Bhutan Receives Nu 1.2 Billion from India for Community Development Projects

In a continued show of strong bilateral cooperation, the Government of India has released over Nu 1.2 billion to Bhutan under the second phase of the High Impact Community Development Projects (HICDP) programme. The Indian Ambassador formally handed over the cheque to Bhutan’s Finance Minister during a ceremony held today in Thimphu.

This latest tranche of assistance will fund nearly 300 new community projects approved during the second Bhutan-India HICDP Committee meeting last month. The projects span a wide range of rural development priorities, including the construction of drinking water systems, irrigation channels, farm roads, health facilities, and agricultural infrastructure. Several initiatives will also focus on land development, agricultural marketing, and other essential community services aimed at improving rural livelihoods.

The HICDP initiative, launched as part of Bhutan’s 13th Five-Year Plan, continues to serve as a cornerstone of India’s development partnership with Bhutan. In its first phase, around 280 projects were approved, of which 45 have already been completed. The majority of the remaining projects are nearing completion since the programme began in July last year.

During a recent field visit, officials inspected several ongoing projects in Thimphu, including the construction of the North City Bus Terminal at Dechencholing, a new Bazam near the Centenary Farmers’ Market, and the blacktopping of the Danglo-Wooluna Chiwog Road.

Chencho, Director of the Office of the Cabinet Affairs and Strategic Coordination, emphasized the importance of timely implementation. “The Government of India has released a new Nu 1.2 billion, and now it is our duty to ensure these projects are completed on schedule,” he said. “The Ministry of Finance and the Cabinet Secretariat will work closely with local governments to make sure these funds are used effectively and ultimately benefit the citizens.”

Out of the Nu 85 billion that India has committed to Bhutan’s 13th Five-Year Plan, Nu 10 billion has been earmarked specifically for High Impact Community Development Projects. With the latest release, Bhutan has now received nearly 50 percent of the total funds pledged by India under the HICDP programme — a clear reflection of the deepening partnership between the two neighbors in promoting sustainable and inclusive growth.

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