His Majesty began by emphasizing the challenges that lay ahead of us as we near the second democratic elections in 2013. He urged all citizens to participate in the upcoming elections “as candidates, members of parties and voters” and he emphasized that experience only comes with participation. This is an important message and it comes at a time when our first tryst with democracy has left many citizens dissatisfied and disillusioned with the process, given the performance of the first elected government because of which many are wondering if is worth it to go to the polls in the first place. His Majesty stressed that whether we choose continuity or go for change, we can have it only by going to the polls.

His Majesty applauded the solidarity and the community vitality shown by the people during disasters like when the Wangdue Dzong was destroyed by fire and people came together, leaving all differences aside, in a movement to restore the Dzong to its original glory. His Majesty said that such bond of brotherhood should not only come during disasters but in the process of taking the country forward and such an exercise awaited each one of us in taking part in the upcoming elections.

His Majesty once again reiterated that socio-economic growth is not enough and that growth should be achieved with equity. This is a vision His Majesty has been propagating time and again and it is what he meant when he described the development philosophy of Gross National Happiness (GNH) as nothing else but development with values.

The throne has always stressed on the need to adopt an inclusive development approach by keeping people in the center of the development process. Reiterating it further, His Majesty said that the poor must not be left behind. He said that the less fortunate citizens should also benefit from the opportunities of progress and modernization “at the earliest.” This is also a strong message for the government of the day and to all political parties to get their priorities right and to ensure that the growing income disparity in the country is dealt with utmost urgency.

It is intriguing to note that His Majesty singled out the rupee shortage as a “serious problem” and described it as a “reminder” to “exercise our traditional sense of caution and work harder as we address the challenges of the time.”

His Majesty also spoke out loud by accrediting and giving away numerous awards. Giving away the highest award of Druk Thuksey to institutions like the two political parties, the two parliamentary houses, and the Royal Audit Authority highlighted the importance of institution building at this stage of transition to democracy.

Awarding Druk Thuksey to head of the Punatsangchhu Hydropower Project, the Indian Ambassador and two former Indian Ambassadors for their contribution to furthering Bhutan-India Friendship also went a long way in consolidating the importance of India as a true friend of Bhutan. This gesture from the throne will also put the ongoing debate on Bhutan’s foreign policy to rest. It all began after the prime minister met the Chinese premier along the sidelines of the Rio+20 UN Conference on Sustainable development in Rio de Janeiro in June. It unsettled many power centers with India going almost on a frantic run to understand the new developments.

A very important message was sent by the throne in awarding the coveted red scarf to four distinguished citizens. Apart from crediting two officials for their contribution to the hydropower sector, awarding Dasho Sonam Kinga and Dasho Karma Y Raydi came as a pleasant surprise because this is the first time that the throne has used the coveted accreditation to recognize young future leaders for their potential. It also comes at a time when the country is in dire need of future leaders, the absence of which is felt in many sectors including the formation of new political parties.

His Majesty described Dasho Sonam Kinga as a “sound role model for our youth” and as has been the trademark of His Majesty’s speeches, he highlighted the importance of the youth in his address by reiterating that the youth of Bhutan should receive education which should be complimented with the access to right jobs and responsibilities. Again, the throne did not only stress on the provision of jobs for the younger generation but the importance of giving them the “right” jobs to nurture them into productive citizens. Accrediting 112 teachers furthered the royal conviction of the importance to guide the youth in the right path.

This National Day address was significant for a lot of reasons. It was the last address to the nation before the second democratic elections and the whole nation was listening to what the throne had to say. The address was befitting the occasion and full of important messages.

The Royal Monetary Authority (RMA) is in the process of revising the Foreign Exchange Regulations (FER)  of 1997.

The central bank has come up with a draft regulation which is more comprehensive and covers a wider range of issues and areas of foreign exchange in the country.

A prominent adoption in the draft regulation as compared to the FER 1997 is with respect to the import and export of ngultrum.

