AGP Executive Report

Solar Push for Energy Security: The ADB has approved a US$160 million loan to expand Bhutan’s solar capacity by 310MW under the Solar Farm Expansion Project, including 120MW Wobthang and 40MW Pedseling in Bumthang by Druk Green Power Corporation, plus a 150MW Dramthang project in Lhuentse via Bhutan’s first private-majority energy PPP with Tata Power Renewable Energy; Bhutan Power Corporation will also build 46km of transmission lines to connect the new plants. Renewables on the Ground: Construction has begun on a 100MW solar project at Tashithang Gewog in Samdrup Jongkhar, expected to help cover dry-season winter shortfalls, with phased commissioning starting mid-next year. Dry Monsoon Worries: A regional forecast for the Hindu Kush Himalaya points to a drier monsoon with higher temperatures, raising fears for farmers and water stress, even as experts note extreme rain bursts can still trigger floods and landslides. Sports Spotlight: Bhutan hosted the 16th South Asian Bodybuilding and Fitness Championships, where Afghanistan’s athletes won two more bronze medals, adding to their earlier haul. Culture and Community: A report on Bhutanese household ritual spending says families spend nearly Nu 28,000 a year on rituals on average, with higher-income households spending more in absolute terms.

Renewables Push for Bhutan: The Asian Development Bank approved a $160 million loan for Bhutan’s Solar Farm Expansion Project, targeting at least 310 MW of new solar capacity and winter reliability as hydropower output dips. Energy Project Starts in Samdrup Jongkhar: Construction has begun on a 100MW solar project in Tashithang Gewog, with phased commissioning expected by 2027 and 2028. Tourism Gateway Upgrade: Bhutan’s Phuentsholing Thromde Enhancement Programme will fund destination branding and a digital tourism platform to reposition the border town as more than a transit stop. Hospitality Skills Certified: Hotel workers in Phuentshogling are being assessed and certified through a Recognition of Prior Learning pilot to standardise service quality. Household Ritual Spending: A National Statistics Bureau report says Bhutanese households spend nearly Nu 28,000 a year on rituals, with Wangdue and Punakha highest. Integrity and Trust Concerns: Bhutan’s integrity score improved, but favouritism and a trust deficit remain flagged. Regional Tech Cooperation: Bhutan joined a South Asia telecom regulators meeting to strengthen policy coordination and regulatory cooperation.

Renewables Boost: The Asian Development Bank approved a $160 million loan for Bhutan’s Solar Farm Expansion Project, targeting at least 310 MW of new solar capacity and support for private-sector participation, with systems planned in Bumthang and Lhuentse. Tourism Gateway Push: Bhutan’s government has signed a contract to brand and digitise Phuentsholing under the Phuentsholing Thromde Enhancement Programme, aiming to shift the border town from a transit stop to a destination with a dedicated tourism website. Cross-Border Payments Upgrade: India’s NPCI has partnered with HSBC India and J.P. Morgan Payments to enable real-time FX settlement for overseas UPI transactions, improving transparency for travellers using UPI in countries including Bhutan. Hospitality Skills Drive: Bhutan is assessing and certifying hotel workers in Phuentshogling through Recognition of Prior Learning, helping standardise service quality across the hospitality sector. Digital Census Prep: Bhutan’s Population and Housing Census 2027 is moving fully digital, using Computer-Assisted Personal Interviewing to improve data quality and speed. Wildlife Warning: A new study highlights an unrecognised Asian pangolin species in Nepal and northern India, underlining how little is known—and why that matters for stopping poaching.

