AGP Executive Report

Hydropower Deal: JSW Energy and Bhutan’s DGPC have signed a shareholders’ agreement to jointly develop the 920MW Punatsangchhu-III project, with DGPC holding 51% and JSW Neo Energy 49%, and the detailed project report now under way. Local Governance & Planning: Thimphu district’s 2026-27 capital budget of about Nu 706M will be allocated to gewogs using a mix of poverty, climate disaster risk, GNH indicators and even transport needs—not just population. Trade & Economy: Bhutan’s trade deficit widened to nearly Nu 24bn in Q2 as imports hit about Nu 43bn, driven by fuel, food, smartphones, vehicles and networking equipment. Healthcare Access: Peritoneal dialysis has been launched in Thimphu, giving kidney patients a home-based option that cuts travel time and cost versus hospital haemodialysis. Royal Solidarity: King Jigme Khesar expressed condolences to Assam flood victims and linked the rising disaster toll to shared climate vulnerability. Eurovision Asia: Bhutan’s Nyendra has already selected “The Angel,” while Mongolia, South Korea and the Philippines have confirmed their Eurovision Asia participation and national acts. Construction Update: Haa Dzongkhag lifted its moratorium on construction activities in the Haa Throm boundary after revising its local area plan and development rules.

Assam Flood Solidarity: Bhutan’s King Jigme Khesar Namgyel Wangchuk sent condolences to Assam Chief Minister Himanta Biswa Sarma after deadly floods, pledging full solidarity and linking the rising disaster toll to shared climate risks. Hydropower Deal: JSW Energy and Bhutan’s Druk Green Power Corporation (DGPC) signed a shareholders’ agreement to jointly develop the 920MW Punatsangchhu-III project, with DGPC holding 51% and JSW Neo Energy 49%. Tourism Forum in Malaysia: PATA announced the confirmed line-up for the PTM Knowledge Forum 2026 in Sarawak, bringing together tourism leaders to discuss partnerships and innovation. Defence Cooperation: India and Indonesia held the 12th Army-to-Army Staff Talks in Lucknow, focusing on deeper military ties and joint training. Local Planning Update: Haa Dzongkhag lifted its moratorium on construction activities within the Haa Throm boundary, effective immediately. Health Access: Bhutan launched home-based peritoneal dialysis in the capital, offering a lower-cost alternative for kidney patients. Mental Health Expansion: PEMA expanded mental health and protection services nationwide, including maternal screening and school-based wellbeing support. Wildlife Conservation: Ladakh’s Black-necked Crane Festival highlighted threats to the birds, including habitat loss and free-ranging dogs. Bhutan in Culture: Thukten Nyendra won “Rhythm of Bhutan” and will represent Bhutan at Eurovision Song Contest Asia.

Hydropower Deal: JSW Energy and Bhutan’s DGPC have signed a shareholders’ agreement to jointly develop the 920MW Punatsangchhu-III hydro project in Wangdue Phodrang, with DGPC holding 51% and JSW Neo 49%; the detailed project report is now under way. Local Governance: Tsirang Dzongkhag Tshogdu has called for expanding and improving the district crematorium, citing space limits, visitor/vehicle inconvenience, and traffic risks. Health Access: Bhutan launched home-based peritoneal dialysis (PD) in the capital, offering kidney patients a cheaper, more convenient alternative to hospital haemodialysis. Mental Health & Protection: PEMA says it has expanded mental health and protection services nationwide, including helpline support, school and community programmes, and maternal mental health screening across all 20 dzongkhags. Economy & Policy: The Finance Ministry clarified that interest earned on fixed deposits before Jan 1, 2026 stays tax-exempt even if credited later. People & Culture: Thukten Nyendra has won “Rhythm of Bhutan” and will represent Bhutan at Eurovision Song Contest Asia. Environment: In Ladakh, over 2,950 free-ranging dogs were sterilised to protect black-necked cranes and boost wildlife tourism livelihoods.

