Poverty alleviation through road development

Summary

The project consists of the development, construction as well as operations and maintenance of 60 km of new road between Gesarling in Dagana district and Dalbari in Sarpang district. The project also contains the upgrade of 21 km of unpaved road between Gesarling and Dagapela to the same standard as the new road in order to create a fluent connection between the new road and the existing roads network.

Location

Southern Bhutan

Sector

Infrastructure

Applicant

Gross National Happiness Commission

Competent Authority

Department of Roads

Parties Involved

Project number

ORIO09/BH/21

Total project cost / Total ORIO Grant amount

21,700,000 Euro / 10,800,000 Euro

Status project

Implementation phase

Road development is recognized as a prerequisite for socio-economic development, especially in a landlocked and mountainous country such as Bhutan. The road construction in Dagana and Sarpang districts is part of a larger road development plan that covers the connection of the Southern Bhutanese regions. At the moment, transport in Bhutan depends on a single east-west national road running through the central-northern parts of the country. The absence of another main road running through the south hinders transportation in the southern areas and inhibits the growth of social services as well as economical development, i.e. predominantly agricultural development. The larger road development plan will not only improve the accessibility and connectivity of the southern regions, but also provide better integration with existing road networks in Northern India and Bangladesh.

The proposed road will open up highly promising markets, especially West Bengal could potentially absorb increasing production of Dagana and surrounding districts. The fertile mid-hill terrain of Dagana and surrounding districts offers a huge potential for agricultural and livestock production. However, due to the lack of transportation possibilities this potential is not fulfilled. Another source of economic development are the two hydropower plants under construction in Dagana. The road will provide additional access to these plants next to the Southern/Indian connective road and vice versa make electricity a real future possibility for inhabitants of the region. Another rationale for the project is to provide better access to basic services such as health care to the people in Dagana and Western Sarpang.