The Asian Development Bank (ADB) has sanctioned a $13 million financing package to aid Bhutan in enhancing resilient urban infrastructure and expanding affordable rental housing for low-income and vulnerable households. This package includes a $5 million concessional loan and an $8 million grant, as stated by the bank. Bhutan’s rapid urbanization has surpassed infrastructure development, leaving economically disadvantaged households at risk of flooding, landslides, and inadequate housing, as reported by Xinhua news agency citing the Bank.
The project aims to offer rental housing units for vulnerable households and enhance urban infrastructure like drainage, water supply, and roads. ADB Country Director for Bhutan Sonomi Tanaka mentioned, “Bhutan’s cities are growing fast, and this project ensures that growth is safe, inclusive, and resilient.” By investing in essential municipal infrastructure, affordable housing, and stronger urban planning systems, the initiative aims to create safer, more livable communities while strengthening Phuentsholing’s position as a resilient gateway city.
The project will enhance core urban infrastructure in the Ammochhu local area plan, encompassing drainage, water supply, sewerage, roads, pedestrian walkways, and flood protection. These investments will complement ADB-funded infrastructure under the Phuentsholing Township Development Project, bridging service gaps, enhancing resilience to natural hazards, and unlocking further urban development opportunities in Phuentsholing. The project also includes initiatives to support women and girls through on-the-job training and employment opportunities in urban development, with at least 30% of affordable housing units earmarked for women-headed households.
The Asian Development Fund (ADF) provides grants to the most impoverished and vulnerable countries in Asia and the Pacific. Between 2021 and 2024, the fund assisted 384,000 individuals in overcoming poverty and facilitated the creation of approximately 500,000 jobs.
