pine looper complications in parts of the country. The utilization of forest resources is clearly based on the principle of sustainability guided by proper management plans to ensure that the impact on natural forest resources are negligible. However, without proper checks and safeguard measures to effectively monitor these developments there is a natural tendency for communities and private operators to overexploit such resources or even engage in illegal harvesting of forests. Monitoring land use change and forest protection as such is a very important function of this programme and will become even more important with increased development activities in the years ahead. Some of the major activities undertaken during the Ninth Plan include: • Revision of the Forest and Nature Conservation Rules 2003, 2006; and • The FNC Rules 2006 is further revised (draft form) to enhance service delivery. The protection section is revamped to increase its efficiency and effectiveness to curb and control illegal activities on forest and forest resources Lessons from the 9th plan indicate that a certain amount of reshuffling of programmes are required to be done in line with service delivery and effectiveness of programme functioning. In this MINISTRY OF AGRICULTURE 63 connection, management of forest fires which are more of protection function than extension is now brought under the central programme with the forest protection programme and implementation to be led by territorial divisions and parks. C. Strategy • Public service delivery enhanced through decentralization of authority and responsibility from the center to field divisions and dzongkhags with adequate infrastructure facilities made available; • A strengthened protection unit will be created within DoF to monitor forest pest and disease, and illegal activities; • To strengthen the protection and management of forest fires, a vigorous forest fire fighting volunteer programme will be established to complement the existing mechanism; and • A systematic land use monitoring approach will be developed through regular tracking of changes in land use. D. Results Framework Impact Outcome Output Projects/Activities Forest cover Protection of Surveillance system Strengthening Forest Protection from pest maintained at forests from developed for 20 and disease and anti-poaching 60% fires, pest important forest and diseases pests, diseases and Strengthening forest fire management strengthened forest fire Strengthening land use monitoring Service delivery enhanced Strengthening service delivery E. Management Arrangements Institutional arrangements The Department of Forests shall be the overall lead agency for the management of the Forest Protection Programme. The Forest Protection Division will provide technical backstopping to the field agencies for implementation. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthen Forest Protection through proper infrastructure 153.990 development

2 Strengthen service delivery through improvement in field facilities 45.050 and creation of enabling regulatory environment

64 Tenth Plan Document, Volume 2

3 Strengthen Land Use monitoring 2.000

4 Forest Ligitation 00.000 01

5 Forest Fire Management 26.100

6 GIS and Information management system 15.900 MINISTRY OF AGRICULTURE Total 243.040 MoA/23: NATURE CONSERVATION PROGRAMME A. Overview

1 Sector : Forestry

2 Linkage to National : National Spatial Planning to reduce poverty and improve Development Objectives & quality of life through promoting sustainable livelihoods while Strategies ensuring environmental conservation

3 Expected Results : Three Parks and one botanical garden established; Toorsa strict nature reserve operationalized; Present list of protected species conserved and numbers of new species identified for conservation. 4 Relevant MDG & SDG : MDG Goal 7: Ensure environmental sustainability. SDG Goal 17: Acceptable level of forest cover. SDG Goal 20: Conservation of bio-diversity. 5 Donor Agency :

6 Target Group : Protected areas 7 Scope : National 8 Status- Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 190.000 m

11 External Financing Required : Nu. 190.000 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Nature Conservation Division, Department of Forest

14 Documents Available : Sector Tenth Plan B. Situational Analysis Nature conservation is clearly an integral aspect of the sustainable development policy strongly advocated by the Royal Government to maintain a healthy balance between meeting the development needs of the people without undermining or damaging the natural environment. The key characteristics of the nature conservation programme include maintaining a strategic focus on conserving biodiversity in the protected areas, biological corridors and other conservation areas; supporting positive amd mutually beneficial human-nature interactions; promoting environmental education among the public at large; encouraging partnership in conservation programme to address a wider range of issues; and optimizing the use of limited resources. The management of parks and protected areas in harmony with competing demands such as infrastructure development, human activity and resulting pressure on environment remains a MINISTRY OF AGRICULTURE 65 major challenge. There is a need for support and guidance from the NEC and other agencies at the national level particularly on benefit sharing of environment conservation. Currently, there are nine protected areas as parks or wildlife sanctuaries that together constitute 26 percent of the country‘s total land area. These protected areas are further linked by biological corridors covering some 3,804 km square of forest area to enhance the mobility and movement of wildlife. Some of the major activities undertaken over the Ninth Plan are: • Sakten Wildlife Sanctuary and Royal Botanical Park at Lampelri operationalized; • Biodiversity Act of Bhutan enacted; • The Convention on International Trade of Endangered Species of Wild Fauna and Flora ratified; • The Forest and Nature Conservation Rules enacted; • Collection of Cordyceps sinensis legalized; • Book on Mammals of Bhutan published; • Studies on human wildlife conflict, livestock depredation by wild dogs, research on endangered species of fauna and flora in the protected areas initiated; and • Community based eco-tourism established as Nabji Korphu Ecotourism Trail in the Jigme Singye Wangchuck National Park. C. Strategy The strategic focus of the Nature Conservation Programme during the Tenth Plan will be on the sustainable utilization of protected area resources for the benefit of resident communities through sustainable tourism, community management and utlization of local forest resources inlcuding NWFPs. However, designated core zones of protected areas will be strictly protected for biodiversity conservation purposes. Some of the specific strategies of the programme in the Tenth Plan are as follows: • Ecotourism will be strongly pursued in protected areas in collaboration with the Tourism Council of Bhutan and tour agencies with the objective of generating sustainable income for park residents from tourism and biodiversity conservation; • An eco-tourism strategy will be developed; • Sustainable use of forest resources in the protected areas will be carried out to benefit local residents through ICDP programme; • Sustainable solution to human-wildlife conflict will be developed and implemented; and • Three protected areas and biological corridors operationalized.

66 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 01 Management of Protected Areas Environment Atleast 10% of Management of existing MINISTRY OF AGRICULTURE and ecosystem residents in the parks and botanical Management of Biological Corridors maintained in protected area gardens strengthened pristine condition benefit from (Baseline: 6 parks Management Plan and ICDP eco-tourism and operational, 1 botanical Livelihoods of ICDP park) Management of Botanical Parks communities living in and 3 new protected areas and Species Conservation, Research & around protected Present list 1 botanical park in the sub- Monitoring areas enhanced of protected tropical ecological zone and not species established Biodiversity Inventory & Data compromised conserved and 4 biological corridors Management new species brought under scientific identified for management (baseline: 0) Community forestry and NWFP conservation management in the multiple and Local communities buffer zones of all protected areas engaged in Community- based management of Tourism programme to be forest resources implemented in collaboration with Tourism Council of Bhutan Eco-tourism activities to be initiated in the parks and Capacity building to be developed to wildlife sanctuaries park staffs and tour guides E. Management Arrangements Institutional arrangements The Department of Forestry shall be responsible for the overall execution and coordination of the programme. Technical support shall be provided by the Nature Conservation Division for implementation of the programme in the protected areas and biological corridors. The park managements shall also closely work with Social Forestry Division and the Dzongkhags and Gewogs to enhance people‘s participation in planning and implementation of the Integrated Conservation Development Programme pertaining to sustainable management of park resources for income generation and poverty alleviation. The DoF in collaboration with the Tourism Council of Bhutan will be implementing the Eco-tourism activities in protected areas. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Management and Planning of Protected Areas 80.000

2 Management of Biological Corridors 15.000

3 Management of Botanical Parks 50.000

4 Species Conservation, Research & Monitoring and data 10.000 management

5 Eco-tourism and ICDP 35.000 Total 190.000 MINISTRY OF AGRICULTURE 67 MoA/24: FORESTRY & ENVIRONMENTAL EDUCATION PROGRAMME A. Overview

1 Sector : Renewable Natural Resources 2 Linkage to National Development : National Spatial Planning to ensure environmental Objectives & Strategies conservation

3 Expected Results : Enhanced human resource capacity in the conservation and sustainable management of forest and environmental resources 4 Relevant MDG & SDG : MDG Goal 7: Ensure environmental sustainability. SDG Goal 17: Acceptable level of forest cover. SDG Goal 20: Conservation of bio-diversity 5 Donor Agency :

6 Target Group : Forestry students 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 170.550 m

11 External Financing Required : Nu. 170.550 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Department of Forest

14 Documents Available : Sector Tenth Plan B. Situational Analysis Enhancing the knowledge and technical skills base related to forestry and environment conservation is critical towards building national capacity to effectively implement and manage sustainable development. The concept of forestry education was instituted in Bhutan with the inception of development activities in 1961 to train forestry personnel at the forest guard and forester levels. This is no longer sufficient with the changing times and the manner in which forest and natural resources are now managed, there is a clear need to enhance and upgrade the professionalism and levels of skills and knowledge of environmental frontline and other personnel. This has led to the conceptualization and eventual establishment of the Ugyen Wangchuck Forest and Environment Institute at Lami Gompa, Bumthang in 2008. Training and education at forest guard and ranger levels will be carried out in the initial years followed by a Bachelors of Science degree in forestry in the future. C. Strategy The infrastructure development for the new Institute was completed in 2008. Initially, the programme will focus on conducting diploma level training for forest rangers and certificate level courses for forest guards. As the institute develops, tertiary level training and degree programmes will also be introduced.

68 Tenth Plan Document, Volume 2 Some of the specific strategies of the programme in the Tenth Plan are as follows: • Development of additional infrastructure for academic, housing, library, sports, etc.; 01 • Development of teaching curriculum and corresponding syllabus and reading materials; MINISTRY OF AGRICULTURE • Development of learning resources such as library, ICT, laboratories, and field stations; • Networking and collaborating with other reputable international universities; • Development of Bhutan Museum of Natural History; and • Development of degree level programme. D. Results Framework Impact Outcome Output Projects/Activities Enhanced Skilled and Ugyen Wangchuck Diploma Training, Degree Programme, human resource qualified forest Forestry and In-service /Upgradation capacity in the guards and Environment conservation rangers available Institute established Research/ Scholarly Activities and sustainable and functional management Scientific Infrastructure Development/Resources of forest and knowledge on Publication and environmental natural resource dissemination of Curriculum & Syllabus Development resources of Bhutan information on generated natural resources Staff & Student Exchange of the country Programme enhanced Library Development Bhutan Museum of Natural History E. Management Arrangement Institutional arrangements The infrastructure development component of the programme shall be executed by the Department of Forestry. For the establishment of the institution, relevant government agencies like the Royal University of Bhutan, Ministry of Education, Ministry of Agriculture and other international agencies shall be closely involved. The Institute and the DoF will liaise with RUB for curriculum development and validation particularly for Diploma and Bachelors level Education Programme. In the beginning of the Tenth Plan, the UWIE programme shall continue at CNR until the infrastructure is ready at Lamegonpa. The Institute will also liaise and collaborate with a number of teaching institutions and universities in the region and internationally to build up the capacity and caliber of the institute. MINISTRY OF AGRICULTURE 69 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Diploma Training 14.850

2 Inservice/Upgradation 25.000

3 Research/Scholarly Activities 10.200

4 Curriculum & Syllabus Development 10.000

5 Institutional Collaboration/ Networking 9.000

6 Library development 5.500

7 Sports and Culture Programme 5.000

8 Infrastructure development 91.000 Total 170.550 MoA/25: RNR RESEARCH PROGRAMME A. Overview

1 Sector : Renewal Natural Resources

2 Linkage to National : Synergizing Integrated Rural-Urban Development Development Objectives & for poverty reduction, food security, improved rural Strategies livelihoods and environmental conservation through RNR research

3 Expected Results : 10 varieties of food crops, 34 varieties of horticulture crops, 8 species of fodder developed and promoted for higher yield;

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure environmental sustainability. SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people living in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor

5 Donor Agencies :

6 Target Group : Farming communities 7 Scope : National

8 Status- Ongoing or new : Ongoing/New

9 Timeframe: : Give years (2008-2013)

10 Indicative Capital Cost : Nu. 214.850 m

11 External Financing Required : Nu. 214.850 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Council for RNR Research of Bhutan (CoRRB)

14 Document Available : Sector Tenth Plan

70 Tenth Plan Document, Volume 2 B. Situational Analysis Research is an integral and important activity of RNR sector development and will continue to 01 play a key role in improving livelihoods of the Bhutanese population and reducing rural poverty. The RNR research is geared towards need based, impact oriented and participatory delivery of research services. Apart from generating technological packages and knowledge on RNR sector MINISTRY OF AGRICULTURE development, research also strives to develop improved genetic materials for crops, plants and livestock; introduce new management practices that will raise output or conserve resources; create better understanding on socioeconomic factors that enhance productivity and facilitate poverty reduction. In addition the CoRRB also supports school agriculture programmes to educate and inculcate importance of farming among youths. Some of the major activities undertaken over the Ninth Plan are: • Developed and promoted high yielding food crops varieties including 5 varieties of rice, 2 varieties of maize 3 varieties of grain legumes. In rice productivity increased by 5,000 to 10,000 tons/year; and in maize 12-14000 tonnes per year; • Developed and promoted high yielding horticultural crop varieties (apple 3 varieties, citrus 3 varieties, vegetable 11 varieties, other fruits and nuts 12 varieties, potato 1 variety, persimmon 1variety and cardamom 3 varieties; • Developed and promoted new fodder species (sub-tropical 3 spp., temperate 5 spp.); • Developed sustainable management techniques for non-wood forest products (Bamboo, Cane, Daphne, Chirata, Pipla); • Legalization of the collection of Cordyceps sinensis; • Generation of 16 technologies on different management and production aspects; and • School Agriculture programme implemented in 121 schools involving students in vegetable and fruit production, dairy, poultry, piggery and fishery. There exists a lack of coordination on RNR research between CORRB and non RNR agencies (eg. CNR, ITMS, etc) and also between the agencies within MoA (DoA, DoF, NSSC, NPPC, DoL, BAFRA, etc) resulting in a duplication of efforts, wastage of resources, lack of credibility, etc. Current research priority setting is not based on standard tools and mechanisms and the research priority is not necessarily in line with national priorities. During the Tenth Plan, the CoRRB will continue to carry out research studies in the five main broad areas of field crop, forestry, livestock, horticulture and RNR systems. In the areas of field crop and horticulture, the focus of the research will be on development of improved varieties, better crop management practices, postproduction processing and marketing. In forestry, the priority will be to conduct research on sustainable utilization of non-wood forest products and intensification of community forestry programme. Livestock research will focus on optimizing feed and fodder resource production (from wetland, dryland orchard and pastoral systems) and breed improvement to increase livestock production. RNR systems research will carry out research on cross cutting issues such as watershed, organic farming, soil and water management, plant protection and socio- economic aspects. MINISTRY OF AGRICULTURE 71 C. Strategy The main strategies adopted by CoRRB in the Tenth Plan will include the following: • Pursue adaptive and applied research, and conduct strategic research where appropriate; • Ensure that the research is based on farmer’s needs and opportunities and is participatory in nature and impact oriented; • Research organization shall be structured to align research outputs with priorities of departmental programmes and needs of farming communities/clients; • Reach out to poor, marginal, remote communities through research out-reach; • Validate and showcase research results through on-farm trials, demonstration and technology parks in collaboration with extension; and • Foster strong linkage and partnership with national, regional and international research institutions/Universities for exchanging technologies and expertise. Moreover, there is also the need to establish a Technical Committee to promote collaboration between Research and other agencies. Innovative ways and means to promote ownership of research by agencies shall be adopted. The CoRRB shall develop the priority setting mechanisms/tools in terms of research. D. Results Framework Impact Outcome Output Projects/Activities Mean rural 10 varieties Improved cash crop varieties developed Horticulture Research household of food crops, from 62 to 96 cash income 34 varieties Livestock Research increased from of horticulture Improved varieties of feed and fodder Nu. 10,700 to a crops, 8 species increased from 12 to 20 Forestry Research Nu. 32,000 of fodder developed and Improved forest harvesting and RNR Systems Proportion of promoted for cultivation methods and management Research rural households higher yield practices increased from 7 to 22 living in poverty reduced from Sustainable Management practices for organic Field Crop Research 30.9% to 20% Management farming developed for 5 commodities practices developed 10 new improved varieties of cereal crops released (baseline: 10 varieties) Community Based Natural Resources Management (CBNRM) rights developed for 4 major natural resources

72 Tenth Plan Document, Volume 2 E. Management Arrangements 01 Institutional arrangement The Council for RNR Research of Bhutan (CoRRB) shall be responsible for the overall execution and coordination of the programme. The CoRRB shall also collaborate closely with the technical MINISTRY OF AGRICULTURE departments of forestry, agriculture, livestock and other relevant non-departmental agencies of the MoA. The actual research will be carried out by the Research Centers located at Yusipang, Bajo, Jakar and Wengkhar. Indicative Cost # Description of Project/Activities Indicative Cost (Nu. in million)

1 Field Crop Research (RC Bajo) 36.100

2 Forestry Research (RC Yusipang) 31.950

3 Livestock Research (RC Jakar) 35.300

4 Horticulture Research (RC Wengkhar) 57.000

5 School Agriculture 20.000

6 Research and Extension Services Coordination 18.300

7 Information and Communication Services 16.200 Total 214.850 MoA/26: RURAL DEVELOPMENT TRAINING PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National Development : Synergizing Integrated Rural-Urban Development for poverty Objectives & Strategies reduction, food security and improved rural livelihoods through enhanced agricultural productivity, access and marketing.

3 Expected Results : Number of RNR farm enterprises increased from 12 to 20 through vocational training.

4 Relevant MDG & SDG : MDG Goal1:Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people in poverty by 2010 SDG Goal 3 Ensure adequate nutrition & dietary improvement for the poor 5 Donor Agency :

6 Target Group : Farmers and School dropouts 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 14.520 m

11 External Financing Required : Nu.14.520 m

12 Executing Agency : Ministry of Agriculture (MoA)

13 Implementing Agencies : Rural Development Training Center

14 Documents Available : Sector Tenth Plan MINISTRY OF AGRICULTURE 73 B. Situational Analysis The rapid school enrolment of children and youths has brought about a situation where an increasing number of young people, including school leavers, are without gainful employment. Agriculture and the broader RNR sector are still employment intensive and remains the largest employment sector that could provide gainful employment for Bhutanese youth and job seekers. It is therefore only logical to encourage young schools leavers to take up employment in the agriculture and RNR sector, which is often plagued by the shortage of labour and could use the workforce. For this to happen, it is important to make both agriculture and off farm jobs attractive by enhancing their commercial prospects. It was with this objective in mind that the Rural Development Training Center (RDTC) was established in Zhemgang to help build up a critical mass of educated farmers interested in taking up commercial scale farming that is sustainable and rewarding. Initially, the RDT was geared towards inviting youths to undertake agricultural skills trainings that allowed them to be gainfully employed and contribute to nation building. Despite considerable efforts made to offer attractive training opportunities related to farming and work in the RNR sector this has not been attractive enough. The RDTC therefore, currently has focused more on upgrading skill levels and knowledge of existing farmers with the intent that gradually the youth will enroll for the relevant training. C. Strategy RDTC will focus on the empowerment of farmers through the provision of information, knowledge and skills, giving special attention to providing equal opportunities for women farmers. Empowerment of farming communities will be pursued through conducting skills based training in specific crop and animal production technologies, farm management and record keeping trainings for successful planning and management, sharing information on recent farming trends and future perspectives and, establishing farmers network for easy sharing of lessons learned and experiences. D. Results Framework Impact Outcome Output Projects/Activities Mean rural Number of 300 farmers Training needs assessment including household cash RNR farm trained and 60% skills requirement income increased enterprises of them apply from Nu. 10,700 increased farm business Farm Business and Farm Management to a Nu. 32,000 from 12 to 20 skills Training through voca- Proportion of tional training No. of farmers Community and Associations leaders rural households at RDTC groups formed Training. living in pov- through the erty reduced from facilitation and Youth agriculture awareness programme 30.9% to 20% functioning Assessment of training impact and post training support and backstopping needs

74 Tenth Plan Document, Volume 2 E. Management Arrangements Institutional arrangements 01 RDTC will function as a non departmental organization reporting to the Secretariat through the HRMD. The RDTC management will be guided by the management board represented by the MINISTRY OF AGRICULTURE heads of the organization under the Ministry of Agriculture and other relevant organizations. The head of the RDTC will be responsible to the Secretary, Ministry of Agriculture. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Need based and impact oriented vocational training 9.520

2 Infrastructure Development 5.000 Total 14.520 MoA/27: AGRICULTURE MARKETING PROGRAMME A. Overview 1 Sector : Agriculture

2 Linkage to National : Synergizing Integrated Rural-Urban Development for poverty Development Objectives & reduction, food security and improved rural livelihoods through Strategies enhanced agricultural productivity, access and marketing.

3 Expected Results : Markets for agricultural goods identified and established within and outside the country.

4 Relevant MDG & SDG : MDG Goal 1:Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people in poverty by 2010 SDG Goal 3 Ensure adequate nutrition & dietary improvement for the poor 5 Donor Agency :

6 Target Group : Potential farmers 7 Scope : National 8 Status – Ongoing or new : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 114.870 m

11 External Financing : Nu.114.870 m Required 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Agriculture Marketing Services, Dzongkhags and Gewogs

14 Documents Available : Sector Tenth Plan MINISTRY OF AGRICULTURE 75 B. Situational Analysis The sale of agriculture, livestock and forestry products continues to be a major source of income to farmers in Bhutan even as such sales have largely been restricted to the domestic market. The emergence of cash crop exports to neighbouring countries has been a recent development and arisen as a result of improved transport linkages and facilities, better market access conditions and increased demand from food processing industries. The good returns from the cultivation and sale of cash crops, particularly horticultural products, has encouraged many landowners located near roadheads to convert paddy fields into orchards. There are several constraints that hinder the further expansion of agricultural trade. Firstly, there is a paucity of information on commodity prices and a deep knowledge gap on demand and supply conditions and market outlets. This affects the ability of farmers to plan effectively and make informed decisions. Cumbersome legal requirements and the general lack of an enabling legal environment have also hindered the formation of farmers’ groups or associations which could help facilitate agricultural trade both within and outside the country. Institutionally, the lack of adequate human resources continues to hinder the effective implementation of the programme in the field. There is moreover extremely weak coordination between the AMS and the technical Departments of MoA including the extension services and this coordination needs to be improved. Beyond the Ministry, there is a need to strengthen collaboration with the MoEA and the Ministry of Information and Communications. The linkages with external and domestic markets for niche products such as high-value-low-volume and organic products must also be strengthened. C. Strategy During the Tenth Plan, the major focus of the Agricultural Marketing Programme will be on developing a marketing framework and strengthening market infrastructure, building up strong market database and information management systems and disseminating proper inventory methods and upgrading the existing information management systems. Market information systems and marketing framework will necessarily include elements that will enable marketing of agricultural produce both within and outside the country. For instance, in the case of pharmaceutical products, identification of new markets will be initiated beside maintaining and strengthening collaboration with ITMS. Conducting relevant research on niche markets and niche products will also be given priority. Niche markets will need to be identified for high value and organic products, the demand for which is gradually increasing in the global market. The programme will support the revision of the Cooperative’s Act to provide enabling legal provisions on farmers’ group formation, associations and cooperatives. The formation of associations or cooperatives will be promoted and infrastructure such as collection depots, storage facilities, etc. will be developed to facilitate onward transportation to the markets. The programme shall also seek to strengthen coordination between marketing and technical Departments within MoA. It will support the amendment of extension policy delineating the marketing responsibility of extension services. The programme shall maintain and reinforce linkages between agriculture marketing, the MoEA and Ministry of Information and Communications. The programme shall also address the human resource requirements for marketing.

76 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 01 Mean annual rural cash Increased Market Research and Market Research MINISTRY OF AGRICULTURE income increased from agricultural studies conducted Nu.10,700 to 35,000 trade both Agribusiness and Trade Promotion within and In collaboration with ITMS Proportion of rural outside the markets for pharmaceutical Marketing Extension & Farmers‘ households living below country products explored Group Formation poverty reduced from 30.9% to 20% Agriculture trade policy Collaboration with FCB for FCB developed to be pro-active in carrying out physical marketing of RNR Marketing infrastructure produce facilities developed Market Infrastructure Marketing information system improved Development of Market Information E. Management Arrangements: Institutional arrangements The Agriculture Marketing Services Division (AMSD) under the Ministry of Agriculture shall be responsible for the overall execution and coordination of the programme. Close coordination shall be maintained with relevant agencies such as the Ministry of Economic Affairs and Ministry of Information and Communications. The implementation of the programme will be carried out in coordination with the research and extension services in the Dzongkhags and Gewogs. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Market Research and Development 15.000

2 Market Information Development 10.000

3 Trade Promotion and Marketing Trails 28.000

4 Marketing Extension & Farmers‘ Group Formation 24.370

5 Marketing Infrastructure Development 37.500 Total 114.870 MINISTRY OF AGRICULTURE 77 MoA/28: BIO-SECURITY AND QUALITY ASSURANCE PROGRAMME A. Overview

1 Sector : Agriculture

2 Linkage to National : Synergizing Integrated Rural-Urban Development for poverty Development Objectives & reduction, food security and improved rural livelihoods through Strategies enhanced agricultural productivity, access and marketing.

3 Expected Results : At least 3 plant and animal quarantine stations fully equipped and functioning (from 0-3). 100% food handlers trained and licensed by 2013 from 0 in 2007. No. of HACCP certified companies increased by 100% (from 2 on 2007 to 4 in 2013. Quality of all commercial inputs regulated as per standards

4 Relevant MDG & SDG : MDG Goal1:Eradicate extreme poverty and hunger SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people in poverty by 2010 SDG Goal 3 Ensure adequate nutrition & dietary improvement for the poor 5 Donor Agency :

6 Target Group : Farming communities and traders 7 Scope : National

8 Status- Ongoing or new : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 117.185 m

11 External Financing Required : Nu. 117.185 m 12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : Bhutan Agriculture and Food Regulatory Authority

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Quality Control and Regulatory Services (QCRS) was instituted in 2000 as the relevant authority to ensure food quality control and regulation. It was renamed as Bhutan Agriculture and Food Regulation Authority in 2003. During the Ninth Plan, BAFRA offices were established in all

20 Dzongkhags, 5 entry points and the city service center in Thimphu. However, the sector is still constrained by the dire shortage of qualified manpower and the lack of infrastructural facilities. The Bio-Security and Quality Assurance programme will be implemented by BAFRA with the main objectives of preventing the entry, establishment and spread of pests and diseases that present risk to the heath and life of plants, animals and humans; ensuring that the available food in the market is safe for human consumption; promoting and facilitating trading in plants, animals and their products by providing pre-export and import quarantine measures; implementing a national bio- safety framework to regulate and facilitate safe transfer, handling and use of genetically modified organisms and their products; and minimizing the adverse effects on the ecology and ensuring sustainable use of biodiversity resources.

78 Tenth Plan Document, Volume 2 C. Strategy The key strategies for the Tenth Plan include development of basic infrastructural facilities, human 01 resource development, strengthening legislations and standards for inspection and certification. The priority for the Tenth Plan will include the strengthening of plant and livestock quarantine measures, input quality assurance, inspection and certification, developing laboratory services, MINISTRY OF AGRICULTURE food safety and quality assurance and development of basic infrastructure in the Dzongkhags. D. Results Framework Impact Outcome Output Projects/Activities Mean annual At least 3 plant and Acts, rules, regulations and Strengthening Plant & rural cash animal quarantine standards instituted and enforced Livestock Quarantine income stations fully Measures increased from equipped and Basic infrastructure including Nu.10,700 to functional (from 0-3) laboratory services developed and Development of Laboratory 35,000 operationalized Services Infrastructure 100% food handlers Proportion trained and licensed No. of HACCP certified companies Input Quality Assurance, of rural in food safety by increased by 100% (from 2 in 2007 Inspection and Certification households 2013 from 0 in 2007 to 4 in 2013) living below poverty Quality regulation At least 50% of the population Food Safety and Quality reduced from and standards aware of plant and animal Assurance 30.9% to 20% for agricultural, quarantine system, seed rules and agrochemical, and regulations, the pesticides act, the Office construction in 5 livestock produce food act and the livestock act of Dzongkhags developed Bhutan (increase from 0-50% in 2013 from No. Awareness in 2007) E. Management Arrangements Institutional arrangements The Bhutan Agriculture and Food Regulatory Authority of the Ministry of Agriculture shall be the overall execution, coordination and implementing agency of the programme. BAFRA shall also closely collaborate with other technical departments particularly in enforcement of the Acts such as Livestock Act, Nature Conservation Act, Pesticide Act, etc. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening Plant & Livestock Quarantine Measures 38.185

2 Input Quality Assurance, Inspection & Certification 16.000

3 Development of Laboratory Services 39.000

4 Food Safety and Quality Assurance 14.000

5 Infrastructure Development 10.000 Total 117.185 MINISTRY OF AGRICULTURE 79 MoA/29: NATIONAL BIODIVERSITY CONSERVATION PROGRAMME A. Overview

1 Sector : Biodiversity

2 Linkage to National : Synergizing Integrated Rural-Urban Development for poverty Development Objectives & reduction, food security and improved rural livelihoods through Strategies biodiversity conservation

3 Expected Results : 75% of crop and 50% of animal genetic resources characterized and documented; Representative of 5000 species of vascular plants collected and conserved;

4 Relevant MDG & SDG : MDG Goal1: Eradicate extreme poverty and hunger MDG Goal 7: Ensure Environmental Sustainability SDG Goal 1: Eradication of hunger poverty SDG Goal 2: Halve proportion of people in poverty by 2010 SDG Goal 3: Ensure adequate nutrition & dietary improvement for the poor SDG Goal 20: Conservation of Biodiversity 5 Donor Agency : 6 Target Group : National 7 Scope : National 8 Status – Ongoing or new : Ongoing/new 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 89.220 m

11 External Financing Required : Nu. 89.220 m

12 Executing Agency : Ministry of Agriculture

13 Implementing Agencies : National Biodiversity Center

14 Documents Available : Biodiversity Action Plan 2002; Biodiversity Act of Bhutan 2003; Sector Tenth Plan B. Situational Analysis The National Biodiversity Center was established in 1998 as a non-departmental agency under the Ministry of Agriculture. The main objectives of the center is to ensure effective conservation and sustainable utilization of genetic resources for sustainable livelihood and food security, and to ensure adequate national capacity to participate in global efforts to conserve and use biodiversity resources for food, agriculture development, industrial development and environmental conservation. Prior to and during the 9th Plan, the center focused on establishing infrastructure, building human resource capacity, and strengthening national and international cooperation. Some of the major activities undertaken during the 9th FYP were to develop the national herbarium and flora; conserve agro-biodiversity; conserve animal genetic resources; develop the Royal Botanical Garden and develop an integrated biodiversity information system. Additionally, the Biodiversity Action Plan was revised in 2002 and the Biodiversity Act of Bhutan enacted in 2003.

80 Tenth Plan Document, Volume 2 C. Strategy The key strategies that will be adopted for biodiversity conservation during the Tenth Plan are as 01 follows: • Strengthening gene bank, botanical garden and herbarium for ex situ and in situ; MINISTRY OF AGRICULTURE • Collection to facilitate conservation and sustainable utilization; • Strengthening inventory, survey, documentation and information management system; • Enhancing capacity of technical staff and farmers through on-farm management training; • Integration of conservation, research and development with effective utilization of genetic resources; • Strengthening collaboration with relevant international institutions; and • Commercialization/sustainable utilization of biological resources through bio- prospecting. D. Results Framework Impact Outcome Output Projects/Activities Mean annual 75% of crop 1 Field gene bank established Conservation and sustainable rural cash income and 50% of utilization of plant and animal increased from animal genetic 75% of crop and animal genetic resources Nu.10,700 to resources genetic diversity collected and 35,000 characterized preserved in the seed gene Establishment of National and documented bank Herbarium and Floristic Proportion of Botanical Garden rural households Representative 60% of the plants species living below of 5000 species from cool to warm temperate Development of poverty reduced of vascular plants ecological zones collected National Biodiversity from 30.9% to collected and Information 20% conserved National integrated biodiversity information established Development Infrastructure Pilot project on bio-prospecting initiated Implement bio-prospecting E. Management Arrangements Institutional arrangements The overall execution, coordination and implementation shall be carried out by the National Biodiversity Center under the Ministry of Agriculture. The center shall also coordinate with Research Centers, Nature Conservation Division and the Dzongkhags and Gewogs for implementation of the programme. MINISTRY OF AGRICULTURE 81 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Ex situ conservation and sustainable utilization of plant genetic resources for food and agriculture 20.970

2 In situ conservation, development and sustainable utilization of plant genetic resources 14.200

3 Animal genetic resources conservation and sustainable 19.150 utilization

4 National Herbarium and Floristic programme 8.500

5 Serbithang Botanical Garden 11.800

6 National Biodiversity Information Development and Management 4.600

7 Bio-prospecting 10.000 Total 89.220

82 Tenth Plan Document, Volume 2 MINISTRY OF EDUCATION Tenth Plan Document Volume 2 83

84 Tenth Plan Document, Volume 2 MoE/01: PRIMARY EDUCATION SERVICES 02 A. Overview 1 Sector : Education MINISTRY OF EDUCATION

2 Linkage to National : Vision 2020: Achieve universal primary education Development Objectives & Investing in Human Capital through education for poverty Strategies reduction and economic growth

3 Expected Results : Improved access and quality of primary education

4 Relevant MDG & SDG : MDG Goal 2: Achieve Universal Primary Education MDG Goal 3: Promote gender equality and empower Women. SDG Goal 13: Access to primary/communal school for all children, boys and girls SDG Goal 14: Completion of primary education cycle SDG Goal 15: Universal functional literacy SDG Goal 16: Quality education at primary, secondary and vocational levels 5 Donor Agency : 6 Target Group : School-going age children in the country

7 Scope : Dzongkhags and Gewogs 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 3003.440 m

11 External Financing : Nu. 3003.440 m Required 12 Executing Agency : Ministry of Education

13 Implementing Agencies : CAPSD, SPBD, Department of School Education, EMSSD, Programmes Division, Dzongkhag and Gewog Administrations

14 Documents Available : Education Sector Strategy 2003; Sector Tenth Plan B. Situational Analysis Primary education is universally agreed to be a prime driver of sustainable economic and social development. It further helps accelerate progress towards the achievement of development goals of other sectors in addition to the fact that a well educated population is a huge asset and a desirable end in of itself. Morevoer, investments in primary education pay off handsomely in the long term and have a notable impact in helping reduce poverty and inequity. Recognizing this, the Royal Government has continually invested in expanding primary education over all the five year plans and is well on track towards achieving all of its Education related goals and targets under the Millennium Development Goals. The country follows a seven-year primary education cycle including one year of pre-primary education. Over the years, the Royal Government has made concerted efforts to expand the coverage of primary education. In the Ninth Plan, 111 community primary and primary schools were established increasing the total primary enrolment from 93,974 in 2003 to 106,100 in 2008. Over the same period, the gross primary enrolment ratio increased from 81 % to 112%, while the net primary enrolment ratio increased from 62% to 88%. Currently, there are 355 primary and community primary schools in the country. MINISTRY OF EDUCATION 85 Progress made within the primary education programme over the last decade to meet the MDGs and the Education for All goals has placed enormous pressure on limited resources of teachers, facilities and finance and severely tested the capacity of the system to deliver Bhutan’s commitment to provide quality education for all. A major challenge therefore lies in maintaining a level of resources to support both expansion and qualitative development of primary education programme. C. Strategy The objective of the Primary Education Services programme during the Tenth Plan will be to expand access to primary education and improve the quality of learning amongst children. This objective will be strategically pursued through the physical expansion and development of school infrastructure, reforms and improvements to the school curriculum and promoting teacher- centered education. In order to increase access to school and ensure provision of primary education services within one hour walking distance from the communities, it is proposed to build 64 new CPS/PS during the Tenth Plan. Of this, 51 will be community primary schools in rural and remote parts of the country, and 13 will be primary schools in urban and semi-urban areas. In view of the increasing burden felt by the community, all CPS will be financed entirely by the government during the Tenth Plan. The existing community primary schools and primary level schools will also be renovated and expanded based on their physical condition. Where it is not feasible to build community primary/primary schools, extended classrooms (ECRs) will be established to ensure that education is made accessible to even the smallest catchment areas in the remotest and most scattered settlements. In the Tenth Plan, 99 ECRs are proposed be established across the country. To ensure sustainability, all ECRs, as far as possible, will be housed in outreach clinics, NFE centres, community learning centres, village houses, etc. Each ECR will be affiliated to the nearest CPS/PS for support with regard to teachers and resources. To provide supportive and positive learning environment for the children, the concept of child- friendly school initiated in the Ninth Plan will be institutionalized in all schools during the Tenth Plan. All other programmes will be geared towards developing a child-friendly environment in each of the schools. To address the concern about the quality of primary education, major curriculum reforms in various subjects for PP-VI will be carried out in the Tenth Plan. Since it is difficult to equip all schools with adequate teaching learning resources, rural primary schools in the country will be organized into geographical clusters and one central school in each cluster developed as resource center. The resource centers will be provided with copiers and computers as well as supplied with additional resource materials and reference books. To ensure that qualified teachers are available in rural and remote schools, proper work space and suitable housing will be provided. Further, teachers posted in these schools will be provided with incentives such as difficulty allowance and scarcity allowance including accelerated career advancement and special consideration for academic upgrading.

86 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 02 Schools provide positive and supportive learning environment Child-friendly schools and MINISTRY OF EDUCATION inclusive education Inclusive education programme piloted and replicated in all schools Functional ECRs and CPS/PS in Infrastructure development place Awareness among parents enhanced Enrolment on the importance of enrolling in primary children in school at the right age Support programme for education enhancement of enrolment in Students in rural and remote areas primary education Improve increased receive mid-day meals and other access and incentives to enroll and stay in school quality of and education Primary school curriculum reviewed Curriculum reform and Performance and reformed implementation of students improved Rural posting for teachers made more attractive Teacher development programme Teachers competently teach their students Functional RCS in place Multi-grade teaching strengthened Teaching-learning support strengthened Reform measures in place for improving quality of education E. Management Arrangements Institutional Arrangements The Dzongkhags will be responsible for executing all construction works. School Planning and Building Division (SPBD) under the Department of School Education will support Dzongkhags in terms of providing designs and master plan of schools, and monitoring of construction works to ensure standards and quality. CAPSD under Department of School Education will be responsible for coordinating and implementing the curriculum reform and improvement activities, and inclusive education. Human Resource Division under the Secretariat will be responsible for planning and managing human resources in the Ministry. MINISTRY OF EDUCATION 87 Indicative Costs # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Infrastructure Development 2277.340

2 Curriculum reform and implementation 320.950

3 Inclusive Education & Child friendly school services 13.850

4 Teacher-Development Programme 309.000

5 Teaching Learning Support 80.300

6 Support programme for enhancement of enrolment in primary 2.000 education Total 3,003.440 MoE/02: SECONDARY EDUCATION SERVICES A. Overview 1 Sector : Education

2 Linkage to National Development : Vision 2020: Achieve full enrolment in basic education. Objectives & Investing in Human Capital through education for poverty Strategies reduction and economic growth

3 Expected Results : Improved access and quality of secondary education

4 Relevant MDG & SDG : MDG Goal 2: Achieve Universal Primary Education MDG Goal 3: Promote gender equality and empower Women. SDG Goal 13: Access to primary/communal school for all children, boys and girls SDG Goal 14: Completion of primary education cycle SDG Goal 15: Universal functional literacy SDG Goal 16: Quality education at primary, secondary and vocational levels 5 Donor Agency :

6 Target Group : School-going age children in the country 7 Scope : National 8 Status-Ongoing or New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 5,279.370 m

11 External Financing Required : Nu. 5279.370 m

12 Executing Agency : Ministry of Education

13 Implementing Agencies : Department of School Education, CASPD, SPBD, Programme Division, EMSD, Dzongkhag Administrations

14 Documents Available : Education Sector Strategy 2003; Sector Tenth Plan B. Situational Analysis The secondary level education in Bhutan follows a six-year cycle comprising of two years of lower secondary, two years of middle secondary and two years of higher secondary school.

88 Tenth Plan Document, Volume 2 With the basic education level being raised from grade VIII to X, a majority of the students now proceed on to grade X and beyond. Enrolment in classes VII to X increased from 28,833 in 2003 to 40,855 in 2008. To accommodate this expansion, three lower secondary and eleven middle 02 secondary schools have been established, forty one community and primary schools have been upgraded to lower secondary schools and twenty lower secondary schools to middle secondary MINISTRY OF EDUCATION schools over the same period. Currently, there are 136 lower and middle secondary schools with the gross enrolment ratio and net enrolment ratio at basic education at 96% and 85% respectively. Due to the increased enrolment at the primary, lower and middle secondary education levels, and the Royal Government’s decision to raise the basic education to grade X, there has been a dramatic increase in the number of students continuing their education beyond grade X. A total of three higher secondary schools have been established and 9 middle secondary schools have been upgraded to secondary schools increasing the enrolment in classes XI-XII from 5804 in 2003 to 10,157 in 2008. There are currently 32 higher secondary schools including 8 private higher secondary schools in the country. Establishment of private schools is being encouraged to develop a more sustainable education system as well as to diversify choices for education to the public. Today, there are twenty four private schools in the country. With the quality of education being a thrust area during the Ninth Plan, major curriculum reforms and learning support programme were initiated, especially in the three tool subjects, viz. Dzongkha, English and Mathematics. Library books and science equipment have been supplied to secondary schools to enhance teaching-learning resources. Computer education has been introduced in 33 middle and higher secondary schools and will be expanded to other secondary schools. In collaboration with MoIC, about 100 primary teachers have been trained in basic computer education. The success at the primary level is now placing enormous pressures on the secondary and post- secondary levels leading to a critical shortage of secondary education places as well as the lack of an adequate number of qualified, competent Bhutanese teachers at this level of education. C. Strategy The objective of the secondary education development programme in the Tenth Plan is to enhance net enrolment in basic education level to near 90% and maintain the proportion of students continuing to class XI in government schools at approximately 40%. Secondary education programme shall also be made more relevant by realigning curriculum to meet the emerging needs of the Bhutanese economy. In order to improve and expand access to secondary education, 16 new secondary schools will be built in the Tenth Plan. Of this, one will be lower secondary school, 11 middle secondary schools and 4 higher secondary schools. 18 CPS/PS will be upgraded to lower secondary schools and 8 CPS/PS to middle secondary schools. 22 lower secondary schools will be upgraded to middle secondary schools and 1 to higher secondary schools, and 12 middle secondary schools to higher secondary schools. The existing secondary schools will also be developed and expanded based on their physical condition and future admission pressures. The possibility of extending bus services to transport children to nearby schools especially in the urban centres having good road networks will also be explored during the Tenth Plan. Curriculum reforms being undertaken in various subjects for secondary education during the Ninth Plan will be consolidated and institutionalized in the Tenth Plan. In addition, values and life skills education will be consolidated and integrated in all other subjects. The science curriculum for MINISTRY OF EDUCATION 89 Classes VII-XII will also be reviewed and reformed during the plan period. To further strengthen teaching and learning resources in the schools, the programme will support the provision of library books, science equipment, computers and peripherals. The use of CDs and e-learning materials shall be piloted for a range of subjects during the plan period. Further, provision is being kept for the training of general teachers in the use of IT through cluster based and school based workshops and seminars resourced by IT lead teachers. D. Results Framework Impact Outcome Output Projects/Activities Functional secondary schools in place Infrastructure development Improve Enrolment in SPBD staff competently support access and basic education Dzongkhags in school building and quality of increased monitor construction works for quality education assurance Staff of CAPSD competently review and Curriculum reform and reform school curricula implementation Performance Secondary school curricula reviewed of students and reformed improved Teacher development Teachers become IT literate programme All HSS and MSS are staffed with Teaching-learning support a computer technician and network strengthened Private operators administrator each establish private schools and Schools adequately equipped with international computers and accessories schools Relevant IT based learning materials in various subjects produced and distributed to schools Safe and reliable bus service in place in Support programme for selected schools enhancement of enrolment in basic education Policy guidelines for establishment of international schools in place Private School Unit facilitates and supports private school development Competency upgraded in the EMSSD and other Divisions under the Directorate A functional and reliable decentralized monitoring and professional support mechanism in place

90 Tenth Plan Document, Volume 2 E. Management Arrangements 02 Institutional Arrangements The Dzongkhags will implement all construction works. The School Planning and Building Division (SPBD) under the Department of School Education will support Dzongkhags in terms of providing MINISTRY OF EDUCATION designs and master plan of schools, and monitor the construction work to ensure standards and quality. CAPSD under the Department of School Education shall be responsible for curriculum reform and improvement and providing support for enhancing teaching-learning resources. IT Section under Programmes Division and CAPSD will jointly coordinate and implement IT related programmes and activities. The Private Schools Unit under Programmes Division shall be responsible for facilitating and guiding the establishment of private schools and international schools in the country and monitoring of quality standards. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Infrastructure Development 4724.810

2 Curriculum reform and implementation 261.700

3 Teaching-learning support 159.740 Support Programme for enhancement of enrolment in Secondary 4 133.120 schools Total 5,279.370 MoE/03: EARLY CHILDHOOD CARE AND DEVELOPMENT SERVICES A. Overview 1 Sector : Education

2 Linkage to National : Education Sector Strategy: All children aged 0-5 years will be Development Objectives & supported to enhance their intellectual, emotional and physical Strategies development that enables them to grow in their familiar and natural environment

3 Expected Results : Enhance intellectual, emotional and physical development of all children aged 0-5 years in their familiar and natural environment. Expanding and improving comprehensive early childhood care and education, especially for the most vulnerable and disadvantaged children

4 Relevant MDG & SDG : MDG Goal 2: Achieve Universal Primary Education MDG Goal 3: Promote gender equality and empower Women. SDG Goal 13: Access to primary/communal school for all children, boys and girls SDG Goal 14: Completion of primary education cycle SDG Goal 15: Universal functional literacy SDG Goal 16: Quality education at primary, secondary and vocational levels 5 Donor Agency :

6 Target Group : Children between 0-5 age group MINISTRY OF EDUCATION 91 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 3.450 m

11 External Financing Required : Nu. 3.450 m 12 Executing Agency : Ministry of Education (MoE)

13 Implementing Agencies : Early Childhood Care and Development (ECCD) Unit under Department of School Education, MoE, Dzongkhags and day care centres

14 Documents Available : Education Sector Strategy 2003; Sector Tenth Plan B. Situational Analysis The Government’s long term education vision is to ensure all children in the 0-5 age group are supported to enhance their intellectual, emotional and physical development through a programme that enables them to grow in their familiar and natural environment. Constrained by the lack of resources and expertise on ECCD, the Royal Government followed two simple but practical approaches to ECCD. The first was through family-based approaches, which aimed to enhance and promote sound parenting and care practices for young children in the home environment, especially in rural areas. The second was through the use of day care centers, which primarily focused on early learning, and activity centers for young children in urban areas using private providers. An ECCD unit was established within the Department of School Education and draft ECCD policy guidelines prepared to guide the development of the ECCD programme. In order to promote early childhood care and learning, relevant ECCD material have been produced and disseminated through both radio and television. Parenting guides on ECCD have also been developed in Dzongkha and are being implemented as part of the Post Literacy Course curricula for NFE learners. As part of the initiative to provide good child practices and early learning in urban areas, ten day care centers have been established. Since the day care centers are new, constant support in terms of professional development of teachers and learning materials are being provided by the ECCD Unit. C. Strategy The immediate objective of this programme within the Tenth Plan period is to continue to establish expertise within the Ministry of Education by identifying good ECCD practices both within the country and in the international scene, and training a core group of people in ECCD. To build up national expertise on ECCD, the programme over the Tenth Plan will provide trainings in the area of child psychology and development for a core group of people who will be placed in various regions or school clusters to work with good Day Care Centers besides developing ECCD practices in the regular schools. As in the Ninth Plan, good ECCD practices will be produced, advocated and disseminated over TV and radio. This will be complemented by the development of ECCD materials to be used in the non-formal education programme and training of the selected NFE instructors in ECCD practices. A review of the ECCD programme is also envisaged to suggest measures for further development and expansion of the ECCD programme.

