AGP Executive Report

Hydropower Deal: Hindustan Construction Company (HCC) secured an INR 127 crore contract for diversion tunnels, hydromechanical gates and cofferdam works for Bhutan’s Wangchhu Hydroelectric Project, with completion targeted in nine months. Energy Trade: Uttar Pradesh Power Corporation received UPERC approval to buy power from Bhutan’s 511-MW Khorluchu Hydro project (a Tata Power–Druk Green Power joint venture) at a flat tariff of Rs 6.75/unit for 30 years. Population Policy: Bhutan announced cash incentives of 10,000 ngultrums per month for families having a third and subsequent child, starting June 4, as births and fertility continue to fall. Conservation & Community: Bhutan Trust Fund for Environmental Conservation (BTFEC) signed a Nu 2.5 million grant for elephant corridor restoration in Gelephu Mindfulness City, while Bhutan Red Cross opened its first Branch Emergency Operation Centre in Tsirang. Local Environment Action: Paro district launched a pilot to cut single-use plastic carry bags in vegetable markets, backed by jute and recycled-bag alternatives. Tourism Partnership: Thailand and Bhutan advanced their “Two Kingdoms, One Destination” tourism push with reciprocal familiarisation trips. Sports: India and Bangladesh set for the SAFF Women’s Championship final in Goa on June 6.

Population Policy: Bhutan will pay cash incentives of 10,000 ngultrums monthly for every third and subsequent child (and eligible older third-plus births) born on or after June 4, 2026, aiming to reverse declining births and outward migration. Energy Trade: Uttar Pradesh Power Corporation got UPERC approval to buy power from Bhutan’s 511-MW Khorluchu Hydro project at a flat tariff of Rs 6.75 per unit for 30 years, with a power sale agreement expected soon. Hydropower Build-Out: Hindustan Construction Company won a ₹127 crore contract for Wangchhu hydro works in Bhutan, including diversion tunnels, hydromechanical gates and cofferdams, due within nine months. Climate Funding: Bhutan secured continued Global Environment Facility support via the LDCF, extending funding cycles through June 2030 for climate adaptation priorities. Disaster Readiness: Bhutan Red Cross Society opened its first Branch Emergency Operation Centre in Tsirang to support district disaster response with first-aid and emergency equipment. Environment at Home: Paro district launched a pilot to cut single-use plastic carry bags in vegetable markets, partnering with jute-bag and recycling initiatives.

World Bank Appointment: India has named economist Neelkanth Mishra as its new Executive Director at the World Bank, representing a South Asia constituency that includes Bhutan, for a three-year term. Population Policy: Bhutan will pay cash incentives of Nu 10,000 for every third and subsequent child (from June 4, 2026) to tackle declining births and an ageing population. Hydropower Contract: Hindustan Construction Company (HCC) secured a ₹127 crore contract in Bhutan for the Wangchhu Hydroelectric Project, covering diversion tunnels, hydromechanical gates and cofferdams, due in nine months. Sports—Cricket: Bhutan’s Ritshi Choden became the first woman cricketer to be timed out in international cricket against Nepal; the Cricket Association of Nepal later apologised, saying the dismissal was lawful but not in the spirit of the game. Sports—Football: India and Bangladesh set for the SAFF Women’s Championship final in Goa, with India aiming for a record sixth title after beating Bhutan in the semis. Disaster & Climate Resilience: Bhutan’s climate resilience work was praised at the GEF Council, highlighting improved food availability and stronger conservation outcomes across project districts.

Cricket & Sportsmanship: Bhutan’s Ritshi Choden became the first woman batter to be “timed out” in international cricket during an ACC Women’s Premier Cup match against Nepal in Malaysia. Nepal’s Cricket Association later issued a public apology, saying the dismissal was within the laws but not in line with the “spirit of cricket.” Local Development & Climate Resilience: Thimphu is upgrading its storm drainage system to handle heavier rainfall and reduce urban flooding, with works planned from Sersang School through the city toward Kaja Throm under a government-UNDP project supported by the GEF. Disaster Response & Health Services: The Bhutan Red Cross Society opened its first Branch Emergency Operations Centre in Tsirang, strengthening local disaster preparedness and response. Environment & Conservation: Bhutan’s climate resilience work was praised at the GEF Council meeting in Samarkand, highlighting a USD 56 million project supporting forests, climate-resilient agriculture, and rural livelihoods. Governance: The National Council referred Bhutan’s Livestock Bill 2025 back to the Economic Affairs Committee for further review after concerns were raised by members. Sports (Regional): Bhutan also featured in regional match coverage, including Cambodia vs Bhutan fixtures and Bhutan’s participation in women’s cricket debates.

