Completion Report
Project Number: 40648-033 Loan Number: 2833 January 2021
India: Infrastructure Development Investment Program for Tourism - Tranche 2
This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.
CURRENCY EQUIVALENTS
Currency unit – Indian rupee/s (₹)
At Appraisal At Project Completion 7 October 2011 6 December 2018 ₹1.00 = $0.0202 $0.0142 $1.00 = ₹49.35 ₹70.64
ABBREVIATIONS ADB – Asian Development Bank CBT – community-based tourism DMF – design and monitoring framework DSC – design and supervision consultant EMMP – environmental management and monitoring plan EIRR – economic internal rate of return GAP – gender action plan IEE – initial environmental examination km – kilometer MFF – multitranche financing facility NGO – nongovernment organization O&M – operation and maintenance PIU – project implementation unit PMC – project management consultant PMU – project management unit PPP – public–private partnership SPS – Safeguard Policy Statement TA – technical assistance
NOTES
(i) The fiscal year (FY) of the Government of India ends on 31 March. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 31 March 2020. (ii) In this report, “$” refers to United States dollars.
Vice-President Shixin Chen, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Director Takeo Konishi, India Resident Mission (INRM), SARD Team leaders Anita Kumari, Associate Project Analyst, INRM, SARD Sourav Majumder, Senior Project Officer (Urban), INRM, SARD Team members Nilesh Kumar, Associate Environment Officer, INRM, SARD Ashwin Hosur Viswanath, Senior Project Officer (Urban), INRM, SARD Sumeet Rathore, Associate Safeguards Officer, INRM, SARD
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.
CONTENTS Page BASIC DATA i I. PROJECT DESCRIPTION 1 II. DESIGN AND IMPLEMENTATION 1 A. Project Design and Formulation 2 B. Project Outputs 2 C. Project Costs and Financing 5 D. Disbursements 6 E. Project Schedule 7 F. Implementation Arrangements 7 G. Technical Assistance 8 H. Consultant Recruitment and Procurement 8 I. Gender Equity 8 J. Safeguards 9 K. Monitoring and Reporting 9 III. EVALUATION OF PERFORMANCE 10 A. Relevance 10 B. Effectiveness 11 C. Efficiency 11 D. Sustainability 12 E. Development Impact 12 F. Performance of the Borrower and the Executing Agencies 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 14 IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14 A. Issues and Lessons 14 B. Recommendations 15
APPENDIXES 1. Design and Monitoring Framework 16 2. Cost Breakdown 23 3. Contract Awards and Disbursement of ADB Loan Proceeds 24 4. Summary of Contract Packages 26 5. Implementation of Gender Action Plan 31 6. Safeguard Assessment 42 7. Status of Compliance with Loan Covenants 46 8. Economic and Financial Analysis 56 9. Contribution to ADB’s Results Framework 67
BASIC DATA A. Loan Identification 1. Country India 2. Loan number and financing source 2833, ADB’s ordinary capital resources 3. Project title Infrastructure Development Investment Program for Tourism: Tranche 2 4. Borrower India 5. Executing agencies Department of Tourism, Government of Uttarakhand Department of Tourism and Culture, Government of Tamil Nadu 6. Amount of loan $43.84 million 7. Financing modality Multitranche financing facility
B. Loan Data 1. Appraisal – Date started 10 August 2011 – Date completed 24 August 2011 2. Loan negotiations – Date started 23 November 2011 – Date completed 23 November 2011 3. Date of Board approval 15 December 2011 4. Date of loan agreement 2 April 2012 5. Date of loan effectiveness – In loan agreement 1 July 2012 – Actual 19 June 2012 – Number of extensions None 6. Project completion date – Appraisal 30 June 2017 – Actual 30 June 2018 7. Loan closing date – In loan agreement 31 December 2017 – Actual 30 June 2018 – Number of extensions 1 8. Financial closing date – Actual 6 December 2018 9. Terms of loan – Interest rate London interbank offered rate-based – Maturity (number of years) 25 – Grace period (number of years) 5 10. Terms of relending (if any) – Interest rate Not applicable – Maturity (number of years) Not applicable – Grace period (number of years) Not applicable – Second-step borrower Not applicable
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11. Disbursements a) Dates
Initial Disbursement Final Disbursement Time Interval 10 December 2012 6 December 2018 72 months Effective Date Actual Closing Date Time Interval 19 June 2012 6 December 2018 78 months
b) Amount ($ million)
Increased Last Original during Canceled during Revised Amount Undisbursed Allocation Implementation Implementation Allocation Disbursed Balance Category (1) (2) (3) (4=1+2 3) (5) (6=4 5) – – Works 17.63 (1.06) 8.30 8.27 8.27 0
Equipment 1.56 12.16 13.72 13.72 0
Training, workshops and 2.06 (1.79) 0.27 0.27 0 surveys
Consulting services 11.20 (1.34) 4.69 5.17 5.17 0
Incremental 6.00 (2.58) 3.42 3.42 0 administration cost Unallocated 5.39 (5.39) 0 0 0
Total 43.84 0.00 12.99 30.85 30.85 0
( ) = negative. Source: Asian Development Bank.
C. Project Data 1. Project cost ($ million)
Cost Appraisal Estimatea Actualb Foreign exchange cost 1.41 Local currency cost 42.88 Total 44.29 a A breakdown of foreign exchange cost and local currency cost was not prepared. b The actual foreign exchange cost includes interest and commitment charges.
2. Financing plan ($ million)
Cost Appraisal Estimate Actual Implementation costs Borrower financed 16.44 12.03 ADB financed 43.84 30.85 Total implementation cost 60.28 42.88 Financing charges during implementation Borrower financed 2.33 1.41 Total project costs during implementation 62.61 44.29 ADB = Asian Development Bank.
3. Additional table on financing plan
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Source Appraisal Estimate Actual Amount Share Amount Share ($ Million) (%) ($ Million) (%) Asian Development Bank 43.84 70.0 30.85 69.7 Governments of Tamil Nadu and Uttarakhand 18.77 30.0 13.44 29.3 Total 62.61 100.0 44.29 100.0 Source: Asian Development Bank.
4. Cost breakdown by project component ($ million) Component Appraisal Estimate Actual A. Investment Cost
1. Civil works
a. Urban infrastructure and service improvement 12.65 10.90
b. Connectivity improvement 1.40 0.12
c. Quality enhancement of natural and cultural attractions 10.50 2.47
d. Community-based activities 0.43 0.00 2. Goods and equipment 1.56 13.86 3. Surveys, training, and workshops 2.95 0.44 4. Consultants 11.20 5.24 5. Taxes and duties 5.88 5.59 Subtotal (A) 46.57 38.62
B. Recurrent Costs 1. Incremental administration cost 6.00 3.51 2. Taxes and duties 0.82 0.75 Subtotal (B) 6.82 4.26
C. Contingencies 1. Physical 2.57 0.00 2. Price 4.32 0.00 Subtotal (C) 6.89 0.00 D. Financing Charges during Implementation 2.33 1.41
Total 62.61 44.29 Source: Asian Development Bank.
5. Project schedule Item Appraisal Estimate Actual Tamil Nadu Uttarakhand Tamil Nadu Uttarakhand Date of contract with consultants – Project management consultantsa Mar 2012 Apr 2012 Oct 2013 Apr 2013 – Design and supervision consultantsb Mar 2012 Apr 2012 Oct 2013 Mar 2013 Completion of engineering designs Dec 2012 Dec 2012 Dec 2014 Oct 2014 Civil works contract – Date of award Mar 2012 Mar 2012 Sep 2014 Feb 2014 – Completion of work Jun 2017 Jun 2017 Sep 2018 Jun 2018 Equipment and supplies – Date of first procurement Mar 2012 Mar 2012 Aug 2014 Jun 2014 – Date of last procurement Dec 2013 Dec 2013 Jun 2015 Jun 2018 – Date of completion of equipment installation Jun 2015 Jun 2015 Mar 2016 Jun 2018 a Two project management consultants were engaged. b Four design and supervision consultants were engaged.
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Source: Asian Development Bank.
6. Project performance report ratings
Implementation Period Ratings Single Project Rating From 1 January 2013 to 30 June 2013 On track From 1 July 2013 to 30 September 2013 Potential problem From 1 October 2013 to 31 December 2013 On track From 1 January 2014 to 31 December 2014 On track From 1 January 2014 to 31 December 2014 On track From 1 January 2015 to 31 December 2015 On track From 1 January 2016 to 31 December 2016 On track From 1 January 2017 to 31 December 2017 On track From 1 January 2018 to 31 March 2018 On track From 1 April 2018 to 30 June 2018 Potential problem From 1 July 2018 to 31 December 2018 On track From 1 January 2019 to 31 March 2019 On track
D. Data on Asian Development Bank Missions
No. of No. of Person- Specialization Name of Mission Date Persons Days of Members Fact-finding (Tamil Nadu) 10 to 12 Aug 2011 5 20 c, g, m, p Fact-finding (Uttarakhand) 17 to 24 Aug 2011 5 64 c, g, m, p Inception (Tamil Nadu) 20 to 22 Jun 2012 3 9 c, n, o Special project administration (Tamil Nadu) 7 to 8 Jan 2013 3 6 c, g, h Inception (Uttarakhand) 19 to 22 Mar 2013 3 12 c, d Loan review (Tamil Nadu) 21 to 23 May 2014 2 6 c, i Loan review (Uttarakhand) 26 to 28 May 2014 2 6 c, d Special project administration (Tamil Nadu) 6 to 8 May 2015 2 6 i, j Project review (Uttarakhand) 21 to 30 Sep 2015 4 28 c, d Loan review (Tamil Nadu) 12 to 15 Jul 2016 6 24 c, d, f, k, m e, f Special project administration (Uttarakhand) 28 Nov to 2 Dec 2016 2 10 c, d Special project administration (Tamil Nadu) 20 Apr 2017 2 2 c, m Special project administration (Uttarakhand) 23 to 26 May 2017 2 8 c, d Consultation (Uttarakhand) 24 Aug 2017 9 9 a, b, c Special project administration (Tamil Nadu) 6 to 7 Sep 2017 3 4 c, f, m Special project administration (Uttarakhand) 7 to 8 Dec 2017 2 4 c, d Special project administration (Uttarakhand) 28 to 29 Mar 2018 2 4 c, d Project administration (Uttarakhand) 27 to 28 Aug 2018 2 4 c, d a = country director, b = principal portfolio management specialist, c = project officer (mission leader), d = project analyst, e = gender specialist, f = safeguard specialist (environment), g = mission member, h = technical assistance consultant, i = associate project officer, j = associate project analyst, k = safeguard officer, m = urban development specialist, n = procurement specialist, o = senior project officer, p = counsel.
I. PROJECT DESCRIPTION
1. India is a popular tourist destination—foreign tourist arrivals increased from 2.38 million in 2002 to about 5.37 million in 2008, and total domestic tourist visits increased from 269.6 million to 562.9 million during the same period. Investment in the tourism sector generates significant direct and indirect employment. The sector contributed to 5.9% of India’s gross domestic product in 2007, compared to the global average of 10.4%.1 Inadequate municipal services, inadequate tourist support infrastructure and services, and poor destination connectivity infrastructure had hindered commensurate growth in the sector. The Infrastructure Development Investment Program for Tourism was designed to promote sustainable and inclusive economic growth through tourism infrastructure development in the participating states of Himachal Pradesh, Punjab, Tamil Nadu, and Uttarakhand. It focused on preservation and development of natural and cultural heritage; and incidental services linked to subprojects, including municipal services, tourist support infrastructure and services, and tourist destination connectivity infrastructure.
2. The Asian Development Bank (ADB) approved the Infrastructure Development Investment Program for Tourism as a multitranche financing facility (MFF) on 28 September 2010 at an estimated cost of $357.14 million, with a loan component of $250.00 million, and a contribution from participating state governments of $107.14 million (footnote 1). The first loan of $43.42 million (Loan 2676-IND, tranche 1) under the MFF was approved on 4 October 2010, covering the states of Himachal Pradesh and Punjab. The second loan of $43.84 million (Loan 2833-IND, tranche 2) was approved on 15 December 2011, signed on 2 April 2012, and declared effective on 19 June 2012, covering the states of Tamil Nadu and Uttarakhand. The original loan closing date of 31 December 2017 was extended by 6 months and tranche 2 was physically completed on 30 June 2018. The third loan of $123.51 million (Loan 3223-IND, tranche 3) was approved on 11 December 2014, covering the states of Himachal Pradesh, Punjab, and Uttarakhand. The fourth and the last loan of $31 million (Loan 3717-IND, tranche 4) was approved on 28 September 2018 for Tamil Nadu. The loan closing date of tranches 3 and 4 coincided with the MFF closing date of 27 September 2020.
3. Tranche 2 (the project) was expected to increase the volume of domestic and international tourists to destinations within the states of Tamil Nadu and Uttarakhand (impact) by enhancing the tourism environment in both states (outcome). The project comprised the following outputs:2 (i) improved basic urban infrastructure and services at tourist destinations and attractions; (ii) improved connectivity; (iii) enhanced quality of natural and cultural attractions; (iv) greater participation by local communities in tourism-related economic activities; and (v) strengthened capacity of concerned sector agencies and local communities for planning, development, management, and marketing of tourist destinations.
II. DESIGN AND IMPLEMENTATION
4. The project was designed with an estimated implementation time of about 6 years. It was targeted toward improvement of urban infrastructure and services at tourist destinations,
1 Asian Development Bank (ADB). 2010. Report and Recommendation of the President to the Board of Directors: Proposed Multitranche Financing Facility to India for the Infrastructure Development Investment Program for Tourism. Manila. 2 ADB. 2011. Periodic Financing Request Report: Infrastructure Development Investment Program for Tourism: Tranche 2. Manila. Outputs were aligned with the outputs of the MFF program.
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conservation of heritage buildings and monuments, and the promotion of livelihood generation through tourism-centric job opportunities. Subprojects were selected and implemented as per the agreed subproject selection criteria. The targeted outputs were mostly achieved within the estimated implementation time (paras. 8–13; and Appendix 1). Implementation arrangements, per the project design, were adhered to without any changes.
A. Project Design and Formulation
5. The MFF, including tranche 2, was aligned with ADB’s country partnership strategy for India, 2009 – 2012 and consistent with the government’s Eleventh Five Year Plan, 2007 – 2012, which amplified the need for accelerated investments in tourism.3 The converged objectives included generating direct and indirect employment, mitigating rural unemployment and poverty, bridging rural–urban disparities, upgrading urban infrastructure in the heritage cities and towns with tourism potential, assisting state governments with the development of and vision for tourism, encouraging private sector participation, providing regulatory support for sustainable tourism, target planning for increasing visitor volumes, increasing average length of stay, and equitably sharing tourism benefits with local communities. For facilitating initiatives, a tourism sector road map for India was prepared with ADB’s technical assistance (TA) support in the context of the government’s Eleventh Five Year Plan.4
6. At appraisal, the project design was appropriate to achieve the expected outcomes. The MFF modality addressed the medium- and long-term requirements of Tamil Nadu and Uttarakhand and paved the way a long-term partnership for tourism-centric development between ADB and the state governments. Given that the two executing agencies were new to ADB’s processes and procedures, the MFF modality further helped subproject programming based on priorities and preparedness. The modality also augmented knowledge and gradually built capacities of the executing agencies.
7. Project preparation was carried out using the resources from a capacity development TA project (footnote 4; and para. 18). The executing agencies organized consultations with diverse stakeholders in their respective states, including consultation with communities among the various destinations. Certain adjustments had to be made during detailed design and implementation. The adjustments, which were within the purview of the overall project scope, were based on the outcome of extensive stakeholder consultations and designed to strengthen ownership of the project among beneficiaries and policy makers.5 The project incorporated a minor change in scope to accommodate the reallocation of funds across loan categories.
B. Project Outputs
8. The output targets achieved under the project are summarized in paras. 9-13. Details of the achievements against the targets are in Appendix 1.6
3 ADB. 2019. Country Partnership Strategy: India, 2009–2012. Manila; and Government of India, Planning Commission. 2002. Eleventh Five Year Plan, 2007–2012. New Delhi. 4 ADB. 2010. Technical Assistance to India for Capacity Development for Project Management of Infrastructure Development for Rural Livelihood Enhancement. Manila (TA 7749-IND, approved on 29 November 2010). 5 Two subprojects were dropped in Uttarakhand. Construction of a 2-kilometer (km) elevated walkway at Assan Barrage was dropped because of nonavailability of clearance from the forest department, and construction of water sports facilities at the old Ganga canal was dropped because of jurisdictional issues between two states. 6 Output performance targets are the same as the targets indicated in the design and monitoring framework mentioned in the periodic financing request report for tranche 2 (footnote 2).
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9. Output 1: Improved basic urban infrastructure and services at tourist destinations and attractions. The output aimed to support the state of Tamil Nadu by (i) improving basic tourist facilities and amenities, including safe drinking water and adequate male and female toilets at about 9 tourist clusters; and (ii) enabling 1,000 tourists per month on average to utilize the facilities at each of the new information centers. In the state of Uttarakhand the output envisaged (i) the provision of basic amenities, including safe drinking water and adequate male and female toilets at selected tourist destinations; (ii) the refurbishment and/or construction of nine adventure centers/sports facilities and the provision of basic sports equipment; and (iii) the construction of state-of-the-art ecotourism resort facilities at the North Corbett entry point at Kotdwar. Outputs as envisaged were fully achieved in both states. In Tamil Nadu, against the target of improving basic tourist facilities and amenities at 9 tourist center clusters, 14 tourist center clusters with 115-person-capacity sanitary complexes were constructed, and drinking water facilities with rest shelters were provided at 3 tourist locations. An underground sewer network of about 12.9 kilometers (km) was constructed in Udhagamandalam.7 A total of 2,245 energy-efficient illumination units were installed or retrofitted at 9 tourist towns, and 1,465 tourists per month visited the tourist information center at the Tamil Nadu Tourism Development Corporation resort (against a target of 1,000 tourists per month). In Uttarakhand, basic amenities were provided, including safe drinking water and adequate toilets at 7 tourist destinations; these facilities included 34 person-capacity toilets with bathing facilities, of which 17 were for women. One drinking water fountain and 1 water supply and storage facility were constructed, and 10 adventure centers were refurbished or constructed and provided with sports equipment (against the target of 9 adventure centers/sports facilities). State-of-the-art ecotourism resort facilities were constructed at the North Corbett entry point at Kotdwar as envisaged at appraisal.
10. Output 2: Improved connectivity. This output intended to support Tamil Nadu for rehabilitation of existing approach roads, totaling about 2 km, to improve last-mile connectivity to tourist destinations and attractions. In Uttarakhand, construction of a 2 km elevated walkway at Assan Barrage and a 3 km trekking trail in Pithoragarh to Chandak were envisaged. Of the three output indicators, two were achieved and one was dropped. In Tamil Nadu, the envisaged improvements to about 2 km of existing approach road were carried out by line agencies using state funds; 283 tourist information and directional signs were installed at 12 tourist towns. In Uttarakhand, the subproject related to construction of a 2 km elevated walkway at Assan Barrage was dropped because of nonavailability of clearance from the forest department.8 A total of 2,028 tourist information and directional signs were installed across 13 tourist districts in addition to the targets for this component; 4 km of trekking trail connecting Pithoragarh to Chandak was developed against a target of 3 km.
