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Nepal: Second Tourism Infrastructure Development Project

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Nepal: Second Tourism Infrastructure Development Project Completion Report Project Number: 28028 Loan Number: 1451[SF] December 2005 Nepal: Second Tourism Infrastructure Development Project CURRENCY EQUIVALENTS Currency Unit – Nepalese rupee/s (NRe/NRs) At Appraisal At Project Completion April 1996 October 2005 NRe1.00 = $0.0181 $0.0143 $1.00 = NRs55.25 NRs69.75 ABBREVIATIONS ADB – Asian Development Bank BME – benefit monitoring and evaluation CAAN – Civil Aviation Authority of Nepal DCA – Department of Civil Aviation DOT – Department of Tourism EIRR – economic internal rate of return FIRR – financial internal rate of return IA – implementing agency ICB – international competitive bidding IDC – interest during construction IRAD – Integrated Research Application and Development IS – international shopping KMTNC – King Mahendra Trust for Nature Conservation kW – kilowatt LCB – local competitive bidding MLD – Ministry of Local Development MOCTCA – Ministry of Culture, Tourism and Civil Aviation MOTCA – Ministry of Tourism and Civil Aviation MOF – Ministry of Finance NGO – nongovernment organization NTB – Nepal Tourism Board O&M – operation and maintenance PCP – public communications policy PCR – project completion report PEA – project executing agencies PEC – Pokhara Environment Committee PIU – project implementation unit PMU – project management unit PSC – project steering committee PSM – Pokhara Sub-Metropolis PVTDC – Pokahara Valley Town Development Committee RSDC – Rural Self-Reliance Development Center SARD – South Asia Department SDR – special drawing rights TA – technical assistance TD – technical division NOTES (i) The fiscal year (FY) of the Government ends on 15 July. (ii) In this report, “$” refers to US dollars. Vice President L. Jin, Operations Group 1 Director General K. Senga, South Asia Department (SARD) Director H. Kim, Social Sectors Division, SARD Team leader N. Mawilmada, Urban Development Specialist, SARD Team members R. Romasanta, Associate Operations Analyst, SARD CONTENTS Page BASIC DATA ii MAP v I. PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Project Outputs 2 C. Project Costs 5 D. Disbursements 6 E. Project Schedule 6 F. Implementation Arrangements 7 G. Conditions and Covenants 7 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 8 J. Performance of the Borrower and the Executing Agency 8 K. Performance of the Asian Development Bank 8 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Efficacy in Achievement of Purpose 9 C. Efficiency in Achievement of Outputs and Purpose 9 D. Preliminary Assessment of Sustainability 10 E. Institutional Development, Environmental, and Other Impacts 10 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 11 A. Overall Assessment 11 B. Lessons Learned 11 C. Recommendations 12 APPENDIXES 1. Project Framework 14 2. Cost Estimates and Financing Plan 17 3. Breakdown of Annual Disbursements of Asian Development Bank Funds 18 4. Implementation Schedule 19 5. Status of Compliance with Loan Covenants 20 6. Economic Analysis 29 7. Financial Analysis 35 8. Analysis of Institutional Strengthening, Environmental, and Other Impacts 40 9. Overall Project Rating 42 ii BASIC DATA A. Loan Identification 1. Country NEPAL 2. Loan Number 1451(SF) 3. Project Title Second Tourism Infrastructure Development Project 4. Borrower Kingdom of Nepal 5. Executing Agency Ministry of Tourism and Civil Aviation 6. Amount of Loan SDR11,891 million 7. Project Completion Report Number 930 B. Loan Data 1. Appraisal – Date Started 15 January 1996 – Date Completed 28 January 1996 2. Loan Negotiations – Date Started 19 May 1996 – Date Completed 19 May 1996 3. Date of Board Approval 02 July 1996 4. Date of Loan Agreement 27 August 1996 5. Date of Loan Effectiveness – In Loan Agreement 27 November 1996 – Actual 05 December 1996 – Number of Extensions 1 6. Closing Date – In Loan Agreement 31 December 2001 – Actual 15 July 2004 – Number of Extensions 2 7. Terms of Loan – Interest Rate 1 percent per annum – Maturity (number of years) 40 years – Grace Period (number of years) 10 years 8. Terms of Relending (if any) – Interest Rate N/A – Maturity (number of years) – Grace Period (number of years) – Second-Step Borrower 9. Disbursements a. Dates Initial Disbursement Final Disbursement Time Interval 15 April 1997 15 July 2004 87 months Effective Date Original Closing Date Time Interval 05 December 1996 31 December 2001 60 months iii b. Amount ($) Last Net Original Revised Amount Amount Amount Undisbursed Category Allocation Allocation Canceled Available Disbursed Balance Civil Works 5,981,550 5,348,335 (633,215) 5,348,335 7,870,715 0 Equipment 0 and 5,456,556 4,759,762 (696,794) 4,759,762 716,919 Materials Incremental 0 Administration 499,805 457,831 (41,974) 457,831 623,819 Costs Institutional 0 Development 42,323 36,865 (5,458) 36,865 0 and Strengthening Consulting 0 1,814,820 1,650,795 (164,025) 1,650,795 1,765,900 Services Service 0 564,297 493,313 (70,984) 493,313 241,373 Charge Unallocated 2,972,973 1,336,133 (1,636,840) 1,336,133 0 0 Total 17,332,324 14,083,034 (3,249,290)a 14,083,034 11,218,726 0 a Indicates amount cancelled during implementation. Total amount cancelled at loan closing was $6,113,596. 