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BHUTAN URBAN DEVELOPMENT PROJECT
OTHER PROJECTS

PROJECT TITLE: Bhutan Urban Development Project

CREDIT NO : IDA BHU-3310
PERIOD OF PROJECT: 24 May2000 - 30 June 2005

TOTAL LOAN/CREDIT:US $ 10.80 Million


Project Background:

The project is funded under International Development Association of the World Bank's Credit No. IDA BHU - 3310, to implement high priority infrastructure investment and services in a sustainable manner. At the same time the Project is also to strengthen the capacity of responsible institutions both at the Department of Urban Developement and Housing and the Dzongkhag level to plan, finance and execute the specific investment components.

The Project covers the following 10 selected municipalities, viz

  • Paro
  • Wangdue Phodrang
  • Trongsa
  • Zhemgang
  • Tingtibi
  • Bumthang
  • Lhuntse
  • Trashi Yangtse
  • Duksum and
  • Rangjung

Project Objectives

The objective of the project is to improve the quality of life through enchancement of the level of coverage of basic urban services in selected secondary towns of Bhutan. Primarily the project will:

  • Strengthen the financial and institutional capacity of the responsible authorities to deliver such services.
  • To finance high-piriority investments for which there is a broader public support.

These objectives also reflect the Royal Government of Bhutan's policy of balanced regional development, decentralization and its dedication to environmentally sustainable development


Executive Summary

1. The Bhutan Urban Development Project (BUDP), under the Department of Urban Development and Housing (DUDH), Ministry of Works and Human Settlement (MWHS) is implementing the development of ten secondary towns in Bhutan with financial assistance from the World Bank. Out of ten towns, three of them had started their development since 1988. The purpose of the project is to ensure that there is a balanced and equitable development within the country. The project provides a number of public facilities. The total cost of the project is estimated at US$ 12.3 million. Out of the total project cost, US$ 10.80 million is on credit and the rest is financed by the RGOB.

2. The main objectives of this Resettlement Action Plan are two: to assess the adverse impacts associated with project activities and to prepare a resettlement action plan that provides assistance to affected people to reestablish their livelihood and minimize net losses due to the project.

3. The main legal instrument for the land acquisition in Bhutan is the land Act of 1979. The Act provides the compensation mechanism for land and other properties affected by any activity. In the absence of formal resettlement policy, the RGOB has come up with the policy framework for land acquisition and resettlement1999.

4. The activities of the project are spread over an area of 288 acres of which 47.5 acres are private land belonging to 77 households. In total, the project had affected 79 households of which two households' livelihood is affected. The project had acquired all 47.5 acres of private land. The project had also acquired four traditional houses, a septic tank and a hut.. Only five households lost their fruit trees.

5. 77 percent of the total land acquired was paid compensation. The compensation for rest of the land was reported to be under process. Compensation for three houses, septic tank and fruit trees were also paid. The compensations were paid in line with the prevailing Bhutan Schedule of Rates.


Urban Infrastructure Improvement Project
Urban Sector Programme Support