Bhutan: Capacity Building of the National Environment Commission in Climate Change

Sovereign Project | 43021-012


The TA will support capacity building in the National Environment Commission (NEC) for managing climate change mitigation and adaptation in energy and water resources management.

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Project Name Capacity Building of the National Environment Commission in Climate Change
Project Number 43021-012
Country Bhutan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7405-BHU: Capacity Building of the National Environment Commission in Climate Change
Japan Special Fund US$ 700,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Water-based natural resources management

Energy - Energy sector development and institutional reform - Large hydropower generation - Renewable energy generation - small hydro

Transport - Transport policies and institutional development

Gender Equity and Mainstreaming No gender elements
Description The TA will support capacity building in the National Environment Commission (NEC) for managing climate change mitigation and adaptation in energy and water resources management.
Project Rationale and Linkage to Country/Regional Strategy

The main emphasis of climate change mitigation in Bhutan is the energy sector including hydropower and cleaner fuel though lighting, cooking and transport. The sector is a major aspect of the ADB country partnership strategy for Bhutan. Capacity development for environment management, particularly on the adaptation of climate change, is also one of the key cross-cutting themes of ADB's assistance for the country.

Bhutan's hydropower development is the larges driving factor of its pro-poor economic growth since power exports account for more than 40% of national revenus and 25% of GDP. The Government of Bhutan aims to develop additional 10,000 MW for trading power and clean development mechanism (CDM) benefits in line with the bilateral agreement with the Government of India. in 2008, the Sustainable Hydropower Policy was issued to promote hydropower development with both public and private sector participation. Given these initiatives, in 2008 ADB provided loans to assist Dagachhu hydropower export development through a public private partnership and CDM, with an attached TA to develop the power sector's comprehensive institutional capacity including CDM propomtion for more projects. The low-emission development paths will be in line with the ADB's Energy Policy and SARD's Climate Change Implementation Plan that highlights energy efficiency, renewable energy, and technology transfer.

ADB supported capacity development for improving sectoral environmental guidelines and compliance of NEC through three TAs consecutively implemented since the 1990s. To recognize climate change's sensitivity to environment, the Global Environment Facility (GEF) through the United Nations Developent Programme (UNDP) helped NEC prepare national plans (i.e., NAPA and the National Disaster Risk Managemement Framework) in 2006. The specific priorities for addressing adaptation to climate change are included in the Government's 10th Five Year Plan (2008-2013). Particularly, potential adverse impaces on hydrological flows for power plants and irrigation will be sensitive to the national energy and food security and inclusive economic growth. They will also address threats of flood hazards including GLOF. Since the Water Policy was approved in 2007, the Government has been formulating the Water Act to promote the integrated water management in a sustainable manner. It is crucial for NEC to mainstream climate change adaptation in environment management and to assess the sustainable water resource usage and water-related disaster risks on sector and project levels.

Impact Functioning and sustainable climate change mitigation and adaptation system for energy and water resources
Project Outcome
Description of Outcome Enhanced capacity of NEC to prioritize climate change risks in energy and water resources development
Progress Toward Outcome Institutional capacity of NEC to manage climate change impacts on hydropower, water and transport sector in terms of mitigation and adaptation were significantly enhanced.
Implementation Progress
Description of Project Outputs

NEC's institutional development strategy and organizational framework approved to manage climate change mitigation and adaptation activities

NEC's operational toolkits adapted for environmental assessments and CDM appraisal

NEC's operational toolkits adapted for IWRM, taking climate proofing into consideration

NEC's climate change modeling (CCM) system developed and the national climate change road map formulated with a time-bound action plan and financing avenue

Workshops for building awareness and consensus of strategies for sustainable energy and water resources development and in-house training programs for managing the toolkits

Status of Implementation Progress (Outputs, Activities, and Issues) TA activities completed in 20 Dec 2011.
Geographical Location Bhutan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services The TA will require 19 person-months of consulting services from international experts. The consultant team will cover major areas of expertise: (i) climate change management, (ii) climate change economics, (iii) environment management, and (iv) water resources management. The team leader will be an international expert in climate change management. The study will be implemented over 18 months, from April 2010 to September 2011. A consulting firm or consortium of firms will be engaged by ADB through its quality- and cost-based selection procedures in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers (2001, as amended from time to time).
Responsible ADB Officer Zhang Lei
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Natl Environment Commission Secretariat (NECS)
Post Box 446
Concept Clearance 31 Jul 2009
Fact Finding 24 Aug 2009 to 07 Sep 2009
Approval 07 Dec 2009
Last Review Mission -
PDS Creation Date 17 Aug 2009
Last PDS Update 28 Sep 2012

TA 7405-BHU

Approval Signing Date Effectivity Date Closing
Original Revised Actual
07 Dec 2009 31 Dec 2009 31 Dec 2009 30 Sep 2011 20 Dec 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 50,000.00 0.00 0.00 0.00 750,000.00 07 Dec 2009 626,878.45

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Evaluation Documents

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