| Project Detail |
Project Name
Distributed Solar for Public Infrastructure Project
Project Number
56325-001
Country / Economy
Bhutan
Project Status
Approved
Project Type / Modality of Assistance
Loan
Technical Assistance
Bhutan is facing substantial development challenges from lack of economic diversification, predominance of subsistence employment in agriculture, poor infrastructure and connectivity, and economic threats from climate change given its geographical location. Agriculture employing around 56% of population and 19% of gross domestic product (GDP) contribution remains less productive and loosely interconnected with other sectors of the economy. The lack of economic diversification and limited capacity of the private sector poses risks to the long-term sustainability of growth and job creation. Bhutans struggle to create sufficient, productive employment for its youth has become a major concern for the sustainable development. Even before the COVID-19 pandemic, youth unemployment in Bhutan was over four times higher than the overall unemployment rate. The private sector in Bhutan remains nascent partly because of the small domestic market and the shortage of skilled labor. It is crucial to create high-quality jobs that keep youth employed within the country to ensure sustainable and inclusive development. Solar industry, as a new business area in Bhutan, can play a key role to create skilled jobs and boost private sector development. |