Renewable Energy: Bhutan’s National Assembly unanimously adopted the Renewable Energy Tax Exemption Bill 2026, sending it to the National Council for further deliberation. Environment & Forestry: Bhutan marked Social Forestry Day on June 2 with tree-planting and community-led conservation, reaffirming its forest-protection commitments and carbon-negative status. Aviation Governance: The NA also adopted the Convention on International Civil Aviation 2016 (Chicago Convention), aimed at strengthening Bhutan’s role in global air travel rules. Public Health Policy: Lawmakers pushed for stricter enforcement of Bhutan’s public smoking rules as tobacco imports rise and monitoring appears weak. Sports (SAFF Women’s Championship): India beat Bhutan 1-0 to reach the final, while Bangladesh came back to defeat Nepal 2-1; the final will be between India and Bangladesh. Regional Energy Trade: UPERC approved a long-term 511 MW hydropower import plan from Bhutan’s Khorlochhu project to Uttar Pradesh at a fixed tariff for 30 years. Human Rights: The Global Campaign for the Release of Political Prisoners in Bhutan welcomed the release of two Bhutanese political prisoners, while raising concerns about their post-release treatment and documents.

SAFF Women’s Championship (Goa): India edged Bhutan 1-0 in the semi-final as Sanfida Nongrum scored in the second half, but coach Crispin Chhetri admitted Bhutan “deserved to win” after criticizing India’s attitude and missed chances. SAFF Final Line-up: Bangladesh beat Nepal 2-1 in the other semi-final, setting up a final against India, with Bhutan awaiting the consolation match. Bhutan Sports Focus: Bhutan’s disciplined defence kept the match tight, but the Dragons fell short as India converted key moments. Bhutan Governance: Bhutan’s National Assembly unanimously adopted the Convention on International Civil Aviation 2016, a move aimed at strengthening Bhutan’s role in global aviation governance. Public Health & Law: The National Assembly’s Social and Culture Committee urged stricter enforcement of Bhutan’s public smoking rules amid concerns about weak monitoring. Compassion in Leadership: Bhutan hosted a Compassionate Leadership Forum and signed the Global Compassion Declaration, pushing compassion as a practical guide for governance.

SAFF Women’s Championship: India coach Crispin Chettri says the team must take risks and test younger players ahead of the semi-final against Bhutan in Goa, with India entering as heavy favourites after a dominant group run. Sports—Bhutan in the spotlight: Bhutan women chase history in the same knockout double-header, where India’s return of forward Manisha Kalyan adds extra firepower. Bhutan—land rights: Bhutan’s National Land Commission Secretariat has launched a new digital consent system using the National Digital Identity platform to reduce forged signatures, unauthorized transactions, and land-ownership disputes. Education: The Education ministry revised student assessment rules so students no longer need separate 40% in both written exams and continuous assessment to pass, after concerns about Dzongkha failures. Culture: Ogyen Choling Museum in Bumthang’s Tang Gewog marks its 25th anniversary with rare thangkas on display. Public welfare: The Livestock Bill was introduced with a clear message: it targets animal welfare, biosecurity and food safety—not slaughter.

SAFF Women’s Championship: India take on Bhutan in the second semi-final in Goa on Wednesday, aiming to reclaim the title after topping Group B with big wins over Maldives and defending champions Bangladesh; Bhutan, ranked far below India, will need to keep their defence tight as the match kicks off at 8:00pm BST. Local Education Reform: Bhutan’s Education Ministry has revised student assessment rules—students will no longer need 40% separately in both written exams and continuous assessment to pass, with the pass now based on combined scores, after concerns over rising Dzongkha failures. Property Rights Tech: A new digital consent system is being rolled out to strengthen land ownership protection by requiring verified consent from relevant parties before transactions can proceed, aiming to cut forged signatures and unauthorized deals. National Assembly Moves: Parliament endorsed expanded GST exemptions on essential goods and welfare items to ease cost-of-living pressures, adding more staple foods, edible oils, hygiene products and disability assistive devices. Debt Watch: Lawmakers raised concerns as Bhutan’s public debt reaches 90.6% of GDP, with external debt making up most of it and currency exposure flagged as a repayment risk.

