ADB President Reaffirms Long-Term Partnership with Bhutan During Visit

The President of the Asian Development Bank (ADB), Masato Kanda, met with His Majesty King Jigme Khesar Namgyel Wangchuck during his recent visit to Bhutan, reaffirming ADB’s role as the kingdom’s largest multilateral development partner. Discussions centered on strengthening connectivity, enhancing resilience, and supporting Bhutan’s long-term development vision through strategic infrastructure and social investments.

“ADB is committed to helping Bhutan pursue ambitious growth targets by enhancing domestic and regional connectivity,” Mr. Kanda stated. “Through strategic transport investments, we are building lasting connections, economic integration, and the foundations for prosperity.”

Transport Investments for Regional Integration

A highlight of the visit was the signing of project readiness financing for the preparation of the Lhamoizingkha–Sarpang section of the Southern East–West Highway. This highway, once completed, will:

• Improve domestic transport links within Bhutan.

• Enhance cross-border connectivity with India and other South Asian neighbors.

• Advance regional economic cooperation under the South Asia Subregional Economic Cooperation (SASEC) framework.

Such investments are critical for landlocked Bhutan to diversify trade, strengthen competitiveness, and improve access to markets.

Climate Resilience and Infrastructure Protection

Mr. Kanda also witnessed the signing of a $45 million financing agreement for the Climate-Resilient Omchhu River Basin Project. This project will safeguard the Phuentsholing trade corridor, Bhutan’s most important commercial hub, from flood risks. By introducing protective infrastructure and flood management systems, the initiative will secure livelihoods, protect trade flows, and build resilience against climate change impacts.

Everyday Services: Water Supply and Workforce Skills

The visit also demonstrated ADB’s commitment to improving everyday services and human capital. Mr. Kanda inaugurated the Dechencholing Water Treatment Plant, which is part of ADB’s Water Flagship Program Support Project. The facility will:

• Supply clean drinking water to around 1,378 households.

• Use resilient monitoring technology to ensure long-term service reliability.

In addition, he visited the Technical Training Institute in Serbithang, where students receive practical training in automobile mechanics, air-conditioning systems, and digital marketing. These programs support Bhutan’s efforts to equip youth with market-relevant skills for a changing economy.

Aligning with Bhutan’s 13th Five-Year Plan

During his stay, Mr. Kanda met with senior government leaders, including Finance Minister and ADB Governor Lekey Dorji, to discuss Bhutan’s development priorities under the country’s 13th Five-Year Plan. The talks covered issues of sustainable growth, economic diversification, workforce development, and infrastructure investment.

Celebrating Four Decades of Partnership

To underscore the depth of the ADB–Bhutan relationship, Mr. Kanda launched the Bank’s new Development Effectiveness Brief on Bhutan, which highlights integrated support for sustainable development in Phuentsholing, Bhutan’s key trade gateway handling nearly half of the country’s commerce with India.

Since 1982, ADB has committed $1.4 billion to Bhutan, making it the country’s largest multilateral development partner. Over the past four decades, ADB has invested heavily in transport infrastructure, cross-border trade facilitation, energy, water supply, and education, contributing significantly to Bhutan’s development journey.

Looking Ahead

Bhutan’s strategic priorities—economic diversification, regional integration, job creation for youth, and climate resilience—remain closely aligned with ADB’s areas of support. The new agreements signed during Mr. Kanda’s visit build on this partnership, ensuring that Bhutan continues to benefit from inclusive growth and sustainable development.

As Bhutan advances its development agenda, ADB’s long-standing commitment signals that the country will continue to enjoy strong support in navigating regional opportunities, addressing climate challenges, and building a resilient economy for future generations.