40648-023: Infrastructure Development Investment Program for Tourism - Tranche 1

Project Data Sheet (PDS): Details


As part of the Investment Program, the Project aims to complete subprojects under four or five different components of the Investment Program in the State of Himachal Pradeesh (Part A). A. Component 1: Urban Infrastructure and Service Improvement B. Component 2: Connectivity Improvement C. Component 3: Quality Enhancement of Natural and Cultural Attractions D. Component 4: Community-based Activities E. Component 5: Capacity Development, Community Participation and Project Management

Project Rationale and Linkage to Country/Regional Strategy

The investment program will assist the government in achieving its targets by tapping the tourism sector's potential to contribute to sustainable and inclusive economic growth. It will respond to the urgent need for developing tourism-related infrastructure in the four participating states - Himachal Pradesh, Punjab, and Uttarakhand (the three main states of the North West Himalayan Heritage Circuit), and Tamil Nadu (the anchor state of the South Heritage Circuit) - to promote the economic potential of the tourism sector within a planned framework and address weaknesses in management capacity. These four states voluntarily sought to participate in the implementation of the road map, and the government supported their participation. The government prepared a more specific road map along with a framework for necessary policy and sector reforms for each of the four states under follow-up ADB assistance, and proposed the MFF modality to support the government's medium- and long-term goals. While infrastructure supporting tourism is being put in place, sector reform must be carried out in parallel to attain the goals of more sustainable and inclusive tourism sector development. Key challenges include existing limitations in (i) public sector financing, (ii) sector policies on , and institutional capacities for, heritage site management; (iii) an effective enabling environment for enhanced private sector participation; (iv) operation and maintenance of tourism infrastructure; and (v) effective mechanisms to engage local communities in the tourism value chain. The investment program includes a number of policy-driven sector reforms. The participating states are committed to making investments in the tourism sector more attractive for private sector participation. They will also propmote homestay programs and other noncommercial or semicommercial lodging alternatives, such as bed and breakfast facilities. Each state will develop a tourism policy to mainstream (i) balanced distribution of economic opportunities across the state through the promotion of community-based, tourism-related economic and livelihood activities, and ecotourism development; (ii) financial sustainability of tourism destinations and their heritage assets, and connectivity infrastructure, and (iii) policy and regulatory reforms to provide for adaptive reuse of publicly owned heritage buildings so that additional means of cost recovery are established. The MFF modality is considered suitable for the proposed intervention because developing the capacities of the sector agencies as facilitators and regulators of tourism development will be a gradual process requiring longer-term commitments.


Enhanced contribution of the tourism sector to sustainable and inclusive economic growth

Project Outcome

Description of Outcome

Increased volume of domestic and international tourists to destinations within each participating state

Progress Towards Outcome

Actions towards achieving the outcome are underway as explained further in the status of implementation progress of outputs below.

Implementation Progress

Description of Project Outputs

Enhanced quality of natural and cultural attractions Greater participation by local communities in tourism-related economic activities Improved basic urban infrastructure and services at tourist destinations and attractions Improved connectivity Strengthened capacity of concerned sector agencies and local communities for planning, development, management and marketing of tourist destinations and attractions

Status of Operation/Construction or Implementation Progress

In Himachal Pradesh 2 of 5 contracts and in Punjab 11 of 16 contracts awarded/works are ongoing. 2 of 3 contracts awarded in Punjab under community based activities. In Himachal Pradesh 11 of 17 contracts and in Punjab 2 of 4 contracts awarded/works are ongoing. 1 contract awarded in each state under connectivity improvement. In Himachal Pradesh, NGO for pilot program appointed. 2 training workshop organized. 240 participants attended the workshop; out of 90 participants were women. In Punjab, NGO for pilot program appointed. 3 training workshop organized. 307 participants attended the workshop; out of 100 participants were women.

Safeguard Categories

Environment: B
Involuntary Resettlement: C
Indigenous Peoples: C

Summary of Environmental and Social Aspects

Environmental Aspect
No significant environmental impacts are expected. Impacts can be mitigated through proper siting, design and good construction practices. These are identified in the subproject-specific initial environmental examinations (IEEs) and environmental monitoring plans (EMPs), which are prepared in accordance with ADB s Safeguard Policy Statement (2009). A project management unit and a project management consultant are responsible for the coordination and implementation of the environmental and health and safety activities. Quarterly environmental monitoring reports are prepared. Key environmental benefits include improved on-site and off-site hygiene and sanitary conditions at tourist destinations and increased environmental awareness.

Involuntary Resettlement
Subprojects are not expected to result in any physical or economic displacement due to involuntary acquisition of land, or involuntary restrictions on land use. In case of future unforeseen resettlement issues, the Safeguard Policy Statement (2009) will be followed and a resettlement framework has been prepared.

Indigenous Peoples
The initial screening concluded that no indigenous peoples issues are anticipated, as defined in the Safeguard Policy Statement (2009). An indigenous peoples planning framework has been prepared for future loans, in case the indigenous peoples framework would be triggered.

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

Project Data Sheets (PDS)


Concept Clearance
22 Mar 2010

Management Review Meeting
06 Mar 2009

Board Approval
04 Oct 2010