Bhutan Digital Census Prep: Bhutan’s Population and Housing Census 2027 is set to be the country’s first fully digital census, moving to Computer-Assisted Personal Interviewing (CAPI) with NSB-led planning and UNFPA support. Hospitality Skills Boost: In Phuentshogling, hotel workers are being assessed and certified under Recognition of Prior Learning to raise service standards, with certificates linked to the Bhutan Qualifications Framework. ICT Hiring: Bhutan Broadcasting Service (BBS) re-announced vacancies for two Assistant ICT Officer posts, with applications due by 20 July. Regional Telecom Cooperation: Pakistan’s PTA hosted a South Asian telecom regulators meeting including Bhutan, aiming to strengthen policy coordination under SATRC’s action plan. Climate Research Graduates: The first batch of Bhutanese PhD scholars in Climate Studies graduated from CNR, with theses on climate impacts on food systems and climate-resilient farming. Integrity and Governance Watch: ACC flagged concerns about weakening control systems and favouritism even as integrity performance remains strong. Cross-border Payments: NPCI partnerships with HSBC India and J.P. Morgan Payments aim to enable real-time FX settlement for overseas UPI transactions, including Bhutan. Wildlife Conservation: A new study highlights a hidden Asian pangolin species in Nepal and northern India, underscoring fresh angles for anti-poaching efforts.

Hospitality Skills Boost: Hotel workers in Phuentshogling are being assessed and certified through a Recognition of Prior Learning pilot, aiming to raise service standards across housekeeping, cooking, front office and food & beverage. Digital Census Planning: Bhutan’s Population and Housing Census 2027 is set to be the country’s first fully digital census, using Computer-Assisted Personal Interviewing (CAPI) to improve data quality and speed. Climate Capacity Grows: The first batch of Bhutanese PhD graduates in Climate Studies has completed three-year programmes at the College of Natural Resources, with research spanning climate impacts on food systems and climate-resilient farming. Telecom Cooperation: Bhutan is among regulators attending a South Asian telecom policy meeting in Islamabad, hosted under SATRC’s Action Plan Phase X to strengthen regional regulatory coordination. Jobs & Skills: Bhutan Broadcasting Service (BBS) has re-announced vacancies for two Assistant ICT Officer posts, with applications due 20 July. Tourism & Policy Links: Japan shifts its Bhutan development cooperation toward a human security approach, prioritising resilience, rural-urban balance and livelihoods. Heritage for Income: Bhutan launched its first four GI products—Bumthang Yathra, Bumthang Honey, Dhur-Tandingang Gonthok and Merak-Sakteng Zoetey—to protect authenticity and support producer earnings. Regional Payments News: UPI is expanding globally, with real-time FX settlement partnerships announced for overseas UPI transactions and UPI now live in more countries including Bhutan.

Entrepreneurship Push: Bhutan is rolling out a National Entrepreneurship Strategy 2026 to help startups scale, tackle inactive licences and improve access to finance, markets and support services. Governance & Integrity: Bhutan’s National Integrity Assessment 2025 shows a strong overall score, but ACC flags lingering favouritism and a trust deficit. Health Education: KGUMSB plans a new MBBS campus at Gidakom to expand medical training as Bhutan prepares its first home-trained doctors in 2028. Disaster Readiness: A Thimphu earthquake simulation found gaps in coordination, communications and emergency logistics, urging faster activation and better equipment. Local Politics: Women make up about 40% of Thromde election candidates, but leadership roles remain male-dominated. Renewables & Cost of Living: Bhutan starts renewable energy tax exemptions to attract investment, while GST relief expands to more essential household items. Culture & Diplomacy: Bhutan has begun construction of its Nu.160m temple complex in Lumbini, strengthening Buddhist ties with Nepal. Regional Link: India revised fuel export duties from July 1, raising petrol levy while cutting diesel and ATF; exemptions now include Mauritius and Maldives.

