Overview of Japan’s ODA to Bhutan 
February 2006 

１．Introduction ４．Grant Aid (GA) 

Japan’s ODA to Bhutan started in 1964, before the establishment of 
Japan-Bhutan diplomat relations, when Keiji Nishioka (referred to 5) was 
dispatched to Bhutan as a JICA agriculture expert. Since then, through the 
technical assistance and grant aid, Japan’s ODA has been contributing to 
the improvement of agricultural productivity and capacity building. It is also 
a foundation of the two countries’ cooperative relationship. This year 
marks the 20th anniversary of Japan-Bhutan diplomatic relations. 

２．Japan’s ODA Policy to Bhutan 

Japan supports Bhutan’s efforts towards the political reform and socio

　

economic development due to the Japan-Bhutan cooperative relationship. 
Japan provides its ODA for the realization of poverty alleviation as one of 
the priority areas to be pursued in Bhutan under the national development 
plan which aims the realization of the Gross National Happiness (GNH)*. 

*Gross National Happiness is the development philosophy initiated by the King of Bhutan 
where cultural, environment, spiritual well-being and happiness of the Bhutanese people 
comes ahead of monetary wealth. 

３．Priority Areas 

Priorities in Japan ODA’s to Bhutan 

(a) Rural and agricultural development, 
(b) Infrastructure development (roads, bridges, local electrification,
communication etc)
,
(c) Social development (education, health etc), 
(d) Good governance 
(Note)
Priorities in the 9th Five Year Plan of Bhutan (2002-2007)


(a) Infrastructure development (roads, power grids, communication etc), 
(b) Social service promotion (education, health etc), 
(c) Income increase, (d) Private sector development, 
(e) Good governance (decentralization) 
Japan’s Grant Aid to Bhutan started in 1981 mainly in the areas of 
infrastructure and rural development, considering the importance of 
agriculture sector in Bhutan. Examples are the projects of reconstruction 
of bridge 
s, construction of educational facilities, grass roots grant aid, assistance 
for underprivileged farmers and so on. 

５．Technical Assistance (TA) 

Even before the establishment of Japan-Bhutan diplomatic relations in
1986, Keiji Nishioka, JICA agriculture expert, introduced agricultural 
technical assistance from Japan and worked in Bhutan for 28 years until 
he passed away in the field. In 1980, in honor of his dedication, Mr.
Nishioka was awarded "Dasho," an honorable title from His Majesty the 
King of Bhutan.


Given the importance of human resource development in Bhutan, TA has 
been provided in the form of counterpart training, dispatch of the experts,
Japan Overseas Cooperation Volunteers (JOCV) and senior volunteers in
the areas of rural and agricultural development, physical infrastructure,
democratization, good governance, social services promotion, etc.
Recent examples are the support for Bhutanese national TV program to
establish the live broadcasting system, the development study for local 
electrification from 2003-2005 as one of the efforts for the national 
electrification plan in 2020.
(Note） Total number (as of the end of FY 2004) of counterparts trained in Japan: 906, 


experts dispatched: 65, JOCVs: 237, other volunteers: 37 
Japan’s ODA to Bhutan (FY 2000-2005: million yen) 

Fiscal Year Grant Aid Technical Assistance 
2000 473 542 
2001 958 490 
2002 1,181 675 
2003 1,032 775 
2004 886 1,007 
Cumulated Total 22,448 9,277 

(Note) Amount : Grant Ａid is on E/N basis, Technical Assistance is JICA’s disbursement. 


Japan’s ODA projects from FY 2003 to 2005


Integrated master plan study 
for Dzongkhag-wise 
electrification in Bhutan (TA) 
Project for supply of reconditioned OB 
van for strengthening the TV program 
production facility of rural areas (GA) 
Local network expansion and 
human development project (TA) Local governance and 
decentralization project (TA) 
Project for Improvement of Equipment 
for Road Construction & Maintenance 
（GA) 
Project for improvement of 
machinery and equipment for 
construction of rural agricultural 
road (GA) 
The project for reconstruction 
of bridge, phase 2 (GA) 
Assistance for underprivileged 
farmers (GA) 
The Project for Recycled Refuse-
Collector-Truck Aid (GA) 
The project for supply of 
two color press (GA) 
The project for reconstruction 
of bridge (GA) 
：country-wide 
Human resource development in bridge 
planning, designing, construction and 
maintenance (TA) 
The project for construction of 
educational facilities (GA) 
The project for supply of 
recycled fire engines (GA) 
Scheme: GA-Grant Aid 
TA-Technical Assistance 
Agricultural research and extension 
support project in Lhuntse and 
Mongar (TA) 
Bhutan Map 
Support to the Bhutan 
broadcasting service (TA)