The project is expected to address numerous challenges faced by Phuentsholing town including space crunch for expansion of the fast growing commercial town
Krishna Ghalley
from Phuentsholing
If funds for construction are available, Druk Holding and Investments (DHI) and its subsidiary company, DHI-INFRA, are set to start development works on the much awaited Amochu Land Reclamation and Township Project (ALRTP) in Phuentsholing by early 2017.
The Integrated Detailed Project Report (IDPR), a 10-month long study report, is under preparation and is expected to be ready by September this year. The IDPR is the final study for the implementation of the project.
HCP Design, Planning and Management Pvt. Ltd of Ahmedabad, India is carrying out the IDPR. DHI-INFRA awarded the consultancy service to the Indian firm in November 2015, which according to DHI-INFRA, has the required experience in design of such projects from their role as the main designer in the Sabarmati Riverfront Project in Ahmedabad, India.
The fundamentals of river training designs will more or less remain the same. The IDPR will improve on the design by taking into consideration more data acquired in the last few years.
“Also the IDPR will review the existing design and propose changes, improvements, to mitigate any possible impact downstream of the project site, while ensuring that the banks are not overflowing during peak floods,” said a DHI-INFRA official.
There are 120 private plots in 70 acres land belonging to individuals close to the project site on the left bank of the Amochu. Of the total, 27 plots which are already under the riverbed due to flooding of the Amochu over the years have been relocated to safer area.
The Phuentsholing Thromde has prepared a Local Area Plan for private landholders who have been accepted by the respective owners and the plan has also received approval from the National Land Commission (NLC). “DHI-INFRA said that the 120 plots were never a problem to the project. Instead, DHI-INFRA is under pressure from them for early implementation of the ALRTP,” said the official.
The core rationale of the land reclamation and township project is river training and bank protection works. This is the costliest component of the project, one of the primary reasons for the delay in taking up the project by the government.
The project will design the riverbanks so that there is no erosion of the banks anymore. The dimension of the riverbank protection walls will such that the highest floods will not overflow the banks.
“The channel dimensions and riverbed slope will be designed to avoid any long-term change to the current river flow dynamics. This will also ensure no impact to downstream river users,” said the DHI-INFRA official.
The river training and bank protection works is expected to give access to about 1,000 plus acres of land on either side of the riverbanks. The township, which will be available to interested investors, will be leased out after all the common urban infrastructure such as roads, sewer lines, water supply, power lines, and car parking facilities, are in place.
“This will provide the necessary revenues to payback for DHI’s investment in the river training works,” said the official.
The IDPR is at the inception report level and the first draft is expected to be available sometime in May 2016.
The new township is expected to address challenges faced by Phuentsholing town today including providing space for social housing to address more than 5,000 Bhutanese living across the border.
The Project is estimated to cost about Nu 10bn, with financing model of 70% debt and 30% equity capital structure. DHI will be injecting the equity requirements while the debt will be pursued from regional and international development finance institutions.
“So far, with support from the Royal Government of Bhutan, the Asian Development Bank is strongly considering DHI’s request for debt financing of the Project. We are hopeful of positive consideration and from other country developments partners such JICA,” said a DHI official.