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Chapter1-2 Vol II Western Region Dzongkhag-wise Inventory of Resources-Bhutan # Contents Page No. Executive Summary Volume I A. Country Profile and Economy B. Inventory of Country Resources C. National Investment Opportunities D. Country SWOT Analysis E. Policy Recommendations E.1 Dzongkhag Level E.2 National Level F. Projects for Further Detailed Study G. Ten Prioritized Potential Projects at National Level Volume II Dzongkhag -wise Inventory of Resources, Skills, Infrastructure, H. Comparative Advantages and Investment Opportunity Ideas 2 Western Region 4 1. Thimphu 5 2. Paro 20 3. Haa 28 4. Samtse 35 5. Chhukha 47 6. Punakha 61 7. Gasa 68 Central Region 74 8. Wangdue Phodrang 75 9. Dagana 86 10. Tsirang 95 11. Sarpang 104 12. Zhemgang 116 13. Trongsa 124 14. Bumthang 132 Eastern Region 140 15. Lhuentse 141 16. Mongar 148 17. Pemagatshel 157 18. Samdrup Jongkhar 165 19. Trashigang 174 20. Trashi Yangtse 185 Annexure A: List of Institutions/Departments 192 Annexure B: List of References 196 1 Dzongkhag-wise Inventory of Resources-Bhutan Dzongkhag -wise Inventory of Resources, Skills, Infrastructure, Comparative Advantages H and Investment Opportunity Ideas Economic growth has neither been regarded in the Bhutanese development philosophy as an end in itself nor viewed as a panacea for the holistic socio-economic progress of the country and well being of its people. However, strong and sustained economic growth in the country has actually provided a firm basis for the high levels of public expenditures made in improving human development conditions. As a result of these significant and sustained social investments, Bhutan has experienced significant improvements in the living standards of its people and the rise in the human development levels in the country. Bhutan faces numerous constraints and challenges that could hinder further advancement. Some constraints, such as the harsh mountainous terrain and the highly dispersed pattern of settlements, remain perennial difficulties that limit the delivery of social services (distance measured in hours rather than kilometers) and greatly escalate development costs. These constitute an unchanging geo-physical reality and require sustained policy attention. There is a strong need to define exploitable resources keeping in mind the unique characteristics of the nation, by systematic mapping of the resources starting at Gewog level. This mapping will identify the surplus that will accrue at the national level, which will in turn, enable identification of investment opportunity at the national level. People require a range of resources to sustain livelihood, and no single category of resource, such as land or money, is sufficient to provide sustenance for everyone. The following are the resources that people need: Human Resources: This means skills, knowledge, ability to work and good health. Social Resources: This refers to social resources like formal and informal networks or groups and established relations of trust and exchange. Natural Resources: Such as, land, water and forests. (Agriculture, horticulture and livestock output can be termed as outcome of natural resources combined with physical resources). Physical Resources: This refers to energy, transport and other infrastructure. Financial Resources: This includes loans (credit facility), financial facilities for business and spread at Gewog level. For the purposes of the Investment Opportunity Study, the main resources considered for mapping are the natural resources, with other resources like infrastructure, public utilities, power, human and financial resources considered for relevant data collection under suitable heads. In this study, therefore, all resources important for the purpose of investment study at Dzongkhag level have been mapped and consolidated to provide a national level inventory. The analysis of this resource inventory has been done to find out the exploitable potential. For the purpose of common analysis of the Dzongkhag, a SWOT analysis model was developed, and using this model, analyses followed a common pattern, thus, tending to eliminate regional distortions in the national level analysis. Along with the SWOT analysis the project ideas for investment at the Dzongkhag level are listed which emerged from the resource analysis and contacts with the local population. The ideas are grouped under the heads of Trade, Manufacturing and Services. It may be noted that the ideas listed under each Dzongkhag are project ideas and not a list of projects recommended for implementation. Interested investors should undertake detailed feasibility study before making investment. These ideas have been analyzed further in Volume I of this Study. 