Hydropower Deal: JSW Energy and Bhutan’s Druk Green Power Corporation (DGPC) have signed a shareholders’ agreement to jointly develop the 920 MW Punatsangchhu-III Hydroelectric Project in Wangdue Phodrang, with DGPC holding 51% and JSW Neo 49%; the detailed project report is now being prepared. Health Access: Bhutan has launched home-based peritoneal dialysis for kidney patients, offering a lower-cost alternative to hospital haemodialysis and aiming to reduce travel burdens for the country’s 450+ dialysis patients. Local Development: Haa Dzongkhag has lifted its moratorium on construction activities in the Haa Throm boundary, restarting approvals under revised local planning rules. Mental Health Services: The PEMA Secretariat has expanded mental health and protection services nationwide, including maternal screening, teacher training, and adolescent wellbeing screening. Economy & Jobs: A Finance Ministry report says state-owned enterprises drive 23.06% of Bhutan’s GDP but employ only 3.55% of the workforce, reflecting their focus on capital-heavy sectors like hydropower and telecom. Tourism Spotlight: Bhutan’s international arrivals surged in July 2026, nearly doubling year-on-year to 14,913 visitors, with Indians still the largest share. Culture & Talent: Thukten Nyendra has won “Rhythm of Bhutan” and will represent Bhutan at the first Eurovision Song Contest Asia.

Hydropower Deal: JSW Energy’s arm JSW Neo signed an agreement with Bhutan’s DGPC to jointly develop the 920 MW Punatsangchhu-III project in Wangdue, with DGPC holding 51% and JSW Neo 49%, and DPR work now underway. Mental Health Expansion: The PEMA has widened mental health and protection services nationwide, adding maternal mental health screening in all 20 dzongkhags, training teachers, and rolling out school and community wellbeing support. Digital Governance Dialogue: Bhutan held a high-level dialogue on inclusive digital transformation and responsible AI governance as more public services and payments move online. Economy Snapshot: A Finance Ministry report says SOEs generated 23.06% of Bhutan’s GDP in 2023 but employed only 3.55% of the workforce, underscoring their weight in capital-heavy sectors. Tourism Boost: Bhutan’s July international arrivals nearly doubled year-on-year to 14,913, with Indians still the largest share. Culture & Youth: Thukten Nyendra won “Rhythm of Bhutan” and will represent Bhutan at Eurovision Song Contest Asia in Bangkok. Cross-Border Retail: A study finds most Phuentsholing residents shop in Jaigaon, driven mainly by lower prices and choice.

Diplomacy Watch: India urged the international community to hold Pakistan accountable for alleged human rights violations in Pakistan-occupied Jammu and Kashmir, while also condemning the defacement of the Indian Embassy in Slovenia. Tourism Momentum: Bhutan’s July tourism rebound stayed strong, with 14,913 international arrivals—nearly double the 7,513 recorded in July 2025—driven largely by Indian visitors. Local Governance & Services: The Ministry of Education says school dropouts and non-enrolment are linked to poverty, migration, household duties, distance to schools and learning difficulties, and says it has studied the issue in detail. Food Safety: BFDA tightened mango import controls after calcium carbide was detected in some consignments, with lab testing expanded to more samples. Economy & Energy: Bhutan’s economy grew 8.52% in 2025, powered by Punatsangchhu-II hydropower, plus gains in finance, construction and ICT. Finance Oversight: RMA is reviewing Bhutan National Bank after reports of double deductions of annual maintenance charges affecting over 54,000 account holders. EV Policy: Bhutan will assess the EV market before considering new incentives, even as EVs keep favourable tax treatment. Natural Heritage: Bhutan’s biodiversity link to the region continues as a rare Himalayan bee species was recorded in India for the first time, previously known from Bhutan and China. Culture & Youth: Thukten Nyendra won “Rhythm of Bhutan 2026” and will represent Bhutan at Eurovision Asia in Bangkok in November.

