Overview
Bhutan’s rapid urbanization, coupled with inadequate infrastructure, has resulted in a shortage of essential urban services. Access to water, sanitation, solid waste management, and urban transport is often inadequate in many urban centers. The Tenth Five-Year Plan highlights the need for investment in urban infrastructure in Thimphu, Phuentsholing, and other urban centers to ensure sustainable urban management.
Thimphu, Bhutan’s capital, has a population of 92,000, making up 40% of Bhutan’s urban population, with expectations to double by 2025. The city faces four major infrastructure challenges:
1. Water supply
2. Wastewater collection and treatment
3. Drainage and flooding
4. Solid waste management
The Urban Infrastructure Development Project (UIDP), supported by the Asian Development Bank (ADB), is addressing water supply, wastewater collection, and solid waste management issues. However, wastewater management remains a priority due to pollution from wastewater discharge, solid waste, and industrial effluents degrading the environment.
Phuentsholing: Challenges and Proposed Solutions
Phuentsholing, Bhutan’s second-largest urban center, had a population of 20,537 in 2005, expected to reach 31,996 by 2025. Key urban issues include:
- Traffic congestion caused by a single entry/exit point.
- Poor urban mobility due to congested roads with local traffic and transport related to cross-border trade.
Proposed solutions include bypass roads, new bridges, an alternative crossing over Om Chu River, and a second border gate to alleviate congestion. The UIDP has already contributed to improving roads and municipal services in Phuentsholing.
Sarpang (SJM): Infrastructure Needs and Growth Potential
Sarpang (SJM), Bhutan’s fourth municipality, had 5,952 residents in 2005, with the population expected to triple by 2025. The satellite town of Deothang is also now part of SJM. Despite its strategic location as a trade gateway, it has received less investment in infrastructure compared to Thimphu and Phuentsholing.
Key infrastructure needs include:
- Unplanned road networks
- Inadequate water supply – Current sources provide only 1.1 MLD, whereas 3.7 MLD is needed.
- Poor water distribution system – High leakage and contamination.
- Insufficient sanitation and drainage – Most drains are open, leading to flooding.
Future developments in Sarpang must prioritize infrastructure upgrades to support the growing population and facilitate trade.
Alignment with National and International Goals
The UIDP aligns with Bhutan’s national urban development plans and the ADB’s Bhutan Country Partnership Strategy, which focuses on:
- Upgrading city planning.
- Strengthening municipal management.
Additionally, the project contributes to ADB’s Strategy 2020, aiming for environmentally sustainable urban infrastructure. The initiative supports Millennium Development Goal 7, focused on sustainable environmental development.
Nganglam: A Growth Center with Infrastructure Challenges
Nganglam, designated as the growth center of southeastern Bhutan, has significant industrial development potential. However, infrastructure investment is lacking, and key needs include:
- Urban expansion – Particularly the development of Rinchenthang town.
- Improved water supply and urban transport – Essential to meet growing demands.
Detailed planning and investment in these areas are critical to supporting future development.
Lessons Learned from Past Urban Projects
Important lessons from previous urban development projects include:
- expanded assistance for integrated urban development in key urban centers;
- continued involvement in the sector as key to capacity building of municipalities and for meeting municipal service requirements of rapidly growing populations;
- the ability of local governments to plan budgets, manage operation and maintenance (O&M), and deal with private sector service providers requires considerable strengthening and technical capacity building;
- local governments have low revenue bases and struggle to provide basic O&M, thus requiring gradual introduction of cost-reflective utility tariffs and user fees.
For more details, please visit the Asian Development Bank Project Page.