Public Private Partnership Policy (PPP) March 2016.

The main objective of this Policy is to build a sustainable PPP market in Bhutan. Specifically it aims to: Facilitate and promote a structured, institutionalized and predictable approach to PPPs – establishing uniform procedures across various sectors, as follows: Ensure transparency in the structuring, procurement and implementation of PPP projects - ensuring fair and equal access in the award of PPP projects; Promote priority projects that are affordable to the Government and end-users and represent Value for Money; Encourage innovation in the provision of infrastructure and related service delivery; Clearly articulate accountability for outcomes. vi. Support the development of viable and feasible projects as PPPs that offer reasonable returns to the private sector, while protecting the Government from fiscal risks. The Royal Government will manage the fiscal risks, created by assuming certain responsibilities and obligations under PPP Agreements, within the Royal Government’s overall financial and budgetary framework; adding and improving capacities where needed.
The scope of this Policy covers all infrastructure and services where the private sector is able to provide public infrastructure and services that results in cost effectiveness and efficient delivery of the contracted obligation for the public good. This Policy will apply for private provision of services be it using existing or new public infrastructure or direct provision of public services. PPPs have taken place mainly in economic infrastructure, such as transport and power production. However, recently, attention has also turned to social infrastructure, such as health and education, and other services (facilities management, etc.).
PPP projects must benefit: i. The Institutions, as a viable and beneficial infrastructure and service delivery option for the people of Bhutan. ii. The users of services, as they will receive more accessible, affordable, reliable and safe services that are delivered to prescribed standards of quality. iii. The society, by supporting the furtherance of important societal/ GNH goals, such as, employment, the environment, and social equity. iv. The private parties, as they will receive investment opportunities that are financially viable and bankable.