ADB approves $13 milion package to boost urban development in Bhutan
Manila, June 28
The Asian Development Bank approved a 13-million-USD financing package to help Bhutan strengthen resilient urban infrastructure and expand affordable rental housing for low-income and vulnerable households.
The package comprises a $5 million concessional loan and an $8 million grant, the bank said in a statement on Saturday.
Bhutan's rapid urbanisation has outpaced infrastructure development, leaving economically disadvantaged households vulnerable to flooding, landslides and substandard housing, Xinhua news agency reported quoting the Bank.
The ADB said the project is expected to provide rental housing units for vulnerable households and improve urban infrastructure such as drainage, water supply and roads.
"Bhutan's cities are growing fast, and this project ensures that growth is safe, inclusive, and resilient," said ADB Country Director for Bhutan Sonomi Tanaka. "By investing in essential municipal infrastructure, affordable housing, and stronger urban planning systems, we are helping build safer, more livable communities while reinforcing Phuentsholing's role as a resilient gateway city and expanding opportunities for low-income and vulnerable households."
According to ADB, the project will improve core urban infrastructure in the Ammochhu local area plan, including drainage, water supply, sewerage, roads, pedestrian walkways, and flood protection. These investments will complement ADB-funded infrastructure under the Phuentsholing Township Development Project while helping reduce service gaps, boost resilience to natural hazards, and unlock additional urban development opportunities in Phuentsholing.
The project incorporates strong measures to promote the protection of women and girls through on-the-job training and employment opportunities for women in urban development. At least 30 per cent of affordable housing units will be allocated to women-headed households.
ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021-2024, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.
— IANS
Reader Comments
$13 million might seem small compared to India's urban budgets, but for Bhutan, this is meaningful. The focus on resilient infrastructure against floods and landslides is very practical given the terrain. Hope the project is implemented transparently.
Bhutan's Gross National Happiness approach is admirable, but it's good that they're also addressing practical urban issues. Affordable rental housing and better drainage will make real difference in people's lives. A good example for other South Asian countries. 👍
While the funding is welcome, I wonder if the local Bhutanese contractors and workers will be given priority over foreign firms for construction. Also, need to ensure that the rental housing stays affordable for the intended low-income groups in the long term.
As a woman, I appreciate the specific measures for women's safety and employment. Flood protection and better infrastructure in Ammochhu will definitely help reduce risks women face during monsoons. Hope similar projects come to India's vulnerable urban areas too.
Bhutan is our friendly neighbour and it's good to see international support for their urban development. The 384,000 people lifted from poverty by ADF is impressive. India has partnered with Bhutan on many projects; this complements our efforts in the region. 🇮🇳🤝🇧🇹
M Meera T