11. Output 3: Enhanced quality of natural and cultural attractions. The output focused on supporting Tamil Nadu through the rehabilitation of the Dansborg museum at Tranquebar. For Uttarakhand, the following three output indicators were envisaged: (i) construction of water sports facilities at the old Ganga canal; (ii) stabilization and conservation of the Pithoragarh fort wall; and (iii) amelioration of water quality of Naukuchiyatal lake. Of the four output indicators, three were fully achieved and one was dropped. In Tamil Nadu, the Dansborg fort and museum at Tranquebar were conserved as per governments’ statutory standards. In addition, visitor
7 A total of 931 house service connections were also provided along with extension of the sewer network. 8 ADB (South Asia Department). 2015. Project Review Mission: Loan 2833-IND: Infrastructure Investment Program for Tourism, Tranche 2. Aide-mémoire. 5 October (internal).
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amenities and landscaping of about 2,454 square meters were provided. The following were also successfully completed per the targets: (i) improvements to the Muttukadu boat area, the Mudhaliyarkuppam boat area, and the Tamil Nadu Tourism Development Corporation beach resort complex at Mamallapuram; and (ii) supply and installation of (a) energy-efficient floodlights at Arulmigu Uchipillaiyar Kovil (Rock Fort) Trichy, and (b) of 134 pieces of street furniture at various locations across 10 tourist cities/towns.9 In Uttarakhand, water sports facilities at the old Ganga canal were dropped because of jurisdictional issues between two states. Stabilization and conservation of the Pithoragarh fort wall to the standards prescribed by the Archaeological Survey of India were completed along with conservation of buildings and structures inside the fort (including landscaping). Seven subprojects implemented that contributed toward the enhanced quality of natural and cultural attractions were as follows: (i) development of tourism infrastructure facilities at Assan Barrage; (ii) infrastructure development at Tiger Falls and Lakhamandal temple; (iii) infrastructure development at Hanol, Mahasu, and Tree Samadhi; (iv) renovation of the Deoban forest rest house; (v) development of an ecotourism resort at the north entry of Corbett; (vi) development of a view point at Mostmanu temple, Pithoragarh; and (vii) restoration and upgrading of tourist facilities at the Parichay tourist rest house. The water quality of Naukuchiyatal lake was ameliorated with the installation of two submersible aeration plants.10
12. Output 4: Greater participation by local communities in tourism-related economic activities. The output was measured by the following: (i) operationalization of at least 15 community-based tourism (CBT) societies with equal representation of women in the management of natural and cultural heritage sites; (ii) completion of at least 20 awareness campaigns; (iii) employment for at least 270 persons from female-headed, poor, and vulnerable households in tourism support activities; and (iv) training provided for at least 200 persons, including vulnerable women living in the project area, in microenterprise development, and marketing support provided for finished products like handicrafts. Of the four output indicators, three exceeded the target and one was fully achieved. A total of 46 CBT committees (14 in Tamil Nadu and 32 in Uttarakhand) are operational in the management of natural and cultural heritage sites, with a total of 445 members (245 with 83% female representation in Tamil Nadu, and 200 with 91% female representation in Uttarakhand).11 A total of 93 consultation workshops and awareness campaigns (14 in Tamil Nadu and 79 in Uttarakhand) were organized. A total of 954 jobs, including 177 jobs among women-headed, poor, and vulnerable households, were generated in tourism support activities in Tamil Nadu and Uttarakhand.12 Training modules on livelihood skills in rural entrepreneurial trades and marketing were organized at 14 locations with total 280 participants, including 20 female participants in Tamil Nadu and 48 in Uttarakhand.13
13. Output 5: Strengthened capacity of concerned sector agencies and local communities for planning, development, management, and marketing of tourist destinations. The output focused on establishment and capacity building of the state executing
9 Improvements were made to a conference hall and discussion rooms, tourist interpretation area, lighting, health club, and drinking water and sanitation facilities. 10 The improvement in water quality was authenticated by the dissolved oxygen levels at the surface, which improved from 4.47 milligrams per liter in 2015 to 24.72 milligrams per liter in 2018, and dissolved oxygen levels at the bottom, which improved from 3.07 milligrams per liter in 2015 to 24.22 milligrams per liter in 2018. 11 CBT committees have the same function as envisaged for community-based societies. During implementation, both states used the term committees instead of societies. 12 Of the 954 jobs generated, 588 (62%) were filled by women, 121 (13%) by members of women-headed households, and 583 (61%) by members of poor and vulnerable households. 13 The trades included handicrafts, woodwork, and embroidery in Tamil Nadu; and fabric (T-shirt) painting, wall hanging, and enterprise development in Uttarakhand.
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agencies and the implementing agencies, which had no prior experience in implementing externally funded projects. Project management and implementation support was also to be provided, including preparation of subprojects for financing under subsequent tranches of the MFF. The following were envisaged under the output: development of tourism management and master plans; development and implementation of organizational and financial management structures within state tourism organizations and associated entities; design and implementation of tourism-based, gender-responsive livelihood generation programs; and development and dissemination of promotional materials, guidebooks, and brochures on tourist destinations. Of the eight output indicators, seven were fully achieved and one was partly achieved. A total of 294 staff (128 women and 166 men) from the two states’ tourism offices and line agencies were trained on the environment, culture, tourism planning, and marketing against a target of training for 200 staff (100 women and 100 men). Tamil Nadu organized staff training sessions for 150 participants, including 45 women. A staff training session was organized for 144 participants in Uttarakhand, including 83 women. Five training workshops on tourism support activities were held in both states. Against the target of 100 community members receiving training, 177 community members (124 men and 53 women) were trained in tourism support activities in both states. The participation of private entities was ensured by providing lease contracts for operation and maintenance (O&M) of the tourist destinations, adventure centers, and rest houses. In Tamil Nadu, statewide tourism policies and an ecotourism policy were prepared by the government.14 The state has also prepared a master plan and detailed strategy for integrated tourism promotion in a phased manner. The Government of Uttarakhand prepared a tourism master plan, 2005–2022 with the United Nations World Tourism Organization. Organizational and financial management measures were prepared and adopted in both states, including project finance account manual quality assurance and quality control manuals, to ensure better implementation quality. Interventions related to tourism-based gender-responsive livelihood generation were designed and implemented in Tamil Nadu and converged with four ongoing government-sponsored interventions, benefiting 852 persons, of which 425 were women. In Uttarakhand the same convergence approach was adopted for two ongoing government-sponsored schemes, benefiting 293 persons, of which 89 were women. Gender-sensitive promotional materials, guidebooks, and brochures on tourist destinations were developed and disseminated.15 The project management as envisaged was done successfully, on time, and within the budget.
C. Project Costs and Financing
14. The estimated cost of the project at appraisal was $62.61 million, with an ADB loan component of $43.84 million (70% of the total project cost). Contributions from the state governments were estimated at $18.77 million (30% of the total project cost).16 At completion, the project cost was calculated as $44.29 million, with an ADB loan amount of $30.85 million (69.7% of the total cost) and a state governments’ contribution of
14 Government of Tamil Nadu; Tourism, Culture and Religious Endowments Department. 2019. Tourism Policy Note, 2019–2020. Chennai; Government of Tamil Nadu, Tamil Nadu Forest Department. 2017. Tamil Nadu Ecotourism Policy 2017. Chennai. 15 In Tamil Nadu, 6,550 gender equality brochures, 4,700 gender guidebooks, and 5,000 food product preparation and operation manuals were prepared and distributed. Skits on gender mainstreaming were performed at 14 tourist spots. In Uttarakhand, 2,000 gender awareness brochures, including guidebooks, were prepared and distributed, and 3 mountain biking events were organized to promote tourism. 16 At appraisal, Tamil Nadu’s contribution was estimated at $8.79 million, and Uttarakhand’s contribution was estimated at $9.97 million.
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$13.44 million (30.3% of the total cost).17 The project cost decreased in comparison with the appraisal estimates because of appreciation of the United States dollar against the Indian rupee, overestimation of contingencies, and the dropping of subprojects from the project scope.18 At completion, the cost had decreased by (i) $11.5 million for civil works because of the dropping of subprojects (paras. 10–11) and the recategorization of some works packages to goods and equipment packages; (ii) $2.51 million for training, workshops, and surveys, as allocations for these activities were overestimated considering their nature; (iii) $5.96 million for consulting services, as the state government of Tamil Nadu mobilized its own resources from specialized line agencies; and (iv) $2.49 million for incremental administration cost. Financing charges decreased by $0.92 million because of lower interest rates. The cost of goods and equipment increased by $12.3 million because of the recategorization of some works packages to goods and equipment packages.19 There were three partial loan cancellations amounting to $12.99 million.20 The ratio of the ADB loan to the state governments’ contribution changed from 70:30 at appraisal to 69.7:30.3 at completion. Appendix 2 provides details of the appraised and actual project costs. The project investments did not involve land acquisition, resettlement, or any social and environmental issues (paras. 22–23).
D. Disbursements
15. A total of $30.85 million (70.4% of the original loan amount of $43.84 million) was disbursed by the project’s completion. Disbursement projections were generally realistic into account variance in the actual disbursements given the delays in claim submissions and minor scope changes (para.7). Loan disbursements were on track from the first disbursement on 10 December 2012, spread out (0.2% to 27.5% per year) from the end of 2012 to the end of 2018, and reaching 76.34% of the revised loan amount by 31 December 2017 (the original loan closure date).21 Contract award and disbursement achievements fell below 90% of projections from July 2013 to September 2013, resulting in a potential problem project rating for the period.22 The project rating was brought on track from October 2013 to March 2018 with the implementation of a corrective time-bound action plan. Timely contract award and disbursements were ensured subsequently, supported with realistic financial projections assessed and applied during project implementation. Delayed submission of expenditure claims during physical closure of the loan resulted in a potential problem rating during April–June 2018. This was rectified from July-December 2018 by ensuring timely submission of claims till financial closure of the loan. Appendix 3 provides the annual and cumulative contract awards and disbursements of loan proceeds. The statement of expenditure procedure allowed up to $100,000 equivalent per individual payment.
17 At completion, Tamil Nadu’s contribution was $5.31 million and Uttarakhand’s contribution was $8.12million. Financing charges during implementation calculated for the entire loan until project close totaled $1.41 million. 18 The United States dollar appreciated by 43% against the Indian rupee from appraisal to financial closure. Physical and price contingencies were estimated at 11% of the total project cost at appraisal. Two subprojects were dropped in Uttarakhand and one subproject was taken up by Tamil Nadu using state funds. 19 Contract packages for signage (in both states) were recategorized as a goods package because a majority of the scope was related to the fabrication and supply of signage. 20 Partial cancellations were as follows: $1.3 million on 12 December 2014, $7.0 million on 6 September 2016, and $4.69 million on 6 December 2018. 21 The implementation period ended on 30 June 2018 and financial closure happened on 6 December 2018. 22 In ADB’s project performance rating, potential problem rating serves as a warning that a project may slide down to an actual problem project that has performance ratings of unsatisfactory in development objectives or implementation progress (project administration instructions 6.05/June 2018).
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E. Project Schedule
16. The original loan closing date of 31 December 2017 was extended by 6 months to maximize loan utilization and ensure completion of the subprojects, especially for Uttarakhand. The loan extension was required for the following: (i) time needed for the executing agencies to become conversant with ADB’s processes and procedures; (ii) repeated bidding for contract packages because of poor responses to bids in Uttarakhand; (iii) flash floods in Uttarakhand, which adversely affected procurement of contract packages in 2013 because of reduced bid participation; and (iv) geographic spread of the subprojects across the states. Works in Tamil Nadu were completed before the original loan closing date of 31 December 2017, although in Uttarakhand works took an additional 6 months. Delays at the initial phase of implementation were significantly made up for by the executing agencies by fast-tracking project implementation and ensuring substantial completion of the subprojects by the original loan closing date. Close monitoring and guidance by ADB to address issues through time-bound actions also helped the executing agencies to make up for the delays. By loan closure, all 40 contract packages (15 civil works and 4 goods packages in Tamil Nadu, and 14 civil works and 7 goods packages in Uttarakhand) had been physically completed (Appendix 4).
F. Implementation Arrangements
17. The project’s implementation arrangements proved appropriate to achieve the envisaged outputs. State-level empowered committees were established in both states, which served as an effective oversight mechanism. The implementation arrangements comprised the Department of Tourism and Culture in Tamil Nadu and the Department of Tourism in Uttarakhand as the executing agencies.23 The implementing agencies were the Department of Tourism for Tamil Nadu and the Uttarakhand Tourism Development Board for Uttarakhand. A project management unit (PMU) was set up within the respective implementing agency for each state; the PMUs were supported by project implementation units (PIUs). The PMU in Tamil Nadu was headed by the program director and four PIUs formed within state line departments.24 In the Uttarakhand, the PMU was also headed by the program director and was supported by three PIUs in Bhimtal, Dehradun and Kotdwar. The PMUs and the PIUs were supported by two project management consultant (PMCs) and four design supervision consultants (DSCs) to provide effective project management and implementation support, including preparation of subprojects for financing under subsequent tranches of the MFF.25 One consultant for tourist statistics per state were recruited by the respective states to assess the outcomes and impacts of product development initiatives under the project.26 For design and implementation of tourism-based, gender-responsive livelihood generation programs, as well as for development and dissemination of promotional materials, one nongovernment organization (NGO) was engaged in Uttarakhand. For similar activity in Tamil Nadu, the PMU was supported by the Enterprise Development and Innovation Institute.27
23 The Department of Tourism and Culture of the Government of Tamil Nadu was renamed the Tourism, Culture and Religious Endowments Department. 24 The Commissioner of the Department of Tourism was appointed as the program director. The line departments were the (i) Commissionerate of Municipal Administration, (ii) Tamil Nadu Tourism Development Corporation Limited, (iii) Directorate of Town Panchayat, and (iv) Archaeology Department. 25 One PMC and one DSC were recruited in Tamil Nadu. For Uttarakhand, one PMC and three DSCs were recruited. 26 Resources of the Government of Tamil Nadu were used to engage the tourist statistics consultant. 27 The Entrepreneurship Development and Innovation Institute, Government of Tamil Nadu promotes self- employment by providing entrepreneurship education.
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G. Technical Assistance
18. The MFF was accompanied by a project preparatory TA grant worth $1.0 million which supported the state governments of Himachal Pradesh, Punjab, Tamil Nadu, and Uttarakhand and the executing agencies to design and prepare the MFF.28 To further support the participating states and the executing agencies, ADB approved a $1.0 million capacity development TA grant in 2010.29 The capacity development TA provided early support to improve overall project management and procurement capacity of the executing agencies and implementing agencies of the participating states.30
H. Consultant Recruitment and Procurement
19. Consultants were recruited in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). The executing agencies followed the quality- and cost-based selection procedure to select the two PMCs, four DSCs, one tourist statistics consultant, and one NGO (in Uttarakhand). Being new to ADB procedures, both the executing agencies successfully recruited the PMCs and DSCs in 2013.31 The overall performance of the PMCs, DSCs, tourist statistics consultants, and NGO is rated generally satisfactory, with outputs delivered as per the contract terms.
20. Procurement of works and goods was in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). The mobilization of resources by the contractors was adequate, and overall performance of the contractors and suppliers is rated satisfactory. Standard bid documents prepared under the project for the procurement of works and goods were used in subsequent tranches for both states, leading to standardization and quality control. Preparation of bidding documents, evaluation of bids, and award of contracts were executed smoothly, which demonstrated a building up of procurement capacity for executing agencies new to ADB’s Procurement Guidelines. Contract award and disbursement achievements generally adhered to the annual targets set throughout the loan period (para. 15).
I. Gender Equity
21. The project was categorized effective gender mainstreaming and included gender action plans (GAPs) for both the states with 2 activities and 16 quantitative targets. Specific gender issues, assessed in the preparatory phase, informed the project design, and were addressed through the actions listed in the GAPs. The gender strategy followed a multipronged approach and included (i) vocational skills enhancement opportunities for women to keep pace with rapid market transformations affecting jobs and income-generation opportunities, (ii) convergence with ongoing government-sponsored programs on income generation to benefit women, (iii) equitable representation in decision-making, and (v) gender-responsive institutional capacity building. The project defined the GAP implementation modalities, partnerships, human resource requirements, and monitoring mechanisms. The activities as indicated in the GAP were
28 ADB. 2007. Technical Assistance to India for Inclusive Tourism Infrastructure Development Project. Manila (TA 7014-IND, approved on 12 December 2007). 29 ADB. 2010. Technical Assistance to India for Capacity Development for Project Management of Infrastructure Development for Rural Livelihood Enhancement. Manila (TA 7749-IND, approved on 29 November 2010). 30 ADB. 2013. Technical Assistance Completion Report: Capacity Development for Project Management of Infrastructure Development for Rural Livelihood Enhancement in India. Manila. 31 The PMC contract for Tamil Nadu was awarded in October 2013 and that for Uttarakhand in April 2013. The DSC contracts for Tamil Nadu were awarded in October 2013 and those for Uttarakhand in March 2013.
9 efficiently implemented, and 16 quantitative targets achieved (Appendix 5). The executing agencies in both states adopted appropriate implementation and monitoring arrangements, which supported the close monitoring of systematic reporting during implementation (para. 17). ADB also provided necessary technical support to the executing agencies throughout the project period.
J. Safeguards
22. The project was classified category B for environment, category C for involuntary resettlement, and category C for indigenous peoples in conformance with ADB’s Safeguard Policy Statement (SPS) (2009). An environmental assessment and review framework was prepared to guide selection and evaluation of subprojects. A total of 27 initial environmental examination reports (14 for Tamil Nadu and 13 for Uttarakhand) covering 38 subprojects were prepared and disclosed on ADB’s website during implementation, including environmental management and monitoring plans. A total of 14 semiannual environmental monitoring reports (6 for Tamil Nadu and 8 for Uttarakhand) capturing implementation of environmental safeguards were submitted by respective executing agencies and disclosed on ADB’s website. All subprojects in both states complied with the provisions in the environmental management and monitoring plans. The grievance redress mechanisms were established by the executing agencies and no complaints related to environmental safeguards were received. The loan covenants pertaining to environmental safeguards were complied with and the environmental performance of the project improved with increased monitoring and coordination by ADB with the project staff. Both the executing agencies confirmed that there were no outstanding issues related to safeguards at completion. Overall, the implementation of environmental safeguards for the project in both states is assessed to be in compliance with the SPS.
23. For involuntary resettlement, the category was upgraded to B in April 2014 to indicate resettlement (livelihood) impacts in one subproject in Uttarakhand. Detailed consultations were held with gram panchayat and local communities during detailed design to avoid the resettlement (livelihood) impacts.32 Impacts were avoided by modifying the design and rescheduling the subproject-related activities to occur during non-peak season. To confirm that the impacts were avoided without coercion, a due diligence report was prepared and disclosed on the ADB website in November 2015. In addition, due diligence reports for 11 subprojects in Uttarakhand and 19 subprojects in Tamil Nadu were prepared during project implementation and confirmed no social safeguards impacts. The category for indigenous peoples remained category C during implementation until the closure of the project. Overall, the implementation of social safeguards for the project in both states is assessed to be in compliance with the SPS. No issues related to environmental and social impacts were reported to ADB, and none were noted in back-to-office reports and aide-mémoires. Overall, safeguard compliance management is rated effective. A detailed note on the implementation of safeguards is in Appendix 6.
K. Monitoring and Reporting
24. Of the project’s 40 loan covenants, 38 were fully complied with and 2 were partly complied with. Mobility plans for major tourist destinations in Uttarakhand as well as service- level benchmarks on the delivery of basic urban infrastructure and services at each tourist destination or gateway in both states were not prepared. The covenant related to submission of
32 A gram panchayat is a local self-government unit at the village level in India.
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audited project financial statements was partly complied with. Monitoring and reporting arrangements, including quarterly progress reports, semiannual safeguard reports, and a project completion report, were complied with. GAP reporting was undertaken by the tourism departments of the participating states. Independent chartered accountants audited the project financial accounts and statements, and the audited project financial reports were submitted to ADB by both executing agencies. However, audit shortcomings were observed (paras. 33–34).33 Partial compliance with the covenants related to service-level benchmarking and submission of audited project financial statements did not have any direct impact on the project’s overall performance.34 The status of compliance with the loan covenants is in Appendix 7.
