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
Vishal, Vivek
Sectors Group
Request for information -
Country/Economy
Bhutan -
Sector
- Agriculture, natural resources and rural development
Related Projects
- 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
-
Grant 0573-BHU: Phuentsholing Township Development Project Source Amount Asian Development Fund US$ 24.26 million Loan 3668-BHU: Phuentsholing Township Development Project Source Amount Concessional ordinary capital resources lending US$ 28.74 million Grant 0765-BHU: Phuentsholing Township Development Project - Additional Financing Source Amount Asian Development Fund US$ 10.00 million Loan 4019-BHU: Phuentsholing Township Development Project - Additional Financing Source Amount Concessional ordinary capital resources lending US$ 18.50 million - 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 4.7 km climate and erosion-resilient river walls was completed in November 2022. The Flood Early Warning System (FEWS) is expected to be installed by Q1 2025; an interim FEWS has been installed and operational and operational at the project site. The construction of common urban infrastructure commenced in November 2022 and expected to complete by May 2025. The tendering of the commercial plots will be guided by the various consulting services packages (investment promotion advisor, sustainable township management capacity and development and investment promotion and transaction advisory).
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)
- Construction of 4.7 km climate and erosion-resilient river walls was completed in November 2022.66 ha. of land reclaimed. The National Center for Hydrology and Meteorology will procure the equipment from Q3 2023 and complete installation by Q1 2025. Interim Flood Early Warning System installed and operational. The consulting package CS04 Investment Promotion Advisor is expected to be recruited by Q4 2023. The remaining two packages will be recruited in 2024.The construction of common urban infrastructure commenced from November 2022 and expected to be completed by May 2025.
- 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 (about 10%) 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
Contact
- Responsible ADB Officer
- Vishal, Vivek
- Responsible ADB Department
- Sectors Group
- Responsible ADB Division
- Water and Urban Development Sector Office (SG-WUD)
- 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
- 28 Sep 2023
Funding
Grant 0573-BHU
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 05 Jun 2018 | 03 Jul 2018 | 26 Jul 2018 | 31 Dec 2025 | - | 24 Oct 2022 |
| Total (Amount in US$ million) | |
|---|---|
| Project Cost | 24.26 |
| ADB | 24.26 |
| Counterpart | 0.00 |
| Cofinancing | 0.00 |
| Date | ADB | Others | Net Percentage | |
|---|---|---|---|---|
| Cumulative Contract Awards | 23 Jul 2024 | 24.26 | 0.00 | 100% |
| Cumulative Disbursements | 23 Jul 2024 | 24.26 | 0.00 | 100% |
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
|---|---|---|---|---|---|---|
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Grant 0765-BHU
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 27 Nov 2020 | 14 Dec 2020 | 21 Jan 2021 | 31 Dec 2025 | - | 18 May 2022 |
| Total (Amount in US$ million) | |
|---|---|
| Project Cost | 10.00 |
| ADB | 10.00 |
| Counterpart | 0.00 |
| Cofinancing | 0.00 |
| Date | ADB | Others | Net Percentage | |
|---|---|---|---|---|
| Cumulative Contract Awards | 23 Jul 2024 | 10.00 | 0.00 | 100% |
| Cumulative Disbursements | 23 Jul 2024 | 10.00 | 0.00 | 100% |
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
|---|---|---|---|---|---|---|
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 3668-BHU
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 05 Jun 2018 | 03 Jul 2018 | 26 Jul 2018 | 31 Dec 2025 | - | - |
| Total (Amount in US$ million) | |
|---|---|
| Project Cost | 38.74 |
| ADB | 28.74 |
| Counterpart | 10.00 |
| Cofinancing | 0.00 |
| Date | ADB | Others | Net Percentage | |
|---|---|---|---|---|
| Cumulative Contract Awards | 23 Jul 2024 | 25.95 | 0.00 | 90% |
| Cumulative Disbursements | 23 Jul 2024 | 14.83 | 0.00 | 52% |
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
|---|---|---|---|---|---|---|
| Rating | - | Satisfactory | - | Satisfactory | - | Satisfactory |
Loan 4019-BHU
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 27 Nov 2020 | 14 Dec 2020 | 21 Jan 2021 | 31 Dec 2025 | - | - |
| Total (Amount in US$ million) | |
|---|---|
| Project Cost | 20.00 |
| ADB | 18.50 |
| Counterpart | 1.50 |
| Cofinancing | 0.00 |
| Date | ADB | Others | Net Percentage | |
|---|---|---|---|---|
| Cumulative Contract Awards | 23 Jul 2024 | 9.88 | 0.00 | 53% |
| Cumulative Disbursements | 23 Jul 2024 | 5.23 | 0.00 | 28% |
| 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.
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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.
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 |
|---|---|---|---|---|
| Investor Promotion and Transaction Advisory Consultant | Firm - Consulting | Closed | ||
| Sustainable Township Management Capacity Development | Firm - Consulting | Closed | ||
| Sustainable Township Management Capacity Development | Firm - Consulting | Closed | ||
| Investment Promotion Advisor | Individual - Consulting | Closed | ||
| 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$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| 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 |
| 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 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 |
| Phuentsholing Township Development Project - Additional Financing: Procurement Plan | Procurement Plans | Sep 2020 |