Of Bhutan’s rural population, 42 percent live more than one-hour by foot from the nearest all-season road–and half of those live between a half-day to a three-day walk from such roads. These isolated communities depend on animals and people to carry loads and have poor access to medical care and post-primary schools. Transportation costs in remote areas are between 50 and 70 times higher than in areas with motorized transport access. The high transportation costs keep farmers from diversifying crops or growing marketable crops, cause damage to perishable crops taken to the market, and limit availability of extension services, thus impeding farming output and income.

3,771 households have been provided easier access (about half-a-day walk) to all-season roads and important socio-economic places in five districts. Travel time to important socio-economic places and transport costs have both declined by around 75 percent.

Highlights:
- 28 percent of the total 13,500 households (40 villages) that are in need of all-season road access in these five districts were connected by the new feeder roads.
- Most beneficiaries now use motorized transport services, rather than portering or animal transport for taking goods to and from markets. Transport costs have been reduced by 75 percent.
- Economic activity has improved: many shops have opened in the project areas and residents do not need to travel as far to purchase essential commodities. Representatives of the rural credit agency now make monthly visits to connected villages to collect and process credit requests.
- Residents of connected villages pay only 4-14 percent more for locally-traded goods than at the town market, while residents of control villages (not connected by roads) pay 14-30 percent more than at the town market.
- Farmers have started purchasing new tools and new seeds to diversify their agricultural produce from mostly cereal and rice to high-valued vegetables, cash crops and fruit trees which are in higher demand than cereals at the neighboring markets. On average, income from the sale of agricultural produce has increased by 64 percent.
- School enrollment has increased in villages now connected to non-community schools by roads.
- Medical supplies and food rations are now delivered on time right to the door of the basic health units and schools. Ambulances and cars are now able to transport sick patients to district hospitals.
- Villagers can now use motorized transport to carry heavy construction materials, which mules and porters are not able to. Many houses, school and health unit buildings are under renovation. For example, banana leaf roofs are being replaced with corrugated galvanized iron sheets, water standpipes and latrines are being installed.

A follow-up Second Rural Access Project will continue this work. In addition, it will support scaling up of community-based maintenance contracting in other districts. A socioeconomic impact monitoring study will be conducted to monitor the progress and outcomes of the project.