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On May 30, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Royal Government of Bhutan in Thimphu to provide a Japanese ODA loan of up to 6,550 million yen for the Development Policy Loan for Economic Recovery and Resilience Enhancement.
The objective of the loan is to promote economic recovery and growth in Bhutan, which suffered significant adverse impacts due to COVID-19. It will do so by extending budget support to Bhutan, which in turn will be used to strengthen fiscal policies that enhance private sector-led growth, promote policies for green growth that are focused on renewable natural resources, and also promote those related to the building of a self-reliant and sustainable nation, with a good balance between rural and urban areas. This loan will thereby contribute to the fiscal, social, and economic stabilization of Bhutan, and to the achievement of SDGs (Sustainable Development Goals) Goals 2 (Zero hunger), 3 (Good health and well-being), 5 (Gender equality), 8 (Decent work and economic growth), 9 (Industry, innovation and infrastructure), 10 (Reduced inequalities), 13 (Climate action), and 15 (Life on land).
signing ceremony
Details for the loan are provided below.
1. Terms and Amount of Loan
| Project title | Amount (million yen) |
Annual interest rate (%) | Repayment period (years) |
Grace period (years) |
Procurement | |
|---|---|---|---|---|---|---|
| Project | Consulting services | |||||
| Development Policy Loan for Economic Recovery and Resilience Enhancement | 6,550 | 1.60 | – | 30 | 10 | General untied |
2. Executing Agency
Department of Macro-fiscal and Development Finance, Ministry of Finance
Address: Tashichhodzong, the Royal Government of Bhutan, Thimphu, Bhutan, Po Box: 1905
Phone: +975-2-333231, Fax: +975-2-333230
3. Planned Implementation Schedule
- 1 . Completion of loan: June 2023—when the loan is executed.
- 2 . Issuing of letters of invitation for consulting services (including detailed design work): no hiring of consultants is planned for this loan.
- 3 . Tendering of announcement of initial procurement package for international competitive bidding on project construction: no work in conjunction with bidding is planned for this loan.
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