39399-034: South Asia Tourism infrastructure Development Project - Additional Financing
Project Data Sheet (PDS): Details
Description
additional financing concerns the project intervention in Nepal and in particular the necessary capacity upgrading of the Gautam Buddha Airport (GBA) in Lumbini to meet higher international standard. The outputs for Nepal include (i) improved connectivity to Lumbini; (ii) destination improvements; and (iii) capacity development of sector agencies and local communities. The first output originally intended to upgrade GBA s capacity from a local to an international airport with 3,000m runway meeting a regional international standard . The Ministry of Culture, Tourism and Civil Aviation (MOCTCA) is the Executing Agency (EA). The Civil Aviation Authority of Nepal (CAAN) is the implementing agency (IA) for air transport infrastructure and services, and the Lumbini Development Trust (LDT) is the IA for tourism development of the Lumbini area.
Project Rationale and Linkage to Country/Regional Strategy
Implementation progress of GBA has been affected due to (i) longer time taken to engage design and supervision consultants (DSC) and undertake detailed design; (ii) rapid price escalation; and (iii) the need to reassess the GBA design in light of the rapid economic growth of the neighboring countries and faster growth in tourist inflow in Nepal. International tourist arrivals increased by 60% from 500,000 in 2009 to 800,000 in 2012. The Government s Tourism Vision 2020 envisages further increase to 2 million in 2020. In this context, Lumbini is seen as a potential world-class tourist destination for 500 million Buddhist population in Asia. It hosts the birthplace of Buddha, and over 100 related archeological sites scattered around 50 km of the area. UNESCO has designated Lumbini as a World Heritage site (Culture). About 0.9 million tourists visited Lumbini in 2012. While 83% of the visitors are form Nepal and India who mostly travelled over land at present, upgrading of GBA to an international airport will boost direct arrivals of international tourists. GBA is also located in the country s industrial belt in the southern Terai plains, and the Government is establishing its largest special economic zone near GBA that can host up to 200 industries. Accordingly, the Project has attracted substantial private sector interests to invest in tourism and other industries in the area.
Impact
Current Project: Enhanced contribution of tourism to sustainable and inclusive growth in the country Overall Project: Unchanged
Project Outcome
Description of Outcome
Current Project: Nature - and culture-based tourism destinations of country importance (i) improved connectivity, (ii) better quality environment and visitor services; (iii) enhanced natural and cultural heritage; and (iv) stronger linkages with communities Overall Project: Nature-and culture-based tourism destinations improved
Implementation Progress
Description of Project Outputs
Current Project: 1. Enhanced connectivity Overall Project: 1. Enhanced connectivity to and from Lumbini Current Project: 2. Improved Destination Overall Project: 2. Improved community services and tourism facilities Current Project: 3. Enhanced Capacity, increased community participation, and improved project management Overall Project: 3. Improved capacity in tourism development and project management
Safeguard Categories
Environment: B
Involuntary Resettlement: B
Indigenous Peoples: C
Summary of Environmental and Social Aspects
Environmental Aspect
Due diligence was undertaken. The origrnal project is environment B category and there will be no additional environmental impact due to the additional financing.
Involuntary Resettlement
The Project has been reclassified as B category for involuntary resettlement as 95% of land acquisition and compensation payment to affected people have been completed for a 3,000m GBA runway as per the resettlement plan (RP) of the original project, and the executing agency (EA) is committed to complete the remaining work before awarding the GBA contract.
Indigenous Peoples
The Project is category C for indigenous people as the impact of the original project will not change with the additional financing.
Stakeholder Participation and Consultation
During Project Design
Local stakeholder consultations held in Lumbini. Consultations with other stakeholders are ongoing.
During Project Implementation
Relevant stakeholder consultation meetings will be conducted.
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.
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