92 Tenth Plan Document, Volume 2 The Royal Government will continue to promote good child practices and early learning in urban areas by encouraging the establishment of day care centers using private providers. The draft policy guidelines shall be finalized and policy mechanisms put in place to guide and support the 02 establishment of day care centers. In addition, selected caregivers from day care centers will also be sent trained on ECCD practices. MINISTRY OF EDUCATION D. Results Framework Impact Outcome Output Projects/Activities Competency of teachers, NFE Development of expertise instructors, DEOs and Principals on and promotion of ECCD enhanced to provide ECCE Intellectual, More parents Parents knowledge on sound emotional engage in ECCD ECCE increased through media and physical practices development of all Relevant ECCE materials Material development on children aged 0-5 developed and supplied to NFE ECCD Private operators years enhanced and Day Care Centres more day care in their familiar centres in urban Enabling policy in place for Policy development and natural areas establishment of day care environment centres ECCD Unit provided with Support to the ECCD Unit furniture and equipment E. Management Arrangements Institutional Arrangements The programme shall be coordinated and implemented by the ECCD unit under the Department of School Education, MoE. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Development of expertise on and promotion of ECCD 2.300 Material development on ECCD 0.500 Policy development 0.400 Support to the ECCD Unit 0.250 Total 3.450 MINISTRY OF EDUCATION 93 MoE/04: SPECIAL EDUCATION SERVICES A. Overview 1 Sector : Education

2 Linkage to National : Education Sector Strategy: All children with disabilities Development Objectives & and special needs provided with access and benefit from Strategies education; Sector Tenth Plan: Establish a programme of inclusive education to enable all children to participate in and benefit from the education process.

3 Expected Results : Children with disabilities and those with special needs enabled to access education in regular schools 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Children with disabilities and special needs 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 66.580 m

11 External Financing Required : Nu. 66.580 m 12 Executing Agency : Ministry of Education (MoE)

13 Implementing Agencies : Special Education Unit, Department of School Education, MoE, Dzongkhags and Schools

14 Documents Available : Education Sector Strategy 2003; Sector Tenth Plan B. Situational Analysis The long-term objective of the Special Education Services Programme is to provide access for all children with disabilities and special needs, including those with physical, mental and other types of impairment, to general education in regular schools. The Royal Government will thus seek to maintain an inclusive approach to improve educational access to and meet the special needs of those with physical disabilities and learning impediments. In the Ninth Plan, a Special Education Unit was established within the Department of School Education and a draft Special Education Policy and Guidelines was formulated. The existing National Institute for the Disabled at Khaling was partially rebuilt and expanded to accommodate additional students with impaired vision. In Thimphu, a new resource center to help children with special needs (mental and physical impairments) was established at Changangkha Lower Secondary School (LSS). To cater to the education of hearing impaired children, sign language in Bhutanese was developed and a deaf education center established at the Drugyal LSS in Paro.

94 Tenth Plan Document, Volume 2 C. Strategy The objective of this programme during the Tenth Plan is to provide enhanced special education 02 services to the children with a wide range of disabilities including learning difficulties by providing support facilities in selected schools across the country. MINISTRY OF EDUCATION The Tenth Plan will support the development of additional physical facilities in the National Institute of Disabled, Khaling and the Deaf Education Center in Drukgyal to cope with the increasing enrolment pressure for the special education services. Further, five more special education centers will be established on the Changangkha model to allow children with special needs to access general education in regular schools. To develop national capacity and expertise, the plan will support training on special needs education. Teaching-learning materials will also be provided to strengthen the special education services in the existing and new centers. D. Results Framework Impact Outcome Output Projects/Activities Expansion of special Children with Children with Functional centres for special education services disabilities disabilities education in place and those including those Competency of teachers strengthened Teaching-learning support with special with learning to provide special education for special education needs enabled difficulties services to access enroll in regular Special education centres supplied education in schools with relevant teaching-learning regular schools materials E. Management Arrangements Institutional Arrangements The programme shall be coordinated and implemented by the Special Education Unit of Department of School Education, MoE. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Expansion of Special Education Services 63.910

2 Teaching-learning support for Special Education Services 2.670 Total 66.580 MINISTRY OF EDUCATION 95 MoE/05: ADULT LITERACY & CONTINUING EDUCATION SERVICES A. Overview 1 Sector : Education

2 Linkage to National : Vision 2020: Achieve full adult literacy rate for all by 2017 Development Objectives & Sector Tenth Plan: Achieve adult literacy of 70% by 2013 Strategies Investing in Human Capital for poverty reduction and broad based growth through improved literacy Education Sector Strategy: Create a learning society through a system of continuing and life long education opportunities

3 Expected Results : Adults and out-of-school youths enroll in non-formal education and complete the basic literacy course; Interested learners enroll in Continuing Education Programme and upgrade their academic qualifications; 4 Relevant MDG & SDG : SDG Goal 15: Universal functional literacy 5 Donor Agency :

6 Target Group : Adult population particularly in the rural areas 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 48.550 m

11 External Financing : Nu. 48.550 m Required 12 Executing Agency : Ministry of Education (MoE)

13 Implementing Agencies : Non-Formal Education Division, (Department of Adult and Higher Education), MoE, Dzongkhag and Gewog Administrations

14 Documents Available : Education Sector Strategy 2003; Sector Tenth Plan B. Situational Analysis Literacy is deeply linked to all aspects of life and livelihood and is unquestionably a powerful instrument for empowerment and upliftment. It remains an essential condition for sustainable socio-economic development and a critical tool to eradicate poverty, enhance employment opportunities, advance gender equality, improve family health, conserve the environment and promote democratic participation. In particular, there is a close and deep interrelationship between illiteracy and poverty at the global, national, and local levels with countries and communities with the lowest levels of literacy doing poorly. Poverty breeds illiteracy and vice versa in a vicious cycle that is often hard to break. Hence tackling poverty as a prime objective and theme of the Tenth Plan will also depend on how effectively the high rates of adult illiteracy are tackled in Bhutan, particularly in rural areas. The Population and Housing Census of Bhutan 2005 report the national literacy rate at 60% and adult literacy rates at 53%. While national baseline data on literacy is still lacking and will need to be developed, the PHCB 2005 census data nevertheless indicates a low level of literacy by both international and regional standards. It is thus a key area for improvement to scale up Bhutan’s

96 Tenth Plan Document, Volume 2 progress towards achieiving its human development goals and attaining the MDGs. The low levels of prevailing literacy could also hinder achievement of the country’s development aspiration to emerge as a knowledge-based society in the long term and prospects for realizing GNH. 02 The Royal Government’s approach to address the challenge of illiteracy has been based on expanding access to basic school education and non-formal adult education. The rapid gains in primary and MINISTRY OF EDUCATION secondary education enrollment and improvements in educational attainment provide reason for optimism that in time Bhutan will be able to quickly scale up its literacy levels. Additionally, Bhutan has also enjoyed particular success with its Non Formal Education Programme, aspects of which are highlighted below. The non-formal education (NFE) programme has gained widespread popularity as it is an effective programme for providing basic literacy and functional skills amongst the adult population, particularly in rural areas. The programme has expanded from 365 centres with 428 instructors in 2003 to 747 centres with 736 instructors in 2008. Over the same period, the number of learners increased from 12,838 to 13,829. Within the Ninth Plan, twenty new community learning centres were also established and supplied with basic furniture and equipment including computers and teaching aids. To ensure the quality of the literacy programme, the capacity of NFE instructors has been upgraded through relevant trainings. Awareness campaigns and workshops were also conducted for local leaders and village representatives who also act as local NFE committee members. Furthermore, reading materials for the basic literacy and post literacy programmes were developed and supplied to the NFE centres. In order to institute a system of continuous learning and to provide school leavers with an opportunity to upgrade their academic qualifications, the continuing education programme was initiated in one of the private high schools in Thimphu. The programme is now also offered in Chukha and Paro. A total of 577 learners are currently enrolled in this programme. C. Strategy Given the SDG goal of achieving universal functional literacy and the national objective of achieving 70% literacy by 2013, the NFE programme has a major role to play in increasing the literacy rate to these levels. Therefore, an in-depth study of the NFE programme will be conducted and the result of the study will be used to guide further development and expansion of the programme in the Tenth Plan. Owing to the shortage of NFE materials, there is a need to develop curriculum materials for both basic and post literacy. The Tenth Plan will continue to support the development and printing of new literacy materials and training manuals for vocational skills including reprinting of Basic literacy course (BLC) and post literacy course (PLC) materials. Based on the recommendations of the review of the NFE programme envisaged during the plan period, the NFE Division will devise and implement innovative ways to promote non-formal education. Apart from conducting awareness campaigns over radio and TV, it will increasingly organize inter-Dzongkhag and inter-Gewog competitions to raise the literacy level, etc. MINISTRY OF EDUCATION 97 Community learning centers (CLCs) will be established and strengthened in schools and NFE centers through the provision of basic equipment including computers and teaching aids. Availability of such facilities will also provide post-literacy opportunities for continuous/lifelong learning and acquiring functional literacy. D. Results Framework Impact Outcome Output Projects/Activities A comprehensive NFE-policy in place Non-formal education Create a learning Adults and out- Tested, relevant and easy to use NFE programme society through of-school youths curriculum in place a system of enrol in non- continuing and life formal education Trained NFE -instructors competently long education and complete deliver NFE courses opportunities the basic literacy course Functional centres in place Reliable data on literacy in Bhutan available Attain adult Interested Awareness on literacy enhanced literacy rates of learners enroll 70% in continuing A comprehensive long term strategy for Continuing education education CE in place programme programme and upgrade their Access to continuing education qualifications increased CE-staff and CE-tutors confidently organize CE programme E. Management Arrangements Institutional Arrangements The programme shall be coordinated and implemented by the Non-Formal Education Division of the Department of Adult and Higher Education. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Non-Formal Education Programme 44.600

2 Continuing Education Programme (of the Nu. 3.95 m, Nu 1.50 3.950 m is for tertiary education) Total 48.550

98 Tenth Plan Document, Volume 2 MoE/06: SCHOLARSHIP SERVICES 02 A. Overview 1 Sector : Education MINISTRY OF EDUCATION

2 Linkage to National : Investing in Human Capital through expanding access to Development Objectives & higher education and promoting excellence in education Strategies Sector Tenth Plan: Ensure steady supply of sound and qualified manpower to support and sustain socio-economic development of the country

3 Expected Results : Graduates meet the human resource requirements of the country in the areas of critical shortages 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Undergraduate Students 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 657.780 m

11 External Financing Required : Nu. 657.780 m 12 Executing Agency : Ministry of Education (MoE)

13 Implementing Agencies : Scholarship Division, Department of Adult and Higher Education, MoE

14 Documents Available : Sector Tenth Plan, B. Situational Analysis High quality tertiary education obviously confers enormous benefits to any society by expediting the use and adaptation of innovative and modern technologies in a modernizing economy and in growing the national stock of human capital. Even as the number of college graduates have been increasing significantly each year in Bhutan, at present they comprise less than a percentage point of the country’s entire population and a mere 1.4% of the total labour force. An increased number of higher qualified and university educated professionals in the workforce will be needed if the country is to build its human capital to realistically achieve its strategic objective of vitalizing industry and sustained growth. The undergraduate scholarship programme provides avenues and opportunities for potential post- secondary students to pursue their bachelors’ degree in various fields of science, engineering, law, medicine, education, information technology including arts and humanity areas as prioritized by the Royal Government. It plays a significant role in terms of addressing the future manpower requirements across all sectors of the economy. Under this programme, scholarships are awarded annually based on academic merit to eligible Class 12-passed students who fulfill the set of selection criteria as per the announcement in various disciplines. A majority of the scholars are placed in key institutes and universities in India and the region for purposes of academic cross-fertilization and diversity. The continued assistance from GoI has enabled the Government to implement the scholarship very effectively and successfully. MINISTRY OF EDUCATION 99 Out of the 540 undergraduate slots planned during the Ninth Plan, 615 slots have been implemented in the various fields of engineering, medicine, science, agriculture and humanity areas. The actual implementation of undergraduate scholarships exceeded what was originally planned due to an extension of the 9th FYP. C. Strategy The undergraduate scholarship programme (UGP) is being implemented by the Scholarship Division under the Department of Adult and Higher Education. In the Tenth Plan, the main objective of this programme is to address the shortage of human resources in the areas of critical needs through effective management of undergraduate scholarships in the region and abroad. Based on a review and reprioritization exercise of the human resource needs in the various ministries/agencies and stakeholders, 600 scholars will be placed for various scholarships during the plan period. However, the main focus of the scholarships offered would be in the professional fields where the shortage of qualified manpower is critical. The Scholarship Division, under MOE shall continue to establish and expand linkages with key institutions/universities in the region to improve the placement of scholars as well as monitor the quality and standards offered in these institutions. Other than securing placements and finding relevant courses, benefits of such linkages will include the possibility of cost-sharing and exchange. D. Results Framework Impact Outcome Output Projects/Activities Ensure steady supply Graduates meet the Students are placed in reputed of sound and qualified human resource and recognized institutions manpower to build human requirements of the capital for vitalizing industry country in the areas Scholarship Programme and sustaining socio- of critical shortages economic development of Capacity of Scholarship the country Division strengthened E. Management Arrangements Institutional Arrangements The Scholarship Division under the Department of Adult and Higher Education, MOE will be responsible for the implementation of this programme. The Division will also be responsible for the placement of scholars in the universities/institutions within the region and abroad. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Scholarship Services - 475 scholarships to be provided in India 657.780 - 125 scholarships to be provided in others Total 657.780

100 Tenth Plan Document, Volume 2 MoE/07: BHUTAN BOARD OF EXAMINATIONS 02 A. Overview 1 Sector : Education MINISTRY OF EDUCATION

2 Linkage to National : Improve the quality and relevance of education Development Objectives & Enhance standards of excellence in education for upgrading Strategies the quality of human capital

3 Expected Results : Students avail maximum opportunities to perform well in the examinations that reflect the true picture of their performance; Educational standard in the country measures overtime using National Education Assessment (NEA) 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Students 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 30.750 m

11 External Financing Required : Nu. 30.750 m 12 Executing Agency : Ministry of Education (MoE)

13 Implementing Agencies : Bhutan Board of Examinations, MoE, Dzongkhags and schools

14 Documents Available : Sector Tenth Plan B. Situational Analysis An important component of any education system is the testing and assessment mechanism which not only helps to maintain uniformity of educational standards across the system but also assesses the quality and relevance of the curriculum. During the Ninth Plan, National Education Assessment (NEA) in Class VI and Class X for English, Dzongkha and Mathematics was completed and a bench mark of standards at these levels established. The examinations and certification of Class X students have been fully nationalized from 2001 by taking over the examinations from the Indian Council for Secondary Education. From 2006, the class XII examination was also nationalized and conducted by the Bhutan Board of Examinations. C. Strategy In the Tenth Plan, NEA for Class VI in English, Mathematics and Dzongkha and for Class X English and Mathematics will be repeated to monitor and gauge students’ competencies in these subjects. In future, the NEA will be conducted at regular intervals (usually 3 to 5 years) to gauge the standard of education and provide useful feedback towards improving the quality of education. The BBE maintains considerable amount of confidential examination data. The existing office space is extremely inadequate in terms of space required for carrying out activities such as result processing, question paper development, moderation, evaluation and maintaining confidentiality and high security. Therefore, a secretariat building is proposed for housing the BBE. MINISTRY OF EDUCATION 101 D. Results Framework Impact Outcome Output Projects/Activities NEA for Cl VI and X in Examination Students avail maximum opportunities English, Math and Dzongkha Services Improve the to perform well in the examinations that in place quality and reflect performance BBE-staff competently relevance organizes the annual of Educational standard in the country examination and supports education measures overtime using National schools in assessment Education Assessment (NEA) Provide conducive work environment for BBE staff E. Management Arrangements Institutional Arrangements The Bhutan Board of Examination under Ministry of Education will be responsible for the implementation of National Education Assessment. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Bhutan Board of Examinations 30.750 Total 30.750 MoE/08: YOUTH AND SPORTS SERVICES A. Overview 1 Sector : Education

2 Linkage to National : Wholesome development of children and youth Development Objectives & Strategies

3 Expected Results : Bhutanese youth provided with wholesome education and nurtured to become useful and productive citizens 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Youths of Bhutan 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 327.700 m

11 External Financing Required : Nu. 327.700 m

12 Executing Agency : Ministry of Education (MoE)

13 Implementing Agencies : Department of Youth, Culture and Sports, MoE 14 Documents Available : Sector Tenth Plan

102 Tenth Plan Document, Volume 2 B. Situational Analysis Sports, games and recreational initiatives that incorporate the best values of sports can be powerful, 02 practical and cost effective tools to achieve holistic child and youth development. It can help foster healthy development of children and youth and inculcate positive values and life skills besides strengthen their education and improving student health and well being. MINISTRY OF EDUCATION In an effort to combat emerging youth issues and support parents and schools in tackling them, the School-Based Parenting Education and Awareness Programme (SPEA) was introduced in 91 schools across the country. Materials on parenting, substance abuse, adolescent reproductive health were also developed and 182 focal teachers for SPEA trained through orientation programmes. During the Ninth Plan, the Career Education and Counseling Programme was also institutionalized in all secondary schools. To support the counseling programme, 433 school counselors were trained in counseling and placed in secondary schools. Furthermore, materials for career education were developed and supplied to schools. In view of the emerging mismatch between the job market and expectations of school leavers, and to familiarize youth with career prospects in various vocational skills, school based vocational education programme has been introduced in some secondary schools in the form of vocational clubs. 24 vocational instructors were placed in secondary schools and vocational education materials were supplied to 39 vocational clubs. The scouting programme has been strengthened as an integral part of the wholesome development of youth and expanded to all 20 Dzongkhags. For effective management of the programme, 93 scout masters were trained and relevant materials developed and supplied to schools to support the programme. To promote values and cultural education in schools, choeshed and cultural programmes were also enhanced. Given the importance of sports in the wholesome development of a child, the School Sports Programme was institutionalized and intra-Dzongkhag and regional sports meets decentralized. Further, sports administrative guidelines were developed and basic equipment supplied to all schools. However, the absence of trained physical education teachers still remains a constraint for the school sports programme. A Youth Center was established in Thimphu that provides youth information and dissemination services, counseling, computer training, and educational and recreational facilities for youth, including hostel facilities. In order to create awareness on health and social issues such as HIV/ AIDs, drug abuse, unemployment, legal issues, several workshops and training programmes were conducted in Thimphu for out of school youth. The comprehensive school health programme conducted in collaboration with the Ministry of Health, was continued throughout the Ninth Plan to further promote child and adolescent health. Teachers were trained in important areas such as life skills education in adolescent reproductive health, adolescent mental health, HIV/AIDs, STIs, hygiene and sanitation and first aid. In order to ensure that the learning environment is healthy and safe in schools, the Plan also supported the provisioning of water and sanitation facilities. MINISTRY OF EDUCATION 103 C. Strategy The objective of this programme during the Tenth Plan will be to promote wholesome development of children and youth by consolidating the personal development and value education programmes, including helping students develop multi-skills for different job markets. To this end, youth guidance and career counseling shall be further improved and expanded. In the Tenth Plan, career education programme will be strengthened by appointing career education focal persons with basic level counseling in all secondary schools. A system of referral in counseling services will also be piloted. This will be complemented by enhanced professional interaction amongst career focal teachers through cluster level workshops led by senior and master teachers. To support the counseling programme, counselors with school level counselor training will be placed in all secondary schools. The School Based Parenting Education and Awareness programme shall be expanded and clear policy guidelines developed to guide its implementation. The capacities within school clusters and Dzongkhags will be strengthened through training of trainers and orientation of teachers and parents on school based parenting education. To increase awareness on SPEA programme, relevant audio/video and print materials will be developed and disseminated through the media and other means. To provide the students with orientation to technical and vocational education, vocational clubs will be expanded in middle and higher secondary schools. However, this will be based on the results of the review of the programme that will be undertaken during the plan period. The comprehensive school health programme will be strengthened by providing additional staffing and relevant trainings. To guide and support the development of the programme, a policy and strategy document for school health will be developed. Hygiene and sanitation facilities in schools will be further improved by providing sanitary toilets and safe drinking water supply. To increase their awareness amongst students on emerging health concerns, workshops and various activities will be implemented. Further, a mechanism will be instituted for early detection of health problems in schools. The scouting and cultural education will be further promoted and expanded to facilitate wholesome development of the Bhutanese youth. To this end, the scout membership will be increased to 55,000 by the end of the Tenth Plan and value based training including youth cultural exchange will be organized to broaden the thinking of youth and provide exposure to the people and cultures of other countries. While the scouting programme has grown rapidly over the years, its quality has been affected due to the lack of a training center in the country. Therefore, a Scouts Training Center is in Paro. To encourage maximum participation of youth in sports, the plan will continue to support different sporting activities at the Dzongkhag and national levels. A comprehensive national policy for school sports will be developed to promote sports in a strategic and coherent manner within the overall objective of wholesome education. To support the programme, full-time sports coaches/ coordinators will be appointed on contract in schools and trained through Training of Trainers on an annual basis. The Games and Sports Division will also be strengthened with additional staff and relevant trainings. The youth services will be expanded in the Tenth Plan by establishing 15 Youth Centres in districts with sizeable youth population. The Youth Center in Thimphu will continue to provide information services such as Internet and library facilities as well as youth information workshops/seminars to engage Bhutanese youths particularly out-of-school youths in meaningful and productive

104 Tenth Plan Document, Volume 2 educational, social and cultural. The Education Media Unit, which is currently placed within the Department of Youth and Sports MOE, will also be strengthened to produce and disseminate educational programmes. 02 D. Results Framework MINISTRY OF EDUCATION Impact Outcome Output Projects/Activities Wholesome Students participating Staff of CECD competently organize Career Education development in CEC programmes career and personal counseling and Counseling of children and plan career better programmes in Bhutan programme youth Increased awareness and knowledge Shortage of trained among students on various career counselors in schools options reduced A functional counseling institute in Students participating place in counseling Increased awareness and knowledge programmes improve among students on the dangers of behavior unhealthy behavior Parents participating Increased awareness among in SPEA programme participating parents on the guide children better importance of school based parenting, education and awareness Students consider programmes non-white collar jobs an option SBVE-unit competently assists schools in setting up vocational clubs Students participating in vocational clubs learn and practise vocational skills Healthy young Staff of School Health Division (SHD) Comprehensive people in a safe and competently execute school health school health supportive learning programmes programme environment A comprehensive policy and strategy document on school health in place School health coordinators competently implement school health programmes Functional hygiene and sanitation facilities in place in schools Provide skills based health education on emerging health concerns of young people Improved early detection of health problems mechanism in place MINISTRY OF EDUCATION 105 Scouting programme Scouts are well-informed on scouting Scouts Programme expanded and and life skills programmes strengthened Trained scouts masters competently implement scouts programme Schools have access to adequate scouting equipment and materials to run scout programmes A functional scouts training centre in place A comprehensive reform measures in place to improve the quality of scouting programme Scout membership registration made easier, and reliable data on scouts available More students participate in cultural education and choeshey programme Healthy and energetic Functional sports facilities in place in Games and sports young people 15 more YCs in places having sizeable programme youth population A master plan developed for the establishment of a national physical education and sports institute Trained teachers/coaches competently organize games and sports in schools A comprehensive national policy for school sports in place Maximum number of students participate in games and sports Staff of GSD competently organize games and sports in Bhutan Viewers of media Media section strengthened to Education media programmes change produce innovative programmes that services behaviour according meet the needs of a variety of clients to message of the within the ministry programmes Improved access to educational and information for students, teachers and public Increased appreciation, knowledge and skills among class X and XII school leavers in video handling, music and theatre production More youths engage Functional Youth Centres in place Youth Centre in meaningful and Services productive, social, Youth policy in place sports and cultural programmes Youth centre provide a platform for youth related activities

106 Tenth Plan Document, Volume 2 E. Management Arrangements Institutional Arrangements 02 The programme will be managed and executed by the different Divisions and units under the Department of Youth, Culture and Sports, MoE in coordination with the Dzongkhags, schools and MINISTRY OF EDUCATION national sports federations. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Career Education and Counseling 113.700

2 Scouts Programme 68.450

3 Sports and Games 57.020

4 Youth Centre Services 27.930

5 Media Services 12.000

6 Comprehensive school health services 48.600 Total 327.700 MINISTRY OF EDUCATION 107

108 Tenth Plan Document, Volume 2 MINISTRY OF ECONOMIC AFFAIRS Tenth Plan Document Volume 2 109

110 Tenth Plan Document, Volume 2 MEA/01: PROMOTION OF DOMESTIC AND FOREIGN TRADE 03 A. Overview 1 Sector : Trade MINISTRY OF ECONOMIC AFFAIRS

2 Linkage to National Development : Vitalizing Industry and Synergizing Integrated Rural- Objectives & Strategies Urban Development for economic growth, poverty reduction, employment generation and private sector development. 3 Expected Results : Increased opportunities for employment and income generation in the private and rural sectors

4 Relevant MDG & SDG : MDG Goal 1 Targets 1 and 2: Eradicate Extreme Poverty and Hunger MDG Goal 8: Target 12: Develop further an open, rule- based predictable, non- discriminatory trading and financial system All SDG Livelihood Goals but mainly linked to Goal 1: to Eradicate Hunger Poverty and Goal 2: to Halve poverty by 2010 5 Donor Agency :

6 Target Group : Prospective entrepreneurs and traders 7 Scope : National 8 Status-Ongoing/New : New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 84.500 m

11 External Financing Required : Nu. 84.500 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Department of Trade

14 Documents Available : Sector Tenth Plan B. Situational Analysis Bhutan’s trade volume has increased significantly over recent years though it remains largely concentrated in the SAARC region with about 80 percent of its total trade with India. Bhutan is also a highly open trade economy with the total volume of exports and imports at Nu. 37.78 billion, approximately the value of over 90% of GDP in 2006. While at present the share of trade with the rest of the world remains small, it is envisaged that this will invariably expand as its markets diversify. It is therefore imperative that the Bhutanese economy mature and develop effectively to become competitive and successful in a highy competitive global trading regime. The Royal Government has actively pursued the promotion of more liberalized trade arrangements at bilateral, regional and international levels while progressively reducing import tariffs and removing export taxes to lower trade barriers and restraints. This has also been accompanied by significant domestic reforms to further facilitate domestic and foreign trade. Bhutan is currently a member of SAFTA and BIMST-EC while the accession to the WTO is at an advanced stage. Bilaterally, it has had a formal agreement on free trade and commerce with India since 1972 which is renewed periodically. Bhutan also has a Preferential Trading Arrangement (PTA) with Bangladesh and is seeking to sign additional PTAs with other countries in the region including Thailand. MINISTRY OF ECONOMIC AFFAIRS 111 While Bhutan acknowledges that certain rules, processes and aspects of the WTO are imbalanced and to the disadvantage of developing countries, it also recognizes the opportunities and benefits that come with participation in the multilateral trading system. Membership in the WTO would enable Bhutan to enjoy much better access to markets of member countries as there is a need to diversify markets beyond the traditional ones. Further, joining the WTO would not only streamline national trade policies but also lead to greater transparency in governance and an environment more conducive to vitalizing industry and synergizing integrated rural-urban development to help meet its Tenth Plan objective of poverty reduction. The growth of the trading sector is also apparent from the increase in the issuance of trade licenses. As of 31st December 2007, a total of 11,442 trade licenses were issued. All regional offices have been computerized with the designing and development of the Licensing Database System and Micro- trade has been de-licensed. Guidelines and rules & procedures for imports from third countries have also been prepared. Efforts are also underway to develop a legal framework, streamline trading activities and licensing processes, enhance brand building of national products, and improve access to trade and business information and services. C. Strategy To achieve greater economic efficiency and healthy competition in the trading sector, the Department of Trade will continue to direct efforts to create an enabling environment through necessary legislation and regulations, such as development and implementation of the Consumer Protection Act and Competition Policy. Existing rules and procedures, tax incentives, financial schemes (credit guarantee scheme, export insurance scheme), etc will also be reviewed. Enhancing the capacity of the private sector, branding national products, improving access to information, awareness creation and facilitating trade through the establishment of dry ports and industrial estates will be given priority in the Tenth Plan. Bhutan’s effective integration into the regional and international trading systems through bilateral and regional arrangements and access to WTO on the right terms will be continued. As there are no designated event hosting sites in the country to conduct events such as trade fairs and exhibitions, the construction of a Trade Promotion/Exhibition Center was considered initially. The proposed construction of such a center has now been merged with the construction of a MICE center (meeting, incentives, conference and exhibition) that is to be developed under a proposed Tenth Plan programme under the Ministry of Works and Human Settlements.

112 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Share of Trade to An enabling Consumer Protection Development of consumer MINISTRY OF ECONOMIC AFFAIRS GDP increased to environment for Act and Competition protection Act and Competition 8% growth of private Policy developed and Policy sector throught trade implemented Enhance exports by and commercie Streamlining distribution channels 50% from levels in created Distribution channels and Reviewing trade regulations 2007 streamlined and and import from third countries More Bhutanese are regulations and Enhance engaged in trading import from third Promotion and integration into the contribution of trade and commerce countries reviewed regional and multilateral trading to national revenue activities systems to 25% Dry port established Reduced transaction in Phuntsholing Establishment of dry port at Increase costs for trade and Phuntsholing employment in commerce Postive Brand Image sector to 6% of total for Bhutanese Export promotion and marketing work force products effectively by improving quality, developing created brand image for national products, and creating awareness and education E. Management Arrangements Institutional Arrangements The Department of Trade will be responsible for execution of the programme in close collaboration with other relevant sectors and the Bhutan Chamber of Commerce & Industry (BCCI). The actual implementation of the programme will be done by the respective divisions. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Promotion of domestic trade 14.500 1.1 Development of Consumer Protection Act 10.000 1.2 Development of Competition Policy 1.000 1.3 Streamlining of Distribution Channels 1.000 1.4 Market Modernization 1.000 1.5 Trade Regulation & Monitoring 1.000 1.6 Review Regulation of Import from Third Countries 0.500

2 Promotion and integration of trade into Regional 6.000 and global market 2.1 Trade negotiation at regional level such as SAFTA, 0.500 BIMSTEC 2.2 Negotiation of bilateral trade agreements 0.500 2.3 WTO Accession 5.000 MINISTRY OF ECONOMIC AFFAIRS 113

3 Trade facilitation 0.000 3.1 Establishment of dry ports 0.000

4 Export promotion and development 64.000 4.1 Exporter promotion and marketing 4.000 4.2 National branding programme 40.000 4.3 Quality development programme 20.000 Total 84.500 MEA/02: DEVELOPMENT & MANAGEMENT POL SERVICES PROGRAMME A. Overview

1 Sector : Trade

2 Linkage to National : Vitalizing Industry through balanced regional development Development Objectives & Strategies

3 Expected Results : Regionally balanced and timely supply of quality POL products in the country

4 Relevant MDG & SDG : MDG Goal 1:Eradicate Extreme Poverty and Hunger SDG Goal 2: Halve poverty by 2010. SDG Goal 4: Ensure a Robust Pro-poor Growth Process SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups SDG Goal 6: Reduce social and institutional vulnerabilities of the poor, women and children 5 Donor Agency :

6 Target Group : Potential local dealers 7 Scope : National 8 Status-Ongoing/New : New/ongoing 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu.18.000 m

11 External Financing Required : Nu.18.000 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Department of Trade & Local dealers

14 Documents Available : Marketing Principle Guidelines, Control Order, Explosive Norms, and Sector Tenth Plan B. Situational Analysis The development of Petroleum Oil and Lubricant (POL) infrastructure with emphasis on quality control is essential to improve the present state of POL management and operational services. Except in urban centers and few bigger dzongkhags, existing fuel stations still utilize outdated barrel feed pump mechanisms. As a result, there is a valid concern on the poor quality of fuel and its adverse impact on air pollution.

114 Tenth Plan Document, Volume 2 The construction of a POL laboratory under GoI funding was undertaken in the Ninth Plan to enhance the capacity of POL management and its services. Manning the laboratory with technical personnel and equipping it will now be taken up during the Tenth Plan. 03 C. Strategy MINISTRY OF ECONOMIC AFFAIRS All dzongkhags with road connections will construct standard fuel stations. The barrel feed pump mechanisms will be phased out completely and modern fuel stations will be constructed in potential urban centers and satellite towns. The Department of Trade will ensure that at least 11 percent of pump and other facilities are installed in remote areas. The department will further place high priority on strengthening the POL laboratory to improve quality of POL services in the country. D. Results Framework Impact Outcome Output Projects/Activities Timely and Equal distribution and Well functioning Procurement of equipment for uninterrupted timely supply of quality laboratory in place POL Laboratory supply POL products of POL products Adequate fuel storage Procurement of additional fuel Fuel quality improved tanks and tankers storage tanks and replacement of existing tankers Standards developed for fuel stations across the Standardization and country certification of fuel stations E. Management Arrangements Institutional Arrangements The Department of Trade will be the coordinating agency. The respective Dzongkhags, local municipal authorities, Regional Trade & Industry Offices and private dealers will carry out the implementation. The principal oil companies shall provide overall technical assistance in close coordination with the Department of Trade. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening POL Laboratory 3.000 1.1 Procurement of equipments 3.000

2 Operation & management of POL Depots 14.000 2.1 Procurement of additional fuel storage tank and replacement 14.000 of existing tankers

3 Standardization and certification of fuel stations 1.000 Total 18.000 MINISTRY OF ECONOMIC AFFAIRS 115 MEA/03: DEVELOPMENT OF MICRO, SMALL & MEDIUM ENTERPRISES PROGRAMME A. Overview

1 Sector : Manufacturing and Industries

2 Linkage to National Vitalizing Industry and Synergizing Integrated Rural-Urban Development objectives and : Development for economic growth, poverty reduction, strategies employment generation, private sector development and rural economic development.

3 Expected Results : Enhanced income of MSMEs resulting in broad based and pro- poor growth, employment generation and poverty reduction in the rural and sub-urban areas.

4 Relevant MDG & SDG : MDG Goal I: Eradicate Extreme Poverty and Hunger MDG Goal 8 Target 16: Develop and Complement Strategies for Decent and Productive Work for Youth SDG Goal 1: Eradicate hunger poverty & Goal 2: Halve proportion of population living in poverty by 2010 SDG Goal 4: Ensure a robust pro-poor growth process SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups SDG Goal 6: Reduce social and institutional vulnerabilities of the poor, women and children SDG Goal 8: Ensure effective participation of poor and women in anti-poverty policies and 5 Donor Agency :

6 Target Group : Micro, small & medium entrepreneurs; unemployed youth and women 7 Scope : National 8 Status-ongoing/New : New 9 Timeframe : Five Years (2008 – 2013)

9 Indicative Capital Cost : Nu. 126.970 m

11 External funding required : Nu. 126.970 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agency : Departments of Industry

14 Documents Available : Industrial Estate Project Reports, Agriculture Marketing Studies, Rural Lending Scheme Project Reports; Sector Tenth Plan B. Situational Analysis Private Sector development has been an important priority since the 6th Five Year Plan (1987-1992) with the Vision 2020 envisaging the private sector as an engine of economic and employment growth. Moreover, under the strategic framework of the Tenth Plan, vitializing industry represents the core strategy for poverty reduction. The implementation of this core strategy will be heavily reliant on how the private sector performs and delivers, particularly within the context of galvanizing Micro, Small and Medium Enterprises (MSMEs) for industrial expansion and employment generation.

116 Tenth Plan Document, Volume 2 The private sector in Bhutan is small and relatively underdeveloped with over 98% of the sector consisting of micro, small, and medium-sized enterprises (MSME). These include various rural and urban enterprises, cottage industries and nascent cooperatives engaged in market activities. The 03 MSMEs face considerable constraints that inhibit their further growth and expansion and these are the: MINISTRY OF ECONOMIC AFFAIRS • lack of entrepreneurial lack of entrepreneurial talent, basic skills, modern technology, research and development, and capital; • limited access to financing; • absence of clear-cut government policies for the MSME sector; • poor physical infrastructure and high transportation costs; and • inadequate knowledge/information on market opportunities and requirements. In order to promote and facilitate MSMEs and address the above constraints, the Ministry of Economic Affairs has carried out numerious activities. The Industrial Investment Act and Enterprise Registration Act have been drafted, and business licensing procedures simplified. Basic trainings on entrepreneurship development were provided through the Entrepreneurship Promotion Unit and financial schemes such as EDP Loan scheme, Credit Guarantee Scheme and Rural Enterprise Grants Scheme were facilitated through the financial institutions. During the 9th Plan, the MoEA also initiated the Rural Enterprise Development and E-Business Projects. These projects supported and promoted cottage based industries such as bee keeping, bamboo crafts, textiles and vegetable dying, through trainings and developing market linkages for these products. The two projects also helped strengthen business promotional services in the regional trade and industry offices and develop appropriate material for business information dissemination. C. Strategy During the Tenth Plan, the Department of Industry will continue to promote SMEs through promoting innovation, creation and development of various niche products with comparative advantage in the regional and global markets. The department will also further strengthen the institutional framework and regulatory environment, enhance capacity building, provide essential business development services and promote access to financial institutions through various schemes to create an enabling environment facilitating the growth of MSMEs. Enterprise development in rural communities will be further encouraged and given emphasis in the Tenth Plan through the regional trade and industry offices and the dzongkhags. Support will be specifically extended to the handmade paper and essential oil cottage industry with the specific intent of promoting value addition for exports. Creating a separate Department for the specific promotion and development of cottage and small industries will be considered. MINISTRY OF ECONOMIC AFFAIRS 117 D. Results Framework Impact Outcome Output Project/Activities. Livelihood Income level An enabling Developing an institutional framework for MSME and economic of SMEs environment programme formulation and implementation opportunities increased for improved through development Developing an enabling legal and regulatory MSMES Diversified of SMEs in framework cottage based place industries Enhancement of business development services Handmade paper quality Revision of investment opportunity study improved Support to handmade paper industry Value added to essential Support to essential oil industry oil export Creation of new Department of Cottage and Rural Small Industries enterprises set up Skills development Rural enterprise development E. Management Arrangements Institutional Arrangements The Department of Industry will take the lead role in implementing the programs. The Department will coordinate closely with Regional Trade and Industries Offices, Department of Trade, Ministry of Agriculture, Dzongkhags and other relevant agencies. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Developing an institutional framework for MSME programme formulation and implementation 50.000

2 Developing an enabling legal and regulatory framework

3 Enhancement of business development services

4 Feasibility and resource study 21.000

5 Revision of investment opportunity study 4.000

6 Support to handmade paper development programme 5.000

7 Support to essential oil development programme 20.000

8 Creation of new Department of cottage & small industries 12.670

9 Skills development programme 5.000

10 Rural enterprise development programme 9.300 Total 126.970

118 Tenth Plan Document, Volume 2 MEA/04: DEVELOPMENT & MANAGEMENT OF INDUSTRIAL ESTATES 03 A. Overview 1 Sector : Manufacturing & Industries MINISTRY OF ECONOMIC AFFAIRS

2 Linkage to National : Vitalizing Industry, Synergizing Integrated Rural-Urban Development Objectives & Development and Expanding Strategic Infrastructure for Strategies economic growth, poverty reduction, employment generation, private sector development and rural economic development

3 Expected Results : Increased opportunities for employment and income generation and environment-friendly industrial development

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 8 Target 16: Develop and Complement Strategies for Decent and Productive Work for Youth SDG Goal 1 & 2: Eradication of hunger poverty & halve proportion of people in poverty by 2010 5 Donor Agency : 6 Target Group : Prospective small, medium and large-scale industrial entrepreneurs and unemployed youth. 7 Scope : National 8 Status-Ongoing/New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 200.000 m

11 External Financing Required : Nu. 200.000 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Departments of Industry, Regional Trade & Industry Offices and Dzongkhags

14 Documents Available : Industrial Estate Project Reports; Sector 10th Plan B. Situational Analysis The development of industrial estates is aimed at clustering industries in a particular region or locality to promote private sector development and enhance socio-economic activity in a particular region. The development of industrial estates creates a favorable environment for private sector development through the provision of land, civil and electrical infrastructure and waste management system thereby reducing the initial cost of land development. The creation of cost-effective infrastructure viable for industrial development is also expected to encourage the establishment of SMEs and increase the potential for industrial development in the Dzongkhags and Gewogs. Currently, there are three industrial estates: (i) Phuentsholing Industrial Estate with 27 manufacturing industries spread over an area of 61 acres; (ii) Samdrup Jongkhar Industrial Estate with four wood-based industries covering an area of 3.2 acres; and (iii) Bjemina Industrial Estate with four industries spread over an area of 34.4 acres that was set up mainly to promote development of SMEs. The Royal Government approved the development of five new industrial estates at Pasakha, Jigmiling, Shangkazuli, Bondeyma and Tingtibi during the 9th Plan. In view of its inherent potential, the development of the Pasakha Industrial Estate in Chukha Dzongkhag was prioritized. The acquisition of land and development of infrastructure like roads, power & water supply and estate MINISTRY OF ECONOMIC AFFAIRS 119 management offices for the estate has been carried out and are near completion. The development of the Pasakha industrial estate with a total area of 267 acres with thirty eight industrial plots will be completed midway throught the Tenth Plan. However, besides simply identifying the sites and collecting basic data, the establishment of the other four industrial estates could not be implemented due to rescource constraints. With the decision of the Royal Government to establish the Dhamdum Industrial Estate in Samtse Dzongkhag, the feasibility studies for Dhamdum and Jigmiling were carried out with assistance from South Asia Enterprise Development Facility (SEDF)/IFC. The study recommended the development of industrial estate at Dhamdum over Jigmiling primarily due to the favorable location of the former site. The report highlighted the need to carry out major river protection measures along the Dhamdum River. The Royal Government has also approved the development of Motanga Industrial Estate in Samdrup Jongkhar Dzongkhag and the land acquisition is in progress. C. Strategy The Department of Industry with the objective to promote balanced regional development and enhance growth of the rural economy, intends to develop and establish Industrial Estates at Dhandhum in Samtse Dzongkhag, Motanga in Samdrup Jongkhar Dzongkhag and Jigmiling in Sarpang Dzongkhag. The development and management of industrial estates, unlike in the past, will be pursued through public-private partnership (PPP) models. D. Results Framework Impact Outcome Output Projects/Activities Increased Number of small, Functional Industrial Development of Dhamdum Industrial opportunities medium and large estates in place Estate for employment, industries set up income generation in the industrial Operationalized Development of Motanga Industrial and environment estates t management and Estate friendly industrial development of development industrial estates Development of Jigmiling Industrial corporation Estate Development of Pasakha Industrial Estate (9th plan spillover) Corporatization of Management and development of Industrial Estates E. Management Arrangements Institutional Arrangements The Department of Industry will take the lead role in overall execution of the programme.

