Bhutan : Enhancing Competitiveness of High-Value Agriculture and Artisan Products Value Chains

Sovereign Project | 50069-001

The Government of Bhutan has requested the Asian Development Bank (ADB) for technical assistance (TA) to improve the competitiveness of the high-value agriculture and artisan products business subsector and its support services to achieve a higher level of competitiveness in domestic and export markets. ADB fielded consultation missions with the government and private sector and agreed with the government on the design and implementation arrangements.

Project Details

  • Project Officer
    Norbu, Tshewang
    South Asia Department
    Request for information
  • Country/Economy
    Bhutan
  • Modality
  • Sector
    • Agriculture, natural resources and rural development
Project Name Enhancing Competitiveness of High-Value Agriculture and Artisan Products Value Chains
Project Number 50069-001
Country / Economy Bhutan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9270-BHU: Enhancing Competitiveness of High-Value Agriculture and Artisan Products Value Chains
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agro-industry, marketing, and trade
Gender Effective gender mainstreaming
Description The Government of Bhutan has requested the Asian Development Bank (ADB) for technical assistance (TA) to improve the competitiveness of the high-value agriculture and artisan products business subsector and its support services to achieve a higher level of competitiveness in domestic and export markets. ADB fielded consultation missions with the government and private sector and agreed with the government on the design and implementation arrangements.
Project Rationale and Linkage to Country/Regional Strategy Given the vulnerabilities that arise from a narrow export base and market, a major challenge for Bhutan is to diversify its export markets. The Government of Bhutan''s 11th Five Year Plan aims to expand into new markets, achieve inclusive social development, and accelerate green economic development through the Rural Economy Advancement Program and the Rapid Investment in Selected Enterprises Program. These two programs form the cornerstone of the government's diversification strategy, which aims to develop agro-processing and other subsectors, small and cottage industries, and tourism links. Bhutan''s trade strategy highlights high-value niche exports that promote Brand Bhutan and indicate the product's geographic origin. Bhutan''s forestry policy also highlights comparative advantages in nutraceuticals, medicinal herbs, and natural dyes, which compliment artisan and high-value agricultural products. The One Village One Product (OVOP) initiative supported by the Queen's Project Office (QPO) has prioritized a number of Bhutanese agro-products based on market potential, grassroots community production, and potential for development and scaling up.
Impact Economic and export base broadened and diversified
Project Outcome
Description of Outcome Competitiveness of prioritized HVA and artisan MSME clusters in domestic and export markets enhanced
Progress Toward Outcome Score mapping, product prioritization, and cluster prioritization exercise has been completed, and seven geographical clusters for 10 prioritized products have been identified.
Implementation Progress
Description of Project Outputs

Business skills capacity of selected HVA and artisan MSME clusters improved

Production, value- adding, and marketing capacity of selected MSME clusters upgraded

Value chains, from production to end markets, strengthened
Status of Implementation Progress (Outputs, Activities, and Issues)

- Ten out of 128 prospective products that fall under the HVA and/or artisan product categories were selected .

- Vehicle procurement done.

- TA consultants conducted interviews with multiple value chain actors across four value chains (Peanut, Candy, Dairy & Nettle Fibre) in ten districts/clusters (Bumthang, Haa, Thimphu, Mongar, Sarpang, Lhuntse, Trashiyangtse, Pemagatshel, Chukha and Phuentsholing), based on which a data validation workshop was held, with attendance of government representatives and value chain actors. Workshop discussions included prospective market-based solutions for each value chain and packaging and branding strategy of One Gewog One Product (OGOP)' products.

- Training workshop for good hygiene practices and good manufacturing practices for peanut and candy value chain was conducted.

-All value adding machine been procured.
Geographical Location Nation-wide, Thimphu
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations in various modes have been conducted during project design to ensure concerns of stakeholders, if any, are addressed and incorporated into project design and implementation.
During Project Implementation Periodic stakeholder consultation will be undertaken during workshops (inception, mid-term and completion), consultant field visits, and quarterly supervision missions. The comprehensive monitoring and evaluation system is to be developed for the TA, which will include gender-disaggregated information on numbers of beneficiary farmers, value adding enterprises and their employment, enterprise value and volume of sales, and other measures. Knowledge will be disseminated through training, value chain coordination forums, guidance notes and documentation of lessons learned.
Business Opportunities
Consulting Services

ADB will engage consulting firm or a consortium of international and national firms in accordance with the Guidelines on the Use of Consultants (2013, as amended from time to time). The consulting services will be distributed over 36 months which will allow scheduling and specialist inputs in response to specific identified needs of stakeholders.

These will comprise: (i) an international team leader agribusiness specialist/(4.5 person-months); (ii) a national deputy team leader enterprise capacity building specialist (12 person-months). In addition consulting services amounting to 8.5 person months will be provided by a team of international and national experts to cover areas such as market linkages, product formulation, and brand development.
Procurement Not applicable
Responsible ADB Officer Norbu, Tshewang
Responsible ADB Department South Asia Department
Responsible ADB Division BHRM
Executing Agencies
Queen's Project Office
His Majesty's Secretariat
Kuengacholing
Upper-Motithang, Thimthrom
Timetable
Concept Clearance 02 Nov 2016
Fact Finding 06 Sep 2016 to 20 Sep 2016
MRM -
Approval 09 Dec 2016
Last Review Mission -
Last PDS Update 01 Dec 2020

TA 9270-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2016 17 Jan 2017 17 Jan 2017 31 Dec 2019 31 Dec 2020 01 Mar 2021
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 17 Jun 2022 471,289.01

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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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.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9270 03 Nov 2017 ERNST & YOUNG LLP (INDIA)(INDIA) in association with Handicrafts Association of Bhutan(BHUTAN) | 3rd Floor,Wing A & B, Worldmark-1, IGI A pitality District, Aerocity, New Delhi, ndia Queen's Project Office 492,805.00 —

Procurement Plan

None currently available.