Bhutan : South Asia Subregional Economic Cooperation Road Connectivity Project
ADB and the Government of Bhutan are working together to bring safer roads and more opportunities to the southern part of the country. The South Asia Subregional Economic Cooperation Road Connectivity Project will build 68.3 km of the vital Southern East West Highway between the towns of Dewathang and Nganglam, which is one of the main crossing points between Bhutan and India. The new stretch of road will improve the connection between Bhutan''s main northsouth highways and India''s national highway network. As a result, travel time between Nganglam and Dewathang is being reduced by 80% from 12 hours to just a few hours. The project is also building a 1.2 km access road between Bhutan''s border with India and the Pasakha industrial estate, reducing travel time by 90 percent from nearly two hours to about 10 minutes. Border crossing stations in Phuentsholing City the town of Alay will also be improved, and a 2.7 km access road to the national highway will be built.
Project Details
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Project Officer
Norbu, Tshewang
South Asia Department
Request for information -
Country/Economy
Bhutan -
Modality
-
Sector
- Transport
Related Projects
| Project Name | South Asia Subregional Economic Cooperation Road Connectivity Project | ||||||||
| Project Number | 39225-034 | ||||||||
| Country / Economy | Bhutan |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development |
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| Sector / Subsector | Transport / Road transport (non-urban) |
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| Gender | Some gender elements | ||||||||
| Description | ADB and the Government of Bhutan are working together to bring safer roads and more opportunities to the southern part of the country. The South Asia Subregional Economic Cooperation Road Connectivity Project will build 68.3 km of the vital Southern East West Highway between the towns of Dewathang and Nganglam, which is one of the main crossing points between Bhutan and India. The new stretch of road will improve the connection between Bhutan''s main northsouth highways and India''s national highway network. As a result, travel time between Nganglam and Dewathang is being reduced by 80% from 12 hours to just a few hours. The project is also building a 1.2 km access road between Bhutan''s border with India and the Pasakha industrial estate, reducing travel time by 90 percent from nearly two hours to about 10 minutes. Border crossing stations in Phuentsholing City the town of Alay will also be improved, and a 2.7 km access road to the national highway will be built. The new roads and facilities will help develop the capacity of the country's engineers and government officials to build modern transport infrastructure. The project is designed to make Bhutan more competitive in terms of international trade and spread the benefits of cross-border commerce with its regional neighbors to people across the country, including the poorest and most disadvantaged. | ||||||||
| Project Rationale and Linkage to Country/Regional Strategy | In landlocked Bhutan, high-quality roads are one of the most effective ways of improving people''s lives. The about 720,000 people in the country are dispersed among beautiful and often rugged and remote mountains. Small roads that link to the country''s two major highways are vital for people in remote areas to reach clinics, schools and other government services. The major highways increase Bhutan''s trade with its economically vibrant neighbors and also benefit the entire South Asia region as they allow goods and services to flow through the country. Completing and improving the Southern East-West Highway, a route that could provide a quicker and safer passage across the country, is particularly important for improving national and international trade, and helping people in Bhutan become more prosperous. Improving Bhutan''s road system, and border trade facilities, is an effective way of improving the lives of the poorest people in the country while at the same time benefiting the overall economy and that of the region as a whole. | ||||||||
| Impact | Cross-border movement of goods between Bhutan and its neighboring countries improved. |
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| Project Outcome | |
|---|---|
| Description of Outcome | Road connectivity and transport efficiency in the project areas in Bhutan improved. |
| Progress Toward Outcome | Project is ongoing and outcome indicators will be assessed during Project Completion Review Mission. |
| Implementation Progress | |
| Description of Project Outputs | Roads built and trade infrastructure established. Road construction and maintenance capacity improved. Eco-friendly transport promoted. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Mini Dry Port (MDP) in Phuentsholing was completed in February 2019 and under operation from November 2019. The MDP was the main deport for distribution of essential goods imported during the COVID-19 pandemic. It enhanced government's COVID-19 pandemic containment efforts. The Alay Land Custom Station (ALCS) construction was completed on 10 March 2022 and used by customs and private clearing agents. On 17 June 2022, ALCS was partially damaged by the debris overflowed from Bhawanijohra landslide. Government has assessed the damage and repairing works is expected to be commissioned soon. The construction of 2.7 km northern bypass road in Phuentsholing city was completed in March 2021. 