2 Dzongkhag-wise Inventory of Resources-Bhutan SWOT ANALYSIS MODEL DZONGKHAG LEVEL Strengths Weaknesses Competitive advantages Competitive disadvantages USP's (unique selling points) Lack of competitive strength Resources, infrastructure & people Own known vulnerabilities Marketing - reach, distribution, awareness Lack of infrastructure & research Innovative aspects Lack of continuity, supply chain robustness Location and geography Effects on core activities, distraction Processes, systems, IT, communications Cultural, attitudinal, behavioral Opportunities Threats Market developments Political effects Competitors' vulnerabilities Environmental effects Industry or lifestyle trends IT developments Technology development and innovation Geographical competitors Global influences Market demand New markets, vertical, horizontal New technologies, services, ideas Niche target markets Sustaining internal capabilities Geographical, export, import Obstacles faced New USP's Sustainable financial backing Business and product development Seasonality, weather effects Information and research Partnerships, agencies, distribution Volumes, production, economies Seasonal, weather, fashion influences 3 Dzongkhag-wise Inventory of Resources-Bhutan Western Region 1. Thimphu 2. Paro 3. Haa 4. Samtse 5. Chhukha 6. Punakha 7. Gasa 4 Dzongkhag-wise Inventory of Resources-Bhutan 1 Thimphu Thimphu Dzongkhag has an area of about 1,819 sq. km. with elevation ranging between 1,300 to over 7,300 meters above sea level. The capital city, Thimphu is the main urban centre. The Dzongkhag has one Drungkhag and 10 gewogs. Bapisa, Chang, Dagala, Genye, Kawang, Mewang and Toepisa gewogs fall directly under the Dzongkhag Administration while the three gewogs of Lingzhi, Naro and Soe are under the Lingzhi Drungkhag Administration. The population is 98,676 as per cen- sus 2005. It has a relatively good road network, especially in the lower gewogs. The gewogs in the northern part of the Dzongkhag, which have a rugged and mountainous terrain with extreme cold climate, are connected only by mule track making access and delivery of development services difficult and expensive. Most of the lower gewogs in the Dzongkhag have easy access to the national referral hospital, national research centers, central ministries, agriculture related corporations and the financial institutions. Further, extension services are available in all the gewogs and so are facilities for primary education and health care. About 60 % of the households are Figure 1.1 Thimphu Dzongkhag supplied with electricity. The lower valley gewogs in the Dzongkhag are relatively developed compared to other regions in the country with wide telecommunication and road coverage and good access to local markets. Rice, which is the staple food, is grown extensively by a majority of the people in gewogs like Bapisa, Chang, Toepisa, Kawang, Mewang and Genye. People also cultivate wheat as a winter crop. The dry land owned by the people is used for orchard plantation and vegetable cultivation for commercial purposes. The other more remote gewogs in the alpine region, namely Dagala, Soe, Naro and Lingzhi, depend on livestock farming as the main economic activity. Figure 1.2 Clock Tower -Thimphu 5 Dzongkhag-wise Inventory of Resources-Bhutan 1.1 Basic Infrastructure a. Roads 1 Apart from national highways, the Dzongkhag has a good road network. S. No. Road Type Km. 1 National Highway 111 2 Feeder Road 95 Table 1.1 (a) Roads -2005 b. Distances 2to other Dzongkhags Thimphu is well connected by road with other Dzongkhags. S. No. From To Distance (Km.) 1 Thimphu Phuentsholing 171 2 Thimphu Gelephu 258 3 Thimphu Samtse 245 4 Thimphu Chhukha 95 5 Thimphu Trashigang 551 6 Thimphu Dagana 230 7 Thimphu Tsirang 165 8 Thimphu Haa 121 9 Thimphu Mongar 460 10 Thimphu Bumthang 267 11 Thimphu Lhuentse 535 12 Thimphu Paro 54 13 Thimphu Wangdue 70 14 Thimphu Phobjikha 134 15 Thimphu Punakha 71 16 Thimphu Chortenkora 582 17 Thimphu Zhemgang 310 18 Thimphu Trashi Yangtse 582 19 Thimphu Trongsa 199 20 Thimphu Samdrup Jongkhar 731 21 Thimphu Pemagatshel 685 Table 1.1 (b) Distances to other Dzongkhags Source: 1Department of Roads, Ministry of Works & Human Settlement, Bhutan. 2Road Safety & Transport Authority, MoIC, Bhutan. 6 Dzongkhag-wise Inventory of Resources-Bhutan c. Education 1 Thimphu Dzongkhag has excellent education facilities. S. No. Type of Schools Nos. (2006) 1 Community School 6 2 Primary School 7 3 Lower Secondary School 10 4 Middle Secondary School 3 5 Higher Secondary School 2 Table 1.1 (c) Type of Schools-2006 d. Health Facilities 2 The Dzongkhag has good health facilities. S. No. Facilities Nos. (2005) 1 Hospital 4 2 BHUs 6 3 ORCs 23 Table 1.1 (d) Health Facilities-2005 e. Postal & Telecommunication Thimphu has well connected postal & telecommunication services.
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