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In the mid-1990s, Bhutan's financial system was heavily burdened with nonperforming loans that, on average across all financial institutions, were close to 40% of outstanding loans.
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ADB has responded well to the demand from energy deficient and expanding economies by significantly increasing assistance to the energy sector, including for rural areas.
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The main challenges faced by Bhutan's power sector in the mid-1990s were identified as the institutional weakness of the sector, and its inability to promote the country's economic development through power exports and providing access to electricity for rural consumers.
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This country assistance program evaluation report presents an evaluation of the Asian Development Bank assistance to Bhutan during 2001-2009.