India : South Asia Tourism Infrastructure Development Project (Bangladesh, India, and Nepal) - India

Project Name

South Asia Tourism Infrastructure Development Project (Bangladesh, India, and Nepal) - India

Project Number

39399-013

Country / Economy

• India
• Bangladesh
• Nepal
• Regional

Project Status

Closed

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Grant 0179-IND: South Asia Tourism Infrastructure Development Project (Bangladesh, India and Nepal) - Nepal

Source	Amount
Asian Development Fund	US$ 12.75 million

Loan 2578-IND: South Asia Tourism Infrastructure Development Project (Bangladesh, India, and Nepal) - India

Source	Amount
Ordinary capital resources	US$ 20.00 million

Loan 2579-IND: South Asia Tourism Infrastructure Development Project (Bangladesh, India, and Nepal) - India

Source	Amount
Asian Development Fund	US$ 12.75 million

Loan 2580-IND: South Asia Tourism Infrastructure Development Project (Bangladesh, India and Nepal) - Bangladesh

Source	Amount
Asian Development Fund	US$ 12.00 million

Loan 8247-IND: South Asia Tourism Infrastructure Development Project (Bangladesh, India, and Nepal) - India

Source	Amount
OPEC Fund for International Development	US$ 15.00 million

Grant 0383-IND: South Asia Tourism Infrastructure Development Project - Additional Financing

Source	Amount
Asian Clean Energy Fund under the Clean Energy Financing Partnership Facility	US$ 3.00 million

Loan 3117-IND: South Asia Tourism Infrastructure Development Project - Additional Financing

Source	Amount
Asian Development Fund	US$ 30.00 million

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth
• Regional integration

Drivers of Change

• Governance and capacity development
• Partnerships

Sector / Subsector

• Transport / Air transport - Urban roads and traffic management

• Water and other urban infrastructure and services / Renovation and protection of cultural heritage - Urban sanitation - Urban solid waste management - Urban water supply

Gender

No gender elements

Description

ADB and the governments of Bangladesh, India, and Nepal are working together to develop and improve tourism sites and facilities in the three countries. The South Asia Tourism Infrastructure Development Project is improving the infrastructure around key tourist sites and cultural sites in the three countries, and expanding the air and road links that connect the various destinations. This includes upgrading airports; fixing roads; and cleaning up tourist sites with improved water supply, sanitation systems, and solid waste management. Visitor centers will be also be improved. The project is working to spread tourism to remote communities that are currently bypassed by the popular tourist markets. This work is benefiting about 2.4 million people in the three countries through increased income, jobs, improved health and local environmental conditions, and reduced travel times. About 270,000 people are benefiting from new job opportunities created by the project, and at least 5,000 others are enjoying expanded livelihood options.

Project Rationale and Linkage to Country/Regional Strategy

Nepal, the north and northeastern states of India, and Bangladesh have vast and diverse cultural and natural resources. These areas contain many of the world's major Buddhist sites, which could make the area a world destination for nature and culture-based tourism. Tourism already plays a vital role in these areas, employing more than 13 million people in the three countries. Despite the importance of the tourism industry, it remains limited by poor infrastructure; weak protection and management of heritage sites and important tourist areas; and a lack of engagement by the communities surround tourist areas.

Impact

The expected impact of the proposed Project is sustainable and inclusive economic growth and reduced poverty in the subregion.

Project Outcome

Description of Outcome

Nature and culture based tourism destinations of subregional importance with (i) improved connectivity, (ii) better quality environment and visitor services; (iii) enhanced natural and cultural heritage; and (iv) stronger linkages with communities

Progress Toward Outcome

Nepal Component:ADB's funding to GBA component was temporarily suspended from Dec 2017 due to very slow progress (30% against total contract period) with condition to resume funding upon substantial progress. Progress started to improve since then and ADB financing resumed. At an advanced stage of progress, COVID-19 pandemic, subsequent lockdowns, resurgence of COVID on different times, affected the project progress. Import of electrical, communication, navigation equipment under ICB-02 package was affected for a long time due to no-flight restriction around the world due to COVID pandemic. With ease in some travel restriction, majority of the equipment are shipped at site, the experts from various countries required for installation of these high-tech equipment could travel and all installation of CNS equipment are completed. As of March 2022, ADB loans and grant closed. The progress has reached to about 100% for ICB-01 with runway with linking taxiway works, structural works of ITB, Admin Building, CFR building, Apron, Control Tower completed. The calibration and test flight for the airport was performed in March 2022. Government also conducted test flight/operational performance test flight with wide-body aircraft on 28 April 2022. Airport inauguration with commercial flight operation since 16 May 2022. ADB loans and grants closed on 31 March 2022 while OPEC Fund Loan closed on 31 October 2022. Project financially closed on 31 October 2022 with submission of all claims from government. Expected to close the account in ADB books by January 2023.