Debt Watch: Bhutan’s public debt has reached 90.6% of GDP, with MPs warning that heavy external borrowing—especially hydropower loans and non-hydropower debt exposed to US dollar/SDR-linked currencies—could raise repayment pressure as exchange rates swing. Cost of Living: The National Assembly endorsed expanded GST exemptions for essential goods, adding more rice varieties, edible oils, hygiene items and disability assistive devices to ease household expenses. Youth & Work: A new story highlights how Bhutanese youth are moving beyond the “government job” path, as youth unemployment remains high. Energy Plan: Bhutan aims to generate 25,000 MW by 2040 (20,000 MW hydropower, 5,000 MW solar), with major projects like Nyera Amari progressing. Education: Bhutan’s first international K–XII school with EtonHouse is set to begin enrolments in August for ages 3–11. Local Infrastructure: Government says it will monitor disruptions from the Phuentshogling bypass as rain-triggered landslides and debris keep blocking roads. Sports: The Women’s National League Tier I race tightens as teams battle for top-six qualification.

Public Finance: Bhutan’s public debt has reached 90.6% of GDP, with total public debt at Nu 306.3 billion and external debt at Nu 285.2 billion as of 31 March 2026, prompting National Assembly concerns over foreign exchange risks and the currency exposure of non-hydropower borrowing. Tax Relief: The National Assembly endorsed expanded GST exemptions on essential goods, with the GST (Amendment) Bill 2026 increasing exempt items from 9 to 31, including more rice varieties, edible oils, butter, hygiene products, and GST-free motorised wheelchairs for persons with disabilities. Energy Outlook: Bhutan is targeting 25,000 MW by 2040—20,000 MW from hydropower and 5,000 MW from solar—while projects like the 404 MW Nyera Amari I and II move through planning stages. Local Infrastructure: Government says it will keep monitoring the Phuentshogling bypass after repeated rain-related road disruptions from landslides and debris. Jobs and Youth: A shift is underway as more Bhutanese youths look beyond government jobs, even as youth unemployment remains high. Economy Watch: Bhutan’s GDP grew by nearly 6% in the first quarter of 2026, driven by industry and electricity, while services slowed and agriculture contracted. Agriculture Support: National Council MPs urged higher subsidies for the Crop and Livestock Insurance Scheme, citing low uptake and affordability barriers. Education: MoESD signed with Singapore’s EtonHouse to set up Bhutan’s first international school, opening in August.

Bhutan–Singapore Tax Deal: The National Assembly endorsed the Bhutan–Singapore double taxation treaty, seen as a boost for investor confidence and Gelephu Mindfulness City’s global investment push. Education Support: Nu 237.5 million was allocated to help Class 12 Arts students affected by RUB’s earlier policy shift. New International School: MoESD signed with EtonHouse to set up Bhutan’s first international school, starting operations in August in Thimphu. Museums & Heritage Standards: DCDD is drafting unified national guidelines to standardise how museums and heritage galleries are planned, approved and managed. Human-Wildlife Relief Framework: MoENR is preparing a casualty relief and accountability framework for victims of wildlife attacks, after compensation provisions existed but no mechanism was in place. Infrastructure Scrutiny: MPs pressed MoIT on whether geotechnical checks and design standards are strong enough for climate risks, while the government said safety and resilience require such assessments. Green Finance Push: Bhutan’s updated Green Finance Taxonomy (2026 addendum) will roll out in phases over three years. UPI Spillover: India’s UPI hit record May numbers (23.2 billion transactions; value near Rs 30 lakh crore), driven by travel and IPL fever.

SAFF Women’s Championship: India beat Bangladesh 3-0 in Goa to top Group B and set up a semi-final against Bhutan, while Nepal advanced after beating Sri Lanka 2-0; Bhutan had earlier confirmed its last-four spot with a 4-0 win over Sri Lanka. Tiger’s Nest tragedy: A Singapore woman died in Bhutan after feeling unwell during a hike at Paro Taktsang (Tiger’s Nest); CPR was given on site and she was taken to Paro Hospital as investigations continue. Thimphu planning debate: MPs questioned mandatory geotechnical testing costs under the Thimphu Structure Plan 2023–2047; the ministry said it’s needed for safety in Bhutan’s earthquake-prone terrain. Urban resilience: MoIT says Thimphu’s stormwater and drainage upgrades are meant to cut recurring street flooding and roadside overflow. Hydropower update: Work on the DPR for the 404MW Nyera Amari I and II project has begun. International school: EtonHouse Bhutan held an experience day, previewing its Reggio Emilia, Singapore Math, and Cambridge curriculum pathway. Regional defence: Exercise PRAGATI 2026 concluded in Meghalaya with 13 nations, including Bhutan, training on counter-terrorism and interoperability.

