Project Concept Note

Project Title: Formulation of National Human Settlement Policy (NHSP), sectoral

policies/laws and capacity building for national/local governments.

Background
Bhutan’s urbanization rate is one the highest in the world (7% during 2003-2005). According to
the Population and Housing Census of 2005, 31% of the country’s entire population was living in
urban areas in 2005. The GNHC’s vision document – “Bhutan 2020: Vision for Peace, Prosperity
and Happiness”- estimates that by 2020, 50% of the country’s entire population would live in
urban areas, while the Ministry of Works and Human Settlement’s (MoWHS) own research
document (Bhutan National Urbanization Strategy) in 2008 found that by 2020, 73% of entire
population would move to urban areas. Such a rapid rate of urbanization exerts a tremendous
pressure on existing urban infrastructures and services, housing and limited land resource,
argiculture land and forests.
The Ministry of Works and Human Settlement is mandated to provide policy guidance on
provision of high quality infrastructure and planning services in order to promote safe and healthy
human settlement in the country. Realizing the need for a dedicated and professional department
to oversee and guide the development in a planned manner, the Royal Government of Bhutan has
approved the formation of Department of Human Settlement under the MoWHS. The Department
of Human Settlement (DoHS) was formally separated from the Department of Urban Development
and Engineering Services with effect from 1 st December 2011. The new department will not only
concentrate its efforts in urban areas but also guide and promote safe and healthy settlements in
rural areas across the country.
This DoHS is mandated to “achieve balanced and sustainable development of human settlements,
…, conservation of environmental character and culture, and provision of safe and affordable
housing for all”. While the department was formed with broad mandates, , it has yet to have
policies on human settlement planning and development in order to address the following
challenges.

Challenges

The MoWHS has yet to have a clear policy on human settlement planning and development. This
has weakened its functioning and further leads to haphazard and un-regulated settlement and
development especially in semi-urban or rural township areas. Bhutan’s urban settlements are
even more exposed to various types of environmental risks.Because of the lack of a human
settlement policy, the MoWHS is not able to prepare national physical planning laws and related
by-laws. Planning laws are required because human settlement and physical planning are very
sensitive issues, which necessiates legal backing to protect public and / or national interest. There
is an urgent need to prepare the national human settlement policy (NHSP), along with a planning
law.

Bhutan is prone to multiple natural hazards, such as earthquakes, floods, landslides, forest fires -
and climate change further impact the country’s vulnerable mountain eco-system. The lack of a
national human settlement policy increases risks and vulnerabilities related to natural disasters,
climate change and environmental sustainability. Rapid urbaniation may for example lead to the
loss of prime agriculture land and clearing of forests due to urban expansion. Development will
extend to slope terrain with increased risks of natural disasters like landslides and environmental
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degradation. Most towns and urban centres in Bhutan are located along the river valleys, and
many as close to the river bank as possible. As the rivers originate from the high glacial fed
mountains from the north, almost all the towns situated along the banks are prone to Glacial Lake
Outburst Floods (GLOFs) and flash floods. Settlements are therefore at risk of loss of human lives
and damages to social and physical infrastructures, livestocks and properties downstream.

Timeframe and scope of the project

The project shall be divided into three phases. The time frame for the first phase is six to ten
months depending up on the availability of the taskforce members for the project. The second
phase of the project consists of drafting of sector specific policies such as a housing policy,
national planning act and by-laws. The third and the last phase shall include capacity building for
local or national agencies in order to implement the policy, laws and by-laws. The scope of phase
2 and 3 will be discussed and designed towards the end of phase 1.

The general scope of the first phase include, but not limited to, the following:
1. The policy shall be based on environmental sustainability, disaster risk reduction and
climate change;
2. Emerging environmental issue like solid waste management in line with provisions of the
relevant laws will be part of the policy,
3. Salient features of housing policy such as eco-green construction, use of sustainable and
local materials, orientation of buildings for utilizing solar heat, etc. shall be integrated in
the settlement policy,
4. The objectives of the policy should be drawn from GNH and its variables including MDGs,
5. The policy will also integrate watershed management for ensuring sustainable drinking
water sources to general public in close coordination with the relevant agencies,
6. Earthquake resistent construction techniques, and fire proof building, etc will also be
featured in the policy,
7. Rural-urban migration measure through growth centre strategies, economic hub
develoment, provision for special economic zone, etc. will be included,
8. The policy should also compliment protection and conservation of forests and nature in
order to fulfill our constitutional requirement and for environmental sustainability,
9. It will have to create a plat form capable of providing a balancing act amongst the
environmental sustainability, food self sufficiency, rich cultural heritage and traditional
setting, etc.