III. EVALUATION OF PERFORMANCE
A. Relevance
25. The project is rated relevant to the borrower’s development objectives and ADB’s country and sector strategies at appraisal and completion (para. 5). Although the project predated ADB’s country partnership strategy for India, 2018 – 2022, it remained relevant to ADB’s policy focus in India on inclusive economic growth, infrastructure, and gender mainstreaming.35 It remained aligned with the government’s successive five-year plan 2012 - 2017; the NITI Aayog three-year action agenda, 2017 – 2018 to 2019 – 2020; and the tourism policies of the states of Tamil Nadu and Uttarakhand.36 The project is consistent with ADB’s Strategy 2030, which indicates addressing poverty, reducing inequality, and promoting gender equality.37 The project design, implementation arrangements, and gender mainstreaming (paras. 5, 17, and 21) added to the project’s relevance. The project incorporated (i) a minor change in scope to accommodate reallocation of funds across loan categories, and (ii) one loan extension of 6 months to effectively utilize the loan amount (para. 16) and ensure full achievement of project outcomes, and to maintain the relevance of the project. The MFF was the most suitable modality and the design and monitoring framework (DMF), notwithstanding a few issues, was logical, appropriate, and relevant, reflecting the state governments’ priorities for creating and/or rejuvenating tourism infrastructure, capacity building, and human resources development for sustainable tourism and destination management through employment generation, poverty alleviation, environmental regeneration, and the advancement of women and disadvantaged groups.38 The results chain continued to form the basis for identifying and assessing subprojects for subsequent tranches, resulting in realistic numbers of interventions at appropriate locations. The project was a stand-alone initiative supported by ADB in the tourism sector in both states, without any duplication of interventions with other development partners – World Bank and Japan International Cooperation Agency.
33 Shortcomings included non-issuance of a management letter and nonsegregation of fund sources for Uttarakhand. For both states, notes to the financial statements were lacking for significant accounting policies, and reconciliation with ADB’s loan financial information system was not done. 34 Measures for improvements were discussed with the states and updates on their compliance will be reported in completion reports for the subsequent tranches of the MFF. 35 ADB. 2018. Country Partnership Strategy: India, 2018 – 2022—Accelerating Inclusive Economic Transformation. Manila. 36 Government of India, NITI Aayog. 2017. India Three Year Action Agenda, 2017 – 18 to 2019 – 20. New Delhi. 37 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 38 A few subprojects were dropped, which could have been averted if statutory requirements had been checked thoroughly at project appraisal. The incorporation of downstream public–private partnership (PPP) packages (after physical completion) was overambitious (paras. 26 and 36).
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B. Effectiveness
26. The project is rated effective. At completion, the project achieved the outcome performance indicators for the following: (i) a 32% increase in occupancy of refurbished accommodation facilities (in Uttarakhand) against a target of 30%; (ii) an average of 1,050 tourist arrivals per month at the new adventure centers and ecotourism center in Uttarakhand against a target of 1,000; and (iii) provision of skilled employment to 1,131 persons, including 641 women, against a target of 270 (Appendix 1). Of the 24 output indicators outlined in the DMF, 9 exceeded the targets, 12 were achieved, 1 was partly achieved, and 2 were not achieved (Appendix 1). The project experienced a minor implementation delay of 6 months (para. 16) and differences in achievements of output indicators. The project exceeded the targets against the following output indicators: (i) improvement of basic tourist facilities in tourist clusters in Tamil Nadu, (ii) utilization of tourist facilities in Tamil Nadu, (iii) refurbishment and/or construction of adventure centers and/or sports facilities in Uttarakhand, (iv) operationalization of community-based societies in the management of natural and cultural heritage sites with equal women’s representation, and (iv) completion of awareness campaigns by trained community animators. Private sector investment was limited to O&M of the rest houses and adventure centers through lease contracts. This was attributed to high pilgrim volumes among domestic tourists in Tamil Nadu, where affordability was a significant factor, and the low financial investment capacity for tourism-centric public–private partnership (PPP) projects in Uttarakhand. Subprojects related to construction of a 2 km elevated walkway at Assan Barrage in Uttarakhand was dropped because of nonavailability of clearance from the forest department. Water sports facilities at the old Ganga canal in Uttarakhand were dropped because of interstate jurisdictional issues.39
27. The project is considered effective, as (i) two of the three outcome indicators were fully achieved and the other exceeded the target (Appendix 1); (ii ) 21 of 24 output indicators were achieved with some exceeding targets; (iii) safeguards compliance was assessed successful (paras. 22–23); and (iv) GAP implementation was assessed highly successful. All GAP activities were completed and targets were fully achieved (para. 21). One outcome indicator and four output indicators related to GAP activities surpassed the targets. GAP activities also provided employment opportunities to women and enabled institutional gender capacities..
C. Efficiency
28. The project investment is rated efficient. The project experienced cost underrun (para. 14) and a 6-month delay in completion mostly because of external factors (para. 16), although these did not affect the project’s efficiency. The project contributed to measurable benefits, such as increased revenues because of an increase in the number of tourist arrivals and tourists’ extended length of stay. The economic internal rate of return (EIRR) was calculated to assess efficiency in achieving project outputs and outcomes. At appraisal, the aggregate EIRR for the subprojects was 18.8% in Tamil Nadu and 18.2% in Uttarakhand. At completion, an economic reevaluation (using the same approach at appraisal) estimated the EIRR for the subprojects as 17.6% in Tamil Nadu and 18.0% in Uttarakhand. The EIRR for the overall project was estimated at 17.9% at completion. The reevaluated EIRR for both states is above the 12% threshold considered for economic viability, and above the EIRR computed at
39 These works are likely to be taken up by the state government of Uttarakhand in the near future after obtaining all necessary clearances and permissions.
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appraisal for Uttarakhand and marginally lower for Tamil Nadu.40 Sensitivity analysis was carried out to investigate the robustness of the project to changes in costs and benefits. For all sensitivity scenarios at completion, the EIRR remained well above 12%, indicating the economic efficiency of the project (Appendix 8). The institutional efficiencies with respect to project management and the addressing of grievances by the executing agencies and implementing agencies improved, which benefited implementation of subsequent tranches under the MFF.
D. Sustainability
29. Overall, the project is rated less than likely sustainable. Tourism development is an ongoing development priority of the Government of India, with strong commitment at the national and state levels (para. 25). At appraisal, as the project was not designed for cost recovery (i.e., subprojects were determined to be nonrevenue-generating or noncommercial), the financial analysis did not calculate the financial internal rate of return. The financial analysis focused on the assessment of the fiscal positions of the states as state government transfers were felt to be required to support the O&M of the subprojects. At completion, the financial analysis assessed the fiscal positions of the two states and found that additional O&M costs need to be absorbed by the budgeted amounts for tourism of the two state governments (Appendix 8, paras. 15–17). The budgetary support can be supplemented by user charges and revenues generated by leasing out of the assets to private players. The operating ratios calculated (operating expense to operating receipts) were found to be 1.11 for Tamil Nadu and 0.99 for Uttarakhand. Considering the risks posed by the higher operating ratios in both states, the project is deemed less than likely sustainable. The project is assessed to be environmentally and socially sustainable. Improved tourism infrastructure has resulted in increased tourist arrivals. Capacity building of the executing agencies and the implementing agencies helped to achieve service quality and timely implementation of the subprojects. Educational and training programs for the state governments and local communities promoted tourism-friendly community support.
E. Development Impact
30. The development impact of the project is rated satisfactory. The project contributed to increased volume of domestic and international tourists, and enhanced contribution of the tourism sector to sustainable and inclusive economic growth in both states. International tourist arrivals increased by 160% for Tamil Nadu (from 2.5 million in 2008 to 6.5 million in 2019) and by 45% for Uttarakhand (from 0.11 million in 2008 to 0.16 million in 2019). Domestic tourist arrivals increased by 351% for Tamil Nadu (from 100 million in 2008 to 451 million in 2019) and by 73% for Uttarakhand (from 22 million in 2008 to 38 million in 2019). The average length of stay of tourists increased by 91% for Tamil Nadu (from 3.58 days in 2008 to 6.82 days in 2019) and by 83% for Uttarakhand (from 9.06 days in 2008 to 6.38 days in 2019). During 2008–2019 for both states, local employment increased by nearly 63% and the tourism sector’s aggregate contribution to the gross state product was nearly 37%.41 Private sector participation increased by 9% from 2006 to 2019, mostly through investments in the hotel, restaurant, and tourism
40 The reduction in EIRR for Tamil Nadu was because of the reduced cost at completion. 41 Government of India, Ministry of Tourism. 2016. Regional Tourism Satellite Account: Uttarakhand, 2009–2010. New Delhi; Government of India, Ministry of Tourism. 2014. Regional Tourism Satellite Account: Tamil Nadu, 2009– 2010. New Delhi; Government of India, Ministry of Tourism. 2019. Regional Tourism Satellite Account: Uttarakhand, 2015–2016. New Delhi; and Government of India, Ministry of Tourism. 2019. Regional Tourism Satellite Account: Tamil Nadu, 2015–2016. New Delhi.
13 trades. The project has contributed to the following operational priorities of the ADB corporate results framework (footnote 37): (i) operational priority 1—addressing remaining poverty and reducing inequalities; (ii) operational priority 2—accelerating progress in gender equality; (iii) operational priority 3—tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (iv) operational priority 4—making cities more livable; and (v) operational priority 6—strengthening governance and institutional capacity (Appendix 9).
31. The development benefits accrued from improved tourism infrastructure also include improved sanitation facilities, better vehicle parking facilities, and access to better livelihood opportunities for locals in the surrounding communities. It is also evident that GAP activities resulted in direct benefits such as opportunities for women’s workforce participation, equitable employment, capacity development, gender-responsive infrastructure design, and institutional gender capacity building.
32. The executing and implementing agencies and the host communities in both states developed significant institutional capacities during project implementation to handle contract management, safeguards, and project formulation. The executing and implementing agencies evolved to efficiently manage subsequent tranches under the MFF. In Tamil Nadu, the PIUs were housed within line agencies, which helped with the smooth handover of the assets. In Uttarakhand, assets were also smoothly handed over to the respective agencies reporting to the executing agency.
F. Performance of the Borrower and the Executing Agencies
33. The performance of the borrower and the executing agencies is rated satisfactory. The borrower, represented by the Government of India’s Department of Economic Affairs, demonstrated a strong sense of ownership through its timely guidance to the executing agencies on the project and its decision-making. It also undertook regular tripartite review meetings with ADB, the state governments, and the executing agencies, which helped resolve issues and monitor progress. The state governments provided strong support to the executing agencies, including the timely provision of counterpart funding, as well as policy direction support to state-level empowered committees throughout the project period. However, frequent transfers of program directors in Uttarakhand delayed the decision-making process and had a negative impact on the working environment in the PMU and PIUs during the initial part of the project implementation. This was resolved by intervention of the state government and the borrower. The PMUs established effective monitoring and implementing mechanisms through the PIUs. For better coordination between the PMU and PIUs in Tamil Nadu, nodal officers were appointed in the line agencies. This also helped with interagency coordination, monitoring, and progress reporting, and it strengthened the flow of information. However, the financial management performance of the executing agencies is rated less than satisfactory, as audit shortcomings were identified and commented on by ADB, but specific steps were not undertaken to resolve these issues (paras. 24 and 34).
G. Performance of the Asian Development Bank
34. ADB’s performance is rated satisfactory. ADB’s commitment to the project was evident in its regular review missions, close monitoring of project progress, and discussions with the
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executing agencies to expedite implementation.42 Monitoring, capacity building, and guidance by ADB throughout the project cycle helped define processes, address issues through time- bound actions and targets, and expedite project implementation. ADB monitoring ensured adherence to due processes and transparency in procurement, disbursements, gender issues, and safeguards, while upholding integrity and ethical standards. However, the financial management performance of ADB is rated less than satisfactory, as audit shortcomings were identified and commented on, but remained unresolved (paras. 24 and 33).
H. Overall Assessment
35. The project was relevant to the Government of India’s overall development objectives and ADB’s policies at appraisal and remained so upon completion. The project realized the outcome of an enhanced tourism environment in Tamil Nadu and Uttarakhand. The rapid tourism-centric development in the states, increased tourist arrivals, and increased local employment opportunities indicate the project’s outcomes and outputs envisaged at appraisal were realized. The recalculated EIRRs were robust. Overall, the project is rated successful based on the assessment of its relevance, effectiveness, efficiency, and sustainability.
Overall Ratings Criteria Rating Relevance Relevant Effectiveness Effective Efficiency Efficient Sustainability Less than likely sustainable Overall Assessment Successful Development impact Satisfactory Borrower and executing agency Satisfactory Performance of ADB Satisfactory ADB = Asian Development Bank Source: ADB.
IV. ISSUES, LESSONS, AND RECOMMENDATIONS
A. Issues and Lessons
36. The following important issues were outlined during project preparation and implementation: (i) While the design was appropriate, the dropping of a few subprojects could have been averted if statutory requirements had been checked thoroughly at project appraisal. The incorporation of downstream PPP packages (after physical completion) was overambitious considering the high pilgrim volumes among domestic tourists in Tamil Nadu, where affordability was a significant factor, and the low financial investment capacity for tourism-centric PPP projects in Uttarakhand (para. 26). (ii) Frequent transfers of program directors in Uttarakhand delayed the decision- making process and had a negative impact on the working environment in the PMU and PIUs.
42 A project completion review mission was not fielded. The coronavirus disease outbreak has severely impacted India since March 2020, leading to the imposition of travel restrictions that have continued until preparation of this project completion report.
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(iii) The optimal contingency allocation could have avoided partial loan cancellation (para. 14). (iv) Emphasis on financial management requirements by the borrower’s auditors, project authorities, and ADB is required for continued compliance with financial covenants (paras. 24 and 33–34). (v) Enhancement of project preparedness before the contract award (e.g., through the preparation of detailed designs, and interagency coordination) helps deliver projects in a timely, responsive, and efficient manner (paras. 16, 17, 26, and 28). (vi) Capacity building of a new executing agency or institution requires sustained effort, for which TA support is very useful. Flexible terms of reference of capacity development TA projects can help meet evolving requirements.
B. Recommendations
37. Project-related recommendations include the following: (i) Selection criteria of subprojects should ensure that the subprojects are compliant with all statutory requirements, including jurisdictional issues. (ii) Continuation of senior staff (e.g., program directors) for a reasonable span of time in the project and adequate capacity development support are critical from an operational and managerial requirement perspective. (iii) The procurement strategy should consider externalities like on-site conditions, as well as market analysis. (iv) The allocation of contingencies should be rationalized considering the type of subprojects under the project.
38. General recommendations include the following: (i) Continued capacity building on ADB’s financial reporting and audit requirements from project inception to implementation should be provided for the finance staff and the auditors of the executing agencies to ensure audit compliance. (ii) The state governments should provide adequate and timely maintenance, together with the required funding, to ensure the project’s sustainability or transfer the assets created to private players through a transparent PPP framework and policies. Further, government-backed events on avenues and business opportunities to participate in the project should be organized to improve private sector response.
39. Future monitoring. Most of the assets created had already been handed over to the respective agencies following the decision taken in state-level empowered committee meetings. The state governments should devise an appropriate mechanism to monitor performance of the assets created under the project.
40. Covenants. The covenants related to (i) the setting of benchmarks on the delivery of basic urban infrastructure and services at tourist destinations in both states, and (ii) the preparation of mobility plans in Uttarakhand should be ensured.
41. Timing of the project performance evaluation report. The project performance evaluation report should be prepared in 2021, by which time the subprojects will have been operational for more than 3 years.
16 Appendix 1
DESIGN AND MONITORING FRAMEWORK Data Sources and Design Summary Performance Indicators and Targets Reporting Mechanismsa Project Achievements Impact By 2020: For all indicators Increased Volume of 1. 40% increase total domestic tourists in the states • State Department 1. Tamil Nadu: 351% (from 100 million in 2008 domestic and international of Tamil Nadu and Uttarakhand (Baseline: tourists to destinations tourism to 451 million in 2019) increase in domestic 100 million for Tamil Nadu and 22 million for tourist visits. within the states of Tamil • Ministry of Statistics Uttarakhand, in 2008); Uttarakhand: 73% (from 22 million in 2008 Nadu and Uttarakhand. and program to 38 million in 2019) increase in domestic Implementation tourist visits. 2. 40% increase in total international tourists in the 2. Tamil Nadu: 160% (from 2.5 million in 2008 two states (Baseline: 2.5 million for Tamil Nadu to 6.5 million in 2019) increase in
and 0.11 million for Uttarakhand, in 2008); and international tourist visits. Uttarakhand: 45% (from 0.11 million in 2008 to 0.16 million in 2019) increase in
international tourist visits. 3. 30% increase in average length of stay of tourists 3. Tamil Nadu: 91% increase (3.58 days in in the two states (Baseline 3.58 days for Tamil 2008 to 6.82 days in 2019) in average Nadu and 3.49 days for Uttarakhand, in 2008). length of stay of tourists in Tamil Nadu. Uttarakhand: 83% (3.49 days in 2008 to 6.38 days in 2019) in average length of stay of tourists. Outcome By 2017 For all indicators Enhanced tourism • State tourism reports 1. Achieved environment in Tamil Nadu 1. 30% increased occupancy in the refurbished and statistics Tamil Nadu: did not had such interventions. and Uttarakhand. accommodation facilities and shelters at the Uttarakhand: 32% increase in occupancy in tourist clusters; • Project performance monitoring reports the refurbished accommodation facilities and shelters at the tourist cluster • Project Completion tourists Basic. reports 2. 1,000 tourist/ month on average achieved at each 2. Achieved of the new adventure/sports centers as well as the eco-center at Kotdwar constructed under the 1,050 visitors per month on average Project; and received at each new adventure/sports centres in Uttarakhand as well as the ecotourism-centre at Kotdwar constructed under the project.
3. At least 270 persons, including from women- 3. Exceeded headed poor and vulnerable households, receive Tamil Nadu: 954, with 588 women (62%) skilled employment (Target: M-190/F-80). community members employed by government agencies affiliated to the DOT
Appendix 1 17
Data Sources and Design Summary Performance Indicators and Targets Reporting Mechanismsa Project Achievements and registered with Tamil Nadu Tourism Development Corporation, private business entities, and temple 121 (or 13%) were from women-headed households, while 583 (or 61%) belonged to poor and vulnerable households. Uttarakhand: 177 persons, including 53 from women-headed, 25% poor and vulnerable households, received skilled employment. Outputs By 2017: For all indicators 1. Improved basic urban Tamil Nadu • Independent social, Tamil Nadu infrastructure and 1. Basic tourist facilities and amenities improved at and environmental 1. Exceeded services at tourist about 9 tourist clusters including a male and and market surveys destinations and At 14 tourist clusters with total 115-person woman toilet each as a minimum for 100 visitors, for both states; capacity sanitary complexes were attractions information signage, information centers, • Tourist statistical constructed and drinking water facilities accommodation and rest shelters, and waste including rest shelters were provided at 3 management; and surveys and records for both states tourist locations. About 12.91 km underground sewer network with 521 manholes, 7 ventilation shafts and 931 house service connections were constructed in 1 tourist destination town. Total of 2,245 energy efficient illumination units installed/retrofitted at 9 tourist 2. 1,000 tourists/month on average utilizing the cities/towns. facilities of the new information centers 2. Exceeded 1,465 tourists/month on average utilizing the facilities of the information center Uttarakhand located at Tamil Nadu Tourism Development Corporation beach resort 3. Basic amenities provided, including safe drinking water and adequate toilets (M/F); Uttarakhand 3. Achieved Basic amenities provided, including safe drinking water and adequate toilets (M/F) was achieved at 7 tourist
destination/attractions; these facilities included 34 person capacity toilets with bathing/changing facilities of which 17 were for woman. One drinking water fountain and 1 water supply and storage facility were constructed at 1 location.
