Bhutan: Capital Market Development

Sovereign Project | 46300-001 Status: Active

Summary

The proposed TA will focus on capital market development which supports the government's finance sector objective of ensuring diversification of sources of growth and fostering private sector development as per its Tenth Five-Year Plan (2008-2013) and its long-term strategy framework (Bhutan 2020 Vision). Furthermore, the proposed TA is also consistent with ADB's Interim Country Partnership Strategy (2012-2013) and ADB Strategy 2020. Under the Interim CPS (2012-2013), ADB adopts good governance (by strengthening the government's financial and economic management) as one of its strategic thrust and pillars. Private sector development has also been identified as one of the key cross-cutting themes in the Interim CPS (2012-2013).

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Documents

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Project Name Capital Market Development
Project Number 46300-001
Country Bhutan
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8280-BHU: Capital Market Development
Technical Assistance Special Fund US$ 1.25 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Finance - Money and capital markets

Gender Equity and Mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy The proposed TA will focus on capital market development which supports the government's finance sector objective of ensuring diversification of sources of growth and fostering private sector development as per its Tenth Five-Year Plan (2008-2013) and its long-term strategy framework (Bhutan 2020 Vision). Furthermore, the proposed TA is also consistent with ADB's Interim Country Partnership Strategy (2012-2013) and ADB Strategy 2020. Under the Interim CPS (2012-2013), ADB adopts good governance (by strengthening the government's financial and economic management) as one of its strategic thrust and pillars. Private sector development has also been identified as one of the key cross-cutting themes in the Interim CPS (2012-2013). The Strategy 2020 includes support for capital market development as one of the ADB's core operational priorities, as it can facilitate private sector development and infrastructure development, which rely on the availability of long-term local currency funds for viable financial structures.
Impact A well-functioning financial system that supports basic capital and investment needs, as well as Bhutan's longer-term economic objectives

Project Outcome

Description of Outcome A deeper and more stable capital market
Progress Toward Outcome Completed.
Implementation Progress
Description of Project Outputs

NPPF restructured and its ICT capacity enhanced

Regulatory and supervisory framework for fund management industry established

Capital market master plan formulated

Regulatory and supervisory framework for domestic credit rating agency established

Public debt management strengthened

Capacity for proposed Strengthening Economic Management Program supported

Status of Implementation Progress (Outputs, Activities, and Issues) The contract with the consulting firm, Aries Group Ltd, and various individual consultants are now completed. In addition, several training sessions have been held. Equipment has been procured under the TA. A portion of the undisbursed balance was utilized to recruit several individual consultants to support the BHU: Strengthening Economic Management Program.
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services A team of 7 international consultants will provide a total of 17.5 person-months of consulting services. Consulting services will commence in December 2012 and conclude by December 2014. The selection of the consultant firm for 5 consultants will be based on the submission of a simplified technical proposal and effected by the standard quality- and cost-based selection process (quality cost ratio of 80:20) while 2 consultants will be engaged individually (i.e. the Bond Expert and Banking Sector Expert). The consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants by ADB and its Borrowers (2010, amended from time to time). The individual consultants will be recruited by following the Individual Consultant Selection (ICS) method. All procurement will be done in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).

Responsible Staff

Responsible ADB Officer Syed Shah
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance
Royal Government of Bhutan
Thimphu, Bhutan
Attention: Director

Timetable

Concept Clearance 02 Nov 2012
Fact Finding -
MRM -
Approval 14 Dec 2012
Last Review Mission -
Last PDS Update 22 Mar 2016

TA 8280-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2012 29 Jan 2013 29 Jan 2013 31 Dec 2015 31 Oct 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,250,000.00 0.00 0.00 0.00 0.00 0.00 1,250,000.00 14 Dec 2012 996,190.14

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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