Manila: The Japan Special Fund, through Asian Development Bank (ADB), will provide a US $650,000 grant for the feasibility study for a road project in Bhutan that will ensure socio-economic development.

The road project will pave way for more balanced and sustainable economic expansion and poverty reduction in the less developed southern part of the country.

The Government of Bhutan will extend US $165,000 to complete funding requirement.

The feasibility study will focus on a national highway in the southern corridor, as well as feeder roads in the middle of the corridor, besides will be the basis of a road project design for possible loan financing.

"Most of the poor, especially in rural areas, feel that the government should prioritise road infrastructure and bridges to improve their living conditions," ADB's South Asia Department Transport Specialist Arto Ahonen said.

The country depends on a single East-West national highway running through the middle of the country. The absence of a similar highway in the south has constrained travel in that part of Bhutan.

Improving the transport system along Bhutan’s southern corridor will increase the potential economic benefits.

Connecting the less-developed eastern part of the southern corridor to the country's road network will also promote economic growth and reduce poverty, while improving the road connection to India and Bangladesh will enhance sub-regional economic cooperation.
—iGovernment Bureau