Air Transport Connectivity Enhancement Project-Additional Financing (ADB-44239-014)

  • Bhutan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 29, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 4.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2020

Disclosed by Bank May 13, 2016

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Project Description


The project, together with the original project, will improve safety, security, and capacity at Bumthang, Gelephu, and Yonphula domestic airports by providing infrastructure. The additional financing will further strengthen safety and security, and improve passenger convenience in terms of level of service at these airports. The overall project will support the government's plan to develop a safe, reliable, and efficient air transport system connecting urban and rural centers to help overcome the limitations of road transport, improve accessibility, and promote tourism and high-value agriculture in less-developed regions of the country.


Bhutan is a mountainous, landlocked country with its socioeconomic development largely depending on a safe, reliable, and efficient transport network. The country has an estimated population of 745,000 and a population density of 19 persons per square kilometer, which is the smallest population and the lowest population density in South Asia. Bhutan falls within a seismic risk zone with a moderate to high risk level, and has formidable weather conditions. This makes it difficult for the country to achieve economies of scale in service delivery, and costly to build and maintain physical infrastructure, particularly roads. The high external and domestic transport costs and lack of or limited accessibility have constrained the country's economic and social development.

The overall project is in line with the strategic objective of providing safe and more efficient movement of people and goods as described in ADB's country partnership strategy, 2014 2018. The proposed additional financing is included in the country operations business plan, 2016 2018. Investments in developing a safe, reliable, and efficient domestic air transport network connecting urban and rural centers were identified as priorities for the transport sector and are in line with the government's strategies for development of the transport sector.


Air transport connectivity improved


Consultants will be recruited according to ADBs Guidelines on the Use of Consultants (March 2013, as amended from time to time).


Procurement of goods and works will be undertaken in accordance with ADBs Procurement Guidelines (April 2015, as amended from time to time).

Investment Description
  • Asian Development Bank (ADB)

Grant 0484-BHU: Air Transport Connectivity and Enhancement Project - Additional Financing
Concessional ordinary capital resources / Asian Development Fund US$ 4.00 million

Contact Information


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Responsible ADB Officer Heriawan, Andri
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Information and Communications
Government of Bhutan,
Thimphu, Bhutan