18 Appendix 1
Data Sources and Design Summary Performance Indicators and Targets Reporting Mechanismsa Project Achievements 4. 9 selected adventure centers/sports facilities 4. Exceeded refurbished/ constructed and equipped with basic 10 adventure centers/sports facilities sports equipment; and refurbished/constructed and provided with basic sports equipment and 5 goods contracts for procurement of equipment and aids for adventure centers completed 5. Achieved 5. State of the art ecotourism-resort facility State of the art eco-tourism resort facilities constructed at the North Corbett entry point at was constructed at the North Corbett entry Kotdwar. point at Kotdwar. 2. Improved connectivity By 2017: For all indicators. Tamil Nadu Tamil Nadu: • Reports from state 1. Achieved (through state sponsored 1. Improvements made to approximately 2km of departments tourism program). existing approach roads at selected tourist and line agencies. Subproject reviewed and dropped because destinations and attractions. between appraisal and implementation stage as the last mile connectivity was already strengthened by the line agencies through state sponsored program .
Uttarakhand Uttarakhand: 2. Not achieved 2. 2 km of elevated walk-way at Assan Barrage Subproject reviewed and dropped because constructed; and of environmental concerns.
3. Exceeded 3. 3 km of trek trail connecting Pithoragarh to 4 kilometer of trekking trail connecting Chandak constructed. Pithoragarh to Chandak constructed and being used by locals and tourists. 3. Enhanced quality of By 2017: For all indicators natural and cultural Tamil Nadu Tamil Nadu: • Independent social, attractions 1. Achieved. and environmental 1. Dansborg fort and museum at Tranquebar Dansborg fort and museum at Tranquebar and market surveys conserved to the standards prescribed by the conserved to the standards prescribed by for both states; Archeological Survey of India and/or relevant the Archaeological Survey of India and/or state authority; relevant state authority with completion of conservation works as per best practices standards, provision of visitor amenities, landscaping of about 2,454 square meter.
Uttarakhand: Uttarakhand 2. World-class water sports facilities constructed at 2. Not achieved.
Appendix 1 19
Data Sources and Design Summary Performance Indicators and Targets Reporting Mechanismsa Project Achievements old Ganga canal fully operational. Dropped due to interstate jurisdictional issues. 3. Pithoragarh fort wall stabilized and conserved to 3. Achieved the standards prescribed by the Archeological Pithoragarh fort wall stabilized and Survey of India ; and conserved to the standards prescribed by the Archeological Survey of India along with conservation of buildings and structures inside the fort including landscaping. 4. Water quality of the Naukuchiyatal lake 4. Achieved ameliorated with installation of two submersible Water quality of the Naukuchiyatal lake aeration plants. ameliorated with installation of two submersible aeration plants improved and authenticated by the Dissolved Oxygen Levels at surface improving from 4.47 milligram per liter in 2015 to 24.72 milligram per liter in 2018 and Dissolved Oxygen Levels at bottom improving from 3.07 milligram per liter in 2015 to 24.22 milligram per liter in 2018. 4. Greater participation By 2017: For all indicators by local communities 1. Exceeded, 46 community-based tourism 1. At least 15 community-based societies • Registration in tourism-related (CBT) committees were incorporated (In operational in the management of natural and certificates of economic activities Tamil Nadu with total 245 members and cultural heritage sites with equal representation of societies women; 83% women representation, 32 CBT committees incorporated in Uttarakhand • Independent social surveys with total 200 members and 91% women representation). CBT committees have the same function as envisaged for community based societies. During implementation, both states used the term ‘committees’ instead of societies.
2. Exceeded, 93 awareness campaigns 2. At least 20 awareness campaigns completed by organized (Tamil Nadu hosted 14 trained community animators; consultation workshops/awareness campaign organised by trained community animators. Uttarakhand hosted 79 consultation workshops/awareness campaign organized by trained community
animators .
3. At least 270 persons from women headed, poor 3. Exceeded and vulnerable house-holds employed in tourism 954 persons (M-366/F-588) from women-
20 Appendix 1
Data Sources and Design Summary Performance Indicators and Targets Reporting Mechanismsa Project Achievements support activities (Target: M-190/F-80); and headed, poor, and vulnerable households employed in tourism support activities in Tamil Nadu. 177 persons from women-headed, poor, and vulnerable households employed in tourism support activities in Uttarakhand. 4. At least 200 persons, including vulnerable 4. Achieved women, trained in micro-enterprise development Vulnerable women trained in micro- and receive marketing support for handicrafts enterprise development and marketing development (Target: 30% women). support provided for finished products like handicrafts development. Rural
entrepreneurial trades and marketing were organized at 14 locations with total 358
participants of which 205 were women participants in Tamil Nadu and 103 were women participants in Uttarakhand.
5. Strengthened capacity By 2017: For all indicators 1. Exceeded. of sector agencies and Capacity development • Independent social 294 staff (128 women) from the states’ local communities for and market surveys tourism offices and line agencies trained on 1. At least 200 staff of the two states’ tourism offices environment, culture, tourism planning, and planning, and line agencies trained on environment, culture, for both States development, marketing. In Tamil Nadu, 4 staff training tourism planning, and marketing (Target: M- • Master plans of both sessions with 150 staff and stakeholders management, and 100/F-100); states marketing of tourist with 45 women staff organized. In destinations and • Management plans of Uttarakhand, 1 staff training session with attractions both states 144 participants with 83 women staff 2. At least 100 community members trained in organized. tourism support activities (Target: M-50/F-50); 2. Exceeded. and 177 community members trained in tourism support activities (124 men and 53 women) 3. Partly achieved. Public private partnership packages delivered for 3. Private player participation was only limited the two states wherever feasible. to operation and maintenance lease in Uttarakhand. This was attributed to high pilgrim volumes amongst domestic tourists in Tamil Nadu where affordability was a significant factor and low financial investment capacity for tourism centric
public private partnership projects in Uttarakhand.
Planning 4. Achieved. 4. Management and master plans with gender Management and master plans (2005-
Appendix 1 21
Data Sources and Design Summary Performance Indicators and Targets Reporting Mechanismsa Project Achievements dimension endorsed and operational; and 2022) with gender dimension endorsed and operational were prepared in Uttarakhand with the United Nations World Tourism Organization . In Tamil Nadu, prepared Tourism Policy, initiated preparation of destination specific master plans. 5. Achieved. 5. Organizational and financial management Organizational and financial management measures adopted in state tourism organizations measures adopted in state tourism and associated project entities. organizations and associated project entities through adoption of different guidelines and documents under this
project like Project Finance Account Manual , QA-QC. 6. Achieved Fostering Community Participation, Marketing and Schemes for tourism-based gender- Promotion responsive livelihood generation designed 6. Schemes for tourism-based gender-responsive and implemented was linked in Tamil Nadu livelihood generation designed and implemented; across 4 ongoing government schemes, and benefiting 852 persons, of which 425 were women and was linked in Uttarakhand
across 2 ongoing government schemes, benefiting 293 persons of which 89 were women 7. Gender-sensitive promotional materials, 7. Achieved. guidebooks and brochures on tourist destinations Gender-sensitive promotional materials, developed and disseminated. guidebooks and brochures on tourist destinations were developed and disseminated in Tamil Nadu in form of
publication and dissemination of 6,550 gender equality brochures, 10,000 gender guidebooks, and 5,000 food product preparation and operation manual and skits Project Management on gender issues performed at 14 tourist spots and in Uttarakhand in form of 2,000 8. Project is managed on time and within budget. gender awareness brochures including guidebooks and 3 mountain biking events were organized to promote tourism. 8. Achieved. Project management as envisaged was done successfully on time and within the budget.
22 Appendix 1
ADB = Asian Development Bank, ASI = Archaeological Survey of India, HH = household, NGO = nongovernment organization, PIU = project implementation unit, PPP = public-private partnership, TRH= tourist rest house, QA-QC= Quality Assurance and Quality Control. Source: ADB a Project completion review mission was not fielded due to operational constraints arising out of the ongoing coronavirus pandemic (COVID-19). Data obtained from aide memoires of ADB Missions, quarterly progress reports submitted by the executing agencies, tripartite portfolio review meeting records, project completion reports prepared by the executing agencies. Information about tourist arrivals was obtained from the respective executing agencies, statistics prepared by government of India and the state governments. Tourist’s expenditure obtained from the reports prepared by the consultant for tourist statistics in Uttarakhand and from a similar survey conducted by Government of India for the state of Tamil Nadu. The project completion report preparation team also used feedback provided by the executing agencies.
Appendix 2 23
COST BREAKDOWN Table 2.1: Cost breakdown by Project Component (Appraisal and Actual) ($ million) Items Appraisal Estimate a Actual Total Cost ADB-TN ADB-U GOTN GOU Total Cost ADB-TN ADB-U GOTN/c GOU/c
A: Investment Cost
1 Civil Work
a. Urban infrastructure and service improvement 12.65 3.77 4.56 2.19 2.13 10.90 2.04 4.66 1.14 3.05
b. Connectivity improvement 1.40 0.49 0.42 0.29 0.20 0.12 0.00 0.07 0.00 0.05
c. Quality enhancement of natural and cultural 10.50 5.11 2.99 1.01 1.39 2.47 1.12 0.38 0.75 0.23 attractions
d. Community-based activities 0.43 0.15 0.14 0.08 0.06 0.00 0.00 0.00 0.00 0.00 2 Goods and Equipment 1.56 0.00 1.56 0.00 0.00 13.86 3.40 10.32 0.14 0.00 3 Survey, training and workshops 2.95 0.73 1.33 0.27 0.62 0.44 0.03 0.24 0.02 0.15 4 Consultants 11.20 5.20 6.00 0.00 0.00 5.24 1.67 3.50 0.06 0.01 5 Taxes and duties 5.88 0.00 0.00 2.80 3.08 5.59 0.00 0.00 2.67 2.92
Subtotal (A) 46.57 15.45 16.99 6.64 7.48 38.62 8.26 19.17 4.77 6.42
B: Recurrent Costs 1 Incremental administration cost 6.00 2.50 3.50 0.00 0.00 3.51 0.88 2.54 0.09 0.00 2 Taxes and duties 0.82 0.00 0.00 0.34 0.48 0.75 0.00 0.00 0.03 0.72
Subtotal (B) 6.82 2.50 3.50 0.34 0.48 4.26 0.88 2.54 0.12 0.72
C. Contingencies
1 Physical 2.57 0.95 0.88 0.36 0.38
2 Price 4.32 1.66 1.91 0.35 0.40 D. Financing Charges during Implementation/a 2.33 0.00 0.00 1.10 1.23 1.41 0.00 0.00 0.42 0.99
Total 62.61 20.56 23.28 8.79 9.97 44.29 9.15 21.71 5.31 8.12 Percentage 70% 70% 30% 30% 63% 73% 37% 27% ADB = Asian Development Bank; GOTN = Government of Tamil Nadu; GOU = Government of Uttarakhand; ADB-TN = ADB’s contribution for the Tamil Nadu; and ADB-U = ADB’s contribution for Uttarakhand Source: ADB; GOTN; and GOU. a Financing Charges during Implementation period obtained from https://aaad.gov.in/LoanLedg/A2833_IND.HTM for the Loan 2833-IND. Financing charges are recorded for the project and state wise segregation not available. Thus, total interest and commitment charges prorated between GOTN and GOU based on ADB’s share of loan for the two States. /c Counterpart contribution converted at average exchange value at disbursement for each package.
24 Appendix 3
CONTRACT AWARDS AND DISBURSEMENT OF ADB LOAN PROCEEDS A. CONTRACT AWARD OF ADB LOAN PROCEEDS Table 3.1: Annual and Cumulative Contract Awards of ADB Loan Proceeds ($ million) Annual Contract Awards Cumulative Contract Awards
Year Amount ($ million) % of Total Amount ($ million) % of Total 2012 0.09 0.30% 0.09 0.30% 2013 6.93 22.47% 7.03 22.78% 2014 15.87 51.44% 22.90 74.21% 2015 6.41 20.78% 29.31 94.99% 2016 1.55 5.01% 30.85 100.00% 2017 - 0.00% 30.85 100.00% 2018 - 0.00% 30.85 100.00% Total 30.85 100.00% Source: Asian Development Bank
Figure 3.1: Projection and Cumulative Contract Awards of ADB Loan Proceeds ($ million) L-2833-IND Annual and Cumulative Contract Awards vs Cumulative at Appraisal of ADB Loan Proceeds 50.00
45.00
40.00
35.00
30.00
25.00
20.00
15.00
10.00
5.00
- 2012 2013 2014 2015 2016 2017 2018
Annual Contract Awards (Actual) Cumulative Contract Awards (Actual) Cumulative Projections at Appraisal
Source: Asian Development Bank
Appendix 3 25
B. DISBURSEMENT OF ADB LOAN PROCEEDS
Table 3.2: Annual and Cumulative Disbursement of ADB Loan Proceeds ($ million)
Annual Disbursement Cumulative Disbursement
Year Amount ($ million) % of Total Amount ($ million) % of Total
2012 0.05 0.16% 0.05 0.16% 2013 0.66 2.13% 0.71 2.29% 2014 1.85 5.98% 2.55 8.27% 2015 6.29 20.40% 8.85 28.67% 2016 8.49 27.53% 17.34 56.20% 2017 6.21 20.14% 23.56 76.34% 2018 7.30 23.66% 30.85 100.00% Total 30.85 100.00% Source: Asian Development Bank
Figure 3.2: Projection and Cumulative Disbursement of ADB Loan Proceeds ($ million) L-2833-IND Annual and Cumulative Disbursement vs Cumulative at Appraisal of ADB Loan Proceeds 50.00 45.00 40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 - 2012 2013 2014 2015 2016 2017 2018
Annual Disbursement (Actual) Cumulative Disbursement (Actual) Cumulative Projections at Appraisal
Source: Asian Development Bank
26 Appendix 4
SUMMARY OF CONTRACT PACKAGES
PCSS Contract Value Disbursed Contract Package Contract Description Contractor Contract Contract # (ADB Financing) ($) Name Award Completion ($) Uttarakhand 0010 274,727 274,727 UK/IDIPT/DDN/01 Development of tourism Rajendra Kumar 10-Feb-14 6-Feb-16 infrastructure at Asan barrage, Tripathi Dehradun, lot 1 0011 74,846 74,846 IDIPT(UK)/BHT/03 Works of view point at Mostmanu Soar valley 3-Jun-14 2-Jun-15 /LOT2 Temple construction in JV 0012 395,694 395,694 UKIDIPT/BHT/01 Upgradation of tourist facilities at Dagmo Riba 15-May-14 30-Oct-16 TRH Parichay 0013 68,363 68,363 UK/IDIPT/BHT/03, Works of trek trail from Soar valley 3-Jun-14 3-Jun-15 LOT 1 Pithoragarh to Chandak construction in JV 0014 470,353 470,353 UKIDIPT/DDN/ Development of Yamuna Dagmo Riba 15-May-14 15-Nov-16 05 Circuit,lot 3(Hanol Mahasu & tree Samadhi), Dehradun 0015 161,896 161,896 IDIPT(UK)/DDN/03 Development of Yamuna circuit Aradhya 9-Jun-14 1-Mar-16 ,LOT 1 (Tiger fall & Lakhmandal temple), Engineers & Lot 1 Construction Pvt. Ltd. 0018 1,007,771 1,007,771 UK/IDIPT/KOT Development of north entry in Dagmo riba 9-Jul-14 23-Sep-16 /01 Corbett at Kotdwar 0019 23,479 23,479 UK/IDIPT/DDN/04 Development of Yamuna circuit, Uttarakhand 18-Sep-14 31-Aug-16 lot 2, (Devban forest guest Forest house) Department, 0020 376,104 376,104 UK/IDIPT/BHT/03- Conservation of Pithoragarh fort Dagmo Riba 25-Sep-14 24-Sep-15 LOT 3 at Pithoragarh 0024 1,268,572 1,268,572 UK/IDIPT/KOT/03, Development of adventure centre- Sunil Garg & 30-Dec-14 28-Sep-16 /LOT 2 Tehri under PIU Kotdwar, lot 2 company in jv with Jai Durgey 0034 797,448 797,448 UK/IDIPT/BHT/02, Development of adventure centre Dagmo Riba 6-Jun-15 4-Nov-16 LOT 2 at Baur Jalashaya,lot 2 (works), Uttarakhand 0052 54,229 54,229 UK/IDIPT/DDN/06, Development of adventure tourist Samir Kumar 30-May-16 1-Jan-18 LOT 2(P1) Centre, Uttarkhandlot 2 Mishra (Bageshwar) 0053 74,896 74,896 UK/IDIPT/DDN/06, Development of adventure tourist Samir Kumar 30-May-16 1-Jan-18 LOT 2(P2) Centre Uttarakhand, lot 2 Mishra
Appendix 4 27
PCSS Contract Value Disbursed Contract Package Contract Description Contractor Contract Contract # (ADB Financing) ($) Name Award Completion ($) (Tanakpur) 0054 57,387 57,387 UK/IDIPT/DDN/06, Development of adventure tourist Kailash Singh 30-May-16 1-Jan-18 LOT 2(P3) Centre, Uttarakhand, lot 2 (Pauri) Bisht in JV with Laxman Prasad 0017 1,813,420 1,813,420 UK/IDIPT/BHT/02 Amelioration of lake Naukuchiatal, Global Aqua 26-Jun-14 26-Mar-15 Nainital, Uttarakhand treatment technology Pvt. Ltd 0023 6,061,104 6,061,104 UK/IDIPT/KOT/02 Signage subproject in Renobyer 30-Dec-14 26-Sep-16 Uttarakhand Sa Madrid Spain in JV with Prabhatam 0025 398,435 398,435 UK/IDIPT/KOT/03, Development of adventure sports Litmus Marine 27-Jan-15 27-Jun-16 LOT 1 Centre-tehri, Kotdwar (goods) innovation Pvt. Ltd. 0035 706,246 706,246 UK/IDIPT/BHT/04, Development of adventure tourist Litmus Marine 30-Jun-15 28-Nov-16 LOT 1 Centre at Baur Jalashya lot 1 innovation Pvt. (goods) Ltd. in JV 0056 271,348 271,348 UK/IDIPT/DDN/06, Development of adventure sports R & R 17-Oct-16 17-Apr-17 LOT 1,P3 Centre Uttarakhand(air sports), lot Adventures JV 1 0059 1,051,529 1,051,529 UK/IDIPT/DDN/06, Development of adventure tourist Rite Equipment 20-May-17 19-May-18 LOT 1,P1 Centre, Uttarakhand, lot 1 - JV supply of adventure sports 0061 21,084 21,084 UK/IDIPT/BOAT Rescue boat Baur Jalasaya Defence 31-May-18 30-Jun-18 Equippers 0030 237,132 237,132 VARIOUS Training, capacity development, Various 2-Apr-12 31-Dec-17 marketing & promotion 0003 488,639 488,639 UK/IDIPT/DSC Design and Supervision Wapcos Ltd.in 13-Mar-13 13-Aug-17 /BHIMTAL consultant: Bhimtal Association with Prima-ACS Coll 0004 854,103 854,103 UK/IDIPT/DSC/KO Design and supervision Lahmeyer GKW 13-Mar-13 13-Aug-17 T consultant: Kotdwar consult GmBH in association with 0005 1,104,395 1,104,395 UK/IDIPT/DSC/DD Design and supervision Shah technical 13-Mar-13 13-Aug-17 N Consultant, Dehradun consultants Pvt.Ltd. in JV
28 Appendix 4
PCSS Contract Value Disbursed Contract Package Contract Description Contractor Contract Contract # (ADB Financing) ($) Name Award Completion ($) 0006 836,033 836,033 Project management consultant: Aecom asia 9-Apr-13 19-Oct-17 UK/PMC/IDIPT/DD Dehradun company Ltd. In N association 0028 48,680 48,680 UK/IDIPT/CTS/01 Consultant for tourist statistics Datamation 13-Apr-15 12-Jul-16 consultants Pvt. Ltd. 0043 172,373 172,373 UK/IDIPT/NGO/01 State level program ngo for Institute for 7-Nov-15 14-Nov-17 community, livelihood promotion development and capacity building under idipt support, India 0001 13,138 13,138 VARIOUS Incremental administration cost Various 2-Apr-12 18-Jun-12 for the retroactive period for the state of Uttarakhand 0002 74,881 74,881 VARIOUS Incremental administration cost Various 2-Apr-12 31-Mar-13 for the period of 19 June 12 to 31 mar 13 for the state of Uttarakhand 0007 326,833 326,833 VARIOUS Incremental administration cost Various 1-Apr-13 31-Mar-14 for the period of 1 April 2013 to 31 March 2014 for the state of UK 0016 494,889 494,889 VARIOUS Incremental administration cost Various 1-Apr-14 31-Mar-15 for the period of 1 Apr 2014 to 31 mar 2015 for the state of UK 0029 480,828 480,828 VARIOUS Incremental administration cost Various 1-Apr-15 31-Mar-16 for period of 1 Apr 2015 to 31 Mar 2016 for the state of UK 0048 582,465 582,465 VARIOUS Incremental administration cost Various 1-Apr-16 31-Mar-17 for the period of 1 Apr 2016 to 31 Mar 2017 for the state of UK 0060 562,202 562,202 VARIOUS Incremental administrative Various 21-Jun-18 30-Jun-18 expenses for period of 1 Nov 2017 to June 2018 Tamil Nadu 0031 186,246 186,246 IDIPT/TN/P2/NCB/ Construction of new public toilets Kellein 3-Nov-14 3-May-16 05A/2013 and sanitary complexes at construction Udhagamandalam Private Limited 0032 483,039 483,039 IDIPT/TN/P2/NCB/ Supply and laying of sewer G.V.S. 29-Sep-14 29-Mar-16 15B/2013 including construction of maholes, Engineering & ventilating shaft primary septic construction tank
Appendix 4 29
