Bhutan Awards Major Road and Bridge Consultancy Contract Under Eastern South Asia Connectivity Phase 2 Project

Introduction

Bhutan has taken a major step toward strengthening regional trade and transport infrastructure with the award of a high-value consultancy contract under the Accelerating Transport and Trade Connectivity in Eastern South Asia Phase 2 - Bhutan Project. The contract, financed by the World Bank, focuses on detailed design and construction supervision for the Gelephu-Tareythang road and bridge corridor in Sarpang.

This latest contract award marks a significant milestone in Bhutan’s long-term infrastructure development strategy, aimed at improving cross-border connectivity, boosting trade with India, and supporting sustainable economic growth in the southern regions of the country.

The procurement outcome, published as Notice No. OP00419304, highlights the growing momentum of government contracts and international consultancy participation in Bhutan’s infrastructure sector.

Project Background: Strengthening Eastern South Asia Connectivity

The Accelerating Transport and Trade Connectivity in Eastern South Asia The Phase 2 initiative is a regional infrastructure programme supported by the World Bank’s International Development Association (IDA). The programme focuses on improving transport corridors, logistics efficiency, and trade facilitation across Eastern South Asia, including Bhutan.

Bhutan’s participation in the programme reflects its strategic focus on improving domestic and cross-border transport networks. As a landlocked country, Bhutan relies heavily on efficient road infrastructure to connect with regional markets, especially India – its largest trading partner.

Improved road corridors are vital for:

• Reducing transport costs

• Improving supply chain efficiency

• Enabling tourism growth

• Supporting regional integration

• Enhancing access to public services in remote regions

The Gelephu-Tareythang corridor has been identified as a priority route due to its role in linking southern Bhutan to key economic hubs and border trade points.

Contract Award Overview

The Ministry of Industry, Commerce and Employment (MoICE), Bhutan, awarded the consultancy contract on 30 December 2025 using the Quality and Cost-Based Selection (QCBS) procurement method.

The consultancy services include:

• Detailed engineering design

• Construction supervision

• Technical oversight of road and bridge works

• Knowledge transfer and capacity building

The contract duration is 57 months, reflecting the scale and complexity of the infrastructure works.

Financial Details

• Signed Contract Price:

  • USD 4,035,436.84

  • BTN 150,628,648.42

• Final Evaluated Price:

  • BTN 473,750,736

• Financing Source:

  • World Bank IDA Credit V5040

This funding structure demonstrates the continued involvement of international development partners in Bhutan’s infrastructure modernisation.

Winning Consortium: India-Korea Partnership

The consultancy contract was awarded to a joint venture between:

Consulting Engineers Group Limited (India)
DOHWA Engineering Co., Ltd (Republic of Korea)

The consortium achieved the highest combined evaluation score of 91.22, securing first rank among multiple international bidders.

Evaluation Breakdown

Technical and financial evaluation criteria included:

• Consultant experience - 7.20

• Methodology - 20.46

• Key personnel - 39.35

• Knowledge transfer - 3.71

• Participation by nationals - 0.50

• Financial score - 20

• Combined score - 91.22

The strong technical score reflects the consortium’s expertise in transport engineering, project management, and large-scale infrastructure supervision.

About the Winning Firms

Consulting Engineers Group Limited (India)

Consulting Engineers Group (CEG) is one of India’s leading infrastructure consultancy firms, headquartered in Jaipur. The company has delivered projects across Asia, Africa, and the Middle East.

Key expertise includes:

• Highway and bridge engineering

• Urban infrastructure planning

• Environmental and social impact assessments

• Project management and supervision

CEG has played a major role in numerous World Bank-funded and government infrastructure projects.

DOHWA Engineering Co., Ltd (South Korea)

DOHWA Engineering is a globally recognized engineering consultancy with extensive experience in transportation and infrastructure projects.

The firm is known for:

• Highway and bridge engineering

• Smart infrastructure solutions

• International project management

• Sustainable transport systems

The India-Korea collaboration brings together regional experience and global engineering expertise.