120 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost 03 (Nu. in million)

1 Development of Dhamdum Industrial Estates MINISTRY OF ECONOMIC AFFAIRS

2 Development of Motanga Industrial Estate

3 Development of Jigmiling Industrial Estate 200.000

4 Corporatization of Management & Development of Industrial Estates

5 Development of Pasakha Industrial Estate (9th plan spillover) Total 200.000 MEA/05: STRENGTHENING INSTITUTIONAL FRAMEWORK FOR INDUSTRIAL DEVELOPMENT A.Overview 1 Sector : Manufacturing & Industries 2 Linkage to National : Vitalizing Industry for poverty reduction, income and Development Objectives & employment generation. Strategies

3 Expected Results : Enable industrial growth, increased opportunities for employment and income generation in the rural and sub- urban areas

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger SDG Goal 1 & 2: Eradication of hunger poverty and halving proportion of people in poverty by 2010 SDG Goal 18 & 19: Acceptable level of water and soil and air quality 5 Donor Agency :

6 Target Group : Prospective small, medium and large-scale industrial entrepreneurs and unemployed youth 7 Scope : National 8 Status-Ongoing/New : New 9 Timeframe : Five Years (2008-2013)

10 Indicative Capital Cost : Nu. 30.030 m

11 External Financing Required : Nu. 30.030 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Departments of Industry

14 Documents Available : Sector Tenth Plan B. Situational Analysis The development of the manufacturing and industries sector in Bhutan has happened at a gradual pace despite considerable investments that have been made over the years. The establishments of service centers to a certain extent have helped promote small-scale industries like fabrication units, automobile workshops, small food and agro-based industries across the region. During the 9th Plan one industrial estate was established in Pasakha and three service centers across the region. MINISTRY OF ECONOMIC AFFAIRS 121 However, the manufacturing and industries sector has not grown as rapidly as expected. The manufacturing sector in particular has grown at little over 5.8% a year over the Ninth Plan as compared to the 9.6% growth for the national economy. As such the manufacturing sector share of GDP has declined from 8.3% of GDP in 2001 to about 6.4% of GDP in 2007. This relatively slower growth and performance of the manufacturing and industries sector as compared to the other sectors in the economy can be attributed to the lack of a clear industrial policy, which to a certain extent has contributed to the mismatch of labour supply and demand in the market exacerbating the situation of youth unemployment. The weak employment generation capactity of the national economy is also linked to the slower growth of the manufacturing sector, which in other countries has always been a key employment sector. Additionally, the strategic policy of vitalizing industry will be pursued while keeping environmental considerations such as maintaining acceptable quality levels of water, soil and air in the forefront. As envisioned in the Vision 2020, the longer term industrial policy will actively promote cleaner and non-polluting industries. In the light of these overrding concerns, there is the urgent need for a clear industrial policy and institutional framework to be framed to create an enabling environment for vitalizing industries without compromising environmental standards. C. Strategy A key strategy to vitalize industry over the Tenth Plan will be to formulate and implement a clear and comprehensive industrial policy and establish the necessary legislative framework. The strengthening of the capacity of the Department of Industries will also be a priority. D. Results Frame Work Impact Outcome Output Projects/Activities Increased Increased Industrial policy in place to guide Formulation of industrial opportunities for investment in the sustainable development of policy and legislation gainful employment industries and industries and income enterprises by Establishment of one window generation in rural potential Investment and Industries Act clearance system and urban areas entrepreneurs enacted Strengthening of company Established one window registry clearance Product certification Products certified satisfactorily Development of industrial Developed industrial information information system system E. Management Arrangements Institutional Arrangements The Department of Industry will take the lead role in implementing the programme.

122 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in milion) 03

1 Formulation of industrial policy and legislation 14.330

2 Establishment of one window clearance 0.700 MINISTRY OF ECONOMIC AFFAIRS

3 Strengthening of company registry 7.500

4 Development of Industrial information system 3.500

5 Product certification 4.000 Total 30.030 MEA/06: SUSTAINABLE ENVIRONMENTAL MANAGEMENT AND INSTITUTIONALIZATION OF CLEANER TECHNOLOGY A. Overview 1 Sector : Manufacturing & Industries 2 Linkage to National Development : National Spatial Planning for environment conservation and Objectives & Strategies sustainable development

3 Expected Results : Sustainable development of industries and mines through institutionalization of cleaner technology and capacity building.

4 Relevant MDG & SDG : MDG Goal 7: Ensure environmental sustainability SDG Environment Goals 17-22 pertaining to: SDG Goal 17: Acceptable level of forest cover SDG Goal 18: Acceptable level of water quality SDG Goal 19: Acceptable level of air quality SDG Goal 20: Conservation of bio-diversity SDG Goal 21: Wetland conservation SDG Goal 22: Ban on dumping of hazardous waste, including radio-active waste. 5 Donor Agency :

6 Target Group : Industries & Mines 7 Scope : National 8 Status-Ongoing/New : Ongoing 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 11.500 m

11 External Financing Required : Nu. 11.500 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Policy and Planning Division, Department of Industry, Department of Geology & Mines, Regional Trade & Industries Offices, Dzongkhags & Private Sectors

14 Documents Available : Environment Assessment Act 2000, Regulations for the Environment Clearance of Projects & Strategic Environment Assessment 2002, Mines & Minerals Management Act 1995, Mines & Minerals Management Regulations 2002, Programme Document, Component & Work Plans; Sector Tenth Plan MINISTRY OF ECONOMIC AFFAIRS 123 B. Situational Analysis The Environment Unit (EU) under the Ministry of Economic Affairs was established with the main objective of promoting the sustainable development of industries and mines. Environmental clearances for various industries and mines were being issued by the Department of Industry till it was transferred to the EU in September 2005. In 2005, the Unit developed the Environmental Management Information System (EMIS) database under the Environment Urban Sector Programme Support (EUSPS) project, which includes information on the industries in the country. The Regional Trade and Industry Offices (RTIOs) are responsible for data inputs on the environmental clearances issued. The responsible personnel have been trained on management of the EMIS. As of 2006, the unit issued a total of 115 new environmental clearances and renewed 157. With a view to simplify and standardize environmental clearances for small enterprises, the Environmental Codes of Best Practices (ECOPS) for the listed sectors is being developed. These include various enterprises such as automobile workshops, bakeries, sawmills, furniture manufacture, audio video production, printing, photo studio and handmade paper ventures. This has enabled faster clearances of proposals falling in these categories. In addition, two environmental focal persons have been identified in the RTIOs for issuing environmental clearances, monitoring and conducting inspections. However, the EU is responsible for the overall monitoring and compliance under the Environment Assessment Act 2000 (EA Act 2000) and institutionalization of the Cleaner Technology for Environmental Management (CTEM). The Unit also organizes workshops/training on the use of CTEM for the private sector. C. Strategy In the Tenth Plan, the sustainable development of industries and mines will be strengthened through institutionalizing CTEM. Regular compliance monitoring will be conducted by the EU to check compliance of air and water quality with the EA Act 2000 and other relevant environmental acts, regulations and national standards. CTEM will be promoted and regular awareness workshops on new techniques and technologies will be carried out for industries and mines, private sector enterprises and relevant government agencies. The ECOPs for the 17 listed sectors will be developed and disseminated to the relevant agencies and workshops will be conducted to develop a standard format for industrial activities. The Unit will also play a key role in mainstreaming environment issues into the plans, policies and activities of the MEA.

124 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Reduce CTEM CTEM institutionalized & Institutionalization of Cleaner Technology MINISTRY OF ECONOMIC AFFAIRS adverse adopted by awareness created and Environment Management impact on the industries environment and mines Strategic and Standard Sectoral studies for industries and mines from industries Rules and Regulations on development of manual for industrial and mines CTEM developed inspection and monitoring to help fulfill environmental Legal and regulatory Drafting of Mineral development Policy and conservation framework for compliance creation of awareness material for cleaner and monitoring improved production sustainable development Procurement of environmental monitoring goals equipment E. Management Arrangements Institutional Arrangements The PPD shall be responsible for the overall execution and co-ordination of the programme with support from the RTIOs and other relevant agencies. The Bhutan Chamber of Commerce and Industry (BCCI) and various local groups including NGOs and civil society organizations could provide institutional and organizational development support to the private sector in institutionalization of the CTEM. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Sectoral studies of industries and mines and development of 5.000 manual on environmental inspection and monitoring

2 CTEM study visit for private sector and MoEA 3.700

3 Industrial environment inspection capacity building for inspectors 1.500 in the Regional Trade and Industry Offices

4 Mineral Development Policy 0.800

5 Procurement of monitoring equipments 0.500 Total 11.500 MINISTRY OF ECONOMIC AFFAIRS 125 MEA/07: DEVELOPMENT & STRENGTHENING OF INTELLECTUAL PROPERTY & COPYRIGHTS A. Overview

1 Sector : Manufacturing & Industries 2 Linkage to National Development : Vitalizing Industry for poverty reduction and employment Objectives & Strategies generation through promotion of cultural industries

3 Expected Results : A fully functioning and efficient system for the administration of intellectual property and copyrights established

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 8: Target 12: Develop further an open, rules based, predictable, non-discriminatory trading and financial system And Target 16: Develop and complement strategies for decent and productive work for youth SDG Goal 1 & 2: Eradication of hunger poverty & Half proportion of people in poverty by 2012 5 Donor Agency :

6 Target Group : Intellectual property rights holders including creative artists, entrepreneurs, educational institutions and general public. 7 Scope : National 8 Status-Ongoing/New : Ongoing/New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 24.500 m

11 External Financing Required : Nu. 24.500 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Intellectual Property Division

14 Documents Available : Industrial Property Bill, IPD Progress Report; Sector Tenth Plan B. Situational Analysis The first draft of the amendment to the Industrial Property Act and the Copyright Act were completed during the Ninth Plan period. The Registry of Trademarks has been re-activated and trademark applications are being processed. The drawing up of rules and procedures for the Patent Registry and the Industrial Designs Registry is in progress and the short-term attachment training of four staff in the areas of trademarks, patents, industrial designs and voluntary registration of copyright has been completed. Further, automation of the functions of the Intellectual Property Division has been initiated and a trial installation of the Intellectual Property Automation System (IPAS) has been carried out. Awareness creation and outreach activities have also been conducted.

126 Tenth Plan Document, Volume 2 C. Strategy In the Tenth Plan, the Division will continue to revise and upgrade the IPAS in line with international 03 standards. Legislation on various topics of Intellectual Property (IP) will be developed in order to have in place a comprehensive legal system for the protection of IP rights. New facilities for registration of patents and industrial designs and accessing patent information through a patent MINISTRY OF ECONOMIC AFFAIRS information system will be set up and the institutional and professional capacity of the division will be strengthened. In addition, awareness building on IP related subjects will be intensified and efforts will be made to build public confidence in the system and encourage its use. Activities will be closely coordinated with the concerned agencies on eliminating IP rights violation. Active interaction will be maintained with the private sector, particularly SMEs, in integrating intellectual property concerns in their business plans. Becoming a party to important multilateral treaties on IP will also be processed in the Tenth Plan. D. Results Framework Impact Outcome Output Projects/Activities Intellectual Public have A fully functioning and Institutional Strengthening of property titles, confidence in IP efficient system for Copyrights & related Right Units copyrights and system the administration of related rights intellectual property Setting up of facilities for registration are effectively Awareness among and copyrights of intellectual property titles protected the people on the IP and related rights A comprehensive Awareness and management of legislation in place intellectual property capital E. Management Arrangements Institutional Arrangements The Intellectual Property Division will work closely with National Biodiversity Center, Institute of Traditional Medicines and Science, EPC, BCCI and Right holders, Department of Trade and World Intellectual Property Organization (WIPO) for implementing IPD’s targets. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening Copyrights & related Rights Units 4.625

2 Setting up of facilities for registration of intellectual property titles 15.875

3 Awareness and management of intellectual property capital 4.000 Total 24.500 MINISTRY OF ECONOMIC AFFAIRS 127 MEA/08: POWER TRANSMISSION PROGRAMME A. Overview 1 Sector : Energy & Power

2 Linkage to National : Expanding Strategic Infrastructure through providing clean Development Objectives & energy services and enhancing energy security to boost Strategies economic growth, reduce poverty and improve living standards

3 Expected Results : Enhanced energy reliability/security 4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger SDG Goal 1 & 2 : Eradication of hunger poverty and Half proportion of population in poverty by 2013 5 Donor Agency :

6 Target Group : All electricity consumers/Communities/Industrial sectors 7 Scope : Nation wide 8 Status-Ongoing/New : New/Ongoing

7 Timeframe : Five years (2008-2013)

8 Indicative Capital Cost : Nu. 50.000 m

9 External Financing Required : Nu. 50.000 m

10 Executing Agency : Department of Energy, MoEA

11 Implementing Agencies : Bhutan Power Corporation Limited/Power Grid Corporation of India

12 Documents available : RE Master Plan, Power System Master Plan, Integrated Energy Management Master Plan, Sector Tenth Plan B. Situational Analysis At present, most of the existing power plants are in the western region of the country with only Kurichhu HEP in the east. As such, there is no inter-regional grid. With the upcoming of the Dungsam Cement Project and the Matunga industrial estate, power supply from Kurichhu will not be adequate for the region, especially during the lean season. Similarly, the power supply situation in the central (Gelephu) and the South western region (Samtse) is neither adequate nor reliable with the projected load demand of upcoming industrial activities. The power supply situation in Samtse Dzongkhag will not be sufficient given the projected load demand of the upcoming industrial estate at Dhamdhum in Samtse. The district already draws a substantial amount of power at Gomtu for the Penden Cement factory with the 66 KV line from Phuentsholing already overloaded. With the planned industrial estate at Dhamdhum, the supply situation in future will be grim without a system up-gradation. The construction of double circuit transmission line from Birpara to Samtse will help solve this power scarcity in Samtse. Gelephu with the upcoming Jigmeling industrial estate, which is currently fed from Kurichu, will also face shortages as power generation Kurichu HEP will not even be sufficient to meet demand in the east. Therefore, a full electricity grid interconnection between the eastern and the western region will be necessary to provide with reliable and adequate power supply to vitalize industrial development and enhance energy security. Constructing a 220 kV Double Circuit (DC) transmission line from Birpara to Samtse (Dhamdhum Industrial Estate) via Gomtu will also be need to be carried out on a priority basis.

128 Tenth Plan Document, Volume 2 Given the high priority for accelerated hydropower development to enhance revenue earnings and meet growing domestic demand for electricity, power transmission infrastructure (both lines and substations) are required for evacuation of power from the generating stations to various 03 load centres in Bhutan and the Indo-Bhutan delivery export points. To better plan and facilitate the development of such strategic power transmission infrastructure, it is absolutely imperative MINISTRY OF ECONOMIC AFFAIRS that a comprehensive National Transmission Grid Master Plan be developed. The master plan would further help anticipate and address a host of accompanying issues such as right of way, environmental considerations and effective integration with delivery points and the Indian grid. At present, large transmission lines are normally built on a “project-tied” or ad hoc basis whenever a new large hydropower generation project comes up. Developing a rationalized and well interconnected transmission corridor is thus becoming increasingly more difficult due to the uncertain timing of the inception and commissioning of future HEPs. The Power System Master Plan of 2003-22 only highlights the inventory of hydropower generation projects and its likely associated transmission lines up to the expected delivery points in India. Moreover, these have been just assumed without full consultations with Indian counterparts. Therefore, it is necessary that the National Transmission Grid Master Plan of Bhutan should also take into consideration the effective integration of Bhutans national grid system with the Indian grid, especially the North-Eastern and Eastern grids. This will help optimize the costs of electricity infrastructure development and maximize mutual benefits. C. Strategy The following strategic objectives of the Power Transmission Programme are to: • Provide Grid electricity by extending transmission lines and increase the reliability of electricity by inter-regional grid network connections; and • Ensure adequate grid electricity supply for socio-economic/industrial development activities. The following constitute the various activities to fulfill the power transmission strategic objectives: • Construction of 220 kV Transmission line from Tsirang to Jigmeling along with inter- connecting transformer 220/132 kV substation at Jigmeling catering to the central region; • Construction of 132 kV tie line from Jigmeling to Gelephu (This completes interconnection to eastern grid) catering to the eastern/central region; • Extend about 16 Km of 220 kV Double Circuit (DC) transmission line from Birpara to Gomtu as well as extend about 18 km of 220 kV D/C transmission line from Gomtu to Samtse (Dhamdhum Industrial Estate) catering to the western region; • The construction of substations at Samtse, Gomtu and Jigmeling can be provisioned for separately either in the Industrial estate budget allocation or in BPC’s budget; and • Preparation of Bhutan’s National Transmission Grid Development Master Plan and its integration with Indian Grid. MINISTRY OF ECONOMIC AFFAIRS 129 D. Results Framework Impact Outcome Output Projects/Activities Interconnection between 220 kV transmission Construction of 220 kV Eastern and Western grids line from Tsirang to transmission line from provided Jigmeling and 132 Tsirang to Jigmeling kV double circuit line Enhance national between Jigmeling 220/132 kV substation supply security, Adequate supply to and Gelephu along at Jigmeling and 132 kV reliability & stability the industrial estates in with 220/132 kV ICT tie line from Jigmeling to Jigmeling (Sarpang) at Jigmeling and Gelephu Reduce import of 220/66/33kV substation power from India at Tsirang Facilitate industrial development Adequate supply to Samtse 34 km of 220 kV D/C Construction of 220 and Gomtu from Tala transmission line kV transmission line Comprehensive from Birpara- Gomtu - from Birpara – Gomtu - National Enhanced Security and Samtse Samtse (34 km double Transmission reliability of supply to circuit) Grid Master Plan Samtse industrial estate Comprehensive developed National Transmission National Transmission Grid Grid Master Plan Development of Master Plan in place developed comprehensive National Transmission Grid Master Plan for Bhutan E. Management Arrangements Institutional Arrangements Bhutan Power Corporation Limited (BPCL), the state-owned power transmission, distribution and supply utility company shall directly implement the projects with central coordination by the DoE. Construction works are tendered out to the civil and electrical contractors from the private sector with BPC carrying out the supervision, quality control and accounting. Consultants will be recruited to assist BPCL in engineering design and supervision. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million) 1 220 kV transmission line from Tsirang to Jigmeling; 220/132 kV substation at Jigmeling and 132 kV tie line from Jigmeling to BPC funding Gelephu 2 220 KV D/C transmission line from Birpara – Gomtu - Samtse (34 0.000 km double circuit)

3 Preparation of Bhutan’s National Transmission Grid Development 50.000 Master Plan and integration with Indian Grid Total 50.000

130 Tenth Plan Document, Volume 2 MEA/09: RURAL ELECTRIFICATION PROGRAMME 03 A. Overview 1 Sector : Energy & Power MINISTRY OF ECONOMIC AFFAIRS

2 Linkage to National : Vitalizing Industry and Synergizing Integrated Rural Urban Development Objectives & Development by providing clean energy services and Strategies enhancing national energy security

3 Expected Results : Expanded coverage of rural electrification through grid supply and provision of grid electricity access for new and left-out/fill-in households.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger SDG Goal 1 & 2: Eradication of hunger poverty & Halve proportion of population in poverty by 2010 MDG Goal 7: TARGET 9: Integrate the principles of sustainable development into country policies and and reverse the loss of environmental resources SDG Goal 4: Ensure a robust pro-poor growth process SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups SDG Goal 6: Reduce social and institutional vulnerabilities of the poor, women and children SDG Goal 17 Acceptable level of forest cover SDG Goal 18 Acceptable level of water and soil quality 5 Donor Agency :

6 Target Group : All Bhutanese households/ Rural Communities 7 Scope : Nation wide 8 Status-Ongoing/New : New/Ongoing 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 3,727.000 m

11 External Financing Required : Nu. 3,727.000 m 12 Executing Agency : Department of Energy, MoEA

13 Implementing Agencies : Bhutan Power Corporation Limited and Communities

14 Documents Available : RE Mater Plan; Power System Master Plan; Integrated Energy Management Master Plan; Sector Tenth Plan B. Situational Analysis Access to energy is a basic human need underlying all economic and social activities and constitutes an indisplensable element for sustainable development. Poor and underdeveloped communities are often trapped in a vicious circle of poverty and underdevelopment due to energy poverty. Moreover, development and underdevelopment itself are often adjudged on the basis of energy consumption which constitutes a key development indicator for many countries around the world. More specifically, most rural families in Bhutan spend a considerable amount of time in energy gathering activities such as collecting fuel wood for heating and cooking. Fuelwood consumption per capita in Bhutan is extremely high and could have an adverse impact on the RGoB’s being able to maintain its steadfast commitment to maintaining high levels of forest cover. Better and enhanced access to energy services for rural communities can thus greatly help reduce workloads MINISTRY OF ECONOMIC AFFAIRS 131 and indoor air pollution, generate income and employment for poor households through an expansion of rural industries, and facilitate environmental sustainability through better natural resource management. As such, the accelerated expansion of rural electrification constitutes a strategic aspect of sustainable rural development and poverty alleviation, including promoting environmental conservation effectively. The Rural Electrification (RE) Programme is an important development activity aimed at providing electricity access to rural population for the above purposes of stimulating socio-economic activities in rural areas and reducing poverty while providing affordable energy supply to help conserve the environment. The rural electrification Master Plan provides the road map for the implementation of rural electrification programme. The rural electrification status as of 2007 set against the Tenth Plan target is provided in the table below: Households provided with Electricity in % (2007) Target for 10FYP Rural 54% >96%* Urban 97% 100% National 70% >98% * excluding off-grid RE target HHs The RE programme has a physical target to provide electricity to about 34,238 new households and 6,019 fill-in-left-out households in various Dzongkhags. The provisioning of electricity to this large number of households will raise the coverage of electritic to universal levels or near 100% in rural areas and about 100% at the national level by the end of Tenth Plan. The various activities include the extension of distribution lines and substations and providing meters to households. C. Strategy The overall rural electrification strategy is to achieve near 100% or universal coverage by the end of the Tenth through an equitable, phased radial grid expansion based on the techno-economic feasibility/Dzongkhag priority criteria. The Vision 2020 envisages that electricity for all will be achieved by the year 2020 but this target has now been brought forward and is to be achieved by the year 2013, the end of the Tenth Plan. To achieve this ambitious target, grid electricity is to be distributed to meet the demand of various types of consumers through extensive rural electrification schemes. The works will include extension of grid supply from existing/to be built transmission substations for new rural households and left- out/fill-in households in areas already having access to electricity. A detailed feasibility study for rural electrification of more than 25,000 HHs in the Tenth Five Year Plan has been conducted. There is the need to conduct a detailed feasibility study for the remaining rural households to be provided electricity over the Tenth Plan that were initially slated for the period 2013-2018. A project Preparatory technical assistance for the accelerated rural electrification will be undertaken. In order to optimize cost and reduce transportation difficulties, the Tenth Plan RE will further need to be effectively integrated with road development plans. The existing cross- sectorial policies, laws, rules, regulations and strategies shall also be harmonized to minimize and avoid conflicts, and to create an enabling environment to achieve the near 100% electrification target.

132 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Provisioning of Rural households New Approaches to Detailed Project MINISTRY OF ECONOMIC AFFAIRS electricity access provided with accelerating RE through Prepatory and Feasibility for new and left-out electricity grid extension reports made for households thereby accelerated RE effectively achieving Generate income Rural Electrification electricity for all from enterprise through grid extension Rural Electrification development in targeted Dzongkhags/ through grid connection of Reduction in Rural Geogs/ Villages 34,238 HHs poverty through socio- Reduce energy economic development gathering work Rural electrification 6,019 Rural Electrification in rural areas, including burden on rural HHs through grid extension of of fill-in households/ effective environmental fill in/left out households left out households in conservation Help maintain high already electrified areas level of forest cover Up-gradation of power and up-gradation of and sustainable use distribution network electrical infrastructure of natural resources and services E. Management Arrangements Institutional Arrangement The RE Master Plan Prepared in 2004-05 will be the primary reference document for the selection of villages for electrification based on socio-economic and techno-economic feasibility and analysis subject to the zoning criteria for providing facilities. Relevant feasibility studies will be conducted and appropriate project documents will be prepared for possible funding by the donors/lending agencies. Once the funding is secured, the BPCL shall start implementation with the necessary procurement and construction activities through contracts. The overall execution of the programme shall be done by the Department of Energy. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Professional services for detailed Project Prepatory works for 28.000 accelerated RE (for additional 8,959 households)

2 Rural Electrification through grid connection of 34,238 HH 3,699.000

3 Rural Electrification of fill-in households/left-out households in already electrified areas and up-gradation of electrical BPC Financing infrastructure and services (6,019 HH) Total 3,727.000 MINISTRY OF ECONOMIC AFFAIRS 133 MEA/10: ACCELERATED HYDROPOWER DEVELOPMENT PROGRAMME A. Overview 1 Sector : Energy & Power Sector

2 Linkage to National : Vitalizing Industry and Expanding Strategic Infrastrucure Development Objectives by providing clean energy services and enhancing national & Strategies energy revenues and security for poverty reduction and rural development

3 Expected Results : Increased revenue generation through hydropower exports and enhanced energy security. Additional power generation capacity to meet increasing domestic demand of power. Increased opportunities for employment and sustainable economic development.

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger. MDG Goal 7: TARGET 9: Integrate principles of sustainable development into country policies and & reverse loss of environmental resources SDG Goal 1 & 2: Eradication of hunger poverty & Halve proportion of population in poverty by 2010 SDG Goal 4: Ensure a robust pro-poor growth process SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups SDG Goal 17 Acceptable level of forest cover SDG Goal 18 Acceptable level of water and soil quality 5 Donor Agency : 6 Target Group : Domestic Electricity Consumers and Export market 7 Scope : National 8 Status-Ongoing/New : New/Ongoing 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 576.700 m

11 External Financing : Nu. 576.700 m Required 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Department of Energy, Planning & Coordination Division, GoI Agencies and private sector/IPP

14 Documentation Available : Updated Bhutan Power System Master Plan-2004, Water Resources Management Plan, RE Master Plan, Draft Industrial Policy, Draft Hydropower Development Policy, Draft Renewable Energy Framework document, Draft Integrated Energy Management Master Plan, Sector Tenth Plan B. Situational Analysis The total hydropower potential of Bhutan is estimated at 30,000 MW but the country has only harnessed about 1,488 MW or roughly 5% of the total hydropower potential. While the master plan has identified more than 75 project sites, feasibility and detailed project reports have been carried out only for few projects (currently for Dagachu, Punatsangchu-I, and Sankosh). DPRs are essential for making investment decisions, attracting FDI, and ranking projects for priority implementation and also establishing detailed linkages with the NSP-2008 through infrastructure

134 Tenth Plan Document, Volume 2 requirements. Therefore, it is essential that studies and reports be initiated at the earliest for the speedy implementation of the projects as the DPRs themselves take about a year or more to complete. 03 The project studies (DPR, feasibility study) of some of the potential sites (including storage schemes) as well as for those projects in operation had been done through technical and grant MINISTRY OF ECONOMIC AFFAIRS finance from the donor agencies in the past. No project studies have ever been carried out from the funds/revenue generated from sale of electricity. It is however, now opportune to mobilize additional resources besides donor grants or soft loans for conducting the detailed studies as well as potentially finance hydropower projects from hydropower revenue generation and foreign direct investment to achieve the accelerated development of 10,000 MW by 2020. C. Strategy For taking investment decisions in developing a mega hydropower project, a detailed Feasibility study or the DPR is an absolute pre-requisite as hydropower projects are capital intensive with long gestation periods and have complex engineering risks involved. To achieve the accelerated hydropower development objective, at least the DPR, feasibility and pre- feasibility study reports of the potential hydropower sites have to be carried out and made available to the prospective project developers/promoters. It is intended to have these studies carried out for some of the priority hydropower project sites through RGoB finance/IPP/Donors. For RGoB financed project studies, the work shall be carried out by consultants (locally with JV with outside consulting firms, regional/international consulting firms) recruited through an open competitive bidding process. DPR’s for the IPP projects could be carried out by the investors as part of their mandate if an early indication is given. However, potential investors from India have indicated that it is desirable to have the DPRs ready during the IPP tendering stage so that they will be in position to offer the most realistic and accurate bid price. D. Results Framework Impact Outcome Output Projects/Activities Accelerated Set of DPRs ready in Identification of Preparation of Detailed Project development of the next 2-3 years potential priority Reports (DPRs), Feasibility hydropower projects hydropower projects Study, Pre-feasibility study of Increased level of priority hydropower projects Integrated interest from potential Project reports for infrastructure investors making investment Preparation of Pre-construction planning and decision study report development based Enhance DoE on the hydro sites confidence in Technology transfer Survey & Investigation of about promoting projects 53 hydropower project sites to update the various design and technical parameters MINISTRY OF ECONOMIC AFFAIRS 135 E. Management Arrangements Institutional Arrangements The DPR studies of hydropower projects committed by the GoI shall be executed and coordinated by the Department of Energy and implemented through the GoI agencies (WAPCOS, NHPC, etc.). For the pre-feasibility study projects funded through internal resources, it will be implemented by the Department of Energy through recruitment of competent consulting firms/agencies. The project reports will be finalized based on consultative process involving all concerned agencies including the Public hearing/consultation at each development site. For those projects to be funded under the NORAD phase III project, the pre-feasibility studies of four projects including DPR of one site will be implemented in line with the agreement signed between the two governments and the project documents. As per the project document prepared jointly by Norwegian agency and the Department of Energy, the pre-feasibility study of one project will be carried out fully by the Norwegian expertise with Bhutanese involvement. For the next three projects, project studies will be done with increased involvement of the Bhutanese. The reconnaissance studies of about 53 sites will be carried out as part of the ongoing activity of the Department of Energy with support from Norwegian agencies/ expertise. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 DPR Completion of Mangdechhu HEP (720 MW) 24.200

2 DPR Completion of Punatsangchhu II HEP (1000 MW) 28.500

3 DPR of Chamkharchhu-I (Digala) HEP (670 MW) 90.000

4 DPR of Kholongchhu (Gomkora) HEP (486 MW) 80.000

5 DPR of Kuri/Gongri HEP (1800 MW) 120.000

6 DPR of Amochhu Reservoir HEP (620 MW) 90.00

7 Update of Sankosh DPR and EIA including preparation of 20.000 pre-construction survey report (4000 MW)

8 Update of Wangchhu DPR and EIA including preparation of 20.000 preconstruction survey report (900 MW)

9 Update of Bunakha DPR and EIA including preparation of 20.000 pre-construction survey report (180 MW)

10 Reconnaissance survey and investigations of 15 priority hydropower sites under PSMP 45.500

11 Pre-feasibility studies of the Rothpashong (400 MW) and 38.500 Khomachhu (326MW) HEPs including environmental studies Total 576.700

136 Tenth Plan Document, Volume 2 MEA/11: INSTITUTIONAL STRENGTHENING OF THE ENERGY SECTOR 03 Overview 1 Sector : Energy & Power MINISTRY OF ECONOMIC AFFAIRS

2 Linkage to National Development : Vitalizing Industry and Expansion of Stratetgic Objectives & Strategies Infrastructure by providing clean energy services and enhancing national energy revenue and security for poverty reduction and rural development

3 Expected Results : Improved institutional capacity with enhanced efficiency to better meet national energy needs towards accelerated development, fulfill public service needs and provide sound technical advice on power/energy issues to RGoB

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger. MDG Goal 7: TARGET 9: Integrate principles of sustainable development into country policies and & reverse loss of environmental resources SDG Goal 1 & 2: Eradication of hunger poverty & Halve proportion of population in poverty by 2010 SDG Goal 4: Ensure a robust pro-poor growth process. SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups SDG Goal 17: Acceptable level of forest cover 5 Donor Agency :

6 Target Group : Energy & Power Sector 7 Scope : Nation wide 8 Status-Ongoing/New : Ongoing/New 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 81.155 m

11 External Financing Required : Nu. 81.155 m 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Department of Energy, PPD, Dzongkhags/Power Corporations, Department of Forests, Communities.

14 Documents available : Integrated Energy management Master Plan, Draft Renewable Energy Policy for Micro Hydro and Solar PV, GG+, Power System Master Plan, Water Resources Master Plan, Rural Electrification Master Plan, other Bi- lateral Agreements and Annual Consultation documents with Donors, Sector Tenth Plan B. Situational Analysis A significant change in the institutional structure of the energy sector is highly necessary if the targets of 10,000 MW installed capacity by 2020 is to be achieved. Without a major institutional strengthening of the Department of Energy, the target of accelerated hydropower may have to be scaled down considerably. This must be considered within the context that after the Chukha Hydro Power plant was built in 1986, it took another two decades to complete another large Project such as Tala in 2006 on a business as usual mode of operation. Capacity addition of 10,000 MW by 2020 from now will require annual capacity addition of about 700 MW each year. MINISTRY OF ECONOMIC AFFAIRS 137 The pace of hydro power development has not increased as rapidly due to various other competing priorities and its limited institutional capacity. For acceleration of hydropower sector policies, regulations have to be framed and resources have to be mobilized for which a proper institution with the right authority and power has to be in place. While donors’ technical assistance and support may be forthcoming, an adequately equipped institution with adequate resources and capacity has to be in place to coordinate and cooperate to implement and coordinte all these activities. Moreover, the Department of Energy (DoE) has prepared the Integrated Energy Management Master Plan and the Integrated Rural Electrification Master Plan in the 9th FYP. The study has provided the energy balance and demand/supply scenario of the country based on which other renewable energy sources like wind, solar and bio-gas are to be explored. Implementation of this Integrated Energy Management Master Plan itself would require a substantial enhanced capacity of the sector. Therefore, given the above issues, it is clearly evident there is a strong and urgent need to enhance the institutional capacity of the energy/power sector. C. Strategy The immediate requirement of manpower and institutional skills can be met through the recruitment of consulting firms with relevant expertise in the hydropower sector. In addition, local skills and expertise (both from existing Government, Corporate and Private sectors) have to be sourced and mobilised to start building the institution for accelerated hydropower development. Officials on deputation can be called back to fill up the priority needs in planning, design and resources mobilizing and facilitation including coordination for speedy implementation of the comprehensive strategy. To fulfil the objectives of accelerated hydro power development, the current institution of the Department of Energy has to be upgraded to a Ministry as recommended in the 1999 GG document. In addition, there is an urgent need to station a dedicated energy official and creat a power trade office in New Delhi for market research, hydropower promotion, facilitating power- trade and liasoning with GoI agencies and potential IPPs. This is extremely significant in view of the importance of the Indian energy market and to help further facilitate energy cooperation with SAARC/BIMST-EC countries. Additionally, project finance and power sales agreements models need to be prepared for accelerated hydropower development. The preparation of rules, regulations, guidelines, procedures, standards, codes of practices for multi-sector regulation is another sub area of activities planned under the programme. Establishing a hydropower laboratory in Bhutan is deemed highly necessary. This laboratory will conduct material testing and carry outproject modeling and efficiency testing of hydraulic machines, among others. This will greatly reduce time and money spent on sending materials for testing abroad. In-house technical expertise will also need to be built to operate the laboratory through appropriate technology transfer. This investment will be recovered in few years given the relevance and importance of the lab. This may also be used for diploma holders and engineers of Bhutan’s Polytechnic and Engineering Colleges to train them and hands-on-experience. Having a laboratory within Bhutan will greatly increase efficiency and contribute to hydropower capacity expansion in the country. In line with the Good Governance policy guidelines to enhance ICT-information and communication technology, the Department also aims to enhance the MIS-Management Information System and

138 Tenth Plan Document, Volume 2 GIS-Geographic Information System. Planners will benefit from the quality and quantity of data from the MIS and GIS. The Department has already a basic GIS system in place but this need to be further enhanced along with the GIS and MIS personnel. Information and knowledge management 03 needs to be established and for this, the Department of Energy needs to strengthen both its personnel and hardware infrastructure. MINISTRY OF ECONOMIC AFFAIRS Some studies need to be conducted in re-structuring of the various power sector institutions including institutional capacity building of the Druk Green Power Corporation (DGPC). The DGPC was established in 2008 to assume the role of additional project developer besides maintaining and operating the existing state owned hydropower plants. Similarly, there is need to build the institutional capacity of the System Operator (SO) to effectively coordinate the economic load dispatch from generating stations and maintain a balance of supply and demand in Power system for reliability of Grid operations including maintenance scheduling of power infrastructures. The SO needs to constantly keep in contact and communicate with Indian counterparts for stable and reliable operation of the national power system. There is also the need for some other specific studies in the energy sector including further reform and institutional re-organization and re-structuring. The project activities and their scope therefore need to be planned and defined properly before implementation. D. Results Framework Impact Outcome Output Projects/Activities A vibrant Energy Strong institutional a. Project finance and power Institutional strengthening of Sector with strong development sales agreements models the Department of Energy, institutional Bhutan Electricity Authority, capacity and internal capacity b. Identification and DGPC and Bhutan Power capabilities strengthened for establishment of institutional Corporation Limited through the energy sector linkages with international establishment of institutional Efficiency in the bodies in the energy sector linkages with international electricity sector strengthened and start of collaborative bodies in the energy sector improved information/ data activities base Preparation of project finance Transparency c. Comprehensive MIS and and power sales agreements & accountability strengthened ties GIS system in place for models ensured with International knowledge management Energy Agencies and use of data for Establishment of hydropower Integrated Multi- evaluation, planning and laboratory for material testing, sectoral Utility Druk Green Power forecasting of programmes/ project modeling, & efficiency Regulation in place Corporation projects testing of hydraulic machines (DGPC) Ltd formed d. Hydropower laboratory Multi-sector regulations / System Operator established restructuring (SO) designated e. Multi-sector regulatory Management Information body in place Systems & Geographical Information System f. Effective and functioning ICT in place Information Communication Technology Development MINISTRY OF ECONOMIC AFFAIRS 139 E. Management Arrangements Institutional Arrangements The Department of Energy of the Ministry of Economic Affairs shall be the overall execution and coordination agency for the programme. The Divisions and other Power/Energy Corporations will be the implementing agencies with technical assistance from development partners/institutions. The Dzongkhag Head Quarters/ Gewog Offices can be contacted for regional support and public participation. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Project finance and power sales agreements 11.340

2 Establishment of institutional linkages with international bodies 14.000 in the energy sector

3 Management Information Systems, Geographical Information 22.315 System and ICT

4 Establishment of Hydropower Laboratory for material testing, 0.000 project modeling & efficiency testing of hydraulic machines

5 Multi-sector regulations/Restructuring 33.500 Total 81.155 MEA/12: DEVELOPMENT OF RENEWABLE ENERGY A. Overview

1 Sector : Energy & Power

2 Linkage to National Development : Vision 2020 to provide electricity for all and provide Objectives & Strategies environmentally clean, safe, reliable, equitable and affordable access to energy to contribute to economic growth, self-reliance and improved quality of life and income-earning opportunities for the poor.

3 Expected Results : 3,582 off-grid houses electrified, 1000 SPV rehabilitated, 2 micro hydels installed, 112 houses electrified through micro hydels, 1 wind turbine installed for electricity generation, 1 biogas demonstration plant built

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger MDG Goal 7: To Ensure Environment Sustainability, in particular Target 9 sub- indicators pertaining to energy per capita use and CO2 emissions SDG Goal 1 & 2: Eradication of hunger poverty and half proportion of population in poverty by 2010 5 Donor Agency :

6 Target Group : Off-grid consumers/remote communities 7 Scope : Nation wide 8 Status-Ongoing/New : Ongoing/New 9 Timeframe : Five years (2008-2013)

140 Tenth Plan Document, Volume 2

10 Indicative Capital Cost : Nu. 285.760 m

11 External Financing Required : Nu. 285.760 m 03 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Department of Energy, Dzongkhags, Private Sector (RESCOMS) MINISTRY OF ECONOMIC AFFAIRS

14 Documents available : RE-Master Plan, Power System Master Plan, Draft Integrated Energy Management Master Plan, Draft Renewable Policy Framework for Micro Hydro and Solar PV 2006; Sector Tenth Plan B. Situational Analysis Access to energy is a basic human need and is deeply fundamental to improving the quality of life. It is moreover, at the national level, an essential input and key ingredient for sustainable development. Development and underdevelopment in of themselves are often adjudged on the basis of energy consumption which constitutes a key development progress indicator for many nations. Moreover, many poor and underdeveloped communities are often trapped in a vicious circle of poverty and underdevelopment due to energy poverty. Most rural families in Bhutan also spend a considerable amount of time in energy gathering activities such as collecting fuel wood for heating and cooking. Therefore better and enhanced access to energy services can thus greatly help reduce workloads of poor households and mitigate indoor air pollution, generate income and employment and facilitate environmental sustainability. As such, the energy sector has always been a high priority sector in Bhutan and is deemed to be particularly relevant for poverty reduction and rural development. The development and provisioning of renewable energy will also strengthen Bhutan’s environmental conservation efforts and initiatives while strengthening its energy security. The Tenth Plan target to provide electricity to 100% of all households by 2013 and the Rural Electrification Master Plan 2005 provide indications that 88% of the population will need to be connected to the national electricity grid and 12% by distributed renewable energy systems like solar and micro-hydels. In addition, 6,019 consumer households will have to provided electricity under the fill-in RE. Since most of the off-grid target households belong to low income groups and the poorer sections, providing energy services at affordable rates and in a sustainable manner will be difficult. Addressing this challenge will require innovative approaches to improve on existing institutional mechanisms. Considering the cost of RE technologies, associated financial risks and the limited paying capacity of rural consumers, financial assistance from the Royal Government in the form of subsidies will probably be inevitable to underwrite the capital and operational and maintenance costs if rural energy services are to be sustained. The lack of a national policy for development and utilization of renewable energy resources, inadequate institutional set up, ineffective implementation framework, lack of standardized technology, lack of access to funds, limited private sector involvement and inadequate training and capacity building at various levels are some of the constraints and barriers hindering the supply of rural energy services. The Tenth Plan energy programmes have been designed and developed taking these particular constraints into account towards meeting the target of electricity for all by 2013. This also includes experimental programmes to explore the latent potential of various other alternative energy sources to diversify the energy mix which would contribute to national energy security. MINISTRY OF ECONOMIC AFFAIRS 141 Based on technical recommendations, the electrification of Laya is now being included under the on-grid programme. The investment required for construction of micro-hydels at Soe Jangothang and Linhzhi is extremely high and estimated at Nu 23.48 Million and Nu 35.28 million respectively. In terms of the electricity connection cost per household, this works out to Nu 782,520 for Soe Jangothang and Nu 434,440 for Lingzhi. This may be compared to the average rural electrification cost of Nu 130,000 per household in other parts of the country. Through several DYT meetings, the communities from Soe Jangothang and Lingzhi have repeatedly presented their request for the micro hydels and therefore the development of these two plants may need to be taken up despite the high connection costs. Additionally, the construction of micro-hydels for the Khelphu village under Trashigang Dzongkhag has been withdrawn and will now be taken up under Solar PV programme as means of electrification for techno-economic reasons. C. Strategy As a first step, a comprehensive policy on the development, promotion and utilization of renewable energy resources will need to be formulated. This RE Policy will serve as the policy direction on how the energy needs of the off-grid areas are to be served. This will include developing appropriate strategies to harness different renewable energy sources, ascertaining appropriate financing mechanisms, identifying necessary institutional strengthening needs at strategic levels and the establishment of a testing laboratory for the standardization of renewable energy technology products and services. The alternate sources of energy to be explored include solar, wind, micro- hydels, hydrogen fuel cells, biomass, and biogas/waste energy. On the demand side of energy management, efforts will be made to improve energy efficiency utilization through the introduction of improved stoves and solar water heaters and driers. The lack of reliable resources is one of the most difficult impediments for the sustainable development and promotion of renewable energy technologies. Therefore, the issue of equity, subsidy, ownership, marketing, implementation and promotional aspects will be addressed during the formulation of the comprehensive RE policy. The RE programme will be implemented through a participative and consultative approach with local communities exercising their choice in line with the decentralization policy and relevant DYT/ GYT provisions which empower the DYTs to direct and approve rural electrification schemes and GYTs to administer, monitor and review the maintenance of community properties such as micro- hydels and other power plants and implement institutional capacity building activities. Fabrication units/repair workshop and testing laboratory will also be established to promote renewable energy technologies for local production and standardizing systems/specifications. The M&E activities and outreach programme will also be carried out.