National Integrity: Bhutan’s National Integrity Assessment 2025 shows a strong overall score of 8.16/10 (second-highest since 2009), but the ACC flags lingering concerns over favouritism, ethical leadership and a trust deficit. Health Education: KGUMSB is planning a new MBBS campus at Gidakom to expand medical training as Bhutan prepares to graduate its first home-trained doctors in 2028, though student accommodation remains a bottleneck. Disaster Preparedness: A Thimphu earthquake simulation found gaps in emergency coordination, communications, medical readiness and logistics, with delays in activating response systems and unclear reporting lines. Local Governance: Women make up about 40% of Thromde Tshogpa and Thrompon candidates in Thimphu and Phuentshogling, but only one woman is running for Thrompon, leaving Phuentshogling’s top race male-only. Economy & Policy: Bhutan has launched tax exemptions to accelerate renewable energy, while GST relief has cut prices on a wider list of essentials for households. Heritage & Tourism: Bhutan began construction of its Nu.160 million temple complex in Lumbini, and also launched its first four Geographical Indication products to protect heritage and boost rural incomes. Sports: Thimphu hosts the 16th South Asian Bodybuilding and Physique Sports Championship with Bhutan fielding its biggest-ever team. Community News: Tsirang farmers in Thakorling Chiwog received a dedicated, disability-friendly vegetable market facility along the Tsirang-Sarpang highway.

Lumbini Temple Push: Bhutan has started construction of a Nu.160 million temple complex in Lumbini, with a ground-breaking ceremony at the Sacred Garden attended by Bhutan and Nepal officials and monks. The 80m x 80m site sits in the Western Monastic Zone beside key heritage landmarks, aiming to deepen cultural and diplomatic ties and boost the global Buddhist pilgrimage draw. Integrity Watch: Bhutan’s National Integrity Assessment 2025 shows a strong overall score of 8.16/10, but the ACC flags rising concerns over favouritism and a trust deficit, with corruption perceptions widening even as direct corruption experiences stay relatively low. Health Education: KGUMSB plans a new MBBS campus at Gidakom to expand medical training as Bhutan prepares to graduate its first home-trained doctors in 2028, though student accommodation remains a constraint. Disaster Preparedness: A full-scale Thimphu earthquake simulation found gaps in coordination, communications, medical readiness, traffic control and emergency logistics—prompting calls to act before a major quake hits. Local Governance: Women make up about 40% of candidates for Thromde and Tshogpa posts, but only one woman is running for Thrompon, showing a leadership gap. Renewables & Cost of Living: Bhutan began implementing renewable energy tax exemptions to cut project costs, and GST relief expanded to more everyday essentials and disability-related items. Flooding in Phuentshogling: Heavy rain displaced 70+ families after flooding hit the NHDCL colony and the temporary settlement, with evacuations and damage reported but no casualties. Sports: Paro FC reclaimed the top spot in the Bhutan Premier League after a 2-0 win over Tsirang FC.

Renewables push: Bhutan’s Ministry of Finance has started implementing the Renewable Energy Tax Exemption Act 2026, offering time-bound tax relief on customs duty, excise tax and GST for approved renewable projects to help cut development costs and speed up clean energy growth. Cost of living relief: After the GST Amendment Act 2026, GST-registered businesses have been told to stop charging the 5% GST on a wider list of essentials, including key kitchen staples and disability-related welfare items, with the relief applied retroactively. Tourism investment drive: Gelephu Mindfulness City (GMC) unveiled a tourism investment programme with a portfolio of 20 attractions and 20 activities, inviting private investors to shape a high-value, sustainable destination. Disaster readiness: A major earthquake simulation in Thimphu found gaps in coordination, communication, manpower and rescue equipment, even as responders showed commitment. Integrity watch: Bhutan’s National Integrity Assessment 2025 shows strong overall integrity, but the ACC warns of weakening internal control systems and a widening perception gap on corruption, including “low-visibility” risks like favouritism and conflicts of interest. Floods in Phuentshogling: Heavy rain flooded parts of Phuentshogling, displacing over 70 families and damaging homes and infrastructure, with no casualties reported. Sports: Defending champions Paro FC reclaimed the top spot in the BOB Bhutan Premier League after a 2-0 win over Tsirang FC. Regional spotlight: Thimphu will host the 16th South Asian Bodybuilding and Physique Sports Championship, with Bhutan fielding its largest-ever team.