The draft regulation states that an individual may bring into Bhutan on arrival from, or take out of Bhutan banknotes, coins, and other instruments denominated in Ngultrum up to an aggregate value not exceeding Nu 5,000 per arrival or per departure.

The regulation states that if the total value of banknotes, coins, and other instruments denominated in Bhutanese Ngultrum exceeds Nu 5,000 the individual must declare the total value and sources of such Ngultrum to the customs at the time of arrival or departure.

Regarding the import and export of foreign currency, if the total value of foreign currency, including Indian Rupees, brought into or taken out of Bhutan exceeds USD 10,000 or its equivalent, the individual must declare the total value and sources of such foreign currency to customs at the time of arrival or departure.

For export and import of gold, silver coins, bars or bullion, prior approval from the RMA must be obtained.

Also, the draft regulation states that any legal entity that are not banks can apply for a license to operate as an authorized money changer. The authorized money changer must be entities that are incorporated in Bhutan, having a physical place of business in Bhutan, certified by the Tourism Council of Bhutan as a tourist grade hotel or guest house and hold stand alone trade license issued by the Ministry of Economic Affairs.

The regulation also states that a separate authorized money changer license is required for each branch, location or counter of an authorized money changer which is not transferable.

The draft regulation also states that no person or organization will have foreign currency account abroad excepts for   diplomatic and consular missions of Bhutan located abroad and their staff, authorized banks,  citizens who leave Bhutan for higher studies, training, or employment abroad,  public corporations and trust funds approved by the government with regular operations abroad.

According to the regulation Bhutan Post should facilitate remittances of Indian Rupees to India by way of money order, and settle such amounts in Indian Rupees, in accordance with its arrangements with the Indian Postal Service.

In order to access the environmental damages caused by mining and quarrying activities in the country, a detailed study on mining and quarrying is underway across the country.

This is following a resolution of the National Council of Bhutan during the ninth session of the parliament.

The National Council of Bhutan has assigned the Royal Society for Protection of Nature (RSPN) to conduct the study. The findings of the study will be presented in the 10th session of the National Council next year.

“The inspection has been done to understand the environmental damage because of the mining activities,” said Member of Parliament (MP) and member of the environment committee, Dr.Mani Kumar Rai.

The survey will focus on the air and air quality at the mining areas and its affect on the lives of the people living around the mining area.

Another MP and a member of the environment committee, Sangay Khandu told Business Bhutan that the study is in progress and the draft report will be ready by December 25 and presented at the 10th session of the Parliament.

“Once the report is out and spelled, we might have to visit some mining sites,” he said.

The survey has also been conducted in line with the National Environmental Commission findings of 2009 which that the operators and regulators have not been complying with mining rules and regulations.

The study will cover aspects like environmental impact of mining and quarrying, rationality of revenue and market prices of minerals mined and quarried and the pros and cons of nationalization of mines and quarries in Bhutan.

Records show that mining industry in Bhutan has seen a boost in a span of over four years leading to increased production and ever growing export.

MP Sangay Khandu said “Revenue from mines including direct taxes of few mine operators  whose information is available is about of Nu. 377 mn,”

He added, “The growth in the mining sector is good but environmental concerns cannot be understated, especially in Bhutan,”

Observers say, one of the main threats posed by the open mining industry Bhutan is, unlike other countries, that it affects the environment by changing the landscape. Rigorous mining also affects the Ph medium of soil and water, flora and fauna, socio-economic development and health of the people and animals living around the mining area.

Records with the Department of Geology and Mines show that currently there are 28 mines and 44 quarries in the country.

Last year there were 192 applications for operating quarries and mines out of which 12 stone quarries and 1 limestone mine were leased.

Also, the pre-feasibility study for 140 sites have been completed out of which 38 is under process.

Though the progress has been slow, the move comes two years after the government approved eye donation and included it in the National Health Policy.

