Manila, June 28 : The Asian Development Bank (ADB) approved a 13-million-USD financing package to help Bhutan strengthen resilient urban infrastructure and expand affordable rental housing for low-income and vulnerable households.

The package comprises a $5 million concessional loan and an $8 million grant, the bank said in a statement on Saturday.

Bhutan's rapid urbanisation has outpaced infrastructure development, leaving economically disadvantaged households vulnerable to flooding, landslides and substandard housing, Xinhua news agency reported quoting the Bank.

The ADB said the project is expected to provide rental housing units for vulnerable households and improve urban infrastructure such as drainage, water supply and roads.

"Bhutan's cities are growing fast, and this project ensures that growth is safe, inclusive, and resilient," said ADB Country Director for Bhutan Sonomi Tanaka. "By investing in essential municipal infrastructure, affordable housing, and stronger urban planning systems, we are helping build safer, more livable communities while reinforcing Phuentsholingâ??s role as a resilient gateway city and expanding opportunities for low-income and vulnerable households."

According to ADB, the project will improve core urban infrastructure in the Ammochhu local area plan, including drainage, water supply, sewerage, roads, pedestrian walkways, and flood protection. These investments will complement ADB-funded infrastructure under the Phuentsholing Township Development Project while helping reduce service gaps, boost resilience to natural hazards, and unlock additional urban development opportunities in Phuentsholing.

The project incorporates strong measures to promote the protection of women and girls through on-the-job training and employment opportunities for women in urban development. At least 30 per cent of affordable housing units will be allocated to women-headed households.

ADF provides grants to the poorest and most vulnerable countries in Asia and the Pacific. During 2021â??2024, the fund helped 384,000 people emerge from poverty and generated around 500,000 jobs.

/IANS