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ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S PUBLIC INFRASTRUCTURE INVESTMENT MINISTRY OF FINANCE: ROYAL GOVERNMENT OF BHUTAN
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ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

Aug 23, 2020

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Page 1: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S PUBLIC INFRASTRUCTURE INVESTMENT

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 2: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

OUTLINE

1 . B H U TA N AT A G L A N CE

2 . T H E F I V E - Y EA R P L A N S A N D I T S O U T L AY S

3 . M A J OR I N F R A ST R U C T U R E I N V ES T MEN T S A N D I T S I M P L I C AT I ON S

4 . L E G A L F R A ME WOR K F O R S O C I A L A N D E N V I RO N MEN TA L C O N S I D ER AT I ON S

5 . I N ST I T U T I ON A L A R R A N G E MEN TS

6 . P O L I C Y A D OP T I ON A N D R O L E O F M I N I S T RY O F F I N A N C E

7 . C O N C LU S I ON

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 3: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

BHUTAN AT A GLANCE

Population 735,000(2018)

______________

GDP(US$ 2,351.83 million) -

2017______________

GDP Growth4.6%

(2017)______________

Literacy71.4%(2017)

________________

Area (sq.km)38,394

__________

Forest cover71%

(2018)______________

Poverty 8.2%

(2018)________

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Per capita GDP US$ 3,438.16

(2017)________

Page 4: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

FIVE-YEAR PLANS & OUTLAYS

107 202 475 1,106 4,711 9,559 15,591 39,524

70,000

146,252

213,291

316.000

1st FYP 2nd FYP3rd FYP 4th FYP 5th FYP 6th FYP 7th FYP 8th FYP 9th FYP 10thFYP

11thFYP

12thFYP

A M O U N T I N M I L L I O N ( N U ) ( 1 U S D = N U. 7 0 )

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 5: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

MAJOR AREAS OF INFRASTRUCTURE INVESTMENTS

Hydropower plants Transmission & Tele networks Surface road networks

Irrigation channels Bridges Airports and buildings

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 6: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

SOCIAL AND ENVIRONMENTAL IMPACTS

Page 7: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

LEGAL FRAMEWORK1 . C O N S T I T U T I O N O F T H E K I N G D O M O F B H U TA N

◦ calls for an adoption of environment friendly practice and policy.◦ mandates the Government maintain a minimum of 60% of Bhutan’s total land area under forest cover.◦ calls upon the Parliament to enact environmental laws to ensure sustainable use of natural resources.

2 . E N V I R O N M E N TA L A S S E S S ME N T A C T, 2 0 0 0◦ mandates the Government to take into account the environmental concerns when formulating plans and programs.◦ necessitates environment clearance as prerequisite to all development consent.

3 . E N V I R O N M E N TA L P R OT E C T I O N A C T, 2 0 0 7◦ assigns equal priority between economic development and environmental conservation.◦ authorizes the establishment of National Environment Commission and empowers it.

4 . F O R E S T A N D N AT U R E C O N S E RVAT I O N A C T O F B H U TA N , 1 9 9 5◦ for sustainable management of Government Reserved Forests, and for regulating the production, protection, transport and trade of

timber, other forest produce and wildlife.

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 8: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

INSTITUTIONAL FRAMEWORK

1 . E N V I R O N M E N T A N D C L I M AT E C H A N G E C O M M I T T E E ( PA R L I A M E N TA R Y L E V E L ) ( L E G I S L AT I O N R E L AT I N G T O E N V I R O N M E N T, L A N D A N D U R B A N D E V E L O P M E N T )

2 . T H E G R O S S N AT I O N A L H A P P I N E S S C O M M I S S I O N( P L A N N I N G A N D P O L I C I E S )

3 . T H E N AT I O N A L E N V I R O N M E N T C O M M I S S I O N( P O L I C Y A N D R E G U L AT I O N )

4 . T H E D E PA R T M E N T O F F O R E S T S A N D PA R K S E R V I C E S ( P O L I C Y A N D R E G U L AT I O N )

5 . T H E D E PA R T M E N T O F N AT I O N A L B U D G E T, M I N I S T R Y O F F I N A N C E ( R E G U L AT I O N )-

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 9: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

E N V I R O N M E N TA L C L E A R A N C E

G N H S C R E E N I N G T E S T

P E R M I T S F R O M T H E D O F P S

B U D G E T A N D R E L E A S E O F F U N D T I E D T O F U L F I L L M E N T O F S E T C O N D I T I O N S

POLICY ADOPTION & PROCEDURAL REQUIREMENTS

1 2 T H F Y P ( 2 0 1 8 - 2 0 2 3 ) Carbon neutrality, Climate change, and Disaster Resilient’ is one of the 17th

National Key Result Areas

Page 10: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

ROLE OF MINISTRY OF FINANCEMoF plays an important role in furthering the interest of social and environmental considerations in the country’s development agenda.

MoF ensures that all investments proposed by the budgetary bodies are in keeping with the national priorities.

MoF ensures that agencies obtain all necessary clearance before implementation of the project.

Established Public Infrastructure Investment Committee (PIIC) to look into prudency andquality aspects of infrastructure investment in Bhutan.

All major investment projects need the approval of PIIC.

M I N I S T R Y O F F I N A N C E : R OYA L G O V E R N M E N T O F B H U TA N

Page 11: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

CONCLUSION

We make sure that infrastructure investments are well-aligned withenvironmental and social objectives by following the middle pathstrategy to development and by placing equal importance to economicdevelopment and environmental conservations.

Page 12: ENVIRONMENTAL & SOCIAL CONSIDERATION IN BHUTAN'S … · 1. environment and climate change committee (parliamentary level) (legislation relating to environment, land and urban development)

THANK YOU