A Cornea Specialist with the JDWNR Hospital, Dr. Nor Tshering said the health ministry is yet to form a committee that will look after the organ donation program. He said the pledging campaign is tentatively set for January next year.

“If there are patients who are willing to donate their organ, we will start filling in the pledge form,” said Dr. Nor Tshering, adding that for a year at least, the hospital is going to keep the pledging small.

He said many Bhutanese are skeptic about donating their organs. “If there is an increase in the number of donors, we will continue the campaign at a larger scale,” he said.

The pledging campaign is expected to start with patients at the hospital.

Meanwhile, by March next year, the JDWNR Hospital also plans to carry out cornea transplants in the country.

For this, the hospital is planning to send technicians for training. Currently three technicians have been trained to preserve the cornea and handle the eye bank. The eye bank at the hospital is also taking shape with the management having selected the room, painted it and partitioned it for necessary equipment.

The number of patients waiting for eye transplants has increased from 80 patients in 2010 to 194 this year.  Of the 194 patients, 25 have already had their transplants and 23 more need to have the transplants soon.

“We have everything in place except for the lamellar flowhood which is delaying the whole process,” said Dr. Nor Tshering. A lamellar flowhood is a working cabinet where cornea technician prepare tissues under sterile conditions. It is designed to prevent contamination and needs to be set up in the sterile room.

For the preparation of the eye bank, Dr. Nor Tshering said, an Eye Bank Procedure Manual has also been prepared.

The  Eye Bank Procedure Manual will provide a suitable environment for processing human eye tissue for surgical uses. The manual also looks at the technical personnel’s education and guidelines and lays out the procurement and preservation procedures. It would also help the technicians screen the organ donors.

The study which also found out that breast feeding rates in the community is as low as 10% said social status and modernization in their own definitions were the riding factors for the preference for formula feeding.

The findings come at a time when the health ministry has been emphasizing and conducting various awareness campaigns on exclusive breastfeeding for at least the first six months.

The Chief Program Officer of the Early Child Care and Development (ECCD) division, Ministry of Education, Kinley Gyeltshen, confirmed the findings.

“We are currently having trainings on early stimulation though health services give parents proper parenting care for the children,” said Kinley Gyeltshen adding that early stimulation means stimulating a child’s growth and development through extensive breast feeding, eye contact while breast feeding and talking to the child.

The study also found out that the communities lack knowledge on introducing complementary food to infants after the age of six month and on the frequency of giving bath to newborn babies. The study says that bathing frequency in the remote communities decreases as the child grows older. It says that a child is given bath once in months after the child reaches the age of two to three years.

“It is observed that personal hygiene and sanitation is not good with no paved stone path, no drainage system, bushes growing all around the house,” states the study adding that giving bath to a child is a ritual which is strongly ingrained in the culture of the nomadic communities.

In contrary, the study has suggested that ideally a child must be given bath two or three times a week in the pre-crawling months with adequate cleansing during diaper changes and after feeding.

According to the findings, some 95% of the new born babies are given bath minimum once a day while 48% are bathed more than twice a day. The study also found out that because of lack of water proof diapers children in the semi nomadic communities smell of urine even after frequent baths. Mothers in these communities use cut out pieces of Kira, Gho and Tego as diapers.

The study was conducted on the early child care and parenting practices of the semi-nomadic communities of Laya, Lingzhi Lunana, Merek and Sakteng to understand the situations, needs and aspirations of families in a different context.

A total of 334 children under the age of five years, from the five communities, were taken as the sample size.

Following the study, the education ministry has suggested that parenting education programs be conducted in the community ECCD centers which should include information on preparation of complementary food, frequency and quality that can safely be given to infants and on the appropriate frequency of giving bath to newborns.

However, a sturdy challenge at the moment remains that there are no ECCD centers in the communities.

The education ministry is planning to establish ECCD centers in Merak and Sakteng after the establishment of the centers was found feasible in the two areas.

