Bhutan : Financial Market Development Program (Subprogram 2)
The Financial Market Development Program (FMDP) is a series of interventions designed to develop the financial markets of Bhutan using the modality of a Policy Based Loan (PBL) with programmatic approach. The program identified three selected areas as outputs to address identified causes to solve the core problem of efficient financial intermediation, viz improved non-banking financial sector, strengthened stability and integrity of the financial system and improved financial inclusion. The project has three subprograms (SP) with linked policy actions. Following on what has been achieved in the previous program and discussions with the government , new areas were added under a SP3 within the same FMDP. SP1 has already been delivered. We ae seeking board approval for SP2 which was outlined at the time of SP1, and the additional SP3. A revised post program engagement framework too has been included to ensure the sustainability and continued success of the policy actions.
Project Details
-
Project Officer
Gunawardhena, Manohari
South Asia Department
Request for information -
Country/Economy
Bhutan -
Sector
- Finance
| Project Name | Financial Market Development Program (Subprogram 2) | ||||||||||||||||||
| Project Number | 51252-004 | ||||||||||||||||||
| Country / Economy | Bhutan |
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| Project Status | Active | ||||||||||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP6: Strengthening governance and institutional capacity |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Partnerships |
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| Sector / Subsector | Finance / Central banking systems - Finance sector development - Housing finance - Money and capital markets |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||||||||||||
| Description | The Financial Market Development Program (FMDP) is a series of interventions designed to develop the financial markets of Bhutan using the modality of a Policy Based Loan (PBL) with programmatic approach. The program identified three selected areas as outputs to address identified causes to solve the core problem of efficient financial intermediation, viz improved non-banking financial sector, strengthened stability and integrity of the financial system and improved financial inclusion. The project has three subprograms (SP) with linked policy actions. Following on what has been achieved in the previous program and discussions with the government , new areas were added under a SP3 within the same FMDP. SP1 has already been delivered. We ae seeking board approval for SP2 which was outlined at the time of SP1, and the additional SP3. A revised post program engagement framework too has been included to ensure the sustainability and continued success of the policy actions. | ||||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The program supports key policy reforms designed to address identified deficiencies, vulnerabilities, and inadequate inclusiveness in the finance sector, while drawing lessons from previous programs of the Asian Development Bank (ADB). The program will help address the three key binding constraints on the finance sector: (i) underdeveloped nonbank financial institutions, (ii) deficient financial infrastructure, and (iii) the combined effects of low financial literacy and inadequate financial inclusion. The program aims to strengthen the finance sector's resource mobilization to improve its allocative efficiency and to enhance stability and inclusiveness at the request of the Government of Bhutan. | ||||||||||||||||||
| Impact | Macroeconomic stability achieved, economic diversity and productive capacity enhanced, and poverty eradicated, and inequality reduced |
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| Project Outcome | |
|---|---|
| Description of Outcome | Stability, depth, and inclusiveness of the finance sector enhanced |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Nonbank financial system developed Stability and integrity of the financial system strengthened Financial inclusion promoted |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | It is not expected to have any environmental or social safeguard impacts. |
| Involuntary Resettlement | The program requires no construction or rehabilitation and will not require land acquisition. Therefore, none of the program activities (including the support for the affordable housing strategy) can be demonstrated to have any direct or indirect involuntary settlement impacts, including the potential to cause loss of assets, resources, or income. |
| Indigenous Peoples | Based on the program's policy actions, none of the actions would impact any indigenous peoples communities. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Relevant stakeholders have been engaged during the preparation and design of the project and attached TA. |
| During Project Implementation | Consultation and meetings are regularly held with relevant stakeholders and consultants to ensure views of all stakeholders are considered during project implementation activities. |
| Business Opportunities | |
|---|---|
| Consulting Services | N/A |
| Procurement | N/A |
| Responsible ADB Officer | Gunawardhena, Manohari |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SARD |
| Executing Agencies |
Ministry of Finance |
| Timetable | |
|---|---|
| Concept Clearance | 11 Jul 2019 |
| Fact Finding | 18 May 2020 to 06 Jun 2020 |
| MRM | 07 Aug 2020 |
| Approval | 27 Oct 2020 |
| Last Review Mission | - |
| Last PDS Update | 14 Dec 2022 |
Loan 3992-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 27 Oct 2020 | 29 Oct 2020 | 06 Nov 2020 | 31 Dec 2020 | - | 31 Dec 2020 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 30.00 | Cumulative Contract Awards | |||
| ADB | 30.00 | 17 Dec 2022 | 30.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 17 Dec 2022 | 30.00 | 0.00 | 100% |
TA 6581-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 27 Oct 2020 | 03 Nov 2020 | 03 Nov 2020 | 31 Mar 2022 | 31 Dec 2023 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 950,000.00 | 500,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,450,000.00 | 17 Dec 2022 | 582,894.47 |
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
None currently available.
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Requests for information may also be directed to the InfoUnit.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Data Warehousing and Analytics Expert | Individual - Consulting | Closed | ||
| National Insurance Expert | Individual - Consulting | Closed | ||
| Data Warehouse Technical Advisor | Individual - Consulting | Closed | ||
| Data Warehousing and Implementation - F3 | Firm - Consulting | Closed | ||
| Data warehousing and Analytics Policy Expert (International) | Individual - Consulting | Closed | ||
| Credit Risk and NPL Management - F1 | Firm - Consulting | Closed | ||
| International - CBDC Feasibility Study Expert | Individual - Consulting | Closed | ||
| International - IFRS Expert | Individual - Consulting | Closed | ||
| International - Senior IFRS Expert | Individual - Consulting | Closed | ||
| International -Green Finance Expert | Individual - Consulting | Closed | ||
| Legal Expert (National) | Individual - Consulting | Closed | ||
| Warehouse Financing Expert (International) | Individual - Consulting | Closed | ||
| National - Housing Specialist | Individual - Consulting | Closed | ||
| International - Legal Specialist | Individual - Consulting | Closed |
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 6581 | 17 Jun 2021 | Pricewaterhousecoopers Pvt. Ltd. | 8-2-624/A/1, 4th Floor, Road No.10, Banj Hyderabad, Andhra Pradesh 500 034 India | Ministry of Finance | 140,787.00 | — |
| Capacity Development | Technical Assistance 6581 | 06 May 2021 | KPMG (SRI LANKA) | No. 32A, Sir Mohamed Macan Markar Mawath Colombo 3, Sri Lanka | Ministry of Finance | 118,600.00 | — |
Procurement Plan
None currently available.