Regional Security: Bhutan was among 13 countries sending over 400 troops to Meghalaya for the maiden multilateral Exercise PRAGATI 2026, which wrapped with a 72-hour validation focused on counter-terrorism, interoperability, and joint drills in semi-mountainous and jungle terrain. Public Safety in Bhutan: A Singapore woman died in Bhutan on May 30 after feeling unwell during a hike to Tiger’s Nest; CPR was attempted and she was taken to Paro Hospital, with investigations and a post-mortem ongoing. Hydropower Transparency: Bhutan’s National Assembly MPs asked for clearer progress on the Nyera Amari I and II Integrated Hydropower Project, citing delays and limited public information on timelines. Climate Risk: Bumthang communities were sensitised on growing GLOF risk as glacier melt and glacial lake expansion increase sudden flood threats, including along the Chamkhar Chhu basin. Health & Youth Support: Bhutan expanded its HAT adolescent mental health programme to 166 schools, aiming to strengthen psychosocial support amid rising concerns over anxiety, depression, and self-harm.

Adolescent Mental Health: Bhutan’s HAT programme has expanded to 166 schools, adding structured counselling and wellbeing support for ages 10–19 as anxiety and depression remain major concerns. Cancer Care Costs: Bhutan Cancer Society highlights a painful gap: even with free services, many patients still struggle with the cost of treatment. Green Finance: Bhutan will pilot its Green Finance Taxonomy 2026 from June to November, aiming for nationwide rollout in January 2027. WTO Accession: Bhutan has formally resumed its WTO accession process after nearly 17 years, as it prepares for a post-LDC transition. GLOF Risk in Bumthang: NCHM warns of rising glacial lake outburst risks in Bumthang, with Chhoekhor Gewog and the Chamkhar Chhu basin flagged as highly exposed. Hydropower Transparency: NA MPs asked for clearer public updates on the Nyera Amari I and II project after repeated delays and shifting start timelines. Local Governance: Thromde election steps begin as the ECB notifies Thimphu and Phuentsholing voters for postal ballot registration. Community & Culture: BNB marked International Menstrual Hygiene Day at Pemacholing Nunnery, while Gelephu Mindfulness City plans 108 sacred Jangchub Chortens.

Bhutan–Singapore ties: The National Assembly endorsed the Bhutan–Singapore Double Taxation Avoidance Agreement, aiming to boost investment and make tax rules clearer for businesses. Mental health in schools: Bhutan launched the Helping Adolescents Thrive (HAT) Programme with UNICEF and the PEMA Secretariat, bringing trained school counsellors and wellbeing focal persons to support students aged 10–19. Wildlife conflict support: The MoENR Minister said a National Human-Wildlife Casualty Relief and Accountability framework is being drafted after MPs raised concerns that compensation for victims is still not working on the ground. Culture and heritage: DCDD is drafting museum and heritage gallery guidelines to standardise how museums are approved, run, and maintained. Local jobs: A part-time employment system pilot has started in Thimphu, with up to 50 employers expected to be selected and vacancies posted for eligible job seekers. Sports: Bhutan beat Sri Lanka 4-0 in the SAFF Women’s Championship, with Pema Tshering scoring a hat-trick.

Royal & Spiritual Life: His Majesty the Fourth King graced the consecration of a new sacred Tara thongdrol at Pangrizampa’s Tara Lhaden Zhingkham, with senior monks, officials and Royal Family members marking the Tashi Rabney ceremony for the 21 manifestations of Tara. Bhutan Society & Change: A remote Bhutanese town in Sakteng is losing old communal traditions as road access and cash-based routines reshape daily life, from house-building rituals to wedding customs. Local Economy: Tsirang’s dairy farmers get steadier income after a one-year supply deal sends 500 litres of summer milk daily to Serkar Dairy in Thimphu for Greek yoghurts and other products. Jobs & Work: Thimphu has started a formal part-time employment pilot, with job seekers already signing up and up to 50 vetted companies expected to participate. Culture & Rights: Creative industries are pushing for stronger copyright enforcement as piracy and AI-facilitated copying threaten filmmakers and artists. Sports: Bhutan’s women’s team opened SAFF Women’s Championship action with a 4-0 win over Sri Lanka, with Pema Tshering scoring a hat-trick.