Project Ref (2025-4): Investor Promotion and Transaction Advisory Consultant – ADB Loan 4019-BHU: Phuentsholing Township Development Project

Narrative:

The consultancy aims to explore economic opportunities within the PTDP and provide investment promotion and transaction advisory services to DHI, with the goal of attracting credible property developers and anchor tenants with proven financial capacity. It also includes training and capacity building for PTDP, DHI, and CDCL officials on investment promotion strategies. Additionally, the consultancy will analyze existing policies, laws, and regulations, and recommend necessary reforms to enhance the project’s investment attractiveness while ensuring its social, economic, and environmental objectives are met.

Following were the major scope of the assignment:

• Policy Analysis: i) Review existing policies, laws, and FDI regulations relevant to PTDP investment. ii) Recommend policy and regulatory reforms to enhance project attractiveness and long-term sustainability. iii). Draft concession documents (e.g., tax incentives) for government consideration to support PTDP viability.
• Investment and Promotion Strategy: i) Develop criteria and strategy for identifying quality developers and anchor tenants based on experience, financial strength, and economic impact. ii) Identify potential investors with proven capability to develop PTDP as a vibrant commercial and livable township. iii) Create a comprehensive marketing strategy including a website, videos, investor decks, and promotional materials. iv) Implement marketing through digital platforms, roadshows, social media, exhibitions, and industry events. v) Ensure developer proposals align with PTDP’s vision and objectives. vi) Recommend optimal investment structures considering land ownership laws and investor preferences. vii) Facilitate signed Letters of Intent/MoUs with prospective investors and strive toward formal agreements.
• Business Model: i) Conduct demand analysis to identify interested mixed-use developers and assess appealing PPP models. ii) Model the impact of fiscal incentives (e.g., tax exemptions, duty-free imports) on investor interest. iii) Recommend suitable business models for PTDP (e.g., BOT, BOOT, DBFMO, JV, concessions, or combinations). iv) Identify and propose potential revenue streams for PTDP. v) Prepare a detailed financial model with sensitivity analysis for lease and utility pricing. vi) Develop an operational and financial sharing model between PTDP and Phuentsholing Thromde.
• Transaction Advisory: i) Support investment transactions through due diligence on prospective investors. ii) Assist in structuring joint ventures and PPPs. iii) Draft key transaction documents such as term sheets, prospectuses, and investment agreements.
• Capacity Development: i) Deliver structured and on-the-job training for PTDP/DHI/CDCL personnel in investment and transaction management. ii) Ensure training costs are covered under the provisional sum. iii) Undertake any additional tasks required to fulfill the overall consultancy objectives.