Yangyel Lhaden
Following the recent launch of the Asian Development Bank’s (ADB) new Bhutan Country Partnership Strategy (CPS) for 2024-2028, the president of ADB Masatsugu Asakawa is on a three-day official visit to Bhutan from September 23 to 26 to enhance collaboration between the ADB and the government of Bhutan.
The new CPS outlines a vision for fostering inclusive, sustainable, and resilient growth while generating jobs through strategic priorities.
The key initiatives of the strategy include improving public sector management, facilitating private sector development, constructing climate-adaptive infrastructure, and investing in human capital to enhance youth employability.
These initiatives align with Bhutan’s 13th Five-Year Plan.Masatsugu Asakawa reaffirmed ADB’s commitment to supporting Bhutan’s development goals and praised the country’s recent achievements during the official visit.
Since its establishment in 1966 and operational launch in Bhutan in 1982, ADB has served as a crucial development partner, focusing on key areas such as infrastructure, agriculture, and social services. Initially, the bank concentrated on rural development and infrastructure to address Bhutan’s challenging geography.
Over the years, ADB has significantly expanded its portfolio, committing USD 1.2 billion by 2023 through 207 public sector loans, grants, and technical assistance, making it one of Bhutan’s largest development partners, alongside India.
Currently, ADB manages a portfolio of 13 loans and 12 grants in the country, totalling USD 363 million.
“Bhutan has made significant strides in reducing poverty and improving education and health services, and its recent graduation from least developed country status is commendable,” Masatsugu Asakawa said. “As a trusted partner for over four decades, ADB remains committed to helping Bhutan build on its progress and achieve sustainable development, and the new country strategy provides the road map.”
During the official visit, the ADB President called on Finance Minister Lekey Dorji yesterday. During the meeting, they discussed on ADB-Bhutan partnership into different investment areas of hydropower, renewable energy, health sector development, Technical and Vocational Education and Training, vocational education, transport, finance, public sector management, urban development, and water resources.
The President and the finance minister jointly officially launched the ADB Bhutan CPS and witnessed the signing of a loan agreement of USD 30 million for the Distributed Solar for Public Infrastructure Project, which aims to install rooftop solar panels on public buildings to generate up to 35 MW of energy.
The ADB President will visit various ADB administered projects in Thimphu and Wangdue, besides meeting key officials to foster ADB-Bhutan partnership.