fbpx 44239-014: Air Transport Connectivity Enhancement Project-Additional Financing | Asian Development Bank

Bhutan: Air Transport Connectivity Enhancement Project-Additional Financing

Sovereign (Public) Project | 44239-014 Status: Active

The project, together with the original project, will improve safety, security, and capacity at Bumthang, Gelephu, and Yonphula domestic airports by providing infrastructure. The additional financing will further strengthen safety and security, and improve passenger convenience in terms of level of service at these airports. The overall project will support the government's plan to develop a safe, reliable, and efficient air transport system connecting urban and rural centers to help overcome the limitations of road transport, improve accessibility, and promote tourism and high-value agriculture in less-developed regions of the country.

Project Details

Project Officer
Vico Talledo, Rocio South Asia Department Request for information
Country
  • Bhutan
Modality
  • Grant
Sector
  • Transport
 
Project Name Air Transport Connectivity Enhancement Project-Additional Financing
Project Number 44239-014
Country Bhutan
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0484-BHU: Air Transport Connectivity and Enhancement Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 4.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Transport / Transport policies and institutional development

Gender Equity and Mainstreaming No gender elements
Description The project, together with the original project, will improve safety, security, and capacity at Bumthang, Gelephu, and Yonphula domestic airports by providing infrastructure. The additional financing will further strengthen safety and security, and improve passenger convenience in terms of level of service at these airports. The overall project will support the government's plan to develop a safe, reliable, and efficient air transport system connecting urban and rural centers to help overcome the limitations of road transport, improve accessibility, and promote tourism and high-value agriculture in less-developed regions of the country.
Project Rationale and Linkage to Country/Regional Strategy

Bhutan is a mountainous, landlocked country with its socioeconomic development largely depending on a safe, reliable, and efficient transport network. The country has an estimated population of 745,000 and a population density of 19 persons per square kilometer, which is the smallest population and the lowest population density in South Asia. Bhutan falls within a seismic risk zone with a moderate to high risk level, and has formidable weather conditions. This makes it difficult for the country to achieve economies of scale in service delivery, and costly to build and maintain physical infrastructure, particularly roads. The high external and domestic transport costs and lack of or limited accessibility have constrained the country's economic and social development.

The overall project is in line with the strategic objective of providing safe and more efficient movement of people and goods as described in ADB's country partnership strategy, 2014 2018. The proposed additional financing is included in the country operations business plan, 2016 2018. Investments in developing a safe, reliable, and efficient domestic air transport network connecting urban and rural centers were identified as priorities for the transport sector and are in line with the government's strategies for development of the transport sector.

Impact Air transport connectivity improved
Project Outcome
Description of Outcome Safety, security, and capacity at three domestic airports in Bumthang, Gelephu, and Yonphula improved
Progress Toward Outcome The additional financing was declared effective on 16 December 2016. Only the Yonphula airport package left to be procured.
Implementation Progress
Description of Project Outputs Infrastructure at three domestic airports in Bumthang, Gelephu, and Yonphula improved
Status of Implementation Progress (Outputs, Activities, and Issues)

Bumthang Airport: construction ongoing

Gelephu Airport: construction ongoing

Yonphula Airport: not yet due

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The activities do not involve major civil works and will all be undertaken within the boundaries of the existing airport facilities. Given this, anticipated environmental impacts of the project are low and, therefore, the project is classified B in accordance with ADB's Safeguard Policy Statement (SPS) (2009). An initial environmental examination (IEE) report has been prepared for the proposed construction of the three structures under the project and disclosed on the ADB website. A safeguards compliance audit has been carried out for the original project, as required by the SPS for existing facilities, as the proposed structures under the project are being added to the existing airports. The safeguards compliance report is also disclosed on the ADB website. Anticipated environmental impacts, which will mainly occur during the construction stage, are occupational health and safety issues, generation of construction waste, generation of dust and noise, and problems of siltation. Solid and liquid waste from the operation of the two buildings will be the main operational-stage issue that will need to be managed. Mitigation measures to address these issues have been recommended in the IEE and the environmental management plan, which will form part of the bidding documents for contractors. Consultations with concerned stakeholders and communities have been completed while preparing the IEE. A grievance redress mechanism has been proposed to address stakeholder and local community concerns during project construction.
Involuntary Resettlement The project is categorized C for involuntary resettlement as per the ADB Safeguard Policy Statement (2009). Due diligence of social impacts related to the additional financing was conducted during project preparation. It confirmed that all civil works under the additional financing will be built within DOAT's property boundaries and will not affect private assets or cause physical and economic displacement. A social compliance review of the ongoing investment was also conducted. It confirmed that the household affected by land acquisition in Gelephu under the original project was compensated as per the disclosed resettlement plan, and that the Namgyal Chorten Stupa at Yonphula was successfully relocated. However, it also identified pending actions to address impacts associated with the original development of the airports under the Government of Bhutan's own financing, such as the finalization of the compensation of one household and the reconstruction of a footbridge in Bumthang and the identification of an alternative footpath at Yonphula. An action plan with DOAT has been agreed to address these issues. More information on this can be found in the safeguards compliance report disclosed on the ADB website.
Indigenous Peoples There are no indigenous people in the project area. The civil works under the additional financing will not affect any indigenous people and the project is categorized C for indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design The poverty and social analysis carried out for the original project was based on a survey of 200 households and consultations with 281 residents (including 37% women) from the communities surrounding the three airports. Additional consultations have taken place during the implementation of the original investments. Moreover, further consultations took place to prepare the additional financing. Most consultation participants were looking forward to the development of the tourism industry generated by the project.
During Project Implementation Consultations will take place during implementation to ensure all community concerns are addressed.
Business Opportunities
Consulting Services Consultants will be recruited according to ADBs Guidelines on the Use of Consultants (March 2013, as amended from time to time).
Procurement Procurement of goods and works will be undertaken in accordance with ADBs Procurement Guidelines (April 2015, as amended from time to time).
Responsible ADB Officer Vico Talledo, Rocio
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Information and Communications
[email protected]
Government of Bhutan,
Thimphu, Bhutan
Timetable
Concept Clearance -
Fact Finding 01 Mar 2016 to 08 Mar 2016
MRM 14 Apr 2016
Approval 29 Jun 2016
Last Review Mission -
Last PDS Update 02 May 2019

Grant 0484-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2016 29 Sep 2016 16 Dec 2016 31 Dec 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.42 Cumulative Contract Awards
ADB 4.00 29 Jun 2016 3.73 0.00 93%
Counterpart 0.42 Cumulative Disbursements
Cofinancing 0.00 29 Jun 2016 1.91 0.00 48%

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 Access to Information Policy (AIP) 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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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

Tender Title Type Status Posting Date Deadline
Grant No. 0484-BHU: Air Transport Connectivity Enhancement Project - Additional Financing [NCB/DoAT/ATCEP/BDA/TB1] Invitation for Bids Closed 05 Apr 2017 03 May 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSTRUCTION SUPERVISION CONSULTANTS (CSC) Grant 0484 18 Jul 2017 GYALTSHEN CONSULTANCY POST BOX 310 CHANG LAM THIMPHU BHUTAN Ministry of Information and Communications 201,486.00