From this year, Bhutan can now access about US$ 70 M in the highly concessional loan from the Asian Development Bank (ADB), which is an increase by over US$ 20 M as compared to previous years.
This was highlighted at the celebrations of the 5th anniversary of the establishment of the Bank’s Bhutan Resident Mission yesterday.
The Resident Mission’s Country Director said, in addition to the revised concessional loan, Bhutan can access to an additional US$ 3 M grant annually. It will be for projects that will address disaster preparedness and disaster reduction.
“The relationship between the ADB and Bhutan will continue as a partnership. We are proud to partner with the government. We will work closely as a development partner and even local stakeholders in terms of think-tank and civil society in order to deliver development agenda,” Kanokpan Lao-Araya, the Country Director of Bhutan Resident Mission, said.
The ADB has been Bhutan’s largest multilateral development partner. Since Bhutan joined the ADB in 1982, Bhutan has received its assistance in the form of concessionary Asian Development Fund loans and grants, Ordinary Capital Resources loans for hydropower development and various types of technical assistance.
“The Bank has taken into consideration the country’s resource gap and identified critical developmental needs of the country. Today, the ADB’s focus is in line with the country’s five-year development plan and the country partnership strategy,” Finance Minister Namgay Tshering said.
“It is mainly focused in the areas of roads, urban infrastructure development, energy and rural electrification projects, and financial sector development.”
Bhutan has so far received US$ 495 M in loan and 246 M dollars as grants from the ADB.