The main approach of the policy preparation shall be through the formation of a multi-sector
taskforce where the interests of all agencies are represented. The taskforce shall function in line
with specific ToR while stakeholder consultation shall be led and facilitaed by the DoHS/MoWHS
in coordination with the UNDP.

Expected outcomes (phase 1)

National human settlement policy integrating environmental issues, disaster risk reduction,
climate change and housing.

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Project management arrangements
In MoWHS, a part-time Project Director, full-time project manager along with full-time project
assistant for administration and management of the project have been appointed in the DoHS.
Office space has been provided along with furniture and one vehicle shall be provided by the
MoWHS on demand or whenever the project office requires it. Services of a project accountant
shall be provided by the Accounts Division of the MoWHS. The project office will not only
administer and manage the project but also monitor the progress of the project. It will also
administer/monitor the multi-sector taskforce whether they are performing in accordance with
their road map and agreed ToR.
UNDP Bhutan will provide guidance for phase 1 and seek to involve relevant development
partners. UN-Habitat was previously involved in the preparation of a similar project proposal and
project document for the MoWHS, and their technical assistance to review and finalize the draft
policy will therefore be sought as agreed with the UN Habitat office in Bangkok.

Project organizational set-up

Activities and budget requirements

Expect CT outputs including Proposed

indicators and 18 months’
target
CT Output 5.2.3
Disaster/climate risk
reduction mainstreamed into
national policies and plans
Indicator:
Number of plans
mainstreaming disaster risk
reduction and management
Target:
National Human settlement
Main activities and sub-activities  budget
(in USD)
Main activity 1:
 Formation of multi-sector taskforce and
desk research on existing documents
Sub-activities:
1. Drafting of ToR for the taskforce and
designing of road map for preparing a policy 7,000
by DoHS
2. Formation of 10-15 member multi-sector
taskforce. The taskforce shall be led by a
senior officials of the DoHS.
3. Desk research on various relevant policies,

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policy integrating
environmental concerns, DRR
and climate change
formulated.
CT Output 5.2.1 Capacity of
national focal agencies,
relevant sectors and disaster Main activity 2:
management authorities at all
levels strengthened to
implement disaster
management framework.
Sub-activities:
Indicators:
Number of Government
officials trained in Disaster
Risk Reduction
Target:
1. About 15 national
taskforce members
including some
participants from local
governments participating
in policy-formulation
integrating environment
concerns, DRR and climate
change.
2. All relevant stakeholders
at national, dzongkhag
and municipal levels
sensitized in integrating
environment concerns,
DRR and climate change.
Main activity 3:
acts/laws, strategies and standards.
4. Workshop with the Thrompons, ES and
other municipal authorities.
5. National workshop with the relevant
stakeholders/national agencies
6. Purchase of basic office equipments for the
small project team formed under the DoHS
 Draft national human settlement policy
formulated through integration of
environmental concerns and disaster risk
reductions.
1. Retreat or workshop for the taskforce for
preparing a draft (aprox. US$ 10,000)
Multi-sector taskforce retreat at Paro (2 x 1
week) to formulate draft policy.
2. Fine tuning exercise (approx. $ 2000.)
This will be done after making draft
presentation to the Ministry/MoWHS,
Cabinet/Government if required, and also
19,000
the other principal stakeholders like Bhutan
Chamber of Commerce; Environment, Land
and Urban Development Committee of the
Parliament.
3. Sensitization workshop (US$ 7000).
Conducting workshop either region-wise (4
major regional workshops) or Dzongkhag
wise (20 workshops) depending upon
availability of budget. Participants include
local government leaders including Dasho
Dzongdas, Dzongkhag Tshogdu
chairpersons, Thromde Thuemis, heads of
relevant regional institutions and
government regional offices.
 Inputs provided and review of the draft -
policy by UN-Habitat

Ms. Mariko Sato, Chief, UN-Habitat

Bangkok Office,

Telephone No. +66 2 288 1369

Fax: +66 2 288 1089
Email: habitatbkk@un.org
Regional website www.fukuoka.unhabitat.org
Website: www.unhabitat.org

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Total   2
6,000