Project Data Sheet

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.

PDS Creation Date 28 Apr 2010
PDS Updated as of 19 Nov 2014

Project Name Infrastructure Development Investment Program for Tourism - Tranche 1
Country India
Project/Program Number 40648-023
Status Approved
Geographical Location Four participating states including Himachal Pradesh, Punjab, Tamil Nadu and Uttarakhand
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Transport
Water supply and other municipal infrastructure and services
Subsector Urban roads and traffic management
Other urban services
Renovation and protection of cultural heritage
Strategic Agendas Environmentally sustainable growth (ESG)
Inclusive economic growth (IEG)
Drivers of Change Gender equity and mainstreaming (GEM)
Governance and capacity development (GCD)
Gender Equity and Mainstreaming Categories Category 2: Effective gender mainstreaming (EGM)

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan2676Ordinary capital resources43,420
Counterpart 18,610
TOTAL US$ 62,030

Safeguard Categories

For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories

Environment B
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Issues

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 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.

Stakeholder Communication, Participation and Consultation

During Project Design
During Project Implementation

Description

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.

Development Impact

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.

Outputs and 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 Implementation Progress (Outputs, Activities, and Issues)
In Himachal Pradesh 3 of 4 contracts and in Punjab 18 of 23 contracts awarded/works are ongoing. 2 of 3 contracts awarded in Punjab under community based activities. In Himachal Pradesh 13 of 18 contracts and in Punjab 3 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 and workshop on community was also held which was attended by 120 women representatives of SHGs. In Punjab, NGO for pilot program appointed. 6 training workshop organized. 678 participants attended the workshop; out of 254 participants were women.
Status of Development Objectives
Status of Operation / Construction
Material Changes

Business Opportunities

Date of First Listing 2010 Nov 03
Consulting Services
All consultants will be recruited according to ADB's guidelines on the use of consultants. The indicative terms of reference for all consulting services are described in the facility administration manual for this investment program.
Procurement
All procurement and goods and civil works will be undertaken in accordance with ADB's procurement guidelines.
Procurement and Consulting Notices
http://www.adb.org/projects/40648-023/business-opportunities

Timetable

Concept Clearance 22 Mar 2010
Fact-finding 01 Jan 1970
Management Review Meeting 06 Mar 2009
Approval 04 Oct 2010

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 2676 04 Oct 2010 20 Jul 2011 26 Oct 2011 30 Jun 2017

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
27 Dec 2014 Loan 2676 25,309 0 58.00%
Cumulative Disbursements
27 Dec 2014 Loan 2676 11,293 0 26.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 2676

Contacts and Update Details

Responsible ADB Officer Ron H. Slangen (rslangen@adb.org)
Responsible ADB Department South Asia Department
Responsible ADB Divisions Urban Development and Water Division, SARD
Executing Agencies Dept of Tourism&Civil Aviation,Gov of Himachal Pra
*

Dept. of Tourism, Gov't. of Punjab
*

Links

Project Website http://www.adb.org/projects/40648-023/main
List of Project Documents http://www.adb.org/projects/40648-023/documents