Earlier, Kinley Gyeltshen said, despite the migration patterns of habitats of the two communities of Merak and Sakteng, the ministry has recommended the establishment of the centers.

“There are more than 20 children who are willing to come to the ECCD centers,” he said, adding that the migration pattern of the semi-nomadic communities would not harm the number of children being enrolled in the centers. He said even parents are willing to send their children to the centers.

Save the Children, a non-government organization has granted Nu 500,000 each for the construction of ECCD centers at Merak and Sakteng.

The establishment of the ECCD centers is a part of the education ministry’s pre-school education program where children between the age of three and five years are enrolled to ensure smooth transition to primary school education.

Bhutan and the Indian state of Harayana could

soon be working together to harness some 1500-2000

Megawatt of Hydro power from Bhutan.

Following an official visit to Bhutan, the Haryana Chief Minister Bhupinder Singh Hooda, at a press briefing in Chandigarh, this week, said Bhutan and Haryana reached an understanding on pursuing a mutually beneficial economic collaboration across a number of sectors especially Hydro power

“Bhutan has agreed in principle to partner with the State of Haryana in harnessing its hydropower potential,” said the Chief Minister. He said Haryana is looking at 1,500-2,000 megawatt power from Bhutan as a joint venture project.

The Joint Secretary of the Ministry of Economic Affairs, Sonam P. Wangdi, said Bhutan will be looking at possible cooperation with the State of Haryana.

“We are exploring possibilities of cooperation in various sectors with the government of Haryana,” said Sonam P. Wangdi.

Bhutan and Haryana will be exploring cooperation in agriculture, horticulture, animal husbandry and livestock, industrial development, urban planning and infrastructure development sectors.

The principles and areas of cooperation between the two sides have been enshrined in the Minutes of the Meeting which was signed between Economic Affairs Secretary Dasho Sonam Tshering and Principle Secretary of Industries and Commerce Y S Malik in Thimphu during the Chief Ministers visit.

According to the Minutes of the Meeting, it was agreed that Bhutan and the government of Haryana will explore possibilities of cooperation in the hydropower sector with the intention of government of Haryana undertaking investments in hydropower generation in Bhutan.

The power from Bhutan to Haryana is likely to be through a long term power purchase agreement.

According to the Ministry of Economic Affairs, the minutes are a testimony to the commencement of the mutual economic cooperation and engagement between the government of Bhutan and the State of Haryana in the initially identified areas of agriculture and horticulture, animal husbandry and livestock, energy, industrial development, urban planning and infrastructure development.

The Joint Secretary Sonam P. Wangdi said Bhutan has a vibrant cooperation with the government of India in hydropower projects and in future if there are more projects it will be within the framework.

“We have a sustainable development policy and we have cooperation with the government of India and likewise any new projects in future will be within the respective laws, policies, and rules and regulations,” said Sonam P. Wangdi.

The Chief Minister Bhupinder Singh Hooda said the two sides agreed to constitute sector-wise core groups to take the mutual understanding further while a delegation from Haryana will be visiting Bhutan to specifically delineate the mode of engagement with Bhutan in the area of hydropower development.

“This has been possible on account of a very long and friendly relationship between India and Bhutan,” said the Chief Minister.

Yangchen Zam

from Thimphu

A regional consultative conference on collective action for opening access to agricultural information and knowledge in the Asia-pacific region was discussed in the capital.

The three-day conference discussed the need and importance of information and knowledge management sharing for development in the agriculture sector.

The consultation was considered timely and relevant for Bhutan as the outcome would help in providing future directions for generating and effectively sharing information in the agriculture sector which would boost production.

The agriculture minister Lyonpo Dr. Pema Gyamtsho said, the primary factor that interacts with and influences agricultural productivity is the agricultural information which if used properly would help in the easing of making of decisions in terms of land, labor, livestock, capital and management.

He said that agricultural productivity could be improved by relevant, reliable and useful information and knowledge.

