Bhutan: Phuentsholing Township Development Project

Sovereign Project | 50165-002

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
    Bhutan
  • Modality
    • Grant
    • Loan
  • Sector
    • Agriculture, natural resources and rural development
Project Name Phuentsholing Township Development Project
Project Number 50165-002
Country Bhutan
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0573-BHU: Phuentsholing Township Development Project
Asian Development Fund US$ 24.26 million
Loan 3668-BHU: Phuentsholing Township Development Project
Concessional ordinary capital resources lending US$ 28.74 million
Grant 0765-BHU: Phuentsholing Township Development Project - Additional Financing
Asian Development Fund US$ 10.00 million
Loan 4019-BHU: Phuentsholing Township Development Project - Additional Financing
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 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 Construction of the new township and flood protection measures is underway. So far 4.71 km of 4.75 km guide wall has been completed. 3.4 km of D-wall is complete. About 30% of general earth filling and 86% of Cast in-situ works are done. About 52% of blocks for slope embankment has been casted.
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)

The construction of the flood and erosion protection measures is underway and expected to be completed Q2 2021. Progress so far included 50% of the backfilling work, 99% of guide wall, and 90% of D wall are complete. Three outfall drawings are issued to the contractors for implementation.

For the urban component comments on the draft bid documents including BOQ, specification and drawings have been provided to PIU for review and incorporation. The revised bidding documents are expected to be submitted to ADB by end of first week of October. The electrical and telecomunication work will be given to Bhutan Power Corporation (BPC) and Bhutan Telecom under Force Account. DHI will sign MOU with both the organizations.

Flood Management Consultancy has been awarded to PIC through Contract Variation. The 2 D modelling report has been submitted to ADB for endorsement. The MOU between CDCL and NCHM for operation and maintenance of FFEWs, is under development. DHI has updated strategic action plan timeline which includes recruitment of consultants to provide advisory services on investment strategy and implementation.

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 07 Oct 2020

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 18 Oct 2021 24.24 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 24.24 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Unsatisfactory

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 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 18 Oct 2021 9.72 0.00 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 4.57 0.00 46%
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 18 Oct 2021 14.09 0.00 49%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 2.03 0.00 7%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Unsatisfactory

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 18 Oct 2021 0.00 0.00 0%
Counterpart 1.50 Cumulative Disbursements
Cofinancing 0.00 18 Oct 2021 0.00 0.00 0%
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.

Title Document Type Document Date
Phuentsholing Township Development Project: Audited Project Financial Statements (January-December 2020) Audited Project Financial Statements Apr 2021
Phuentsholing Township Development Project: Audited Project Financial Statements (January-December 2019) Audited Project Financial Statements May 2020
Phuentsholing Township Development Project: Audited Project Financial Statements (January-December 2018) Audited Project Financial Statements Dec 2019
Amendment to the Loan Agreement (Ordinary Operations [Concessional]) for Loan No. 3668-BHU: Phuentsholing Township Development Project Loan Agreement (Ordinary Resources) Aug 2018
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3668-BHU: Phuentsholing Township Development Project Agreements Jul 2018
Project Agreement for Loan 3668-BHU: Phuentsholing Township Development Project (Druk Holdings and Investments Limited) Project/Program Agreements Jul 2018
Project Agreement for Loan 3668-BHU: Phuentsholing Township Development Project (Construction Development Corporation Limited) Project/Program Agreements Jul 2018
Grant Agreement (Special Operations) for Grant 0573-BHU: Phuentsholing Township Development Project Agreements Jul 2018
Phuentsholing Township Development Project: Project Administration Manual Project/Program Administration Manual May 2018
Phuentsholing Township Development Project: Procurement Plan Procurement Plans May 2018
Phuentsholing Township Development Project: Report and Recommendation of the President Reports and Recommendations of the President May 2018
Amochhu Land Development and Township Project: Project Data Sheet (Dzongkha Translation) Translated PDS Jul 2016
Amochhu Land Development and Township Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jul 2016
Amochhu Land Development and Township Project: Project Preparatory Technical Assistance Report Project Preparatory Technical Assistance Reports Jul 2016

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
Loan No: 3668-BHU; Grant No: 0573-BHU: Phuentsholing Township Development Project [CW-02A] Invitation for Bids Closed 19 Jan 2021 22 Aug 2021
50165-BHU: Phuentsholing Township Development Project Other Notice Closed 21 Dec 2020 04 Jan 2021
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 | Address Executing Agency 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 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