Strategy for gross national happiness (sgnh) Annexures to the Main Document



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Passenger transport services

The following strategies are proposed to enhance passenger transport services in the country:


a) With the improvement of road network, passenger transport services would be provided by using comfortable and deluxe buses.

b) Private companies will be invited to provide passenger transport services. This is expected to improve the quality of services, improve professionalism and make the services sustainable.

c) Develop integrated transport infrastructure in the form of bus terminals, bus sheds, parking and public toilets.

d) De-regulate passenger transport services especially in the capital region, with the RSTA concentrating on standards and regulatory aspects.

e) Introduce free pass system for senior citizens (65 years and above) and disabled. The private operators would be compensated through a suitable subsidy package.

f) Continuous monitoring of passenger transport services to ensure efficiency, safety, reliability and quality services.

g) Introduce ICT and Global Positioning System to assist drivers of the hazards/dangers en-route, and monitor and track the movement of passenger buses.

h) Subsidize transport operators on non-profitable routes.

i) Develop vehicle standard for taxi and enforce the use of taxi meters.

j) Identify and develop highway amenities such as eating and resting places, and automobile workshops along major national highway.


Urban Transport

Thimphu municipality is served by 14 buses, which is inadequate during the rush hours but under-utilized during lean hours. With the continuous expansion of urban boundaries, demand for public transport is growing significantly. In order therefore, to reduce traffic congestion, environment pollution, and road injuries and death, it has become necessary for the government to find ways of promoting urban transport, particularly in the capital region. While options are fairly limited because of the terrain and small size of market, study must start now for introducing mass urban public transport. The following urban transport strategies are recommended:


Trolley buses

Trolley buses which run on electricity are widely used in different parts of the world. A trolley bus is powered by two overhead electric cables, from which the bus draws electricity using two trolley poles. Trolley buses are considered particularly advantageous on hilly routes as electric power is more effective than diesel for climbing steep hills and trolley buses’ rubber tires have better adhesion than wheels on steel rails. Trolley buses are especially favored where hydropower is abundant and cheap.


Standard trolley buses are 40 to 60-feet long which have carrying capacity of 41 passenger seats and 42 standees on 40' standard vehicles and 54 passenger seats and 70 standees on 60' articulated vehicles. The 40’ buses weigh approximately 31,500 pounds, uses NiCad batteries for emergency propulsion.
Such trolley buses can be introduced to serve the core municipality of Thimphu. Similar services should also be explored for other larger towns like Paro, Samdrupjongkhar and Gelephu. Number of trolley buses, frequency of services and the route coverage within the urban boundaries for each town will need to be assessed through expert input.
Enhance urban transport

The number of buses operating in urban areas especially in Thimphu should be increased. For this purpose, the Ministry of Finance should continue to subsidize the urban transport as is being done presently so that adequate number of buses is available to operate at an interval of every 10 minutes covering most residential areas, especially during the rush hours. Also, as a short-term measure, such buses should be introduced in other larger towns like Phuentsholing, Samdrupjongkhar, Paro and Gelephu.


Revision and strict enforcement of vehicle emission standards

Emission standards should be revised to international level so that the older and more polluting vehicles are discouraged from plying on the road, thereby also reducing congestion.


Develop safer and convenient footpaths and dedicated bicycle lane in urban centers

Such a strategy will encourage people to walk or use bicycle wherever feasible.


Transport safety

The following transport safety strategies are proposed:


(a) Promote cooperation and collaboration among key stakeholders through the establishment of a National Road Safety Board or the Road Safety Council with RSTA playing the lead role

(b) Improve road traffic management and information network system including road signs (accident data collection and analysis, road information system, signs and signals)

(c) Promote safer roads in consultation with relevant agencies (routine and periodic road maintenance, road widening and improvement works)

(d) Educate road users including pedestrians (road safety campaigns and messages, safety messages, refresher courses)

(e) Develop safer vehicle programmes (vehicle fitness program, enforce standards for automobile workshops, enforce vehicle standards especially taxis and passenger buses)

(f) Develop an efficient incident management or post accident management system (capabilities and facilities for emergency medical and rescue services)

(g) Support enforcement agencies with modern equipment and adequate mobility (consistent enforcement, communication and road safety equipment, vehicles for mobility of enforcement agencies)

(h) Adequate manpower and training of enforcement and regulatory authorities.

