Under the European Union (EU) Multi-Annual Indicative Programme (MIP) 2014-2020 the EU is supporting the Royal Government of Bhutan (RGoB) through Budget Support in two strategic sectors for the country: 1) Local authorities and civil society and 2) Sustainable agriculture and forestry (i.e Renewable Natural Resources in Bhutan). In 2017, two Financing Agreements under the MIP were signed with Bhutan: one regarding Capacity Development for Local Government and Fiscal Decentralisation for a total amount of EUR 20 million to be implemented during 2017-2022; and the other for Rural Development and Climate Change Response for a total of EUR 21.5 million to be implemented during 2017-2022.

The Service Contract “Technical Assistance for Renewable Natural Resources and Climate Change Response and Local Governments and Decentralization - Bhutan” is known as the “EU Technical Assistance Complementary Support Project” - EU-TACS. It provides Technical Assistance (TA), complementary capacity building support, for the implementation of the Royal Government of Bhutan’s (RGoB) sector reforms, enabled by the EU’s provision of Budget Support. The EU – TACS project commenced on 15th March 2019 and provides capacity support for the 11th and 12th RGoB’s Five Year Plan (FYP). The project is due to be completed by 14th July 2021.
As per the original Terms of Reference (ToR), the overall objective of the EU-TACS project is: “to assist Bhutan in achieving the reforms envisaged in its 11th and 12th Five Year Plans in two sectors (1) Renewable Natural Resources including Climate Change Response and (2) Local Governments and Decentralization, through complementary support to the on-going EU budget support programmes”.
The key counterparts of the project are the Gross National Happiness Commission (GNHC); Ministry of Agriculture and Forests (MoAF); the Department of Local Governance (DLG), Ministry of Home and Cultural Affairs (MoHCA); and the Bhutan National Statistics Bureau (NSB). The other beneficiaries are primarily the Local Government administratively organised into 20 Dzongkhags and 205 Gewogs. 
The EU-TACS project is organised under three key Results Areas:
1.    Result 1 (A1): Capacity Building for Individuals and Groups. The modalities for this and all the Results Areas include: In-county training; overseas training; study tours and training workshops.
2.    Result 2 (A2): Capacity Building for Organisations: Research for Policy Development: This Result Area is based on a five-stage policy development process of: dialogue; research; design; in practice and evaluation. 
3.    Result 3 (A3): Improvements to Sector Statistical Systems: The EU-TACS supports a six-stage statistical process of: design, collect, analyse, report, disseminate and utilise. Emphasis will be given to support the newly formed RNR Statistics Division at MOAF, improving decentralised data collection systems at LG level

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