Anti-Corruption Focus: Bhutan’s National Integrity Assessment 2025 warns corruption is increasingly “low-visibility” — favouritism, nepotism, conflicts of interest and informal influence — often showing up as “just a little help” during transfers, certificates and procurement. Public Health Readiness: Thimphu’s Royal Centre for Infectious Diseases is set to begin operations next month, with an 80-bed capacity and negative-pressure isolation for highly infectious cases, plus research and training support. Financial Regulation: The RMA has paused new insurance licence applications for six months after Parliament amended the Financial Services Act to allow one insurer to offer both life and general insurance, with interest already from about seven applicants. Regional Water Alert: The Teesta has surged again after heavy rain and upstream flow, crossing danger levels and prompting red alerts in parts of India and Bangladesh, with sluice gates kept open and residents urged to stay vigilant. Bhutan in Lumbini: Bhutan has started construction of a Bhutan Temple Complex in Lumbini, funded by the Royal Government at about Nu 160 million, aiming for completion in 2028. Sports & Culture: Afghanistan’s bodybuilding team has travelled to Thimphu for the 16th South Asian Bodybuilding and Fitness Championship.

Bhutan Health: Bhutan’s Royal Centre for Infectious Diseases in Thimphu is ready to start operations next month, with an 80-bed capacity (100 in emergencies) and the country’s first negative-pressure isolation unit, after a Nu 2.2bn JICA-supported build. Bhutan-India Diplomacy: A US ambassador-to-India outreach to India’s incoming high commissioner in Bangladesh sparked debate over whether such “third-country” contacts should route through Delhi. Bhutan in the Region: Bhutan has begun construction of a Bhutan Temple Complex in Lumbini, Nepal, with a Nu 160m government-funded dzong-style project expected to take about two years. Bhutan Economy & Regulation: Bhutan’s RMA has paused new insurance company licence applications for six months as it reviews the framework after a law change allowing one insurer to offer both life and general coverage. South Asia Flood Watch: The Teesta River has surged above danger levels again after heavy rain and upstream runoff, with red alerts reported in both Bangladesh and India. International Spotlight: PM Modi made history by becoming the first Indian prime minister to address Seychelles’ National Assembly, marking 50 years of independence and reaffirming “old friends” ties.

Lumbini Bhutan ties: Bhutan and Nepal have begun construction of a Bhutanese temple complex in Lumbini, with a ground-breaking ceremony marking an 80-by-80 metre project in the Sacred Garden, funded by the Royal Government of Bhutan and designed to preserve Buddhist teachings and strengthen cultural and diplomatic links. Digital and education cooperation: India and Bhutan discussed deeper collaboration in education, skills and digital learning, including teacher training, vocational skilling and digital education with AI. Thimphu local governance: Thimphu’s next mayoral race is set for July 15, with candidates pitching competing visions for how the capital should be run and serviced. Inclusive education in Bhutan: Arunachal Pradesh professors attended the IASE conference at Royal Thimphu College, highlighting inclusive education practices and Bhutan’s approach to inclusion. Regional policy watch: Bhutan’s digital transition faces renewed scrutiny after viral school bullying videos sparked concern, putting online safety and accountability back in focus.

World Bank Aid for Bangladesh: The World Bank approved $1.1 billion in emergency financing for Bangladesh to protect food security and livelihoods amid rising fertiliser and fuel prices linked to the Middle East conflict. Bhutan-Nepal Cultural Ties: Bhutan has begun construction of a Bhutanese monastery in Lumbini, with foundation rituals led by Bhutan’s home and religious leaders, aiming to strengthen cultural and diplomatic links. Thimphu Local Governance: Thimphu’s next mayoral race is set for July 15, 2026, with candidates pitching different visions for how the capital should be run. Transport Reform in India: Union minister Amit Shah launched Bharat Taxi, a driver-owned cooperative ride-hailing platform in Gujarat, accusing private cab aggregators of unfair competition. Bhutan Integrity Watch: Bhutan’s National Integrity Assessment 2025 says bribery is rare, but concerns are shifting toward favouritism and nepotism. GST Relief for Essentials: Bhutan has expanded GST exemptions on key items like cooking oils, rice, sanitary napkins and wheelchairs, effective retroactively from May 18. Cancer Survivors in Bhutan: Thimphu marked Cancer Survivors Month, with survivors sharing how community support helped them recover. Digital Life Debate: A tech commentary highlights growing “AI fatigue” and why some users prefer email aliases to protect their personal data.