(i) Establish road safety fund

(j) Set road safety targets and national road safety plans

(k) Undertake road safety audits on the entire road system.
Transport service delivery

As an agency which has direct and routine dealings with the general public, it is important for RSTA to provide services efficiently and at the minimum time possible. For this purpose, the following strategies are suggested:




  • Deploy ICT and promote e-services

  • Reduce processing time for driving license and vehicle registration

  • Introduce computerized driver testing and licensing system to minimize human intervention to the extent possible

  • Study and implement Intelligent Transport System (bus movement information, speed cameras, CCTV, electronic toll collection, traffic monitoring, emergency communication system)

  • Establish reliable data-bank

  • Develop and enforce service standards and basic facilities in passenger transport vehicles

  • Develop appropriate skills for efficient delivery of service to the public

  • Achieve better compliance to laws, rules and regulations and ensure fair and effective enforcement.



Enabling Environment

The following problems and constraints are identified in planning and implementation of road infrastructure works.


Planning & Design Phase

Non-availability of large scale maps (1:10,000 or larger). Currently topographic maps of only 1:50,000 and 1:25,000 are available which are not accurate for road alignment studies. Topographic maps of 1:10,000 or less are required which should be produced by the DSLR. The user agencies should have access to the diapositives of existing topographic maps to enable them (the user agencies) to produce topographic maps of the required scale. At present issue of diapositives is restricted.


Shortage of Surveyors and Designers

There is an acute shortage of surveyors and design engineers in the DoR. Many of the surveyors are due for superannuation. Given the magnitude of road works foreseen during the 10th plan and beyond implementation of road works will be seriously constrained due to lack of departmental surveyors and design engineers. To alleviate the problem it is proposed to outsource road survey and design works.



Forestry Clearance

Typically issue of Forestry Clearance (FC) which is a prerequisite for issuing environment clearance (EC) takes anything from 3 to 6 months. The procedures for issue of FC require to be simplified which otherwise seriously hamper road implementation programs. The clearance should be issued within 1 month.



Use of local materials

Section 8(1) of the Road Act 2004 states that “The Department and other road agencies shall have priority for the use of natural resource available within the road right of way and road control area over other organizations for collection of resources within the road right of way and road control area without the express written consent of the Department or other road agencies”. On the other hand the Forest Act stipulates that all resources are the properties of the DoF and approval of the Forest authority is required for collection and utilization of resources including from areas within the road right of way.


The present Forest Act and Road Act 2004 need to be revised empowering the DoR to collect and utilize resources from within the road right of way for road works.
Land Acquisition

Land acquisition for roads take considerable time. There is a need for very strong coordination among the concerned agencies. All agencies should ensure that assessment of land and other structures is carried out quickly and payment of fair and just land compensations made within a certain pre-determined period to avoid inconvenience to the persons affected by land acquisition.


Implementation Modality

Construction of the SEWH is the key to the growth of the economic hubs and hence shall be accorded highest priority. In view of the importance accorded to the SEWH and other PNHs in the SGNH, an ambitious work plan has been prepared for the 10th Plan. However, as the local construction industry is still in its fledgling stage it is recommended that the road construction be implemented as a fast track project by involving international contractors or joint ventures between Bhutanese construction firms and regional/international firms to boost the capacity of the local construction industry. Each contract package shall be between 50 to 100 km to make the contract package attractive so that the size and value of each contract justifies investment in specialized equipment viz. asphalt concrete paver for laying asphalt concrete, spot mix plant for production of asphalt concrete and pugmill type of mixing plant required for mixing wet mix macadam for pavement works. The contractor concerned shall be liable for the maintenance of the road stretch for a defect liability period of five years to ensure that construction quality is ensured upfront.



Air Transport
The SGNH recognises the Air Transport Sector as a major contributor to the country’s rapid and sustainable economic growth. Developing a safe, efficient and reliable air transport network within and outside the country has been identified as a priority not only in terms of sustaining the projected growth of tourism under the new policy, but also to promote the development of niche and high value manufacturing and service industries that are time sensitive and command a premium for air cargo.

The development objectives for the Air Transport Sector are:




  • To improve accessibility to and within the country and promote development of tourism. Priorities identified in the air transport sector include expansion of Druk Air’s operations, encouraging foreign airlines to fly in, building an all-weather international airport in Gelephu and establishing domestic air connections to Bumthang and to another location in Trashigang. The airport in Gelephu will also have the potential to service the international air travel needs of the adjoining areas in West Bengal and Assam.

  • Good air connectivity – domestic and international, has been identified among others, as a critical factor for attracting FDI, accessing international markets, fostering a wide range of enterprise activity, employment generation, and achieving strong economic growth.

  • Paro airport to remain as an international airport as it has latent potential for growth through promotion of all-year-round tourism.