142 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Reduced poverty and quality 100% off-grid Electrification of Development of solar energy MINISTRY OF ECONOMIC AFFAIRS of life of the rural and villagers electrification 3,582 new solar resources improved through off-grid hhs Solar home system electrification Wider use of Detail survey of 3,582 new energy efficient Two new micro and 4000 existing systems Fulfillment of the Vision 2020 technology hydels set up Re-hab and maintenance of of Electricity of All Solar PV system Reduced Electrification of Minimized adverse dependence on 112 hh through Micro-Hydel development environmental impact through firewood micro hydel hydels Soe Jangothang micro hydel promotion of efficient and set up Lingshi Micro Hydel renewable forms of energy Better planning, coordination, Promotion of Experimental program Biogas Improved health, sanitation, implementation, energy efficient plant/waste energy Improve education, and income monitoring devices stoves generating opportunities of renewable energy resources Introduction of Wind power plant Increased energy security new technologies Hydrogen fuel cells through promotion of Introduced new Outreach programme on indigenous energy sources technologies Improved testing renewable energy, energy and conservation measures and coordination efficiency and conservation Reduced facilities initiatives Safe and reliable supply of dependence on Solar heater and driers electricity fossil fuels Establishment of RE technology Institutional strengthening Enhanced institutional repairing unit/ Training of private sector, and human capacity of workshops villagers and communities private sector, villagers and communities Active participation Establishment of fabrication of private sector units/repairing workshops for and communities RETS RE policy Renewable energy policy formulated formulation E. Management Arrangements Institutional Arrangements The Department of Energy under the Ministry of Economic Affairs shall be the executing agency and the Renewable Energy Division within the DoE shall be implementing and coordinating agency for the programmes detailed. Dzongkhags, village technicians and communities will be extensively involved for the physical implementation of the activities as per the guidelines to be provided by the Department of Energy. The monitoring and evaluation oversight shall be provided by the Renewable Energy Division. MINISTRY OF ECONOMIC AFFAIRS 143 Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Development of Solar Energy Resources 139.000 1.1 Solar home systems (3582 hhs) 131.680 1.2 Detailed survey of (3582 new hhs and 4000 existing systems) 3.000 1.3 Rehabilitation of 1000 existing systems 4.320

2 Development of Micro hydels (112 consumers) 58.760 2.1 Soe Jangothang Micro Hydel (30 consumers) 23.480 2.2 Lingshi Micro Hydel (82 consumers) 35.280

3 Experimental Program 53.000 3.1 Biogas plant/waste energy 5.000 3.2 Improved stoves 8.000 3.3 Wind power plant 20.000 3.4 Hydrogen fuel cells 2.000 3.5 Promotion of renewable energy, energy efficiency and 10.000 conservation 3.6 Solar heaters and driers 8.000

4 Institutional strengthening and capacity building 35.000 4.1 Training of private sector, villagers and communities 15.000 4.2 Fabrication units/works for renewable energy technology/private 10.000 workshop 4.3 Formulation of comprehensive renewable energy policy 10.000 Total 285.760 * RED activities are to be taken up under a fully decentralized model by the local Governments/ communities. MEA/13: STRENGTHENING OF NATIONAL HYDROLOGICAL AND METEOROLOGICAL SERVICES A. Overview 1 Sector : Energy

2 Linkage to National : Vitalizing Industry for poverty reduction through hydro- Development Objectives & meteorological information and services for sustainable water Strategies resources development and management

3 Expected Results : Good coverage of hydro-meteorological monitoring network station and related infrastructure; Capacity to support and manage network to provide better hydrological and meteorological services and products enhanced; Access to long time series data

4 Relevant MDG & SDG : MDG Target 10: Halve the proportion of population without access to safe drinking water SDG Goal 4: Ensure a robust pro-poor growth process. SDG Goal 18: Acceptable level of water and soil quality 5 Donor Agency :

144 Tenth Plan Document, Volume 2

6 Target Group : Department of Energy, other national line agencies, relevant regional(SARRC, BIMSTEC, ICIMOD) and international organizations (WMO, UNESCO) 03 7 Scope : Nation-wide 8 Status-Ongoing/New : New/ongoing MINISTRY OF ECONOMIC AFFAIRS 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 187.490 m

11 External Financing Required : Nu. 187.490 m

12 Executing Agency : Department of Energy, MoEA

13 Implementing Agencies : Hydro-met Services Division, DoE

14 Documents available : Bhutan Power Master Plan (Project BHU/87/025) – Final Hydro meteorological Network Report, Vol 1 to 8, Dec 1991; Water Resources Management Plan and Update of the Power System Master Plan – Baseline Study Report; Water Resources Management Plan – Final Report, Vol A to D3, Dec 2003; Sector Tenth Plan B. Situational Analysis Reliable and accurate information on the condition and trend of country’s water resources – surface and sub-surface quantity and quality– is highly pertinent in planning for socio-economic development and the conservation of nautral environment. This information and knowledge not only provides a scientific basis for the planning and development of strategic infrastructure like hydropower projects, broads and ridges and irrigation channels, but can also be useful to help protect life and property through reliable flood forecasting and warning services. Morever, in Bhutan’s context, it further facilitates the inventorying of various available natural resources. The hydro-meteorological network covering the entire country was designed and established as a part of the Bhutan Power System Master Plan project in 1991. The network provided a variety of hydro-meteorological information and services for various water-use sectors, particularly for hydropower, drinking water supply, agriculture and industry. The network was further strengthened and upgraded over the Ninth Plan and Table 1 summarises the existing hydrology and meteorological network infrastructure. Table 1: Summary table of existing station network and infrastructures # Infrastructures Unit No. as of June 2006 A Hydrological network I Principal Station Numbers 13 ii Secondary Station Numbers 11 iii Flood Warning Station Numbers 15 iv Sediment Sampling Station Numbers 5 B Meteorological Network I Class A Station Numbers 20 ii Class C Station Numbers 61 iii Special Station Numbers 4 iv Snow Gauge Numbers 4 MINISTRY OF ECONOMIC AFFAIRS 145 The flood warning network stations are established on the large north–south rivers that are common to India and Bhutan. Flood warning activity is undertaken by the RGoB in collaboration between the Central Water Commission (CWC) of India. The flood warning stations provide water level data of the main rivers flowing to India for flood forecasting purpose to stations of the CWC in Cooch Bihar, Jalpaiguri, Nalbari and Berbeta. These stations are monitored 24 hrs during the monsoon season and data transmitted using wireless sets on hourly basis to stations in India. Hydro-meteorological Information System and Database Management play a key role in data collection, processing, analysis of water resource use. The existing database archives comprise more than fifteen years of hydro-meteorological data that are mainly used for planning and designing of hydropower projects, but that are also a valuable source of information for various other sectors given its wide application and relevance. However, hydro-meteorology services in Bhutan still remain at an incipient stage of development and its growth has been extremely slow. This is mainly attributed to the lack of proper organizational setup as well as the limited technical expertise of the staff, the lack of technical professionals like hydrologists, meteorologists and climatologists and inadequate network facilities and equipment due to the lack of resources. As reflected earlier, hydro-meteorological information is a highly essential input required by all economic sectors. This is further compounded by the fact that with time the needs of hydro- meteorological information also change. A hydrometric programme designed purely for current needs may be inadequate in the long term, so the programme needs to dynamic and accordingly strengtheninged according to information requirement. Over the Tenth Five Year Plan, the approach will be to focus on the institutional strengthening of hydro-met services to support and provide quality data, products and services to meet the needs of the general public, emergency services and other specialized users of flood warning services and facilitate the planning and design of hydropower projects. C. Strategy The following broad strategies are to be adopted to strengthen the hydrological and meteorological services through: • Maintaining and upgrading the monitoring network stations and developing existing observing systems, telecom and data processing facilities, and keeping traditional functions for basic data collection, processing and analysis; • Install early warning system along Punakha-Wangdue valley; • Ensuring well managed hydro-meteorological and flood warning services network and database; • Developing and facilitating easy access to database, resources and experts; • Adopting scientific and rigorous methodology and inputing adequate resources for timely information and services for flood forecasting and warning; • Promoting human resources development and management and effective utilization of resources and use of ICT; • Introducing new standardized user-friendly technology and equipment;

146 Tenth Plan Document, Volume 2 • Providing opportunities for staff to participate in international trainings, seminars, workshops in the field of hydrometeorology; 03 • Promoting and strengthening cooperation and collaboration with national, regional and international organizations; and MINISTRY OF ECONOMIC AFFAIRS • Promoting research and development. During the Ninth Plan, The DoE implemented the Institutional Strengthening of the Energy Sector – Phase II that has immensely improved the institutional capacity of the Department in various areas including human resources development. To continue technical support, the DoE has proposed the Phase – III to be implemented from 2008-2013. This project support covers the strengthening of Bhutan Electricity Regulations, human resources development, strengthening of hydro meteorological services and support for the accelerated hydropower development programme. The budget for strengthening of hydro meteorological services is booked under this programme. D. Results Framework Impact Outcome Output Projects/Activities Institutional Improved hydro- New hydro-meteorological network Strengthening capacity for meteorological stations, sediment sampling and Expansion of hydrological and network stations with stations, seismic and wind Monitoring Network meteorological good coverage across monitoring stations established services the country and disaster Site office cum store constructed management Risk of Glacial Lake Early warning system installed in Install early warning related to flood Outburst Flood Punakha-Wangdue valley system along Punakha- forecasting reduced along major Wangdue valley and warning rivers strengthened Integrated central database Access to reliable management system with GIS for Database Integration, hydrological and hydro-meteorological information Information and cooperation with meteorological developed Statistics relevant national information needed and international for various purpose Web site designed and launched organizations enhanced Data book published Regional Field Offices and Flood Forecasting and warning Centre Institutional capacity National capacity for established building for hydromet flood forecasting and services warning enhanced Early warning System established Capacity of staff to manage network and implement flood forecasting and warning framework strengthened Cooperation with Cooperation Agreement signed Institutional national, regional and Cooperation & international agencies Research work carried out and Research and strengthened paper published Development MINISTRY OF ECONOMIC AFFAIRS 147 E. Management Arrangements Institutional Arrangements The programme at national level will be coordinated and implemented by the Division of Hydrology and Metereology under the Department of Energy. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Strengthening and Expansion of Monitoring network of hydro- meteorological services Establishment of hydrological/flood warning stations including infrastructure 109.990 Establishment of meteorological stations Establishment of sediment sampling stations Establishment of seismic monitoring stations Network infrastructure

2 Database Integration, Information & Statistics 15.000 2.1 Establish integrated central database service with GIS 10.000 2.2 Design and launching of website 1.000 2.3 Publication of pamphlets/brochures 3.000 2.4 Dissemination of information 1.000

3 Institutional Strengthening 56.500 3.1 Establishment of regional hydromet services in the East 5.000 3.2 Establishment of flood forecasting centre and warning system 10.000 3.3 Installation of early warning system along Punakha-Wangdue valley 41.500

4 Institutional Cooperation and Research and Development 6.000 4.1 Promote cooperation with national, regional and international 1.000 organization 4.2 Research and development 5.000 Total 187.490 MEA/14: ELECTRICITY REGULATION A. Overview

1 Sector : Energy

2 Linkage to National Development : Vitalizing Industry and Expansion of Stratetgic Infrastructure Objectives & Strategies by providing clean energy services and enhancing national energy revenue and security for poverty reduction and rural development

3 Expected Results : Electrical safety standards, rules, regulations for regulating electricity operations and monitoring of performance indicators and improved efficiency of electricity industry including Tariff fixation and revision. 4 Relevant MDG & SDG :

148 Tenth Plan Document, Volume 2 5 Donor Agency :

6 Target Group : Licensees (GENCOS, BPC, Power Authority)/Electricity Consumers in Bhutan. 03 7 Scope : Nation wide 8 Status-Ongoing/New : New/Ongoing MINISTRY OF ECONOMIC AFFAIRS 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 30.000 m

11 External Financing Required : Nu. 30.000 m

12 Executing Agency : Planning & Coordination Division/Bhutan Electricity Authority, Department of Energy, MoEA

13 Implementing Agencies : Bhutan Electricity Authority

14 Collaborating Agencies : RGoB Agencies

15 Documents available : Electricity Act 2001; Tariff Determination Regulation; License Conditions for Generator and Distributor; Accounting and Reporting Regulation; Sector Tenth Plan B. Situational Analysis The Electricity Act was passed by the National Assembly during the 79th session on 26th July 2001. The main purpose of this Act was to provide for the establishment of Bhutan Electricity Authority, engagement of the private sector in electricity supply and layout the relevant regulations. The Bhutan Electricity Authority (BEA) has been established as part of the restructuring of the Department of Power in 2002. Since then, the BEA has worked on building its institutional capacity through technical assistance by development partners. The BEA started effectively functioning as an autonomous entity from July 2006 and since then it has already set up various regulations namely tariff determination regulation, distribution and generation license conditions as mandated by the Electricity Act 2001. With the implementation of the rules and regulations, the BEA will also start evaluating and inspecting the technical works implemented by licensees and reporting on the compliance of such works with regulations and standards. This would ensure efficiency among the generators and the distributor. It will also review and determine tariff rates to ensure fair balance of the interests of the public, customers and participants in the electricity sector. The BEA will also seek to ensure that the public is aware of its existence through outreach . The maintaining and ensuring of safety of the workers is also being addressed and the safety code and regulations have been drafted. C. Strategy The main strategy for BEA is as follows: • Process applications for the issuance of licenses for generation, transmission, system operation, export, import, distribution and sale of electricity in accordance to the license conditions; • Monitor the performance of Licensees in compliance with provision of Electricity Act 2001 and the regulations; MINISTRY OF ECONOMIC AFFAIRS 149 • Determine or approve tariffs proposed by the Licensees and review existing tariffs; and • Monitor and manage the private sector bidding process as mandated by the Electricity Act-2001. During the Ninth Plan, the DoE implemented Phase II of the Institutional Strengthening of the Energy Sector which has has immensely improved the institutional capacity of the department in various areas including human resources development. To continue this technical support from development partners, the DoE has proposed for the third Phase to be implemented from 2008-2013 which addresses the strengthening of Bhutan Electricity Regulations, human resources development, strengthening of hydro meteorological services and support for the accelerated hydropower development programme. The budget for strengthening of Bhutan Electricity Regulations has been included under this programme D. Results Framework Impact Outcome Output Projects/Activities Safe and Reliable electricity Monitoring the Rules, regulations, Implementation of the supply provided compliance of standards and codes rules and regulations to rules, regulations, in place start up the function of Affordability addressed standards and codes the regulator / Creation of of practice awareness to the public Efficient and credible dispute resolution mechanism in place E. Management Arrangements Institutional Arrangements The regulatory function related to electricity will be dealt by Bhutan Electricity Authority. The BEA has formed a board compromising five commissioners as member and the BEA secretariat performs all the functions mandated in the Electricity Act and puts issues to its designated commissioners for their approval. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million) 1. Establishment of ISO, amendment of Electricity Act 2001, and other professional services 15.000 2. Implementation of the rules and regulations to start up the function of the regulator & creation of awareness to the public 15.000 Total 30.000

150 Tenth Plan Document, Volume 2 MEA/15: PRIVATE SECTOR PARTICIPATION 03 A. Overview 1 Sector : Energy & Power Sector MINISTRY OF ECONOMIC AFFAIRS

2 Linkage to National : Vitalizing Industry by Engaging Private Sector participation Development Objectives & in hydropower development in providing clean energy Strategies services, enhancing national revenue and energy security for poverty reduction and rural development

3 Expected Results : Private sector participation in hydropower sector, increased revenue generation through power export, enhanced energy security, additional generation capacity to meet increased demand of power for domestic consumers/ industries and increase opportunities for employment 4 Relevant MDG & SDG : MDG Goal 1:Eradicate extreme poverty and hunger SDG Goal 1 & 2: Eradicate hunger poverty and halve proportion of people in poverty by 2010 5 Donor Agency :

6 Target Group : Domestic Electricity Consumers and Export market

7 Scope : Nation wide 8 Status-Ongoing/New : New/Ongoing 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 48.000 m

11 External Financing Required : Nu. 48.000 m

12 Executing Agency : Department of Energy (DoE), MoEA

13 Implementing Agencies : Planning & Coordination Division, DoE and private Sectors/ Independent Power Producers

14 Documents available Draft Hydropower Policy, FDI Policy, Sector Tenth Plan B. Situational Analysis The development of hydropower projects at present is highly donor dependent and there is no systematic investment plan for its accelerated development on a purely commercial basis. All the major hydropower projects developed so far had been through development partner assistance through grant and soft financing. For accelerated development, there is the need for the involvement of private sector or joint venture partners in hydropower development since the donor assistance and capacity will be limited and constrained. It is therefore an opportune moment to increase the involvement of private sector participation for accelerated development of hydropower in the various stages of implementation from planning, design, construction, operation and maintenance of various capacities (mini/micro to maga /commercial projects) of hydro power plants. Additionally, no project studies have also been conducted till date that is financed out of fund/ revenue generated from sale of electricity. It is highly appropriate now to mobilize additional resources (private sector participation in hydropower development/IPP, internal revenue savings as well as FDI) for achieving the accelerated hydropower development. MINISTRY OF ECONOMIC AFFAIRS 151 C. Strategy To help provide alternative models other than the traditional model of hydropower development and expedite the development of hydropower in an accelerated and sustainable manner, there is a need for clear policy framework for hydropower development and proper guidelines for the engagement and participation of independent power producer (IPP), private sector and foreign direct investment. To help formulate and implement this policy and develop the modalities and guidelines for Private Sector/IPP/FDI guidelines, the institutional restructuring and strengthening of the DoE as the focal point and apex body will be necessary. In this regard the DoE will will have to undergo institutional restructuring, conduct innovative financial and project structuring options and other institutional capacity building in line with preparation for participation of both private and public in hydropower development during the Tenth Plan. D. Results Framework Impact Outcome Output Projects/Activities Accelerated development Policy and Regulatory Private sector Policy Formulation of hydropower through Framework for Private participation policy in Hydropower increased involvement Sector Participation in development in Development for of IPPs, Private Sector Hydropower Development/ the hydropower involvement of private and FDI in hydropower electricity Sector in place development/electricity sector Participation/ development sector IPP /FDI Sound Policy and Recruitment on Regulatory Framework contract basis of the in Hydropower legal advisor, technical Development expert and economic expert E. Management Arrangements Institutional Arrangements The formulation of the policy document for hydropower development and development of guidelines for IPP and FDI shall be carried out by the Department of Energy by recruiting competent consulting firms. The policy documents and guidelines shall be presented, discussed and deliberated with the relevant stakeholders in a workshop before finalization. As this work is a spillover activity from the Ninth Plan since 2007, only a limited budget is indicated. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Policy Formulation in Hydropower Development for involvement of private sector Participation/IPP/FDI as Piggy back TA

2 Preparation of IPP tender documents and other IPP facilitation 48.000 services, including launching of pilot IPP project as Piggy back TA Total 48.000

152 Tenth Plan Document, Volume 2 MEA/16: MAJOR HYDROPOWER PROJECTS 03 A. Overview

1 Sector : Energy & Power Sector MINISTRY OF ECONOMIC AFFAIRS

2 Linkage to National : Vitalizing Industry and Expansion of Stratetgic Infrastructure by Development Objectives & providing clean energy services and enhancing national energy Strategies revenue and security for poverty reduction and rural development

3 Expected Results : Addition of about 10,000 MW installed capacity by 2020, Increased revenue generation through hydropower exports, enhance energy security and promote sustainable socio-economic development 4 Relevant MDG & SDG : MDG Goal 1:Eradicate extreme poverty and hunger SDG Goal 1 & 2: Eradicate hunger poverty and halve proportion of people in poverty by 2010 5 Donor Agency :

6 Target Group : Domestic consumers and export market. 7 Scope : National 8 Status-Ongoing/New : New

9 Tentative Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 0.000 m

11 External Financing Required : Nu. 0.000 m [Outside Plan Budget] 12 Executing Agency : Ministry of Economic Affairs

13 Implementing Agencies : Ministry of Economic Affairs, Project Authority, Corporate Entities, JV/IPP

14 Documents available : Updated Power System Master Plan-2004, Draft Hydropower Development Policy, Umbrella Agreement, Bi-lateral Project Agreements, Tenth Plan, DPRs/FSR of some Projects, B. Situational Analysis To achieve the target hydropower capacity of 10,000 MW by the year 2020, it would require about eight large projects to be taken up with an investment over Nu.426.00 billion over the next twelve years. These projects have been kept outside the plan works as these huge resource requirements will have to be mobilized externally through models such as bilateral financing and joint ventures. Some of the projects are already in the pipeline of being constructed through bilateral financing. The preparation of the Detailed Project Report (DPR) of Punatsangchhu I hydropower project has been completed and the project is to be financed by the GoI through a grant funding upto 40% of project cost with the balance 60% to be financed through loan. Subsequent to signing of the bi- lateral agreement regarding its implementation in July 2007, the Punatsangchhu-I Hydroelectric Project Authority (PHPA) was instituted in October 2007 for implementing the construction and O&M of the project. The Project Management formed in November 2007 has already initiated the development of support infrastructure works and the project optimization and bid preparation is currently underway. The project is scheduled for commissioning in 2015. The 114 MW Dagachhu Hydroelectric Project Authority (DHPA) was constituted in August 2007 and is being promoted as a CDM project to acquire additional revenue through sale of CERs. This project promoted by the Department of Energy (DoE) has been handed over to DGPC for implementation including for necessaryresource mobilization and ownership of the project. MINISTRY OF ECONOMIC AFFAIRS 153 Currently the construction of approach roads, bridges and construction power lines is underway. The preparation of tender documents is also being prepared. The construction of main EPC contracts is expected to start by beginning of 2009 and scheduled for commissioning by 2011/2012. The total estimated cost of the project is about Nu. 8.00 billion. While the preparation of DPR for 1000 MW Punatsangchhu-II project is currently being carried out and is expected to be ready by the end of 2008, the draft DPR of 720 MW Mangdechhu project was available in May 2008. Both the projects are expected to be implemented by 2009/2010 by GoI through the 40:60 grant and loan financing model. As per the draft DPR of Mangdechhu, the estimated cost for the project is Nu. 37.12 billion. C. Strategy The implementation of Punatsangchhu-I Hydroelectric Project, Punatsangchhu II and Mangdechhu projects shall be taken up on a model similar to that of the Tala Hydroelectric Project but with a funding pattern of 40% equity and 60% debt. The Dagachhu hydroelectric CDM project will be financed through 40% equity and 60% debt raised from various other sources. The equity part of the project is being financed by RGoB, NPPF, ADB (hard term ADF), DGPC and power off-taker (Tata Power Trading). The debt is being explored from ADB (OCR), Austrian OeKB, NPPF and SBI. The project will be implemented by Dagachhu Hydroelectric Power Corporation (DHPC) under the DGPC/DHI. The following list of priority projects shall be taken up during the Tenth Plan. # Project Name Financing

1 Punatsangchhu-I (1200 MW) GoI Bilateral

2 Dagachhu (114 MW) RGoB and other sources

3 Mangdechhu (720 MW) GoI Bilateral

4 Punatsangchu-II (1000 MW) GoI Bilateral

5 Sankosh (4000 MW) GoI Bilateral

6 Kuri/Gongri (1800 MW) GoI Bilateral

7 Chamkharchhu-I (670 MW) Joint Venture

8 Kholongchhu (486 MW) Joint Venture

154 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Hydropower to emerge as the core Preparation of Conclude financing Initiate the start up MINISTRY OF ECONOMIC AFFAIRS sector of Bhutanese economy Detailed Project agreement and terms of and construction The sustainable and environment- Report (DPR) with GoI of the various friendly development of hydropower hydro-power resources would facilitate enhanced Secure project DPRs to be completed projects listed contribution to GDP growth and finances in time below national revenues including hard currency from sale of carbon Conclude Start negotiation with credits through CDM projects. It power purchase India for PPAs and would specifically contribute to the agreement (PPA) successfully complete following targets: and ERPA PPAs for some of the projects Hydropower share of GDP at over 15% Start construction of Hydropower contributing 36% of power projects through national revenue IPP Electricity for all Grid Electricity to all district HQs

1602 MW Hydropower installed capacity E. Management Arrangements Institutional Arrangements As the Department of Energy (DoE) is responsible for macro level planning, policies, and the coordinating functions of the energy sector, the DoE will be responsible for overall execution and coordination including imparting policy guidance for project implementation. However, the hydropower project construction will be undertaken by respective project authorities and corporate entities. Indicative Cost Indicative Cost # Description of Projects/Activities Remarks (Nu. in million)

1 Bitateral/RGoB 1,31,077.000 1.1 Construction of 1200 Punatsangchhu-I HEP Outside plan 27,261.000 (Part) 1.2 Construction of 720 MW Mangdechhu HEP Outside plan 25,984.000 (Part) 1.3 Construction of 1000 MW Punatsangchu-II HEP Outside plan 20,000.000 (Part) 1.4 Construction of 4000 MW Sankosh HEP (Part) 40,000.000 Outside plan 1.5 Construction of 1800 MW Kuri/Gongri HEP Outside plan 11,880.000 (Part) 1.6 Construction of 620 MW Ammochhu Reservoir 5952.000 HEP (part) MINISTRY OF ECONOMIC AFFAIRS 155

2 Joint Venture 61,305.000 2.1 Construction of 114 MW Dagachhu HEP Outside plan 8,000.000 (Complete) 2.2 Construction of 486 MW Kholongchhu HEP Outside plan 10,109.000 (part) 2.3 Construction of 180 MW Bunakha Reservoir Outside plan 5,508.000 HEP (part) 2.4 Construction of 670 MW Chamkharchhu-I HEP Outside plan 15,008.000 (Part) 2.5 Construction of 900 MW Wangchu Resevoir Outside plan 22,680.000 HEP (part) Total: 1,92,382.000 MEA/17: CAPACITY ENHANCEMENT IN GEO-SCIENTIFIC INVESTIGATIONS AND MINERAL DEVELOPMENT A. Overview

1 Sector : Geology and Mines

2 Linkage to National : Vitalizing Industry and private sector development for Development Objectives & economic growth, improved quality of life and poverty reduction Strategies

3 Expected Results : Adequate laboratory and field equipment available for geo- scientific investigations. Country has proved metallic & non-metallic mineral resources ready for industrial & economic development. Productive and correlated information for national planning and decision making. Revenue and employment generation from mining industry Better technology in mineral resource development Sustainable economic development and better quality of life through improved planning and information sharing

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger Goal 7: Ensure environmental sustainability (through stringent application of geo-scientific know-how) SDG Goal 2: Halve proportion of people in poverty by 2010 SDG Goal 4: Ensure a robust pro-poor growth SDG Goal 18:Acceptable level of water and soil quality SDG Goal 19: Acceptable level of air quality SDG Goal 22: Ban on dumping of hazardous waste 5 Donor Agency :

6 Target Group : Private sector and relevant stakeholders 7 Scope : National 8 Status-Ongoing/New : New 9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 76.715 m

11 External Financing Required : Nu. 76.715 m

12 Executing Agency : Department of Geology and Mines (DGM)

13 Implementing Agencies : Department of Geology and Mines

14 Documents Available : Past Five Year Plan document, Atlas of Minerals of Bhutan, Geological mapping Reports of DGM and GSI in 1:50000

156 Tenth Plan Document, Volume 2 B. Situational Analysis The primary and major roles and responsibility of the DGM are geological mapping and mineral 03 exploration. From the 7th Five Year plan onward, the roles and responsibilities of the department was diversified into other geoscientific investigations like geo-hazard assessment, engineering geological and geotechnical investigations, glaciology studies, seismology and geophysical MINISTRY OF ECONOMIC AFFAIRS investigations. Further the responsibility of control on minerals, mining industry and enforcement of mining legislation was also entrusted to the department. With the acute lack of resources, the primary responsibility of mineral investigation and mapping has been overshadowed by other responsibilities of glaciological, geo-hazard and engineering geological investigations. Apart from the field activities carried out by the Geological Survey of India (Bhutan unit) from 1961 to 2002 the department has not been able to discover and prove additional mineral deposits other than few non-metallic deposits. Substantial archive data and reports are available with the DGM. These valuable resources needs to be re-visited, analysed and compiled using modern tools and techniques, including ICT, to obtain productive and correlated information for national planning and decision making. Some of these reports and data date back to 1961 when the Geological Survey of India (Bhutan Unit) started geological investigations in Bhutan. With the availability of new technology and field instruments, geo-scientific investigations can be revolutionalised to provide cost and time effective and accurate information. Therefore, research on the use of new technology is necessary and will be carried out. The mining industry is governed and regulated under Mines and Minerals Management Act 1995 with the Department of Geology and Mine (DGM) responsible for implementing the act and its provisions. The key functions of the department include maintaining control on minerals exploitation, the enforcement of mining legislation and regulations and monitoring the mining industry. Bhutan has been extracting on an increasing scale of production industrial minerals like limestone, dolomite, gypsum, quartzite, talc and iron ore; construction material like marble, slate, shale and stone aggregates and fuel minerals such as coal. At present there are 67 operating mines and 50 mineral collection permits among 197 mining leases and permits issued to 134 companies and individuals. Among these the gypsum, coal and dolomite mining licenses were auctioned in the year 2003, 2004 and 2005 respectively. C. Strategy The department plans to explore and prove mineral resources endowment, especially the metallic minerals with significant economic value through the use of the latest technology. The potential construction material quarry sites in Dzongkhags that are in dearth of construction aggregates shall be identified. The geological database for completed deposit assessment shall be generated and inventory maintained using software tools. The geology, geomorphology, hydrogeology, structure and lithology of the country shall be mapped systematically and a systematic digital database will be developed. Additionally, the DGM will also carry out slope stability, foundation and site suitability studies on request from relevant agencies of the Royal Government, carry out geo-hazard assessment for the country especially the new/proposed urban centres and landslide mapping and generate hazard zonation and risk maps. MINISTRY OF ECONOMIC AFFAIRS 157 The Research and Development Unit of the Department will start functioning with desk research initially. The capacity development and institutional strengthening aspects will be initiated with the establishment of the centre for research and development and GIS laboratory and publication unit. The unit will also begin to utilize remote sensing technology and the geographic information system tools during mapping, mineral exploration, change detection of landslides, monitoring glaciers and glacial lakes, environment monitoring of mines, etc. Field and laboratory measurements and assays will provide data for further research. The key strategies of the mining sector include the formulation and enactment of environment and people friendly law, rules and regulations and the stringent enforcement of mine safety and environmental management rules and regulations under Mines and Minerals Management Act 1995. Other strategic activities will include developing a code of best practice for mining activities, evaluating mines, mineral deposits and mine feasibility studies, and conducting mining project appraisals. This will help enhance the mining industry’s contribution in raising people’s living standards through providing employment and business opportunities and in general stimulate economic and industrial growth in a sustainable manner. In order to achieve the above mandate, the strengthening of the institutional capacity will be done. It shall include procurement and installation of full-fledged laboratory and field equipment and legislative framework and people friendly policy.

158 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Install equipment and The Department Equipment, and software All equipment, software to support mineral MINISTRY OF ECONOMIC AFFAIRS will have are installed to support software and field exploration and mapping full-fledged mapping, mineral vehicles required that include heavy mineral institutional exploration and mine for geological laboratory, AAS, XRF, ICP, capacity to monitoring investigations are provide quality available petrological microscope, services Scanning Electro Microprobe, in mineral field vehicles, equipment for and other surveying, mapping, drilling, geoscientific communication etc investigations Department professionals Building to house Construct building at DGM and data and laboratory with officials and generation compound in Samtse to adequate office space laboratories are accommodate office space of available officials and laboratory Research and analysis Research and Carry out activity involving centre established along analysis centre equipment, logistics and with remote sensing and established professional services GIS laboratory Remote sensing and Procure hardware, software, GIS laboratory set up field equipment and data Publication facility Set up the publication cell with established adequate facility Mining and mineral data are Mining and mineral Establish Mineral Titles available in published form data are fed registry to keep records of into information mining data management system Mineral law and guidelines Guidelines and Review Mines and Minerals friendly to mineral legislation for mining Management Act 1995, conservation, ecology & available develop relevant rules and environment, human health regulations, policy and and economic development guidelines for sustainable is in place mineral resource exploitation Human resource capacity Employees imparted Train professionals in enhanced through in-country adequate knowledge specialized jobs through in- and overseas training through trainings country and overseas training E. Management Arrangements Institutional Arrangements The different divisions and sections under the department shall be responsible for implementation of this programme under guidance from the Director. As there is currently limited manpower available for geo-scientific investigations, the DGM will recruit all the geologists graduating from various universities to enhance manpower capability. The department will divert attention from engineering geological investigations towards geological mapping and mineral exploration. MINISTRY OF ECONOMIC AFFAIRS 159 Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Research and Development in geoscientific and mining 3.900 1.1 Establishment of research and analysis center 1.900 1.2 Establishment of remote sensing & GIS laboratory 1.250 1.3 Research activities in geoscientific and mining field 0.750

2 Geological mapping & mineral exploration 53.955 2.1 Geological investigation of heavy metals in Buxa/shumar formation 4.187 2.2 Investigation & proving of cement grade limestone 2.860 2.3 Investigation and proving of FeSi grade quartzite 1.816 2.4 Geological investigation of base metals 3.817 2.5 Geological investigation for locating and proving construction 0.619 materials deposits and prospective quarry sites 2.6 Detailed toposheet mapping in 1:50,000 scale in the unmapped areas 1.500 2.7 Geological expedition to unexplored parts of the country 1.596 2.8 Procurement and installation of equipment for the laboratory 21.750 2.9 Construction of office building in Samtse 15.810

3 Engineering Geological & Geotechnical investigation 4.150 3.1 Geotechnical and slope stability/hazard studies in selected urban 3.450 centers 3.2 Hazard& geotechnical studies of selected highways 0.700

4 Promotion of environment friendly mining industry 14.710 4.1 Promotion of environment friendly mining industry 0.600 4.2 Establishment of registry of mineral titles 0.450 4.3 Review of existing law and formulation of mineral prospecting 1.360 regulations and policy 4.4 Inspection of all mines 2.250 4.5 Decentralization of mines inspection and monitoring to regional and 10.050 local level Total 76.715 MEA/18: ASSESSMENT AND MONITORING OF CLIMATE CHANGE INDUCED AND GEOLOGICAL HAZARDS A. Overview

1 Sector : Geology & Mines

2 Linkage to National Development : Effective National Spatial Planning to reduce risk from Objectives & Strategies climate change and geological hazards

3 Expected Results : Inhabitants of river valleys having glacier fed rivers start living risk free lives; Earthquake and tectonic movement monitoring will be regular practice with development of GPS equipped seismic network in the country; All national infrastructure development take place on safe and stable ground in the future

160 Tenth Plan Document, Volume 2

4 Relevant MDG & SDG : MDG 7: Targets 9 pertaining to

5 Donor Agency : 03

6 Target Group : All Bhutanese people living on mountains and valleys 7 Scope : National MINISTRY OF ECONOMIC AFFAIRS

8 Status-Ongoing/New : New (GLOF related ongoing)

9 Tentative Timeframe : 5 yrs (2008-2013)

10 Indicative Capital Cost : Nu. 164.860 m

11 External Financing Required : Nu. 164.860 m

12 Executing Agency : Department of Geology & Mines, Ministry of Economic Affairs

13 Implementing Agencies : Glaciology Section, GSB, Department of Geology & Mines

14 Documents Available : Earlier mitigation work reports, Various reports on glaciers and glacial lakes implemented in collaboration with forgein scientist from Japan and Austria, comprehensive technical mitigation plan for Thorthormi. B. Situational Analysis Mitigating and managing climate change induced hazards and slope stability including landslide, seismological and GLOF hazards are some of the key responsibilities of the Department of Geology and Mines. Bhutan is highly vulnerable to disastrous hazards arising from glacial lake outburst floods (GLOF). GLOFs primarily occur when melting glaciers create and fill up lakes that subsequently burst due to unstable moraine banks resulting in catastrophic flooding. Bhutan’s entire northern areas abound with glaciers and glacial lakes of which several pose potentially high risk of GLOF. Since the last inventory of glaciers and glacial lakes in the country in 2001, many new glacial lakes have been formed. Moreover, Bhutan’s glaciers are also retreating at alarming and record levels - between 20- 30 meters a year - due to climate change and glaciologists warn of the heightened risks of GLOFs, particularly from faster retreating glaciers. There have been five GLOFs in Bhutan with the last one in October 1994, when the Luggye lake burst and caused immense damage downstream in the Pho-chhu valley. There is now the impending danger of a GLOF from a neighboring lake, the Thorthormi, the impact of which would be even more devastating to human life and vital socio-economic infrastructure. A worse-case scenario could also potentially unfold if adjoining glacial lakes were to merge and create a gigantic GLOF as is quite possible with the Thorthormi and Raphstreng glacial lakes that are only separated by a 75 meter moraine dam. Only one glacial lake (Rapstreng Tso) has been mitigated by artificially lowering the lake water level. Considering the imminent risk of GLOF from the glacial lakes in Lunana, experts have recommended the following: • Artificial lowering of Lake water level in the growing Thorthormi lakes (mitigation work); • Installation of technical early warning system (TEWS) for GLOF; and • Hazard zonnation along Puna Tsang Chu. MINISTRY OF ECONOMIC AFFAIRS 161 Currently various activities are being implemented under two projects and include: • Hazard zonnation for Glacial Lake Outburst Flood (GLOF) along Puna Tsang from Khuruthang to Kalikhola initiated in October 2006; and • Hazard zonation in Chamkhar valley for GLOF and assessment of Early Warning System in Punakha-Wangdi valley. The detailed project proposal for the mitigation of Thorthormi lakes in Lunana will be undertaken under this project. The role and responsibilities of the DGM after the Seventh FYP had been expanded to include other geoscientific activities like geohazard assessment, geological engineering and geotechnical investigations, glaciology study, seismology and geophysical exploration. The department has made several attempts to install a network of seismic stations in the country with institutional cooperation with the University of Colorado and University of Texas at El Paso in the United States. However, only temporary stations have been deployed in the past and over a period of six months in 2002, 642 regional/local events have been recorded. The department in the Tenth Five year plan intends to set up a permanent network of stations which would help in identifying regions from where a major earthquake is likely to originate. With adequate geological data, an earthquake risk map can be developed, which can also be used for town planning and disaster management. C. Strategy The project to reduce water levels in Thorthormi lakes to safe levels will be essentially a labour intensive task. The plan is to drain out the water from the lakes manually by widening and deepening the existing channel at the natural outlet. The mitigation work will be carried out over four years with one working season of four months a year. The DGM intends to use local labour from Lunana and other gewogs under Gasa Dzongkhag to generate employment for the local communities in the area and avoid social problems that could arise from using expatriate labour. This activity will be implemented in close coordination with the Ministry of Home and Cultural Affairs who will be a key stakeholder in the project. To ease resource constraints, a component of the WFP Bhutan under the food for work scheme is incorporated in the project plan but is contingent on the availability of resources from the WFP and when the project begins. The primary goal of the Seismology and Geophysics Section is to install a network of permanent seismic stations and purchase required software to have a full fledged seismology unit in the department. This unit will then be capable of locating the origin/epicenter of all major and minor tremors within the region and create a database, which can be used by disaster management groups. In addition, the department also shall conduct geophysical surveys in the country to obtain a map of different geologic materials such as seismic velocity, dielectric constant, electrical resistivity, etc. This map will be used as an input while generating earthquake risk maps. The department is also planning to conduct geophysical –seismic and magnetic —surveys in southeastern Bhutan to explore prospects of oil and gas reservoirs. Based on the requirement given by the other user agencies such as DOR, the DGM proposes to carry out engineering geological investigations in targeted areas.

