With the successful completion of Package CW-01 by M/s AFCONS Infrastructure Ltd (India) in October 2022, the Phuentsholing Township Development Project (PTDP) has moved swiftly into the implementation of Package CW-02A. This phase, contracted to M/s Kalika-Rigsar Joint Venture (KJRV) in November 2022, is now 85% complete and is expected to be completed by August 2025.
The CW-02A package includes a broad range of key urban infrastructure such as building roads, bridges, water intake and supply systems, sewerage networks, storm water management, solid waste systems, power supply and distribution, telecommunications, and firefighting systems.
An official from Construction Development Cooperation Limited (CDCL)assured that the main construction work is on track for completion by August, but final demobilization may extend the overall timeline to December. “We are preparing fully serviced plots so that, when building construction begins, key infrastructure such as internet, water, and electricity is already in place. Our goal is to ensure that developers can begin work without delays,” the official said.
In addition to core infrastructure, the project also includes a smaller package focused on landscaping, greenery, and environmental components. The official said, “It’s a modest but vital part of the overall project.”
This portion is being executed by Noryang Private Limited as the main contractor, with Green Bhutan Corporation Limited serving as the specialist sub-contractor. The contract for this component is valued at Nu 50.91 million. The projects has officially commenced on 20 December, 2024 and it is expected to complete by the end of this year.
The official shared that so far, no major challenges have been reported on the development of the CW-02A package, aside from delays caused by the monsoon. “The area is developing quickly, and while we have sufficient labor and machinery, the weather, especially during the monsoon, can cause interruptions,” the official said. “However, we are working to recover lost time and aim to meet the expected deadline.”
The project design and implementation have benefited from the involvement of multiple experts. The official shared that as an Asian Development Bank (ADB)-funded initiative, the project is closely monitored by a dedicated consultancy to maintain quality and standards. “We don’t execute the work ourselves directly. Instead, we oversee implementation, procure the contractors, and manage the project’s progress and ensure quality through a comprehensive system of checks and balances,” the official added.
Regarding the budget, the official shared that the budget remains on solid footing. “The initial budget allocated for the PTDP development is sufficient, as the original plan accounted for all the projected costs, including allowances for inflation and rising material prices,” he said, adding that the project is not overly extravagant, but it represents a clear step up from basic development standards.
Additionally, the official shared that they have also maintained several consideration budgets, which have been included for future maintenance.
Meanwhile, the PTDP project was implemented by CDCL as a subsidiary of the Druk Holding Investments (DHI). The overall aim of the project is to protect the existing and new towns from floods and riverbank erosion which in the past had been threatening lives and livelihoods and disrupting connectivity with nearby communities.
It is also a transformative urban initiative set to create a modern, sustainable township in Bhutan. Located near the southwestern border with India, this 157.66 acres of reclaimed land development along the Amochhu River will combine cutting-edge infrastructure with Bhutan’s rich architectural heritage.
The PTDP has emerged as a prime investment destination, offering a compelling mix of strategic location, flexible development opportunities, and alignment with national priorities. Strategically located in Phuentsholing, Bhutan’s commercial gateway—PTDP benefits from direct connectivity to key South Asian markets and immediate proximity to Jaigaon, India. This geographic advantage positions the township as a critical hub for cross-border trade, logistics, and regional commerce.
The development is designed with adaptability at its core, offering flexible land-use models and customizable land parcels to accommodate a wide spectrum of investment opportunities. Whether in commercial, residential, industrial, digital, or green infrastructure sectors, PTDP provides a versatile platform for businesses of all scales to establish and grow.
With funding from the Asian Development Bank and Druk Holding and Investments Ltd, PTDP aims to mitigate flood risks and support the growth of Phuentsholing as a regional economic hub. This development is designed to integrate seamlessly with the existing Phuentsholing municipality, preserving Bhutan’s distinctive architectural style while paving the way for future urban growth.
PTDP will feature:
- 9 precincts including residential, commercial, mixed-use, and green spaces
- 5 convention centers, 165 residential buildings, 4 commercial complexes, and
- 30 mixed-use buildings
- Extensive green areas like amusement parks and sports facilities
- A population capacity of 11,000–15,000 residents
Designed with New Urbanism principles, the development emphasizes walkability, environmental sustainability, and smart urban infrastructure, with over 50% of the area dedicated to open spaces.
The PTDP, once complete, is anticipated to deliver essential urban infrastructure, boost the region’s economic potential, and enhance Bhutan’s ability to withstand climate-related risks through flood mitigation and or ganized urban development.
PTDP is more than just a development. It will also provide opportunities for investors to benefit from the region’s growth potential, a sustainable, flood-resistant design, and a strategic location near India’s commercial hub, Jaigaon. With a focus on modern living and environmental responsibility, PTDP offers a unique opportunity to shape Bhutan’s next great city.
Nidup Lhamo from Phuentsholing
