Bhutan Livable and Competitive Cities Program (WB-P506841)

Countries
  • Bhutan
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
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
A
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 5, 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 - Ministry of Finance / Ministry of Infrastructure and Transport (MoIT)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Law and Government
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)
$ 20.00 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)
$ 28.00 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)
$ 48.00 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.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 27, 2025

Disclosed by Bank Jan 19, 2025


Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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 will aim to enhance livability and climate resilience in the project area through improved infrastructure and service delivery. It will comprise two components: (i) resilient and low-carbon service delivery, piloting key investments, and (ii) urban management, planning, and capacity building.

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.

Environmental and Social Risk Classification (ESRC): Substantial

Main potential environmental risks and impacts of the project are associated with civil works for upgrading road and water and wastewater facilities under Component 1. During construction these include: i) impacts on terrestrial and aquatic habitats due to vegetation clearance, erosion from terrace cutting and earth excavation, quarrying and materials borrowing, bridge building, construction waste and wastewater disposal, and river siltation; ii) health and safety concerns particularly in view of the limited construction space in crowded urban areas; and iii) other risks such as landslide due to construction activities, which can be exacerbated by climatic events, and vibration impact on structures in particular cultural heritage sites. During operation, the main concerns are associated with traffic safety and noise impacts, waste management practices at bus terminals, and improper operation of water supply and wastewater treatment facilities. While the proposed activities are primarily upgrading and improvements of small to medium-sized infrastructure, in view of these impacts and risks associated with diverse activities to be conducted in a crowded urban area featured with rich cultural heritage, and the weak environmental management capacity of the implementing agencies, the environmental risk is rated Substantial. Component 2 investment planning activities may have downstream ES risks which are not anticipated to be significant, and will be further screened during project preparation and factored into appraisal stage E&S risk classification.

Social risk is rated as substantial. The project activities may involve land acquisition, leading to physical and economic displacement, including permanent or temporary impacts on the livelihoods of affected people. Potential impacts on community health and safety may arise during construction due to terrace cutting and vibrations from civil works, and during operation, primarily due to traffic safety risks in a densely populated urban area. Potential labor-related risks during construction may include occupational health and safety issues, as well as the potential for child labor and forced labor. Issues related to women and persons with disabilities, including the lack of universal access in the design of civil works, urban infrastructure and transport services, need to be addressed, along with risks of Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH), particularly due to labor influx in a dense urban setting. The project will be implemented in areas with significant cultural heritage sites, including national memorials and temples, which could be impacted by vibrations from excavation and heavy equipment use. Additionally, the implementing agencies currently lack adequate capacity in managing social risks and impacts and are new to the relevant Bank’s Environmental and Social Framework (ESF) standards.

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

Green Climate Fund: US$ 28.00 million

IDA Credit: US$ 20.00 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.

CONTACT POINT - World Bank

Task Team Leader: Maximilian Fischbach
Title: Urban Specialist
Email: mfischbach@worldbank.org

TTL Contact: Hongye Fan
Job Title: Senior Urban Transport Specialist
Email: hfan1@worldbank.org

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works