1.2 km of access road between Pasakha industrial estate and ALCS was completed in June 2019 (under three packages: Package 1: Construction of Bhalujhora Bridge on June 2019 Package 2: Construction of multi-cellular box culvert, land custom station and roadworks in May 2019 Package 3: Construction of Gabion structure in March 2019). To promote ecofriendly transport, two units of EVS were procured in December 2020 and one unit of HEV was procured in March 2021.6. The following manuals were prepared for future use by the engineers of DOR: (i) Road Safety Audit Manual, and (ii) Climate Change Resilient Road Design Report. Road maintenance plans and budgets are to be prepared using the road asset management system. 34 officials from DOR and MOWHS attended capacity building trainings programs abroad. A total of 49 engineers from various regional offices of DOR were trained in-country on various programs. The project also supported procurement of additional equipment for capacity enhancement and timely road maintenance. The additional equipment includes: one pick-up truck, one van to install ROMDAS, snow clearing and handheld roller machines. |
| Geographical Location | |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The project is categorized 'B' as per ADB's Safeguards Policy Statement (SPS) 2009 as there are no environmentally sensitive features in the project. An initial environmental examination (IEE) report, including an environmental management plan (EMP) for the project has been prepared following ADB's Safeguard Policy Statement (2009), government guidelines, regulations, and policies. Meaningful consultations have been conducted throughout the project preparation stage and all concerns of the affected persons and stakeholders have been incorporated in the initial environmental examination and the EMP. A grievance redress mechanism is proposed to continue receiving feedback and complaints from affected parties and addressing them during the construction stage. Implementation arrangements ensure that the PMU and PIUs have adequate capacity to manage environmental impacts through consultant support and capacity building. Environmental monitoring is being carried out regularly. The semi-annual environmental monitoring report for January-June 2022 reporting period has been prepared, submitted and disclosed. |
| Involuntary Resettlement | The project is categorized "B" as no significant Involuntary Resettlement impacts envisaged. Social impacts have been assessed and mitigation measures recommended in compliance with ADB's Safeguard Policy Statement (2009), government guidelines, regulations and policies. Resettlement plans have been prepared. EA is providing update in the quarterly progress reports and submitting semi-annual reports. For all works packages, resettlement plans (RPs) or Due diligence reports as appropriate are prepared as part of the bidding document. |
| Indigenous Peoples | The project is categorized "C" for Indigenous People safeguards as per ADB's Safeguards Policy Statement (SPS) 2009 as there are no indigenous peoples living in the project areas. No impacts anticipated. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | DOR and PT ensured that completed RPs and resettlement monitoring reports are made available to the affected people and are submitted to ADB for posting on its website. DOR and PT ensured that IEEs and environmental monitoring reports are made available to the affected people and are submitted to ADB for posting on its website. |
| During Project Implementation | DOR and PT will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions, (c) updated procurement plan, and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 3 months of physical completion of the project components under DOR or PT respectively. To ensure the Project continue to be both viable and sustainable, project accounts and the executing agency APFSs, together with the associated auditor's report, should be adequately reviewed. |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (March 2013, as amended from time to time). |
| Procurement | In order to accelerate the implementation, the government envisages the application of advance contracting for the project. All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (March 2013, as amended from time to time). |
| Responsible ADB Officer | Norbu, Tshewang |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | BHRM |
| Executing Agencies |
Department of Roads Phuentsholing Thromde |
| Timetable | |
|---|---|
| Concept Clearance | 21 Feb 2014 |
| Fact Finding | 24 Feb 2014 to 07 Mar 2014 |
| MRM | 23 Apr 2014 |
| Approval | 31 Jul 2014 |
| Last Review Mission | - |
| Last PDS Update | 07 Dec 2022 |
Grant 0400-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 31 Jul 2014 | 05 Sep 2014 | 05 Sep 2014 | 31 Dec 2019 | 31 Dec 2022 | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 37.61 | Cumulative Contract Awards | |||
| ADB | 18.96 | 25 Jan 2023 | 18.83 | 0.00 | 99% |
| Counterpart | 18.65 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 25 Jan 2023 | 18.61 | 0.00 | 98% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3149-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 31 Jul 2014 | 05 Sep 2014 | 05 Sep 2014 | 31 Dec 2019 | - | 21 Jan 2018 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 31.39 | Cumulative Contract Awards | |||
| ADB | 31.39 | 25 Jan 2023 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 25 Jan 2023 | 0.00 | 0.00 | 0% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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Tenders
Contracts Awarded
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| SASEC Road Connectivity Project: Procurement Plan | Procurement Plans | Apr 2019 |