GOI contribution: Rs. 10500 million

Indian contribution to Bhutan’s 8^th Five Year Plan (1997-2002) is Rs 10500 million, comprising Rs 4000 million as development subsidy and Rs 6500 million as project-tied assistance.

Mega projects like the Tala hydroelectric project, the Kurichu hydroelectric project and the Dungsam Cement, with the combined assistance of about Rs 16250 million in 8^th Five Years Plan, in the form of grants and loans, (Tala-Rs 10000 million, Kurichu-Rs 5250 million and Dungsam-Rs1000 million) are outside India’s planned assistance.
In essence, total GOI assistance to Bhutan in the 8^th Five Year Plan would actually amount to Rs. 77000 million.

Some important projects taken up during the 8^th Five Year Plan are: 

• Pasakha-Manitar By-pass Road
  
  Location: 38.9 km of road on Thimphu-Phuentsholing highway connecting Pasakha near Phuentsholing to Manitar near Gedu
  Funded by GOI at a revised cost of Rs 754 million (estimated)
  
  The Pasakha-Manitar by-pass road project has been undertaken to avoid the recurring landslide zone at the most vulnerable portions at Takti and Sorchen on the Thimphu-Phuentsholing highway, which links Bhutan with the State of West Bengal on the Indian side. The highway is the most important link with India and facilitates in a major way the movement of goods and services between the two countries.  Government of India approved the project at an estimated cost of Rs 754 million  (including Phase I & II). Project Dantak started the work in September/October, 1999. The project has resumed in the 9^th plan at a revised cost.
  

• Punakha Dzong Renovation
  
  Location : Punakha district
  Funded by GOI at a cost of Rs 228.5 million
  
  Punakha Dzong (Fortress) built by the first Dharma Raja of Bhutan in the 17^th century, is the seat of the monastic body during winter months. Renovation of the Dzong and Talo Lhakhang (temple) started in early 1980’s. India’s commitment to this project is Rs 228.5 million out of the estimated cost of Rs 347.905 million. The Dzong was inaugurated in May 2003 by His Holiness the Je Khenpo in the presence of His Majesty the King, Their Majesties the Queens, Royal family members, cabinet Ministers, Indian Ambassador Shri K.S Jasrotia and other dignitaries. Je Khenpo thanked GOI for our assistance in the renovation of the Dzong.
  

• Rehabilitation of Educational Infrastructure
  
  Location : Throughout Bhutan
  Funded by GOI at a cost of Rs 200 million
  
   Activities undertaken under this project include renovation/construction of classrooms, hostels, staff quarters, science laboratory, library and electrification works at 28 Junior High Schools/High Schools.  All works have been completed.  
  

• Eastern Grid Transmission line
  
  Location : Eastern Bhutan
  Funded by GOI at a cost of Rs 1276 million
  
  Project to evacuate the power generated by the Kurichu Hydroelectric Project.  It consists of construction of 132/33 KV & 33/11 KV substations at Deothang, Nangkor, Kanglung, Kilikhar, Tintibi & Nanglam and works on the existing 132 KV substation at Geylegphug and associated infrastructure works.  Single Circuit 132 KV Transmission Line of about 72 km is to be constructed as follows :
  
  (a) Gyelpozhing-Kilikhar-Kanglung - 46 km
  (b) Nangkor-Deothang - 26 km
  
  M/s WAPCOS (India) Ltd. are consultants for the project.  The revised estimated cost of the project, funded by GOI, is Rs 1276 million.  The Project was inaugurated in June 2003 ensuring supply of power to seven eastern and southern Dzongkhags (districts) from Kurichhu Hydroelectric project.  
  

• JDWNR Hospital - a 350-bed hospital
  
  Location: Thimphu
  Funded by GOI at a cost of Rs 180.83 million
  
  Initially, a project was conceived to upgrade the 175-bed Jigme Dorji Wangchuck Hospital to a national referral hospital at the cost of Rs.87 million.  Later however, it was felt that the existing structure was too weak to upgrade. It was, therefore, proposed to build a new 350-bed hospital at a revised cost of Rs  180.83 million. The released amount has been utilized towards the construction of filter clinic, lab building, compound wall, gift shop, doctors and nurses quarter and internal road. 
  
