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/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
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

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 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 27 Oct 2022 24.26 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2022 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 27 Oct 2022 10.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2022 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 27 Oct 2022 26.52 0.00 92%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2022 6.00 0.00 21%
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 27 Oct 2022 9.25 0.00 50%
Counterpart 1.50 Cumulative Disbursements
Cofinancing 0.00 27 Oct 2022 1.63 0.00 9%
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.

Title Document Type Document Date
Phuentsholing Township Development Project: Audited Project Financial Statements (January-December 2021) Audited Project Financial Statements Aug 2022
Phuentsholing Township Development Project: Procurement Plan Procurement Plans Jan 2022
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
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
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3668-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: 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.

Title Document Type Document Date
Phuentsholing Township Development Project: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Oct 2022
Phuentsholing Township Development Project: Social Safeguard Due Diligence Report Safeguards Due Diligence Reports Apr 2022
Phuentsholing Township Development Project: Environmental Monitoring Report (July-December 2021) Environmental Monitoring Reports Mar 2022
Phuentsholing Township Development Project: Environmental Monitoring Report (January-June 2021) Environmental Monitoring Reports Oct 2021
Phuentsholing Township Development Project: Impacts of the Project to the Temporary Shelter Environmental Due Diligence Report Safeguards Due Diligence Reports Sep 2021
Phuentsholing Township Development Project: Environmental Monitoring Report (July-December 2020) Environmental Monitoring Reports Apr 2021
Phuentsholing Township Development Project: Environmental Monitoring Report (January-June 2020) Environmental Monitoring Reports Sep 2020
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.

Tenders

Tender Title Type Status Posting Date Deadline
Urban Management Advisor Individual - Consulting Closed 11 Nov 2021 24 Nov 2021
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$) Contract Amount Financed by ADB (US$)
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