Bhutan: Water Flagship Program Support Project

Agriculture, natural resources and rural development / Irrigation - Rural water supply services

Water and other urban infrastructure and services / Urban water supply

The project will provide safe, sustainable and inclusive drinking water, and irrigation services to about 100,000 people who suffer from water insecurity in Thimphu and Gelephu municipalities (Thromdes) and Chhukha, Wangdue Phodrang, Zhemgang and Mongar districts (Dzongkhag) of Bhutan. It will adopt disaster- and climate-resilient designs and improve institutional and local communities' capacity for sustainable drinking water and irrigation services.

Bhutan has the highest per capita freshwater availability in South Asia. However, the country is confronted with localized and seasonal water shortages for drinking and agricultural purposes because of its topography (steep mountains and deep valleys), insufficient infrastructure, and limited capacity for sustainable service delivery. Although 97.2% of the country's population (757,042 people) is served by basic drinking water services, access to safe and reliable (safely managed) drinking water remains a challenge for most people in rural and urban areas. Water supply is mostly intermittent, often ranging from 4 to 12 hours per day, and not reliable for 18.4% of households. Only 36.2% of Bhutan's population is served by water that is reported as free from contamination. Irrigation services coverage is limited to 32% of irrigable land, mostly designed for paddy cultivation, and a third of existing irrigation systems have scarce or inadequate water supply. As a result, people in rural and urban Bhutan, especially women and the poor, sacrifice productive time collecting water and/or coping with water-borne diseases. Farmers' income is constrained by no or limited irrigation services, which lowers agricultural productivity.

Water infrastructure development in Bhutan has not coped with the level of population growth (1.3% per annum between 2005 and 2017) and urbanization (37.8%), and is insufficient to fulfill the current service demand in rural villages, district towns, and city areas. Underdeveloped drinking water and irrigation infrastructure leaves pockets of rural population to rely on unreliable drinking water services (20.2% of rural households) and rainfed agriculture. Peri-urban areas of cities (e.g., in the national capital Thimphu) and towns (e.g. Bajo, Gedu, Tshimasham and Zhemgang) are still served by old community or rural water supply schemes (RWSS), which are poorly functional, unreliable, and do not have sufficient capacity to provide sustainable services to current and future population. These schemes are also characterized by poor drinking water quality because of insufficient treatment infrastructure and water and sanitation safety planning. Gelephu city and towns such as Mongar rely on water sources such as infiltration galleries or small streams, which are at risk from washing off during monsoons and drying up in winter. Nonrevenue water is estimated to be 30%-55% in urban centers due to aging infrastructure, and poor operation and maintenance (O&M) and demand management. Thimphu's core area distribution network is worn out with high physical losses water and almost no metering in certain areas.

The project will (i) establish and/or rehabilitate drinking water and irrigation infrastructure and make it disaster- and climate-resilient, (ii) strengthen the capacity and awareness of institutions and local communities in safe, sustainable and resilient water management and sanitation, and (iii) establish climate smart water management system

Sustainable water achieved (Twelfth Five-Year Plan 2018-2023 - National Key Result Area 17)

Food self-sufficiency and nutrition security enhanced (Twelfth Five Year Plan 2018-2023 - National Key Result Area 8)

Resilience of residents and farmers to climate and disaster risks strengthened

Climate- and disaster-resilient drinking water supply and irrigation infrastructure developed

Climate-smart water management systems established

Capacity, governance, and awareness of inclusive, resilient, and sustainable water management strengthened

Solutions for improved and climate-resilient farmers' livelihoods introduced

A project management unit (PMU) will be established in the Department of Engineering Services (Water and Sanitation Division) of the MOWHS for overall project management and will include staff from MOAF for irrigation subprojects design and implementation. A project implementation unit in each district and municipality will conduct procurement and be responsible for subproject implementation at the local level with support from PMU.

An estimated 159 person-months (24 international, 135 national) for the Project Management and Supervision Consultant (PMSC) are required to (i) facilitate project management and implementation, (ii) strengthen construction supervision, (iii) support community mobilization activities, (iv) strengthen the institutional and operational capacity of the executing and implementing agencies, (v) support with preparation and verification of detailed engineering designs, and (vi) provide tariff implementation guidelines. Another consultant Capacity Building and Livelihood Support Consultant (CBLSC) shall be supporting components funded under JFPR grant. Key activities of this consultant include (i) establishing water users' associations at community level for effective water use and water resource management; (ii) strengthening capacity of local communities in water service delivery and increasing community awareness on safe, sustainable and climate resilient water management and sanitation; and (iii) enhancing resilient rural livelihood. Both the consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality-cost ratio of 90:10. Individual consultants will be engaged using the individual consultant's selection method.

A project management unit (PMU) has been established in the Department of Engineering Services (Water and Sanitation Division) of the MOWHS for overall project management and will include staff from MOAF for irrigation subprojects design and implementation. A project implementation unit in each district and municipality will conduct procurement and be responsible for subproject implementation at the local level with support from PMU.

Value for money will be achieved through single-point responsibility contracts (e.g., design, supply, and installation with O&M) for the drinking water treatment plant in Thimphu-Pamtsho and climate-smart water management systems. The combination of capital cost and O&M will result in selecting the solution that offers the greatest value for money. This is enhanced by the strategic packaging of remaining procurement into small works packages with national advertising and one large package for international advertising given its size and complexity.