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Khyber Pakhtunkhwa Integrated Tourism Development Project FOR OFFICIAL USE ONLY Report No: PAD2618 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 50.6 MILLION US$70 MILLION EQUIVALENT Public Disclosure Authorized TO THE ISLAMIC REPUBLIC OF PAKISTAN FOR A KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT June 6, 2019 Public Disclosure Authorized Finance, Competitiveness and Innovation Global Practice Transport Global Practice Agriculture Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of Public Disclosure Authorized their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective April 30, 2019 Currency Unit = Pakistani Rupee (PKR) PKR141.65 = US$1 US$1 = SDR 0.72 FISCAL YEAR July 1 – June 30 Regional Vice President: Hartwig Schafer Country Director: Patchamuthu Illangovan Zoubida Kherous Allaoua, Guangzhe Chen, Juergen Senior Global Practice Director: Voegele Practice Manager: Nabila Assaf, Oliver Le Ber, Loraine Ronchi Task Team Leader(s): Kiran Afzal, Mohammad Ajmal Askerzoy, Maha Ahmed ABBREVIATIONS AND ACRONYMS AF Additional Financing IFC International Finance Corporation AGP Auditor General of Pakistan IMF International Monetary Fund BDS Business Development Services IP Indigenous People BoK Bank of Khyber IPPF Indigenous Peoples Planning Framework BoQ Bill of Quantities ITZ(s) Integrated Tourism Zone(s) Communication and Works C&W M&E Monitoring and Evaluation Department Contingent Emergency Response Multi-Donor Trust Fund for Khyber CERC MDTF Component Pakhtunkhwa, FATA and Balochistan CPS Country Partnership Strategy MFD Maximizing Finance for Development CSO Civil Society Organization MSME(s) Micro, Small, and Medium Enterprise(s) DA Designated Account MTR Midterm Review Destination Investment and DIMP(s) NPV Net Present Value Management Plan(s) Destination Management DMO NTCB National Tourism Coordination Board Organization Department of Culture, Sports, DoT P2P Peer-to-Peer Tourism and Youth Affairs DT Digital Technology PAP(s) Project Affected Person(s) DTS Department of Tourist Services PCR(s) Physical Cultural Resource(s) EIRR Economic Internal Rate of Return PMU(s) Project Management Unit(s) Economic Revitalization of Khyber ERKF POM Project Operations Manual Pakhtunkhwa and FATA Environmental and Social ESMF PPP(s) Public-Private Partnership(s) Management Framework Environmental and Social ESMP PSC Project Steering Committee Management Plan F&B Food and Beverage RAP Resettlement Action Plan Federally Administered Tribal FATA RPF Resettlement Policy Framework Areas FLFP Female Labor Force Participation SME(s) Small and Medium Enterprise(s) FM Financial Management SSU Shared Services Unit Financial Management Information Systematic Tracking of Exchanges in FMIS STEP System Procurement GAAP Gender Analysis and Action Plan SWM Solid Waste Management GBV Gender Based Violence T&T Travel and Tourism Tourist Information and Facilitation GDA Galliyat Development Authority TIFC Center Tourism Management Information GDP Gross Domestic Product TMIS System Government of Khyber GoKP ToR Terms of Reference Pakhtunkhwa GRM Grievance Redress Mechanism TPMA Third Party Monitoring Agent Information and Communication ICT UN United Nations Technology International Development United Nations Education Scientific and IDA UNESCO Association Cultural Organization IE Implementing Entity WTTC World Travel and Tourism Council The World Bank Khyber Pakhtunkhwa Integrated Tourism Development Project (P163562) TABLE OF CONTENTS DATASHEET ................................................................................. .............................................2 I. STRATEGIC CONTEXT ...................................................................................................... 8 A. Country Context ............................................................................................................................ 8 B. Sectoral and Institutional Context ................................................................................................ 9 C. Relevance to Higher-Level Objectives ......................................................................................... 11 II. PROJECT DESCRIPTION .................................................................................................. 12 A. Project Development Objective .................................................................................................. 12 B. Project Components ................................................................................................................... 12 C. Project Beneficiaries ................................................................................................................... 14 D. Results Chain ............................................................................................................................... 14 E. Rationale for World Bank Involvement and Role of Partners ..................................................... 15 F. Lessons Learned and Reflected in the Project Design ................................................................ 16 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 17 A. Institutional and Implementation Arrangements ....................................................................... 17 B. Results Monitoring and Evaluation Arrangements ..................................................................... 17 C. Sustainability ............................................................................................................................... 18 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 19 A. Technical, Economic and Financial Analysis................................................................................ 19 B. Fiduciary ...................................................................................................................................... 20 C. Safeguards ................................................................................................................................... 21 D. Gender ........................................................................................................................................ 24 V. KEY RISKS ..................................................................................................................... 26 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 27 ANNEX I: Implementation Arrangements and Support Plan ........................................... 38 ANNEX II. Project Components Description ................................................................... 39 ANNEX III. Economic Analysis ........................................................................................ 44 ANNEX IV. Financial Management and Procurement Arrangements .............................. 48 ANNEX V. Gender Analysis and Action Plan ................................................................... 53 The World Bank Khyber Pakhtunkhwa Integrated Tourism Development Project (P163562) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Pakistan Khyber Pakhtunkhwa Integrated Tourism Development Project Project ID Financing Instrument Environmental Assessment Category Investment Project P163562 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 27-Jun-2019 30-Jun-2025 Bank/IFC Collaboration No Proposed Development Objective(s) The project development objective is to improve tourism-enabling infrastructure, enhance tourism assets, and strengthen destination management for sustainable tourism development in Khyber Pakhtunkhwa. Components Component Name Cost (US$, millions) Page 2 of 53 The World Bank Khyber Pakhtunkhwa Integrated Tourism Development Project (P163562) Sector Enablement and Tourism Entrpreneurship 8.00 Infrastructure Planning and Development 55.00 Project Management and Capacity Building 7.00 Contingent Emergency Response Component 0.00 Organizations Borrower: Economic Affairs Division Implementing Agency: Communication and Works Department Department of Tourism, Culture, Sports, Archeology & Youth Affairs PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 77.00 Total Financing 77.00 of which IBRD/IDA 70.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Development Association (IDA) 70.00 IDA Credit 70.00 Non-World Bank Group Financing Counterpart Funding 7.00 Borrower/Recipient 7.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount National PBA 70.00 0.00 0.00 70.00 Page 3 of 53 The World Bank Khyber Pakhtunkhwa Integrated Tourism Development Project (P163562) Total 70.00 0.00 0.00 70.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2019 2020 2021 2022
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