Royal Visit & Diplomacy: Queen Jetsun Pema welcomed Japan’s Princess Akiko at Tashichhodzong, marking 40 years of Bhutan–Japan ties, including a joint wagashi sweet-making engagement and prayers for earthquake victims. Food Safety: BFDA tightened mango import rules after calcium carbide was detected in some consignments; lab testing found two positives in an initial round and more follow-up checks are underway. Education: MoESD is stepping up action against school dropouts and non-enrolment, citing poverty, migration, distance, and learning difficulties, with a 2018 study guiding the response. EV Policy: Bhutan says EVs keep major tax advantages under recent reforms, but will assess the market before adding incentives to meet the 2035 adoption target. Mining Prospects: A nationwide airborne survey flagged copper and tungsten potential, plus rare earth and geothermal leads, with ground studies still needed to confirm deposits. Finance Watch: RMA is reviewing Bhutan National Bank after some customers reported double deductions of annual maintenance charges; refunds were issued and penalties could follow. Local Culture & Sports: Thukten Nyendra won “Rhythm of Bhutan 2026,” earning the chance to represent Bhutan at Eurovision Asia in Bangkok; Paro FC also prepares to host Abu Muslim Farah FC in the AFC Challenge League preliminary stage.

Economic Diplomacy: Koshi Province in Nepal has launched a 60-day plan to map exportable products and open international market access, with district visits and sector teams studying tea/coffee, cash crops like cardamom/ginger/turmeric, and other locally produced goods. Bhutan–Japan Ties: A feature marks 40 years of formal Bhutan–Japan diplomacy, tracing the friendship back to a Japanese agricultural expert who worked in Bhutan for decades and helped transform farming communities. Tourism & Culture: Halesi in Nepal saw record crowds during the final Monday of Saun, with hotels and homestays fully occupied and the temple gate opened early to manage the surge. Sports Spotlight: Bhutan’s Paro FC prepares for an AFC Challenge League preliminary clash against Abu Muslim Farah FC, while Bhutan is also set to crown its first Eurovision Asia representative at Rhythm of Bhutan, with five finalists competing for the Bangkok ticket. ICT & Public Service: BBS announced results for the Assistant ICT Officer selection interview, with appointments effective 17 August. Regional Mobility: NAIMA Mobility Expo 2026 opens in Kathmandu, showcasing new two- and four-wheeler brands and pushing electric vehicle adoption. Energy & Resources: Bhutan’s renewable push under the 13th Five-Year Plan highlights accelerated hydropower and solar expansion, alongside new mineral findings that could reshape future economic planning.

FIFA Power Struggle: At least 20 national football federations, including Bhutan, have publicly backed Gianni Infantino to stay on as FIFA president, as opposition grows over his controversial World Cup commercial-rights plan. Eurovision Asia Spotlight: Bhutan is set to crown its first Eurovision Asia star tomorrow night, with five finalists competing on BBS for the chance to represent the country in Bangkok. AFC Challenge League Build-Up: Paro FC host Afghanistan’s Abu Muslim Farah FC at Changlimithang Stadium today, chasing a place in the AFC Challenge League group stage. ICT Recruitment: BBS has announced the results of the selection interview for the Assistant ICT Officer post, with appointments effective from 17 August 2026. Tourism Access at the Border: From September, the 24-hour SDF waiver will let regional visitors go beyond Rinchending to visit Milarepa Lhakhang and the Pachu Community Ecotourism Site as part of approved packages. Food Safety Watch: BFDA has tightened controls on imported Langra mangoes after calcium carbide was found in multiple samples, requiring testing before release.

Minerals & strategy: Bhutan’s first nationwide airborne geophysical survey is pointing to copper, tungsten and rare earth targets, with the Department of Geology and Mines moving to ground checks and drilling to verify what lies beneath. Energy push: Under the 13th Five-Year Plan, Bhutan is accelerating hydropower and solar expansion to cut seasonal shortages and support long-term growth, with new projects and capacity targets laid out by the Ministry of Energy and Natural Resources. Conservation pressure: Reports from the region highlight how habitat loss, weak enforcement and declining prey are driving leopard killings—an issue Bhutan wildlife watchers will be watching closely. Border tourism tweak: The 24-hour SDF waiver will soon allow visitors beyond Rinchending to two new Phuentshogling destinations—Milarepa Lhakhang and the Pachu Community Ecotourism Site—starting September. Food safety: BFDA has tightened controls on imported Langra mangoes after calcium carbide was found in multiple samples, requiring testing before release. Family policy clarity: Government clarified that the Third Child Plus Programme also covers eligible Bhutanese families living abroad. Hydro cooperation: India and Bhutan reviewed trans-border river management, flood forecasting and hydrological data sharing, and discussed progress on Punatsangchhu-I.