Implementation Progress

Description of Project Outputs

Enhanced connectivity to and from Lumbini

Enhanced connectivity to selected sites in Sikkim

Enhanced connectivity to selected sites in Bangladesh

Improved Destination to Lumbini Development Area in Nepal

Destination improvements to selected sites in Sikkim

Destination improvements to selected sites in Bangladesh

Enhanced capacity, increased community participation, and improved project management in Nepal

Enhanced capacity, increased community participation, and improved project management in India

Enhanced capacity, increased community participation, and improved project management in Bangladesh

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

Nepal Component:

1. Enhanced connectivity to and from Lumbini

Construction completed. Progress improved since Dec 2017 after major setback in the startup. Progress till March 2022 is 100%. Project got severelly affected by COVID-19 pandemic in 2020 and further disruption of progress is likely due to deadlier 2nd wave of April 2021. Keeping in mind the ongoing pandemic, project was extended until 31 March 2022 and completed within the extended time.

2. Improved Destination to Lumbini Development Area in Nepal

Main activities under this output of Visitor's information Center and procurement of e-vehicles are completed.

3.Enhanced capacity, increased community participation, and improved project management in Nepal

Management and master plans for Lumbini completed. Training of tourism staffs on tourism planning, coordination, monitoring, marketing completed. Business plan for Lumbini is due.

Geographical Location

Nepal

Summary of Environmental and Social Aspects

Environmental Aspects

The Project with additional financing has environmental safeguards categorization level B per ADB's Safeguard Policy Statement 2009, and Environmental Management Plan (EMP) was prepared for GBA and the Lumbini projects as part of the Initial Environmental Examination (IEE) report which is available in Supplementary Appendix to the RRP.

Involuntary Resettlement

The Project is classified as category B for involuntary resettlement. An updated RP for the additional financing of the Project (available as a Supplementary Appendix to the RRP), was prepared for the GBA and outlines the objectives, policy principles, and procedures for land acquisition, compensation, and other assistance measure for affected persons (APs) The revised RP found that the expansion of the GBA requires land acquisition of 869 land plots belonging to 389 households. A summary poverty 56 reduction and social strategy (SPRSS) was prepared for the additional financing of the project. The poverty analysis classified the Project as a General Intervention which is expected to result in additional employment during construction and operation, and improved living conditions for local populations including the poor.The PMIU/CAAN will be responsible for ensuring the updating and implementing the RP and Social Strategy.

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

The PCU established within MOTCA will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; required from Nepal under Section 6.05(b) of the Loan Regulations and Section 6.04(b) of the Grant Regulations and required from CAAN and LDT under Section 2.08(b) of the Project Agreements; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the EA executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.

Business Opportunities

Consulting Services

Teams of international and national consultants will be engaged to assist in managing and implementing the Project in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Services will be required in the areas of project management, detailed design, supervision, community participation, environmental and social safeguards, project performance monitoring, heritage planning and management, ecotourism, airport engineering, institutional development, and financial management. A total of 935 person-months consulting services is expected to be required for the Project; 417 person-months (30 person-months international and 387 person-months national) for Nepal; 333 person-months (12 person-months international and 321 person-months national) for India; and 185 person-months (25 person-months international and 160 person-months national) for Bangladesh.

Procurement

Goods and services financed by ADB and the OPEC Fund for International Development will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding procedures will be used for civil works contracts estimated to cost $10.0 million or more in India, $2.0 million or more in Bangladesh, and $1.0 million or more in Nepal; and for supply contracts valued at $1.0 million or higher. The upper limit for civil works to be procured through national competitive bidding procedures will be less than $10.0 million in India, $2.0 million in Bangladesh, and $1.0 million in Nepal; and for equipment the upper limit will be $1.0 million. Shopping will be used for contracts for procurement of equipment and simple civil works worth $100,000 or less.

Contact

Responsible ADB Officer

Tiwari, Hemant

Responsible ADB Department

South Asia Department

Responsible ADB Division

Nepal Resident Mission (NRM)

Executing Agencies

Department of Tourism-Sikkim State

Timetable

Concept Clearance

30 Sep 2008

Fact Finding

01 Sep 2008 to 06 Sep 2008

MRM

02 Feb 2009

Approval

16 Nov 2009

Last Review Mission

-

PDS Creation Date

07 Oct 2008

Last PDS Update

16 Dec 2022

Funding

Grant 0179-IND

Grant 0383-IND

Loan 2578-IND

Loan 2579-IND

Loan 2580-IND

Loan 3117-IND

Loan 8247-IND