YK Poudel

Project DANTAK of the Border Roads Organization (BRO) formalised a Memorandum of Understanding (MoU) with the State Trading Corporation of Bhutan Limited (STCBL) to ensure a consistent supply of petrol and diesel for its fleet of vehicles and heavy equipment used in infrastructure projects in the country.

The MoU, signed yesterday, is effective for one year. However, Project DANTAK has been sourcing fuel from STCBL for the past four years.

Brigadier Rohit Gupta, chief engineer of Project DANTAK at the signing said that, the MoU with STCBL reaffirms their commitment to DANTAK’s motto ‘Connecting People-Connecting Countries’.

“By collaborating and sourcing materials and services locally, the Project not only ensures efficiency in operations but also supports Bhutanese enterprises and fosters economic growth within the country,” he said.

Ajay Chauhan, the staff officer (resource) of Project Dantak said that MoU ensures uninterrupted fuel supply to all sub-units of Project DANTAK, enabling seamless execution of its projects across Bhutan.

“Last year, the agreement’s value exceeded Nu 97 million, underscoring the scale and significance of the collaboration,” he said. “The deal for the current year is expected to be similarly substantial with a forecast of 1,750 kilolitres (KL), reflecting the shared commitment of both organizations to Bhutan’s infrastructural growth and development.”

One of the primary goals of this MoU is to secure continuous fuel supplies for Project DANTAK, particularly for operations in the eastern regions of Bhutan.

In the financial year 2022-23, DANTAK procured 1,410 KL of fuel, with an estimated 1,200 KL already procured in 2024.

Chencho, officiating chief executive officer of STCBL said that STCBL would soon establish fuel stations and retail outlets in Nganglam and Lhamoizingkha. “This partnership aligns with our goal of contributing to national development by supporting and facilitating critical infrastructure projects,” he said.

The quantity of fuel supplied and its pricing will depend on both the requirements of Project DANTAK and the prevailing market rates.

Since its establishment in 1961, Project DANTAK has been working on developing Bhutan’s road network, connecting remote regions, facilitating trade, and enhancing accessibility for communities.

In recent years, the project has deepened its engagement with local contractors and vendors, further boosting the local economy through increased collaboration.