162 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 03 Glaciers and glacial lakes Carry out time series monitoring in Northern part of country of glaciers and glacial lakes using MINISTRY OF ECONOMIC AFFAIRS regularly monitored latest technologies Risk of Glacial Lake water level in Carry out artificial lowering of Lake Outburst Thorthormi Lakes water level at Thorthormi lake Flood reduced Reduced to a safety level along major rivers Status of glaciers and Undertake expedition to glacial lakes at the headwaters of glacier-fed rivers headwaters of glacier-fed to study the status of glaciers and rivers assessed glacial lakes Seismic network installed Procure and install seismic Earthquake network in Bhutan Human safety and security improved hazard are Tectonic deformation study Carry out Tectonic deformation with reduced monitored and carried out using GPS study using GPS technology risk from climate assessed using technology change induced seismic and Availability of petroleum Investigate for petroleum using and geological magnetic data assessed using reflection reflection seismic and magnetic hazards and magnetic survey survey Hazard maps and Carry out site suitability, slope geotechnical investigations stability, hazard assessment and reports utilized in propose mitigation measures in All national infrastructure development selected urban centres infrastructure sites development take Vehicular traffic move Carry out geotechnical studies place on safe and smoothly along the and propose remedial measures stable ground in national roads along selected highways and the future roads Establishment of Glaciology and GLOF Division E. Management Arrangements Institutional Arrangements The Department of Geology & Mines under the Ministry of Economic Affairs will be the implementing agency for the programme. MINISTRY OF ECONOMIC AFFAIRS 163 Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Seismology & Geophysical Studies: 45.550 1.1 Installation of seismic network 32.350 1.2 Oil prospecting and investigation using reflection seismic and 11.650 magnetic survey 1.3 Tectonic deformation study using GPS technology 0.000 1.4 Geophysical study in selected areas 1.550

2 Glaciology & Mitigation of Glacial Lake Outburst Flood 119.31 (GLOF): 2.1 Time series monitoring of glaciers and glacial lakes using latest 1.450 technologies 2.2 Carry out artificial lowering of water level at Thorthormi lake. 117.420 2.3 Undertake expedition to headwaters of glacier-fed rivers to 0.440 study the status of glaciers and glacial lakes 2.5 Establishment of Glaciology & GLOF Division 0.000 Total 164.860

164 Tenth Plan Document, Volume 2 03 MINISTRY OF ECONOMIC AFFAIRS MINISTRY OF FINANCE MINISTRY OF ECONOMIC AFFAIRS 165

166 Tenth Plan Document, Volume 2 MoF/01: INSTITUTIONAL STRENGTHENING OF MINISTRY OF FINANCE 04 A. Overview

1 Sector : Finance MINISTRY OF FINANCE

2 Linkage to National Development : Good Governance Objectives & Enabling Environment for socio-economic Strategies development through good governance

3 Expected Results : Multi-year rolling budget (MYRB) implemented, Government Asset Inventorization completed, budget and accounting system enhanced and tax administration system strengthened. 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : All Government Budgetary Bodies, all tax payers and tax administrators 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 699.921 m

11 External Financing Required : Nu. 699.921 m

12 Executing Agency : Ministry of Finance

13 Implementing Agencies : Secretariat and all Departments under the MoF

14 Documents Available : Budget Manual, Project Reports on Multi-Year Rolling Budget (MYRB), Sector Tenth Plan B. Situational Analysis The erstwhile Department of Budget and Accounts was bifurcated into two Departments namely the Department of National Budget (DNB) and Department of Public Accounts (DPA) in December 2005 through an Executive order issued by the Prime Minister in accordance with the Good Governance Plus, 2005 (GG+ 2005) document to enhance transparency and to promote better accountability. The Department of National Budget has the responsibility to prepare multi-year rolling budgets (MYRB) as specified in the Budget Manual. The MYRB makes budget projections for more than one financial year and under the national MYRB system projections are made for two years in addition to the budget year. Presently, work on the development of MYRB has already started on a pilot basis in both the Ministry of Health and the Ministry of Education. The Royal Government has accumulated substantial properties over the years. The Department of National Properties has developed the National Properties Inventory database system to prevent pilferage, loss of assets or false claims on government properties and all records are currently being updated. The budgetary bodies that prepare and submit budgets and monthly expenditure accounts use the Budget and Accounting System (BAS). At the moment, the BAS is independently installed in each and every budgetary body and the Departments of National Budget and Public Accounts are currently not in a position to monitor BAS activities on-line. Whenever problems arise, these are either attended over the phone or IT persons are deputed to solve the problems in the field. Once the BAS is brought on-line, problems can be easily identified, immediately attended MINISTRY OF FINANCE 167 to and corrected. Furthermore, effective monitoring will be possible and timely information can be obtained for better decision-making. While BAS meets all the Financial Rules & Regulations,

2001 (FRR, 2001) requirements in terms of producing budgetary reports and monthly expenditure accounts, expenditure processing or obtaining expenditure approval, are currently accomplished outside the system. Therefore, there is a need to enhance the BAS in such a way that all transactions are captured using the system. It has to ensure that no transactions occur outside the system. Moreover, as the asset register is maintained manually there is also a need to develop a separate inventory module. The Department of Public Accounts is a newly created organization and requires institutional strengthening. A sound financial management system needs to be developed along with proper accounting standards, treasury management, and a proper financial reporting system. The Department of Revenue and Customs (DRC) is primarily responsible for mobilizing internal revenue to cover the increasing recurrent expenditure of the Royal Government. During the Ninth Plan, domestic revenue has been sufficient to meet the cost of recurrent expenditures of the RGoB. With the commissioning of Tala and increasing economic activities in the country, it is expected that internal revenue will not only finance recurrent expenditure, but also finance part of the capital expenditure during the Tenth Plan. The Secretariat of the Ministry of Finance has to be strengthened. It comprises the Administration and Finance Division (AFD), the Policy and Planning Division (PPD), Human Resource Division (HRD), and the Internal Audit Unit (IAU) and the Rules Section. Recently, the Government has also approved Public Enterprise as a new Division within the Ministry. The primary function of this division is to supervise and monitor state-owned enterprises. C. Strategy With regard to the MYRB, the plan is to replicate this system in other budgetary agencies by the financial year 2007-08. The commencement of the Tenth Plan i.e. corresponding to FY 2008-09, should see the MYRB fully implemented. However, it is envisaged that there would be teething problems, and for MYRB to function smoothly, continuous training has to be provided to budget officers in the entire Tenth Plan period. A consultant to guide and ensure consistency as well as a proper understanding of the MYRB will be required to be fielded. As far as the National Properties Inventory is concerned, inventorization of government properties and regular maintenance of palaces, state guest-houses and government buildings will be conducted. Surrendered government property will also be auctioned in a timely manner for revenue generation. The DNP’s aim to bring BAS on-line implemented in phases. It should start from Thimphu and gradually extend to the Dzongkhags and then to Gewogs. A lack of in-house technical capability both within the Department of National Budget and the Department of Public Accounts necessitates the services of an IT consultant. In addition, computers, servers and related equipment would be required for the networks to be established. A Mini/Mainframe will replace the present servers. This is because the Ministry of Finance will initially be working with Bhutan Telecom using its Virtual Private Network (VPN) for computer networking. Once fiber-optic cables are laid by the Ministry of Information and Communications (MoIC), BAS will migrate to fiber-optics from VPN. Again, a consultant will be required to make BAS more versatile, user-friendly and to develop a separate Inventory Module.

168 Tenth Plan Document, Volume 2 The Department of Public Accounts should seek cooperation with regional and international accounting agencies for professional development. A consultant to develop strong accounting standards and reporting systems for sound financial management is also needed. 04 Tax policy reforms need to be initiated to broaden the revenue base and ensure a fair and equitable tax system. Ongoing computerization of activities must be sustained and enhanced to improve the MINISTRY OF FINANCE efficiency and effectiveness for better taxpayer services. Taxpayer awareness programmes will also continue to be given importance to improve taxpayer compliance. In order to strengthen the MoF Secretariat, the Public Enterprise Division will require a consultant to effectively supervise and monitor state-owned enterprises. This is necessary as Government has large investments in numerous public sector undertakings. In addition, experts are also required within the Secretariat to guide the overall financial management of the Government. D. Results Framework Impact Outcome Output Projects/Activities Transparent resource Better resource Implemented MYRB Implementation of Multi- allocation and predictability Year Rolling Budget management (MYRB) Central inventory system Improved Government Assets Inventorization and and well maintained recording, upkeep recorded Maintenance of Government buildings and and reporting of Government Properties timely conduct of Auctions Government Assets Monitoring enhanced More user friendly On-line, Additional Enhancement of BAS through on-line system and versatile system Module (Asset Register) Adequate domestic Increased revenue Revenue strengthened Strengthening of resources to meet and tax reforms Revenue and Tax recurrent expenditure awareness created Administration Enhance transparency Establish sound Set accounting standard Institutional accounting, financial Strengthening of management and Department of Public reporting system Accounts Enhanced, effective and Equitable, fair and Enhanced and integrated Streamlining of the efficient revenue system transparent tax IT system procedures system Revision of policies and Better taxpayer rules services Taxpayer education Develop dynamic public Public enterprise Streamlined public Strengthen public enterprise contributing monitoring and enterprise monitoring enterprise division to the national economic supervision system growth enhanced MINISTRY OF FINANCE 169 E. Management Arrangements Institutional Arrangements The Policy and Planning Division (PPD) of the Ministry of Finance will be the overall coordination agency for the Programme. The Department of National Budget will be the central agency for the development and implementation of the MYRB. The cooperation and involvement of the budgetary bodies will be crucial for the successful development and implementation of MYRB. The Department of National Properties will maintain the inventory system, distributing it to Dzongkhags and providing updates on a regular basis. For BAS-related activities, the Department of National Budget and the Department of Public Accounts will jointly carry out efforts towards its development, supervision and implementation. The involvement of user-agencies will be critical to the development of inventory systems and further enhancement of BAS. The Department of Public Accounts will be the central agency for executing programmes for the development of accounting standards, financial management and reporting reforms. The department will liaise with other relevant government agencies. The Department of Revenue and Customs will be the central agency for strengthening revenue administration. The MoF Secretariat will be the presiding agency in the proper development of the Public Enterprise Division. The Secretariat will also provide necessary direction and guidance to all its departments and divisions. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 National Budget Services 54.343

2 National Properties Services 108.186

3 Revenue and Customs Services 112.264

4 Public Accounts Services 51.000

5 Secretariat Services 372.857

6 Lottery services 1.271 Total 699.921

170 Tenth Plan Document, Volume 2 04 MINISTRY OF FINANCE MINISTRY OF HEALTH MINISTRY OF FINANCE 171

172 Tenth Plan Document, Volume 2 MoH/01: HEALTH MANAGEMENT AND DEVELOPMENT PROGRAMME 05 A. Overview 1 Sector : Health MINISTRY OF HEALTH 2 Linkage to National : Investing in Human Capital through improved health Development Objectives & Strategies

3 Expected Results : Improved health management and development services

4 Relevant MDG & SDG : MDG Goal 4: Reduce child mortality MDG Goal 5: Improve Maternal Health MDG Goal 6: Combat HIV/AIDS, Malaria and other diseases. SDG Goal 9: Maternal health SDG Goal 10: Child health SDG Goal 11: Affordable health-care SDG Goal 12: Improved hygiene and Public health 5 Donor Agency : 6 Target Group : Nation-wide 7 Scope : National 8 Status-Ongoing/New : Ongoing 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 31.200 m

11 External Financing Required : Nu. 31.200 m 12 Executing Agency : Ministry of Health

13 Implementing Agencies : Secretariat, Ministry of Health

14 Documents Available : Health Annual Report 2006; Sector Tenth Plan B. Situational Analysis The Ministry of Health and Education was bifurcated into the two separate Ministries namely the Ministry of Health and the Ministry of Education in mid 2003. This institutional restructuring has enabled the Ministry of Health to improve its specific focus on health development and services. Of the total civil service strength of 17,178 civil servants 2,214 (13%) are employed in the Ministry of Health. 61 of them hold a Masters’ degree which constitutes 9% of the overall Masters’ degree holders in the civil service while 177 hold a Bachelor’s degree which constitutes 7% of the bachelor’s degree holders in the civil service. In the last five years the staff intake into health has almost doubled though the intake of fresh graduates has not grown significantly. The number of doctors joining the civil service annually has increased from 5 or 6 to about 10. The RIHS has doubled its capacity in the number of nurses, technicians and paramedical workers that it trains and supplies to the health system. However, even then the Health Ministry today still faces an acute shortage of manpower in all staff categories but especially so for doctors and nurses. There are currently 162 doctors in the country and about 90 are serving in the Dzongkhags while 61 are serving in the National Referral Hospital. About 129 are national doctors while the remaining are expatriates mainly specialists. Almost half of the national doctors are specialists. In order to enhance the quality of health services, the Quality Assurance and Standardisation Division has been established under the Ministry. The Quality Control Committee has been replaced by Quality Assurance group with broader terms of reference in accordance with the MINISTRY OF HEALTH 173 GG+ recommendation. However, there is an urgent need to develop clear guidelines on the flow of information and linkage among the QA system and the functional units in the Ministry and standardize all supplies. For more reliable information on any area of health in the country, the Health Management Information System (HMIS) was revised resulting in the introduction of a new system in April 2003. It is steadily improving and will gradually integrate the few remaining parallel reporting systems and enable linkage with other systems. The use of HMIS as a management tool would, however, need to be further institutionalized. With the advent of IT, modern IT driven medical technologies have been made possible and the Ministry has introduced telemedicine which has tremendous scope for expansion and improvement. Further, IT has also enabled more efficient health service delivery and management and which needs to be improved further. C. Strategy The Health sector strategies for the Programme emphasizes ensuring the quality of health services, development of human and institutional capacity, decentralization, sustainability and uniformity of health services; Specifically, attention will be given to setting standards for both human resource and medical and diagnostic services for each level of health facility. Quality assurance systems are to be instituted at all levels of diagnostic services and facilities and cost-benefit analysis undertaken before introducing new services and technologies; The Human Resource Development Master Plan would be revised based on assessment of system needs and design. Managerial capacity would be strengthened through appropriate trainings and appropriate career ladder system developed in line with Position Classification System (PCS). Focus would be on developing an incentive mechanism for the pool of civil service in Ministry of Health with the focus on medical personnel; During the 10FYP accelerated Human Resource Development will be pursued to build the critical pool of clinical personnel required to close the existing HR gaps through increased scholarships for MBBS and other medical fields. At the same time, appropriate deployment of human resources would be pursued to meet the required skill mix and addressing the shortages through short-term recruitment from neighboring countries; Support Continued Medical Education to ensure that the health workers are kept up-dated with the new developments that helps the health workers to adapt to and be breast of the changes/evolutions taking place in the medical field so that the services provided are in keeping with the International best practices; Establish a system to attach the general doctors with the specialist before sending them for specialization courses; Ensure that at any point of time, a minimum of three doctors along with the required set of nurses and para-medical personnel are deployed in every district hospital; During the 10FYP period, at least few Dzongkhags will be provided with officials with masters in Public Health as Dzongkhag Health Officer to eventually have all the Dzongkhag Health Sector

174 Tenth Plan Document, Volume 2 headed by officials with masters degree in Public Health. Under close coordination and collaboration with other key agencies like the RIHS and RUB, efforts will made to increase nurses and other health support officials through increased intake at the RIHS as well as through the introduction of 05 another Health Training Centre in the country1. The RIHS shall be upgraded to a college of Nursing and Public Health offering degree courses. Further, a medical college shall be established in the MINISTRY OF HEALTH country with JDWNRH as the institutional base under Public Private Partnership or any other feasible modalities/scheme with admissions open to both foreign and national students; Post-graduate training of specialists and super specialists would help reducing the referral cases abroad. In the 10 FYP, renewed efforts will be made to increase the capacity to treat in-house more of the cases that are currently referred outside; Improvement and expansion of IT infrastructure and facilities both at the center and the periphery would receive a priority focus in the Tenth Plan. Focus would also be on re-designing and maintenance of health information system; and In view of sustainability and uniformity of health services, the full capitalization and operationalization of BHTF would be vigorously pursued, appropriate cost sharing mechanisms and outsourcing options for selective medical and diagnostic services would be explored. D. Results Framework Outcome Output Projects/Activities Quality health care QA instituted Quality assurance and standardization services and capacity enhanced Evidence based health planning and cost-effective interventions in the country Evidence Health information unit services improvement & system based decision development, improvement and integration of data flow, enhanced compilation, analysis, utilization Use of ICT ICT facilities/services expansion strengthened Long and short term trainings – Specialisation and Super HR capacity specialization courses as well as enhanced diploma and certificate level trainings Relevant workshops/seminars and conference participation E. Management Arrangements Institutional Arrangements All Divisions /Units/Sections under the Secretariat of the Ministry of Health will be the implementing agency for this programme.

1 Subject to availability of resources outside plan budget MINISTRY OF HEALTH 175 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Health Information Unit 10.200

2 Information Communication Technology 10.500

3 Quality Assurance and Standardization Division 6.500

4 Policy and Planning Support Services 4.000 Total 31.200 MoH/02: HEALTH PROMOTION AND DISEASE PREVENTION AND CONTROL PROGRAMME A. Overview 1 Sector : Health 2 Linkage to National Development : Investing in Human Capital through improved health Objectives & Strategies

3 Expected Results : Reduction in the incidence of communicable diseases.

4 Relevant MDG & SDG : MDG Goal 4: Reduce child mortality; MDG Goal 5: Improve Maternal Health MDG Goal 6: Combat HIV/AIDS, Malaria and other diseases. MDG Goal 7: Target 10: Halve the proportion of people without sustainable access to safe drinking water and basic sanitation SDG Goal 9: Maternal health SDG Goal 10: Child health SDG Goal 11: Affordable health-care SDG Goal 12: Improved hygiene and Public health SDG Goal 18: Accetable level of water and soil quality 5 Donor Agency : 6 Target Group : Nation-wide 7 Scope : National 8 Status-Ongoing/New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 653.112 m

11 External Financing Required : Nu. 653.112 m

12 Executing Agency : Ministry of Health

13 Implementing Agencies : Department of Public Health

14 Documents Available : Annual Health Report 2006, Sector Tenth Plan B. Situational Analysis Acute Respiratory Infection (ARI) and Diarrhoeal Diseases (DD) are still the major causes of morbidity in the country despite the vast improvements in the situation of safe drinking water suppy and sanitation facilities across the country. Tuberculosis also remains quite rampant even as the case loads have come down significantly from past years. The number of HIV/AIDS cases is

176 Tenth Plan Document, Volume 2 increasing every year. A total of 144 cases have been detected as of April 2008 posing a significant public health concern. 05 Despite the tremendous progress made in improving the health of mothers and children, the Maternal Mortality (MMR), Infant Mortality (IMR) and Under Five Mortality (U5MR) rates still remain high compared to international standards. An important challenge in reducing maternal MINISTRY OF HEALTH and neonatal mortality will depend a great deal on how successfully the country is able to increase institutional deliveries (i.e., deliveries attended by trained birth attendants) through the expansion and further strengthening of Emergency Obstetric Care (EmOC) facilities. There is also the need to further strengthen strategies and activities that focus on safe motherhood and adolescent reproductive health, prevention and management of complications related to reproductive health and cervical cancer. Developing strategies to reach the un-reached will also be critical. The inadequacy of human resources and vital information systems remain major issues that hinder the delivery of health services. It may be possible to mitigate these issues to some extent by strengthening the RIHS capacity and intensifying the data gathering and collation and use of information in a systematic manner. While there has been signficant progress made in containing several communicable diseases, much remains to be done. Diseases like malaria has been contained to a large extent but a number of focal out breaks causing morbidity and mortality over the recent years has caused concerns. Similarly, vector borne diseases like dengue, Japanese Encephalitis (JE), kala azar and leishmaniasis remain a significant public health concern and therefore prevention and control activities need to be intensified. Moreover, lifestyle related diseases amongst the Bhutanese population are now increasingly rapidly, a growing disease burden that is difficult and costly to treat. Preventive measures must be initiated to educate the general public on these aspects and build capacity to deal with such diseases through the expansion of the tertiary care level facilities. At the same time, primary healthcare services would have to be sustained, improved and its coverage further expanded. There are no precise studies conducted to find the prevalence of NCDs in the country. However, it has been noted that NCDs are on an increase. There is also a need to develop an overall strategy for NCD prevention to focus on risk surveillance and analysis rather than making disease specific interventions. C. Strategy Of the eight MDGs to be achieved till 2015, three directly fall within the immediate concern of the health sector. A large percentage of all MDG targets are also health related targets and have a huge bearing on the achievement of other non-health MDGs. Further, there are other priority health goals that extend beyond the provisions of the MDGs. As Bhutan is well on track for many of the MDGs and possibly overachieve them before 2015, the Royal Government has identified certain MDG PlusTargets for the health sector. The following strategies will be adopted to help secure progress towards these MDG and MDG Plus health targets: • Improving health of children through reduction of ARI and diarrhoeal incidences, promoting and enhancing breast feeding, child care practices and nutritional services sustaining Universal Child Immuinization, scaling up institutional deliveries, expansion of perinatal services to the other regional hospitals and strengthening public health surveillance system; MINISTRY OF HEALTH 177 • Improving the health of women, especially mothers through expansion and improvement of various health services like intensifying safe motherhood initiatives, promoting nutrition for mothers and newborn, expansion and improvement of postnatal and perinatal services, promoting reproductive health, expansion of Basic and Comprehensive Emergency Obstetric Care etc; • Developing and enhancing institutional capacity to prevent and control communicable and non-communicable diseases including life style related diseases and promoting healthy life style amongst the general citizens, expansion and intensification of HIV/AIDs control activities through preventive approach; • Improving and strengthening rapid response system through implementing International Health Regulations (IHR) and building support facilities like laboratory services and mobilisation of multi-stakeholder support including cross border collaboration; • Pooling of resources and following an integrated approach to all advocacy and awareness related to Health; • Expansion and sustaining rural water supply and sanitation programmes and community health programmes, support planning and implementation of urban water supply and ensure that water supply is fit for human consumption through regular monitoring of drinking water quality; and • Introduction and strengthening of Zoonotic disease control and Workers Health programme. D. Results Framework Outcome Output Projects/Activities Morbidity and Acute Respiratory Infections and ARI and CDD control through focused mortality due to Diarrhoea incidence reduced intervention on diseases such as pneumonia, communicable diarrhea, avian influenza etc diseases reduced Effective control and response mechanism to health pandemic/ International Health and Rapid response : disaster put in place Leprosy control through strengthened TB & Leprosy case detection and surveillance and sustained elimination Enhance management strengthened capacity for prevention and early detection control of Tuberculosis Halt and reverse the spread of HIV National HIV/AIDS and STIs control through and STIs advocacy and awareness Expansion and strengthening of Vector-borne Increased coverage of vector-borne disease control capacity diseases prevention and treatment Sustain and carry out effective Vaccination to control and prevent vaccine Preventable Enhanced immunization coverage Diseases and awareness on Communicable Information and Communication services for Diseases advocacy and awareness on general health issues and prevention of illness Health Research and Epidemiology

178 Tenth Plan Document, Volume 2 Morbidity and Reproductive Health services Reproductive Health: advocacy and awareness, mortality due to enhanced increase institutional delivery etc non-communicable 05 diseases reduced Nutritional status improved Food Safety & Nutrition enhanced through regulation and fortification Reduced incidence of disability MINISTRY OF HEALTH Disability Prevention, Rehabilitation, Lifestyle- Mental health services strengthened related Disease Control Village Health Workers services Mental Health strengthened Expansion of Village Health Worker‘s programme School health advocacy for community outreach strengthened Awareness and advocacy on health issues Incidence of Zoonotic Diseases through Comprehensive School Health reduced Zoonotic Diseases Control Workers‘ Health services strengthened Workers‘ Health Quality of laboratory services Construction of Public Health Laboratory and strengthened forensic lab. Awareness on NCD enhanced. Information&Communicationservices Capacity dev. For Health Research and Epidemiology Universal RWSS Water and sanitation programme Public Health Engineering Services strengthening coverage and safe sustained over 90% for technical backstopping sanitation Alternative technologies for difficult and unreached areas introduced successfully. E. Management Arrangements Institutional Arrangements The Ministry of Health will be the executing agency for this programme and the Department of Public Health is the implementing agency. The individual unit that looks after respective communicable disease projects will take the lead role in containing the disease. Central technical support will be extended to Dzongkhags and Gewogs for the collective effort to fight against such diseases. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 ARI, CDD Programme 14.250

2 Comprehensive School Health Programme 1.750

3 DPR and LSRD Programme 34.800

4 Environmental Health Programme 3.047

5 Food and Nutrition Programme 30.769

6 Information & Communication Bureau 2.500 MINISTRY OF HEALTH 179

7 National Leprosy Control Programme 7.763

8 Mental Health Programme 16.500

9 National HIV/AIDS and STI Control Programme 87.530

10 Public Health Laboratory 80.900

11 Religion and Health Programme 2.400

12 Research & Epidemiology Unit 3.754

13 Reproductive Health Programme 148.330

14 International Health & Rapid Response Unit 8.090

15 Public Health Engineering Division 47.717

16 Tuberculosis Control Programme 53.441

17 Vector borne Diseases Control Programme, Gelephu 42.071

18 Village Health Workers Programme 12.020

19 Vaccine Preventable Disease Control Programme 44.980

20 Zoonotic Disease Control Programme 1.500

21 Workers Health Programme 9.000 Total 653.112 MoH/03: DIAGNOSTIC AND CURATIVE SERVICES PROGRAMME A. Overview 1 Sector : Health 2 Linkage to National : Investing in Human Capital through improved health Development Objectives & Strategies

3 Expected Results : Diagnostic and curative services improved for better health outcomes

4 Relevant MDG & SDG : MDG Goal 4: Reduce child mortality; MDG Goal 5: Improve Maternal Health MDG Goal 6: Combat HIV/AIDS, Malaria and other diseases. SDG Goal 9: Maternal health SDG Goal 10: Child health SDG Goal 11: Affordable health-care SDG Goal 12: Improved hygiene and Public health 5 Donor Agency : 6 Target Group : Nation-wide 7 Scope : National 8 Status-Ongoing/New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 3,637.840 m

11 External Financing Required : Nu. 3,637.840 m

12 Executing Agency : Ministry of Health (MoH)

13 Implementing Agencies : Department of Medical Services, MoH

14 Documents Available : Annual Health Report, Sector Tenth Plan

180 Tenth Plan Document, Volume 2 B. Situational Analysis Remarkable achievements have been made In terms of expanding health service coverage. Physical 05 access to primary health services is already fairly high and been sustained at over 90%. With some 29 hospitals, 176 BHUs and 485 ORCs across the country, access to primary, secondary as well tertiary care has improved considerably. With the completion of the construction and or upgradation of MINISTRY OF HEALTH the Jigme Dorji Wangchuck National Referral Hospital, the Mongar Regional Referral Hospital, Phuentsholing General Hospital and the Dagana, Trashigang, and Trongsa district hospitals, have further added on to the existing health infrastructure and improved access to quality health care services. However, there are still distant and un-reached communities that do not have access to basic health facilities and reaching the unreached ofen proves most demanding in terms of resources and efforts required given the well known last mile effect. Diagnostic services form the main component of the curative health services. Increased diagnostic capacity has become even more important with the threat of recent epidemics like SARS and avian flu. Hence, the construction of bio-safety level -3 (BSL-3) level public health laboratory in Thimphu has been proposed. The health authorities have been able to install CT and MRI equipment at the National Referral Hospital and such provisions may need to be considered for other Regional Referral hospitals. Improved diagnostic services for cancer and other chronic diseases would also be essential with various Dzongkhag hospitals requiring X-ray and ultrasound facilities too. While a good network of health care facilities exists, most of them are ill-equipped to deal with major crisis situations in an organized and rapid manner. The existing emergency medical strategy would need to be expanded to include other aspects of emergencies like SARS, avian influenza, etc. Presently there are 30 Drungtsos and 42 Menpas working at the centre as well as the Dzongkhags. The required traditional drugs are manufactured within the country and distributed through a distribution system similar to the distribution of allopathic drugs and vaccines. However, there is a need to increase production of traditional medicine in line with the increase in their demand. Owing to the limited number of specialists in Bhutan an efficient referral system is required. The highly rugged terrain and harsh climate hinders the physical referral option. Hence, telemedicine has been considered a viable alternative to enhance access to high quality diagnosis and care. This will need to be strengthened further. C. Strategy The broad strategic priorities for the Tenth Plan would be to consolidate health infrastructure, improve quality and reach of diagnostic and curative services and integrate traditional medicine system into the mainstream health care delivery system. The following specific strategies or strategic activities would be pursued in fulfilling these health priorities: • Consolidation of health services and improving health care capabilities and facilities across the country through the use of modern technologies including IT, and provisioning of equipments and supplies to improve efficiency and effectiveness of services; • Liaising and coordinating with other sectors/partners to ensure that resources provisioned for constructions of ORCs are pooled to construct multi-purpose structures for efficient use and sustainability of the structures; • Improvement of primary, secondary and tertiary health care services through enhanced institutional and human resource capacity and use of modern technology such as telemedicine to overcome geographical and other barriers to health care; MINISTRY OF HEALTH 181 • Expansion and improvement of various health infrastructures including construction of Regional Referral Hospital in Gelephu, construction and renovation of district hospitals, Public Health Laboratory, detoxification unit etc; • Desiginating and establishment of regional referral hospitals/district hospitals as centres of excellence ( specilisation) in certain services like children hospital, tropical diseases, cancer etc; • Establishment of Regional Bio-medical Engineering Centres to ensure timely back up service and providing adequate trained manpower for timely maintenance services; • Standardisation of facilities and services including supplies in all health centres to allow better planning, intervention and provide quality services at all times; • Improving institutional capacity to diagnose, manage and treat various diseases and reduce the ex-country referral cost; • Introducing new technology in diagnostic and curative services and para-medical services on a pilot basis and expansion of ambulance services throughout Bhutan; • Establishment of Bhutan Institute of Medical Scence (BIMS) using JDWNRH as a base under PPP or any other feasible models. This will be done through a parliamentary act to ensure that the institute is provided with a legal basis to function independently for efficiency and effectiveness; In short of an act, the JDWNRH shall be granted autnomonus status; • Outsource select diagnostic services and support private sector participation in providing private tertiary health care services in line with clearly defined standards and guidelines framed by the Health Ministry; • Promote niche market for traditional medicine services and develop it as a centre of excellence to promote medical tourism; • Corporatisation of the Pharmaceutical and Research Unit(PRU) to provide necessary flexibility for greater cost effectiveness and expansion; • Enhancing patient care service and accountability by the health personnel in treating patients; and • Inorder to address the shortage of trained nurses and other medical technicians in the country, options for establishment of another Health Training Institute will be kept open to allow prospective PPP/FDI investors to invest in the project or for funding through additional resource mobilization.

182 Tenth Plan Document, Volume 2 D. Results Framework Outcome Output Projects/Activities 05 Health facilities with timely Supply of Drugs, Vaccine & Equipment MINISTRY OF HEALTH and adequate medical Building the capacity for HERM supplies Health Infra. Improvement, consolidation and select Quality and reach of expansion of health services and facilities health infrastructure improved Atleast two functional Para medics and Ambulance services ambulances provided to all hospitals and Control of Infection & improving Hospital Waste paramedic introduced Management Reduced hospital Expansion and improvement of Primary Eye Care services acquired infections Increasing access and improving quality of Oral Health Diagnostic Hospital based services services and curative improved and clinical care services strengthened Enhancing capacity to deal with Diabetic health issues improved Referral hospital Improvement and expansion of Perinatal Medicine management and services Services strengthened Enhancing the quality and access to Nursing services Reduced cases of ex- Development and enhancing the Emergency Medical country referral services capacity Telemedicine services Expansion of Clinical Laboratory and Blood bank services strengthened and expanded Improving and expansion of Radiology services Expansion of Telematics services to increase access and Indigenous hospital improve quality of services services strengthened Improvement of various services at the JDWNRH Constructing and enhancing the facilities of the Regional Referral Hospitals National Traditional Medicine Hospital service strengthening E. Management Arrangements Institutional Arrangements The programme will be managed and executed by the Department of Medical Services under the Ministry of Health. Particular health divisions and hospitals would provide the technical and institutional support for implementing the activities. MINISTRY OF HEALTH 183 Indicative Costs Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Clinical Laboratory and Blood Bank Services 11.81

2 Central Regional Referral Hospital, Gelephu 17.017

3 Diabetic Care Services 13.70

4 Drugs, Vaccines and Equipment Division 1137.375

5 Essential Medicine and Technology Division 35.0453

5 Emergency Medical Services 22.50

6 Primary Eye Services 3.50

7 Health Telematics 25.50

8 Bio-Medical Engineering Unit 19.803

9 Health Infrastructure Development & Projects 1918.73

10 Patient Safety, Infection Control and Health Care Waste 20.50 Management

11 National Traditional Medicine Hospital 2.695

12 Jigme Dorji Wangchuck National Referral Hospital 60.606

13 Mongar Regional Referral Hospital 72.3797

14 Western Regional Referral Hospital, Paro 100.00

15 Nursing Services 8.50

16 Oral Services 10.00

17 Perinatal Medicine Services 12.50

18 Pharmaceutical and Research Unit of Traditional Medicine * 57.94

19 Radiology Services 3.98

20 District Health Services Programme 5.00

21 Ambulance Services 78.75

22 Medical College Total 3,637.840 * The PRU is to be corporatised and projected subsidy of Nu 170m is to be met from general government subsidy maintained under the Ministry of Finance. Major Infrastructure Projects: Major Infrastructure Indicative Cost (Nu. in million) Gelephu Referral hospital construction (150 beds) 594.400 Samtse hospital construction (40 beds) 133.330 Tsirang hospital construction (20 beds) 55.940 Wangdue hospital construction (20 beds) 69.590 Haa hospital construction (20 beds) 38.890 Sibsoo hospital construction (20 beds 73.780 Bumthang hospital re-construction 43.450 Health training center, (location to be identified later) 14.810 Community Based Rehabilitation Resource center, Gidagom 14.810

184 Tenth Plan Document, Volume 2 Therapy unit, ITMS 40.000 Medical supply depot at Phuentsholing 52.810 05 Forensic unit Publi Health Laboratory 180.000 MINISTRY OF HEALTH Detoxification Unit 121.180 Reproductive health unit 10.100 Traditional Medicine Unit 5.441 JDWNRH Networking 34.000 Construction of Staff Quarters for existing Health Centres 200.000 Health Traing Institute Dewathang Hospital 140.000

9FYP Spill Over Works for Dagana Dzongkhag 20.000 Spillover Work for JDWNRH and MRRH 31.899 Additional Work for completion of JDWNRH 44.300 Total 1,918.73 MoH/04: SUSTAINABILITY, REGULATORY AND MONITORING PROGRAMME A. Overview

1 Sector : Health

2 Linkage to National : Investing in Human Capital through improved health Development Objectives & Strategies

3 Expected Results : All health supplies and services regulated and services sustained

4 Relevant MDG & SDG : MDG Goal 4: Reduce child mortality MDG Goal 5: Improve Maternal Health MDG Goal 6: Combat HIV/AIDS, Malaria and other diseases. SDG Goal 9: Maternal health SDG Goal 10: Child health SDG Goal 11: Affordable health-care SDG Goal 12: Improved hygiene and Public health 5 Donor Agency : 6 Target Group : National 7 Scope : National

8 Status-Ongoing/New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 72.184 m

11 External Financing Required : Nu. 72.184 m

12 Executing Agency :

13 Implementing Agencies : BHTF, DRA, BMHC,

14 Documents Available : Bhutan Medicine Act 2003, Bhutan Medical and Health Act 2002 MINISTRY OF HEALTH 185 B. Situational Analysis The cost of vaccines and drugs currently accounts for a significant amount of all expenditures in the health sector. To establish the provisioning of health services on a sustainable footing for the future, the Royal Government established the Bhutan Health Trust Fund to finance the purchase of essential drugs and vaccines. The primary objective of the Fund is to ensure sustainable and timely availability of resources for the highest priority health care service components. By ensuring the sustainable financing of essential drugs and vaccines through the BHTF, the RGoB can re-direct the national health budget to other key elements of public health care or in developing human resources and strengthening infrastructure. The Trust fund has grown to USD 21.719 million with contributions from development partners, individuals, other foundations and general public. The Fund however is yet to meet its target of 24 million to become fully operational and sustain its operation. So far the Trust fund has supported some of important health initiatives like the nation wide measles rubella vaccination and Hep-B vaccination. In order to regulate and monitor the quality of health services and drugs in the country, the Bhutan Medical and Health Council and the Drug Regulatory Authority have been instituted. So far these agencies have been instituted under the Ministry of Health but it is only rational to separate these agencies to emerge as fully autonomous entities. Further, there is a need to revise the composition of the members to avoid possible conflict of interest between the regulatory role and the implementing role that some of the members of BMHC plays. These agencies currently lack the necessary manpower to effectively fulfill their mandates. C. Strategy Sustained efforts will be put in to mobilize the additional resources required to meet the target of USD 24 million to fully operationalise the Health Trust Fund through organization of fund mobilization campaigns as well as inviting development partners and well wishers to contribute to the fund. The health trust fund will be utilized to finance purchase of essential drugs and vaccines. Other strategies for the programme over the Tenth Plan incude: • Delinking the Drug Regulatory Authority from the Ministry of Health and institutional strengthening and capacity building of the former will be done to allow it to function effectively; • Outsourcing of non-medical services to foster public-private partnership and improve efficiency of health professions and explore possibility of cost sharing mechanism on selective health services; • The Authority will work towards the enforcement of relevant provisions of the Bhutan Medicine Act 2003 and register all products and test at least about 25% these products on an annual basis; • The Authority will also establish institutional linkages with ex-country regulatory authorities and also establish a National External Quality Assurance Scheme; • The Bhutan Medical and Health Council shall also be de-linked from the Ministry and operate as an independent council. It will review membership of the council as provisioned by the act and recommend necessary changes to enable the council to become fully

186 Tenth Plan Document, Volume 2 independent. Necessary standards and guidelines as provisioned by the act shall be developed and undertake orientation and sensitization workshops/meetings. The Council will also work and ensure that all medical practioner in the country are registered and 05 certified by the council; and • Further, the Council shall enforce the provisions of the Bhutan Medical and Health Council MINISTRY OF HEALTH Act 2002 to ensure quality and accountability. D. Results Framework Outcome Output Projects/Activities Sustained supply of Health Trust Fund fully operationalised Bhutan Health Trust Fund capital essential drugs and fund mobilisatioon to meet the vaccines at all times BMHC and DRA de-linked from the Ministry target and functions as an independent agency Strengthening BMHC and effective Greater standards of Role and composition of the BMHC revised enforcement of The Medicine Act of medical services and and all medical and Health professions Kingdom of Bhutan 2003 higher and safe drugs registered and vaccines ensured De-linking of Drug Regulatory Provisions of the Medicine Act of kingdom of Authority and increased regulation Bhutan 2003 enforced of medical supplies and services E. Management Arrangements Institutional Arrangements The Bhutan Health Trust Fund, Bhutan Medical and Health Council and the Drug Regulatory Authority will be responsible for delivery of this programme. However, the Ministry of Health will be responsible for facilitating the attainment of autonomy and independence for BMHC and DRA. Indicative Costs # Description of Projects/Activities Indicative Cost ( Nu. in million )

1 Bhutan Health Trust Fund 2.100

2 Bhutan Medical and Health Council 8.300

3 Drug Regulatory Authority 61.784 Total 72.184 MINISTRY OF HEALTH 187

188 Tenth Plan Document, Volume 2 MINISTRY OF HOME AND CULTURAL AFFAIRS Tenth Plan Document Volume 2 189

190 Tenth Plan Document, Volume 2 MHCA/01: PRESERVATION AND PROMOTION OF CULTURAL HERITAGE 06 A. Overview

1 Sector : Culture MINISTRY OF HOME AND CULTURAL AFFAIRS

2 Linkage to National : Preservation and promotion of cultural heritage as a core pillar of Development Objectives & GNH for the holistic well being and happiness of all Bhutanese Strategies

3 Expected Results : The quality of life in Bhutan enriched and enhanced through the preservation and promotion of nation’s rich cultural heritage and traditional values 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : General Bhutanese population and international visitors 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 1,746.500 m

11 External Financing Required : Nu. 1,746.500 m

12 Executing Agency : Department of Culture (Ministry of Home & Cultural Affairs)

13 Implementing Agencies : Department of Culture, Folk Heritage Museum, Culture Center, National Museum, Trongsa Tadzong Museum, Royal Academy of Performing Arts, National Library, other units and heritage centers, Dzongkhag and Gewog Administrations

14 Documents Available : Sector Tenth Plan B. Situational Analysis Bhutan’s cultural heritage has always been accorded a high priority on the development agenda and the relevance of culture to development outcomes cannot be understated. It is deemed vital for the country’s survival and socio-economic progress given that it provides a strong basis for building national identity and unity. In addition, culture is a perennial source of sound human values that strengthens social bonds and harmony and provides an effective antidote to cushion Bhutanese society from some of the negative impact of globalisation. Moreover, Bhutan’s cultural resources represent a major opportunity for employment creation and poverty reduction through the promotion of cultural industries. The promotion of a wide range of cultural industries can not only generate substantial social and economic returns but also help keep the country’s rich cultural heritage alive and vibrant. Additionally, Bhutanese culture has a vital role to play in helping protect and conserve the country’s rich natural environment. The natural environment enjoys a highly sacred standing in the local belief systems which accords a deep sanctity for all forms of life. This cultural ethos has been and remains a potent force for maintaining environmental sustainability, the further erosion of which could negatively impact on the environment through a weakening of social commitment to environmental sustainability. It is clearly evident that meaningful sustainable development in Bhutan cannot be concieved of outside a context that does not actively integrate culture and heritage issues. With the majority of MINISTRY OF HOME AND CULTURAL AFFAIRS 191 Bhutanese still strongly guided by socio-cultural traditions that have evolved over centuries, the promotion of cultural heritage within modern development policies confers distinctive advantages and benefits. However, the adaptation of ancient traditions to the particular challenges and needs of current times is fraught with pitfalls and addressing this poses major challenges. A careful but liberal and sustainable balance has to be maintained between the existing cultural traditions and emerging changes and alterations in culture without allowing globalisation forces to upset the balance. One acute challenge pertaining to this relates to the lack of skilled professionals in the field of conservation of Bhutan’s cultural heritage. There is also the need for renovation and conservation for many temple and Dzongs which are constrained by the lack of resources. Additionally, the absence of adequate legal framework for the protection of cultural heritage is another of key challenge that must be addressed in the culture sector. C. Strategy The Department of Culture under the Ministry of Home and Culture Affairs continuously strives to preserve and promote Bhutan’s rich and unique cultural heritage. The long-term objective for the Department of Culture is to integrate holistically the preservation, promotion and development of the cultural heritage of Bhutan into all areas related to sustainable development. Towards fulfilling the above objective, the first strategic objective will be to preserve, develop, promote and sustain the national cultural and literary heritage. This shall be carried out through inventorying and documentation of cultural heritage, introduction of proper and relevant legislation, establishment of a cultural center and institutes, promotion of cultural tourism, mapping, and classification of Bhutan’s tangible and intangible heritage, building expertise for architectural conservation, establishment of new museums and reinforcement of existing museums, documentation, conservation, promotion and development of traditional and contemporary performing arts, improvement of libraries, and archives. The second strategy will focus on the production of audio-visual, television, radio and films that will promote interest and make people aware of cultural issues and activities. The national television and radio will be utilised to air and promote these shows. The third strategy will be to establish proper networks, national, regional and international through the application of information and communication technologies. The fourth strategy shall be to establish institutional linkages, promote and support cultural exchange, workshops and meetings between Bhutan and different countries and regions.