ICT Policy: Bangladesh’s PM adviser Rehan Asif Asad laid out five priorities for ICT and telecom, including lighter telecom taxes (aiming to remove the SIM tax), better mobile and broadband, a “One Citizen, One ID, One Digital Wallet” plan, AI-ready talent, and incentives to boost electronics manufacturing. India-Bangladesh Engagement: India’s High Commissioner Dinesh Trivedi said issues between Dhaka and New Delhi can be sorted out if PM Tarique Rahman meets Narendra Modi, with visa demand rising as processing capacity expands. Bhutan Border Tourism: Bhutan’s 24-hour SDF waiver will expand beyond Rinchending from September, letting approved visitors join licensed guides to visit Milarepa Lhakhang and the Pachu Community Ecotourism site during the Harvest Festival. Food Safety: Bhutan’s BFDA tightened controls on imported Langra mangoes after calcium carbide was found in 12 of 34 samples, requiring testing before release. Minerals & Economy: Bhutan’s first nationwide airborne survey flagged promising targets for copper, tungsten and other strategic minerals, with ground validation now set to follow. Family Support Clarified: Bhutan clarified that the Third Child Plus Programme also covers eligible Bhutanese families living abroad. Crypto Watch: Reports say the Royal Government of Bhutan continues selling sovereign Bitcoin in steady batches, with another 434.87 BTC moved off its books.

Family Policy: Bhutan’s Third Child Plus Programme now clearly covers eligible Bhutanese families living abroad, with Health Minister Lyonpo Tandin Wangchuk confirming the benefits apply whether families reside in Bhutan or overseas. Minerals & Economy: Bhutan’s first nationwide airborne geophysical survey has flagged promising targets for copper, tungsten and other strategic minerals, with the Department of Geology and Mines moving to ground validation and drilling. Heritage & Community: Registration has reopened for Project 108, the Nov 1, 2026 effort to raise 108 Jangchub Chortens at Gelephu Mindfulness City, after a verification round found incomplete volunteer details. Energy Cooperation: India and Bhutan reviewed trans-border river management and key hydropower progress, including Punatsangchhu-I, alongside plans to strengthen hydrometeorological networks and data sharing. Crypto Watch: Bhutan’s government-linked wallets have continued selling sovereign Bitcoin holdings, with another transfer of about 435 BTC reported, as the treasury steadily shrinks. Sports & Culture: Bhutan’s royals made a rare outing at a Thimphu exhibition marking King Jigme Singye Wangchuck’s 70th birthday, with their children drawing attention.

Family Policy: Bhutan’s Third Child Plus Programme now clearly covers eligible Bhutanese families living overseas, with Health Minister Lyonpo Tandin Wangchuk saying eligibility does not depend on where families reside—an assurance aimed at easing the burden as Bhutan tackles declining fertility. Minerals & Economy: A landmark airborne survey has mapped promising targets for copper, tungsten and other strategic minerals in Bhutan’s Lower Southern Belt and the Thimphu–Paro region, with the Department of Geology and Mines moving to ground checks and drilling—raising big questions about growing wealth while staying true to conservation and Gross National Happiness. Heritage Volunteering: Registration for Project 108 has reopened after verification flagged incomplete entries, giving another chance to join the Nov 1, 2026 raising of 108 Jangchub Chortens at Gelephu Mindfulness City. Crypto Watch: Bhutan’s government has resumed selling Bitcoin in measured batches, with another transfer of about 435 BTC (around $28m) reported as its sovereign holdings continue to shrink. Hydropower Cooperation: India and Bhutan reviewed trans-border river management and hydropower progress, including Punatsangchhu-I, focusing on hydrological data sharing and flood forecasting. Sports & Society: Bhutan’s broader regional sports scene continues to shift, while a separate report highlights how administrative disputes can stall football—contrasting with cricket’s momentum.

