fbpx 51252-004: Financial Market Development Program (Subprogram 2) | Asian Development Bank

Bhutan: Financial Market Development Program (Subprogram 2)

Sovereign (Public) Project | 51252-004 Status: Active

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
  • Bhutan
Sector
  • Finance
 
Project Name Financial Market Development Program (Subprogram 2)
Project Number 51252-004
Country Bhutan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3992-BHU: Financial Market Development Program (Subprogram 2)
concessional ordinary capital resources lending / Asian Development Fund US$ 30.00 million
TA 6581-BHU: Strengthening the Financial Market Development Program
Financial Sector Development Partnership Special Fund US$ 250,000.00
Technical Assistance Special Fund US$ 250,000.00
TA 6581-BHU: Strengthening the Financial Market Development Program (Supplementary)
High Level Technology Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Finance / Central banking systems - Finance sector development - Housing finance - Money and capital markets

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
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
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
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
Royal Government of Bhutan
Thimphu, Bhutan
Attention: Director
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 27 Oct 2020

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 07 Sep 2021 30.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 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 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 500,000.00 0.00 0.00 0.00 0.00 1,000,000.00 07 Sep 2021 282,110.28

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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Tenders

Tender Title Type Status Posting Date Deadline
National Insurance Expert Individual - Consulting Active 07 Sep 2021 20 Sep 2021
Data Warehouse Technical Advisor Individual - Consulting Closed 11 Aug 2021 17 Aug 2021
Data Warehousing and Implementation - F3 Firm - Consulting Closed 18 Feb 2021 12 Mar 2021
Data warehousing and Analytics Policy Expert (International) Individual - Consulting Closed 16 Feb 2021 22 Feb 2021
Credit Risk and NPL Management - F1 Firm - Consulting Closed 10 Feb 2021 24 Feb 2021
International - CBDC Feasibility Study Expert Individual - Consulting Closed 09 Feb 2021 15 Feb 2021
International - Senior IFRS Expert Individual - Consulting Closed 06 Feb 2021 12 Feb 2021
International -Green Finance Expert Individual - Consulting Closed 06 Feb 2021 12 Feb 2021
International - IFRS Expert Individual - Consulting Closed 06 Feb 2021 12 Feb 2021
International - Legal Specialist Individual - Consulting Closed 04 Feb 2021 10 Feb 2021
National - Housing Specialist Individual - Consulting Closed 04 Feb 2021 17 Feb 2021
Legal Expert (National) Individual - Consulting Closed 04 Feb 2021 17 Feb 2021
Warehouse Financing Expert (International) Individual - Consulting Closed 04 Feb 2021 10 Feb 2021

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description 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.