Once constrained by traffic congestion, seasonal floods, and trade bottlenecks, Phuentsholing is now redefining itself as Bhutan’s model for sustainable urban growth and resilience. At the heart of this transformation lies a decade-long partnership with the Asian Development Bank (ADB), whose financing and technical expertise have fueled sweeping improvements in transport, trade logistics, flood protection, housing, and essential services.
Roads That Open Doors
Over the past decade, ADB-supported projects have delivered 8.4 km of new roads and 39 km of upgraded routes, along with four major bridges, including the landmark 122-meter Bhalujhora Bridge. These investments have cut travel times by more than an hour, eased chronic congestion, and unlocked smoother cross-border trade with India—Bhutan’s largest trading partner.
For local businesses, the benefits are tangible. Tshering Tobgay, who runs a grocery store near the new northern bypass, shared:“Now, more people pass by and often stop to buy something. The road has made things better for everyone.”
For students like Passang Dema, safety has been life-changing:“Cars slow down when we cross, which makes us feel much safer.”
Trade Made Smarter
The construction of the Mini Dry Port (MDP) and the Alay Land Customs Station has revolutionized logistics. Today, these facilities handle more than 65% of Bhutan’s exports and imports from the region. Equipped with modern warehouses, cold storage, and e-customs systems, they have drastically reduced clearance times and cut down traffic congestion in town.
“With the new systems, we no longer face the same congestion at the customs office. It’s easier for staff and drivers, and the process is faster,” noted a customs official.
Defending Against Floods
Phuentsholing’s growth was long threatened by flash floods from the Amochhu River. The Phuentsholing Township Development Project (PTDP) has changed that, with 4.7 km of flood protection walls now safeguarding more than 45,000 people.
For residents like Zangmo, a mother of four, the change is deeply personal:“The PTDP has restored my hope. I am finally building my home in this once flood-prone area.”
Building a Green and Inclusive City
Beyond infrastructure, ADB projects are shaping Phuentsholing into a livable and investment-ready city. A new solid waste treatment plant, designed on circular economy principles, will process 15 metric tons of waste daily, reducing landfill pressure and promoting recycling.
At the same time, the Green and Resilient Affordable Housing Sector Project (GRAHSP) is delivering 392 climate-resilient homes for low- and middle-income families.
“By addressing waste and housing challenges, Phuentsholing is becoming not only more livable but also more attractive to investors and visitors,” said Thrompon Uttar Kumar Rai.
Healthcare access is also expanding, with a new satellite health clinic opened in 2024. For young mothers like Dechen Choden, the impact is immediate:“Before this clinic, I had to go to the General Hospital, which was always crowded. Now, I can access the same services much closer to home.”
Engineering for the Future
One of Bhutan’s most groundbreaking projects is underway in Phuentsholing: a 110-meter cut-and-cover tunnel (CCT) at the Bhawanijhora stream. The first of its kind in the country, the tunnel will protect communities and infrastructure from monsoon-induced debris flow, benefiting at least 6,000 residents and facilitating the safe passage of more than 100 vehicles and industrial trucks daily.
An ADB official described the tunnel as a milestone:“By establishing the CCT as a precedent, Bhutan is adopting advanced engineering solutions that strengthen resilience and connectivity—fueling both economic growth and community development.”
A Model for National Growth
Looking ahead, Phuentsholing’s story demonstrates the power of strategic partnerships and targeted investments. From safer roads and thriving small businesses to cutting-edge customs systems and climate-resilient urban planning, the city is becoming a national growth engine.
“To effectively address these pressing challenges, continued support from ADB will be crucial. This collaboration will ensure Phuentsholing sustains its growth and becomes a resilient urban center capable of facing future challenges,” said Thromde Executive Secretary, Pema.
The Bhutan–ADB partnership is more than an infrastructure story—it is a blueprint for sustainable, inclusive development. By balancing economic dynamism with resilience, Phuentsholing is not only powering Bhutan’s present but also shaping its urban future.
Tashi Namgyal
From Thimphu