  • The alternate strategy for third country exports is to develop efficient air connectivity and promote cluster industries in potential niche and high value manufacturing and services sectors that are highly time sensitive and command a premium for air cargo.

  • Establish legal and regulatory framework to meet international norms, standards, and best practices.

Based on the detailed analysis done, the following are the recommendations for the air transport sector that would act as a catalyst for the growth of the Bhutanese aviation industry:





  1. Undertake institutional reforms in the Department of Civil Aviation (DCA) and Druk Air to achieve the objective of providing a safe, reliable, efficient and sustainable air transport services in Bhutan.

  2. Expand Paro International Airport and construct a crossing runway to enhance safety.

  3. Construct an ILS capable international airport at Gelephu that would assist in developing Gelephu into the economic hub of Bhutan in the near future.

  4. Develop airline business strategies to respond to changing markets and enhancement and renewal of fleet.

  5. Construct domestic air strips in Bumthang and Trashigang to promote domestic air connectivity.


Institutional Reforms (Civil Aviation)

Developing an efficient air transport network has been identified as a priority not only in terms of sustaining the projected growth of tourism under the new policy, but also to promote the growth of cluster industries in potential niche and high value manufacturing and services sectors. Under the new development strategy, major aviation infrastructure development projects are foreseen in the near future involving heavy capital investments. The ongoing developments call for a detailed review of the present institutional arrangements and human resources capacity in the air transport sector to identify the critical shortcomings in the institution and propose remedial measures.


The DCA under the Ministry of Information & Communications (MoIC) is responsible for civil aviation sector in Bhutan. The DCA’s broad functions are:


    • Promote safe, economical, and efficient development of the air transport sector.

    • Provide airport and air navigation services.

    • Implement infrastructure development projects.

The present DCA organisation structure, conceived sometime in the early 1990s, does not sufficiently support the fulfilment of the above functions. The most evident drawback in the present organisation structure is the lack of clear separation of regulator and service provider divisions, which has caused ambiguities and overlap between the two functions, and a resulting compromise in aviation safety standards due to conflict of interests.


As the air transport sector continues to grow the greatest challenge confronting the sector will be to enhance and maintain safety efforts matching public expectations. Bhutan cannot at any cost afford to have an aviation accident. The stakes are too high. However, ensuring aviation safety is not a straight forward issue. It entails deeper understanding and knowledge about organisation and management issues, and requires initiating reforms targeting the system as a whole.

The above analysis shows that institutional reforms must be initiated to achieve the ultimate separation of the regulator and service provider functions. However, the legal instrument that will empower the establishment of an independent Civil Aviation Authority must be developed first. This time lag necessitates taking a two-step reform to achieve full regulatory independence immediately.


As a transitional phase one reform, the DCA should be re-organised. The main feature of the proposed transitional organisation structure is the clear separation of the regulator (regulatory division) and the service provider (airports & ANS division). The transitional arrangement is necessary as the legal, administrative, and technical processes for establishing a Civil Aviation Authority are expected to take some time.
The proposed transitional structure will offer the following benefits:


  • Improved aviation safety and security through separation of regulatory and service provider functions and reduced conflict of interest;

  • Immediate capacity building in key regulatory and development areas; and

  • Reduced administrative and overhead cost through sharing of support services.


Recommendations

  1. Achieve aviation safety and security standards matching internationally acceptable levels through full independence of regulations and regulatory processes, sufficient discretionary powers, and professional excellence.

  • Undertake functional separation of the regulator and service provider through re-organisation of the DCA.

  • Immediately recruit experts to head flight operations section and ANS division until such time sufficient local capacity has been built.

  • Establish an autonomous Civil Aviation Authority, with the powers to make safety regulations and enforcement decisions.

  • Establish fair and transparent regulatory procedures.

  • Establish fair and transparent selection process for safety regulators, based purely on professionalism and merit.




  1. Ensure independence of aviation accident investigation process from both the regulator and the service providers.

  • Establish an Accident Investigation Unit directly reporting to the Minister of Information and Communications. The investigation unit may be structured to manage all types of public transport accidents – surface, air, water, railways, etc.

  • Develop local capacity to lead and manage the investigation processes.

  • For air accidents investigation experts may be hired in from outside the country.

iii) Enable airports and air navigation services providers to operate with greater commercial focus and business enterprise.



  • Undertake functional separation of the regulator and service provider functions through re-organisation of the DCA.

  • Consolidate operation and management of all airports, heliports, and air navigation services under a single organisation.


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