Bhutan : Phuentsholing Township Development Project
The proposed Amochhu Land Development and Township Project will develop 66 hectares (ha) of riparian land near the city of Phuentsholing that is located adjacent to the Amochhu River on Bhutans southwestern border with India. The project will provide protection from floods and erosion, and construct smart urban infrastructure to allow phased urban expansion. A modern township will be designed on modern sustainable principles of equity, livability, and competitiveness, and it will be integrated into the fabric of the existing municipality and preserve Bhutans unique architectural heritage. The project will also protect the existing and new towns from floods and riverbank erosion which currently threatens lives and livelihoods and disrupts connectivity with nearby communities.
Project Details
-
Project Officer
Norbu, Tshewang
South Asia Department
Request for information -
Country/Economy
Bhutan -
Sector
- Agriculture, natural resources and rural development
| Project Name | Phuentsholing Township Development Project | ||||||||||||||||
| Project Number | 50165-002 | ||||||||||||||||
| Country / Economy | Bhutan |
||||||||||||||||
| Project Status | Active | ||||||||||||||||
| Project Type / Modality of Assistance | Grant Loan |
||||||||||||||||
| Source of Funding / Amount |
|
||||||||||||||||
| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
||||||||||||||||
| Drivers of Change | Gender Equity and Mainstreaming Private sector development |
||||||||||||||||
| Sector / Subsector |
Agriculture, natural resources and rural development / Rural flood protection Water and other urban infrastructure and services / Other urban services - Urban sanitation - Urban sewerage - Urban solid waste management - Urban water supply |
||||||||||||||||
| Gender | Some gender elements | ||||||||||||||||
| Description | The proposed Amochhu Land Development and Township Project will develop 66 hectares (ha) of riparian land near the city of Phuentsholing that is located adjacent to the Amochhu River on Bhutans southwestern border with India. The project will provide protection from floods and erosion, and construct smart urban infrastructure to allow phased urban expansion. A modern township will be designed on modern sustainable principles of equity, livability, and competitiveness, and it will be integrated into the fabric of the existing municipality and preserve Bhutans unique architectural heritage. The project will also protect the existing and new towns from floods and riverbank erosion which currently threatens lives and livelihoods and disrupts connectivity with nearby communities. | ||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Bhutan is a mountainous country with limited suitable land for urban growth. This particularly applies for Phuentsholing which has reached its limits for expansion, being constrained by the Amochhu River and surrounding steep terrain and conservation areas. Phuentsholing is Bhutans busiest border city with India, located on two South Asia Subregional Economic Cooperation trading corridors, and is the countrys largest commercial and industrial hub. This Project will develop a modern township designed on modern sustainable principles of equity, livability, and competitiveness, and it will be integrated into the fabric of the existing municipality and preserve Bhutans unique architectural heritage. The Project will also rotect the existing and new towns from floods and riverbank erosion which currently threatens lives and livelihoods and disrupts connectivity with nearby communities. | ||||||||||||||||
| Impact | a. Balanced and sustainable development of human settlements ensured. b. Smart growth principles applied in planning and development. |
||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Phuentsholing's urban area protected from floods and expanded with improved amenities and services. |
| Progress Toward Outcome | The nationwide lockdown from 9 January 2022 has slowed down the progress of CW-01 and it has impacted the import of raw materials, critical spare parts for equipment and labourers. |
| Implementation Progress | |
| Description of Project Outputs | Flood and erosion protection measures installed. Township management systems installed. Municipal Infrastructure constructed. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Progress of PTDP, as of 30 June 2022, is follows:1. Flood and erosion protection measures installed (Output 1) 1.a. 83.52% (civil works) of 4 km river protection walls achieved 1.b. 86.63% of backfilling works achieved 1.c. Flood early warning system (FEWS) desk work initiated by National Center for Hydrology and Meteorology (NCHM). Installation works will be carried out from Q3/2022 to Q3/2023 2. Municipal infrastructure constructed (Output 2) 2.a. Planning of infrastructure completed. 2.b. to 2.i work items to be started with CW-02A.3. Township management systems installed (Output 3) 3.a. First assessment of knowledge of township management staff will be done in 2024. 3.b. Asset management system will be prepared once designs for the township infrastructure and facilities are completed. DHI has recruited one Urban Management Advisor in April 2022. The consultant will prepare the strategic action plan for the township. Electricity and telecommunication connectivity works will be undertaken by Bhutan Power Corporation and Bhutan Telecom under Force Account. CW-02A contract expected to be awarded by end of September 2022. |