  Construction of the main hospital complex is yet to begin. The consultancy work has been awarded to M/s Apollo Hospitals Group.   The total cost of the project has gone up to Rs 870 million, including the amount already spent. Work is expected to begin shortly after the signing of MoU between the two countries.  
  

• Regional Referral Hospital
  
  Location: Mongar
  Funded by GOI at a cost of Rs 90.837 million
  
  The project was initially conceived during the 7^th Plan for remodeling and upgrading the existing Hospital in Mongar to a 100-bed.  India’s revised commitment is to fund a 150-bedded hospital at the cost of Rs 90.837 million.  The scope of the project included staff quarters, furnishing basic equipment and other essentials like electric sub-station, internal road network, water supply, landscaping and generator set. Location of the hospital in Mongar provides easy access to the people of seven districts in the eastern region. 
  
  Rs 75 million released during the 7^th & 8^th Five Year Plans was utilised for staff quarters, part of internal compound fencing of the hospital complex and preliminary preparation of the site for the hospital. The consultants of the hospital are M/s Apollo Hospitals Ltd. The completion of the new hospital will spill over to the 9^th Plan.  The revised cost of the project has gone up to Rs 514 million, including the fund already utilised.

Sector-wise allocation in GOI Aided Projects in 8^th Plan 
(Fig. In Million Rupees)

S.N.	PROJECT/ACTIVITY	8th Plan Allocation	Reprioritized allocation
1. 2.	CULTURE Punakha Dzong Fire Fighting Equipment for Dzong	228.500    63.500	228.500 40.000
	Sub Total	292.000	268.50
3. 4. 5. 6.	EDUCATION Rehabilitation of Edn. Infrastructure Sherubtse College Upgradation NIE Samtse Approach Road to T/Yangtse School	366.100 22.600 11.292 0.000	200.549 22.600 10.743 14.943
	Sub Total	399.992	248.835
7. 8. 9. 10. 11. 12. 13. 14. 15. 16.	POWER Power Transmission Eastern Grid Power STD Phase II (Thimphu & Paro) Mini Hydels-Chennary Mini Hydels-Lhuntshi Mini Hydel-Wangdi Mini Hydel-Gidakom Mini Hydels-Others a) Mini Hydels-Khaling b) Mini Hydels-Khalanzi c) Mini Hydels-Chhumey Kurichu-Lhuntshi Transmission Line  ( Previously Lhuntshi Small HE Project) Improvement & Upgradation of Transmission Grid Rural Electrification Transmission Line	800.000    395.280      17.040        8.980        2.870      27.210 5.740        6.390 11.950 120.000 190.000 43.750	1276.237   357.380 27.540 10.980 7.000 27.50 9.240 11.460    21.450   225.367 97.602 39.079
	Sub Total	1,629.210	2,110.835
17. 18. 19. 20 21.	HEALTH Mongar Hospital Lhuntse Hospital Tashiyangtse Hospital JDWNRH Expansion Malaria Control Programme	60.830 31.640 31.670 180.830 20.000	90.830 31.640   36.670   180.830    16.000
	Sub Total	483.000	355.970
22.	URBAN DEVELOPMENT Khuruthang Township Project	28.700	40.122
	Sub Total	28.700	40.122
23. 24. 25. 26. 27.	ROADS & BRIDGES Pasakha-Manitar Highway (Sorchen Bypass Road) Construction of Three Bridges Construction of Bhurchhu Bridge Construction of Feeder Road at Haa  Construction of Bypass Road at Deothang	350.000 63.000 36.000 34.000	543.160 105.000 36.795 34.000 12.244
	Sub Total	662.000	731.199
28.	SURVEY Identified Co-op. Projects	16.000	18.500*
	Sub Total	16.000	18.500*
29.	JUDICIARY Construction of High Court Building	108.000	4.000
	Sub Total	108.000	4.000
30. 31.	TRADE & INDUSTRY Gidakom Inudstrial Estate Fire Ftg. Eqpt. For POL Depot, Deothang	7.000     4.500	1.380 2.250
	Sub Total	11.500	3.630
32.	AGRICULTURE Integrated Area Dev. Sub-Tropical Zone	5.000	1.000
	Sub Total	5.000	1.000
33.	CIVIL AVIATION Paro River Training Works	4.518	4.518
	Sub Total	4.518	4.518
34.	HRD Scholarships	110.63	40.00
35.	7th plan projects and outside 8th plan agreed projects	228.776	228.776
	GRAND TOTAL	3,979.326	4,055.885

