| Project Name |
Phuentsholing Township Development Project |
| Project Number |
50165-002 |
| Country / Economy |
Bhutan
|
| Project Status |
Active |
| Project Type / Modality of Assistance |
Grant
Loan
|
| Source of Funding / Amount |
| Grant 0573-BHU: Phuentsholing Township Development Project |
|---|
| Asian Development Fund |
US$ 24.26
million
|
| Loan 3668-BHU: Phuentsholing Township Development Project |
|---|
| Concessional ordinary capital resources lending |
US$ 28.74
million
|
| Grant 0765-BHU: Phuentsholing Township Development Project - Additional Financing |
|---|
| Asian Development Fund |
US$ 10.00
million
|
| Loan 4019-BHU: Phuentsholing Township Development Project - Additional Financing |
|---|
| Concessional ordinary capital resources lending |
US$ 18.50
million
|
|
| Strategic Agendas |
Environmentally sustainable growth
Inclusive economic growth
|
| Drivers of Change |
Gender Equity and Mainstreaming
Private sector development
|
| Sector / Subsector |
Agriculture, natural resources and rural development /
Rural flood protection
Water and other urban infrastructure and services /
Other urban services
-
Urban sanitation
-
Urban sewerage
-
Urban solid waste management
-
Urban water supply
|
| Gender |
Some gender elements |
| Description |
The proposed Amochhu Land Development and Township Project will develop 66 hectares (ha) of riparian land near the city of Phuentsholing that is located adjacent to the Amochhu River on Bhutans southwestern border with India. The project will provide protection from floods and erosion, and construct smart urban infrastructure to allow phased urban expansion. A modern township will be designed on modern sustainable principles of equity, livability, and competitiveness, and it will be integrated into the fabric of the existing municipality and preserve Bhutans unique architectural heritage. The project will also protect the existing and new towns from floods and riverbank erosion which currently threatens lives and livelihoods and disrupts connectivity with nearby communities. |
| Project Rationale and Linkage to Country/Regional Strategy |
Bhutan is a mountainous country with limited suitable land for urban growth. This particularly applies for Phuentsholing which has reached its limits for expansion, being constrained by the Amochhu River and surrounding steep terrain and conservation areas. Phuentsholing is Bhutans busiest border city with India, located on two South Asia Subregional Economic Cooperation trading corridors, and is the countrys largest commercial and industrial hub. This Project will develop a modern township designed on modern sustainable principles of equity, livability, and competitiveness, and it will be integrated into the fabric of the existing municipality and preserve Bhutans unique architectural heritage. The Project will also rotect the existing and new towns from floods and riverbank erosion which currently threatens lives and livelihoods and disrupts connectivity with nearby communities. |
| Impact |
a. Balanced and sustainable development of human settlements ensured. b. Smart growth principles applied in planning and development. |
| Project Outcome |
|---|
| Description of Outcome |
Phuentsholing's urban area protected from floods and expanded with improved amenities and services. |
| Progress Toward Outcome |
The 4.7 km climate and erosion-resilient river walls was completed in November 2022. The Flood Early Warning System (FEWS) is expected to be installed by Q1 2025; an interim FEWS has been installed and operational and operational at the project site. The construction of common urban infrastructure commenced in November 2022 and expected to complete by May 2025. The tendering of the commercial plots will be guided by the various consulting services packages (investment promotion advisor, sustainable township management capacity and development and investment promotion and transaction advisory). |
| Implementation Progress |
|---|
| Description of Project Outputs |
Flood and erosion protection measures installed. Township management systems installed. Municipal Infrastructure constructed. |
| Status of Implementation Progress (Outputs, Activities, and Issues) |
Construction of 4.7 km climate and erosion-resilient river walls was completed in November 2022.66 ha. of land reclaimed. The National Center for Hydrology and Meteorology will procure the equipment from Q3 2023 and complete installation by Q1 2025. Interim Flood Early Warning System installed and operational. The consulting package CS04 Investment Promotion Advisor is expected to be recruited by Q4 2023. The remaining two packages will be recruited in 2024.The construction of common urban infrastructure commenced from November 2022 and expected to be completed by May 2025. |
| Geographical Location |
Phuentsholing |
| Summary of Environmental and Social Aspects |
|---|
| Environmental Aspects |
According to classification system of Safeguard Policy Statement 2009, the project is category A for environment safeguards, and an environmental impact assessment (EIA) study was prepared. The EIA report was disclosed in ADB's website on May 2017. The scope of the EIA covers the government's comprehensive plan to develop 460 ha. of new urban land along the banks of the Amochhu River, although the current project area is limited to 66. ha on the left bank. Based on the EIA, most adverse impacts occur during construction due to river bed levelling, the transportation of construction materials and equipment, and the construction of urban facilities. Mitigation measures in the environmental management plan (EMP) are part of the project implementation. During the project preparation phase, two public consultations were carried out and the results were documented in the EIA. As per the Environmental Assessment Act 2000, National Environmental Commission has issued Environmental Clearance for the project with validity of 5 years. To verify monitoring reports, an independent environmental monitoring expert was recruited on April 2019 and mobilized on July 2019. Environmental experts under the support consultants help on monitoring the implementation of environmental safeguards activities. Starting January 2019, the environmental monitoring report is submitted on a semi-annual basis. To determine the effectivity of EMP, an environmental monitoring plan is being implemented to check the air and water quality, noise levels, and health and safety at worksites. Additionally, aquatic and terrestrial wildlife surveys are being conducted to monitor any impact from construction. Due to COVID-19 pandemic, a portion (about 10%) of the project site is utilized as location for temporary shelters. An environmental due diligence report was prepared to determine the potential impacts of project's construction. Based on the report, the EMP has enough measures to mitigate impacts, and people have access on the grievance redress mechanism register. |
| Involuntary Resettlement |
No involuntary resettlement is required and the project has been classified as category C for involuntary resettlement. |
| Indigenous Peoples |
No indigenous peoples are affected and the project has been classified as category C for indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation |
|---|
| During Project Design |
Key stakeholders have been consulted during project design. Two public consultation meetings have been held during preparation of the EIA. |
| During Project Implementation |
Stakeholder communication plan is developed where progress status during construction works and construction issues have to be communicated to the key stakeholders at least once a year. |