PCSS Contract Value Disbursed Contract Package Contract Description Contractor Contract Contract # (ADB Financing) ($) Name Award Completion ($) 0033 444,659 444,659 IDIPT/TN/P2/NCB/ Conservation and restoration of K.C. Jayakumar 29-Sep-14 29-Mar-16 01/2013 important monuments at contractor Dansborg fort, Tranquebar upgrading visitor 0036 553,979 553,979 IDIPT/TN/P2/NCB/ Supply & laying of underground GVS engineering 6-Aug-15 6-Feb-17 15A/2013 sewer including construction of & Construction manholes, Ventillating staff etc 0037 127,431 127,431 IDIPT/TN/P2/NCB/ Construction of new public toilets Samuthra 16-Jul-15 16-Jul-16 05-E3/2013 and sanitary Complexes at Polymers Rameswaram 0038 77,226 77,226 IDIPT/TN/P2/NCB/ Construction of new public toilets Delta engineering 24-Jul-15 23-Aug-16 05-C2/2013 and sanitary complexes at service Nagapattinam 0039 86,863 86,863 IDIPT/TN/P2/NCB/ Construction of new public toilets V. Pandi 27-Jun-15 26-Jun-16 05-E2/2013 and sanitary complexes at contractor Madurai 0040 370,614 370,614 IDIPT/TN/P2/NCB/ Muttukadu boat area Punitha 7-Oct-15 12-Apr-17 02/2013 improvement Thanapandian 0041 154,790 154,790 IDIPT/TN/P2/NCB/ Improvements at TTDC beach K.C. Jayakumar 7-Oct-15 12-Apr-17 04-A/2013 resort complex (civil works), Mamallapuram 0042 150,649 150,649 IDIPT/TN/P2/NCB/ Mudhaliyarkuppam boat area R.P.P. infra 7-Oct-15 7-Apr-17 03/2013 improvement Projects limited 0045 284,919 284,919 IDIPT/TN/P2/NCB/ Construction of new public toilets N.Devaprabhu 13-Nov-15 12-May-17 05-B/2013 and sanitary complexes at contractor Tiruvannamalai 0046 38,823 38,823 IDIPT/TN/P2/05- Construction of new public toilets, B.Sankar 25-Nov-15 25-Nov-16 D1/2013 Sanitary complexes at Srirangam, Trichy 0047 101,176 101,176 IDIPT/TN/P2/NCB/ Construction of new public toilets R. Udhayakuamr 11-Jan-16 11-Jan-17 05-E1/2013 and sanitary complexes at Palani 0049 - - IDIPT/TN/P2/NCB/ Construction of new public toilets Udhayam 22-Mar-16 4-Nov-17 05-C1/2013 and sanitary complexes at constructions Velankanni 0050 20,208 20,208 IDIPT/TN/P2/NCB/ Construction of new public toilets DJ Construction 22-Mar-16 21-Mar-17 05-C3/2013 and sanitary Complexes at Tharangambadi 0051 84,236 84,236 IDIPT/TN/P2/NCB/ Construction of new public toilets Orient Builders 23-Mar-16 22-Mar-17 05-D2/2013 and sanitary complexes at
30 Appendix 4
PCSS Contract Value Disbursed Contract Package Contract Description Contractor Contract Contract # (ADB Financing) ($) Name Award Completion ($) Thanjavur 0057 34,765 34,765 Trainings and workshops for VARIOUS 6-Jul-17 31-Dec-17 gender action plan 0008 646,643 646,643 TN/IDIPT/PMC/01 Project management consultant, Shah technical 4-Oct-13 7-Oct-16 Tamil Nadu consultants(p)ltd. in JV 0009 1,019,112 1,019,112 TN/IDIPT/DSC/01 Design and supervision Mukesh & 4-Oct-13 7-Oct-16 consultant, Tamil Nadu Associates, Salem, India 0055 519,003 519,003 VARIOUS Incremental administration cost Various 18-Oct-16 31-Dec-16 for the period from December 2015 to June 2018 8801 365,839 365,839 VARIOUS Incremental administration cost Various 19-Jun-12 31-Mar-14 for the period of 19 June 2012 to 31 March 2014 for state of Tamil Nadu 0021 2,632,221 2,632,221 IDIPT/TN/P2/ICB/0 Supply & installation of aesthetic Bajaj electricals 29-Sep-14 29-Mar-16 7/2013 and energy efficient lighting at 7 Ltd, major cities/towns in 0022 544,756 544,756 IDIPT/TN/P2/NCB/ Supply & installation of signage at Sri Balaji 29-Sep-14 29-Mar-16 09/2013 12 major tourist cities/towns Associates 0027 93,396 93,396 IDIPT/TN/P2/NCB/ Supply & installation of street Sri Shiva Sakthi 29-Sep-14 29-Mar-16 08/2013 furniture at 10 major tourist Associates cities/towns in Tamil Nadu 0044 128,609 128,609 IDIPT/TN/P2/NCB/ Supply and installation of energy Kumaran 2-Sep-15 1-Mar-16 16/2014 efficient flood lights at Arulmigu Industries Uchipillaiyar Kovil (rock fort)
Appendix 5 31
IMPLEMENTATION OF GENDER ACTION PLAN
A. Introduction
1. The Infrastructure Development Investment Program for Tourism was expected to result in additional employment and improved living conditions for the local populations, including the poor and vulnerable. At tranche 2 (the project) appraisal, the estimated poverty incidence in Tamil Nadu was 22.5%, while more than 35% of people were poor in Uttarakhand. The poverty incidence in Uttarakhand was significantly higher than the national average (27%). Within the states, poverty and inequality levels were disproportionately and significantly high among several social groups, scheduled castes, scheduled tribes, other backward class, and the communities in far-flung hilly and rural pockets disjointed from the mainstream population. Moreover, given the lack of employment opportunities in those areas, there was a large-scale migration of young people, especially in Uttarakhand. The internal migrants per 1,000 households (2007-2008) in Uttarakhand was as high as 305, while 44 in Tamil Nadu. The project set out capacity building activities to foster community involvement and provide support in designing community-based tourism products. It allowed communities without significant natural or cultural tourism resources to indirectly participate in tourism development through backward and forward linkages with destination communities. 2. The project was categorized effective gender mainstreaming. To mainstream gender in the project, the main approaches used were the incorporation of performance indicators and targets for gender equality and women’s empowerment (GEWE) in the project’s design and monitoring framework (DMF) and the preparation and implementation of a gender action plan (GAP) for Uttarakhand and Tamil Nadu.
B. Gender Issues
3. A sample socioeconomic survey at tourist destinations in both states indicated that women respondents articulated the following needs for participation in economic activities (skill enhancement and livelihoods/income generation): (i) small-scale tourism infrastructure to benefit CBT; (ii) larger-scale connectivity and utilities to improve accessibility to, and the quality of life in, the tourist destinations for both tourists and host communities; and (iii) skills training and credit for tourism-based livelihood development. About 35% of the surveyed householders were self-employed, 30% of them involved in tourism-based activities. However, the demand for support for both production and consumption objectives by the poor and marginalized populations was common in both the states. 4. More importantly, the key constraint to economic development, as identified, was a missing link between the community and markets. Incomes were lower in remote destination areas with high ecological value. While access to alternative livelihoods was relatively better in Tamil Nadu, the overall access to livelihood in Uttarakhand was a constraint due to extreme weather conditions and tourism being a seasonal activity. 5. A gender analysis at project preparation stage underscored the potential of the program to contribute to the promotion of GEWE through the adoption of gender-inclusive community- based tourism development structures and the provision of tourism-related customized livelihood opportunities for women. The project design was inspired by the finding that the improvement of tourist infrastructure and necessary tourist facilities could result in general benefits for both men and women. If managed properly, these facilities could contribute to the promotion of gender equality through improved opportunities for women in income generation, directly as part of the CBT activities and indirectly through increased employment from
32 Appendix 5 increased tourist inflows. Environmental improvements, better awareness of hygiene and food safety, improved skills (through training), and more representation in decision-making bodies were the other recommendations of the analysis to strengthen women’s role and increase their participation in the industry.
C. Project Gender Features
6. The GAP, which supported the achievement of the gender-related targets in the project DMF, was designed to ensure that women have equal opportunity to participate in and benefit from the project through the following elements: i. Improvement in basic services women-only dormitories/bathing areas/toilets, street lighting, etc., and tourist infrastructure developed to cater to the needs of women tourist at subprojects sites; ii. Mitigation of the gender-related risks associated with tourism infrastructure development through IEC and awareness campaigns using the services of 50% community facilitators, and dissemination of gender-inclusive messages at regular intervals; iii. Women’s active participation in consultative processes for selection of subprojects sites and building tourism infrastructure to improve access to employment opportunities and basic services. iv. Special focus on coverage of women-headed and poor household members to sensitize them avail benefits under the community-based tourism component; v. Awareness-raising on community-driven approaches to the conservation of natural and cultural heritage sites through workshops in Uttarakhand and Tamil Nadu to sensitize and mobilize communities to preserve and conserve natural and cultural sites; vi. Training for community-members on micro-enterprise development, marketing of handicrafts, woodwork, embroidery and micro-enterprise development; vii. Customized training for community members on adventure tourism activities and provision of jobs with equal pay for an equal value of work; viii. Provision for the necessary support to community members to receive employment from government agencies, private players and temple trusts, adventure centers, and beach resorts; ix. For institutional capacity building, training for staff of state tourism departments, tour operators, guides and selected community-leaders in environment culture, tourism planning, coordination, monitoring, marketing, and project management processes with equal participation by women staff; x. Inclusion of gender-inclusive features in the revised detailed project report (DPR) [master plans] for nature and culture-based tourist destinations; xi. Partnerships with non-government organizations (NGOs) to induce active participation by women and girls in availing the project benefits; xii. Sensitization of civil work contractors on the importance of encouraging women’s employment, observing non-discriminatory practices at worksites, and adherence to the provision of an equal wage for work of equal value; and xiii. Design and implementation of tourism-based, livelihood schemes through micro- enterprise development, and skilled employment opportunities.
Appendix 5 33
D. Implementation, Monitoring, Reporting Arrangements:
7. In Uttarakhand, the social and environmental safeguards specialists at the project management units, project management consultants, and the design and supervision consultants coordinated the implementation, monitoring, and reporting of the GAP. At the field level, site engineers of the project implementation unit, supervision consultants, and the contractors were responsible for oversight and data maintenance. With an initial delay in rolling out the GAP activities in the field, the executing agency for Tamil Nadu resorted to the mobilization of an expert agency -the Entrepreneurship and Innovation Institute (EDII)- to support GAP implementation. All the GAP activities, including community-based activities, skills training, and employment support, were coordinated by the agency in the oversight of an additional director level official. Besides, gender focal points in both states consistently submitted implementation progress reports. ADB provided capacity development and other technical support on gender mainstreaming aspects to the EAs and IAs.
E. Gender Action Plan Achievements
8. The GAP implementation achievements were rearranged to align with the outputs of the DMF, are presented in table 5.1. Overall, these achievements have provided practical and strategic gender benefits to women, as listed below. The strategic gender benefits are further grouped into the key GEWE areas: human capital development, and women’s economic empowerment, and the creation of spaces for women’s voice to be heard. a. Practical Gender Benefits i. IEC and awareness campaigns for the project influence communities and residents on gender-related risks associated with tourism infrastructure development achieved equal participation by women. The campaigns were useful in mitigating risks and challenges. The event also dwelled upon opportunities (skill training, income prospects) underlying with redevelopment/development of new tourist destinations. ii. Women were actively consulted for the selection of subproject sites and building a tourism infrastructure to ensure that improved connectivity and tourism infrastructure development would respond to the distinct needs of women as well as of women-headed and poor household members. iii. Awareness-raising on community-driven approaches to the conservation of natural and cultural heritage sites through workshops in Uttarakhand and Tamil Nadu ensured adequate representation of women and galvanized them to contribute towards the preservation and protection of natural and cultural sites. iv. The inclusion of essential services, women-only dormitories and bathing areas and toilets, street lighting, information materials on women helpline number, police helpline number, health services, fire and emergency helpline number at the construction sites and tourist destination sites-enabled women and men to work and stay at the construction and tourist destination sites comfortably and ensured safe mobility and for women tourists in the states. b. Strategic Gender Benefits i. Human Capital Development. The project provided vocational skills enhancement opportunities to women to keep pace with rapid market transformations affecting jobs and income-generation opportunities and participation in the formal labor market. The skills training included fabric (t-shirt) painting, wall hanging production, and enterprise development procedure, and
34 Appendix 5
basic requirements. The other training was on trek lead, hospitality services, and tourism support activities. In Tamil Nadu, women were trained in the production and marketing of handicrafts, woodwork, embroidery, garments sewing, auto mechanism/automobiles, data entry and tally, and tourist guides. Women in each state were also trained in basic communication and marketing skills in areas as diverse as traditional local cuisine. These upskilling and reskilling opportunities generated a great deal of knowledge, skills, and personal attributes (e.g., health, motivation, values), which enabled women and the communities to produce, earn, and move towards realizing their dream of economic freedom. ii. Women’s Economic Empowerment. In Tamil Nadu the project created employment for local communities, including women in temple trusts, government agencies that are affiliated to the Department of Tourism and Tamil Nadu Tourism Development Corporation, and private business entities (e.g., tour and travel agencies). The beneficiaries also represented women-headed and poor and vulnerable households. In Uttarakhand, women received employment in hospitality services as tour guides, air ticketing agents/executives, receptionists, and assistants in information/interpretation centers and adventure centers. Women workers also gained employment in the construction and development of tourism infrastructures. A large number of women were provided with job opportunities through income generation schemes specially designed and implemented. In Tamil Nadu, the project established convergence with existing government schemes on income generation to benefit women. The project completion assessment indicated that women were in a better position to contribute to economic growth, development, and poverty reduction. Resources in the hands of women members have a range of positive outcomes as these women tend to reinvest their profits, leading to prospective income growth. iii. Creating Spaces for Women’s Voices to Be Heard. The GAP employed affirmative measures to ensure women’s participation in project activities. Women’s equitable participation in all consultative meetings and representation in community-based organizations (community-based tourism units) in Tamil Nadu and Uttarakhand have helped the women engage in traditionally prohibitive vocations and articulate social issues which concern them. The success stories have not only fueled the aspirations of women and girls but have also made a significant impact on men’s mindsets regarding women’s potential to succeed. These affirmative measures also have led the poor and marginalized rural/peri- urban women to realize their potential, their rights to have access to opportunities, resources, and choices, and to a great extent decision making both within and outside the home. The equal opportunities in economic, social, and political spheres promoted by the project have the potential to bring advancement in women's conditions to influence the direction of social change in the future.
Table 5.1: GAP Achievements Matrix Activities and Targets Achievements Status at Completion Output 1. Improved basic urban infrastructure and services at tourist destinations and attractions 1. Basic services improved, and (i) Uttarakhand. Number of bathing areas/toilets Completed tourist infrastructure developed to constructed at Tiger Fall: 34, with bathing cater to the needs of women areas/toilets for women: 17 (100% locations
Appendix 5 35
tourists at subproject sites. covered)1; Targets Target 1: Uttarakhand (DMF Output (ii) Tamil Nadu. (a) The number of toilets achieved 1.3): dormitories/street lighting built: 46 at 9 locations (i) Women only bathing areas/toilets (100%)]; and (b) the total number of laborers in the at Tiger Falls and Tree Samadhi to civil works: 100 and women laborers: 56 (56%). ensure privacy and safety [target: 100%] Tamil Nadu (DMF Output 1.1): (ii) (a) Women only dormitories/bathing areas/Toilets and street lighting put up at subproject temple circuit sites [target: 9 locations 100%]; and (b) 100 laborers participate in the construction of civil works and public amenities in subproject sites [target: 30% women] 2. Mitigate the gender-related risks (i) Uttarakhand. Community awareness campaigns Completed associated with tourism conducted: 251, with total participants (facilitators): infrastructure development through 1,598 out of whom 799 women (50%); Targets IEC and awareness campaigns (ii) Tamil Nadu. Community awareness campaigns achieved Target 2: conducted: 63, with total participants (facilitators): 188 (i) 20 [Uttarakhand: 10 and Tamil out of whom 95 women (50%).2 Nadu: 10] community awareness campaigns using the services of Topics of the campaigns: (i) risks and challenges for the community facilitators, conducted project influence communities and residents including women, [target: 50% women facilitators] (ii) long-term advantages vs. short term disadvantages of civil (ii) Gender-sensitive messages work for tourism infrastructure development (e.g., excavation, produced and disseminated at diversion, blockages, traffic congestions), and (iii) opportunities regular intervals [target: 100%]. (skill training, income prospects) underlying with redevelopment/development of new tourist destinations. 3. Finalize gender-responsive (i) Uttarakhand: Guidebooks disseminated: 2.000; Completed guidebooks, brochures, and brochures disseminated: 2,000 and subproject website on risks and impacts sites covered: 13.3 associated with tourism (ii) Tamil Nadu: Guidebooks disseminated: 14,700; infrastructure development brochures disseminated: 15,000 and subproject Target 3: sites covered: 14.4 (i) Uttarakhand. 2,000 guidebooks, Targets 2,000 brochures on gender-related Contents included: (i) prevention of risks from civil works for achieved issues disseminated in all 13 men, women, elderly and children, (ii) people’s contribution to subproject sites. social and environmental safeguard at all project sites, (iii) (ii) Tamil Nadu. 5,000 guidebooks, context-specific gender equality issues (Tamil Nadu) with 7,000 brochures on gender-related practical case studies, and (iv) value-added food processing issues disseminated in all for income generation in Uttarakhand. subproject sites. Output 2. Improved Connectivity
1 The project aimed to develop tourism infrastructure (visitor facilities) at Hanoi Mahasu and Tree Samadhi, under one contract, i.e. lot 3 (Yamuna Circuit). However, the Tree Samadhi component was dropped having been unable to secure the no-objection certificate from the Department of Forest, Uttarakhand. Nevertheless -in addition to the bathing areas/toilets constructed at Tiger Fall- 10 new bathing areas/toilets were constructed at other subproject sites (Pithoragarh and Lakhamandal), 6 of which (60%) for women. 2 (i) 14 public hearing programs, (ii) 14 campaigns with public announcements through three-wheeled vehicles, (iii) 35 programs of street plays. 3 All subproject sites in Dehradun, Bhimtal, and Kotdwar. 4 Mamallapuram, Muttukadu, Mudaliarkuppam, Kanyakumari, Trichy, Rameswaram, Madurai, Tiruvannamalai, Palani, Nagapattinam, Velankanni, Tarangambadi, Thanjavur and Ooty.
