Concept Project Information Document (PID) (English)

Table of Contents

• The World Bank 1
• The World Bank 2
• BASIC INFORMATION 2
• A. Basic Project Data 2
• Proposed Development Objectives 2
• PROJECT FINANCING DATA US Millions 2
• Maximizing Finance for Development 2
• Is this an MFD-Enabling Project MFD-EP 2
• Is this project Private Capital Enabling PCE 2
• SUMMARY 2
• Total Operation Cost 30.00 2
• Total Financing 30.00 2
• Financing Gap 0.00 2
• DETAILS 2
• World Bank Group Financing 2
• The World Bank 3
• B. Introduction and Context 1. Bhutan a small landlocked country in South Asia has experienced robust economic growth and sustainable 3
• 2. The Renewable Natural Resource RNR sector forms the bedrock of Bhutans sustainable development 3
• 3. However the slow transformation of the domestic labor market especially in creating gainful jobs threatens 3
• Bhutans sustainable development approach. 3
• 4. The RNR sector is the primary source of rural and female employment and is directly linked to urban businesses 3
• The World Bank 4
• 5. The 13th Five-Year Plan FYP prioritizes the economic transformation of the RNR sector to contribute to 4
• Bhutans ambitious goal of achieving a high-income status within the next decade while remaining carbon neutral. 4
• 6. Opportunities in domestic and regional markets position the RNR sector as a key driver of Bhutans economic 4
• Seizing these market opportunities to add value domestically is expected to increase employment related to 4
• The World Bank 5
• Improving RNR employment requires addressing the weak coordination and integration of different actors 5
• 9. These value chain challenges are compounded by a business climate that creates uncertainties and large 5
• 10. By strengthening the capacities of emerging value chains to supply high-quality food and forest products 5
• Bhutan can in fact cater to new niche market opportunities as they arise in the medium term and deepen current linkages. 5
• 11. By increasing RNR value addition and employment the project aligns with the World Banks holistic approach 5
• The World Bank 6
• 12. The project is the first engagement of a long-term and coordinated commitment to add value to and create 6
• C. Proposed Development Objectives 6
• D. Concept Description 13. The project will strategically focus on scaling up proven solutions in a selected number of existing value chains 6
• 14. Component 1 Strengthening Value Chains US 18 M will promote climate-smart practices foster 6
• The World Bank 7
• 15. Subcomponent 1.1 Market-led production will promote productivity enhancement climate resilience and 7
• 16. Subcomponent 1.2 Productive Partnerships PPs will link buyers seeking domestic and export market 7
• 17. Subcomponent 1.3 RNR enterprise development will support growth-oriented SMEs in expanding operations. 7
• 18. Component 2 Strengthening Institutional Capacity US9 M will help the RGoB develop strategies and 7
• 19. Subcomponent 2.1 Institutional support for VCD will improve the institutional and policy capacity of the MoAL 7
• The World Bank 8
• 20. Subcomponent 2.2 Quality Infrastructure Upgrading for Trade Facilitation will strengthen Bhutans capacity 8
• 21. Subcomponent 2.3 Upstream Service delivery will strengthen the public and private capacity to deliver 8
• 22. Component 3 Program Management Monitoring and Evaluation and Learning US3 M will finance the 8
• Policies Triggered 8
• 23. Environmental Risk Rating is Moderate. 8
• The World Bank 9
• Social Risk Rating is Low. 9
• CONTACT POINT 9
• World Bank 9
• BorrowerClientRecipient 9
• Ministry of Finance 9
• The World Bank 10
• Implementing Agencies 10
• Ministry of Agriculture and Livestock 10
• Ministry of Energy and Natural Resources 10
• FOR MORE INFORMATION CONTACT 10
• APPROVAL 10
• Approved By 10