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Farm Roads to Support Poor Farmers' Livelihoods :  Bhutan :Go to Project Summary

Farm Roads to Support Poor Farmers' Livelihoods :  Bhutan

Timetable  |  Financing Plan and Loan Utilization  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Grant Name Farm Roads to Support Poor Farmers' Livelihoods
Country Bhutan
Grant Number 9146
Project Number 43279- 01
Thematic Classification Economic growth
Gender Equity
Capacity Development
Sector/Subsector Agriculture and Natural Resources / Multisector
Gender Mainstreaming Category Gender equity theme
Description The project aims to improve the living conditions and well-being of the rural poor in Bhutan thru construction of rural roads.
Linkage to Country/Regional Strategy ADB's Country Strategy and Program for Bhutan (2006-2010) recognizes that geographic isolation is a major cause of poverty and underdevelopment in Bhutan. Half the country's population lives more than a half day's walk from the nearest motorable road. Because of the mountainous terrain, the area of land suitable for agriculture is very limited and the population is distributed in remote, scattered settlements. A well-connected national highway and road system interlinked with rural feeder and farm roads would greatly help reduce rural and regional isolation, expand rural access to social services and urban/export markets and create conditions required to promote rural industrialization and non-farm enterprises.

The Poverty Analysis Report (PAR) 2007 indicates that 98% of the poor live in rural Bhutan and that the incidence of rural poverty is about 31% as compared to only 1.7% percent in urban areas. The Tenth Five-Year Plan, 2008-2013 (Tenth Plan), therefore, gives importance to rural and agriculture sectors in its approach to poverty reduction. The Tenth Plan also aims to promote accessibility through the extensive development of farm roads and power tiller tracks in rural areas thus ensuring better access to and from markets and economic and social services, including facilitating the delivery of essential inputs to farmers. ADB's strategy includes support to the Government in improving rural access, to reduce the walking time to the nearest road and integrate remote areas and communities into the national transport network. The proposed JFPR project will support this strategy, by expanding the network of farm roads, linking rural communities to the road network being expanded under the ADB-assisted ongoing Road Network Project (RNP). The RNP includes construction of four feeder roads—mainly in Eastern Bhutan with its higher poverty incidence, but also to improve rural access in the western region. Proposed farm roads will link to these feeder roads.
Project Outcome
Outcome Progress Toward Outcome
Improved and sustainable access to economic and social services in 3 geogs Activities towards achieving outcome progressing.
Implementation Progress
Outputs and Timeframe Status of Implementation Progress (Outputs, Activities and Issues)
1. Selected farm roads developed.

2. Community management and maintenance of farm roads institutionalized.
3. Small marketing infastructure and equipment provided for the subsistence-level poor
4. Improved skills allow farmers in project area to access financial and technical services
5. Grant management, monitoring, and evaluation
Output 1: Construction of Jungley-Bongo-Phatshuma farm road in Chhukha and Phegpari-Thungkhar farm road is progressing well and will be completed as scheduled in April 2013 and July 2013, respectively. Training programs and procurement of survey equipment have been completed.
Output 2: Road user groups have been established and draft by-laws formulated. Training on implementing farm road maintenance procedures will be conducted in April 2013. Draft maintenance plan for the first year and manuals have been prepared. As approved by cabinet in 2011, all farm roads will receive Nu 10,000/km per annum for maintenance.
Output 3: Seven groups have been formed in Bongo geog in Chhuka and 2 groups in Thrimshing and Kangpara geogs in Trashigang. The Dept of Agriculture is working through its Dept of Livestock extension staff to promote formation of more groups. Assessment of community needs for small marketing infrastructure and equipment is in progress.
Output 4: Workshops linking farmers to financial service providers have been held. Further assessment is being done on community needs for seed capital to enable expansion of agricultural processing and marketing.
Output 5: Except for end-line survey (targeted for Q3 2013), all consulting services have been completed. The Grant Implementation Unit continue to provide excellent project management support.
Geographical Location Bongo (Chukha Dzongkhag), Kangpara and Trimshing (Trashigang Dzongkhag)
Safeguard Categories Safeguard Categories explained (Launches new browser window)
  Environment B
  Resettlement C
  Indigenous People C
Summary of Environmental and Social Issues Environmental safeguards are built into the Government's procedures for road development and construction, including preparation of an environment management plan and guidelines for environmentally-friendly road construction.

Farm roads will not only enable increased incomes through improved access to markets, but will also provide better access to health and other services. Beneficiaries have agreed, through a consultative process, to donate the small strips of land that may be required, in addition to government and forest land that will be provided.
Stakeholder Communication, Participation and Consultation Stakeholders have particopated in identifing and prioritizing the farm roads, which are included in the Tenth Five-Year Plan. During appraisal, stakeholder consultations were held at each of the identified project sites.
Responsible ADB Officer Nishanthi Manjula Amerasinghe
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Concept Clearance 06 Oct 2009
Fact-finding 16 Mar 2010 to 21 Mar 2010
Appraisal 08 Oct 2009 to 20 Oct 2009
Board Approval 14 Jul 2010
Grant No. Approval Signing Effectivity Original Revised Actual

Financing Plan Top Grant Utilization
  TOTAL ( Amount in US$ million)
Project Cost 3.00
ADB 0.00
Counterpart 0.00
Cofinancing 3.00
Date ADB OTHERS Net Percentage
Cumulative Contract Awards
Cumulative Disbursements
Top Status of Covenants
Category Sector Social Financial Economic Others Safe
Rating Satisfactory Satisfactory
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