Preparing the National Highway Expansion Project (Lhamoizingkha-Sarpang) (previously Highway Project Readiness Financing) (ADB-59093-001)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bhutan
Geographic location 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
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 2, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Bhutan - Department of Surface Transport
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 2.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 2.14 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 21, 2026

Disclosed by Bank Sep 2, 2025

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, 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.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Project Financing Amount: $2,140,000
ADB Financing: $ 2,000,000
Cofinancing (ADB Administered):
Non-ADB Financing: $ 140,000


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

For the Recipient:

Secretary
Ministry of Finance
Royal Government of Bhutan
Thimphu, Bhutan
Facsimile Number: (975) 2 330 113

 For ADB:

Asian Development Bank
6 ADB Avenue
Mandaluyong City
1550 Metro Manila
Philippines
Facsimile Numbers: (632) 8636-2444

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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