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India reassures 10th plan funds
30 October 2009
The Indian government’s response to the requests and proposals from Bhutan government regarding the implementation of the 10th five-year plan is positive. Bhutan put up proposals in the areas of fund releases, energy, roads, total solutions projects and small development projects.
Some senior government officials met with the delegates from India led by Joint secretary (North) of India, Satish C Metha, on Wednesday to hold the Bhutan-India Development Cooperation Talks to review the GoI’s assistance to Bhutan’s 10th Plan. A few issues under the Project Tied Assistance that required immediate attention were discussed during the meeting. Of the total of Nu 2951.875 million requested during the financial periods 2008-09 and 2009-10, Bhutan received only Nu 1322.203 million till date. The foreign secretary, Daw Penjor, said that the government was concerned that it may not be able to implement all the projects under the PTA nor complete them within the plan period if the fund releases are not received on time. Therefore, early release of the funds was requested.
To achieve a target production of 10,000 MW of electricity by 2020, an Empowered Joint Group (EJG) was formed between the two governments to accelerate the process. Bunakha reservoir, Wangchu reservoir, Amochu reservoir and Kuri Gongri projects were identified to replace the earlier projects of Rotpashong and Chamkharchhu for inclusion under the 10,000MW scheme. The preparation of the Detailed Project Report (DPR) for the projects, Daw Penjor said, needs to be included under the PTA. The government also requested on the inclusion of the access roads of Semtokha- Wangdue Highway improvement and Tingtibu- Praling road construction for the achievement of 10000 MW. These roads were important for access to hydropower projects approved by the EJG.
The royal government, for easy transportation of heavy machineries and equipments through the Gelephu- Wangdue Highway to Punatshangchu project site, requested the GoI to improve the bad conditioned Santhalbari-Gelephu road which is the access point to the highway.
Bhutan has initiated the Total Solutions Projects with the NIIT of India with a view to turn Bhutan into a knowledge bases society. It was earlier proposed to fund the projects from the PTA commitments. However, since the funds under PTA have already been allocated to the projects agreed between the two countries, the government requested for an additional funding to be provided at the earliest.
On this project, the Indian government asked for more detail.
It was also proposed that the first small development projects committee meeting to be held at the earliest as there was pressure for all quarters to start the projects at the earliest. A meeting was agreed to be held soon. Meanwhile, Daw Penjor, reiterated the importance of the 10th since the present plan was the first to be implemented under the Fifth King and first democratically elected government. He said that the success and failure of the plan will determine people’s confidence in democracy.
“With assistance from India, we are confident that we would be able to achieve the objectives of the plan,” he said adding that 10th plan will ensure the establishment of a sound foundation of democracy in Bhutan.
On the earthquake recovery front, Daw Penjor requested the Indian government to support and assist in the earthquake recovery for the reconstruction works will have a serious impact on the 10th plan without the assistance of the developing partners.
In response, Observer learnt that the GoI was forthcoming on all the issues discussed and that budget would be released soon. However, a cost escalation was noted in a couple of projects- the energy sector with four new DPRs and the ACC office construction. The Indian government said this shouldn’t be a problem and plans would be reprioritized.
An agreement on the outcome of the meeting will be signed today. The GoI is Bhutan’s largest development partner with a total commitment of Nu 34 billion in the 10th plan outlay.
Sonam Pelden
India reassures 10th plan funds - Bhutan Observer - Bhutan News
30 October 2009
The Indian government’s response to the requests and proposals from Bhutan government regarding the implementation of the 10th five-year plan is positive. Bhutan put up proposals in the areas of fund releases, energy, roads, total solutions projects and small development projects.
Some senior government officials met with the delegates from India led by Joint secretary (North) of India, Satish C Metha, on Wednesday to hold the Bhutan-India Development Cooperation Talks to review the GoI’s assistance to Bhutan’s 10th Plan. A few issues under the Project Tied Assistance that required immediate attention were discussed during the meeting. Of the total of Nu 2951.875 million requested during the financial periods 2008-09 and 2009-10, Bhutan received only Nu 1322.203 million till date. The foreign secretary, Daw Penjor, said that the government was concerned that it may not be able to implement all the projects under the PTA nor complete them within the plan period if the fund releases are not received on time. Therefore, early release of the funds was requested.
To achieve a target production of 10,000 MW of electricity by 2020, an Empowered Joint Group (EJG) was formed between the two governments to accelerate the process. Bunakha reservoir, Wangchu reservoir, Amochu reservoir and Kuri Gongri projects were identified to replace the earlier projects of Rotpashong and Chamkharchhu for inclusion under the 10,000MW scheme. The preparation of the Detailed Project Report (DPR) for the projects, Daw Penjor said, needs to be included under the PTA. The government also requested on the inclusion of the access roads of Semtokha- Wangdue Highway improvement and Tingtibu- Praling road construction for the achievement of 10000 MW. These roads were important for access to hydropower projects approved by the EJG.
The royal government, for easy transportation of heavy machineries and equipments through the Gelephu- Wangdue Highway to Punatshangchu project site, requested the GoI to improve the bad conditioned Santhalbari-Gelephu road which is the access point to the highway.
Bhutan has initiated the Total Solutions Projects with the NIIT of India with a view to turn Bhutan into a knowledge bases society. It was earlier proposed to fund the projects from the PTA commitments. However, since the funds under PTA have already been allocated to the projects agreed between the two countries, the government requested for an additional funding to be provided at the earliest.
On this project, the Indian government asked for more detail.
It was also proposed that the first small development projects committee meeting to be held at the earliest as there was pressure for all quarters to start the projects at the earliest. A meeting was agreed to be held soon. Meanwhile, Daw Penjor, reiterated the importance of the 10th since the present plan was the first to be implemented under the Fifth King and first democratically elected government. He said that the success and failure of the plan will determine people’s confidence in democracy.
“With assistance from India, we are confident that we would be able to achieve the objectives of the plan,” he said adding that 10th plan will ensure the establishment of a sound foundation of democracy in Bhutan.
On the earthquake recovery front, Daw Penjor requested the Indian government to support and assist in the earthquake recovery for the reconstruction works will have a serious impact on the 10th plan without the assistance of the developing partners.
In response, Observer learnt that the GoI was forthcoming on all the issues discussed and that budget would be released soon. However, a cost escalation was noted in a couple of projects- the energy sector with four new DPRs and the ACC office construction. The Indian government said this shouldn’t be a problem and plans would be reprioritized.
An agreement on the outcome of the meeting will be signed today. The GoI is Bhutan’s largest development partner with a total commitment of Nu 34 billion in the 10th plan outlay.
Sonam Pelden
India reassures 10th plan funds - Bhutan Observer - Bhutan News