Bhutan Country Strategy Paper 2007-2013 - the European External ...

The allocation of EC aid to Bhutan in the current CSP/NIP (2002-2006) amounts to €15 million.
The highest priority has been given to renewable natural resources with 64% of the budget, and
consists of livestock production and integrated pest management. The other assistance areas are
health/traditional medicine and trade development and export diversification:
� Wang Watershed Management Project
One of the most significant contributions has been € 9.2 million for the Wang Watershed
Management Project, which started in September 2000 and has concluded implementation
by June 2007. The Project completion report has already been submitted to the European
Commission. The purpose of the project was to develop, test and institutionalise practical
watershed, land and farm management techniques and procedures within the Wang
watershed. The project target beneficiaries include 10,000 rural families of four Western
districts- Ha, Thimphu, Paro and Chukha.
� Medicinal Plants Project, Phase II
This began implementation with the mobilisation of the TA in October 2004. The project
has two components: the Medicinal Plants Conservation and Cultivation Component and
the TM Product Marketing and Commercialisation Component. With a budget of € 4.2
million, the project will help in the conservation of natural resources, alleviation of
poverty, improvements in health and creation of economic opportunity through the
sustainable development of the medicinal plants sector.
� Support to the Livestock Sector in Bhutan
This project (€ 4.6 million) aims to reduce rural poverty and enhance household and
national food security by increasing the country’s self-sufficiency in livestock products and
the contribution of livestock towards the whole farming system. The project will have
nation wide coverage aiming to support all districts where support to the Livestock
development has been minimal. Main beneficiaries of the project will include over 4000
subsistence and market oriented livestock farmers and their families throughout the
country who will adopt new livestock production systems.
� Support to the Agriculture Sector in Bhutan
(€ 5 million) In Bhutanese agriculture there is a considerable potential for increased yields
both in agricultural and high value horticultural crops (improved varieties). Much needs to
be done to improve productivity (both through labour and adapted technologies) while
avoiding heavy losses and post-harvest damages. EC funded initiatives concentrate on
efficient crop production methods at minimal economic and environmental cost. A core
element of this project is to bring Bhutanese agricultural products nearer to international
standards and to help set quality control measures within the country – both to enable
successful marketing in the future.
� Trade Capacity Development Project
The project (€ 1.2 million) aims to develop export capacity in the private sector and its
supporting infrastructure, with the International Trade Centre as implementing partner.
Moreover, it supports Bhutan’s ongoing accession process into the WTO (implementing
partner UNESCAP’s trade and investment division).
Environmental issues have been a major concern and have been taken fully into account in all
EC-funded activities. In particular, several of the EC's development initiatives include specific
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