192 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 06 Bhutan's cultural and An international Buddhist University established. Funds raised spiritual institutions Cultural for nuns MINISTRY OF HOME AND CULTURAL AFFAIRS strengthened and Development College for nuns constructed promoted BIMSTEC Regional Cultural Observatory established Culture Exchange Programmes organized All movable cultural properties of Bhutan well inventoried and documented Documentation preservation and Precious cultural properties restored and protected Protection of Movable Cultural Movable cultural Heritage properties (Kusung Conservation and Thugtens) of Promotion Dzongs, Lhakhangs Policy guidelines, documents and Acts for preservation and and private owners protection formulated Preparation and implementation of conservation plans for cultural and natural heritage sites and national cultural properties in Bhutan completed Documentation and classification of cultural and natural heritage sites completed Enrichment and Heritage Act for protection of heritage sites in Bhutan prepared Enhancement Information on the tangible and intangible aspects of Bhutan’s of the quality cultural heritage sites and national cultural properties prepared of lives of all Bhutanese Professionals trained in the field of conservation of heritage sites Immovable Immovable through the cultural properties Cultural Heritage Awareness on conservation and promotion of architectural preservation documented, Conservation and heritage in Bhutan created to general public and students and promotion preserved and Development of nation’s rich Curriculum on the conservation and management of developed cultural heritage architectural sites established in local technical institutes and traditional values Technical guideline manual for conservation of architectural heritage sites developed A Royal Theatre and National Galleries at the Cultural Heritage Site in Thimphu constructed Major heritage sites developed for local pilgrims and international visitors Infrastructure of Royal Academy of Performing Arts improved Intangible cultural heritage of Bhutan Intangible Documentation/research on Performing arts and festivals preserved and Cultural Heritage promoted Conservation and Training on performing arts conducted Promotion Adequate audio visual equipment provided Management Information System (MIS) in place to document all acquisition and user service information Appreciation for Bhutan’s cultural Adequate infrastructure developed and literary heritage Museums Branch (field) units established in selected Dzongkhags created among and Library the Bhutanese Development and international Human Resource developed audiences Research & publications carried out Promotional activities conducted MINISTRY OF HOME AND CULTURAL AFFAIRS 193 E. Management Arrangements Institutional Arrangements The Department of Culture shall be the overall coordinating agency for planning, implementing and monitoring of projects and activities of culture sector. The individual agencies will be responsible for implementing their specific projects/activities. These agencies include Folk Heritage Museum, Culture Center, National Museum, Trongsa Tadzong Museum, Royal Academy of Performing Arts, National Library, other units and heritage centers, Dzongkhag and Gewog Administrations and Dratshang/Rabdeys. The Department of Culture will also collaborate with agencies like the Department of Tourism, Royal Bhutan Police, RCSC, Department of Information Technology, Department of Revenue and Customs, Institute of Zorig Chusum, Department of Information Technology, Ministry of Education, Royal University of Bhutan and other relevant stakeholders for conservation, promotion, and protection of cultural properties and values. Indicative Cost Description of Indicative Cost Description of Activities Projects (Nu. in million) 1.Reverification and a.Photograph and maintain 90% of the movable cultural Classification of properties in seven dzongkhags 1.000 National treasures 2.Restoration and a.Restoration and Conservation of 10 wall paintings Conservation b.Restoration and Conservation of 30 thangkhas 2.500 c.30 clay images restored and conserved 3.Training and a.Train 8 in conservation of cultural properties, from those Awareness rabdeys that were not trained by the Honolulu Academy of arts 2.000 b.Conduct 10 awareness campaigns in 20 dzongkhags on the importance of safeguarding and conserving cultural properties. 4. Research a. Computerization of all records on cultural properties Documentation and b.Distribution of digital records to dzongkhags of their Publication 2.000 respective cultural properties c.Research and publication on important cultural properties 5. Regulation and a.Design of showcase for ‘Nangtens’ Safety 2.000 b. Development of guidebooks for most sacred neys 9.500 1.Inventory of all a.Compilation of inventory for all cheritage sites in 20 aspects of cultural dzongkhags heritage sites 5.500 b.Documentation of 5 major dzongs and 5 major vernacular sites which are in danger of disappearing or changing 2.Conservation/ a.Wangduephodrang Dzong 200.000 Renovation and b.Paro Dzong (Rinpung) 100.000 Development of Dzongs c. Lhuentse Dzong (including construction of drashag) 120.000 d. Daga Trashiyangtse Dzong, Dagana (including construction 125.000 of Drashag) e. Gasa Trashithongmi (ongoing/spillover) 56.000

194 Tenth Plan Document, Volume 2 f. Conservation of Dorji Lingpa Temples 25.000 g. Phajoding Lhakhang 65.000 06 a. Pema Gatshel Dzong 250.000 3.Construction of B.Sarpang Shompangkha Dzong 200.000 Dzongs MINISTRY OF HOME AND CULTURAL AFFAIRS c.Chukha (ongoing/spillover) 100.000 d.Tsirang (ongoing/spillover) 20.000 e.Zhabkor, Kurje Lhakhang 35.000 f. Mithrupai Lhakhang (Thimphu) 45.000 4.Conservation and a.Drapham, Drugyel, Bangtsho and Zhongkhar Dzongs establishment of Archaoelogical heritage 83.500 sites 5. Establishment of a.Construction of National Conservation Laboratory with Cultural Center offices for DCAH and DCP at the Cultural Centre site in 44.000 Thimphu b.Establishment of Royal Theatre and National Gallaries at the 55.550 Cultural Centre site in Thimphu c. Construction and establishment of offices for the cultural sector with GNH Happiness centre unit at the Cultural Centre 55.800 site 6.Establishment of Two a. Documentation and Preparation World heritage sites in 8.000 Bhutan 7.Conservation of a.Conservation of vernacular architecture and heritage villages vernacular architecture 30.000 and heritage villages 8.Research a.Documentation on Bhutan’s cultural heritage sites and Documentation and national cultural properties are published Publication b.Documentation and publication ofTangible and intangible 1.700 aspects of traditional architecture c.Compile list of traditional skilled workers in the field of traditional architecture 9.Promotional a.3 Training workshops on conservation of heritage sites and 5 and awareness of professionals trained internationally conservation needs at b.Workshops, awareness campaigns, publication and organise heritage sites competition among students and publics c.Introduce curriculum on conservation and management of 1.200 architectural sites in Royal Bhutan Institute of Technology and Zorig Chusum Institute d.Publication and distribution of technical guideline manual for conservation of architectural heritage 10.Regulatory, Policy a.Developed Heritage Act for protection of heritage sites in Instrument and Bhutan 2.300 techinical backstopping 1,517.2 1.Information Establishment of IT infrasturcture in all the museums communication system i. To document all acquisition and user service information development ii. To further strengthen the Information techonology Services in all the museums 20.850 iii. To develop security system in all the museums and libraries MINISTRY OF HOME AND CULTURAL AFFAIRS 195 2.Infrastructure a.Establishment of Textile academy 27.100 Development b.Office blocks and other infrastructure for: i. Folk Heritage Museum ii. National Museum (Paro) 100.000 iii. Ta-Dzong Museum Trongsa Iv.National Library 3. Research and a.Research and publication in the field of social, religion, folk Publication lifes, literacy and all aspects of tangible and intangible cultural 10.000 heritage 4. Esablishment of field a.Establish Field units in selected places for every museums 11.850 units and library 5. Promotion and a. i. To hold awareness campaigns, competitions and distribute Awareness information brochures (to be done by the respective museums and libraries) ii. Conduct special exhibitions on different themes by the 7.500 respectve museums and library Iii. Conduct exchange programmes annually in the respective museums. Promotion and Awareness 6. Acquisition of books a.Acquisition of books &Artefacts 17.500 & Artefacts 194.800 1.Infrastructure a.Construction of Amphitheatere Development 10.000 b.Construction of Principals Residence 2.Preservation and a.Development of performing programmes Promotion of Performing b.Development of Audio visual programmes Arts c.Training on Driglam 3.500 d.Exchange programmes e. Promotional activities 3.Research and a.Research and Documentation of 20 Zhungdras, 50 Boedras Documentation and 10 festivals and Legislation 3.000 b.Development appropriate Acts and Policy Documents Development 4.Procurement of a.Procurement of Equipments 7.000 Equipments 23.500 1.Establishment of a.Development of basic concept and designs International Buddhist 0.000 University 2.Establishment of a a.Fund raising campaigns fund for the nuns of 0.000 Bhutan and a college for the nuns 3.Establishment of the a.Provision of Office space and basic facilities for experts BIMSTEC Regional 1.500 Cultural Observatory 4.Promotion of International Cultural 0.000 Exchange Programme 1.500 TOTAL 1,746.500

196 Tenth Plan Document, Volume 2 MHCA/02: STRENGTHENING OF IMMIGRATION SERVICES 06 A. Overview

1 Sector : Immigration MINISTRY OF HOME AND CULTURAL AFFAIRS

2 Linkage to National : To safeguard national security through strengthening Development Objectives & immigration security and services Strategies

3 Expected Results : Strengthened Security of the Country 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : General Bhutanese Population, Non-Bhutanese 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 57.000 m

11 External Financing Required : Nu. 57.000 m

12 Executing Agency : Department of Immigration (Ministry of Home and Cultural Affairs)

13 Implementing Agencies : Immigration Service Division, Inspection Division and Naturalization Division (Department of Immigration)

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Department of Immigration was established in 2004 and has a responsibility to safeguard national security. The Department monitors and regulates the flow of foreigners into the kingdom and has three Divisions and six regional immigration offices. The three divisions are the Immigration Service Division is responsible for the issue of various permits such as route permit, restricted area permits, MC card, work permit, dependents cards, traders’ cards etc. The Inspection Division is responsible for inspection, monitoring and deportation of illegal immigrants. The Naturalization Division is responsible for monitoring annual registration of Tibetan refugees, and Green Card holders. It is also responsible in processing the naturalization of foreigners as Bhutanese Citizens. Some of the key achievements in the Ninth Plan were the establishment of the Department of Immigration, relocation and establishment of check posts and out posts in strategic locations, development and launch of the Immigration Information System, empowerment of regional immigration offices through administrative and financial decentralization. Despite the tangible progress made some of the challenges foreseen in the Tenth Plan are the shortage of well trained manpower, absence of an immigration act, and the absence of adequate and proper infrastructure such as detention centers. C. Strategy The main objectives of the Department of Immigration are to strengthen the security of the country, professionalize immigration services, strengthen immigration inspection management, and improve and simplify immigration procedures. In the Tenth Plan the Department of Immigration intends MINISTRY OF HOME AND CULTURAL AFFAIRS 197 to meet the above objectives through infrastructure development and capacity building at all levels. The department will also develop information sharing linkages between the head quarters, regional offices, check posts and outposts using ICT. D. Results Framework Impact Outcome Output Projects/Activities Security Capacity and i. Immigration Services Strengthening of Immigration of Bhutan Efficiency of Professionalized Inspection System Strengthened the Department ii. Infrastructure Developed ii. Development and Renovation of of Immigration iii. Immigration procedures Infrastructure at HQ and Regional strengthened at simplified Offices all levels to iv. Immigration inspection iii. Strengthening of Information management strengthened Communication System E. Management Arrangements Institutional Arrangements The Department of Immigration and the Regional Immigration Offices will be responsible for the implementation of the plans. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening of Immigration Inspection System 8.500

2 Infrastructure Renovation for Existing HQ 16.500

3 Infrastructure development for Regional Offices 25.000

4 Strengthening of Information Communication System 4.000

5 Promotion, Awareness and Regulatory and Policy Instrument 3.000 Total 57.000 MHCA/03: DEPARTMENT OF CIVIL REGISTRATION AND CENSUS A. Overview

1 Sector : Civil registration and Census

2 Linkage to National Development : To safeguard national security through strengthening Objectives & Strategies immigration security

3 Expected Results : Effective and Efficient implementation of Nationality Laws, Citizenship Act, by laws and National Assemble Resolutions 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : General Bhutanese Population, Non-Bhutanese 7 Scope : National 8 Status-Ongoing or New : New

198 Tenth Plan Document, Volume 2 9 Tentative Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 100.455 m 06

11 External Financing Required : Nu. 100.455 m 12 Executing Agency : Ministry of Home and Cultural Affairs MINISTRY OF HOME AND CULTURAL AFFAIRS

13 Implementing Agencies : Department of Civil Registration and Census

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Department of Civil Registration and Census was established after the bifurcation of the Department of Registration in 2004. The department is responsible for the implementation of Nationality Laws, Citizenship Acts, by-laws and National Assembly resolutions, build and manage population data. Some of the key achievements during the Ninth Plan were the completion of the Citizenship Authentication Exercise in all 20 Dzongkhags, computerization of 400 family registers and 1.2 million pages of individual information, development of the Bhutan Civil Registration System (BCRS), issuance machine readable Citizenship Identity Card, Creation of the Naturalization Committee, and the carrying out of the Population and Housing Census of Bhutan in 2005. The challenging constraints faced by the department are the lack of adequate qualified staff, lack of adequate office space. The main objectives for the Tenth Plan are as follows: • To implement the Nationality Laws, Citizenship Acts, by-laws and National Assembly resolutions; • To streamline procedures for better delivery of services; • To issue nationality documents and Special Residence Permit (SRP); • To control and manage national population data; • To put relevant legal instruments in place; • To develop infrastructure; and • To build comprehensive population data. C. Strategy The strategic objectives of the Tenth Plan for the Department will be met through the enhancement of the BCRS, sustained issuance of Citizenship Identity Cards, development of a dataase and system for issue of SRPs, development of infrastructure, human resources and ICT, enactment of the Civil Registration Act, Citizenship Authentication Exercises, bringing about the uniformity of procedures. MINISTRY OF HOME AND CULTURAL AFFAIRS 199 D. Results Framework Impact Outcome Output Projects/Activities Security National Laws, i.Procedures for better i.Installation of Information System of Bhutan Citizenship delivery of services ii.Issuance of Citizenship ID Cards Strengthened Acts, by-laws, streamlined iii.Improvement of Existing BCRS and, National ii. Capacity of staff built iv.Development of System of Issuance of Assembly iii.Adequate SRPs Resolutions infrastructure v.Development of Infrastructure and Human effectively developed Resources and efficiently iv.Means of vi.Research and Publication implemnted Communication and vii.Development and implementation of information sharing Policy and Regulatory Frameworks improved viii.Authentication of Citizenship and Census related cases E. Management Arrangements Institutional Arrangements The Department of Civil Registration and Census will be the responsible for the implementation of the plans. Indicative Cost Indicative Cost #. Description of Projects/Activities (Nu. in million)

1 Information System Installation 18.000

2 Issuance of Citizenship Identity Card 34.255

3 Improvement of existing Bhutan Civil Registration System 12.000

4 Development of System and Issuance of Special Residence Permit 2.700

5 Infrastructure Development 28.50

6 Research and Publication 1.500

7 Regulatory and Policy framework 2.000

8 Project 9: Authentication of the Citizenship and Census related aspects 1.500 Total 100.455 MHCA/04: DISASTER RISK MANAGEMENT A.Overview

1 Sector : Disaster Management

2 Linkage to National Development : Environment sustainability Objectives & Strategies

3 Expected Results : An effective and efficient disaster risk management mechanism established to move towards a disaster-resilient nation

200 Tenth Plan Document, Volume 2

4 Relevant MDG & SDG : MDG Goal 1: Eradicate poverty 5 Donor Agency : MDG Goal 7: Ensure Environment Sustainability 06

6 Target Group : Vulnerable regions, dzongkhags and gewogs and communities MINISTRY OF HOME AND CULTURAL AFFAIRS 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 33.180 m

11 External Financing Required : Nu. 33.180 m

12 Executing Agency : Ministry of Home and Cultural Affairs

13 Implementing Agencies : Department of Disaster Management, Ministry of Home and Cultural Affairs

14 Documents Available : Sector Tenth Plan B. Situational Analysis Bhutan lies in one of the most seismically active zones of the world. Besides, the rugged mountain terrain, fragile geologic conditions and extreme climates make it inherently vulnerable to natural disasters such as flash floods land-slides and forest fires. Additionally, the presence of a vast number of glaciers and glacialand snow fed lakes in the north of the country also make Bhutan highly vulnerable to the occurrence of Glacial Lake Outburst Floods (GLOF). This is particularly pertinent as the majority of Bhutan’s population and infrastructure development is concentrated in valleys that would be highly vulnerable to GLOFs that could cause great human and economic devastation. Since the participation of Bhutan in the World Conference on Disaster Reduction (WCDR) held in Kobe, Japan in January 2005 and the adoption of the Hyogo Framework for Action, the Royal Government has been consciously working towards devising an appropriate national disaster risk management framework to secure and safeguard the lives and livelihood of the people and its national development assets. The Department of Disaster Management, Ministry of Home and Cultural Affairs is the focal agency for disaster management at the national level. It is entrusted to coordinate all disaster management activities in coordination with relevant sectors. The National Disaster Risk Management Framework was approved by the Lhengye Zhungtshog in 2006 and has been distributed throughout the country. Following that a number of consultative workshops were conducted and guidelines for disaster management planning have been prepared and distributed such as the Draft National Disaster Management Bill, National Disaster Management Planning Guidelines, Dzongkhag Disaster Management Planning Guidelines, School Disaster Management Planning Guidelines and the Comprehensive Disaster Management Manual. MINISTRY OF HOME AND CULTURAL AFFAIRS 201 C. Strategy Key strategies of the Disaster Risk Management Programme are: • Create an enabling environment for disaster risk reduction through a multi-sectoral approach; • Build capacity of sectors and the dzongkhags right down to the community levels for disaster risk management; • Enhance disaster preparedness at all levels; • Strengthen response and early warning systems; • Raise awareness on disaster risk management at all levels; and • Mainstream disaster risk reduction concerns in all development activities and in all walks of socio-economic life. D. Results Framework Impact Outcome Output Projects/Activities Effective and Create an enabling Disaster Management Bill, guidelines for Project 1: coordinated legislative framework planning, risk assessment, compensation Regulation and disaster for disaster risk and relief etc Policy Strategies management management preparedness, Capacity building of Capacity of national focal institutions and Project 2 :Disaster response and disaster management their staff developed information System ability to conduct responders/ relief activities to Training of disaster management professionals at all ensure a disaster committee members, officers, cadres levels resilient nation and agencies entrusted with disaster mitigation, preparedness and response related activities initiated at the dzongkhag level Capacity of local communities in disaster prevention, preparedness and response built Partnership with national, regional and international institutions for capacity building support in place Improved access to Disaster information System and data Project 3: information and data base in place Regulation and on disasters Policy Strategies Inculcate a culture of Raise public awareness on disaster risk Project 4: disaster preparedness preparedness and recovery at all levels Earthquake and risk reduction at all Risk Reduction levels of society & Recovery Preparedness Project Increase awareness and preparedness levels of all disaster management authorities/ committees and build community resilience

202 Tenth Plan Document, Volume 2 Raise awareness in schools and implement through the formulation of School Disaster Management Plan 06 (SDMP) and the conduct of mock drills Facilitate sharing and exchange of national and regional information, lessons MINISTRY OF HOME AND CULTURAL AFFAIRS and best practices Establish an effective Initiate establishment of Emergency Project 5: disaster communication Operation Centres and disaster/ Emergency/ network to provide emergency communications in the Disaster speedy information and Dzongkhags Communication decision making during a disaster Sustainable Financial His Majesty's Relief Fund Project 6: Mechanism in place Sustainable National Disaster Mitigation and Financial Preparedness Budget (NDMPB) Mechanism established for Disaster Major Disasters (Emergency Fund) Management founded Effective multi hazard Multi-Hazard Atlas developed Project 7: Multi disaster preparedness Hazard Atlas and Dzongkhag and community disaster and response plans Plans management plans developed developed E. Management Arrangements Institutional Arrangements The Department of Disaster Management in the Ministry of Home and Cultural Affairs shall be responsible for coordination and management of all disaster management activities. The Department shall coordinate and collaborate with the relevant stakeholders such as Ministry of Works and Human Settlement, Ministry of Education, Ministry of Health, Ministry of Agriculture, National Environment Commission, Dzongkhag and Gewog Administrations etc. and the Dzongkhags and the communities for planning and implementation of various initiatives on disaster management. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Disaster mitigation and preparedness trainings 13.000

2 Disaster information System 2.000

3 Regulation and Policy Strategies 2.000

4 Earthquake Risk Reduction and Recovery Preparedness 6.680

5 Emergency Disaster Communication 4.500

6 Sustainable Financial Mechanism for Disaster Management 2.000

7 Multi Hazard Atlas and Plans 3.000 Total 33.180 MINISTRY OF HOME AND CULTURAL AFFAIRS 203

204 Tenth Plan Document, Volume 2 MINISTRY OF INFORMATION AND COMMUNICATIONS Tenth Plan Document Volume 2 205

206 Tenth Plan Document, Volume 2 MIC/01: ICT AND POSTAL DEVELOPMENT 07 A. Overview

1 Sector : Information and Communications Technology MINISTRY OF INFORMATION AND COMMUNICATIONS

2 Linkage to National : Vision 2020: Emerging as a ICT proficient and Knowledge Development Objectives & Based Society Strategies Vitalizing Industry and National Spatial Planning (Balanced and equitable socio-economic development) for poverty reduction

3 Expected Results : An efficient ICT backbone and access infrastructure for basic ICT and postal services

4 Relevant MDG & SDG : MDG Goal 8: In cooperation with the private sector make available the benefits of new technologies, especially information and communication technology SDG Goal 7: Strengthening connectivity of poorer regions and of poor as social groups 5 Donor Agency : 6 Target Group : National 7 Scope : National 8 Status-Ongoing or New : Ongoing/New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 2,330.000 m

11 External Financing Required : Nu. 2,330.000 m 12 Executing Agency : Ministry of Information and Communications

13 Implementing Agencies : Department of Information Technology, MoIC

14 Documents Available : Bhutan ICT Policy and Strategies (BIPS), ICT Technical Guidelines for the Tenth Plan, Sector Tenth Plan, National Broadband Network Master Plan for Bhutan, Private Sector Development Project Appraisal Document, Bhutan Information, Communications and Media Act 2006. Information, Communications & Transport Sectors in Bhutan: A Special Report 2007 B. Situational Analysis The Information and Communication Technology (ICT) sector is now beginning to play a key role in enhancing socio-economic development and there has been significant progress made in different fields of the ICT sector. All 20 Dzongkhags and 199 of the 205 Gewogs are connected to the national fixed-line telecommunications network. The number of fixed-line subscribers in the country stands at 29,000 as of June 2008. Mobile cellular service is available in all twenty Dzongkhags and major highways inter-linking them. The number of mobile subscribers is 229,000 as of June 2008. Local Area Network (LAN) has been established in all the Dzongkhags and a Wide Area Network (WAN) intranet connecting most public agencies in the capital city is being set up. Broadband services using VSAT and ADSL technologies are being offered in major towns. Community Information Centers (CICs) have been established in about 39 Gewog centers to facilitate community access to online public information and services. A National TV Center has also been constructed to cater to the physical infrastructure needs of the broadcast industry. Many government agencies have web pages and internal office works computerized while some have initiated web based and ICT facilities to provide public services. However, coordination between MINISTRY OF INFORMATION AND COMMUNICATIONS 207 the agencies needs to be strengthened in order to provide common platform ICT application systems both within and outside the government to optimize the benefits of ICT. E-services and e-businesses are restricted by the lack of online payment systems and very limited private sector initiatives. The ICT private sector is in its infancy and the domestic ICT market is still very small. Most of the existing ICT enterprises deal with hardware supply and maintenance. ICT business and market in the development of software products and services has yet to take off Furthermore, There is also a lack of adequate ICT and knowledge-workers. Regulatory environment to encourage the use and development of ICT has already been put in place. The Telecommunications Act was passed in 1999 and the Copyright Act in 2000. The Bhutan Information, Communications and Media Act has also been passed in 2006. The institutional capacity to regulate and support the ICT sector is also being strengthened by establishing and building up organizations with such relevant mandates. Given the current situation of the sector, there are many opportunities and challenges in developing the sector in the fields of ICT infrastructure, content and applications, human resources and ICT enterprises. For ICT to make a significant difference in the lives of the poor and also facilitate the gradual formation of a knowledge based society as envisioned in the Bhutan Vision 2020, much more remains to be done even as specific interventions are being undertaken. C. Strategy The RGoB recognizes the imperative to harness ICTs for poverty reduction, sustainable development and the emergence of a knowledge based society. ICT can help achieve the poverty reduction target set for the Tenth Plan through its power to create and transfer knowledge, improve the efficiency and transparency of institutions and markets, and facilitate the participation and empowerment of the poor. Information access and the dissemination of ICT equitably is highly necessary to prevent the emergence of a digital divide that could actually exacerbate poverty and inequality as income and wealth in a modern society are strongly linked to those with and without information and ICT knowledge. Thus, ICT has been recognized as a tool to help reduce poverty in the Tenth Plan. The Bhutan ICT Policy and Strategies (BIPS), which gives a clear direction for the various sectors to harness the potential of ICT, have been developed and are being implemented. The Tenth Plan gives high importance to mainstream ICT in its developmental. Different sectors, both at the central and district levels, have been guided to formulate ICT- driven and projects through the ICT technical guidelines. The Department of Information Technology (DIT) will spearhead the further development of the ICT sector by improving its infrastructure with the existing network of nationwide ICT backbone network continually upgraded and expanded. The DIT will further expand nthe development of e-services. This will help improve efficiency in the flow of information between governmental agencies and speed up the service delivery to the public. Community information centers will also be established to take ICT services to the grassroots and community levels. Support for improvement of Gewog and rural mail delivery services will also be given priority. Due importance will also be given to bring up the infant ICT private sector to explore and invest in the ICT sector to generate employment, which will benefit both the private sector and job seekers. Measures to build the capacity of ICT human resources are also accorded high priority in the Tenth Plan. The establishment of business process outsourcing units (e.g. contact/call centers), cyber/IT Park and ICT Research & Training Center will be undertaken through public-private partnerships to improve the current situation of slow growth in ICT industry and the lack of ICT knowledge and skills.

208 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 07 Gradual Access to reliable National ICT network Establishment of In-country MINISTRY OF INFORMATION AND COMMUNICATIONS emergence of and affordable ICT infrastructure data gateway an Informed and infrastructure and developed knowledge based services capable of Implementation of the National society, leading to delivering e-services to Broadband Network Master improved all Gewogs Plan living standards of people and sustainable Sustainable Community information Support extension of socio-economic community-level centers established & telecommunication services to development access to basic ICT & capacity developed all Chiwogs postal services Postal services to all Establishment of CICs in Gewogs/ the Gewogs & capacity Chiwogs development Support provision of postal services in rural areas Vibrant growth of Private players in ICT Support to establishment of ICT industry with industry supported and high value call centers employment generation areas of ICT industry promoted development explored Establishment of Cyber/IT Parks ICT services standards maintained through Establishment of a National proper regulation ICT Research & Training Center Expansion of an IT hub in Kanglung Effective and efficient Basic e-services put in Government intranet E-governance place applications development applications in use Public service applications development Timely flow of Emergency Set-up emergency information communication in place communication system E. Management Arrangements Institutional Arrangements The DIT, Ministry of Information and Communication will manage the Projects/Activities, while the relevant sectors will collaborate during their implementation. MINISTRY OF INFORMATION AND COMMUNICATIONS 209 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 In-country data gateway establishment 235.000

2 Implementation of National Broadband Network Master Plan 950.000

3 Establishment of Community Information Centers(CICs) in the 220.000 Gewogs

4 Support Establishment of Business Process Outsourcing 15.000 (BPO) Units

5 Establishment of -IT Parks at Wangchhutaba 200.000

6 Establishment of ICT Research & Training Center 150.000

7 E-governance 500.000

8 Expansion of an IT Hub in Kanglung 50.000

9 Support provision of postal services in rural areas 10.000

9 Support extension of telecommunication services to all 00.000 Chiwogs

10 Setting up Emergency Communication System 0.000 Total 2,330.000 MIC/02: DEVELOPMENT OF AIR TRANSPORT A. Overview

1 Sector : Air Transport

2 Linkage to National : Expanding Strategic Infrastructure for Development Objectives & balanced and equitable socio-economic development and Strategies poverty reduction

3 Expected Results : Better access to safe, reliable and efficient air transport service 4 Relevant MDG & SDG : SDG Goal 7: Strengthening connectivity of poorer regions and of poor as social groups 5 Donor Agency : 6 Target Group : National 7 Scope : National 8 Status-Ongoing or New : Ongoing/New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 984.570 m

11 External Financing Required : Nu. 984.570 m 12 Executing Agency : Ministry of Information and Communications

13 Implementing Agencies : Department of Civil Aviation, MoIC

14 Documents Available : Sector Tenth Plan, Civil Aviation Master Plan, Domestic Airport Master Plan

210 Tenth Plan Document, Volume 2 B. Situational Analysis Even as civil aviation activities in Bhutan were intiated recently, basic infrastructure now exists for 07 the smooth operation of air transport. Activities during the Ninth Plan focused on improving the services at Paro international airport to meet its growing requirements and to enhance safety in air transport services. The feasibility studies to construct domestic airports in Eastern, Central and MINISTRY OF INFORMATION AND COMMUNICATIONS Southern part of the country was undertaken during the Ninth Plan and the Domestic Airport Master Plan for Geyltsa, Bathbalathang, Bartsham, Younphula and Phuentsholing are now in place. The Department of Civil Aviation (DCA) at present is both the regulator and provider of aerodrome and air navigation services. There is no clear separation of regulator and service provider functions, causing ambiguities and overlaps at times. However, in line with the Civil Aviation Master Plan (CAMP) recommendations, the process to create clear structural and functional separation between the regulatory and service provider (airports and air navigation) functions has already been intiated. This process would in the near future culminate in the creation of an autonomous civil aviation authority. Druk Air, the sole air operator in the country, operates to six destinations in four countries. Flight operation into Paro International Airport though is possible only during daytime under Visual Flight Rules (VFR) conditions which limits its operational efficiency. Low monsoon clouds continue to cause flight disruptions and during the winter months until mid-May, high velocity winds do not permit flight operations into Paro in the afternoons. The operation of international air transport service is governed by the rights and privileges agreed in the Bilateral Air Service Agreement and Bhutan at present has such agreements with five countries – India, Nepal, Bangladesh, Thailand and Myanmmar. International air transport activity in the country is totally confined to Paro airport. The existing airport terminal infrastructure, grossly underutilized during normal operations can barely accommodate increased passengers resulting from additional flights operated during peak tourist seasons. Service delivery standards at the airport are continuously being improved. Recent measures introduced include providing more immigration counters, clubbing passenger service charges with the airfare and combining immigration and customs declaration forms. Despite concerted efforts put in during the Ninth Plan, domestic air services have yet to be launched. Extra effort will have to be made to improve the existing infrastructure at Paro Airport as well as to construct the domestic air strips and introduce domestic helicopter service in the country. C. Strategy To improve the current situation of air transport sector, the Department of Civil Aviation will focus on the development and expansion of air transport infrastructure. The construction of domestic air ports in Trashigang, Bumthang and Gelephu shall be encouraged through public-private partnership model during the Tenth Plan. Minimum facilities and services at designated heliports will also be established and private sector participation in the air transport business encouraged by providing necessary and facilities to introduce helicopter services. Human resource capacity to efficiently run the service shall also be built up. MINISTRY OF INFORMATION AND COMMUNICATIONS 211 The development of Paro international airport shall assume a high priority in the Tenth Plan. Security and airport safety will be strengthened and navigation aid and communication technologies will be improved. The capability to respond to emergency situations will also be enhanced and permanent river protection works will be done for the safety of the airport from any disastrous risks. With the establishment of a variety of air transport services in the Tenth Plan, importance will also be given to accordingly develop safety measures like security surveillance system, emergency response and search & rescue capabilities. The exploration for bilateral, regional and international cooperation for air transport services will continue to be a regular activity in the development of the sector. The regulatory, safety and security framework will be continuously amended and aligned on an ongoing basis to achieve compliance with the latest international standards and requirements. D. Results Framework Impact Outcome Output Projects/Activities Contribution to Safe, reliable and Efficient aviation Review and revise existing national economy sustainable air legislative and Laws, Regulations, Standards increased transport services regulatory framework and Procedures developed and Internationally enforced Establishment of Domestic Air consistent aviation Services safety, security and Domestic air services standards in place introduced Search & Rescue, and Medical Evacuation capability Greater domestic Infrastructure and mobility among people/ facilities at Paro Development of Paro Freight International Airport International Airport expanded and Efficient and enhance Public Service Delivery at effective response to Paro Airport emergencies Air safety and emergency response Development of DCA Improved and capability enhanced Institutional Facilities increased international access E. Management Arrangements Institutional Arrangements The Department of Civil Aviation, Ministry of Information and Communications will coordinate the implementation of the programme under the overall execution of the Ministry of Information and Communications.

212 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 07

1 Establishment of domestic air services 42.000 1.1 Infrastructure development for helicopter services 12.000 MINISTRY OF INFORMATION AND COMMUNICATIONS 1.2 Support to operationalization of helicopter services 30.000

2 Construction of domestic air strips, terminal building, control tower, etc. in Trashigang, Bumthang and 206.000 Gelephu 2.1 Feasibility study and preparation of master plan(Gelephu) 6.000 2.2 Acquisition of Land and payment of compensation 200.000 (Bumthang)

3 Expansion of Paro International Airport 736.570 3.1 Infrastructure expansion 285.000 3.1.1 Passenger terminal expansion 120.000 3.1.2 Expansion of runway width 100.000 3.1.3 Strengthening of existing apron and taxiways and 45.000 construction of aircraft turning pad 3.1.4 Car parking expansion 20.000 3.1.5 Cross runway 0.000 3.2 Permanent river protection works 174.370 3.3 Procurement of runway safety vehicles 15.000 3.4 Improve communication and navigation aid technology 83.700 3.5 Strengthening airport security 30.000 3.6 Enhancement of emergency response capability 140.000 3.7 Improvement of public service delivery – Paro 2.500 3.8 Airport maintenance 0.000 3.9 Development of DCA Institutional Facilities 1.000 3.10 Establishment of search & rescue center 5.000 Total 984.570 MIC/03: DEVELOPMENT OF SURFACE TRANSPORT A. Overview

1 Sector : Surface Transport

2 Linkage to National Development : Balanced and equitable socio-economic development for Objectives & poverty reduction through improved transport connectivity Strategies

3 Expected Results : Improved access to efficient, safe, reliable and affordable transport services

4 Relevant MDG & SDG : SDG Goal 7: Strengthening connectivity of poorer regions and of poor as social groups 5 Donor Agency : 6 Target Group : National 7 Scope : National MINISTRY OF INFORMATION AND COMMUNICATIONS 213 8 Status-Ongoing or New : New/Ongoing 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 325.400 m

11 External Financing Required : Nu. 325.400 m 12 Executing Agency : Ministry of Information and Communications

13 Implementing Agencies : Road Safety and Transport Authority, Dzongkhags, Municipal Authorities, Department of Roads, Private operators

14 Documents Available : Draft Surface Transport Development Plan, Sector Tenth Plan B. Situational Analysis Surface transport is the principal mode of passenger and freight transport in the country. Demand for transport services has been increasing gradually with the increase in road network and other development activities. To streamline and integrate the transport system, the Road Safety & Transport Authority (RSTA) was established in 1997 and mandated with responsibilities related to administration of vehicle registration, roadworthiness programme, driver licensing, emission control, and monitoring and regulating passenger transport services. Transport services are delivered and enforced through the RSTA’s four regional offices, which are further supported by the base offices covering most Dzongkhags. Transport infrastructure, primarily in the form of integrated passenger terminal and bus sheds is available at the four regional offices. Passenger transport services are available in 18 of the 20 Dzongkhags with the exception of Pemagatshel and Gasa. Accessibility and equity of passenger transport services are ensured through subsidies to private operators for operation of services on non-profitable routes. Public transport services in the capital city of Thimphu have improved with Bhutan Post increasing the number of public buses to fourteen. Taxis services are also available in all urban centers in addition to personalized transport. Service delivery in the transport sector has seen significant improvements. On-line sharing of information concerning passenger transport services, vehicles, drivers and other related information are now available. Similarly, vehicle registration and roadworthiness system, driver licensing and emission testing facilities have also been streamlined and these are continuously being improved. Considering the rapid increase in the number of vehicles, road safety issues are being given due importance. Feasibility study to establish railway links to the border towns are have been undertaken and the Golden Jubilee Railway link to Phuntsholing is planned for execution in the Tenth Plan period. Despite the very important role which the transport sector plays in supporting the socio-economic development of the country, the quality, quantity and accessibility of transport infrastructure and services is still far from adequate. The sector therefore, needs improvement in several areas. Passenger transport services in remote areas are either inadequate or unreliable, mainly due to high operating cost, seasonal flow of passengers and low earnings. This is also the case for urban transport services given the dramatic increase in private vehicle ownership. Problems related to traffic congestion, high rate of road crashes and environmental pollution continues to increase. Traffic enforcement is low due to the lack of trained enforcement professionals, safety equipment and limited mobility. Road safety measures and public awareness call for greater attention, and post accident management capacity needs urgent enhancement.

214 Tenth Plan Document, Volume 2 While there has been a dramatic increase in the number of motor vehicles in the country, the road network has increased only marginally. For this reason, the need for introducing alternative modes of mass transport has also become urgent. Transportation costs and travel time are very 07 high and the freight and logistics industry requires greater streamlining and development. The surface transport infrastructure is also highly inadequate. Bus terminals and sheds need to be MINISTRY OF INFORMATION AND COMMUNICATIONS constructed and renovated for better service coverage in several regions of the country. Disabled friendly transport facilities are not currently provided at bus terminals and public amenities along the national highways do not exist. Although the basic legal and policy framework for motor vehicle regulation is already in place, gaps exist in certain areas such as the lack of regulations pertaining to the operation of automobile workshops. The delivery of public service is yet another area requiring careful attention. C. Strategy The surface transport sector activities will be guided by its overall policy objective to improve access to safe, reliable, affordable, convenient, environment-friendly, responsible and high quality transport system by minimizing constraints to the mobility of people, goods and services. In order to achieve the above broad objective, the RGoB will continue to improve and provide equitable and affordable passenger transport services in terms of coverage and frequency of services in remote areas, inter-Dzongkhag routes, and urban areas through appropriate subsidy models. City services will also be launched in other urban centers and the quality of services will be closely monitored and the private operators encouraged to introduce better and comfortable buses in their transportation fleet. Other strategic activities to be implemented include: • Developing and expanding existing transport infrastructure through construction of new bus terminals, and up-gradation of the existing terminals and associated facilities. This will also include facilities for disabled; • Expansion of urban transports services and deploying additional buses in major towns to minimize use of private vehicles with measures introduced to discourage use of private vehicles and trucks into core city centres; • Exploring options for alternative mode of freight and passenger transport, including the development of eco-friendly mass urban transport such as electric trolley buses, light rail system, waterways and ropeways; • Improving road safety and diversify the choice of transport mainly to address the current problem of traffic congestion; and • Promoting road safety to minimize road traffic accidents through cooperation and collaboration among stakeholders, improvement of road traffic management and information network system including road signs, promotion of safer roads, education of road users including pedestrialns and development of safer vehicle by introducting computerized vehicle testing facilities. MINISTRY OF INFORMATION AND COMMUNICATIONS 215 D. Results Framework Impact Outcome Output Projects/Activities Poverty reduction Safe, clean Improved access to public Development and expansion of and higher living and affordable transport services in rural surface transport infrastructure standards through transport system and urban areas such as bus terminals, bus sheds, improved surface public toilets, wheel chair ramps, transport services Reduce traffic Responsible drivers and etc congestion and road users environment Procurement of road safety and pollution through Deployment of ICT and communication equipments, and introduction of ICT-enabled services promote road safety education alternative modes and institutional capacity and awareness, and Intelligent of transport developed Transport System Reduced time for Regulatory framework Provide subsidy to non-profitable delivery of public in place for better areas and expansion and services enforcement including introduction of urban transport vehicle emission standards services Increased access to public transport Search and Rescue team Feasibility study for alternate in the remote operational, providing modes of transport such as villages timely and quality services ropeways, railway links, trolley buses, sky train, etc Feasibility study for alternate mode of transport Strengthening institution through carried out and pilot development of regulatory projects implemented framework, research & development, and establishment Regulatory framework of regional base offices developed and enforced Service delivery E. Management Arrangements Institutional Arrangements The Road Safety and Transport Authority (RSTA) under the Ministry of Information and Communications will be the overall execution and implementation of the Programme. The RSTA will also closely collaborate with relevant agencies such as Traffic Police, Ministry of Works and Human Settlements, Municipal Authorities and Dzongkhags. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Development and expansion of transport services 195.500 1.1 Subsidy for non-profitable routes 5.000 1.2 Expansion and introduction of urban transport services 26.000 1.3 Construction of new bus terminal in Thimphu for inter-city public 34.000 transport 1.4 Development of new bus terminals cum offices 96.000

216 Tenth Plan Document, Volume 2 1.5 Renovation and up-gradation of existing bus terminals 10.000 1.6 Construction of bus sheds, public toilets, 4.000 07 1.7 Consultancy works for infrastructure development 20.000 1.8 Construction of wheel chair ramps in the bus terminals 0.500 MINISTRY OF INFORMATION AND COMMUNICATIONS

2 Road safety 52.500 2.1 Road safety awareness and education 10.000 2.2 Road safety & communication equipment, and search and 35.000 rescue equipment 2.3 Intelligent transport system 7.500

3 Strengthening institutional capacity 58.400 3.1 Road safety and transport research, development of regulatory 21.000 framework and promote ICT usage for effective service delivery 3.2 Computer based driving testing system 5.000 3.3 Establishment of Regional Office in Mongar, 4 Base Offices and 15.000 miscellaneous establishment cost for RSTA in general 3.4 Framework and facility for disposal/dumping of vehicle scraps 0.000 3.5 Disaster Management Plan 17.400

4 Alternate modes of transport 19.000 4.1 Feasibility study for other modes of transport including eco- friendly transport systems such as ropeways, trolley buses, sky 9.000 train and light rail system 4.2 Railway feasibility study for remaining 4 border towns 0.000 4.3 Feasibility study for ropeways 10.000 4.4 Establishment of railway link between Hasimara and 0.000 Phuentsholing Total 325.400 MIC/04: INFORMATION AND MEDIA DEVELOPMENT A. Overview

1 Sector : Information and Media

2 Linkage to National : Vision 2020 creation of a knowledge based society and Tenth Development Objectives & Plan Strategy of Investing in Human Capital to enhance Strategies human capability through knowledge and information

3 Expected Results : To create a well informed and media literate society towards building a knowledge based society

4 Relevant MDG & SDG : SDG Goal 15: Universal functional literacy 5 Donor Agency : 6 Target Group : National 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 112.000 m MINISTRY OF INFORMATION AND COMMUNICATIONS 217

11 External Financing Required : Nu. 112.000 m

12 Executing Agency : Ministry of Information and Communication

13 Implementing Agencies : Department of Information and Media, Private media industry

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Bhutanese media has developed significantly since the establishment of the Bhutan Broadcasting Service Corporation (BBSC) and Kuensel Corporation in the 1980s. In 1999, television and Internet services were also introduced in the country, and today media has begun to develop in various forms of print, broadcast and multimedia. Official print media, today, consists of three newspapers: Kuensel, Bhutan Times and Bhutan Observer. While Kuensel is the pioneer print media and the only newspaper in the country until recently, Bhutan Times, Bhutan Observer and Bhutan Today have been established. Kuensel is a bi- weekly newspaper sold nationwide with its content both in English and Dzongkha. Bhutan Times is also a bi-weekly newspaper with its content only in English. Bhutan Observer is published weekly with its content in both English and Dzongkha. Bhutan Today is a daily. Four stations now provide radio services. In addition to BBSC, three new private radio stations, Kuzoo FM, Radio Valley and Bhutan’s Centennial Radio’s, have been recently established. Television service has also seen significant development. Today there are cable television services in 19 of the 20 Dzongkhags in the country and the cable TV operators provide about 40 different channels. BBSC is the main channel that telecasts local news and national while some operators maintain their own channels. The film industry while still in its infancy, the number of Bhutanese films produced has been increasing. The industry however still faces challenges of limited domestic market and the lack of skilled people and professionals in the industry. In view of the important role played by this sector, the Government has created the Department of Information and Media (DoIM) under the Ministry to coordinate and steer the development of media in the country. C. Strategy With the increasing role and impact of media in the development of society, the Ministry of Information and Communications will bolster the media sector by establishing standards and regulatory frameworks in place for media productions thorough coordination and consultation with the stakeholders. Additionally, it will also promote and create awareness on information and media for the general public and students. Foreign media content will be carefully regulated to prevent undesirable effects on Bhutanese society and social values and culture and to this end the development of local information and media content given due importance. Private media enterprises will also be encouraged and promoted, by helping them to develop their human resources to facilitate employment and income generation opportunities.

