India: Infrastructure Development Investment Program for Tourism - Tranche 2

Project Name Infrastructure Development Investment Program for Tourism - Tranche 2
Project Number 40648-033
Country / Economy India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2833-IND: Infrastructure Development Investment Program for Tourism - Tranche 2
Ordinary capital resources US$ 43.84 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Sector / Subsector

Transport / Urban roads and traffic management

Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage

Gender Effective gender mainstreaming

As part of the Investment Program, this Project aims to complete subprojects under four or five different components of the Investment Program in the States of Uttarakand and Tamil Nadu.

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. This Tranche 2 covers the two states such as Uttarakhand and Tamil Nadu.

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.


Increased Volume of domestic and international tourists to destinations within the states of Tamil Nadu and Uttarakhand

Project Outcome
Description of Outcome

Enhanced tourism environment in Tamil Nadu and Uttarakhand.

Progress Toward Outcome All works completed and currently under financial closure.
Implementation Progress
Description of Project Outputs

1. Improved basic urban infrastructure and services at tourist destinations and attractions

2. Improved connectivity

3. Enhanced quality of natural and cultural attractions

4. Greater participation by local communities in tourism-related economic activities

5. Strengthened capacity of sector agencies and local communities for planning, development, management, and marketing of tourist destinations and attractions

Status of Implementation Progress (Outputs, Activities, and Issues)

Dansborg fort and museum conserved.

Works related to Ganga Canal not taken up

Pithoragarh fort wall stabilized and conserved.

Aeration plant commissioned. Bio-manipulation work completed at Naukuchiyatal.

Completed basic tourist facilities and amenities in tourist clusters of Tamil Nadu

Number of tourists arrival would be assessed at the time of preparation of the project completion report.

Completed basic tourist facilities and amenities in tourist clusters in Uttarakhand

Adventure centers refurbished/ constructed and equipped with adventure tourism facilities.

Completed ecotourism-resort facility constructed at the North Corbett entry point at Kotdwar in Uttarakhand

Works related to improvements of roads were not undertaken under the project in Tamil Nadu

Subproject related to elevated walk way at Asan Barrage not undertaken in Uttarakhand

10 community based societies operational at Uttarakhand.

Community based societies formed also at Tamil Nadu.

Completed 348 village level meetings conducted in 71 villages by trained community animators at Uttarakhand. Similar trainings also conducted in Tamil Nadu

Tamil Nadu: Completed.

113 persons engaged in tourism support activities in Uttarakhand. 42 tourist guides trained and 912 (92% women) trained in livelihood activities in Tamil Nadu

More than 100 persons trained in micro enterprise development and livelihood activities which includes vulnerable women.

25 staff in Uttarakhand and 75 staff in Tamil Nadu trained on environment, culture, tourism planning, and marketing.

Tamil Nadu: completed.

114 community members in Uttarakhand and 110 members in Tamil Nadu trained.

PPP packages being formulated.

State level tourism plans prepared by the State

Necessary organizational and financial management measures adopted in two states

Gender responsive schemes for livelihood generation designed and implemented in both States.

Gender guide books prepared and shared with beneficiaries and stakeholders

Project was timely managed and remained within budget.

Trekking trail in Pithoragarh constructed

Geographical Location Dehra Dun, Deoban, East Yamuna Reserved Forest, East Yamuna Reserved Forest, East Yamuna Reserved Forest, East Yamuna Reserved Forest, Haridwar, Jim Corbett National Park, Kanniyakumari, Madurai, Mahabalipuram, Muttukadu boat house, Nagapattinam, Naini Tal, Ooty, Palani, Pithoragarh, Rameswaram, Srirangam, Tamil Nadu, Thanjavur, Tharangambadi, Tiruvannamalai, Uttarakhand, Velanganni
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects 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 ADBs 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 All impacts were avoided in both Tamil Nadu and Uttarakhand during implementation.
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.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Project 2 will finance various consultant contracts including one PMC and one DSC for Tamil Nadu and one PMC and three DSCS for Uttarakhand. In addition, Project 2 will support consultant contracts on development of tourist statistics for both states. The recruitment will be undertaken in accordance with the ADB s Guidelines on the Use of Consultants (2010, as amended from time to time). EOIs will be posted in November 2011 for PMCs, while the recruitment of DSCs will follow.
Procurement All procurement of goods and works will be undertaken in accordance with ADB Procurement Guidelines (2010, as amended from time to time). The procedures and modes as agreed and used under project 1 are in compliance with ADBs Procurement Guidelines (2010, as amended from time to time). The standard bidding documents and procurement procedures, as used for NCB under project 2, are reviewed and will be approved by ADB.
Responsible ADB Officer Majumder, Sourav
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission (INRM)
Executing Agencies
Department of Tourism, Culture, and Religious Endowment (DOTCRE), Government of Tamil Nadu
Department of Tourism, Govt of Uttarakhand
Concept Clearance -
Fact Finding -
Approval 15 Dec 2011
Last Review Mission -
Last PDS Update 25 Sep 2018

LoanĀ 2833-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2011 02 Apr 2012 19 Jun 2012 31 Dec 2017 30 Jun 2018 06 Dec 2018
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 62.61 Cumulative Contract Awards
ADB 43.84 17 Jun 2022 30.85 0.00 100%
Counterpart 18.77 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 30.85 0.00 100%

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