Previous Five Year Plans

Serious developmental efforts in Bhutan began in early 1960s when India started extending financial assistance. Seven Five-Year Plans of Bhutan have been completed, the first two of which were totally financed by India.
Plan-wise allocations made by the Royal Government, showing India's contribution therein, are as follows: -

Ninth Five Year Plan (2002-2007)

Two rounds of talks have been held between India and Bhutan to finalise GOI's commitment for Bhutan's 9^th Five Year Plan. In the second round of Talks held in December 2002, GOI agreed to take up the following projects in Bhutan.
The estimated cost of the project to be taken up during the 9^th Plan is about Rs./Nu. 7338 million.

Agreed List of Projects under Government of India Financing in Bhutan's 9 ^th Five Year Plan:

S.N.	Projects	Remarks
I.	Health Sector
1.	Expansion & upgradation of JDWNR Hospital	Ongoing
2.	Expansion/upgradation of Mongar Hospital	Ongoing
3.	Malaria Control Programme	Ongoing
4.	Public Health Laboratory
II.	Education
1.	10 new  Schools at new sites	Ongoing
2.	Expansion of Sherubtse College	Ongoing
3.	Infrastructure for Inst. of lang. and culture	Ongoing
4.	Construction of Youth Centre	Ongoing
III.	Roads and Bridges Sector
1.	Gyelposhing-Ngalam Rd (25km + 3 bridges)
2.	Construction of 3 bridges	Completed
3.	Pasakha Manitar Road	Ongoing
4.	Chuzom - Paro Highway( Double laning)	Ongoing
5.	Babesa- Phuentsholing Highway(Double laning)
IV.	Power
1.	Feasibility Study of 2000 MWs HPP (Punatsanchu II, Deglia in Zemgang, Kholongchu in T/Yangtse)
2.	Power transmission - Eastern Grid	Completed
3.	Power STD - Phase II ( Thimphu-Paro)	Completed
4.	Kilikhar- Lhuentshe ( Transmission Line)	Ongoing
5.	Improvement of Transmission Grid	Completed
6.	Chennari Mini Hydel Project	Completed
7.	Integrated Energy Mgmt. Master Plan	Ongoing
8.	Deothang-Rangia Transm line Project	Ongoing
9.	Tintibi- Trongsa -Bhumthang Trans line
V.	Trade and Industry
1.	Essential Oils - Quality Control Lab
2.	IT Dev Prog
3.	Improvement of Fuel Quality
4.	Industrial Investment Studies
VI.	Road Safety and Transport Authority
1.	Preparation of Transport - Master Plan	Ongoing
2.	Procurement of Traffic Safety Equipment
VII.	Civil Aviation
1.	Rapid Intervention Vehicle	Ongoing
2.	Airport Fencing	Ongoing
3.	River Protection Works	Ongoing
4.	Resurfacing/Extension  of Paro Airfield
VIII.	Culture
1.	Admn Bldg for National Library
2.	Admn Bldg for RAPA
3.	Office /Exhibition Hall for National Museum	Ongoing
IX.	Urban Development and Housing
1.	Low Income Housing	Ongoing
2.	R&D on Construction Technology
3.	Construction of International Convention Centre, Secretariat Building, RCSC, etc.,
X.	Judiciary
1.	Construction of New High Court Building
XI.	Media
1.	Construction of TV Centre	Ongoing
XII.	Human Resources Dev
1.	Scholarships etc.,
XIII.	Survey
1.	Aerial Photography	Ongoing
2.	Geophysical Survey	Ongoing
XIV.	Information Technology
1.	Dzongkhag LAN and Internet connections	Ongoing
2.	Multipurpose Telecentres in 10 Dzongkhags	Ongoing
3.	Regulatory Framework	10th Plan
4.	Electronic Signatures	10th Plan
5.	Government Intranet
XV.	Additional Projects
1.	Telecom Cellular Phone project	Completed

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