📋 Tender Overview
Project Name
Highway Project Readiness Financing
Project Number
59093-001
Country / Economy
Bhutan
Project Status
Proposed
Project Type / Modality of Assistance
Grant
Source of Funding / Amount
Grant: Project Readiness Financing (Transport)
Asian Development Fund US$ 2.00 million
Sector / Subsector
Transport / Road transport (non-urban)
Gender
Description
The project readiness financing (PRF) will support the preparation of the Lhamoizingkha-Sarpang Highway. This includes engineering design, environmental and social impact assessments, procurement documents preparation, other relevant due diligence, and independent review. The PRF's scope aligns with ADB's country partnership strategy, 2024-2028 for Bhutan. The design study will focus on (i) biodiversity conservation and sustainable development, (ii) climate resilience measures such as slope protection, and (iii) economic and financial viability.
Project Rationale and Linkage to Country/Regional Strategy
Bhutan is a landlocked country situated in the Eastern Himalayas, bordered by India to the east, west, and south, and the People's Republic of China to the north. Its geography is characterized by steep mountains and deep valleys, leading to dispersed settlements that pose significant challenges for transportation and infrastructure maintenance. Due to its hilly terrain and the absence of other surface transport systems, Bhutan depends heavily on its road network for the movement of people and goods within its borders and with the neighboring Indian states of Assam and West Bengal.
The Thirteenth Five Year Plan (2024-2029) emphasizes sustainability, innovation, and inclusivity. The government aims to transform Bhutan into a developed nation, as demonstrated by the vision to develop Gelephu, a city on the southern border with India into an economic hub and trade gateway. Due to lack of alternative transport systems, Bhutan's reliance on its road network is crucial. The road network has progressively expanded and provides east-west connectivity through the northern east-west highway in the central region of the country. A key government priority is completing the missing links of the Southern East-West Highway and connecting Gelephu.