Competing Bidders and Tender Results

The procurement process attracted strong international competition. Several engineering consultancies from Korea, Turkey, Nepal, and other countries submitted proposals.

Evaluated Firms

Competing firms included:

• Soosung Engineering Co. Ltd (Korea)

• Korea Engineering Consultants Corp (KECC)

• Tech Studio of Engineering (Nepal)

• KCIENG Co., Ltd (Korea)

• Yuksel Proje (Turkey)

• Dasan Consultants (Korea)

• Kunhwa Engineering & Consulting (Korea)

• Botek Bosphorus Technical Consulting (Turkey)

• Dolsar Engineering (Turkey)

Rejected Proposals

Some proposals were rejected due to failure to meet the minimum technical score of 75, including:

• IRD Engineering SRL (Italy) & Aarvee Engineering Consultants (India)

• K&J Projects Pvt Ltd (India) & Saba Engineering PLC (Ethiopia)

This highlights the rigorous technical evaluation applied in the tender process.

Strategic Importance of the Gelephu-Tareythang Corridor

The Gelephu-Tareythang road corridor is expected to play a transformative role in Bhutan’s transport network.

Key Expected Benefits

1. Improved Trade Connectivity

The corridor will strengthen trade flows between Bhutan and India, facilitating faster movement of goods and reducing logistics costs.

2. Economic Development in Southern Bhutan

Better infrastructure will attract investment, improve business opportunities, and support local industries.

3. Tourism Growth

Enhanced accessibility will help unlock tourism potential in southern Bhutan, supporting local communities and SMEs.

4. Social Impact

Improved roads provide:

• Better access to healthcare and education

• Faster emergency response

• Reduced travel time for rural communities

Role of World Bank Financing

World Bank funding under the IDA framework plays a crucial role in enabling large-scale infrastructure projects in Bhutan.

The funding aims to:

• Promote sustainable transport systems

• Improve climate-resilient infrastructure

• Strengthen institutional capacity

• Encourage regional cooperation

This project aligns with the World Bank’s broader mission of supporting economic development in South Asia.

Procurement Transparency and International Participation

The contract award reflects Bhutan’s commitment to transparent and competitive procurement processes.

Key features of the procurement:

• International competitive bidding

• Quality and Cost-Based Selection method

• Transparent technical evaluation criteria

• Global consultancy participation

Such procurement practices strengthen investor confidence and promote international collaboration.

Knowledge Transfer and Capacity Building

An important component of the consultancy contract is knowledge transfer, ensuring Bhutanese professionals benefit from international expertise.

Expected outcomes include:

• Skills development for local engineers

• Institutional strengthening

• Long-term sustainability of infrastructure management

This approach ensures that Bhutan builds local capacity alongside physical infrastructure.

Future Project Milestones

With consultancy services now awarded, the project will move into the following phases:

1. Detailed engineering design

2. Environmental and social assessments

3. Tendering of construction works

4. Construction supervision and monitoring

5. Project completion and handover

Construction phases are expected to follow once design work is completed.

Regional Impact and Long-Term Vision

The project forms part of a broader vision to create efficient transport corridors across Eastern South Asia.

Long-term regional benefits include:

• Enhanced cross-border trade

• Improved logistics networks

• Stronger regional integration

• Economic resilience

Bhutan’s infrastructure modernisation is expected to contribute to regional supply chain connectivity and economic cooperation.

Conclusion

The award of the Gelephu-Tareythang consultancy contract marks a major milestone in Bhutan’s infrastructure development journey. With international expertise and World Bank financing, the project is poised to deliver lasting economic, social, and regional benefits.

As the project enters the design and supervision phase, it signals Bhutan’s continued commitment to modern transport infrastructure, transparent procurement practices, and sustainable development.

This contract award not only strengthens Bhutan’s road network but also reinforces its role in the growing transport and trade connectivity landscape of Eastern South Asia.

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