Inclusive and Resilient Urban Development Project (ADB-59217-001)

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.
Specific Location
Bhutan, Phuntsholing
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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."
Borrower
Government of Bhutan - Ministry of Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Construction
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 5.00 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.
Grant Amount (USD)
$ 5.00 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)
$ 10.00 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.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 27, 2026

Disclosed by Bank Oct 8, 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.

The proposed IRUDP will have the following outcome: municipal services in Phuentsholing, and affordable housing for low-income and vulnerable groups in Thimphu and Phuentsholing enhanced. The Ministry of Finance is the executing agency (EA).

The proposed ADB funded Inclusive and Resilient Urban Development Project (IRUDP) project is aligned with the following impact: inclusive, resilient, and sustainable human settlement promoted (Bhutan National Human Settlement Strategy 2017 and National Human Settlement Policy of Bhutan 2019). This project is in continuation of ongoing ADB funded by Green and Resilient Housing Sector Project (GRAHSP) implemented by the National Housing Development Corporation Limited (NHDCL).

Output 1: Inclusive and resilient urban infrastructure in Ammochhu Local Area Plan improved (Essential municipal infrastructure and services in Ammochhu Local Area Plan (LAP) will be newly constructed and upgraded to enhance Phuentsholing’s livability, service delivery, and climate resilience. The output will be implemented by Phuentsholing Thromde).

Output 2: Adequate, affordable, and resilient housing units constructed and allotted for low-income households (Affordable and climate-resilient housing units will be constructed to improve access to safe and adequate housing for low income and vulnerable households in Thimphu and Phuentsholing. The output will be implemented by NHDCL. The housing component will be financed through a $3 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. JFPR).

Output 3: Urban policies and planning, regulatory frameworks, and governance mechanisms strengthened (Targeted technical assistance (TA) will strengthen urban policies, regulatory frameworks, and governance mechanisms of Phuentsholing Thromde, Dungkhag Administration, NHDCL, and other relevant agencies).

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

According to the Initial Environmental Examination document, the project is unlikely to generate environmentally significant adverse impacts for three reasons: the project is located in the core of the Thromde and is surrounded by settlement on both sides, it is not located near any protected or critical or natural terrestrial habitat, and most impacts identified have been found to be predictable, manageable and temporary. Consequently, the project has been classified as Category B per ADB Safeguard Policy Statement (SPS), 2009.

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

Grant (Asian Development Fund): US$ 5.00 million
Loan (Concessional ordinary capital resources lending): US$ 5.00 million


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.

No contacts available at the time of disclosure.

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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