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Rapa Quindlen
PUNTCHOLIN – The Puntsholing Township Development Project (PTDP) Zone A is likely to miss its December 2025 completion deadline if the Amochhu temporary shelter remains within the project area.
The temporary shelter, built in 2020 for families affected by Covid-19, accounts for 11% of the project area, covering 17 acres and is located within the central business district of the 160-acre project area. This could result in 13% of the Asian Development Bank (ADB) loan, or Ngultrum 227 million, not being utilized.
The first phase of the project, civil engineering, including river regulation and embankments, was completed in November 2022. The second phase, involving urban infrastructure, is 45% complete.
The N1.74 billion construction is being implemented by Nepali companies Kalika and Rigsar Construction Private Ltd. More than 300 workers are involved in the project.
The project is currently 3% to 4% behind schedule, but project management is optimistic about completing the project by May 2025, which currently leaves 10 months to go.
Kamal Dhakal, project director of Construction Development Company Limited (CDCL), said all works, including sub-parts of the project, must be completed before the ADB loan ends.
The upcoming greening and landscaping contract is expected to be awarded by the end of 2024.
The project has also hired consultants to assist Druk Holding and Investments (DHI) and CDCL in township management and investment promotion, while other consulting firms will help promote the project to attract investors.
PTDP has used 65% of its $93 million budget. ADB provided $81.5 million (88%), including a $34.26 million grant and a $47.24 million loan. DHI invested the remaining $11.5 million (12%) as equity.
The initial phase, managed by India’s AFCONS Infrastructure Limited, saw costs rise to 3.518 billion nunatrum, an 18% increase due to inflation caused by the pandemic. The project began in 2018 and its deadline was extended from May 2021 to 2022.
While the completion of river regulation and embankment works has significantly reduced the flood risk in Amochu, challenges remain, with the 13 drains prone to blockage during the monsoon season. Investment in machinery and other resources is required to clear blockages.
Officials say government intervention is needed to stabilize the hillside and protect downstream development, an issue that could affect PTDP investment.
CDCL project manager Lhendup Dorji explained that these six drains are of particular concern to the Phuentsholing-Chamkuna road project, Amochhu LAP (100 acres) and the township as they have the potential to cause flooding and pose a threat to lives and livelihoods.
About Nu 3.5 million was spent to clear debris from housing areas near six drains within the project area after they were flooded in June 2023. “Without immediate multi-sectoral, long-term intervention to stabilize the mountain, these recurring problems will persist every monsoon season, posing a huge risk to property and incurring considerable recurring expenses over time,” he added.
Under the current “business as usual” scenario, it will take decades for the development of Puentsholing to generate demand for space. A “business-induced” approach is needed to accelerate this process through policy changes and strong government support to make Puentsholing a thriving town.
Currently, the future development and funding for the area remain uncertain. The planned township includes 240 acres in Area B, 650 acres in Area C and the smallest area, Area D. The mountainous area will also be part of the project and will be designated as an eco-tourism hotspot.
DHI leads township development projects to ease space demands and support economic growth, while CDCL manages development projects with a focus on flood control and sustainable infrastructure.
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