Bhutan: South Asia Subregional Economic Cooperation Transport, Trade Facilitation and Logistics Project

Sovereign Project | 47284-001

The SASEC Transport, Trade Facilitation and Logistics Project is designed to improve transport efficiency and cross border trade by (i) rehabilitating existing roads and constructing missing link sections on the strategic southern east-west highway between Lhamoizingkha and Sarpang, and (ii) constructing new logistics and cross border facilities at selected locations in Phuentsholing, Nganglam and Gelephu.

The project will have three outputs: a) improved road network (b) improved logistics and trade facilitation facilities and (c) enhanced capacity of implementing agencies to operate and maintain the road network and trade facilitation facilities and related equipment. The project impact will be improved domestic and cross border movement of goods and passengers. The project outcome will be improved efficiency of land transportation and more efficient and secure cross border trade.

Project Details

  • Project Officer
    Hoelscher, Guenter
    South Asia Department
    Request for information
  • Country
    Bhutan
  • Modality
    • Technical Assistance
  • Sector
    • Transport
Project Name South Asia Subregional Economic Cooperation Transport, Trade Facilitation and Logistics Project
Project Number 47284-001
Country Bhutan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8708-BHU: South Asia Subregional Economic Cooperation Transport, Trade Facilitation and Logistics Project
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
Sector / Subsector

Industry and trade / Trade and services

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description

The SASEC Transport, Trade Facilitation and Logistics Project is designed to improve transport efficiency and cross border trade by (i) rehabilitating existing roads and constructing missing link sections on the strategic southern east-west highway between Lhamoizingkha and Sarpang, and (ii) constructing new logistics and cross border facilities at selected locations in Phuentsholing, Nganglam and Gelephu.

The project will have three outputs: a) improved road network (b) improved logistics and trade facilitation facilities and (c) enhanced capacity of implementing agencies to operate and maintain the road network and trade facilitation facilities and related equipment. The project impact will be improved domestic and cross border movement of goods and passengers. The project outcome will be improved efficiency of land transportation and more efficient and secure cross border trade.

The potential implementing agency for the road component and trade facilitation component are the Department of Roads (DOR) and Department of Revenue and Customs (DRC) respectively. The project is expected to be implemented over 6 years from 2016 to 2022.

Project Rationale and Linkage to Country/Regional Strategy

Road transport is the dominant mode of transport for passengers and freight within Bhutan and the neighboring countries of India, Bangladesh and Nepal. However, the southern east-west highway (SEWH) is currently incomplete; east-west connection in the south now often relies on long and indirect routes. This constrains economic and social development in the southeastern parts of Bhutan that are poorer than most other regions. Recognizing these physical constraints on economic development, the Royal Government of Bhutan''s 11th Five Year Plan states its key priority is completing construction of the strategic SEWH corridor totaling about 717km in length. This is critical in enhancing east-west transport efficiency which will promote inclusive socio-economic development, particularly opening up access to the less developed central region.

The Government has further requested ADB to assist in developing an additional dry port and Integrated Check Posts at suitable locations along the SEWH corridor parallel to the international border. The additional dry port will provide opportunity for consolidation of freight logistics for export, reduce transport costs for freight, and enhance efficiency of freight logistics thereby lowering freight costs significantly. The ICPs - each housing multiple agencies - will play an important role in enhancing national security and facilitating trade.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design To be prepared in due course during project design.
During Project Implementation To be prepared in due course during project implementation.
Business Opportunities
Consulting Services All consultants will be recruited according to ADB's Guidelines on the Use of Consultants.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines.
Responsible ADB Officer Hoelscher, Guenter
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Department of Revenue and Customs
P.O. Box 117, Thimphu, Bhutan
Department of Roads
Ministry of Communications
Thimphu
Bhutan
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 27 Aug 2014
Last Review Mission -
Last PDS Update 28 Mar 2016

TA 8708-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Aug 2014 02 Oct 2014 02 Oct 2014 30 Sep 2016 30 Nov 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 29 Sep 2021 771,688.28

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.

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.

None currently available.


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

No tenders for this project were found.


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 8708 05 Jun 2015 Egis International (France) in association with Gyaltshen Consultancy (GCY) (Bhutan) | France Department of Roads 521,827.00

Procurement Plan

None currently available.