ADB, EU commit grants support

Thimphu, February 22: The Asian Development Bank has announced the grant assistance of US$ 15 million to Bhutan for investment in promoting micro, small and medium size enterprises.

Of the total assistance, US$ 6 million will be invested to support the government for policy reforms while the rest money will be invested to lend credit, support capacity building to implement the programs and a cost sharing facility to provide technical knowledge and support to such enterprises.

US$ 5 million will be invested through Bhutan Development Finance Corporation in lending credit facilities to aspiring business entrepreneurs.

Within tenth five year plan, to being after the first parliamentary elections are held, the government plans to set up about 1,400 enterprises.

Similarly, European Commission’s (EC) has also expressed its willingness to extend about 14 million euros for investment in renewable natural resources sector, good governance and trade facilitation projects. The EU has already extended some eight million euros in this sector.

An agreement between the government and the EU was signed for the assistance on February 18, at the end of the 10th round table meeting.

EU delegation chief to the round table meeting Daniele Smadja, said after signing the agreement that it will pave the way for future cooperation between Bhutan and the EC. Bhutan News Service