Bhutan : Secondary Towns Urban Development Project

Water and other urban infrastructure and services / Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply

The growth of Bhutan''s secondary towns is constrained by deficiencies in infrastructure and basic urban services resulting from inadequate urban planning, weak urban institutions and municipal finances, limited budgetary support, and limited local capabilities for urban infrastructure development. Water supply service in majority of secondary towns is intermittent for 2-12 hours daily. Without a continuous water supply, it is difficult to assess nonrevenue water, but estimates suggest the ranges to be 30%70%. Water tariffs cover only about 20% of the O&M costs of water supply. Less than half of the secondary towns have a piped sewerage system. The government is concerned about this unbalanced urbanization.

To enable balanced and equitable growth, the government''s strategy for urban development aims to foster secondary towns into regional growth centers by developing trade, transport, logistics, and manufacturing. Medium-scale industries are being established along the regional centers in southern Bhutan that border India, including Samdrup Jongkhar and Sarpang, both of which are secondary towns identified as growth centers. The secondary towns need substantial urban infrastructure improvements to realize the government''s vision. The project is designed to complement the government''s efforts to develop secondary towns to ensure Bhutan''s balanced urbanization.

The project will support infrastructure development and institutional strengthening in three important secondary towns: Samdrup Jongkhar and Sarpang in the southern border region of Bhutan, which are planned as growth centers with high economic potential; and Trashigang, the largest urban center in eastern Bhutan, which has gained importance with the opening in 2017 of the Yonphula airport, which was supported by ADB. These towns were selected for their strategic economic importance.

The project is aligned with the government''s Eleventh Five-Year Plan, 2013-2018, which focuses on balanced and sustainable urban development of human settlements. It is in line with ADB''s country partnership strategy, 2014-2018 for Bhutan, which identifies inclusive economic growth as a key strategic pillar, and is included in ADB''s country operations business plan for Bhutan, 2018-2020. It will contribute to Sustainable Development Goals 6 (ensuring availability and sustainable management of water and sanitation for all) and 11 (making cities and human settlements inclusive, safe, resilient, and sustainable).

Balanced and sustainable development of human settlements in Samdrup Jongkhar, Sarpang, and Trashigang ensured.

Quality, efficiency, and sustainability of urban services improved.

Urban infrastructure expanded and/or upgraded.

Capacity of institutions and local communities strengthened.

In Ranjung: (i) Eight BTP of 10 cum each have been completed; (ii) 6.5 km transmission line completed; (iii) one 230 cum CWR completed; (iv) intake works and grid chamber completed and (v) 113 water meters installed. In Trashigang: (i) 16.7 km water distribution network completed; (ii) One 230 cum CWR completed; (iii) Two BPT 10 cum and 5 cum completed; and (v) 367 water meters installed. In Dewathang: (i) sites for water intake and water treatment plant finalized. Tender for works under preparation. In Samdrup Jongkhar: (i) 3 km trunkline from WTP to CWR completed; (ii) 19.89 km water distribution network completed; (iii) 2.5 km sewerage collection pipeline under construction. In Shechamthang LAP: (i) 6.5 km new road and 4.3 km drain completed; (ii) 12.13 km water transmission line completed; and (iii) 13 km water distribution line completed.

GAP implementation and monitoring underway. The NGO is implementing this activity through community outreach and workshops. The institutional expert has been mobilized from October 2022. The urban infrastructure trainer recruitment under process.