218 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 07 A well- Easy access to Increased awareness and Information and Media literacy MINISTRY OF INFORMATION AND COMMUNICATIONS informed information and access to information and awareness and media media by the media literate public Development & promotion of local society Local content developed and contents created Responsible promoted media created Promotion of public access to Private media industry information & media increased and quality improved Promotion of independent media industry E. Management Arrangements Institutional Arrangements The Department of Information and Media under the Ministry of Information and Communications will be the overall execution and implementation of the programme. The department will also closely collaborate with the media industry and other relevant agencies. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Information and media literacy 9.000 1.1 Nation-wide information & media literacy awareness 3.000 1.2 Information and media education in schools 3.000 1.3 Development of an appropriate media model in Bhutan 3.000

2 Development and promotion of local content 17.00 2.1 Review of national policy and strategy on local content 2.000 2.2 Development and promotion of local content 15.000

3 Promotion of public access to information and media 9.000 3.1 Support establishment of 3 pilot community FM radio stations 9.000

4 Promotion of an independent media industry 60.000 4.1 Support public and private media enterprise, including 60.000 enhancing professionalism of media personal

5 Disaster management plan 12.000

6 E-governance content 5.000 Total 112.000 MINISTRY OF INFORMATION AND COMMUNICATIONS 219

220 Tenth Plan Document, Volume 2 MINISTRY OF LABOUR AND HUMAN RESOURCES Tenth Plan Document Volume 2 221

222 Tenth Plan Document, Volume 2 MLHR/01: HUMAN RESOURCE DEVELOPMENT PROGRAMME 08 A. Overview 1 Sector : Human Resources MINISTRY OF LABOUR AND HUMAN RESOURCES 2 Linkage to National Development : Employment promotion and poverty reduction Objectives & Strategies

3 Expected Results : To improve the quality of VET Increase access to VET

4 Relevant MDG & SDG : MDG Goal 1:Eradicate extreme poverty and hunger MDG Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth SDG Goal 1 and 2: Eradication of hunger poverty, halve proportion of people in poverty by 2010 5 Donor Agency :

6 Target Group : Educated youths coming out from formal education system In-service candidates of private and corporate sector 7 Scope : Nation-wide

8 Status-Ogoing or New : Ongoing/New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Costs : Nu. 164.614 m

11 External Financing Required : Nu. 164.614 m

12 Executing Agency : Ministry of Labour & Human Resources

13 Implementing Agencies : Department of Human Resources

14 Documents Available : Sector Tenth Plan B. Situational Analysis Currently there is a dire shortage of skilled and qualified manpower in the country. Therefore, the focus is to increase the supply of skilled and trained job seekers who could be employed both in the public and private corporations. Over the Tenth Plan period, it is estimated that there would be about 63,000 youths completing classes 10 and 12 and entering the labour market. They need to be trained and equipped with relevant skills to make them employable. The Department of Human Resources under the Ministry of Labor and Human Resources is currently carrying out vocational skills development activities at two levels namely pre-service vocational education and training (VET) and skill up gradation training for in-service candidates from private and corporate sector agencies. There are currently 6 Vocational Training Institutes (VTIs) and 2 Zorig Chusum Institutes. C. Strategy The need to train both pre-service and in-service candidates on skills development will receive further priority attention in the Tenth Plan. In order to minimize increasing unemployment problems, the sector will increase access to VET and improve the quality of VET. Expanding training and establishing new institutes and exploring other alternate modes of trainings will further increase the intake capacities of the institutes. The VET system will also be improved to respond to the skills demands of the labour market. This will help in increasing the relevance of vocational training for imparting quality skills to trainees. MINISTRY OF LABOUR AND HUMAN RESOURCES 223 As the growing unemployment situation is largely to be addressed through private sector gorwth and development, the strengthening of capacities of private and corporate sectors will be enhanced to expand their businesses and provide employment opportunities. As such, an umbrella policy that streamlines all HRD activities is required to develop relevant skilled human resources that is responsive to changing labour market trends. D. Results Framework Impact Outcome Output Projects/Activities Attain full Youth have access to VET Quality of VET Strengthening of employment for which are of high quality and improved vocational education and educated youth market oriented training Access to VET School leavers/ Villagers have enhanced Improvement of quality of adequate opportunity for VET VET Increased access to Needs of Human Rersource VET in rural areas Expansion of access to capacity Development in the VET private sector addressed by HRD for private sector developing NHRD policy supported HRD for private and NHRD Policy corporate sector developed E. Management Arrangements Institutional Arrangements The Ministry of Labour and Human Resources is the executing agency and Department of Human Resources is the implementing agency of the programme relating to development of human resources for both pre-service and in-service candidates of private and corporate sectors. The pre- service training will be carried out in the different vocational and Zorig chusum institutes around the country while the capacity development of in-service people will be executed as per the private sector HRD master plan. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Quality Improvement of VET 53.874

2 Expansion of access to VET 88.835

3 HRD for private & corporate sector – both ex & in Country 20.000

4 National HRD Policy 1.905 Total 164.614

224 Tenth Plan Document, Volume 2 MLHR/02: EMPLOYMENT PROMOTION PROGRAMME 08 A. Overview

1 Sector : Employment MINISTRY OF LABOUR AND HUMAN RESOURCES

2 Linkage to National Development : Employment and poverty reduction Objectives & Strategies

3 Expected Results : To streamline and strength employment services system that bridges the gap between demand and supply of labour force To establish and strengthen labour market information system

4 Relevant MDG & SDG : MDG Goal 1: Eradication of extreme poverty and hunger Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youtht SDG 1: Eradication of hunger poverty SDG 2: Halve proportion of people in poverty by 2010 SDG 4: Ensure a robust pro-poor growth 5 Donor Agency :

6 Target Group : High school dropout job seekers 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 238.285 m

11 External Financing Required : Nu. 238.285 m 12 Executing Agency : Ministry of Labour and Human Resources

13 Implementing Agencies : Department of Employment

14 Documents Available : Labour Force Survey, Labour Market Information Bulletin; Sector Tenth Plan B. Situational Analysis The employment challenge in Bhutan is essentially a youth issue with most of the unemployed comprised of young school leavers. Youths normally constitute about half of all those unemployed and their unemployment rates have been increasing from 2.6% in 1998 to 9.9% in 2007. It is estimated that from around 93,000 job seekers during the Tenth Plan, about 63,000 will be those youths dropping out from Class X and Class XII. The Department of Employment is the sole authority to strengthen the employment promotion services and placements in the country for high school dropouts. The Department is in the process of carrying out employment promotion services and trying to ease the transition from school to work place for job seekers. Efforts to develop and implement strategies are being initiated with a focus on skills development of youth through vocational education. An online registration system for job seekers and employers has been created. To date 377 employers and 2603 job seekers have registered online. A total of 1386 job seekers have been placed in various private and corporate organizations against the total of 2624 job seekers registered with the department. MINISTRY OF LABOUR AND HUMAN RESOURCES 225 C. Strategy Numerous strategies will be adopted to facilitate job seekers in finding employment. A series of awareness workshops for employers and students of middle and higher secondary schools across the country will be conducted to familiarize them on the newly established job portal system. Other ongoing strategies, which include signing of MoUs with the private sector establishments for more job creation, hosting job fairs and simplifying the procedural steps for job seekers to get employment through the sector, will be strengthened. Some new strategies like pre-employment engagement programme will also be carried out to keep job seekers temporarily engaged until they get employed. With the help of entrepreneurship and business advisory programme, youths will be encouraged to start up their own business by providing them with startup grants. D. Results Framework Impact Outcome Output Projects/Activities Employment Strengthening of Attain full employment for Job seekers have access counseling employment placement educated youth to efficient and effective services and counseling placement services strengthened -Job matching and placement Ample employment Employment - Employment opportunities created for promotion counseling Services school leavers services strengthened Bhutanese youth have access to employment Self-help opportunities thereby support services reducing unemployment established Mismatch of skills addressed Labour market Enhancement of through operation of effective system Labour Market Labour Market Information strengthened Information System System E. Management Arrangements Institutional Arrangements The Department of Employment is the coordinating and lead agency for implementing the programme relating to employment placement and counseling services. The web-based job portal developed by the Department will be used online for job registration and possibly job placement. To backup the employment promotion services in terms of creating more employment opportunities, apprenticeship training will be provided to the job seekers whereby they acquire the skills and work experience in the field.

226 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 08

1 Job matching and placement services 4.400

2 Employment counseling services 2.830 MINISTRY OF LABOUR AND HUMAN RESOURCES

3 Employment creation services 190.391

4 Labour market Information services 5.084

5 Entreprenurship training and advisory services 21.920

6 Small business resource center 9.160

7 Feasibility of business incubator 4.500 Total 238.285 MLHR/03: IMPROVEMENT OF WORKING CONDITIONS AND LABOUR RELATIONS AT THE WORKPLACES A. Overview 1 Sector : Human Resources

2 Linkage to National Development : Employment promotion and poverty reduction Objectives & Strategies

3 Expected Results : To institutionalize labour administration system To establish relations, inspection system, and occupational health and safety standards To streamline and strengthen foreign workers’ employment system

4 Relevant MDG & SDG : MDG Goal 1: Eradication of extreme poverty and hunger MDG Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth SDG 1: Eradication of hunger poverty SDG 2: Halve proportion of people in poverty by 2010 SDG 4: Ensure a robust pro-poor growth 5 Donor Agency :

6 Target Group : All labour force 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 86.150 m

11 External Financing Required : Nu. 86.150 m 12 Executing Agency : Ministry of Labour and Human Resources

13 Implementing Agencies : Department of labour

14 Documents Available : Labour and Employment Act, Labour Administration Policy; Sector Tenth Plan MINISTRY OF LABOUR AND HUMAN RESOURCES 227 B. Situational Analysis A key reason for unemployment in Bhutan is the reluctance of young job seekers to take up jobs in the private sector due to the unattractive working conditions and environment. The Department of Labour aims to enhance the working conditions and labour relations at the work place. The Royal Government has approved the labour administration policy and this clearly provides the policy outlines on the broad functions of labour administration including labour protection, labour relation, employment promotion, skill development, research and information. The other factor that refrains youth from taking jobs in the private sector is the lack of enabling regulatory environment for workers and employers. The absence of these regulations per se doesn’t cause unemployment, but there is evidence to suggest that a large number of Bhutanese youth do not take up employment in the private sector due to lack of trust and confidence in private sector employers. Amongst others the lack of job security and excessive managerial discretion (hire and fire practice) has been cited as the primary reasons of discouraging them to join the private sector. Also there is a need to secure safe and healthy environment for the workers at work sites to mitigate the occurrences of occupational hazards at the work sites. Wherever necessary, recruitment and management of the foreign workers will have to be carried out in order to maintain the adequate number of workers available for private sector development. C. Strategy In order to attract more workers to take up employment in the private sector, the Ministry will focus on creating conducive working conditions and working environment in the private sector through uniform enforcement of Labour and Employment Act accompanied by various other regulations including the one for occupational health and safety. The department is enhancing the management of foreign workers recruitment in the selected occupational fields, which are not taken up by locals for a foreseeable future. A web-based labour net system has been launched with the idea to facilitate the recruitment of foreign workers by online interaction between the private employers and approving agencies. This is expected to cut down the existing long recruitment process and also help coordination between the interacting parties. D. Results Framework Projects/ Impact Outcome Output Activities Attain full Private & corporate sector agencies Working environment Establishment of employment are aware and comply with Labour and conditions in private labor relationships for educated Employment Act provisions sector improved youth Labor relations & Safe working environment for all workers at Inspection all work places Enhancement of Bhutan a member of International Labour Management of foreign workers Organization. The ILO helps Bhutan to foreign workers management set international labour standards. More enhanced Bhutanese workers are willing to join Foreign workers private sector as a result of benifits of management being member to ILO. The Management of Foreign workers will be strengthened Labour Net

228 Tenth Plan Document, Volume 2 E. Management Arrangements Institutional Arrangements 08 The Department of Labour is the coordinating and lead agency for implementing the programme relating to enhancing the working condition and labour relations of the workers. The web-based MINISTRY OF LABOUR AND HUMAN RESOURCES labour net will be used for recruiting foreign labours and the coordination between head office and other regional offices on foreign recruitment will be further enhanced through the use of this web- based system. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Labour relations and inspection 75.150

2 Foreign workers management - Labour net 11.000 Total 86.150 MLHR/04: ENHANCING THE COMPETITIVENESS OF SKILLED WORKER A. Overview 1 Sector : Human Resources

2 Linkage to National Development Objectives & : Employment promotion and poverty reduction Strategies

3 Expected Results : To promote and enhance the quality of vocational skills through the implementation of the Bhutan Vocational Qualifications Framework

4 Relevant MDG & SDG : MDG Goal 1: Eradication of extreme poverty and hunger MDG Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth SDG 1: Eradication of hunger poverty SDG 2: Halve proportion of people in poverty by 2010 SDG 4: Ensure a robust pro-poor growth 5 Donor Agency : 6 Target Group : School drop outs 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 37.587 m

11 External Financing Required : Nu. 37.587 m 12 Executing Agency : Ministry of Labour and Human Resources

13 Implementing Agencies : Department of Occupational Standards

14 Documents Available : Sector Tenth Plan MINISTRY OF LABOUR AND HUMAN RESOURCES 229 B. Situational Analysis There is a need to change the attitude of job seekers, especially towards work and jobs that are menial in nature. The usual perception is that such menial or blue collar jobs are of low profile, beneath their stature and requires only strenuous effort without much use of intelligence and skills. The Department now aims to enhance the competitiveness of the skilled workers employed in such trade to make those areas of work more attractive for gainful employment. The Department over the Ninth Plan developed the Bhutan Vocational Qualifications Framework (BVQF) and based on this developed occupational profiles for 56 occupations, established 6 technical advisory committees for automobile services, construction, tourism and hospitality, Zorig Chusum, manufacturing and ICT sector. Internal staff capacity is being further developed to implement the BVQF. A total of 17 people were trained in assessment and twelve others were trained in test item development. Since the quality of skill workers is as important as the quantity of it for sustainable economic development, quality of skilled workers has to be enhanced through more appropriate skill training delivery in the vocational and zorig chusum institutes, where the training standards meet the expectations of labour market demands. Therefore, importance has to be given to the quality improvement aspects of the training to assure 100% job guarantee for VET graduates. C. Strategy In the Tenth Plan, quality of skilled workers will be ensured through the establishment of output quality assurance system. Such systems will enhance the competitiveness of operators and technicians and open their career path. In order to enhance the quality of skilled workers, the quality of inputs at the training delivery level will be closely regulated and quality standards will be ensured through accreditation of training and establishment of a suitable national accreditation system. D. Results Framework Impact Outcome Output Projects/Activities Attain full Bhutan Vocational Qualifications Quality of Strengthening of VET quality employment for Framework operationalised whereby skilled workers assurance system educated youth the skilled workers in the country are enhanced assessed and certified through national Establishment of a National standardized assessment and certification Quality of Accreditation System system training delivery enhanced Accreditation System for the VET Sector implemented and improved the quality of training delivery by the training providers E. Management Arrangements Institutional Arrangements The Department of Occupational Standards is the coordinating and lead agency for implementing the programme relating to enhancing the competitiveness of the skilled workers. The necessary support will be rendered by the industry experts and instructors especially in the areas of standard development and assessment, which meets the expectation of job market.

230 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 08

1 Occupational standards development 13.307

2 Accreditation system - Assessment and certification system 0.300 MINISTRY OF LABOUR AND HUMAN RESOURCES

3 Competency standard Assessment and Certification 23.980 Total 37.587 MLHR/05: INSTITUTIONAL STRENGTHENING OF VOCATIONAL TRAINING INSTITUTES A. Overview 1 Sector : Human Resources

2 Linkage to National : Employment promotion and povertyreduction. Also important Development Objectives & to the strategy of Vitalizing Industry through developing a Strategies skilled workforce

3 Expected Results : 1.Improving the quality of training 2.Increasing training capacities of the institutes

4 Relevant MDG & SDG : MDG Goal 1: Eradication of extreme poverty and hunger MDG Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth SDG 1: Eradication of hunger poverty SDG 2: Halve proportion of people in poverty by 2010 SDG 4: Ensure a robust pro-poor growth 5 Donor Agency : 6 Target Group : School drop outs 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 604.830 m

11 External Financing Required : Nu. 604.830 m 12 Executing Agency : Ministry of Labour and Human Resources

13 Implementing Agencies : Individual Institutes

14 Documents Available : Sector Tenth Plan B. Situational Analysis Vocational training institutes invariably play an important role not only in providing employable skills to young school leavers to address the critical employment challenge. VTIs also produce valuable skilled workforce for the country. This is particularly important from the context of the Tenth Plan’s strategic objective of Vitalizing Industry to develop a modern industrial economy with a highly trained and skilled workforce. Recognizing its importance, vocational education and training sector has received due emphasis to expand and develop training spaces and improve the quality of training and vocational education, particularly over the Ninth Plan. With the growing number of school leavers coming out of the MINISTRY OF LABOUR AND HUMAN RESOURCES 231 school system especially during the Tenth Plan, impetus on the vocational education-training sector needs to be continued, as it is one way of reducing the ranks of unemployed youth. In Bhutan at present, the six vocational training institutes provide most of the in-country pre-service vocational training to school leavers. C. Strategy In order to overcome the formidable challenge of ensuring full employment amongst educated youth, existing training institutes have to be strengthened and upgraded to accommodate more aspiring training seekers. As such the infrastructure for vocational training therefore has to be expanded to accommodate more trainees and the curricula developed based on and clearly responsive to market demand. Besides infrastructure expansion, additional recruitment of qualified trainers will be necessary to produce trainees who are employable and skilled. The Royal Government thus plans to strengthen the institutional capacity in terms of expanding facilities, diversifying training and making other necessary additions to ease the growing pressure on the existing infrastructure. D. Results Framework Projects Impact Outcome Output /Activities Attain full All VTI Skills/knowledge/qualification of existing teaching staff Improvement of employment graduates are upgraded training delivery for educated competent Management of institutes enhanced in the VTIs youth and gainfully R&D unit established employed Training cum production/income generation activities upon strengthened graduation PPP activities diversified Expansion of Institutes equipped with appropriate training tools and accessibility Annual intake equipment capacity of Training diversified the VTIs Counseling and placement service unit strengthened increased Additional staff recruited Adequate infrastructure facilities developed Use of existing infrastructure optimized E. Management Arrangements Institutional Arrangements The Department of Human Resources will be the executing agency and individual institutes will be the coordinating agency for implementation of their own training programmes, which are within the broad objective framework of creating quality training institutes.

232 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 08

1 Improvement of quality of VTIs training delivery Rangjung VTI 11.810 MINISTRY OF LABOUR AND HUMAN RESOURCES Khuruthang VTI 138.280 Samthang VTI 8.860 Construction Service Center 1.800 Thimphu Institute for Automobile Engineering 13.780 Chumey VTI 15.810 Sarpang VTI 17.820 Zhorig Chusum Internship Service Centre 5.500

2 Expansion of accessibility of VTIs Rangjung VTI 55.380 Khuruthang VTI 140.330 Samthang VTI 55.190 Construction Service Center 0.000 Thimphu Institute for Automobile Engineering 37.250 Chumey VTI 16.470 Sarpang VTI 86.550 Total 604.830 MLHR/06: INSTITUTIONAL STRENGTHENING OF ZORIG CHUSUM INSTITUTES A. Overview 1 Sector : Human Resources

2 Linkage to National : Employment promotion and poverty reduction. Also Development Objectives & important to the strategy of Vitalizing Industry through Strategies building up a highly skilled workforce

3 Expected Results : To enhance quality of training delivered at the IZC

4 Relevant MDG & SDG : MDG Goal 1: Eradication of extreme poverty and hunger MDG Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth SDG 1: Eradication of hunger poverty SDG 2: Halve proportion of people in poverty by 2010 SDG 4: Ensure a robust pro-poor growth 5 Donor Agency : 6 Target Group : School drop outs 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 113.110 m

11 External Financing Required : Nu. 113.110 m 12 Executing Agency : Ministry of labour and human resources

13 Implementing Agencies : Concerned institutes

14 Documents Available : Sector Tenth Plan MINISTRY OF LABOUR AND HUMAN RESOURCES 233 B. Situational Analysis The two Zorig Chusum institutes have played a very important role in training school leavers, particularly those with little or low educational attainments but who are interested in acquiring traditional art and craft skills. The two IZCs offer certificate level courses in various traditional art and craft trades. The duration of the training ranges from one to six years depending upon the particular course taken by the trainees. These institutes have helped provide valuable traditional skills that are in high demand to numerous trainees, many of whom have gone to establish their own enterprises successfully. These self-employed entrepreneurs and their enterprises in time may themselves grow to generate employment for others and thereby contribute to overall private sector growth through a cascade effect. C. Strategy The institutes of zorig chusum will reinforce the efforts made by vocational training institutes in absorbing the growing numbers of school leavers that may likely take up employment in jobs requiring skills. As such the annual intake of the current two Zorig Chusum institutes’ capacity will be increased and additional infrastructure and facilities built to ease problems of overcrowding and create a conducive learning environment. In order to keep up with standard quality training deliveries, the institutes will work in collaboration with the Department of Occupational Standards to update and improve the curriculum that fits the taste of trainees and requirement of the future employing agencies. D. Results Framework Impact Outcome Output Projects/Activities Skills/knowledge/qualification of existing teaching staff upgraded All IZCs Management of institutesenhanced Improvement of graduates are training delivery in competent R&D unit established IZCs and gainfully employed Training cum production/income generation upon activities strengthened graduation Attain full PPP activities diversified and strengthened employment for educated youth Institutes equipped with appropriate training tools and equipment Annual intake capacity Training diversified increased from 50 to 100 Counseling and placement service unit strengthened Expansion of and overall accessibility capacity enhanced Additional staff recruited from 250 to

500 Adequate infrastructure facilities developed

234 Tenth Plan Document, Volume 2 E. Management Arrangements 08 Institutional Arrangements The Ministry of Labour and Human Resources is the executing agency and individual Zorig chusum institutes in collaboration with Department of Human Resources will be the coordinating agencies MINISTRY OF LABOUR AND HUMAN RESOURCES for implementing the institutional strengthening programme’s project, which are within the broad objective framework of creating quality training institutes. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Improvement of quality of IZCs training delivery National Institute of Zorig Chusum 12.700 Trashiyangtse Institute of Zorig Chusum 10.860

2 Expansion of accessibility of VTIs National Institute of Zorig Chusum 23.450 Trashiyangtse Institute of Zorig Chusum 66.100 Total 113.110 MLHR/07: ESTABLISHMENT OF NEW VOCATIONAL TRAINING INSTITUTES AND INSTITUTES OF ZORIG CHUSUM A. Overview

1 Sector : Human Resources

2 Linkage to National : Employment promotion and poverty reduction Development Objectives & Also important to the strategy of Vitalizing Industry through building Strategies up a highly skilled workforce

3 Expected Results : To increase the intake capacity for reducing unemployment problems

4 Relevant MDG & SDG : MDG Goal 1: Eradication of extreme poverty and hunger MDG Goal 8: Target 14: In cooperation with developing countries, develop and implement strategies for decent and productive work for youth SDG 1: Eradication of hunger poverty SDG 2: Halve proportion of people in poverty by 2010 SDG 4: Ensure a robust pro-poor growth 5 Donor Agency :

6 Target Group : School drop outs 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 193.491 m

11 External Financing Required : Nu.193.491 m

12 Executing Agency : Ministry of Labour and Human Resources

13 Implementing Agencies : Department of Human Resources, Ministry of Labour and Human Resources

14 Documents Available : MINISTRY OF LABOUR AND HUMAN RESOURCES 235 B. Situational Analysis Past experience and data from the National Labour Force Surveys reveal dim prospects for youths without skills to secure gainful employment. Unemployment levels are most acute among teenage youths between the ages of 15-19, most of whom have little or no skills required by the labor market. It is estimated that about 63,000 school leavers with secondary level education will be seeking opportunities either in vocational training or direct employment over the Tenth Plan period. The employment situation makes it even more important to expand vocational education and training in the traditional arts and craft trades. To address employment concerns, the Royal Government will seek to attain full employment for educated youth during the Tenth Plan and facilitate the transition of young people into the workplace. C. Strategy One VTI and an IZC will be established with an intake capacity of 250 and 100 each, respectively. In order to ensure that 60% of school leavers have access to vocational education and training, the construction of VTIs would be linked with the accelerated Hydropower. D. Results Framework Impact Outcome Output Projects/Activities To attain full All trainees acquire good 1 new VTI constructed Construction of new employment for skills for employment VTI educated youth 60% of school Training diversified leavers have New VTI with annual Counseling and placement service access to intake capacity of 250 unit strengthened vocational trainees Additional staff recruited education and Adequate infrastructure facilities training developed New IZC with annual 1 new IZC constructed Construction of New intake capacity of 200 Training diversified IZC Counseling and placement service unit strengthened Additional staff recruited Adequate infrastructure facilities developed E. Management Arrangements Institutional Arrangements The Ministry of Labor and Human Resources is the executing and implementing agency for construction of 1 new VTI and 1 IZC in the Tenth Plan.

236 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 08

1 Construction of 1 new VTI 105.010

2 Construction of 1 new IZC 88.481 MINISTRY OF LABOUR AND HUMAN RESOURCES Total 193.491 MINISTRY OF LABOUR AND HUMAN RESOURCES 237

238 Tenth Plan Document, Volume 2 MINISTRY OF WORKS AND HUMAN SETTLEMENT Tenth Plan Document Volume 2 239

240 Tenth Plan Document, Volume 2 MWHS/01: CONSTRUCTION & IMPROVEMENT OF NATIONAL HIGHWAYS 09 A. Overview 1 Sector : Roads MINISTRY OF WORKS AND HUMAN SETTLEMENT

2 Linkage to National : Vision 2020: Completion of the second transnational highway Development Objectives & by 2017. Expansion of Strategic Infrastructure for poverty Strategies alleviation and balanced regional development. This will also greatly facilitate the core strategy of vitalizing industry. 3 Expected Results : Improved safety, reliability and efficiency of national highways

4 Relevant MDG & SDG : SDG Goal 4: Ensure a robust pro-poor growth process SDG Goal 5: Strengthen connectivity of poorer regions and of poor as social groups 5 Donor Agency : 6 Target Group : Nation-wide 7 Scope : Nation-wide 8 Status-Ongoing or New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 5,776.880 m

11 External Financing Required : Nu. 5,776.880 m 12 Executing Agency : Department of Roads (DoR), Ministry of Works and Human Settlement

13 Implementing Agencies : DoR & private sectors,including international construction and engineering firms

14 Documents Available : Road Sector Master Plan, Sector Tenth Plan, Annual Information Bulletin,2006 B. Situational Analysis Being landlocked, Bhutan is heavily dependent on the existing network of national trunk roads as the principal mode of internal transport. One of the major and perennial constraints that the country has always faced has been the mountainous and fragile terrain, which makes the provision of road services difficult and costly. However, sustained investments have been made and must continue to be made given that the national security and socio-economic development depends on the provision of a safe, efficient and reliable road network. It is moreover particularly relevant in bringing the relatively underdeveloped areas into the mainstream of development. While the national highway network has expanded it is still limited in terms of connectivity, coverage and ability to meet the growing demands of larger and heavier transport. Currently, there are 1,634.3 km of expressway and national highways, 481.2 km of district roads, 809.2 km of feeder roads, 150.6 km of urban roads, 716.9 km of farm roads and 559.6 km of forest roads. While this represents a significant expansion of road infrastructure, it is a matter of concern that the country still remains dependent on a single East-West National Highway running through the central-northern part of the country. The absence of another highway running through the south has invariably hindered transportation in the southern areas and inhibited a faster growth of industrial development. The need to construct the Southern East-West Highway thus remains a high priority in the Tenth Plan. This is moreover based on the resolution of the 82nd session of the National Assembly and is also an important milestone target under the Vision 2020. The development of the Southern East-West national highway is expected to further multiply and expand economic opportunities both in rural and urban areas in addition to being a vital strategic aspect of materializing plans to vitalize industry. MINISTRY OF WORKS AND HUMAN SETTLEMENT 241 C. Strategy Guided by the Road Sector Master Plan (2007-2027), national road networks will continue to be expanded and upgraded in order to improve access and connectivity. The Department of Roads will also continue to enhance and strengthen its role in designing, supervising, maintaining quality control and coordinating all road work contracts outsourced to the private sector. Engagement of regional/internationally accredited engineering ansd construction firms will also be encouraged to participate in joint ventures with national construction firms, wherever necessary, to improve the qualitative and quantitative delivery of road infrastructure projects. Furthermore, with a view to ensure the quality of construction and to achive economies of scale, importance will be given to mechanizing the construction sector while maintaining Environmentally Friendly Road Construction (EFRC) practices. The strengthening of the road sector’s institutional capacity, particularly in relation to planning, designing and project management will also be a priority. D. Results Framework Outcome Output Projects/Activities Construction of Samtse-Phuentsholing highway Up-gradation of Phuntsholing –Raidak highway Critical section of Construction of Lhamoizinkha-Raidak highway southern east west Construction of Lhamoizinkha Dagana highway through highway constructed Kerabari to a required Nganglam-Panbang Highway (PPP Model) Socio -economic standard Construction of Gomphu-Panbang highway development enhanced Construction of Gyalposhing-Nganglam highway Safe and reliable Realignment of Nangar –Ura road national highways Realignment of Damchu-Chukha road constructed and Babesa-Phuntsholing double laning improved S/Jongkhar-Trashigang double laning Construction of Damji-Zamechu road Construction of Zamechu-Gasa road E. Management Arrangements Institutional Arrangements The Department of Roads (DoR), Ministry of Works and Human Settlement shall be the overall coordinating and executing agency for the programme while the private sector will implement and execute the work activities planned. Through the National Monitoring and Evaluation System, a standard monitoring and evaluation system, the relevant authorities will monitor and evaluate the programme regularly. Indicative cost Indicative Cost # Description of Projects/Activities Remarks (Nu. in million)

1 Construction & improvement of critical Sections of Southern east-west highway 1.1 Up-gradation of Phuntsholing–Raidak highway (88 km) 1.2 Construction of Lhamoizinkha-Raidak highway (23 km)

242 Tenth Plan Document, Volume 2 1.3 Samtse – Phuentsholing highway (61 km) 811.340 1.4 Construction of Lhamoizinkha-Dagana highway through 09 470.100 Kerabari (75km) 1.5 Other stretches of the Southern-East-West Highway To be explored under MINISTRY OF WORKS AND HUMAN SETTLEMENT (Nganglam-Panbang Priority) PPP model

2 Construction and improvement of North-East/South Highways 2.1 Construction of Gomphu-Panbang highway (56 km) 1,069.900 2.2 Construction of Gyalposhing-Nganglam highway (64.3 1,082.380 km) 2.3 Construction of Damji-Zamechu road (11.3 km) 73.300 2.4 Construction of Zamechu-Gasa Road (14 km) 141.480 2.5 Nangar- Ura realignment (35.6 km) 299.580 2.6 Damchu –Chukha realignment (24 km) 618.800 2.7 Double laning of Babesa-Phuntsholing highway ( 40 km) 1,200.000 2.8 Double laning of S/Jongkhar – Trashigang Highway Total 5,776.880 MWHS/02: CONSTRUCTION AND IMPROVEMENT OF ROADS CONNECTING HYDROPOWER PROJECTS A. Overview 1 Sector : Roads

2 Linkage to National : Vision 2020: Upgrade current national trunk roads to Development Objectives & accomodate 30-70 ton trucks by 2007. Strategies Vitalizing Industry and Expanding Strategic Infrastructure for poverty reduction through facilitating hydropower development

3 Expected Results : Improved safety, reliability and efficiency of national highways with enhanced carrying capacity of road network thereby facilitating the rapid development of hydropower projects 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : Nation-wide 7 Scope : Nation-wide 8 Status-Ongoing or New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 3,786.933 m

11 External Financing Required : Nu. 3,786.933 m

12 Executing Agency : Department of Roads (DoR), Ministry of Works and Human Settlement

13 Implementing Agencies : DoR, private sector and international construction and engineering firms

14 Documents Available : Road Sector Master Plan, Sector Tenth Plan, Annual Information Bulletin,2006 MINISTRY OF WORKS AND HUMAN SETTLEMENT 243 B. Situational Analysis While the national highway network has expanded it is still limited in terms of connectivity, coverage and ability to meet the growing demands of larger and heavier transport. Transportation on the existing national highways is inefficient, lengthy and susceptible to blocks due to natural calamities. Owing to the difficult topography and resource constraints, roads are generally built following land contours with a minimum number of bridges as possible and without tunnels. Hence, the roads, in general, are narrow with sharp curves, steep gradients and highly prone to accidents. Furthermore, most of the existing highways and bridges were constructed at a time when the flow of traffic was very low and load factors small. The use of the road networks to transport heavy plant machinery, equipment and construction materials has increased exponentially due to the construction of hydropower projects. The situation will be even more acute with the accelerated hydropower development programme. In the Tenth Plan, the Royal Government plans to develop hydropower projects such as Punatshangchu I (1095 MW), Punatshangchu II (992 MW), Mangdechu (670 MW), Chamkharchu I (670 MW) and Amochu (500MW). In order to facilitate transportation of various heavy machinery, equipment and materials efficiently to these hydropower projects, new roads wherever will be constructed, existing roads resurfaced, realigned and widened, and bridges built to accommodate 30-70 ton trucks. C. Strategy The DoR will continue its role of design, supervision, quality control and coordination with the actual construction works contracted out to the private sector. The engagement of regional/ internationally accredited engineering and construction firms will also be encouraged to participate in joint ventures with national construction firms, wherever necessary, to improve the qualitative and quantitative delivery of road infrastructure projects. Additionally, with a view to ensure the quality of construction and to achive economies of scale, importance will be given to mechanizing construction activities while maintaining Environmentally Friendly Road Construction (EFRC) practices. Strengthening of the sector’s institutional capacity, particularly in relation to planning, designing and project management will also be priority. D. Results Framework Outcome Output Projects/Activities Construction of Manmung-Digala road Increased and rapid Hydropower roads Construction of Halaley-Dorokha road GDP growth due to constructed and Up-gradation of Gelephu- increased export of upgraded to a set Wangdue highway hydropower standard Up-gradation of Gelephu-Trongsa highway Up-gradation of Tingtibi-Praling road Up-gradation of Sunkosh-Chineythang road E. Management Arrangements Institutional Arrangements The Department of Roads (DoR), Ministry of Works and Human Settlement shall be the overall coordinating and executing agency for the programme while the private sector will implement and

244 Tenth Plan Document, Volume 2 execute the work activities under the programme. The programme will be effectively monitored through the National Monitoring and Evaluation Framework and Planning Monitoring systems. 09 Indicative Cost MINISTRY OF WORKS AND HUMAN SETTLEMENT Description of Projects/ Indicative Cost # Remarks Activities (Nu. in million)

1 Construction of Manmung-Digala Chamkharchu-I hydropower project 218.400 road (12 km) (670 MW)

2 Up-gradation of Tingtibi-Praling Chamkharchu-I hydropower project 72.000 road (38km) (670 MW)

3 Construction of Halaley-Dorokha Amochu Hydropower project ( 500 MW) 199.343 road (26 km)

4 Up-gradation of Gelephu-Trongsa Mangechu hydropower project (670 2,117.300 highway (174 km) MW)

5 Up-gradation of Gelephu-Wagdue Punatshangchu I (1095 MW) and highway (155 km) Punatshangchu II (992 MW) to 1,077.600 be constructed in 2008 and 2011, respectively

6 Up-gradation of Sunkosh- Dagachu hydropower project 102.290 Chineythang road (62km) Total 3,786.933 MWHS/03: MAINTENANCE AND MANAGEMENT OF ROAD ASSETS Overview

1 Sector : Roads

2 Linkage to National : Provision safe, reliable and efficient road network. Development Objectives & Strategies

3 Expected Results : Improved safety, reliability and efficiency of national highways with enhanced carrying capacity. 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Nationwide 7 Scope : Nationwide

8 Status-Ongoing or New : Ongoing / new

9 Timeframe : Five years (2008-2013)

10 Indicative Capital Cost : Nu. 4,154.048 m

11 External Financing Required : Nu. 4,154.048 m

12 Executing Agency : DoR, RGOB

13 Implementing Agencies : DoR and local private sector firms

14 Documents Available : Road Sector Master Plan, Sector Tenth Plan, Annual Information Bulletin,2006 MINISTRY OF WORKS AND HUMAN SETTLEMENT 245 B. Situational Analysis Being landlocked, Bhutan remains heavily dependent on the existing network of national trunk roads as the principal mode of internal transport. One of the major and perennial constraints that the country has always faced has been the mountainous and fragile terrain, which makes the provision of road services and their maintenance extremely difficult and costly. The national highway network has expanded considerably and will continue to do so under the Tenth Plan. Currently, there are 1,634.3 km of expressway and national highways, 481.2 km of district roads, 809.2 km of feeder roads, 150.6 km of urban roads, 716.9 km of farm roads and 559.6 km of forest roads. As the RGOB accords a high priority to the provision of safe, reliable and efficient road network the maintenance and management of the existing road and bridge infrastructure is an equally important and challenging task for the RGOB. C. Strategy The DoR will continue its role of design, supervision, quality control and coordination with the actual construction works contracted out to the private sector. The engagement of regional/ internationally accredited engineering and construction firms will also be encouraged to participate in joint ventures with national construction firms, wherever necessary, to improve the qualitative and quantitative delivery of road infrastructure projects. Additionally, with a view to ensure the quality of construction and to achive economies of scale, importance will be given to mechanizing construction activities while maintaining Environmentally Friendly Road Construction (EFRC) practices. Strengthening of the sector’s institutional capacity, particularly in relation to planning, designing and project management will also be priority. D. Results Framework Impact Output Projects/Activities Road resurfacing (periodic maintenance) – 1000 km Monsoon damage restoration Bridge protection and river training works Installation of road safety measures Safer, more reliable Country’s national Roadside slope stabilization and more efficient road road network well Field accommodation and road side amenities network maintained and Roads geometrics improvements managed Culverts, cribwalls and drainage works Patch repairs and fog sealing works Snow Clearance works Survey, investigation, design and research works Advanced survey and research tools and plants Road maintenance Bridge maintenance and replacement Construction of Nichula bridge over Sunkosh E. Management Arrangements Institutional Arrangements The Department of Roads (DoR), Ministry of Works and Human Settlement shall be the overall coordinating and executing agency for the programme. The minor activities like routine

246 Tenth Plan Document, Volume 2 maintenance of roads, minor improvement works etc. will be implemented by DoR departmentally through force accounts while the capital intensive activities will be implanted through engagement of local contractors depending upon the complexity of the activity. The relevant authoritiess will 09 monitor and evaluate the programme regularly through the National Monitoring and Evaluation framework and Planning and Monitoring systems, MINISTRY OF WORKS AND HUMAN SETTLEMENT Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Road resurfacing (1000km) 1,389.000

2 Monsoon restoration 200.000

3 Bridge protection & river training works 20.000

4 Installation of road safety measures 50.000

5 Road side slope stabilization/bioengineering 10.000

6 Field accommodation and road side amenities 75.000

7 Roads geometrics improvements 50.000

8 Culverts, cribwalls and drainage works 15.000

9 Patch repairs and fog sealing works 10.000

10 Snow Clearance works 5.000

11 Survey, investigation, design and research works 5.000

12 Advanced survey and research tools and plants 10.000

13 Road maintenance 783.630

14 Bridge construction, maintenance and replacement 78.000

15 Construction of Nichula bridge over Sunkosh

16 Feeder Road (Spillover) 1,453.418 Total 4,154.048 MWHS/04: URBAN DEVELOPMENT AND SERVICES A. Overview

1 Sector : Urban Development

2 Linkage to National : Vision 2020: Formulation of growth centers; Through National Development Objectives & Spatial Planning complete the urban development plans for Strategies major towns for balanced development at regional/local levels.

3 Expected Results : The quality of life of the urban population improved through the sustainable development of urban infrastructure facilities and services in existing and new urban centers/township

4 Relevant MDG & SDG : MDG Goal 1: Eradicate extreme poverty and hunger; MDG Goal 7: Target 10: Halve the proportion of population without safe drinking water and sanitation Target 11: Reduce significantly the proportion of population without safe tenure. SDG Goal 2: Halve proportion of population in poverty by 2012 5 Donor Agency : MINISTRY OF WORKS AND HUMAN SETTLEMENT 247

6 Target Group : Urban population 7 Scope : Nation-wide

8 Status-Ongoing or New : Ongoing/New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 3,410.057 m

11 External Financing Required : Nu. 3,410.057 m

12 Executing Agency : Department of Urban Development and Engineering Services, Ministry of Works and Human Settlement

13 Implementing Agencies : Department of Urban Development and Engineering Services, Thimphu and Phuentsholing City Corporations, Dzongkhag Administrations/ municipalities

14 Documents Available : National Urbanization Strategy,2008, Sector Tenth Plan; Draft Thimphu City Development Strategy B. Situational Analysis The process of urbanization is more than four decades old and unlike the urban development history in most countries where the establishment and growth of towns and cities were driven by economic potential, towns in Bhutan initially grew from the establishment of administrative centres. Today, the urban population comprises 31% of the total population, and by 2020 it is projected that more than 50% of the population will be living in urban areas. With this rapidly growing urban population, the urban centres particularly Thimphu and Phuntsholing have already started experiencing adverse effects of urbnaization such as water shortages, housing scarcity, sanitation and waste disposal problems and the deterioration of air quality and the proliferation of squatter settlements in sensitive environment areas. Currently, there are urban plans for 31 towns, of which implementation of plans for around 17 towns are underway. With regard to regulations for urban governance, the Municipal Act, Building Rules, Urban Area and Property Regulations, Water and Sanitation Rules, Development Control Regulation for Thimphu are already in place. Piped and safe portable water supplies are also available in twenty towns and piped sewerage and treatment facilities in two towns. Solid waste management and disposal system have been developed in thirteen towns. As such there is a very high urban population with over 99% coverage for both safe sanitation and drinking water. Water service charges based on actual consumption has moreover been introduced in ten towns, while urban residents of other towns are charged a nominal flat rate. C. Strategy • Devise and implement urban plans for regional growth centres and major towns in accordance with the National Urbanization Strategy and National Spatial Planning Policy; • Enhance urban management capacity through institutional strengthening in the areas of urban planning, data collection, GIS, infrastructure desings and engineering services;

248 Tenth Plan Document, Volume 2 • Continue promoting the decentralization of urban services management through granting of autonomomy to municipalities based on inherent capacities to take up such functions with a view to enhancing efficiency and effectiveness of urban management; 09 • Encourage the urban public to participate more actively in the development and management of cities or towns, including enhancing the aesthetics of the urban environment; and MINISTRY OF WORKS AND HUMAN SETTLEMENT • Promote and encourage private investors or Public Private Partnerships wherever commercially viable to implement the urban development activities given that private investors and promoters are often better equipped to operate in markets and anticipate and respond effectively to changing needs. D. Results Framework Outcome Output Projects/Activities High quality of urban High quality Development of urban infrastructure/ services in life through sustainable infrastructure and Thimphu municipality development of urban services provided amenities and facilities Development of urban infrastructure/ services in and reliable provisioning Livable and planned Phuentsholing municipality of urban services urban towns and infrastructure Formulation of urban plans and development of developed urban infrastructures E. Management Arrangements Institutional Arrangements The Department of Urban and Engineering Services (DUDES), Ministry of Works and Human Settlement will coordinate and manage the programme while the respective municipalities and Dzongkhag administrations will implement the programme. Through Planning and Monitoring System, a standard monitoring and evaluation system, the relevant stakeholders will monitor and evaluate the programme regularly. The DUDES will provide technical backstopping to the dzongkhag and municipalities, wherever required. MINISTRY OF WORKS AND HUMAN SETTLEMENT 249 Indicative Costs Indicative Cost # Discription of Projects/Activities Remarks (Nu. in million )

1 Thimphu Municipality 1.1 Core area development 295.000 1.2 Extended area development 1140.300 1.3 Improvement of service delivery 115.000 1.4 Establishment of driving training facility 5.000

2 Phuentsholing Municipality 2.1 Core area development 484.108 2.2 Extended area development 116.000 2.3 Improvement of service delivery 60.000 2.4 Amochu Land Reclaimation & Flood Mitigation - Public Private Partnership (PPP)

3 Urban Development & Engineering Services 3.1 Urban planning & development 200.000 3.2 Pemagatshel and Nganglam 220.000 Towns Devlopment 3.3 Urban Planning and Survey 80.000 Equpiment 3.4 Urban infrastructure development 252.970 3.5 Rural Infrastructure development 151.600 3.6 Government secretariat complex 197.454 3.7 Construction of MICE hall - Public Private Partnership 3.8 Construction of National Council Building 25.000 5 million Spillover 3.9 Construction of sitting gallery 9.200 Spillover 3.10 Development of coronation park 3.500 Spillover 3.11 Resurfacing of car parking (C/thang) 8.500 Spillover 3.12 Renovation of Tennis Federation Building 3.000 Spillover 3.13 Laying of DMT tiles (Changlimithang Stadium) 1.500 Spillover 3.14 Development of Haa Town 41.925 Spillover Total 3,410.057

250 Tenth Plan Document, Volume 2 MWHS/05: QUALITY ASSURANCE AND STANDARDIZATION 09 A. Overview 1 Sector : Construction MINISTRY OF WORKS AND HUMAN SETTLEMENT

2 Linkage to National Development : Vision 2020: Preparation of a Construction Code Objectives & Enhancement of quality assurance in expanding strategic Strategies infrastructure development 3 Expected Results : Enhanced quality in the construction sector 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : Construction industry (public and private sector) 7 Scope : Nation-wide 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 109.000 m

11 External Financing Required : Nu. 109.000 m 12 Executing Agency : Ministry of Works and Human Settlement

13 Implementing Agencies : Standards and Quality Control Authority, Ministry of Works and Human Settlement

14 Documents Available : Sector Tenth Plan B. Situational Analysis The quality of construction and mataining high construction standards is crucial for the effective utilization of public expenditure. Currently, the poor quality of construction is weak enforcement, poor quality materials, workmanship and technical supervision. Moreover, there is a lack of appropriate engineering standards and construction norms, although the relevant authorities are required to ensure adherence to prescribed engineering and construction standards. Recognizing the need, the Standards and Quality Control Authority (SQCA) was instituted primarily to develop engineering codes of practices and ensure the quality in the construction industry. During the Ninth Plan, the SQCA has reviewed and revised two important documents, viz, the Bhutan Schedule of Rates and Specifications for Building and Road Works; constructed and equpiied a material testing laboratory to test general construction materials, such as stone, sand, bricks; and conducted awareness and sensitization on the quality control/assurance and material testing. C. Strategy Quality assurance and efficiency in the construction industry will be further improved in the Tenth Plan through building institutional capacity on standards, quality control and material testing, amongst others, establishment of regional laboratories and employment of additional technicians and quality based skills. Monitoring of the quality of construction will be continued through certification of quality assurance system, within the construction agencies, construction materials and products. Studies will be conducted to assess the vulnerability of infrastrutures to seismic risks. Furthermore, sensitization and advocacy programme on quality construction, quality materials, products and services will be conducted. Emphasis will also be attached to maintain those aspects of construction which best reflect the best of Bhutanese values, aesthetics and traditional architecture. MINISTRY OF WORKS AND HUMAN SETTLEMENT 251 D. Results Framework Outcome Output Projects/Activities Availability of quality construction materials and equipments Facilitation of quality supplies and materials Research and studies in place to improve and ensure quality Research and technology development High quality physical in construction industry infrastructure that give value to investment Seismic risks to buildings Mitigation of seismic risk to buildings studied and risk to building mitigated Awareness, monitoring and standardization Awareness on construction quality and standardization created E. Management Arrangements Institutional Arrangements The programme will be managed and implemented by the SQCA, Ministry of Works and Human Settlement in collaboration with relevant agencies of the public and private sectors. The National Monitoring and Evaluation and the Planning and Monitoring Systems will monitor and evaluate the programme regularly. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Supply of quality construction materials 55.000

2 Research and Development 5.000

3 Mitigation of seismic risks to buildings 28.000

4 Awareness and monitoring 8.000

6 Standardization 13.000 Total 109.000

252 Tenth Plan Document, Volume 2 MWHS/06: STRENGTHENING OF CONSTRUCTION DEVELOPMENT SERVICES 09 A. Overview MINISTRY OF WORKS AND HUMAN SETTLEMENT

1 Sector : Construction

2 Linkage to National Development : Vision 2020: Preparation of a Construction Code Objectives & Enhancement of quality assurance in expanding strategic Strategies infrastructure development. Will also be instrumental to facilitate private sector development.