| Geographical Location | Phuentsholing |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | According to classification system of Safeguard Policy Statement 2009, the project is category A for environment safeguards, and an environmental impact assessment (EIA) study was prepared. The EIA report was disclosed in ADB's website on May 2017. The scope of the EIA covers the government's comprehensive plan to develop 460 ha. of new urban land along the banks of the Amochhu River, although the current project area is limited to 66. ha on the left bank. Based on the EIA, most adverse impacts occur during construction due to river bed levelling, the transportation of construction materials and equipment, and the construction of urban facilities. Mitigation measures in the environmental management plan (EMP) are part of the project implementation. During the project preparation phase, two public consultations were carried out and the results were documented in the EIA. As per the Environmental Assessment Act 2000, National Environmental Commission has issued Environmental Clearance for the project with validity of 5 years. To verify monitoring reports, an independent environmental monitoring expert was recruited on April 2019 and mobilized on July 2019. Environmental experts under the support consultants help on monitoring the implementation of environmental safeguards activities. Starting January 2019, the environmental monitoring report is submitted on a semi-annual basis. To determine the effectivity of EMP, an environmental monitoring plan is being implemented to check the air and water quality, noise levels, and health and safety at worksites. Additionally, aquatic and terrestrial wildlife surveys are being conducted to monitor any impact from construction. Due to COVID-19 pandemic, a portion of the project site is utilized as location for temporary shelters. An environmental due diligence report was prepared to determine the potential impacts of project's construction. Based on the report, the EMP has enough measures to mitigate impacts, and people have access on the grievance redress mechanism register. |
| Involuntary Resettlement | No involuntary resettlement is required and the project has been classified as category C for involuntary resettlement. |
| Indigenous Peoples | No indigenous peoples are affected and the project has been classified as category C for indigenous peoples. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Key stakeholders have been consulted during project design. Two public consultation meetings have been held during preparation of the EIA. |
| During Project Implementation | Stakeholder communication plan is developed where progress status during construction works and construction issues have to be communicated to the key stakeholders at least once a year. |
| Business Opportunities | |
|---|---|
| Consulting Services | Project implementation consultants |
| Procurement | Civil works packages |
| Responsible ADB Officer | Norbu, Tshewang |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Bhutan Resident Mission (BHRM) |
| Executing Agencies |
Department of Macroeconomic Affairs, Ministry of Finance Druk Holding and Investments Limited |
| Timetable | |
|---|---|
| Concept Clearance | 22 Jul 2016 |
| Fact Finding | 21 Mar 2017 to 30 Mar 2017 |
| MRM | 23 Jun 2017 |
| Approval | 05 Jun 2018 |
| Last Review Mission | - |
| Last PDS Update | 14 Sep 2022 |
Grant 0573-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 05 Jun 2018 | 03 Jul 2018 | 26 Jul 2018 | 31 Dec 2025 | - | 24 Oct 2022 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 24.26 | Cumulative Contract Awards | |||
| ADB | 24.26 | 23 Aug 2023 | 24.26 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 23 Aug 2023 | 24.26 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Grant 0765-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 27 Nov 2020 | 14 Dec 2020 | 21 Jan 2021 | 31 Dec 2025 | - | 18 May 2022 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.00 | Cumulative Contract Awards | |||
| ADB | 10.00 | 23 Aug 2023 | 10.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 23 Aug 2023 | 10.00 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 3668-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 05 Jun 2018 | 03 Jul 2018 | 26 Jul 2018 | 31 Dec 2025 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 38.74 | Cumulative Contract Awards | |||
| ADB | 28.74 | 23 Aug 2023 | 26.03 | 0.00 | 91% |
| Counterpart | 10.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 23 Aug 2023 | 12.01 | 0.00 | 42% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 4019-BHU
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 27 Nov 2020 | 14 Dec 2020 | 21 Jan 2021 | 31 Dec 2025 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 20.00 | Cumulative Contract Awards | |||
| ADB | 18.50 | 23 Aug 2023 | 9.22 | 0.00 | 50% |
| Counterpart | 1.50 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 23 Aug 2023 | 3.27 | 0.00 | 18% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
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.
