Regions and Countries

	Table of Contents
p. 12 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Development IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Bhutan : III. Sector Strategies

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D. Governance Dimensions of ADB Operations

77. The Government is according high priority to the development of its administrative institution and system of governance. Therefore, while Bhutan is still in need of support to strengthen institutional capacity and the legislative framework in various areas, it is technical support that is required, not a change in attitudes or civic values. This is an important distinction. ADB appears better equipped to deal with the former than the latter. Past and ongoing Bank assistance has contributed to improvements in capacities in public sector management. A series of TAs have been provided the Ministry of Finance to enhance its capability to effectively plan and monitor the public sector resources. A TA has also been provided to the Central Statistical Organization to fill up critical data gaps and to produce better quality, comprehensive, and timely statistics. In the areas of procurement and contracting, a TA has assisted the Government to streamline rules and regulations, prepare model bidding documents, standard bid evaluation reports and contract documents, and establish a contractor registration and classification system. Further, under loan projects in the transport sector, ADB has assisted the Government to improve management of construction and maintenance of roads through promotion of local private construction companies. While these TAs have contributed to the strengthening of the Government's development management and project management capacities, continuous efforts are necessary to sustain necessary improvement.

Further institutional development and capacity building of the development administration will be an important dimension of ADB's future operations. Strengthening of the capacity to generate and utilize reliable and timely data is an important element in this. ADB is currently assisting the Government to undertake a first-ever poverty assessment and analysis in Bhutan, which will help to establish the framework for further enhancement of the necessary institutional requirement to effectively plan, monitor, and evaluate poverty interventions for the country. In addition, ADB will provide technical assistance to (i) promote effective public sector resource management; (ii) enhance capacity for project performance evaluation; (iii) improve the policy development framework for the financial sector; and (iv) strengthen the statistical systems in the country.

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