10. Local Costs (ADB Financed) - Amount ($ million) 6.74 - Percent of Local Costs 52.41 - Percent of Total Cost 38.87 C. Project Data 1. Project Cost ($ million) Cost Appraisal Estimate Actual Foreign Exchange Cost 9.73 4.48 Local Currency Cost 7.47 6.74 Total 17.20 11.22 2. Financing Plan ($ million) Cost Appraisal Estimate Actual Implementation Costs Borrower Financed 5.70 6.12 ADB Financed 17.20 11.22 Beneficiary Contribution 0.02 0.00 Total 22.92 17.34 IDC Costs Borrower Financed 0.56 ADB Financed 0.45 0.24 Total 1.01 0.24 ADB = Asian Development Bank, IDC = interest during construction. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Estimate Actual Part A: Pokhara Environmental Improvements 5.12 5.14 Part B: Ecotourism Development 1.07 0.50 Part C: Domestic Airports Improvement 8.59 4.82 Part D: Implementation Assistance 1.86 0.53 IDC and Service Charge 0.55 0.24 Total 17.19 11.23 IDC = interest during construction. iv 4. Project Schedule Item Appraisal Estimate Actual Date of Contract with Consultants Aug 1996 Aug 1997 Civil Works Contract Date of Award Sep 1996 Apr 1997 Completion of Work Dec 2001 Mar 2003a Equipment and Supplies Dates First Procurement Jul 1996b Oct 1997 Last Procurement Jun 2001b Dec 2002 Completion of Equipment Installation Mar 2003 a Actual delivery of waste treatment equipment was in 2005. b Projected dates not mentioned in the implementation schedule. Estimates were based on the commencement and completion dates of the Project as envisaged at appraisal. 5. Project Performance Report Ratings Ratings Development Implementation Implementation Period Objectives Progress From 1 Nov 1998 to 31 Dec 1998 Satisfactory Satisfactory From 1 Jan 1999 to 31 Dec 1999 Satisfactory Satisfactory From 1 Jan 2000 to 31 Dec 2000 Satisfactory Satisfactory From 1 Jan 2001 to 31 May 2001 Satisfactory Highly Satisfactory From 1 Jun 2001 to 31 Jul 2001 Satisfactory Satisfactory From 1 Aug 2001 to 31 Aug 2001 Satisfactory Highly Satisfactory From 1 Sep 2001 to 31 Dec 2001 Satisfactory Satisfactory From 1 Jan 2002 to 31 Dec 2002 Satisfactory Satisfactory From 1 Jan 2003 to 31 Jul 2003 Satisfactory Satisfactory From 1 Aug 2003 to 31 Dec 2003 Satisfactory Unsatisfactory From 1 Jan 2004 to 31 Jul 2004a Satisfactory Unsatisfactory a The project performance report was kept open until July 2004, which is the loan account closing date of the Project. D. Data on Asian Development Bank Missions No. of No. of Specialization Name of Mission Date Persons Person-Days of Membersa Fact-Finding 30 Aug–15 Sep 1995 6 102 a, b, c, d Appraisal 15–28 Jan 1996 4 56 a, b, c, e Loan Inception 30 Sep–11 Oct 1996 3 36 d, e, f Loan Review 1 2–7 Apr 1997 1 6 e Loan Review 2 5–10 May 1998 1 6 e Loan Review 3 8–15 Dec 1998 1 8 b Loan Review 4 7–16 Apr 1999 1 10 b Midterm Review 24 Aug–2 Sep 1999 3 30 a, b, g Loan Review 5 27 Jul–7 Aug 2000 1 12 b Loan Review 6 19–29 Nov 2000 1 11 b Loan Review 7 15–24 Mar 2001 1 10 b, d Loan Review 8 2–11 Oct 2001 2 20 b, h Loan Review 9 28 Feb–7 Mar 2002 2 16 b, i Loan Review 10 15–19 June 2002 2 10 b, j Project Completion Reviewb 24-29 Oct 2005 4 24 b, j, k, l a a – senior financial analyst, b – urban development, c – institutional development, d – programs officer, Nepal Resident Mission, e – senior project specialist, f – senior project implementation, Nepal Resident Mission, g – assistant project analyst, h – senior sector analyst, i – private sector development, j – associate project analyst, k – international Project Completion Review consultant, l – domestic Project Completion Report consultant. b The project completion report was prepared by Mr. Nayana Mawilmada, Urban Development Specialist. v 84 o 00'E NEPAL SECOND TOURISM INFRASTRUCTURE DEVELOPMENT PROJECT PART A: POKHARA ENVIRONMENTAL IMPROVEMENTS MAJOR PROJECT COMPONENTS (as completed) S e ti R K Waste Disposal Site a iv l e i r R Road Yandi River iv e r Improvement of Road r e Originally Proposed Waste Site Access Road iv R Construction and Improvement of Drain o m o 28 15'N la 28 15'N a h River and Creek B Lake Municipal Boundary Boundaries are not necessarily authoritative. SOLID WASTE MANAGEMENT Throughout Municipal Area SANITATION IMPROVEMENTS Throughout Municipal Area r e v i R i t e r S e v i R e k r d i a h y o a P R w h w g e i N H Phewa y a a th hw r ig a Lake P h rithivi H d id S Pri thiv i Hi ghw ay Airport S e ti R B iv i e ja r y a p u F r us R re R iv iv er e r o 28 10'N 28 o 10'N N 0 1 2 Kilometers 84 o 00'E 05-6016 HR I.
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