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.
Climate Change and Disasters: Protecting Townships in Bhutan
A major focus of the Phuentsholing Township Development Project is to provide a safer space in which the town can grow by helping develop a new urban center with raised ground levels in an area sheltered by the embankments.ADB Shoring Up Flood Defenses to Promote Growth in Phuentsholing
ADB's Board of Directors has approved a loan and grant package to promote growth in and around Phuentsholing by developing a township area adjoining the city protected by new defenses against floods and riverbank erosion.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Investment Promotion Advisor | Individual - Consulting | Active | ||
| Urban Management Advisor | Individual - Consulting | Closed | ||
| Loan No: 3668-BHU; Grant No: 0573-BHU: Phuentsholing Township Development Project [CW-02A] | Invitation for Bids | Closed | ||
| 50165-BHU: Phuentsholing Township Development Project | Other Notice | Closed | ||
| Independent Environmental Monitoring Expert | Individual - Consulting | Closed | ||
| Loan No. 50165-BHU: Amochhu Land Development and Township Project [ALDTP-CW-01] | Invitation for Bids | Closed | ||
| BHU: Amochhu Land Development and Township Project (Phase I) | Advance Notice | Active |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| CA-G-L-2022-11-008 - Phuentsholing Township Development Project | Loan 3668 | 14 Nov 2022 | KALIKA-RIGSAR JOINT VENTURE | Trashigang, Bhutan | Department of Macroeconomic Affairs, MOF | 20,828,804,872.00 | 13,507,778.37 |
| Construction of common urban infrastructure, Zone A | Loan 4019 | 14 Nov 2022 | KALIKA-RIGSAR JOINT VENTURE | Trashigang, Bhutan | Department of Macroeconomic Affairs, MOF | 20,828,804.87 | 6,234,359.25 |
| CS-01 PROJECT IMPLEMENTATION CONSULTANT EGIS INTERNATIONAL JV WITH EGIS INDIA AND GYALTSHEN CONSULTANCY (BHUTAN) | Loan 4019 | 19 Jul 2022 | EGIS INTERNATIONAL JV WITH EGIS INDIA AND GYALTSHEN CONSULTANCY (SUBCONSULTANT) | SAINT-QUENTIN-EN-YVELINES, FRANCE | Department of Macroeconomic Affairs, MOF | 4,396,475.39 | 239,817.27 |
| CW-01 CONSTRUCTION OF RIVER TRAINING AND EMBANKMENT WORKS | Loan 4019 | 31 May 2022 | AFCONS INFRASTRUCTURE LTD. | MUMBAI, INDIA | Department of Macroeconomic Affairs, MOF | 1,635,655.76 | 1,635,655.76 |
| CW-01 CONSTRUCTION OF RIVER TRAINING AND EMBANKMENT WORKS | Loan 3668 | 13 Aug 2018 | AFCONS INFRASTRUCTURE LTD. | MUMBAI INDIA | Druk Holding and Investments Limited | 42,862,222.00 | 9,272,870.00 |
| CS-01 PROJECT IMPLEMENTATION CONSULTANT EGIS INTERNATIONAL JV WITH EGIS INDIA AND GYALTSHEN CONSULTANCY (BHUTAN) | Loan 3668 | 10 Aug 2018 | EGIS INTERNATIONAL JV WITH EGIS INDIA AND | SAINT-QUENTIN-EN-YVELINES FRANCE | Druk Holding and Investments Limited | 5,307,441.00 | 5,132,849.00 |
| CW-01 CONSTRUCTION OF RIVER TRAINING AND EMBANKMENT WORKS | Grant 0573 | 18 Jul 2018 | AFCONS INFRASTRUCTURE LTD. | MUMBAI INDIA | Druk Holding and Investments Limited | 24,198,251.00 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Phuentsholing Township Development Project: Procurement Plan | Procurement Plans | Jul 2023 |