India-Bhutan Economic Stimulus: India handed over the fifth ₹250 crore tranche to Bhutan’s Economic Stimulus Programme, completing the ₹1,250 crore disbursement under the 13th Five Year Plan, with officials citing benefits for farmers, students, youth, SMEs, startups, and tourism. Digital Safety in Schools: Viral bullying videos from Thimphu’s Lungtenzampa Middle Secondary School have sparked police and education probes, renewed calls for stronger anti-bullying rules, and warnings against sharing footage online. Public Integrity Watch: Bhutan’s National Integrity Assessment 2025 says bribery remains rare, but concerns are shifting toward favouritism and nepotism, with the country’s integrity score rising to 8.16. GST Relief on Essentials: Bhutan’s GST Amendment Act 2026 expands exemptions on everyday items, including cooking oils, rice categories, sanitary napkins, salt, and wheelchairs—retroactive to 18 May. Education Ties: India’s education minister met Bhutan’s counterpart to discuss deeper cooperation in teacher training, vocational skills, digital learning, and AI. Cancer Survivors’ Support: Thimphu marked Cancer Survivors Month, with survivors highlighting how family and community support helped them rebuild life after treatment.

Digital Safety in Schools: Viral bullying videos from Lungtenzampa Middle Secondary School in Thimphu have sparked public outrage and police/education probes, with students suspended and footage taken down as authorities warn against further sharing and push for stronger anti-bullying and digital literacy safeguards. Integrity Watch: Bhutan’s National Integrity Assessment 2025 says bribery is still rare and services feel transparent, but concerns are rising around favouritism and nepotism, with nearly 40% of respondents saying corruption has increased over five years. GST Relief for Essentials: Bhutan has started exempting GST on an expanded list of everyday items, including cooking oils, multiple rice categories, sanitary napkins, salt and automatic wheelchairs, with retroactive effect from 18 May. India–Bhutan Economic Support: India has handed over the fifth tranche of Rs 250 crore to complete India’s Rs 1,250 crore Economic Stimulus Programme for Bhutan, with officials citing benefits for farmers, students, youth, SMEs and tourism. Health and Recovery: Cancer Survivors Month in Thimphu highlighted how family and community support helps people rebuild lives after treatment, with HRH Ashi Kesang Wangmo Wangchuck attending. Disaster Preparedness: A full-scale Thimphu earthquake simulation found gaps in coordination, communications and emergency readiness, including delays, reporting issues and shortages at the National Referral Hospital. Memorial Chorten Upgrade: Thimphu Thromde is moving ahead with a stream corridor revitalisation plan under disaster-resilient infrastructure, aiming for greener public spaces, safer pedestrian access and improved drainage.

Bhutan-India Economic Aid: India has handed Bhutan the fifth tranche of Rs 250 crore under the Economic Stimulus Programme, bringing total support to Rs 1,250 crore, with officials citing benefits for farmers, students, youth, SMEs, start-ups, and tourism. Digital Life & Safety: Viral bullying videos from Thimphu’s Lungtenzampa Middle Secondary School have sparked police and education probes, with students suspended and footage removed as Bhutan debates youth behaviour and digital responsibility. Disaster Readiness: A full-scale Thimphu earthquake simulation found gaps in coordination, communication, and emergency preparedness, including delays in activation, weak reporting lines, and shortages at the National Referral Hospital. Urban Resilience Upgrade: Thimphu Thromde is set to revitalise the Memorial Chorten stream corridor under a disaster-resilient infrastructure project, aiming for greener public spaces, safer pedestrian access, and flood-risk mitigation. GST Relief: Bhutan’s National Assembly passed a GST Amendment Bill expanding GST exemptions for essential goods from 9 to 31 items, including multiple rice and cooking oil categories, to ease cost-of-living pressures. Digital Transformation: Bhutan’s State of the Nation report says the digital economy is growing jobs and income, highlighting progress on the National Digital Identity system and plans to expand digital growth in 2026–27.