The Asian Development Bank (ADB) and the Royal Government of Bhutan have signed financing agreements today to support the ongoing Phuentsholing township development and enhance access to finance for rural cottage and small industries (CSIs).

Under the agreements, the government will receive an $18.5 million concessional loan and a $10 million grant as additional financing for the Phuentsholing Township Development Project, as well as a $20 million concessional loan for the Rural Finance Development Project in Bhutan.

“The additional financing for the Phuentsholing Township Development Project will enable the ongoing planned urbanization project to expand the livable city area with improved resilience to flooding. The project will develop approximately 66 hectares of vacant land adjacent to the existing city along the bank of the Amochhu River. It will also support capacity development to improve flood risk management and the delivery of urban services. The project is under implementation by the Druk Holding and Investments Limited. The Rural Finance Development Project will provide financing support to the Bhutan Development Bank Limited to enhance access to credit for rural cottage and small industries (CSIs), fully aligned with the government’s 12th Five Year Plan on creating income-generating opportunities for vulnerable populations and enhancing the rural community,” said Bhutan Finance Minister Namgay Tshering.