Package includes $5 mn concessional loan and $8 mn grant to expand affordable housing and strengthen climate-resilient infrastructure….reports Asian Lite News Desk
The Asian Development Bank (ADB) has approved a $13 million financing package to help Bhutan strengthen climate-resilient urban infrastructure and expand affordable rental housing for low-income and vulnerable households, the multilateral lender announced.
The package comprises a $5 million concessional loan and an $8 million grant aimed at addressing the growing infrastructure needs of Bhutan’s rapidly urbanising towns.
According to the ADB, rapid urban growth in Bhutan has outpaced infrastructure development, leaving many economically disadvantaged households exposed to flooding, landslides and inadequate housing conditions.
The project will support the construction of affordable rental housing for vulnerable families while upgrading key urban infrastructure, including drainage systems, water supply networks, roads and other essential municipal services.
“Bhutan’s cities are growing fast, and this project ensures that growth is safe, inclusive and resilient,” said ADB Country Director for Bhutan Sonomi Tanaka.
“By investing in essential municipal infrastructure, affordable housing and stronger urban planning systems, we are helping build safer, more liveable communities while reinforcing Phuentsholing’s role as a resilient gateway city and expanding opportunities for low-income and vulnerable households,” Tanaka added.
ADB said the project will focus on improving core urban infrastructure in the Ammochhu Local Area Plan, including drainage, water supply, sewerage systems, roads, pedestrian walkways and flood protection measures.
The investments will complement infrastructure developed under the ADB-funded Phuentsholing Township Development Project, helping reduce service gaps, strengthen resilience against natural disasters and unlock further urban development opportunities in Phuentsholing.
The initiative also incorporates gender-focused measures, including on-the-job training and employment opportunities for women in urban development activities. At least 30 per cent of the affordable housing units created under the project will be allocated to women-headed households.
The financing will come from the Asian Development Fund (ADF), which provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021-2024, the fund helped around 384,000 people escape poverty and supported the creation of nearly 500,000 jobs.