36 Appendix 5
4. Encourage women’s participation in Consultation meetings held: 60. In Uttarakhand: 46 and in Completed consultative processes for selection Tamil Nadu: 14. Total participants: 5,578, out of whom 2,574 of subprojects sites and build (45%) women participants with 1,267 (49% of all women tourism infrastructure to improve participants) belonging to women-headed and poor access to employment households. opportunities and basic services Target 4: Uttarakhand and Tamil Topics of the meeting; (i) social and economic benefits of Target Nadu improved connectivity and tourism infrastructure development, achieved • 4 consultation meetings (2/State) and (ii) equal job and participation opportunities for women and held with women-headed and poor men in local communities during project implementation and household members to sensitize beyond, project ownership, and support in contract them of the social, economic implementation. benefits of improved connectivity and tourism infrastructure development. Output 4. Greater participation by local communities in tourism-related economic activities 5. Raise awareness on community- Consultation workshops organized by trained community Completed driven approaches to the animators: 94. In Uttarakhand: 79 and in Tamil Nadu: 14. conservation of natural and cultural Total participants: 470, out of whom 316 (67%) women heritage sites participants. Target Target 5 (DMF Output 4.2): Topics of the meeting: (i) benefits of people-centered Achieved • 4 workshops (Uttarakhand: 2 and approaches to conserve natural and cultural sites, (ii) benefits Tamil Nadu: 2) conducted to of engaging communities in the conservation of natural and sensitize and mobilize communities cultural sites, and (iii) benefits in adopting people-centered to preserve and conserve natural approaches in tourism development for the decision-, policy- and cultural sites. (DMF Output 4.2. makers, and local communities At least 20 awareness campaigns completed by trained community animators) 6. Train community-members on Workshops organized in Uttarakhand: 7, with 113 participants Completed micro-enterprise development and trained, including 103 (91%) women. Workshops held in Tamil marketing of handicrafts, Nadu: 14, with 245 participants trained, including 205 (83%) woodwork, and embroidery women. Target 6 (DMF Output 4.4): Target • 10 training workshops In Uttarakhand: Trade of the skills training, (i) fabric (T-shirt) achieved (Uttarakhand: 5 and Tamil Nadu: painting, (ii) wall hanging, and (iii) enterprise development. In 5) held for 200 community Tamil Nadu: one 5-day training on livelihood skills for women members (Uttarakhand: 100 and at each of the locations in rural entrepreneurial and marketing Tamil Nadu: 100) on enterprise of handicrafts, woodwork, and embroidery conducted in development (target: 30% women) addition to other programs5.
5 The training program on enterprise development in Tamil Nadu held by the Entrepreneurship Development and Innovation Institute, motivated tribal women to set-up shops in the premises of the Botanical Garden, near the boat- house developed under the project. The district administration supported three women shops to supply food for participants at the International Women‘s Day celebrations. Subsequently, the district collector, Ooty allotted them space to set-up embroidery and woolen shop, fruit and flower stall, and a home-made food unit. The interventions helped these tribal women double their income and gave them greater voice within their respective household and societies. As of June 2019, five more shops have been set up making it a total of eight, all established with support provided by the Department of Tourism and the Tamil Nadu Women’s Development Corporation.
Appendix 5 37
7. Train community members on In Uttarakhand, 4 training6 conducted in adventure tourism, Completed adventure tourism activities and with 100 community members (participants), of whom 30 provide them with employment (30%) women. 100 trained beneficiaries were successfully opportunities with equal pay for an employed across 10 adventure tourist centers [Chamoli, equal value of work Rudraprayag, Uttarkashi [Mori], Pauri, Almora, Kapkot Target 7 (DMF Output 5.2): [Bageshwar], Tanakpur [Champawat], Pithoragarh, Baur, and Uttarakhand Tehri. Training course/employment trade: trek lead. Also -as Target • 10 training workshops conducted indicated in activity 8 and related Target 8 below- 77 achieved for 100 community members on community members, of whom 23 (30%) women were trained adventure tourism and job and employed in hospitality services. In total, 177 placement services provided to community members (124 men and 53 women) were trained in trained participants in 9 adventure tourism support activities (adventure tourism and hospitality tours centers (target: 30% women) services), thus adhering to the commitment set out in DMF (DMF Output 5.2. At least 100 Output 5(2). Interviews with selected employers suggest equal community members trained in tourism pay for work of equal value in the industry. support activities (M: 50; F: 50) 8. Support community members to (i) Uttarakhand. The number of community members Completed receive employment from trained and employed in hospitality services: 77, with government agencies, private 23 women (30%). Trades: (i) Tour guide, air ticketing, players and temple trusts (ii) information/interpretation center assistance. Target 8 (DMF Outcome 3, Output Community members employed in adventure 4.3): activities: 100, with 30 women (30%). Training Target (i) Uttarakhand. (a) 70 community course/ employment trade: trek lead. Of the total achieved members received training in members employed, 20 (or 25%) were from women- hospitality services and employed headed poor and vulnerable households. to work as support staff in 9 (i) Tamil Nadu. The number of community members adventure centers [30% women]; employed by temple trust/government agencies: 954, (b) 100 community members with 588 women (62%). Community members trained in adventure activities and employed by government agencies affiliated to the employed as adventure sports Department of Tourism and guide [target: 30% women]. (ii) registered with Tamil Nadu Tourism Development (ii) Tamil Nadu: 100 community- Corporation, private business entities, and temple members employed by temple trusts. Of the total (954), 121 (or 13%) were from trust/government agencies to act women-headed households, while 583 (or 61%) as professional guides, tour belonged to poor and vulnerable households. operators, stewards in temple circuits and TTDC beach resort [target: 30% women] 9. Ensure equal employment (iii) Uttarakhand. Community members received Completed opportunities for women in all employment: 3,839, with 1,412 women (37%). project-financed subprojects (i.e., (iv) Tamil Nadu. Community members received skilled and unskilled jobs). employment: 110, with 34 women (30%). Target 9 (DMF Outcome 3 and Output 1. Key trades/sectors: (i) garments sewing, (ii) auto
6 Due to delay in mobilization of support NGO, rough and hilly terrain and treacherous weather conditions in the project subproject areas, the EA resorted to combine the 10 programs into four to cover the target (100 community members).
38 Appendix 5
4.3): mechanism/automobiles, (iii) data entry and tally, and Target (i) Uttarakhand. 100 community (iv) tourist guides.2 achieved members receive skilled employment by government/private players to restore natural and cultural sites and construct 9 adventure tourism centers [target: 30% women] (ii) Tamil Nadu. 100 community members receive job training and employed by government/private players to restore natural and cultural sites [target: 30% women] Output 5. Strengthened capacity of sector agencies and local communities for planning, development, management, and marketing of tourist destination and attractions 10. The staff of state tourism Training workshops conducted: 5. In Uttarakhand: 1 and in Completed departments trained in environment Tamil Nadu: 4. Total participants in Uttarakhand: 144, out of culture, tourism planning, whom 83 women and in Tamil Nadu: 150, out of whom 45 coordination, monitoring and women. The total of women trained in environment culture, marketing tourism planning, coordination, monitoring, and marketing is thus 128 above the DMF and GAP target of 100. Target Uttarakhand and Tamil Nadu achieved Target 10 (DMF Output 5.1): Topics of the training: (i) environment preservation and eco- • At least 200 staff of the two states’ tourism, (ii) the people and the environment, economic, and tourism offices and line agencies social benefits of tourism for poor communities and vulnerable trained on environment culture, members, especially women, and (iii) tourism planning, tourism planning, and marketing coordination, and marketing. state [Target: Men-100/Women-100] Planning: EA reported having prepared DPRs for all sub-projects after Completed 11. Detailed project reports (DPRs) the project became effective. DPRs prepared in Uttarakhand: [Management and master plans] 14; DPRs prepared in Tamil Nadu: 4. The following gender- prepared produced and endorsed equality features were incorporated in the DPRs: (i) equal for nature and culture-based tourist opportunities for men and women from poor and marginalized destinations and made operational communities in heritage management and jobs, (ii) protection Uttarakhand and Tamil Nadu of women and girls from negative impacts of the tourism Target Target 11 (DMF Output 5.4): infrastructure development, (iii) increased participation of achieved • Gender perspective planning is women in skill development and employment opportunities. undertaken and endorsed [target: 100%]. Activity 1 Scheme for tourism- Schemes designed and implemented in Uttarakhand: 2 [(a) Completed based, livelihood generation Veer Chandra Singh Garhwali Yojana (scheme), and (b) involving social mobilized and Homestay Policy to promote microenterprise development and microfinance services designed and skilled employment with special attention on benefits for implemented women. Schemes converged in Tamil Nadu: 4, with 842 beneficiaries covered, 425 (or 50%) women. The Department Uttarakhand and Tamil Nadu (DMF of Tourism, Tamil Nadu assessed that leveraging existing Output 5.6) government schemes was more beneficial for communities • Tourism-based, livelihood schemes than launching new livelihood schemes. The convergence with designed and implemented through the following existing schemes yielded encouraging outcome micro-enterprise development and for the local community with equal participation of women skilled employment opportunities. (50%): (i) Youth Skills Training Scheme of Tamil Nadu Skill Development Council, (ii) Skill Development Training Scheme of Tamil Nadu, Adi Dravidar Housing and Development Corporation Limited (TAHDCO), (iii) Unemployed Youth Employment Generation Program (UYEGP) of Tamil Nadu Skill Development Council, and (iv) Skill and Placement Scheme for Women of Tamil Nadu Women's Development Corporation (TNWDC).
Appendix 5 39
12. Ensure women’s equitable Completed participation in all consultative processes for the prioritization of project plans and all decision- making processes and structures supported by the project. Target 12. 100 staff (50 each in Training conducted in Uttarakhand: 1 and in Tamil Nadu: 1. Target Uttarakhand and Tamil Nadu) trained on Total participants in Uttarakhand: 52, with 14 women (27%). achieved project management processes (target: Total participants in Tamil Nadu: 75, with 23 (30%) women. 20% women) Topics of the training: (i) introduction of the project, (ii) long- term project benefits, (iii) project implementation, other stakeholders, and project management processes. Target 13. Partnerships with at 2 NGOs Partner NGO in Uttarakhand: 1, Institute of Development Target (1/State) developed Support; in Tamil Nadu: 1, Entrepreneurship Development achieved and Innovation Institute. Target 14 (DMF Output 4.1). 15 Number of CBT established in Uttarakhand: 32, with total Target community-based tourism committees members: 200, women members: 183 (91%) achieved (CBT) (Uttarakhand: 10 CBT, Tamil Number of CBT established in Tamil Nadu: 14, with total Nadu: 5 CBT) established with equal members: 245, women members 205 (83%) participation of women) (DMF Output 4.1 At least 15 community- based societies operational in the management of natural and cultural heritage sites with equal representation of women) Target 15. 150 CBT members Number of CBT members trained in Uttarakhand: 183, with Target (Uttarakhand: 100, Tamil Nadu: 50) 106 (58%) women achieved sensitized on the objective of tourism Number of CBT members trained in Tamil Nadu: 102, with 55 plans and receive training on project (54%) women planning and implementation processes [target: 50% women]. 13. Ensure that all bidding documents • Total sensitization workshops conducted: 69. In Completed include a clause requiring Uttarakhand: 55 and Tamil Nadu: 14. Total Participants: contractors to adopt gender targets 50, with 20 women (40%). for the employment of laborers the • Topics of the workshops: (i) provisions on core labor provision of core labor standards standards in general conditions of the contract, (i) GOI’s (incl. equal wages for work of equal commitment to gender equality and core labor standards, Target value) (ii) rates of wages and conditions of labor, (iii) applicability achieved of labor laws, (iv) working hours, (v) facilities for staff and Target 16: labor, (vi) health and safety, (vii) forced and child labor, and • 2 (1/State) sensitization workshops (vii) non-discrimination and equal opportunity including held for contractors on gender- equal wages for work of equal value.7 The number of responsive targets and core labor bidding documents for civil work prepared: 36, standards. Uttarakhand: 16, and Tamil Nadu: 20. • In both states, women’s right to equal wages and non- discrimination was consistently promoted and closely monitored by EAs. Bidding documents were prepared per ADB Standard Bidding Document and Users’ Guide to Procurement of Works-Small Contracts and included clauses such as General Conditions of Contract-Section 7:31.1 (Forced Labor), 32.1 (Child Labor), 33.1 (Workers’ Organizations) and 34.1 (Non-discrimination and Equal Opportunity). DMF Output Qualitative Target not in the GAP
7 Participants’ profile: (I) contractors, (ii) construction managers, (iii) sites workers/laborers, (iv) women staff at PMU, and (v) design supervision and project management consultants’ staff.
40 Appendix 5
Activity 2 DMF Output 5.7. Gender- In both states, gender-inclusive promotional materials were Completed sensitive promotional designed to publicize project benefits, key features, materials, guidebooks, and employment opportunities, etc. for men and women. brochures on tourist • Uttarakhand: 2,000 gender-responsive brochures, destinations developed and guidebooks on tourist destinations were distributed in disseminated Tamil Nadu and Uttarakhand: • Tamil Nadu: 10,000 guidebooks on gender issues,5,000 manuals/books on hygienic food preparation were distributed. Also, 994 brochures and 482 brochures for the community families and women tourists were prepared and distributed among 9,888 people.in Tamil Nadu. Overall GAP assessment: Highly Successful.8
F. Evidence of Project Outcomes on Women
9. To substantiate or provide evidence to the practical and strategic gender benefits that women derived from the implementation of the GAP, the PCR team collected testimonials from select women beneficiaries (Boxes 1-3). These testimonials are classified into the GEWE areas in (para.6)
Box 1- Human Capital Development and economic empowerment I used to run a petty tiffin center at Othagamandalam (Ooty), Tamil Nadu. I was not contented with the meagre income I got from my business. Though I wished to expand my business, there was not much demand for the routine dishes that I would prepare. Moreover, my family members looked at me with low confidence. At that time, I learned about the training program organized by the Department of Tourism for small entrepreneurs at tourist destinations. Since Ooty is an attractive tourism destination where there is always a constant demand for healthy and tasty food, I attended a five-day extensive training program meant for aspirant entrepreneurs. I was trained to prepare millet-based nutritious meals as awareness on millet food and cookies was already spread, and its demand for millet food was in the increasing fold. When I joined that training, I had not known that my business venture would grow so fast. Soon after the training, I started serving different varieties of millet dishes at a reasonable cost. My new millet-based food items fascinated the tourists resulted in a spike in my income. The training not only taught me preparation of the new millet-based dishes but also built my capacity to handle the tourist-customers with a smile. My professional way of approaching the customers became my brand ambassador as an advertising promotion for my hotel. Now I am not the mere owner of a petty Tiffin center. I became a successful woman entrepreneur that was made possible only through the training I had undergone at EDII. My family members who taunted me when I expressed my desire to expand my Tiffin center now called me, "The Queen of Cook."
Source. Interview with women beneficiary Meena, Ooty, Tamil Nadu trained under the community participation component of the project in December 2019
8 2 out of 2 activities completed with 16 out of 16 quantitative targets achieved.
Appendix 5 41
G. Way Forward
10. The stories depicting practical and the strategic gender benefits from the project can inspire women’s participation in the tourism infrastructure development sector that was formerly limited due to lack of gender-mainstreaming mechanism and institutional environment for GEWE, as well as restrictive social mobility norms. This success can be replicated to make the development of the tourism infrastructure and services promotive of GEWE. For upscaling and sustainability of income-generating activities, the women who received skills enhancement training need further mentoring in the packaging, labeling, and marketing of products. The women beneficiaries in both states were optimistic about having regular sources of income with their learned skills. The project succeeded in building their confidence and creating a thirst for entrepreneurial and self-employment aspirations. However, a mechanism to provide hand- holding support, advance training, credit, and institutional linkages must also be strengthened. The project should more actively leverage other government schemes and programs and plan effective convergence to support these women beyond IDIPT.
Box 2- Amplifying the unheard voice: A Minority woman's contribution to strengthen the household livelihood "How can a woman help in our business? - was the immediate reply of my husband and my beloved father. We lived in a weak economic condition as our family livelihood entirely depended on the small hand cart (mobile cart) run by my husband and my father. Though the visitors to Tharangambadi beach were steadily increasing, which had the potential for seafood sales, my husband and my father sold vegetables and fresh fruit juice only on account of lack of in any other business development services. They were constrained to diversify their business. This tiny income was sufficient to run a big family like ours. At that time, I expressed my interest in contributing to the business. Still, I was outrightly turned down by my father and my husband as I, being a Muslim woman, did not know anything, and they felt that a woman's engagement to business was a stigma to the family. My low and lonely voice was not heard until the Department of Tourism, Government of Tamil Nadu organized training on different food items. I attended the training along with other women from our area on the preparation of different delicious seafood dishes. This time my voice was powerful and fearless. I explained the advantage of the training I underwent, and I had a vivid reply to the perennial question what can I do?. I started preparing different fish varieties. Our income rapidly increased due to the massive demand and constant crowd. We subsequently felt that that one small mobile cart was not enough to keep and sell all these dishes. Hence we bought another cart in which I started selling different fish varieties I instantly prepared. The beach visitors could not ignore my voice, "come to taste different fish varieties" And now my voice not only at my home, even in the seashore, can be heard. The municipality has asserted that it will provide a permanent shop in their shopping complex. I thank the Dept of Tourism for having made my family members hear my voice through their innovative training. Source. Interview with women beneficiary H.Thaslima Banu, Tharangambadi, Tamil Nadu trained under the the project in December 2019
42 Appendix 6
SAFEGUARD ASSESSMENT
I. Social Safeguard Assessment
A. Implementation Arrangements
1. A dedicated and qualified social cum community development specialist at project management unit (PMU) was engaged for implementing safeguards requirements who was further supported by three community development officers at the project implementation units (PIU) in Uttarakhand, while in Tamil Nadu, an additional charge was given to nodal officer for managing social safeguards related aspects. Both the executing agencies were further supported by the resettlement specialists of design and supervision consultants (DSC) and project management consultants (PMC) on an intermittent basis. The overall institutional arrangements for the management of social safeguards are assessed as adequate, commensurate with the social safeguards impacts in each state.