Royal Family Spotlight: King Jigme and Queen Jetsun made a rare joint outing at Thimphu’s Royal Textile Academy, where their sons stole the show at an exhibition honouring King Jigme Singye Wangchuck—while Princess Sonam was notably absent. Water & Hydropower Diplomacy: India and Bhutan reviewed trans-border river management and hydrological data sharing, and discussed speeding up Punatsangchhu-I and other key hydropower work. Sovereign Crypto Update: Bhutan’s government sold another 434 BTC for about $28m, continuing a steady drawdown of its Bitcoin treasury from 13,000+ BTC to an estimated 3,000–4,000. Digital Assets in Gelephu: Bitget signed an agreement with Gelephu Mindfulness City Authority to seek a licensed presence and regulatory approval for digital asset operations. Climate Risk Research: A study highlights that in Bhutan’s Lunana, people often rely on local cues and mobile alerts during glacial lake outburst flood warnings—not just formal systems. Sports & Culture: Bhutan’s Paro FC begins its AFC Challenge League push, while Bhutan’s Eurovision Asia act selection is set for August 11.

Crypto & Sovereignty: The Royal Government of Bhutan has sold another 434 BTC for about $28M, continuing a steady 2026 cash-out that has cut holdings from roughly 13,000 BTC to an estimated 3,000–4,000 BTC. Energy Diplomacy: India and Bhutan reaffirmed cooperation in power and water, reviewing hydropower projects and cross-border electricity trade, plus renewable energy and river management. Mining vs Conservation: Bhutan’s first nationwide survey points to copper and tungsten under forested land, raising the big question of how mining can expand without breaking the country’s conservation rules. Digital Assets in Gelephu: Bitget signed a cooperation deal with Gelephu Mindfulness City Authority to seek a licensed presence and a Financial Services Licence under the GMC framework. Healthcare Access: Tsirang’s Damphu Hospital is struggling with doctor shortages, leaving patients unable to get consultation tokens and sometimes forced to return or stay overnight. Sports & Culture: Bhutan’s royal family marked King Jigme Singye Wangchuck’s 70th birthday with a Thimphu exhibition, while Paro FC’s AFC youth push and Bhutan’s Eurovision Asia selections keep the spotlight on local talent.

Digital Assets in Bhutan: Bitget signed a cooperation deal with Gelephu Mindfulness City Authority to set up a local presence in GMC and apply for a Financial Services Licence under the Gelephu Financial Services Office, aiming to grow Bhutan’s digital asset ecosystem with regulatory and compliance support. Healthcare Access in Tsirang: Damphu Hospital’s token system is leaving patients without same-day consultations, with locals blaming delays and the hospital pointing to a doctor shortage behind the limited tokens. Flood Claims Debunked: Assam officials dismissed viral claims that Bhutan dam gates caused recent flooding, saying upstream rainfall and scheduled reservoir flushing—not emergency releases—drove river levels. Glacial Lake Safety in Bhutan: A study from Lunana highlights that people often rely on environmental cues and mobile alerts for GLOF warnings, and calls for better evacuation preparedness alongside early warning systems. Bhutan’s Industry Bottleneck: Bhutan’s Annual Industry Report 2026 says over 95% of industries remain cottage or small, with only about 4% medium/large firms—limited profitability and credit access are cited as key barriers to scaling up. Geology and Minerals: Bhutan’s first nationwide airborne geophysical survey has mapped promising underground targets, including signs linked to copper, tungsten and rare earth potential, with ground verification now underway. Regional Sports: Paro FC begins its AFC Challenge League preliminary push against Abu Muslim Farah FC, while Bhutan’s Eurovision Asia act selection is set for August 11 and the AFC U17 Asian Cup qualifiers draw is scheduled for August 27. India-Bhutan Links: India and Bhutan signed a LoC and health education cooperation pacts, reinforcing ongoing development partnership ties.