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 Name | Phuentsholing Township Development Project | ||||||||
| Project Number | 50165-002 | ||||||||
| Country | Bhutan |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Private sector development |
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| 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 |
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| Gender Equity and Mainstreaming | 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 | balanced and sustainable development of human settlements ensured and smart growth principles applied in planning and development to promote Phuentsholing's cultural and social vibracy | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Phuentsholing's urban area protected from floods and expanded with improved amenities and services |
| Progress Toward Outcome | works ongoing. 1.2 km physical construction of D-wall completed. Embankment construction of 202,612 cubic meter is completed. |
| 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) | Contract for Flood Management inclusive of flood early warning system awarded to PIC through contract variation. |
| Geographical Location | Phuentsholing |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The project has been classified as category A for the environment, and an environmental impact assessment (EIA) study was prepared. The EIA's scope covers the government's ultimate plan to develop 460 ha of new urban land along both banks of the Amochhu River, although the current project area is limited to 66 ha on the left bank. The EIA found that most impacts occur during construction due to river bed levelling, the transportation of construction materials and equipment, and the construction of urban facilities. These impacts are temporary, local, and reversible. Mitigation measures have been proposed, and an environmental management plan (EMP) has been prepared. During the EIA's preparation, two public consultations were carried out and the study findings were disclosed. The EIA report was disclosed through ADB's website on 29 May 2017. An independent environmental monitoring expert contract was signed on 4 April 2019 and will be mobilized on 1 July 2019. Additional environmentalist has also been added for regular environmental monitoring. Environmental monitoring report is prepared on a semi-annual basis. For monitoring purposes, environmental monitoring implementation plan has been developed. Additionally, aquatic survey has been conducted. Risk management plan framework and emergency evacuation plan have also been prepared |
| 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 | BHRM |
| Executing Agencies |
Department of Macroeconomic Affairs, Ministry of Finance Tashichho Dzong, Post Box No. 117 Druk Holding and Investments Limited [email protected] Thori Lam Upper Motithang Thimphu, Bhutan |
| 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 | 08 Aug 2019 |
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 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 24.26 | Cumulative Contract Awards | |||
| ADB | 24.26 | 05 Jun 2018 | 23.47 | 0.00 | 97% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 05 Jun 2018 | 20.13 | 0.00 | 83% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | - | - | Satisfactory | - | Unsatisfactory |
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 | 05 Jun 2018 | 14.07 | 0.00 | 49% |
| Counterpart | 10.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 05 Jun 2018 | 1.35 | 0.00 | 5% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | - | - | Satisfactory | - | Unsatisfactory |
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.
| Title | Document Type | Document Date |
|---|---|---|
| Phuentsholing Township Development Project: Environmental Monitoring Report (July-December 2019) | Environmental Monitoring Reports | Mar 2020 |
| Phuentsholing Township Development Project: Environmental Monitoring Report (January-June 2019) | Environmental Monitoring Reports | Aug 2019 |
| Phuentsholing Township Development Project: Environmental Monitoring Report (July-December 2018) | Environmental Monitoring Reports | Jan 2019 |
| Amochhu Land Development and Township Project: Environmental Impact Assessment | Environmental Impact Assessments | May 2017 |
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.
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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 |
|---|---|---|---|---|
| Independent Environmental Monitoring Expert | Individual - Consulting | Closed | 13 Jan 2019 | 21 Jan 2019 |
| Loan No. 50165-BHU: Amochhu Land Development and Township Project [ALDTP-CW-01] | Invitation for Bids | Closed | 25 May 2017 | 31 Jul 2017 |
| BHU: Amochhu Land Development and Township Project (Phase I) | Advance Notice | Active | 01 Mar 2017 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| CW-01 CONSTRUCTION OF RIVER TRAINING AND EMBANKMENT WORKS | Loan 3668 | 13 Aug 2018 | AFCONS INFRASTRUCTURE LTD. | MUMBAI INDIA | Druk Holding and Investments Limited | CONSTRUCTION | 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 | Consulting Services | 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 | May 2018 |