Bhutan: Water Flagship Program Sector Project

Agriculture, natural resources and rural development / Irrigation - Rural water supply services

Water and other urban infrastructure and services / Urban water supply

Bhutan has the highest per capita freshwater availability in South Asia. However, the country is confronted with localized and seasonal water shortages for drinking and agricultural purposes because of its topography (steep mountains and deep valleys), insufficient infrastructure, and limited capacity for sustainable service delivery. Although 97.2% of the country's population (757,042 people) is served by basic drinking water services, access to safe and reliable (safely managed) drinking water remains a challenge for most people in rural and urban areas. Water supply is mostly intermittent, often ranging from 4 to 12 hours per day, and not reliable for 18.4% of households. Only 36.2% of Bhutan's population is served by water that is reported as free from contamination. Irrigation services coverage is limited to 32% of irrigable land, mostly designed for paddy cultivation, and a third of existing irrigation systems have scarce or inadequate water supply. As a result, people in rural and urban Bhutan, especially women and the poor, sacrifice productive time collecting water and/or coping with water-borne diseases. Farmers' income is constrained by no or limited irrigation services, which lowers agricultural productivity.

Water infrastructure development in Bhutan has not coped with the level of population growth (1.3% per annum between 2005 and 2017) and urbanization (37.8%), and is insufficient to fulfill the current service demand in rural villages, district towns, and city areas. Underdeveloped drinking water and irrigation infrastructure leaves pockets of rural population to rely on unreliable drinking water services (20.2% of rural households) and rainfed agriculture. Peri-urban areas of cities (e.g., in the national capital Thimphu) and towns (e.g. Bajo, Gedu, Tshimasham and Zhemgang) are still served by old community or rural water supply schemes (RWSS), which are poorly functional, unreliable, and do not have sufficient capacity to provide sustainable services to current and future population. These schemes are also characterized by poor drinking water quality because of insufficient treatment infrastructure and water and sanitation safety planning. Gelephu city and towns such as Mongar rely on water sources such as infiltration galleries or small streams, which are at risk from washing off during monsoons and drying up in winter. Nonrevenue water is estimated to be 30%-55% in urban centers due to aging infrastructure, and poor operation and maintenance (O&M) and demand management. Thimphu's core area distribution network is worn out with high physical losses water and almost no metering in certain areas.

The project will (i) establish and/or rehabilitate drinking water and irrigation infrastructure and make it disaster- and climate-resilient, (ii) strengthen the capacity and awareness of institutions and local communities in safe, sustainable and resilient water management and sanitation, and (iii) establish climate smart water management system

(i) Sustainable water achieved (Twelfth Five-Year Plan 2018-2023 - National Key Result Area 17)

(ii) Food self-sufficiency and nutrition security enhanced (Twelfth Five Year Plan 2018-2023 - National Key Result Area 8)

Disaster- and climate-resilient drinking water supply and irrigation infrastructure developed and/or upgraded

Capacity and awareness of institutions and local communities in safe, sustainable and climate-resilient water management and sanitation strengthened

Climate smart water management system established