B. Implementation
2. The Project was categorized ‘C’ for the involuntary resettlement and Indigenous People aspects at appraisal in accordance with ADB's Safeguard Policy Statement (SPS). However, during the implementation, the category for involuntary resettlement was upgraded to B in April 2014 to reflect the resettlement (livelihood) impacts in one of the subprojects in Uttarakhand. The remaining subprojects in both states did not cause any land acquisition or temporary/permanent physical/economic displacement, and works were carried within the available government land and/or existing right-of-way. A resettlement plan for the subproject in Uttarakhand was developed to reflect the envisaged impacts and disclosed on the ADB website in May 2014. The category for Indigenous People continued to remain ‘C’ during implementation until the closure of the project. 3. In order to avoid the resettlement (livelihood) impacts, detailed consultations were held with Gram Panchayat and the local communities during the detailed design stage.1 With the help of modifications in design and rescheduling the subproject related activities during non- peak season, all identified impacts were avoided. A due diligence report was prepared to confirm that the impacts were avoided without coercion the people. In addition, the due diligence reports for 11 subprojects spread over three towns in Uttarakhand and 12 towns covering 19 subprojects in Tamil Nadu, confirming no social safeguards impacts were also prepared during the project implementation.
C. Information Disclosure, Grievance Redress, and Monitoring Reports
4. Information disclosure, participation, and periodic consultation activities for the implementation of social safeguards were adequately carried out. Such activities included: (i) distribution and dissemination of resettlement information in Uttarakhand among identified households in the local language (Hindi); (ii) regular consultative meetings with gram panchayat, identified households, and other stakeholders during project implementation; and (iii) disclosure of social safeguards documents.
1 gram panchayat is the local self-government at the village level in India.
Appendix 6 43
5. A grievance redress mechanism was established in accordance with the agreed resettlement framework to address any project-related grievances pertaining to social safeguards. The project authorities confirmed that no grievances related to social safeguards were received during the project implementation in both states. Both executing agencies monitored and reported on the social safeguards throughout the implementation of the Project. Overall, the implementation of social safeguards for this Project in both states is assessed to be in compliance with SPS.
D. Conclusion and Lessons Learnt
6. During the implementation, the resettlement (livelihood) impacts envisaged were avoided through technical modifications and rescheduling of the work during the non-peak season to comply with the ADB's key principle of avoiding and minimizing the resettlement impacts. Extensive consultations with gram panchayat and the local communities helped in the successful implementation and completion of the Project. The suggestions and guidance provided by the Missions from time to time were implemented by the project authorities, which supported in the proper implementation and documentation of social safeguard requirements.
II. Environment Safeguard Assessment
7. The ADB-approved environment category of the Project was ‘B’ in adherence with ADB’s SPS. During project preparation, six initial environmental examination (IEE) reports including environmental management and monitoring plans (EMMP) (three each for Uttarakhand and Tamil Nadu sub-projects) were developed. These IEE reports identified environmental impacts associated with and proposed detailed mitigation measures and monitoring plans. Necessary budget for implementation of mitigation measures were included in the approved costs of subprojects. An environmental assessment and review framework was also prepared to guide selection and evaluation of additional subprojects identified during implementation. A total of 27 IEE reports (14 for Tamil Nadu and 13 for Uttarakhand) covering 38 subprojects (19 contract packages each in both the states) during the implementation were prepared and disclosed on ADB website. However, one sub-project “Development of tourism infrastructure facilities at Assan Barrage, Dehradun–Lot II (UKIDIPT/DDN/02)” was dropped due to non-clearance from Forest Department. Further, four IEE reports (one for Tamil Nadu and three for Uttarakhand subprojects) were updated to reflect the change of location for some of the sub-components and though these did not result in any environment impacts. The various aspects associated with implementation of environmental safeguards have been detailed below.
A. Statutory Environmental Compliance
8. None of the subprojects required environmental clearance under the environmental regulations of India. The requisite forest clearance, permissions to cut trees, no objection certificates were obtained from the respective regulatory agencies. The works in forest areas commenced only after obtaining the requisite permissions. One subproject envisaged at appraisal, was dropped from the project due to environmental concerns during implementation.
B. Institutional Arrangements
9. Uttarakhand. An environment and social management cell (EMSC) was established within the PMU. A dedicated and qualified full-time environment safeguards specialist was available within PMU for environmental safeguards related aspects since commencement to closure of the Project. Further, a full time forest conservation specialist of the rank of Indian
44 Appendix 6
Forest Service to look after the forest related issues under the Project was also available within PMU. The EMSC was assisted by three PIUs, one PMC, and three DSCs. There was a total of four environment specialists (one from PMC and other three from DSCs having intermittent inputs responsible for EMMPs implementation under the Project, whose overall inputs during the Project implementation were limited. There were additional experts such as the forest conservation specialist, cultural heritage conservation specialist, and cultural heritage management expert within DSCs having intermittent inputs mobilized for the Project to support the environmental safeguards related activities under the project. 10. Tamil Nadu. An EMSC was not established within the PMU. The agreed institutional arrangements pertaining to environmental safeguards for the Project were a full-time (a) safeguards specialist (environment and social), forest conservation specialist, and cultural heritage conservation specialist within PMU; and (b) architect-conservation/landscape expert in two PIUs, whereas none of the above experts were deployed during the project implementation. Further, the manager (Administration) and assistant engineer were designated to handle environmental safeguards as an additional responsibility within the PMU. There were one PMC, and one DSC for the project. The proposed experts on intermittent basis for the project were (a) environment specialist, forest conservation specialist and eco-tourism planner, and cultural heritage conservation specialist within PMC; and (b) two environment specialists, and forest conservation specialist and eco-tourism Planner in DSC. Of all these experts, two environment specialists (one from PMC2 and other from the DSC)3 were mobilized with limited inputs for the project. The designated managers (as additional responsibility) from the PIUs were responsible for environment and social safeguards related aspects of the project. The civil works contractors had designated their existing site staff as environment and safety officers. These designated environment and social safety officers were trained by the environment experts of DSCs and PMC. 11. Overall, the institutional arrangements and required inputs from environment experts of DSC and PMC were limited which was supplemented by close support and handholding by ADB safeguard experts. The state of Tamil Nadu also provided inhouse dedicated specialists from line agencies.
C. Implementation of Environmental Management, Monitoring and Reporting
12. The contract documents included the EMMPs. During implementation, the civil works contractors generally implemented all measures required in the contracts. The project staff including implementing agencies, consultants, and contractors were provided training by the ADB to understand the requirements elaborated in the EMMPs. Further, separate focused training programs on environmental safeguards for the contractors were also provided by the consultants. The primary data of environmental baseline for the sub-projects were not generated during the environmental assessment and it was agreed upon that the testing of environmental parameters (ambient air quality, ambient noise levels, water, and soil qualities) would be carried out by the civil works contractors, prior to commencement of civil works. This was subsequently reflected in ADB-cleared EMMPs. Further, the generation of environmental baseline data were limited prior to commencement of the civil works and the testing of environmental parameters were improved with regular guidance from the ADB. A total of 14 semi-annual EMRs (eight for Uttarakhand since July 2014 to June 2018, and six for Tamil Nadu since January 2015 to December 2017) capturing implementation of environmental safeguards
2 Consumed inputs was 5.07 man-months, out of 10 man-months provided in the contract 3 Consumed inputs was 1.37 months, out of 10 man-months provided in the contract
Appendix 6 45
were submitted by respective executing agencies. The EMRs captured the status of regulatory compliances, implementation of EMMPs adequately and were disclosed on ADB website.
D. Grievance Management System
13. The grievance redress committees were established at PMU and PIUs levels and continued to be functional till closure of the project. The routine grievances registered at site offices related to environmental aspects were mainly pertaining to issues such as removal of debris, and backfilling of open pits, etc. The Project staff responded to these grievances in reasonable time and obtained feedback from the complainants about resolution prior to closing the grievance log. Complaints related to environmental safeguards were not received by the executing agencies.
E. Overall Improvement in Environmental Conditions
14. The project envisaged an environmentally and culturally sustainable and socially inclusive tourism development in Uttarakhand and Tamil Nadu. The targets enhanced economic growth and provision of livelihood opportunities for local communities through tourism infrastructure development with a focus on preservation and development of natural and cultural heritage and incidental services. The project supported the states of Uttarakhand and Tamil Nadu to develop the tourism sector as a key driver for economic growth. The site-specific tourism management plans were prepared and implemented by the project proponents with customize facilities for various target groups. With the project, there is improvement of basic urban infrastructure (such as construction/refurbishment of tourist accommodation, water supply, sanitation, road and environmental improvement) and incidental services (such as parking, landscaping, public toilets, street signage and lighting) at existing and emerging tourist destinations and gateways in Uttarakhand and Tamil Nadu. .
F. Lessons Learnt
15. To improve environmental performance of the project, the envisaged institutional arrangements for environmental safeguards should be fully functional till closure of the project. The PMU and PIUs were unfamiliar with ADB’s procedures and policies on environmental safeguards during the initial stages of the project and needed regular handholding by ADB through trainings at frequent intervals during the implementation of the project. Deployment of all personals within the PMU/PIU as per the envisaged institutional arrangements pertaining to environmental safeguards would have contributed to better environmental performance.
G. Status of Compliance with Environmental Loan Covenants
16. Both executing agencies complied with environmental loan covenants for the project.
46 Appendix 7
STATUS OF COMPLIANCE WITH LOAN COVENANTS Covenant Reference in Status of Compliance Loan & Project Agreement Tamil Nadu Uttarakhand Procurement of Goods, Works and Consulting Services General The procurement of Goods, Works and Consulting Services shall be subject to and governed by the LA, Schedule 4, Complied with Complied with Procurement Guidelines, and the Consulting Guidelines, respectively para 1 All terms used in this Schedule and not otherwise defined in this Loan Agreement have the meanings LA, Schedule 4, Complied with Complied with provided in the Procurement Guidelines and/or the Consulting Guidelines, as applicable. para 2 Goods and Works Except as ADB may otherwise agree, Goods and Works shall only be procured on the basis of the LA, Schedule 4, Complied with Complied with methods of procurement set forth below: para 3 (a) National Competitive Bidding; (b) Shopping; and (c) Force Account The methods of procurement are subject to, among other things, the detailed arrangements and LA, Schedule 4, Complied with Complied with threshold values set forth in the Procurement Plan. The Borrower may only modify the methods of para 4 procurement or threshold values with the prior agreement of ADB, and modifications must be set out in updates th the Procurement Plan. National Competitive Bidding Procurement under national competitive bidding procedures shall be consistent with the Procurement LA, Schedule 4, Complied with Complied with Plan that will include modifications or clarifications if any to such procedures as agreed as between para 5 the Borrower, the States and ADB to ensure consistency with the Procurement Guidelines. Any subsequent change to the agreed modifications and clarifications shall become effective only after written approval of such change by the Borrower, the State and ADB. Conditions for award of Contract A state shall not award contract for Subproject which involves environmental impacts until the State LA, Schedule 4, Complied with Complied with has incorporated the relevant provisions from the EMP into the Works contract. para 6 Consulting Services Except as ADB may otherwise agree, and except as set forth in the paragraph below, the State shall LA, Schedule 4, Complied with Complied with apply quality and cost based selection for selecting and engaging Consulting Services. para 7 The States shall apply the Consultant’s qualifications selection method for selecting and engaging LA, Schedule 4, Complied with Complied with Consulting Servicer collection of tourism statistics in accordance with, among other things, the para 8 procedures set forth in the Procurement plan.
Appendix 7 47
Covenant Reference in Status of Compliance Loan & Project Industrial or Intellectual Property Rights The States shall ensure that all Goods and Works procured (including without limitation all computer LA, Schedule 4, Complied with Complied with hardware, software and systems, whether separately procured or incorporated with other goods and para 9 (a) services procured) do not violate or infringe any industrial property or intellectual property right or claim of any third party. The States shall ensure that all contracts for the procurement of Goods and works contain LA, Schedule 4, Complied with Complied with appropriate representations, warranties and, if appropriate, indemnities from the contractors or para 9 (b) supplier with respect to the matters referred to in subparagraph (a) of this paragraph (a) of this paragraph The States shall ensure that all ADB-financed contracts with consultants contain appropriate LA, Schedule 4, Complied with Complied with representations,, warranties and, if appropriate, indemnities from the consultants to ensure that the para 10 Consulting Services provided do not violate or infringe any industrial property or intellectual property right or claim of any third party. ADB’s Review of Procurement Decisions Contract procured under international competitive bidding procedures and contracts for Consulting LA, Schedule 4, Complied with Complied with Services shall be subject to prior review by ADB, unless otherwise agreed between the Borrower, para 11 the relevant State, and ADB, and set forth in the Procurement Plan. Execution of Project; Financial Matter Implementation Arrangements The Borrower and the States shall ensure that the Project is implemented in accordance with the LA, Schedule 5, Complied with Complied with detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become para 1 effective only after approval of such change by the Borrower, the States and ADB. In the event of any discrepancy between the PAM on the one part and this Loan Agreement on the part, the provisions of this Loan Agreement shall prevail. The States shall ensure that the project management units (PMUs) and the project implementation LA, Schedule 5, Complied with Complied with units (PIUs) established for the Investment Program and the Project employ sufficient staff with para 2 adequate and relevant expertise in the field of project management, financial management, engineering, architectural design, eco-tourism, community tourism, heritage management, procurement, environmental and social safeguards implementation and marketing. The States shall keep the PMUs and the PIUs equipped with the necessary office space, facilities, equipment, support staff and management information systems for the entire duration on the Project. The Staff shall undertake best efforts to ensure that the same persons will continue to be assigned to key positions in the PMUs and the PIUs for the entire duration of the Project, including, without limitation, the heads of the PMUs and the PIUs
Counterpart Support
48 Appendix 7
Covenant Reference in Status of Compliance Loan & Project The States shall provide all counterpart funds, land and facilities required for timely and effective LA, Schedule 5, Complied with Complied with implementation of the Project, including, without limitation, any funds required to meet additional para 3 costs arising from design changes, price escalation in construction costs and/or unforeseen circumstances. Selection Criteria and Approval Process for Subprojects The States shall ensure that all Subprojects are selected and approved in accordance with the LA, Schedule 5, Complied with Complied with selection criteria and approval process stipulated in Schedule 4 to the FFA. para 4 Environment The Borrower and the States shall ensure that the preparation, design, construction, implementation, LA, Schedule 5, Complied with Complied with operation and decommissioning of each Subproject and all Project facilities comply with (a) all para 5 applicable laws and regulations of the Borrower and the States relating to environment, health, and safety; (b) the Environmental Safeguards; (c) the EARF; and (d) all measures and requirements set forth in the respective IEE and EMP, and any corrective or preventive actions set forth in a Safeguard Monitoring Report. Land Acquisition and Involuntary Resettlement The Borrower and the States shall ensure that all land and all rights-of-way required for a Subproject LA, Schedule 5, Complied with Complied with and the Project facilities are made available to the Works contractor in accordance with the schedule para 6 agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Borrower and the States relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; (c) the RF; and (d) all measures and requirements set forth in the respective RP, if any, and any corrective or preventative actions set forth in a Safeguards Monitoring Report Without limiting the application of the involuntary Resettlement Safeguards, the RF or any RP, the LA, Schedule 5, Complied with Complied with Borrower and the States shall ensure that no physical or economic displacement takes place in para 7 connection with a subproject until: a) Compensation and other entitlements have been provided to affected people in accordance with the relevant RP; and b) A comprehensive income and livelihood restoration program has been established in accordance with the relevant RP. Indigenous Peoples The Borrower and the States shall ensure that the Project does not have any impact on indigenous LA, Schedule 5, Complied with Complied with peoples within the meaning of the Safeguard Policy Statement. In the event that the Project does para 8 have any such impact, the Borrower and the relevant State shall ensure that the preparation, design, construction, implementation and operation of the relevant Subproject comply with (a) all applicable laws and regulations of the Borrower relating to indigenous peoples; (b) the Indigenous Peoples Safeguards; (c) the IPPF; and (d) all measures and requirements set forth in the respective IPP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.
Appendix 7 49
Covenant Reference in Status of Compliance Loan & Project Human and Financial Resources to Implement Safeguards Requirements The Borrower and the States shall make available necessary budgetary and human resources to fully LA, Schedule 5, Complied with Complied with implement the EMP, any RP and any IPP. para 9 Safeguards – Related Provisions in Bidding Documents and Works Contracts The State shall ensure that all bidding documents and contracts for Works contain provisions that LA, Schedule 5, Complied with Complied with require contractors to: para 10 a) comply with the measures and requirements relevant to the contractor set forth in the IEE, the EMPs, any RP and any IPP (to the extent they concern impacts on affected people during construction), and any corrective or preventive actions set out in a Safeguard Monitoring Report b) make available a budget for all such environmental and social measures; c) provide the relevant State with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP or the IPP (if any); and d) fully reinstate pathways, other local infrastructure, and agricultural land to at least their pre- project condition upon the completion of construction. Safeguard Monitoring and Reporting The States shall do the following: LA, Schedule 5, Complied with Complied with a) submit semi-annual Safeguard Monitoring Reports to ADB and disclose relevant information para 11 from such reports to affected persons promptly upon submission; b) if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, any RP or any IPP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and c) report any breach of compliance with the measures and requirements set forth in the EMP, and RP or any IPP promptly after becoming aware of the breach. Prohibited List of Investments The Borrower and the States shall ensure that no proceeds of the Loan are used to finance any LA, Schedule 5, Complied with Complied with activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS. para 12
Social Matters The States shall ensure that civil works contracts under the projects follow all applicable labor laws LA, Schedule 5, Complied with Complied with of the Borrower and the States and that these further include provisions to the effect that para 13 contractors; (i) carry out HIV/AIDS awareness programs for labor and disseminate information at worksites on risks of sexually transmitted diseases and HIV/AIDS as part of health and safety measures for those employed during construction; and (ii) follow and implement all statutory
50 Appendix 7
Covenant Reference in Status of Compliance Loan & Project provisions on labor (including not employing or using children as labor, equal pay for equal work), health, safety, welfare, sanitation, and working conditions. Such contracts shall also include clauses for termination in case of any breach of the stated provisions by the contractors. Gender and Development The States shall ensure that the Project considers gender issues at all appropriate stages of the LA, Schedule 5, Complied with Complied with Project particularly during design, and that the Project will be carried out in accordance with ADB's para 14 Policy on Gender and Development (1998) and the Gender Action Plan developed for the Project Governance The Borrower, the State and the relevant implementing agency shall ensure that all contracts LA, Schedule 5, Complied with Complied with financed by ADB in connection with the Project shall include provisions specifying the right of ADB para 15 to review and examine the records and accounts of the State, or relevant implementing agency and all the contractors, suppliers, consultants, and other service providers as they relates to the Project. The Borrower, the State and relevant implementing agency shall allow and assist ADB’s representatives to carry out random spot checks on the work in progress and utilization of funds for the project. Specific Actions Each State shall ensure that the following actions are undertaken in a timely manner: LA, Schedule 5, Partly Partly a) all consents and approvals required for implementation of the Subprojects are obtained in para 16 Complied. Complied. accordance with applicable laws and regulations of the Borrower and the State, including, Following was Following without limitation, (i) any consents or approvals from the Archaeological Survey of India or its not complied: were not branches within the State, where applicable, for works on or around archaeological or g) set of complied: heritage sites, and (ii) any consents or approvals from any other agencies or third parties that benchmarks on f) as mobility have any claim or authority over the site of a Subproject; the delivery of plans were not b) the Subprojects and business opportunities associated with the Subprojects shall be basic urban prepared announced on the websites of the relevant State agencies, together with pertinent information infrastructure g) set of in relation to goods and services procured for the Subprojects; and services, at benchmarks c) the relevant Urban Local Body or other agencies concerned provide and maintain adequate each tourist on the delivery basic infrastructure and services such as electricity, water supply, sewage and solid waste destination or of basic urban management at each tourist destination for which investments will be financed under the gateway were infrastructure Project; not prepared. and services, d) admission and user fees for tourist facilities rehabilitated or created under the Project are set at each tourist at levels that are sufficient to make their operation financially sustainable or, where this is not destination or feasible, adequate funds are provided to meet any shortfall between the costs and revenues gateway were for the operation and maintenance of the relevant facilities; prepared. e) the State takes appropriate measures, including levy of user charges/taxes, introduction of outsourcing and other contracting models, to ensure financial sustainability and transparency in the management of the Investment Program as a whole.