Lyonpo stated the necessity of holding such a consultation for opening up of access to relevant and useful information for smallholder farmers, producers and small rural entrepreneurs engaged in agriculture related businesses.

The Director of Council of RNR research of Bhutan (CORRB), Doctor Tashi Samdrup said despite the scientific advancement in agricultural research, huge challenges still remained in transferring and sharing the knowledge with the end user for whom the information is generated.

“In this era, we know that there is no dearth of knowledge and information, however more than the availability of knowledge, it is the utilization and management of knowledge and information that has been lagging behind” said the director.

The consultation conference was held by CORRB and information and communication services (ICS), MOAF in collaboration with regional agencies like APAARI, FAQ, GFAR and SAARC.

Delegates from Bangladesh, India, Nepal, Pakistan, Sri Lanka, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Thailand, Vietnam also attended the meeting.

With more than Nu 78.5mn disbursed this year alone and the number of applicants increasing by the day, the Group Guarantee Lending and Saving Scheme (GGLSS) has become a hit among small and medium scale entrepreneurs.

Of the total amount of loans disbursed to the entrepreneurs who would have been denied of credit facilities under the normal banking system, the highest amount of Nu 23.70mn was disbursed to entrepreneurs in the Thimphu region.

The Thimphu region has a total of 185 GGLSS clients consisting of 58 groups. The region consists of Thimphu, Paro, Wangduephodrang and Punakha Dzongkhags.

The Phuentsholing region was disbursed with Nu 17.1mn with 120 clients consisting of 37 groups. The Phuentsholing region Includes Samtse and Chhukha Dzongkhags.

A total of 15.1mn was disbursed to the 116 clients consisting of 38 groups in the Mongar region. The Mongar region includes Lhuntse, Trashigang and Trashiyangtse Dzongkhags.

The Gelephu region was disbursed with Nu 12.90mn. The region has 89 clients representing 27 groups.

Apart from the regional offices, the Trongsa liaison office disbursed Nu 4.80mn to 33 clients while the Samdrup Jongkhar office disbursed Nu 4.90mn to 33 clients, each representing 11 groups.

The GLSS is a scheme where a group of entrepreneurs come together to avail loans and take collective responsibility for the repayment of the principal, interest, penalty, if any, and saving of delinquent members of the group.

The GLSS was initiated by the Bhutan Chamber of Commerce and Industry in collaboration with the Bhutan Development Bank Limited in April 2010.

The General Secretary of the BCCI, Phub Tshering said “It is a very successful program.”

In order to be eligible for the GLSS an entrepreneur must be a business license holder registered with the BCCI. He must also form a group consisting of a minimum of three and a maximum of five members with a group leader.

The group is considered as the collateral whereby all members of the group take the responsibility for the timely repayment of the funds.

The loan ceiling is fixed at Nu 150000 at 12% interest rate.

The BCCI is responsible for identification of clients and will coordinate meeting with clients and BDBL.

Under the program, the BCCI has been training entrepreneurs on financial management and providing guidance and business development services to the groups.

The BDFCL has approved Nu 30mn in the first phase of the project which has benefited about 300 micro enterprises under the GGLSS.

More than 1,300 clients have availed the loan from 20 Dzongkhags with majority of the clients being female.

The first phase of the GGLSS was launched in Mongar in April last year.

According to the Environment Impact Assessment (EIA) report for Sankosh Hydroelectric project conducted by the Indian Council of Forestry Research and Education (ICFRE), Dehradun, the construction of the hydropower will have impacts on the flora and fauna of the project area.

The EIA report says the project will have various terrestrial biodiversity impacts which include effects on land and vegetation, loss of land to the reservoir and increased human access to area, and habitation. The most obvious impact of reservoirs on terrestrial ecosystems is the submergence of forest.

Other impacts include the generation of minor micro climatic changes and effects on endangered species.

An official from the Department of Hydropower, Ministry of Economic Affairs, said that the EIA has not been completed and more study is going on.

