Comprehensive National Development Plan for Bhutan 2030

1. Comprehensive National Development Plan for Bhutan 2030 DPG Meeting (Bhutan) August 29, 2019

2. Project Background • Project Initiation :January 2017. • Project Completion :June 2019. CNDP 2030 was endorsed during the 5th SC meeting on April 16, 2019 and the Launch Seminar was held on June 27, 2019. • Project Support : Technical and Fund support by JICA and cost for logistics and administration shared by RGoB. • Working Arrangement : • Department of Human Settlements, MoWHS • Core Group (20) • Steering Committee (10) • Secretaries of GNHC (Chair), NLC, NEC, MoAF, MoEA, MoHCA and MoWHS • Chief Rep of JICA (Co-chair) • Director of DHS (Member Secretary) • GIS, Land Use, Rural Development, Social & Economic Analyst, Industrial Development, Agriculture, Facility Plan, Transport Plan, SEA, Training Plan, Institutional, Disaster. • JICA Technical Team (17) • GNHCS, CBS, NLCS, MoIC, MoE, MoH, NSB, TCB, DoC-MoHCA, MoEA, DoA-MoAF, DoHydrometS-MoEA, DoI-MoEA, DCSI-MoEA • DoR-MoWHS, DES-MoWHS, DHS-MoWHS, PPD-MoWHS, JICA Bhutan and Leader of Mission JICA • Local Government officials (8) • Working Group (31)

3. Social • Economic Why CNDP 2030 Bhutan • Infrastructure • Inherent • Undeveloped mining resources • Small market size • Small population size • Trade deficit • Undeveloped non-wood timber forest products • Undeveloped private sector depending on imported product • Unemployment of younger generation • Unhealthy financial balance • Non-mechanized agriculture • Weak foreign direct investment • Limited Number of international tourist • Absence of competitive export products • High dependency on revenue from hydropower • High transport cost including weak access to intl market • Low incentive to continue agriculture • Low rate of FSS • Seasonal disparity of tourism • Small agriculture land • Relatively high rate of multi-dimensional poverty in rural area • Shortage of affordable housing and encroachment on farmland • Threats of diminishing tradition and culture • Unplanned settlement and social disparity • Weak coordination for development and management • Weak taxation system • Insufficient air transport capacity • Vulnerable road design to landslides and slope failure • Misfit of human resource with market demand • Absence of comprehensive plan to conserve cultural assets • Absence of coordination of national spatial structure and land use • Conflict of land use between urbanization, agriculture and forest • Dependency on foreign human resource • Diminishing rural society • Increase of fallow land • Low GNH index of farmers • Rapid migration to urban • Monsoon climate • Mountainous country • Rural-Urban & Regional Migration. • Regional Disparity: Western regions are more developed than the Eastern regions. • Many policies, plans and strategies which often lack coordination & integration.

4. Development Alternative Alternative A AlternativeG Alternative C AlternativeD Alternative E Alternative F Alternative B • Ideas highlighted in workshops of the WG members • High and moderate economic growth should be pursued; Regional development must be achieved in Central and Eastern Regions. • Settlement area should be organized to provide the public service in the entire country. • Promotion of the small and medium enterprises should be attempted after hydropower development. • Efficient transport network must be created in the country; Tradition and culture must be conserved. Development Alternative G

5. Vision: A ‘GREENIST’ country leading sustainable development ‘to pursue the promotion of regionally balance development, the middle path and an alternative socio-economy’

6. Conservation of protected areas and forests for sustainable Livelihood Water resource management for sustainable use Land use control in urban and rural area Development of effective and comfortable transport system Creation of holistic service delivery system with ICT Creation of Resilient national spatial structure against natural disaster Creation of a human resource development hub for each region Creation of agriculture promotion area Creation of livestock promotion area Creation of a holistic tourism network Industrial estate development for regional promotion Creation of all-electric society for environmentally symbiotic habitation free from oil Development Approaches/Strategies Creation of forestry and non-wood forest product promotion area Creation of water business promotion area Creation of Capital Regional and Regional Urban Centre Characterization of regions, towns, villages and locality

7. National Spatial Structure Western Region Central-western Region Central-eastern Region Eastern Region Northern Region Science and Incubation Region Business and Commercial Region Agro-production and R&D Region Tradition and Interaction Region Highland Symbiosis Region Knowledge and Cultural Region Central Region Southern Region Economic Advanced Region Spatial Structure Summary: Composed of National Axes, Major Urban Centres and Lat/Log Regions

8. Priority Projects Selection: Highest score in each priority sector • Selection of Priority Project to Implement the CNDP Priority project Short-termproject (~2023) Proposedprojects High priority project Priority Sector 73 51 49 22 Assessment in respect to nine domains Evaluation: Competence for nationalspatial structure and other evaluation criteria group Evaluation Criteria • Project cost estimate (million BTN) • Short (~2023) 36,605 • Middle (~2028) 29,937 • Long (2029~) 7,541 • Total 74,082

9. High Priority Projects

10. Implementation Structure of CNDP • Integration into long-term visions, 12th FYP, sector policy, spatial plans and land use control system

11. TASHI DELEK!