The country’s most ambitious urban project, the Phuentsholing Township Development Project (PTDP), stands near completion—and on the brink of delay. Along the Amochhu River, embankments, roads, utilities, and landscaped spaces signal a new era for the commercial capital. Designed as a flood-resilient, investment-ready township, PTDP is structurally almost finished.
However, a single issue threatens to stall progress: Amochhu Temporary Shelters (ATS) occupy roughly 11 percent of Zone A, blocking full operationalisation. With investor engagement underway and land marketing in progress, this bottleneck has become a critical challenge, DHI officials say.
By engineering standards, Zone A is nearly complete. Flood and erosion works—including 4.7 km of resilient river walls, land reclamation, and 4.8-metre-high embankments—are fully in place to protect the township. Core infrastructure—roads, water, sewerage, drainage, electricity, and telecom—is 97.6% complete, with only final electrical commissioning and landscaping pending. “This is no longer a construction site. It is a township waiting to be activated,” a Druk Holdings Investment (DHI) official said.
The ATS Roadblock
The occupation of 11 percent of Zone A by ATS has become the project’s most delicate fault line. Despite repeated coordination with authorities, the area remains uncleared. “Clearing this area is both necessary and urgent. Without it, we cannot complete remaining utility infrastructure, and more importantly, we cannot present a fully serviced, integrated township to investors,” a DHI official said.
The impact on investors is already tangible. The continued presence of temporary shelters in a prime location affects perceptions, directly influencing marketability of leasable land and, consequently, the project’s self-liquidating financial model. Delays translate directly into financial risk.
The ATS clearance issue is tied to the unresolved housing transition for affected families. Relocation depends on affordable housing units being developed by the National Housing Development Corporation Limited (NHDCL) under the Amochhu Local Area Plan. While 130 units are planned, infrastructure is not expected to be ready until 2027.
Until these units are available, families remain in temporary shelters, creating a policy and humanitarian gap. The timing mismatch between PTDP’s readiness and housing availability has emerged as the project’s most delicate challenge.
Investors Are Watching
Timing makes the delay particularly critical. DHI confirmed that engagement with potential investors began only recently. Early domestic interest has been strong, with over 20 expressions of interest received even before formal solicitation. Foreign investor engagement is also underway, though clarity on land availability, timelines, and township readiness is essential for finalising incentives and tax structures.
“Infrastructure readiness sends a powerful signal. Unresolved land occupation sends the opposite,” a DHI official said.
Financing Holds—For Now
Following the Finance Minister’s site visit in January 2026, DHI confirmed that the project’s self-liquidating financing model—supported by Asian Development Bank loans, grants, and long-term land leasing—remains intact. But experts caution that momentum is critical. “A self-liquidating project must keep moving. Delays don’t just slow progress—they compound costs,” one urban development expert noted.
Floods Put PTDP to the Test
PTDP faced its first real-world test on October 5, 2025, when floods struck Phuentsholing. Post-flood assessments confirmed that the main flood protection structures performed as designed, protecting reclaimed land and surrounding areas. Damage was limited to non-structural elements such as riverfront walkways, landscaping, and protective stones—all repairable without compromising safety.
Regular maintenance and upstream river management remain vital, however, as uncontrolled dredging could undermine flood safety in the long term.
From Construction to Cityhood
With infrastructure largely complete, PTDP is entering a critical phase: township management and economic activation. Implemented by CDCL, a DHI subsidiary, the 157.66-acre township along the Amochhu River sits at Bhutan’s commercial gateway next to Jaigaon, India, positioning it as a hub for trade, logistics, digital services, and green industries.
Designed around New Urbanism principles, PTDP prioritises walkability, sustainability, and smart infrastructure, with over half the area as green space. Once fully operational, it will include nine precincts, five convention centres, 165 residential buildings, four commercial complexes, 30 mixed-use buildings, and extensive public amenities, supporting 11,000–15,000 residents.
A National Asset at a Crossroads
PTDP is framed as a long-term national asset—generating employment, attracting investment, reducing flood risk, and anchoring climate-resilient urban growth. Yet its greatest challenge is no longer engineering or finance—it is coordination.
The ATS clearance has become a litmus test of Bhutan’s ability to align social policy, housing delivery, and infrastructure timelines. “The project has done what it promised to do. Now the system must do its part,” a senior official said.
PTDP is ready. Embankments are standing. Roads are laid. Utilities are live. Investors are circling. What remains is a single, unresolved question: can Bhutan clear the final obstacle in time to let its most ambitious urban project become a living city? The answer will determine whether PTDP launches as planned—or becomes a cautionary tale of a city paused just before it began.
Nidup Lhamo
From Thimphu