“Based on the final report we will come up with various management plans,” said the official. The official said that a team has been sent to the project site for further surveys and will take about a month or two to come up with the final report.

According to the EIA, the construction of the main and lift dam would require a land area of 7,619ha. This will result in loss of existing vegetation, occupancy area of the wild fauna and habitat fragmentation.

“The project activity will result in fragmentation in the project area due to construction of dam and other related activities and thus substantial forest land will be lost,” states the EIA report.

This fragmentation of the old forest is likely to affect the ability of species to migrate in response to micro climate change occurring in the area.

“Species with poor mobility or sensitive to dispersal barriers will do less than those with a weedy nature,” states the EIA report. The EIA mentions that preventing fragmentation is essential to maintain the resilience of old forest and forest flora and fauna to micro climate change, it therefore recommends a gene pool of the floral diversity to be conserved through compensatory afforestion.

Other prevention measures include Catchment Area Treatment activity, green belt and landscape restoration activity which will intern restore fauna.

With the project area home to a wide variety of wild animals the construction activities such as noise, movement, building of roads, extraction of stone and soil, construction of buildings and so on is expected to have a negative impact.

The EIA report states that the large hydropower project will have major threats to loss of habitats resulting in decreased prey base for wild animals like tiger, elephant and other primates.

Recently, an Indian media reported that the biodiversity of Buxa Tiger Reserve (BTR) in West Bengal, an important reserved habitat for the highly endangered cats will be affected. The BTR is a 760sqkm reserve forest situated beside an Indo-Bhutan trans-border.

It reported that possible impact of Sankosh Project on BTR’s biodiversity had never been taken into serious consideration.

“Survival of Tigers, at the top of food chain, depends on naturally maintained eco-system and biodiversity of roaming area. Any major alteration of natural flow of Sankosh may severely impact that in its catchments areas within BTR,” reported the media.

The official from the Department of Hydropower said there will be no major alteration of natural flow of Sankosh.

“There will be a diversion while constructing the dam but when it’s finished it will be restored back,” said the official.

He also added that there will not be any impacts to the biodiversity downstream.

However, the project also has in place various measures to limit the impacts. For example a total of around Nu 500mn is proposed for environmental management plan for the conservation of the area. Out of which Nu 50mn is proposed for biodiversity conservation management plan which includes wildlife conservation.

The Indian Food Safety and Standards Authority has found out that several household food manufacturers in India as have misleading and deceptive promising while selling their products.

The brands are currently being prosecuted for violations of Indian food regulations. The companies have been charged for making misleading claims about their food products in either labels or advertisements.

Among them, Britannia Nutria-choice biscuits which claims to be diabetic friendly with complex carbohydrates and no sugar added has been identified as misleading and deceptive.

Another sought after heath drink by Bhutanese, Horlicks, is also under the scanner for misleading and deceptive advertisements. The Horlicks advertisement claims that kids will become taller and stronger after consuming the drink.

Kellogg’s breakfast cereal which claims that people who consume the cereal tend to be slimmer is also among the list.

Other household brands which are also categorized by the Indian food regulatory agency as having misleading and deceptive tag lines includes manufacturers of several children’s health drinks like Complan Memory, Boost and Bournvita Little Champs.

The list also includes Engine Mustard oil produced by Hari vegetable products, used by many Bhutanese consumers in almost every meal as cooking oil.

According to Bhutan Agriculture and Food Regulatory Authority (BAFRA), Bhutan does not have technical capacity to test run the food products and they do not have import control measurement in place for such issues.

Officials of BAFRA said they are in the process of having import control.

He said, apart from having import control mechanisms, there is nothing the government can do as the products are not manufactured in Bhutan.

Meanwhile due to the free trade agreement with Indian and the open border policies, more than 80% of the food products in Bhutan are imported from India.

The import of goods is further pushed by catchy advertisements made on television channels luring Bhutanese consumers.