The arena, costing an estimated BTN24 million (£243,000/$380,000/€309,000) was funded by the Royal Government of Bhutan with contributions from the Olympic Council of Asia, under its Olympasia Project.

It was constructed with the aim of encouraging youth engagement in sport and helping raise standards in an Asian country which made its Olympic debut at Los Angeles 1984 but has yet to win a medal. 

The facility, in the town to the east of capital Thimphu, is designed to maximise the usage of space, with local administrators earmarking space for the facility, despite the scarcity of free land, in view of its growing youth population and overall benefit to the community.