National Transport Policy of Bhutan 2017 – Policy Protocol Report (Final Draft) National Transport Policy 2017 POLICY PROTOCOL REPORT National Transport Policy of POLICY PROTOCOL REPORT FINAL DRAFT Bhutan 2017 1 United Nations Development Programme June 2017 National Transport Policy of Bhutan 2017 – Policy Protocol Report (Final Draft) Disclaimer • The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. 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KPMG thus disclaims all responsibility or liability for any costs, damages, losses, liabilities, expenses incurred by such third party arising out of or in connection with the report or any part thereof. • By reading our report the reader of the report shall be deemed to have accepted the terms mentioned hereinabove. 2 National Transport Policy of Bhutan 2017 – Policy Protocol Report (Final Draft) Table of Contents Disclaimer ................................................................................................ 2 List of Figures ............................................................................................ 4 List of Tables ............................................................................................. 6 Abbreviations ............................................................................................ 7 Chapter 1: Introduction ............................................................................... 13 Chapter 2: Bhutan’s Transport 2040 Integrated Strategic Vision – A Synopsis ............ 19 Chapter 3: Roads and Road Transport ............................................................. 28 Chapter 4: Urban Transport ......................................................................... 68 Chapter 5: Civil Aviation ........................................................................... 105 Chapter 6: Regional Connectivity ................................................................. 130 Chapter 7: Governance structure ................................................................ 145 Chapter 8: Review of Legislative Framework .................................................. 162 Chapter 9: Summary of Recommendations ..................................................... 170 Annexures: ............................................................................................ 180 3 National Transport Policy of Bhutan 2017 – Policy Protocol Report (Final Draft) List of Figures Figure 1: Transport related SDGs and targets .............................................................................. 14 Figure 2: Types of roads in Bhutan ........................................................................................... 28 Figure 3: Road network growth in Bhutan (in Km) ......................................................................... 30 Figure 4: Growth in network size for different types of road since 2008 .............................................. 30 Figure 5: Blacktopped road network growth in Bhutan in last five years .............................................. 31 Figure 6: Primary Highway Network and Proposed South East –West Highway in Bhutan ........................... 32 Figure 7: Critical PNH in Bhutan based on traffic volumes handled .................................................... 34 Figure 8: Area-wise registration of inter-dzongkhag buses .............................................................. 35 Figure 9: Bus route network at major Origin Destination (OD) combinations ......................................... 37 Figure 10: Present number of region-wise registered taxis with their average age in years ....................... 38 Figure 11: Existing as well as planned industrial centers in Bhutan .................................................... 38 Figure 12: Road crash statistics in Bhutan .................................................................................. 40 Figure 13: Fatalities/ 10,000 vehicles ....................................................................................... 40 Figure 14: Traffic on Primary National Highways by 2040 ................................................................ 42 Figure 15: Location of proposed tunnels as per RSMP 2007-2027 ........................................................ 43 Figure 16: Urban centers in Bhutan by 2040 ................................................................................ 45 Figure 17: Cost of ownership forecasts for EV passenger cars ........................................................... 47 Figure 18: Bus terminal in Bhutan ............................................................................................ 50 Figure 19: Annual Average PM10 level data for Thimphu ................................................................ 51 Figure 20: Pictures of typical rural transport services .................................................................... 56 Figure 21: Pillars of Decade of Action for Road Safety ................................................................... 61 Figure 22: Rural-Urban distribution .......................................................................................... 69 Figure 23: Major urban centers of Bhutan .................................................................................. 69 Figure 24: Registered taxis in Bhutan ........................................................................................ 72 Figure 25: Motorization growth in Bhutan .................................................................................. 73 Figure 26: Vehicle registration distribution in Bhutan .................................................................... 73 Figure 27: Composition of Bhutan’s vehicle population, 2016 ........................................................... 74 Figure 28: Countries from which light vehicles are imported ........................................................... 74 Figure 29: Modal split in Thimphu, 2009 .................................................................................... 75 Figure 30: Growth in urban road network in Bhutan ...................................................................... 76 Figure 31: Bus stop signage in Thimphu ..................................................................................... 77 Figure 32: On-street parking in Thimphu .................................................................................... 78 Figure 33: Population projection for Bhutan as well as Thimphu by 2040 ............................................. 79 Figure 34: Existing, emerging and potential urban centers of Bhutan, 2040 .......................................... 80 Figure 35: Projected requirement of urban road network ............................................................... 81 Figure 36: City bus fleet size analysis, 2040 ................................................................................ 81 Figure 37: City bus fleet size analysis for Thimphu, 2040 ................................................................ 82 Figure 38: Vehicle per 1000 population in Bhutan ......................................................................... 84 Figure 39: Peak hour travel speed on major roads