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Austria commits financial assistance for 2004

An agreement of Euro 2.035 million to be disbursed in the current year for contracts within the bilateral program was signed between the coordinator of the Austrian Coordination Bureau, Ms Brigette Dekrout, and director of Bilateral Affairs, Foreign Ministry, Yeshey Dorji.

The financial assistance will be further complemented by some activities such as scholarships and co-financing with the private sector.

The Austrian assistance in the 9 Five Year Plan will continue in the areas of energy, culture, mountain ecology and tourism along with human resource development. Austria and Bhutan established formal relation in 1989 and since then both the countries have enjoyed excellent bilateral relations. Austria has assisted Bhutan mainly in energy, renewable natural resources, environment management, culture and tourism since formal diplomatic relations began in 1989. Bhutan is also the largest recipient of Austrian development assistance.
March 2004

Trongsa Dzong
Austrian funded projects on track

Projects under the Austrian bilateral programme in the country are well on track according to Austrian Coordination Bureau (ACB) coordinator Ms Brigitte Dekrout. "Austrias main thrust so far was in the Basochhu hydropower project and we foresee the completion of the project (lower stage) five months before schedule," she said. Like the upper stage 24 MW project which was commissioned in 2002 the lower stage of the project is also financed by a soft loan from Austria. Austria is also providing technical assistance to ensure that the works conform to the contractual quality and price.

The restoration of Trongsa dzong

Under the Euro 2.2 million Trongsa dzong restoration project, the main portal building and the monk body school are being restored to its original structure. According to the ACB office, the restoration of the dzong was Bhutan government's full responsibility while Austria provided expertise in historical Document, analysis and measures to fortify the deteriorated foundations of the structure.

With the restoration work nearing completion, all the activities undertaken to restore the dzong would be documented that can serve as a future reference for similar restoration works in the future.

Apart from the two major projects, the Austrian government has been helping in the development of the energy sector through training in operation and maintenance services.

Rural electrification is also a priority to reduce poverty and contribute to the preservation of the environment and job creation. "Rural electrification is the most important programme to reach out to the disadvantaged people," said Brigitte Dekrout. "Only when we have electricity and roads, we are part of development."

Another major initiative in bilateral cooperation is to strengthen tourism as an industry to increase foreign exchange and create job opportunities.

One of the major projects coming up in this sector is the joint establishment of a hotel and tourism training institute in Thimphu. The Austrian government has committed Euro 2 million over 10 years to set up the institute that would be located at the old Motithang Hotel.

Austria has also been helping in scientific research works on the Lunana glacial lake outbursts. Research work on the glacial lakes was completed last year and it was felt that no further assistance was needed starting this year. The financial assistance will be further complemented by some activities such as scholarships and co-financing with the private sector.

Source: Austrian Development Agency, March 2004

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