39225-034: South Asia Subregional Economic Cooperation Road Connectivity Project | Asian Development Bank

Bhutan: South Asia Subregional Economic Cooperation Road Connectivity Project

Sovereign (Public) Project | 39225-034 Status: Active

ADB is helping Bhutan bring safer roads and more opportunities to the southern part of the country. The project will build 68.3 kilometers of the southern East-West Highway between the towns of Dewathang and Nganglam. It is also constructing access roads and improving border crossing stations, which will facilitate transport efficiency within Bhutan and with neighboring countries.

Project Details

Project Officer
Georget, Johan South Asia Department Request for information
Country
  • Bhutan
Modality
  • Grant
  • Loan
Sector
  • Transport
 
Project Name South Asia Subregional Economic Cooperation Road Connectivity Project
Project Number 39225-034
Country Bhutan
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0400-BHU: South Asia Subregional Economic Cooperation Road Connectivity Project
concessional ordinary capital resources lending / Asian Development Fund US$ 18.96 million
Loan 3149-BHU: South Asia Subregional Economic Cooperation Road Connectivity Project
concessional ordinary capital resources lending / Asian Development Fund US$ 31.39 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming 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 north south 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.
Project Outcome
Description of Outcome Road connectivity and transport efficiency in the project areas in Bhutan improved
Progress Toward Outcome

Due to the prevailing security situation near the southeast border, the implementation of Nganglam-Dewathang Road is currently suspended by the Government. Implementation is unlikely to resume under the current Government.

Civil works contract for the improvement of Pasakha Access Road (PAR) is terminated in January 2017 and has been retendered as 3 packages under NCB. IFB for the 3 packages published on 4 July 2017. Rebidding is ongoing and contracts are to be awarded in October 2017. Direct contracting for interim works on the improvement of Pasakha Access Road approved by ADB on 12 April 2017; contract awarded to M/s Rigsar Construction Pvt. Ltd., Bhutan in Q2 2017.

Bidding for the design and build for the construction of the Mini Dry Port was advertised on 10 August 2016; contract awarded in March 2017, work order and environmental clearance issued.

Detailed design for the land customs station is significantly delayed due to the pending reclamation of the land.

Detailed design of the Northern bypass road was finalized in October 2016. Two contracts of about $6.7 million (ADB share: $5.5 million) awarded in Q3 2017 for the construction of the Northern Bypass.

Implementation Progress
Description of Project Outputs

1. Roads built and trade infrastructure established.

2. Road construction and maintenance capacity improved

3. Eco-friendly transport promoted

Status of Implementation Progress (Outputs, Activities, and Issues)

Construction of southern east-west highway between Nganglam and Dewathang is currently on hold due to the security situation. ADB will wait for further advice from the Government regarding the resumption of activities for Nganglam-Dewathang Road.

Civil works contract for the improvement of Pasakha Access Road was terminated in January 2017 and package has been retendered as 3 smaller packages under NCB. Rebidding ongoing, 3 NCB contracts to be awarded in October 2017. Direct contracting for interim works on the improvement of Pasakha Access Road approved by ADB on 12 April 2017; contract awarded to M/s Rigsar Construction Pvt. Ltd., Bhutan in Q2 2017.

Tendering for the mini dry port commenced in August 2016, contract awarded in March 2017, work order and environmental clearance for the design and build of mini dry port issued.

Detailed design for the land customs station is delayed due to the pending reclamation of the land.Detailed design of the Northern Bypass road was finalized in October 2016. Tendering commenced in January 2017; FBER approved by ADB on 15 June 2017; two contracts of about $6.7 million (ADB share: $5.5 million) awarded in Q32017 for the construction of the Northern Bypass.

Not yet due

Not yet due

Not yet due

Suitable pilot schemes for the promotion of eco-friendly transport have yet to be identified.

Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Environmental impacts will be assessed and mitigation measures recommended in compliance with ADB's Safeguard Policy Statement (2009) and government guidelines, regulations, and policies. Draft EIA for Nganglam-Dewathang section of the national highway, IEE for other subprojects, and environmental management plan as applicable will be reviewed.
Involuntary Resettlement Social impacts will be assessed and mitigation measures recommended in compliance with ADB's Safeguard Policy Statement (2009) and government guidelines, regulations and policies. Preliminary reviews of draft resettlement plans have been conducted. These plans will be further reviewed during the project processing.
Indigenous Peoples Social impacts will be assessed and mitigation measures recommended in compliance with ADB's Safeguard Policy Statement (2009) and government guidelines, regulations and policies.
Stakeholder Communication, Participation, and Consultation
During Project Design DOR and PT will ensure that completed RPs and resettlement monitoring reports are made available to affected people and are submitted to ADB for posting on its Web site. DOR and PT will ensure that EIA, IEEs and environmental monitoring reports are made available to affected people and are submitted to ADB for posting on its Web site.
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 AFSs, 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 Georget, Johan
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Department of Roads
Ministry of Communications
Thimphu
Bhutan
Phuentsholing Thromde
[email protected]
Post Box. 02, Pelkhil Lam,
District Chukha,
Phuentsholing, Bhutan
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 25 Sep 2017

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 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 37.61 Cumulative Contract Awards
ADB 18.96 31 Jul 2014 16.15 0.00 85%
Counterpart 18.65 Cumulative Disbursements
Cofinancing 0.00 31 Jul 2014 4.50 0.00 24%

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 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 31.39 Cumulative Contract Awards
ADB 31.39 31 Jul 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 31 Jul 2014 0.00 0.00 0%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
SASEC Road Connectivity Project: Pasakha Access Road Environmental Monitoring Report (September 2015-August 2016) Environmental Monitoring Reports Oct 2016
South Asia Subregional Economic Cooperation Road Connectivity Project: Social Monitoring Report (September 2015-August 2016) Social Monitoring Reports Sep 2016
SASEC Road Connectivity Project: Social Monitoring Report Social Monitoring Reports Sep 2016
SASEC Road Connectivity Project: Nganglam-Dewathang Highway Environmental Impact Assessment (Final) Environmental Impact Assessments Apr 2014
South Asia Subregional Economic Cooperation Road Connectivity Project: Nganglam-Dewathang Highway and Pasakha Access Road Resettlement Plans Apr 2014
SASEC Road Connectivity Project: Phuentsholing Bypass Road Initial Environmental Examination Mar 2014
SASEC Road Connectivity Project: Pasakha Access Road and Alay Land Customs Station Initial Environmental Examination Mar 2014
SASEC Road Connectivity Project: Phuentsholing Mini Dry Port Initial Environmental Examination Mar 2014
South Asia Subregional Economic Cooperation Road Connectivity Project: Phuentsholing Mini Dry Port Land Acquisition Due Diligence Report Safeguards Due Diligence Reports Mar 2014
South Asia Subregional Economic Cooperation Road Connectivity Project: Phuentsholing Bypass Road Resettlement Plans Mar 2014
SASEC Road Connectivity Project: Nganglam-Dewathang Highway Environmental Impact Assessment Environmental Impact Assessments Nov 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
SASEC Road Connectivity Project: Procurement Plan Procurement Plans Sep 2017