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Austria commits 10M euros

Austria and Bhutan have agreed on a country strategy for development cooperation from 2010-13 based on Bhutan's development priorities and Austria's development policies.

Austria has committed Euro 10.1M (Nu 625.7M) for the four-year period towards energy, tourism and governance.

In the energy sector, cooperation will continue to support the rural electrification programme, with a focus on the remote and environmentally sensitive areas. About 300 households are to be covered a year. If funds permit, activities in energy efficiency (rural stoves) and solar thermal will be carried out.

Technical assistance and capacity development support will also be provided for Bhutanese staff dealing with construction, operation and maintenance of hydropower schemes to ensure ownership and sustainability. The strategy also offers to encourage and facilitate public-private partnership in the hydropower sector.

In tourism, priority has been accorded to the completion of the ongoing construction of the royal institute of tourism and hospitality (RITH), as well as starting the diploma course. Support will be extended to the tourism council of Bhutan (TCB) to enhance public-private partnership for sustainable tourism development. Possible technical assistance for the private sector through TCB will be considered, and assistance to promote FDI in hotels will be explored.

Under governance, the Austrian coordination office in Thimphu will review projects and programmes under implementation and identify new projects, and annual plans of activities and budgets will be adopted.

Source: Austrian Development Agency, October 2010

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