3 Expected Results : Enhanced quality in the construction sector and private sector participation in the sector developed. 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Construction industry (public and private sectors) 7 Scope : Nation-wide 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 38.000 m

11 External Financing Required : Nu. 38.000 m

12 Executing Agency : Ministry of Works and Human Settlement

13 Implementing Agencies : Construction Development Board, Ministry of Works and Human Settlement

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Construction Development Board (CDB) was established in 1987 as an independent and representative interagency of the Royal Government to act as both overseer and promoter of the construction industry. Its primary mandate includes developing and promoting technical and managerial skills in the private sector; administration of institutional capacity and performance of contractors and developing policy guidelines. Its role, in general, is to build an efficient and quality based construction industry within the country. The CDB, since its inception, has made a significant contribution to the construction industry. A computerized registration system for contractors has been instituted (improved system of managing and administering the contractors) and interim mechanism for dispute resolution has been developed. Furthermore, it has also developed a CDB strategy document and standard bidding document and revised the CDB manual. However, CDB is faced with acute shortage of competent manpower. Addressing this issue will go a long way in reversing the crtical construction industry issues such as lack of professionalism among contractors, fronting, consortium, collusion and other issues. MINISTRY OF WORKS AND HUMAN SETTLEMENT 253 C. Strategy The CDB in collaboration with the relevant stakeholders will build an efficient and quality based construction industry through the following strategies: • Devise strategic plans to develop a strong private construction sector; • Appraise regularly the performance of contractors to promote professionalism in the construction industry. Encourage contractors to adopt the best construction practices and mechanization in the construction industry while maintaining sustainable and environment friendly construction practices; • Develop institutional capacity in the construction industry through provision of relevant in-country and ex-country trainings; and • Educate and sensitize contractors as well as engineers through relevant trainings on procurement, standard bidding, and evaluation system processes. D. Results Framework Outcome Output Projects/Activities Efficient and reliable construction Improvement and expansion of development services construction development services Efficient and quality based construction Useful Bhuatnese context research on Research and technology industry construction industry carried out development Awareness on best practices and norms created in the construction Create Awareness on the best industry practices E. Management Arrangements Institutional Arrangements The programme shall be managed and implemented by the CDB, Ministry of Works and Human Settlement in close collaboration with the relevant Government and private agencies. The programme under CDB will be monitored regularly and evaluated through Planning and Monitoring System. Indicative Cost Indicative Cost # Description of Projects/Activities (Nu. in million)

1 Improvement and expansion of construction development services 20.000

2 Research and technology development 10.000

3 Awareness 8.000 Total 38.000

254 Tenth Plan Document, Volume 2 09 MINISTRY OF WORKS AND HUMAN SETTLEMENT ANTI-CORRUPTION COMMISSION MINISTRY OF WORKS AND HUMAN SETTLEMENT 255

256 Tenth Plan Document, Volume 2 ACC/01: STRENGTHENING LEGAL & INSTITUTIONAL FRAMEWORK FOR CONTROLLING CORRUPTION 10 A. Overview ANTI-CORRUPTION COMMISSION 1 Sector : Governance

2 Linkage to National Development : Creating an Enabling Environment of Good Governance to Objectives & Strategies help reduce poverty

3 Expected Results : Strengthen ACC systems and procedures 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : 7 Scope : 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008- 2013)

10 Indicative Capital Cost : Nu. 125.370 m

11 External Financing Required : Nu. 125.370 m

12 Executing Agency : Anti-Corruption Commission (ACC)

13 Implementing Agencies : Anti-Corruption Commission (ACC)

14 Documents Available : Anti-Corruption Act 2006; Sector Tenth Plan B. Situational Analysis Corruption is as ancient as it is universal and is caused mainly by human and organizational weaknesses. It gravely undermines democratic institutions and the rule of law, retards sustainable economic development, exacerbates poverty, distorts fair business practices and even creates government instability. It is also known to be a key reason explaining the extreme poverty and underdevelopment prevalent in many countries as it exacts a huge burden on taxpayers and society at large with enormous overt and hidden costs. The Anti-Corruption Commission (ACC) in Bhutan was established on the 31st of December 2005 by Royal Decree to support and promote good governance, particularly in the post Constitutional era. The Corruption Perception Survey 2007 conducted by the ACC revealed the prevalence of corruption in all sectors and at all levels, largely caused by weaknesses in organizational management and leadership. The common forms of corruption range from simple false claims on TA/DA bills, misuse of public resources (money, manpower, properties and facilities), abuse of public authority to collusion and fronting in procurement contracts, bribery, tax evasion and abuse of tax and trade polices. There is a need to make cost and risk of corruption very high. Investigation results depend on the quality of complaints. One of the ACC’s performance indicators is how fast a case is investigated, prosecuted, adjudicated and decisions enforced. Review of the Anti-Corruption Act of Bhutan 2006, enforcement of asset declaration and gift rules, strengthening of administrative rules and regulations and prosecution referral guidelines will be completed within the plan period. A proper and secure office space is required to promote a conducive working environment for the ACC. At the moment the Commission is housed in a rented building which inhibits structural changes to suit the requirement of the ACC. ANTI-CORRUPTION COMMISSION 257 C. Strategy The ACC adopts a three-pronged strategy to curb corruption. This is done firstly through public education and advocacy by instilling a sense of responsibility in eradicating corruption. The ACC also works towards preventing systemic flaws by reducing corruption opportunity and reviewing rules and regulations. Finally, the ACC works to suppress corrupt practices through investigation and punishment. The internal strategic plan to operationalise these strategies has been developed and is being followed. Fighting corruption is virtually everyone’s concern and a shared responsibility of the public, the private sector, media, legislature, judiciary, citizens, academe, dratshang, etc. The National Anti-Corruption Strategy which is a common platform to engage all concerned stakeholders in combating corruption has been developed. Pertinent and salient aspects of the ACC’s key strategies in the Tenth Plan are to: • Build institutional and human capacity of the ACC to discharge its principal function of investigation of corruption and supporting roles of prevention of and public education on corruption; • Build an effective coalition and partnership with key allies and stakeholders and across all sections of society to generate mass support and an enabling environment for combating corruption; • Facilitate exploitation of ICT in enhancing transparency, accountability and efficiency; • Inform and educate Bhutanese society on corruption towards developing a high intolerance towards corruption and inculcating a responsible and ethical attitude and deep integrity to combat corruption; • Promote anti-corruption values, ethics of excellence, integrity and moral standards in youth through school curriculum, family upbringing and cultural propagation; and • Promote islands of integrity. D. Results Framework Impact Outcome Output Projects/Activities Act of corruption A credible ACC institution Institutional strengthening of ACC deterred by effective established Corruption investigation and Public education and advocacy free society prosecution without Public awareness created fear and favour Investigation of allegations of Systemic reviews and corruption eliminated opportunities to Preventing and curbing corruption corruption Human resource development Human capacities developed

258 Tenth Plan Document, Volume 2 E. Management Arrangements 10 Institutional Arrangements The ACC will be responsible for the overall execution and coordination of the Programme in collaboration with the Royal Audit Authority, key allies and stakeholders in the society. Corruption ANTI-CORRUPTION COMMISSION being a transnational phenomenon, mutually beneficial and functional institutional linkages with key anti-corruption agencies in the region will be established. Use of anti-corruption tools will be mainstreamed in various corporate entities. The administration will be decentralized to the respective public entities, except for those falling under the Anti-Corruption Act, which the ACC will administer. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Strengthening of legal and Institutional framework 27.000

2 Construction of office building 40.000

3 Investigation of allegations of corruption 14.500

4 Political corruption awareness and advocacy 14.750

5 Preventing and curbing corruption 29.120 Total 125.370 ANTI-CORRUPTION COMMISSION 259

260 Tenth Plan Document, Volume 2 ELECTION COMMISSION OF BHUTAN Tenth Plan Document Volume 2 261

262 Tenth Plan Document, Volume 2 ECB/01: STRENGTHENING OF ELECTORAL PROCESS IN THE COUNTRY 11 A. Overview

1 Sector : Election Commission ELECTION COMMISSION OF BHUTAN 2 Linkage to National Development : Enabling Environment of Good Governance Objectives & Strategies

3 Expected Results : Facilitate and promote electoral system and processes on continuing basis

4 Relevant MDG & SDG : MDG Goal 8: Develop a global partnership for development 5 Donor Agency :

6 Target Group : All 20 Dzongkhag 7 Scope : 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 79.910 m

11 External Financing Required : Nu. 79.910 m

12 Executing Agency : Election Commission

13 Implementing Agencies : Election Commission

14 Documents Available : Sector Tenth Plan B. Situational Analysis The Election Commission of Bhutan was established under a Royal decree as one of the constitutional bodies in 2005 to usher in a democratic system of governance in the country. The Constitution of Bhutan vests the Election Commission with the superintendence, direction and control of the preparation of electoral rolls, and conduct of all elections to parliament and local governments, and holding national referendums in a free and fair manner. While the ECB has successfully conducted the first parliamentary elections in Bhutan in 2008, it is still severely constrained by certain factors that limit its effective functioning in helping ensure a vibrant and fully functional democracy. The agency lacks the appropriate knowledge, skills, facilities and resources to manage, control and conduct elections to continue emulating the huge success of the first parliamentary elections. As a guardian of democracy and the upholder of various responsibilities entrusted by the Constitution, the ECB will need to ensure that parliamentary democracy is firmly established and a vibrant and fully functional democracy takes root through enabling choices and ensuring the freedom and right of people to choose its government. At present, the Election Commission of Bhutan does not have a proper office space with the office housed in three separate structures located in different places. This acts as a constraint that hinders the administrative functioning of the Commission to properly conduct and manage national and local elections and deliver electoral services and products effectively. The National Parliament has passed the electoral laws and the Election Commission of Bhutan will ensure that these will be fully implemented with relevant policies to ensure that the process of parliamentary democracy is most suited to the present and future needs of the country. ELECTION COMMISSION OF BHUTAN 263 C. Strategy The key strategic activities that will be adopted in the Tenth Plan include: • Identifying and developing facilities, infrastructure and human resource needs required to support and carry out day-to-day operations and electoral events; • Providing comprehensive training and centralized election support to election personnel; • Establishing and developing measurable standards; • Procedures for and innovating service delivery and electoral processes; • Setting performance benchmark targets, evaluating and reporting on performances following electoral events; • Establishing Resource Centre for Electoral Training and Information which will inform and educate people about the electoral processes; • Using information technology in database development, management and updating of Electoral Roll, delimitation of electoral constituencies, election officials, public election funds, etc. to augment the capabilities that would provide the public with the ability to view constituencies, polling places, eligible candidates, referendum items, and other voter and election related information; • Developing and implementing effective electoral event and communication plans; • Undertaking regular policy and legislative reviews and inputs; and • Instituting research and development capabilities on electoral matters. D. Results Framework Impact Outcome Output Projects/Activities A vibrant Enable successful Office building constructed Construction of office building functioning conduct of elections Constitutional to parliament and Public awareness created Publicity and awareness Democratic local governments, System and referendums Human capacities Human resource Development developed E. Management Arrangements Institutional Arrangements The Election Commission will be responsible for the organization and conduct of the general elections, by-elections and referendums in accordance with the provisions of the Election Act and other related acts.

264 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 11

1 Construction of office building 40.000

2 Publicity and Awareness Programmes 6.000 ELECTION COMMISSION OF BHUTAN

3 Conduct BRIDGE ( Building Resource in Democracy, 3.910 Governance and Election ) course

4 Purchase of equipment for election 9.000

5 Information and database management 5.000

6 Professional services 5.000

7 Equipments( furniture 2.5m, Computers & Peripherals 2m,) 4.500

8 Development of Training Center 6.500 Total 79.910 ELECTION COMMISSION OF BHUTAN 265

266 Tenth Plan Document, Volume 2 JUDICIARY Tenth Plan Document Volume 2 267

268 Tenth Plan Document, Volume 2 JUDICIARY/01: INFRASTRUCTURE DEVELOPMENT 12 A. Overview

1 Sector : Judiciary JUDICIARY 2 Linkage to National Development : Enabling Environment of Good Governance through Objectives & Strategies improved access to justice

3 Expected Results : To expand the reach of justice to all sections of society 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : National 7 Scope : National 8 Status-Ongoing or New : New/Ongoing 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 724.383 m

11 External Financing Required : Nu. 724.383 m

12 Executing Agency : High Court

13 Implementing Agencies : High Court /Dzongkhags

14 Documents Available : Judiciary Master Plan 2006; Sector Tenth Plan B. Situational Analysis Past experience from the late 1980s strongly reinforce the perspective that access to courts and judicial efficiency are normally positive when associated with long-term institutional, structural, professional, and procedural reforms of the judicial system. Over recent years, there has been remarkable progress made in institutional strengthening and capacity building of the Judiciary. Separate district courts have been built in many Dzongkhags. Legal services to the general public are also in the process of being continuously improved and expanded. About 200 legal counsel personnel have been trained till date to enhance people’s access to justice. The Advocate Act has been passed and the Office of the Attorney General has been established to provide legal services to the Royal Government. Furthermore, the efficiency in delivering judicial services is being enhanced through the use of information and communications technology. ICT facilities like local area network in the High Court, judiciary websites and email and internet services in the district courts are being provided. Although the Judiciary has seen tremendous progress in the recent past, many areas still need to be developed and improved. While considerable infrastructure has been expanded it is still inadequate in all most all the Dzongkhags. Many Dzongkhag and Dungkhag courts are not housed appropriately and do not have required facilities. In order to strengthen the structural and the institutional independence of the Judiciary as guaranteed in the Constitution and to enhance equal and unimpeded access to justice, the Judiciary will have to improve infrastructure and enhance institutional capacity. The lack of independent court buildings and adequate infrastructure has culminated in court congestion of litigants and also undermined privacy and independence for citizens seeking justice and judicial personnel administering justice. The main focus of the Judiciary in the Tenth Plan is to further improve access to justice and physically establish court building on independent premises. For district courts, this would mean moving the courts outside the dzongs, the headquarters of district administrations. This physical separation between the judiciary and the executive level of governments is seen as a visible and highly symbolic manifestation that reflects the guarantees stated in the Constitution. JUDICIARY 269 C. Strategy The main focus of the judiciary sector in the Tenth Plan will be to develop and improve the infrastructure requirements in order to facilitate the independence of the Judiciary. The establishment of twelve Dungkhag Courts and additional benches along with the up gradation of the present individual Courts has been given high priority in the Tenth Plan. The infrastructure development encompasses the construction of the Supreme, High, Dzongkhag and Dungkhag Courts. However, all judicial facility planning and design must reflect the organizational, operational and facility management requirements of the Justice system. Therefore, strengthening the independence of the judiciary, up gradation and establishments of courts and additional benches has become essential and necessary. D. Results Framework Impact Outcome Output Projects/Activities Increased access Increased access Court buildings Construction of High Court, Dzongkhag to and timely to convenient and constructed Courts, Dungkhag courts and Supreme court justice timely judiciary services Human Capacities Human Resource development developed E. Management Arrangements Institutional Arrangements The High Court in collaboration with its regional offices shall implement the Programme activities stated above. The physical construction works, as per government policy shall be carried out by the private sector. The regional offices shall be responsible for monitoring and supervision of the construction activities. Indicative Cost Indicative Cost # Description of Projects/Activities Remarks (Nu. in million)

1 Construction of the Supreme Court 328.185 Spillover

2 Expansion of High Court 55.000

3 Construction of Dzongkhag Courts 146.000

4 Construction of Dungkhag Courts 55.200

5 Construction of Dzongkhag Courts 29.798 Spillover

6 Construction of road and parking in the Dzongkhag 1.200 court premises

7 Institutional strengthening 109.000 Total 724.383

270 Tenth Plan Document, Volume 2 12 JUDICIARY ROYAL AUDIT AUTHORITY JUDICIARY 271

272 Tenth Plan Document, Volume 2 RAA/01: INFRASTRUCTURE DEVELOPMENT AND INSTITUTIONAL STRENGTHENING OF ROYAL AUDIT AUTHORITY 13 A. Overview ROYAL AUDIT AUTHORITY

1 Sector : Governance

2 Linkage to National Development : Enabling Environment of Good Governance through the Objectives & Strategies establishment of transparent, accountable, responsive and efficient auditing systems

3 Expected Results : Enhanced transparency, accountability and efficiency in the public institutions 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : 7 Scope : Nationwide 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 53.555 m

11 External Financing Required : Nu. 53.555 m

12 Executing Agency : Royal Audit Authority,

13 Implementing Agencies : Royal Audit Authority

14 Documents Available : Audit Act 2006; Sector Tenth Plan B. Situational Analysis The Royal Audit authority has embarked on a concerted plan to shift from traditional compliance or regulatory audit to performance and management audit to ascertain economy, efficiency and effectiveness in the utilization of public resources. The reporting format has been re-structured to make it user friendly and balanced, encompassing both the favourable as well as weak aspects of the operations of the audited agencies. The Royal Audit Authority’s role and responsibilities are guided by provisions of the Audit Act of Bhutan 2006. The legal basis for the RAA’s existence has also been enshrined in Article 24.1 of the Constitution of the Kingdom of Bhutan which explicitly provides for the RAA’s responsibility “to audit and report on the economy, efficiency and effectiveness in the use of public resources”. In order for RAA to perform its functions effectively as required, the agency will require significant infrastructure development to house its various offices across the country. The regional office in Tsirang does not have adequate office space which inhibits the efficiency and productivity of the officers. It is presently housed in a small and old bungalow with limited space and functional areas required. In addition, the RAA intends to construct a Regional Training Center at Tsirang to enable the up- gradation of knowledge and skills of auditors through continuous in-house training. The Regional Training Center would not only facilitate the in-house training for RAA but could also be used by other agencies for workshops, seminars and conferences. ROYAL AUDIT AUTHORITY 273 C. Strategy Infrastructure development across all sectors is a major acvitity of the Tenth Plan as it facilitates equitable access to basic amenities and enhances efficiency and productivity of the end users. The Royal Audit Authority (RAA) as one of the important constitutional bodies also requires the expansion of its infrastructure to accommodate its needs to better fulfill its functions and responsibilities. As the agency is vested with the important responsibility to oversee the implementation of development activities in an economic, efficient and effective manner, the RAA over the Tenth Plan will work towards integrating financial and regulatory audits with a performance audit. D. Results Framework Impact Outcome Output Projects/Activities Enhanced Enhanced economy, RAA Infrastructure Construction of Regional transparency, efficiency and developed Office and training center accountability and effectiveness in efficiency in the public the use of public Qualified and trained Human Resource institutions resources auditors on IT, Development Environment and other relevant disciplines E. Management Arrangements Institutional Arrangements The Royal Audit Authority (RAA) in collaboration with its regional office in Tsirang shall implement the Programme/projects. The physical construction works, as per government policy shall be carried out by the private sector. The regional office shall be responsible for monitoring and supervision of the construction activities. Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Construction of Regional Office and training center 38.185

2 Institutional strengthening 15.370 Total 53.555

274 Tenth Plan Document, Volume 2 13 ROYAL AUDIT AUTHORITY ROYAL CIVIL SERVICE COMMISSION ROYAL AUDIT AUTHORITY 275

276 Tenth Plan Document, Volume 2 RCSC/01: STRENGTHEN ADMINISTRATIVE, LEGAL AND MANAGEMENT SYSTEMS IN CIVIL SERVICE 14 A. Overview ROYAL CIVIL SERVICE COMMISSION 1 Sector : All

2 Linkage to National Development : Good Governance through improving efficiency, Objectives & Strategies accountability and transparency in public administration 3 Expected Results : Efficient delivery of quality public service 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : RCSC/Civil Service 7 Scope : National 8 Status-Ongoing/New : Ongoing

9 Tentative Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 159.000 m

11 External Financing Required : Nu. 159.000 m 12 Executing Agency : RCSC

13 Implementing Agencies : RCSC

14 Documents Available : B. Situational Analysis The Ninth plan period saw the implementation of the Position Classification System (PCS) in the civil service which was introduced as a major policy reform to strengthen public administration and enhance delivery of public services. The broad objective of the PCS was to transform the civil service system into one based on meritocracy, professionalism and efficiency while providing for a small compact and efficient civil service. The PCS Policy document was launched on 29th December 2005 and its implementation spearheaded by the RCSC. The revised Bhutan Civil Service Rules was also launched on 2nd June 2006. The civil service strength has increased at a rate of 5.62% over the last four years and now stands at 19,848. The percentage of expatriates in the civil service has also decreased steadily over the years. The Civil Service Common Examination (CSCE) was introduced in 2005 to streamline and enhance the recruitment of University Graduates. The responsibilities as well as authority for various human resource activities are being decentralized to the Ministries, Agencies and Dzongkhags. The need to determine realistic staff strength and to right size the civil services was felt and to this end, an organizational development exercise was initiated that will be put into place during the Tenth Plan. The preliminary work on organizational Development recommended under the GG plus was also initiated in collaboration with relevant agencies. The OD Exercise was executed in all ministries, Agencies and Dzongkhags beginning January 2007. The draft civil service Act is also under review and likely to be enacted. ROYAL CIVIL SERVICE COMMISSION 277 C. Strategy • Introduce quality and service standards in the Civil Service; • Gradual implementation of the Position Classification to realize its full potential; • Recruit the best and brightest into the Civil Service; • Ensure HR actions on recruitment, appointment, promotion, transfer, discipline and training in the Civil Service are carried out in an efficient, transparent and accountable manner; • Decentralize HR action to the line Ministries, Agencies and Dzongkhags; • Maintain optimal size of the Civil Service for providingquality and efficient services to the Government and the public; • Maintain and promote morale, high standards of ethics and integrity of civil servants; • Institute an excellent performance management system at both organizational and individual level; • Conduct regular Organizational Development Exercise; • Institute M&E and HR Audit to ensure right deployment and utilization of scarce human resources and skills; and • Formulate policies, legal framework and rules as and when necessitated D. Results Framework Impact Outcome Output Projects/Activities Good Highly Civil Service quality Improved Development of quality service Governance competent, standards across all sectors through efficient knowledgeable Quality service standards and quality public and developed and e-governance Introduce e-governance service delivery professional instituted civil service Strengthen HR information HR info.management system management system Effective, developed and operational efficient and Development of quality service responsive civil Organisational Development standards across all sectors service system undertaken and recommendation of the exercise implemented Introduce e-governance

278 Tenth Plan Document, Volume 2 Enhanced recruitment, Strengthen HR information development and management of management system 14 civil servants Institute Organisational Civil Service Act adopted development in all agencies ROYAL CIVIL SERVICE COMMISSION Enhanced Public service delivery Improvement of Performance Management System All agencies subjected to HR auditing and necessary follow up Strengthening selection, HR carried out recruitment, including the common exams, management and deployment of civil service Review and revise existing policies, rules & regulations including the draft Civil Service Act Management Development Programme HR auditing of all agencies E. Management Arrangement: Institutional Arrangements The Royal Civil Service Commission will be responsible for the programme implementation in collaboration with relevant sectors where ever required. Indicative Costs # Description of Projects/Activities Indicative Cost (Nu. in million)

1 Delivery of Quality Service to the Public and Government 31.000

2 Institutional Strengthening through transparent and accountable decision making and HR management 23.000 processes in the civil service

3 Management Development Programme 105.500 Total 159.500 ROYAL CIVIL SERVICE COMMISSION 279 RCSC/02: HUMAN RESOURCE DEVELOPMENT PROGRAMME A. Overview

1 Sector : All 2 Linkage to National Development : Investing in Human Capital through human resource Objectives & Strategies development

3 Expected Results : Efficient delivery of quality public service with enhanced level of skills and qualification of the civil servants 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : Nation-wide 7 Scope : National

8 Status-Ongoing/New : Ongoing 9 Timeframe : Five Years (2008 – 2013)

10 Indicative Capital Cost : Nu. 4,056.757 m

11 External Financing Required : Nu. 4,056.757 m

12 Executing Agency : RCSC

13 Implementing Agencies : RCSC/Agencies

14 Documents Available : RGoB, Civil Service Human Resource Development Master Plan (2002-2007), April 2002. RGoB, The Constitution of the Kingdom of Bhutan, RCSC, Management Development Program Report, 2008 B. Situational Analysis The long term sustainable and successful development of any economy is strongly contingent on the investments made in human capital with the latter constituting a non-diminishing source of economic growth. Cultivating and sustaining human capital through HRD and further improving on its qualitative aspects represents a strategic imperative for promoting growth and reducing poverty. It is in itself a critical factor for the delivery of various development interventions. The quality and critical mass of human resources that is available to the country will also fundamentally shape Bhutan’s long term prospects for engendering a culture of innovation, creativity and enterprise so necessary for enhancing national productive capacities. Human Resource Development During the 9th Plan, a total of 17, 018 training slots were implemented at a cost of Nu. 2.8 billion. Out of these training slots, 1,175 were Bachelors and higher degrees, while 9,078 in-country training slots were implemented during the 9th FY plan compared to 6,891 during the 8th FY plan. This is an increase of 2,187 slots which is (32%) over the 8th plan which marks an improvement on the expanding capacities of various institutions within the country.

280 Tenth Plan Document, Volume 2 An Analysis of the Trainings implemented during the 9th FYP is indicated below. Level 9FYP Total % 14 Ph. D/Spl 22 0.1% ROYAL CIVIL SERVICE COMMISSION Masters 780 4.6% P.G Dip/Cert 231 1.4% Bachelor 146 0.9% Diploma 338 2.0% Short-term/Others 15,441 91.1% Grand Total 17,018 100.0% The Annual Review of the HRD Master Plan was instituted in the 9th Plan to review implementation of the HRD Master Plan and to reprioritize and revise the Plan in accordance with the changing needs and priorities of the Agencies. Four annual reviews have been conducted till date. Moreover, 13 civil servants have acquired Ph. D qualification in the 9th Plan. In line with the overall decentralization policy of the Royal Government, the Human Resource Office was instituted in 2004. This was further consolidated with the establishment of HR Committees within every Ministry, Agency and Dzongkhag in 2006. HR Office was instituted to carry out Human Resource functions like recruitment & selection, promotion, transfers, performance management and training uniformly and consistently across the Civil Service. Today, there are 78 Human Resource Officers in various Ministries, Agencies and Dzongkhags. Many of the HR functions like recruitment, selection, promotion including authority to approve short-term training are decentralized. HR Committees will guide and address all Human Resource actions within an organization to promote broader participation, ensure fair and transparent HR decisions based on merit. The MDP comprising of courses for executives, managers and supervisors in the civil service has been developed. A comparative analysis of qualification of the Civil Service at the start and the end of the 9th Plan is summarized below: Level End of 8th FYP End of 9th FYP Ph. D 0 13 Masters 143 901 Bachelors 1,568 3,534 PG Dip./ Cert. 143 867 Diploma 1,283 2,807 Certificate/Others 11,121 10,683 Total 14,258 18,805 ROYAL CIVIL SERVICE COMMISSION 281 C. I. Objectives and Targets The Human Resource (HR) theme for the Civil Service in the Tenth Five Year Plan is “Enhancing Good Governance in pursuit of Gross National Happiness.” The introduction of parliamentary democracy and the continued rapid pace of socio-economic development effected through the Tenth Plan development activities have significant implications for governance. In the Civil Service the challenges will be to efficiently and effectively support the policies of the RGOB n implementing programmes to deliver quality services to the people. To address this, the Civil Service requires a high standard of performance, professionalism, transparency and accountability, which are the four pillars of good governance. It is therefore essential that the Royal Government strengthen human resource capacities in the Civil Service. Equally organizations and their HR management and development strategies must be aligned with national policies and supported by sector and organizational visions, strategies and plans. The HR objectives for the Civil Service in the tenth FYP are to: • Deliver High Quality Service to the Government and the public in an efficient and effective manner; • Align optimally the HRD plan with sectoral and national development plan; • Attain sufficient inhouse human resource capacity to deliver public services more effectively and efficiently; • Promote professionalism and competence of the civil servants; and • Institute transparent and accountable decision-making and HR management processes in the Civil Service; C. II. Strategy Ensuring better collaboration between the three key agencies: GNH commission, RCSC, MoLHR and the sectors through regular dialogue and coordination: • Improved alignment of the Human Resource Training and Development with the sectoral and national development plan; • Higher resource allocation to priority sectors; • Encourage and support application for open scholarship and provide necessary top-up fund wherever scholarships do not cover the full cost; • Transparent, equitable and fair allocation of scholarships through joint decision between the RCSC and the GNHC taking into consideration the level of resources mobilized for each agencies, importance and current situation of the agencies; • Training identification on the basis of the Organizational Development exercise to determine the strategic human resource needs of the Royal Government; • Conduct an annual review to ensure relevance of training to organizational needs as well as to respond to changing priorities of the organization; • Develop rapidly a pool of critical skilled professionals and sustain the same;

282 Tenth Plan Document, Volume 2 • Equip civil servants with the right qualifications, skills, knowledge and right attitude to achieve organizational performance; 14 • Facilitate continuing education for civil servants to pursue higher qualifications and enhance knowledge and competence; ROYAL CIVIL SERVICE COMMISSION • Decentralize all short term trainings to line Ministries, Agencies and Dzongkhags; • Develop capacities of line Ministries, Agencies and Dzongkhags to implement development plans in the most effective and efficient manner; • Ensure better alignment/match between the field of study and the organisation’s mandate to which the candidate belongs; • Ensure that technical people pursue higher studies directly related to their current degree and not management and general studies; • Improve HR management and deployment to ensure right people are entrusted with the right responsibilities; and • Institute M&E and accountability system. C. III. Rationale for the Sectoral HRD Allocation The guiding principle in allocation of resources for the 10FYP HRD is that the priority sectors which support the Tenth Plan and long term development objectives of attaining economic excellence receives priority resource allocation. This is a break from the traditional approach of assigning certain percentage increase over the previous plan allocation irrespective of the importance of the sector or existing strengths and gaps. Further, the Tenth Plan HRD preparation takes into account each organization’s core mandate, its existing strength, gaps and accordingly allocation and identification of areas are carried out to ensure the HRD supports organizational mandates and functions. Accordingly, the social sectors have been allocated the highest allocation constituting almost about forty eight percent of the total HRD allocation of Nu. 5051.714 million. Recognising the importance of quality education, the education sector has been allocated the highest allocation constituting about 39.2% (MoE, RuB & REC) followed by the Health sector with about 9.5% of the total allocation. The Ministry of Labour and Human Resources and the Ministry of Works and Human Settlement have also been allocated significantly increased allocation as these sectors are seen to be important sectors to pursue economic excellence. Finally, the HRD for the constitutional and allied organizations have been maintained at 100% of the proposal received from these organizations to ensure that the full financial independence and autonomy is maintained and not compromised as provisioned by the Constitution and other acts. ROYAL CIVIL SERVICE COMMISSION 283 D. Results Framework Impact Outcome Output Projects/Activities Quality of Efficient and Sectoral and agencies Undertake various long term and public service professional human resource capacity short term capacity building availed delivery civil service enhanced in-country and ex-country enhanced through improved educational and Plan implementation Ensure proper HR management and professional supported through deployment capacity competent and skilled bureaucrats E. Management Arrangement Institutional Arrangements The Royal Civil Service Commission, the Gross National Happiness Commission and the Ministry of Labour and Human resource will be the three key executing/coordinating agencies while the respective Ministries/agencies/sectors will implement the programme activities in line with the

10FYP HRD Master Plan. All short term trainings will be fully decentralized to the respective agencies while the RCSC will be responsible for administering long term trainings. The GNHC will be responsible for overall HRD planning and resource allocation. Indicative Cost # Field Slots Indicative Cost (Nu. in million)

1 Ph.d 208 555.225

2 Masters 1712 2432.933

3 Post Graduate Diploma 563 250.712

4 PG Certificate 98 12.915

5 Bachelors 628 245.511

6 Diploma 653 202.222

7 Short term 357.239 Total 4056.757* * The total HRD indicative figure is Nu 5235.510m which includes HRD for agencies outside civil service. Also the total Short term indicative outlay for the civil service is Nu.1535.992m as per the HRD plan. This has been reduced to Nu. 357.239m to remain within the overall fiscal ceiling. However no changes will be made in the HRD plan.

284 Tenth Plan Document, Volume 2 14 ROYAL CIVIL SERVICE COMMISSION BHUTAN BROADCASTING SERVICE CORPORATION LIMITED ROYAL CIVIL SERVICE COMMISSION 285

286 Tenth Plan Document, Volume 2 BBS/01: IMPROVE THE REACH AND QUALITY OF BBS RADIO AND TV 15 A. Overview

1 Sector : Information and Communications BHUTAN BROADCASTING SERVICE CORPORATION LIMITED

2 Linkage to National Development : Long term strategy of creating a knowledge-based society Objectives & Strategies

3 Expected Results : Inform Society across the nation and increase the listener ship to 85-90% and TV viewers increased by at least 20 % 4 Relevant MDG & SDG : 5 Donor Agency :

6 Target Group : Whole nation

7 Scope : Nation-wide 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 406.779 m

11 External Financing Required : Nu. 406.779 m

12 Executing Agency : Bhutan Broadcasting Service

13 Implementing Agencies : Bhutan Broadcasting Service

14 Documents Available : SectorTenth Plan B. Situational Analysis The media as a powerful communication tool clearly has a critical role to play in shaping the political, social and economic development agenda in Bhutan. It is particularly important within the context of strengthening democracy and democractic institutions and making governance and policy making more inclusive. This will help ensure the emergence of a robust and vibrant democracy taking root in the country. Finally, the media can play a pivotal role in Bhutan’s prospects of emerging in time as a knowledge-based society. Recognizign this, the Constitution fully affirms the principles of freedom of speech, upholds the right to information for all and the development of a free and responsible media. The Bhutan Broadcasting Service was amongst the first media establishments in Bhutan when its initial radio service the NYAB Radio was started up by a group of volunteers in 1973. In 1986 with the commissioning of a 10 KW short-wave transmitter and a small broadcast studio, Radio NYAB was renamed as Bhutan Broadcasting Service (BBS). The organization has come a long way since. Today the BBS has radio broadcast of 105 hours a week in four languages and its FM and TV services are now available nationwide. A survey conducted in November 2005 indicates that BBS radio is the prime media in the rural and remote areas of the country. FM listeners to BBS radio also increased from 25 percent in 2000 to 78 percent in 2005. In the Ninth Plan FM transmission coverage was increased to 75 percent of the total area of the country with the remaining areas to be covered in the Tenth Plan by installing high power FM transmitters in all the Dzongkhag headquarter and solar based low power transposers in remote locations. This will ensure at least 95 percent coverage and good quality reception all over Bhutan. The airtime for BBS TV has increased from 14 to 94 hrs a week and this does not include live broadcasts outside the normal schedules. News items are also updated daily on the BBS website. The BBS Radio live on-line service was also launched in February 2008. BHUTAN BROADCASTING SERVICE CORPORATION LIMITED 287 Since February 2006, BBS TV has been transmitting its news and services through satellite to all the 20 Dzongkhag and beyond. The satellite service was given free of cost for three years by the GoI. Presently, the BBS has no capacity to provide live news from other parts of the country and without adequate technology andcapacity it would be difficult to sustain and continue nationwide service through satellite. In addition, it is becoming increasingly challenging as important events continually demand live coverage and do require electronic news feeding systems to be developed. For this a satellite newsgathering van SNG, is required to feed in live coverage from the otherparts of the country to Thimphu for live broadcast. Additionally, the Audience Survey Report 2000 recommended that BBS carry out national audience survey once every two years and one intermediate survey every one year. For the Tenth Plan, BBS proposes two national surveys and one intermediate survey. With the increasing popularity of radio and television in the rural areas the demand for more diverse has also increased over the years. C. Strategy There will be a two-pronged strategy for BBS in its media coverage during the Tenth Plan that will focus on expanding both radio and TV coverage. The radio service will be strengthened through FM transmission covering the entire country. The places having access to internet services will be covered through real time internet broadcasting.There is already a good market of internet users in the country as well as abroad for the Internet broadcasting service. Many villages do not have electricity and most of the rural poor cannot afford television sets. To address this constraint, Gewog TV viewing centers have been established in 172 gewogs. The centers have a satellite dish antenna with receiver and a TV set with appropriate power supply set to view BBS TV. This will increase the coverage and help educate the public on various government initiatives. Although BBS TV is transmitted via satellite since 2006, majority of rural people are not able to receive these TV services as many of the remote villages are not connected by cable. An alternate option is to set up an independent terrestrial transmission network using the optical fiber backbone network. This option is critical as it will also serve as a back-up service for satellite transmission. It may be noted that at present BBS does not have formal access to the optical fiber network, without which a fully terrestrial system will not be possible. The existing system is a combination one which relies in the first instance on satellite and thereafter terrestrial transmission via cable TV system and a few VHF TV transmitters. In addition, the existing analogue archives need to be converted into digital format and stored in the system to ensure proper storage and easier access. Digital storage also occupies less space than analogue systems. To document the culture and traditions of the country, a separate division for archives will be established and the documentary section strengthened. The change to digital format has to be done before the analogue systems are phased out.

288 Tenth Plan Document, Volume 2 D. Results Framework Impact Outcome Output Projects/Activities 15 Informed Improved BBS Radio Strengthen FM Services BHUTAN BROADCASTING SERVICE CORPORATION LIMITED society outreach and services Introduce Internet Broadcasting across the capacity for strengthened Purchase and distribute digital receivers nation Radio and TV Up gradation of Chubachu Radio station Programme Installation of TVRO equipment in Gewog Centers production Establish Terrestrial TV network Satellite Service BBS TV Services Establish News Gathering Systems strengthened Strengthen Audio Video archives Programme acquisition Establish Regional Production studio Human capacities Purchase of Equipment for new TV Center developed Establish media resource center Develop Human Resources E. Management Arrangements Institutional Arrangements The BBS will execute and implement the Programme/projects in collaboration with its eight regional bureaus in the Dzongkhags. Indicative Cost Indicative Cost # Description of Projects/Activities Remarks (Nu. In million)

1 Strengthen FM Services 24.010

2 Introduction of Internet Broadcasting 3.140

3 Up gradation of Chubachu Radio station 9.400

4 Digitization of radio station 6.980

5 Purchase and distribution of digital receiver 56.000

6 Establish Terrestrial TV network 79.275 Satellite Service

7 Establish News Gathering Systems 61.500

8 Strengthen Audio Video archives 10.000

9 Programme acquisition 62.500

10 Establish Regional Production studio 49.700

11 Purchase of Equipments for the new TV Center 36.544 Spillover

12 Establish media resource center 4.230

13 Purchase of vehicle 3.500 Total 406.779 BHUTAN BROADCASTING SERVICE CORPORATION LIMITED 289

290 Tenth Plan Document, Volume 2 BHUTAN INFOCOM AND MEDIA AUTHORITY Tenth Plan Document Volume 2 291

292 Tenth Plan Document, Volume 2 BICMA/01: STRENGTHENING OF BHUTAN INFOCOMM AND MEDIA AUTHORITY 16 A. Overview BHUTAN INFOCOM AND MEDIA AUTHORITY

1 Sector : Information, Communications and Media

2 Linkage to National Development : Contributes to all the pillars of GNH but notably in Objectives & Strategies enhancing Good Governance through public advocacy and information dessimination on various political, social and economic issues

3 Expected Results : Effective and efficient regulatory body in place. 4 Relevant MDG & SDG : 5 Donor Agency : 6 Target Group : National 7 Scope : National 8 Status-Ongoing or New : New 9 Timeframe : Five Years (2008 - 2013)

10 Indicative Capital Cost : Nu. 10.500 m

11 External Financing Required : Nu. 10.500 m

12 Executing Agency : Bhutan InfoComm and Media Authority (BICMA)

13 Implementing Agencies : Bhutan InfoComm and Media Authority

14 Documents Available : Bhutan Information, Communication and Media Act 2005, Sector Tenth Plan B. Situational Analysis ICT and the media are powerful tools of communication and clearly have critical roles to play in furthering the political, social and economic development agenda in Bhutan. Among many other things, they are particularly important as agents of social change in the context of strengthening democracy and democractic institutions and making governance and policy making more inclusive. ICT and media also have enormous potential in helping Bhutan overcome the considerable constraints imposed by its geography. Finally, the ICT and Media sector can play a pivotal role in Bhutan’s prospects of emerging in time as a knowledge-based society. Recognizing this, the Royal Government remains fully committed to the professional development of the ICT and Media sector. The freedom and independence of the media in the dessimination of information is enshrined as a fundamental right under the Constitution, which further affirms the critical role of the sector. The Royal Government has also put in place the legal and institutional framework to support its full development. The Bhutan Information, Communications and Media Act was enacted in July 2006 and subsequently, the Bhutan InfoComm and Media Authority (BICMA) was established to ensure the effective use, management and regulation of this important sector. The BICMA has now been de-linked from the Ministry of Information and Communications and functions as an autonomous agency with a mandate to regulate the ICT and Media sector in Bhutan. The BICMA’s specific functions include the regulation of telecommunications services, media services like cable television, broadcasting and printing press, assignment of radiocom frequencies and management of the radiofrequency spectrum. It licenses all ICT and Media facility providers and service providers. It also prepares various guidelines, sets technical standards and frame terms and conditions for the provision of such services. BHUTAN INFOCOM AND MEDIA AUTHORITY 293 C. Strategy To promote and enhance the application and use of the ICT and Media sector in Bhutan’s holistic development, BICMA has already adopted and will maintain a “light touch-regulation” approach as dilineated in the Bhutan ICT Policy and strategies (BIPS) document. The light touch policy as the name implies means applying regulations in a sensible and light handed manner but in no way indicates a laissez faire approach as the independence of the ICT and media sector can be fragile and easily compromised. The policy clearly envisages and supports the development of the sector in the right environment with the freedoms and capacities balanced by the necessary checks and balances. To that extent the self-regulation of the sector and the creation of a liberalized and competitive ICT infrastructure market through licensing new operators and service providers are the key strategies in the Tenth Plan for strengthening the BICMA. Recruitment of technically qualified staff and capacity building of the staff will also need to be given priority for the effective monitoring and regulation of the sector. In terms of strategic activities, BICMA will actively engage in the development of National Radio Regulation; enforce the Bhutan Information, Communication and Media Act 2006 and implement various policy directives that emanate from the Act; formulate appropriate rules and guidelines; manage radio spectrum; operationalize the Universal Service Fund and develop the human resources of the institution and sector. D. Results Framework Impact Outcome Output Projects/Activities Conducive regulatory National Radio Development of National Radio environment for Regulation developed Regulation media promoted Effective enforcement Enforcement of the Bhutan Information, Conducive regulatory of the Bhutan Communication and Media Act 2006 environment for Information, Socio- media promoted Communication and Enforcement and Implementatinon of economic Media Act 2006 and the policy directives on ICT and Media and political Competitive and implementation of development vibrant information Policy Directives on Formulate Rules, Code, guidelines as promoted and communications ICT and Media per the Act through media sector developed Rules, codes and Management of Radio Spectrum Vibrant, informed guidelines as per the and politically active Act formulated Operationalization of Universal Service civil society created fund Human Capability and Capacity Developed Human Resource Development E. Management Arrangements Institutional Arrangements The Bhutan InfoComm and Media Authority (BICMA) will be the overall execution and implementation of the programme.

294 Tenth Plan Document, Volume 2 Indicative Cost # Description of Projects/Activities Indicative Cost (Nu. in million) 16

1 Implementation of the Bhutan Information, Communication 7.500 and Media Act 2005 BHUTAN INFOCOM AND MEDIA AUTHORITY

2 Enforcement of policy directives on ICT and Media 1.000

3 Improvement of Monitoring station at Tsirang 2.000 Total 10.500 BHUTAN INFOCOM AND MEDIA AUTHORITY 295

296 Tenth Plan Document, Volume 2 BHUTAN NARCOTIC CONTROL AGENCY Tenth Plan Document Volume 2 297

298 Tenth Plan Document, Volume 2 BNCA/01 – INSTITUTIONAL STRENGTHENING AND INFRASTRUCTURE DEVELOPMENT 17 A. Overview BHUTAN NARCOTIC CONTROL AGENCY