Bhutan : Phuentsholing Township Development Project - Additional Financing

Water and other urban infrastructure and services / Other urban services - Urban flood protection - Urban sanitation - Urban sewerage - Urban solid waste management - Urban water supply

Balanced and sustainable development of human settlements ensured (Eleventh Five Year Plan, 2014 2018)

Smart growth principles applied in planning and development (Phuentsholing Structure Plan 2013 2028)

Flood and erosion protection measures installed

Municipal infrastructure constructed

Township management systems installed

Environment. The ongoing project will remain category A for environment. The additional financing will be C for environment as the project will have no significant adverse environmental impacts as it covers cost overruns. The existing environmental management plan will be updated to include 360m of extended length of the Omchhu river protection wall. Since majority of the additional financing funds will be used for covering cost overruns and the scope of river wall extension works are minor, no significant adverse environmental impacts are anticipated. Therefore, no changes to the ongoing project environmental impact assessment will be required.

PMU is satisfactorily implementing all safeguards requirements, and any safeguard implementation issues arising during implementation are being addressed effectively. PMU submits environmental safeguard monitoring reports to ADB and these are reviewed and disclosed in accordance with ADB's SPS. The inputs of the safeguard and environmental specialists in project implementation consultancy will continue to (i) build capacity of the PMU, PIU and relevant stakeholders; and (ii) ensure that the project is implemented in accordance with social and environmental safeguard requirements, and monitor safeguard compliance. An independent environmental monitoring expert will continue to provide technical support to PIU, PIC, and PMU during project implementation and document the progress of the EMP and project compliance to the SPS and Environmental Clearance from the National Environment Commission.

All procurement and recruitment of consultants to be financed by the ADB loan and grant will be carried out in accordance with the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). The procurement capacity assessment concluded that the project's overall procurement risk is moderate. Procurement specialists will help the CDCL prepare and evaluate bids. Funds will be allocated under the project to provide procurement training to the implementing agency and local contractors.

ADB's Anticorruption Policy (1998, as amended to date) was explained to and discussed with the government and DHI and CDCL. The specific policy requirements and supplementary measures are described in the project administration manual.