Bhutan : Air Transport Connectivity Enhancement Project

Transport / Air transport

Paro International Airport (PIA), Bhutan's only operating airport until recently and still the only one providing international air access, is located near the capital city of Thimphu in the western region. Due to the lack of domestic air connectivity, other regions of the country - particularly in the center, south, and, east - have limited access to regional and global markets. The tourism industry, for instance, a substantial economic contributor, is much better developed in the west compared with other regions. This imbalance in accessibility - to opportunity, enterprise, markets, and services - has been an obstacle to achieving broad-based economic growth, which is one of the government's major development goals.

In view of the anticipated increase in aircraft movements and passenger volume, current deficiencies must be addressed, and initial developments undertaken by the government at the three domestic airports expanded to strengthen safety and security, and enhance capacity. The project will include (i) improving air operation safety by providing required air rescue and firefighting system facilities, aeronautical communication and navigation, and runway drainage; (ii) strengthening security with an airport cordon around the perimeter; and (iii) expanding capacity for terminal space, aircraft parking apron, and taxiway. The improvements were prioritized based on development needs identified in updated master plans for the three airports, projected traffic forecasts in terms of peak hour aircraft movements and passenger volume, as well as updated assessment of current developments and priorities for air transport in the country. By improving safety, security, and capacity at the three domestic airports, the project will help ensure operation of aircrafts with adequate capacity for continued passenger traffic growth and improved service and safety.

The project and its outcome is consistent with the strategic objective set out in the interim country partnership strategy, 2012-2013: to assist the government in achieving broad-based economic growth. It will enhance the country's air transport connectivity, help improve access to regional and global markets throughout the country, and support tourism growth in less-developed regions. The project is included in the Bhutan country operations business plan, 2012-2014.

Air transport connectivity improved

Safety, security, and capacity at four domestic airports in Bumthang, Gelephu, Paro, and Yonphula improved

Infrastructure at four domestic airports in Bumthang, Gelephu, Paro and Yonphula improved

Bumthang Airport: Works completed in 2015 for perimeter security fence, new access road, apron and taxiway, and car park; asphalt overlay not done due to funding shortage (significant funds allocated to Yonphula); terminal building substantially completed

Gelephu Airport: All works completed in April 2015: installation of perimeter security fence, runway drainage and flood protection work, and a terminal building with basic passenger facilities; aviation security staff quarters operational; site development works completed using RGOB funds

Original scope of four parking management systems completed in 10 Oct 2021; additional two systems completed on 10 Dec 2021

Yonphula Airport: All works completed by Feb 2021; removal of hills, vehicle procured, and new runway constructed; lake dredging works (desilting) completed with RGOB funds in May 2020

Consultations with communities residing in and around the airport sites have been carried out, and the details of consultations, feedback received, requirements for further consultation and grievance redress mechanism have been included in the IEE report.