Appendix 7 51
Covenant Reference in Status of Compliance Loan & Project f) the State prepares mobility plans for major tourist destinations, as required; g) No later than 31 December 2012, the State: (a) has developed guidelines for effective and accurate data collection of tourism-related statistics relevant to monitor the performance indicators developed for the Investment Program; (b) has developed a set of benchmarks on the delivery of basic urban infrastructure and services, including benchmarks to be monitored by local communities, at each tourist destination or gateway for which investments will be financed under the Project; and (c) ensure that each Urban Local Body where investments will be financed under the Project shall have commenced the collection of relevant data. h) the State develops and adopts a tourism policy to mainstream: (i) balanced distribution of economic opportunities across the state through community-based and eco-tourism development with an introduction of relevant monitoring indicators; (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 an additional means of cost recovery is established. Use of Proceeds of the Loan (a) The Borrower shall (i) make the proceeds of the loan available to the States and (ii) shall cause LA, Article III Complied with Complied with the State of Uttarakhand to make available to UTDB the amount of the Loan allocated to the State of Section 3.01 Uttarakhand pursuant to Schedule 3 to this Loan Agreement, on terms and conditions mutually agreeable to ADB and the Borrower. The Borrower shall cause the States and UTDB to apply the proceeds of the Loan to the financing of expenditures on the Project in accordance with the provisions of this Loan Agreement and the Project Agreements. (b). The Borrower shall cause the proceeds of the Loan to be applied to the financing of expenditures on the Project in accordance with the provisions of this Loan Agreement and Project Agreement. The proceeds of the Loan shall be allocated and withdrawn in accordance with the provisions of LA, Article III, Complied with Complied with Schedule 3 to this Loan Agreement, as such Schedule ,may be amended from time to time by Section 3.02 agreement between the Borrower and ADB. Except as ADB may otherwise agree, the Borrower shall procure or cause to be procured, the items LA, Article III, Complied with Complied with of expenditure to be financed out of the proceeds of the Loan in accordance with the provisions of Section 3.03 Schedule 4 to this Loan Agreement. ADB may refuse to finance a contract where any such item has not been procured under procedures substantially in accordance with those agreed between the Borrower and ADB or where the terms and conditions of the contract are not satisfactory to ADB. Except as ADB may otherwise agree, the Borrower shall cause all items of expenditure financed out LA, Article III, Complied with Complied with of the proceeds of the Loan to be used exclusively in the carrying out of the Project. Section 3.04 The loan closing date for the purposes of Section 9.02 of the Loan regulations shall be 31 December LA, Article III, Complied with Complied with 2017 or such other date as may from time to time be agreed between the Borrower and ADB. Section 3.05 Particular Covenants
52 Appendix 7
Covenant Reference in Status of Compliance Loan & Project (a) The Borrower shall cause the Project to be carried out with due diligence and efficiency and LA, Article IV Complied with Complied with in conformity with sound applicable technical, financial business, and development practices; section 4.01 (b) In carrying out of the Project and operation of the Project facilities, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement and Project Agreements The Borrower shall make available, or cause to be made available, promptly as needed, the funds, LA, Article IV Complied with Complied with facilities, services, and other resources, as required, in addition to the proceeds of the Loan, for section 4.02 carrying out of the Project. The Borrower shall ensure that the activities of its departments and agencies with respect to the LA, Article IV Being Being carrying out of the Project and operation of the Project facilities are conducted and coordinated in section 4.03 Complied Complied accordance with sound administrative policies and procedures. The Borrower shall enable ADB’s representatives to inspect the Project, the Goods and Works, and LA, Article IV Complied with Complied with any relevant records and documents. section 4.04 The Borrower shall take all actions which shall be necessary on its part to enable the States to LA, Article IV Complied with Complied with perform their obligations under the Project Agreements, and shall not take or permit any action section 4.05 which would interfere with the performance of such obligations. (a) In relation to the Project, the Borrower shall exercise its rights under the financing LA, Article IV Complied with Complied with arrangements referred to in Section 3.01 of this Loan Agreement in a such manner as to protect the section 4.06 interests of the Borrower and ADB and to accomplish the purpose of the Loan; and (b) In relation to the Project, no rights or obligations under the aforementioned financing arrangements shall be assigned, amended, abrogated or waived without prior notice to ADB Particular Covenants in Project Agreement The State shall carry out the Project with due diligence and efficiency, and in conformity with sound PA, Article II, Complied with Complied with applicable technical, financial, business, and development practices. Section 2.01. (a) In the carrying out of the Project and operation of the Project facilities, the State shall perform all PA, Article II, Complied with Complied with obligations set forth in the Loan Agreement to the extent that they are applicable to the State, and all Section 2.01. obligations set forth in the Schedule to this Project Agreement. (b) The State shall make available, promptly as needed, and on terms and conditions acceptable to PA, Article II, Complied with Complied with ADB, the funds, facilities, services, land and other resources as required, in addition to the proceeds Section 2.02. of the Loan, for the carrying out of the Project. In the carrying out of the Project, the State shall employ competent and qualified consultants and PA, Article II, Complied with Complied with contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB. Section 2.03. (a) Except as ADB may otherwise agree, the State shall procure all items of expenditures to be financed PA, Article II, Complied with Complied with out of the proceeds of the Loan in accordance with the provisions of Schedule 4 to then Loan Section 2.03.
Appendix 7 53
Covenant Reference in Status of Compliance Loan & Project Agreement. ADB may refuse to finance a contract where any such item has not been procured (b) under procedures substantially in accordance with those agreed between the Borrower and ADB or where the terms and conditions of the contract are not satisfactory to ADB. The State shall carry out the Project in accordance with plans, design standards, specifications, work PA, Article II, Complied with Complied with schedules and construction methods acceptable to ADB. The State shall furnish, or cause to be Section 2.04. furnished, to ADB, promptly after their preparation, such plans, design standards, specifications and work schedules, and any material modifications subsequently made therein, in such detail as ADB shall reasonably request. The State shall take out and maintain with responsible insurers, or make other arrangements PA, Article II, Complied with Complied with satisfactory to ADB for, insurance of Project facilities to such extent and against such risks and in Section 2.05. such amounts as shall be consistent with sound practice. (a) Without limiting the generality of the foregoing, the State undertakes to insure, or cause to be PA, Article II, Complied with Complied with insured, the Goods to be imported for the Project against hazards incident to the acquisition, Section 2.05. transportation and delivery thereof to the place of use or installation, and for such insurance any (b) indemnity shall be payable in a currency freely usable to replace or repair such Goods. The State shall maintain, or cause to be maintained, records and accounts adequate to identify the PA, Article II, Complied with Complied with items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the Section 2.06. Project, to record the progress of the Project (including the cost thereof) and to reflect, in accordance with consistently maintained sound accounting principles, its operations and financial condition. ADB and the State shall cooperate fully to ensure that the purposes of the Loan will be PA, Article II, Complied with Complied with accomplished. Section 2.07. (a) The State shall promptly inform ADB and the Borrower of any condition which interferes with, or PA, Article II, Complied with Complied with threatens to interfere with, the progress of the Project, the performance of its obligations under this Section 2.07. Project Agreement, or the accomplishment of the purposes of the Loan. (b) ADB and the State shall from time to time, at the request of either party, exchange views through PA, Article II, Complied with Complied with their representatives with regard to any matters relating to the Project, the State and the Loan. Section 2.07. (c) In so far as it relates to the Project, the State shall furnish to ADB all such reports and information as PA, Article II, Complied with Complied with ADB shall reasonably request concerning (i) the Loan and the expenditure of the proceeds thereof; Section 2.08. (ii) the items of expenditure financed out of such proceeds; (iii) the Project; (iv) the administration, (a) operations and financial status of the State; and (v) any other matters relating to the purposes of the Loan. Without limiting the generality of the foregoing, the State shall furnish to ADB periodic reports on the PA, Article II, Complied with Complied with execution of the Project and on the operation and management of the Project facilities. Such reports Section 2.08. shall be submitted in such form and in such detail and within such a period as ADB shall reasonably (b) request, and shall indicate, among other things, progress made and problems encountered during
54 Appendix 7
Covenant Reference in Status of Compliance Loan & Project the period under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following period. Promptly after physical completion of the Project, but in any event not later than 3 months thereafter PA, Article II, Complied with Complied with or such later date as ADB may agree for this purpose, the State shall prepare and furnish to ADB a Section 2.08. report, in such form and in such detail as ADB shall reasonably request, on the execution and initial (c) operation of the Project, including its cost, the performance by the State of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan. The State shall (i) maintain separate accounts for the Project and for its overall operations; (ii) have PA, Article II, Partly complied. A total of 12 such accounts and related financial statements (balance sheet, statement of income and expenses, Section 2.09. annual audited project financial and related statements) audited annually, in accordance with appropriate auditing standards statements (APFS) from FYE consistently applied, by independent auditors whose qualifications, experience and terms of 2013 to 2019 were submitted reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any by the governments of Tamil event not later than 6 months after the close of the fiscal year to which they relate, certified copies of Nadu and Uttarakhand, with six such audited accounts and financial statements and the report of the auditors relating thereto reports (43%) received on time (including the auditors' opinion on the use of the Loan proceeds and compliance with the financial and the remaining eight (57%) covenants of the Loan Agreement and the Project Agreement as well as on the use of the received with delays averaging procedures for imprest account and statement of expenditures), all in the English language. The 3.02 months from deadline. State shall furnish to ADB such further information concerning such accounts and financial The auditor issued an statements and the audit thereof as ADB shall from time to time reasonably request. unqualified or clean opinion for all APFS including the required additional opinion on use of funds, imprest (advance), and SOE procedures.. Unresolved audit issues by closing include non-issuance of management letter from Uttarakhand, notes to the financial statements were lacking for significant accounting policies, reconciliation with LFIS and sources of funds was not segregated for this loan for Uttarakhand. The State shall enable ADB's representatives to inspect the Project, the Goods and Works and any PA, Article II, Complied with Complied with relevant records and documents. Section 2.10. In relation to the Project, the State shall, promptly as required, take all action within its powers to PA, Article II, Complied with Complied with maintain its existence, to carry on its operations, and to acquire, maintain and renew all rights, Section 2.11. properties, powers, privileges and franchises which are necessary in the carrying out of the Project or (a)
Appendix 7 55
Covenant Reference in Status of Compliance Loan & Project in the conduct of its operations. In relation to the Project, the State shall at all times conduct its operations in accordance with sound PA, Article II, Complied with Complied with applicable technical, financial, business, development and operational practices, and under the Section 2.11. supervision of competent and experienced management and personnel. (b) In relation to the Project, the State shall at all times operate and maintain its plants, equipment and PA, Article II, Complied with Complied with other property, and from time to time, promptly as needed, make all necessary repairs and renewals Section 2.11. thereof, all in accordance with sound applicable technical, financial, business, development, (c) operational and maintenance practices. Except as ADB may otherwise agree, the State shall not sell, lease or otherwise dispose of any of its PA, Article II, Complied with Complied with assets which shall be required for the efficient carrying on of its operations or the disposal of which Section 2.12. may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement. Except as ADB may otherwise agree, the State shall apply the proceeds of the Loan to the financing PA, Article II, Complied with Complied with of expenditures on the Project in accordance with the provisions of the Loan Agreement and this Section 2.13. Project Agreement, and shall ensure that all items of expenditures financed out of such proceeds are used exclusively in the carrying out of the Project. Except as ADB may otherwise agree, the State shall duly perform all its obligations under the PA, Article II, Complied with Complied with financing arrangements referred to in Section 3.01 of the Loan Agreement, and shall not take, or Section 2.14. concur in, any action which would have the effect of assigning, amending, abrogating or waiving any rights or obligations of the parties under such financing arrangements. The State shall promptly notify ADB of any proposal to amend, suspend or repeal any provision of its PA, Article II, Complied with Complied with constitutional documents or the constitutional documents of IA, which, if implemented, could Section 2.15. adversely affect the carrying out of the Project or the operation of the Project facilities. The State shall afford ADB an adequate opportunity to comment on such proposal prior to taking any affirmative action thereon. ADB = Asian Development Bank; EMP = Environmental Management Plan; LA = loan agreement; PA = project agreement; PMU = Project Management Unit; PIU = Project Implementation Unit; PPP = public private partnership; RP = Resettlement Plan.
56 Appendix 8
ECONOMIC AND FINANCIAL ANALYSIS A. Re-evaluation scope, methodology and data input
1. The economic internal rates of return (EIRR) was carried out to ascertain efficiency of the investments in the subprojects under the tranche 2 (the project). The MFF was designed to implement subprojects under four projects in the states of Himachal Pradesh, Punjab, Tamil Nadu and Uttarakhand spread over the MFF and financed under four separate tranches.1 The economic evaluation for investments in the destination clusters of Tamil Nadu and Uttarakhand under the project were carried out at the appraisal and base economic internal rate of return (EIRR) of the subprojects were above the economic opportunity cost of capital (EOCC) of 12% and thus all were assessed economically viable. Economic re-evaluation at closure of the project included EIRR of the two subprojects at Tamil Nadu and Uttarakhand and sensitivity analysis at (i) 20% reduction of future benefits, and (ii) 20% increase in operation and maintenance (O&M) expenditure.
2. Financial analysis assessed the ability of the two state governments and the executing agencies (also the line agencies) responsible to operate the created tourism assets sustainably to meet its operation and maintenance (O&M) costs out of its revenue streams and the allocated budget provisions. The executing agencies include Department of Tourism and Culture, government of Tamil Nadu and Department of Tourism, government of Uttarakhand.2 As the project was not designed for cost recovery and were considered as “non-revenue generating” or “non-commercial” subprojects, operating ratios were calculated for the state governments, and a review of the overall finances of the line agencies to assess their institutional capacities to meet allocated O&M costs were undertaken. The adopted approach for the financial analysis was similar at both appraisal and at completion of the project.
3. The economic and financial analysis was based on ADB’s Guidelines on the related aspects.3 Detailed assumptions for the analyses narrated separately. Data from the respective state governments, and the executing agencies, project documents, the project completion report prepared by the executing agencies were used for the reevaluation. Information about tourist flows was obtained from the respective executing agencies. Tourist’s expenditure obtained from the reports prepared by the consultant for tourist statistics in Uttarakhand and from a similar survey conducted by Government of India for Tamil Nadu.4 Project cost was derived from the actual disbursement summary for each contract package, and the executing agencies. Project completion review mission was not fielded due to operational constraints arising out of the ongoing coronavirus pandemic (COVID-19). As a result, discussions were not held with the beneficiaries. The project completion report preparation team used data and feedback provided by the executing agencies.
1 Tranche 2 (Loan-2833-IND) and Tranche 4 (Loan-3717-IND) under the MFF were for investments in states of Tamil Nadu and Uttarakhand. Tranche 1 (Loan-2676-IND) and Tranche 3 (Loan-3223-IND) was designed for development of tourism infrastructure in identified destination clusters of Himachal Pradesh and Punjab under the MFF. 2 All these agencies are considered a general government sector unit (GGSU) in line with the explanation in para. 2.4, page 4 of the Financial Analysis and Evaluation Technical Guidance Note (2019). 3 ADB. 2009. Financial Due Diligence: A Methodology Note. Manila; ADB. 2019. Financial Analysis and Evaluation: Technical Guidance Note. Manila; ADB. 2017. Guidelines for the Economic Analysis of Projects. Manila; and ADB. 2007. Tourism for Pro-Poor and Sustainable Growth: Economic Analysis of Tourism Projects. Manila. 4 For Uttarakhand, Datamation Consultants Pvt. Ltd was appointed and Nielsen India Pvt Ltd was appointed by Government of India for Tamil Nadu.
Appendix 8 57
B. Data Input for Valuation of Economic Costs and Benefits
4. The subprojects in the destination clusters of the two states were designed for inclusive economic growth and provision of livelihood opportunities for local communities in the tourism sector through tourism infrastructure development. The subproject focused on preservation and development of natural and cultural heritage, and incidental services including municipal services. At the end of the project, costs were for (i) urban infrastructure and service improvement (55.9%), connectivity improvement (0.3%), (iii) quality enhancement of natural and cultural attractions (5.6%), (iv) community-based activities (0.0%), (v) capacity development, community participation and project management (20.8%), (vi) financing charges (3.2%), and (vii) taxes and duties (14.3%).
5. The financial value of subproject costs (in ₹million) included the disbursements recorded in mainframe and the local costs incurred by the state governments until 06 December 2018.5 At completion, the financial costs for subprojects (including all physical work, goods and equipment under the five components, consulting charges, incremental administration cost, taxes, and duties) concluded for (i) Tamil Nadu at ₹923.47 million, and (ii) Uttarakhand at ₹1,903.75 million.6
6. Financial costs without taxes and duties converted to economic costs as shown in table 8.1. The conversion factors include (a) shadow wage rate factor (SWRF) used to value the economic price of local labour calculated for the states separately as they are geographically apart and labour laws, availability of labour, and minimum wage rate differ for each state, 7 (b) the shadow exchange rate factor (SERF) taken for traded goods and services and standard conversion factor (SCF) were also applied to convert the financial cost to economic cost.8 Parameters assumed are drawn from the project documents, and the project completion report prepared by the respective executing agencies. The economic viability assumed replacement costs to be at 15% and O&M costs at 10% of the total cost of project assets. The income multiplier for direct net value added of tourism to the local economy through additional spending of the two states assumed to be 0.39 to maintain parity and for comparison with appraisal estimates. Table 8.1: Determination of Economic Costs for Subprojects at Completion Parameters Tamil Nadu Uttarakhand Financial capital costs for works and goods derived without taxes and 441.72 984.34 duties (₹million) SWRF– Unskilled local labour assumed 80% 0.59 0.57 SERF- traded goods and services assumed 10% 1.03 1.03 SCF 1.00 1.00 Economic capital costs derived (₹million) 314.77 684.00
5 The loan closing was on 30 June 2018 and the loan was financially closed on 06 December 2018. 6 Excluding the interest cost during implementation.. 7 Different shadow wage rate factors (SWRF) were applied to reflect the surplus of unskilled labor in the two different subproject areas as they are geographically separate and wage rates are guided by different legislation of the State. (Source:https://nrega.nic.in/netnrega/writereaddata/Circulars/2386Wagerate_Gazette1920.pdf, https://cms.tn.gov.in/sites/default/files/go/labemp_e_62_2017_2D_pdf.pdf https://labour.uk.gov.in/files/310(1)-Nirman_Se_related.PDF) 8 ADB. 2004. Shadow Exchange Rates for Project Economic Analysis: Toward Improving Practice at the Asian Development Bank. Manila; and Reserve Bank of India. 2019. Handbook of Statistics on the Indian Economy 2018- 19. Mumbai
58 Appendix 8
Economic O&M costs derived (10% of capital costs and adjusted for 434.41 943.94 allowances (15%)a SWRF, SERF, and SCF) (₹million) Economic replacement costs derived (15% of capital costs and 54.30 117.99 adjusted for allowances (15%)a, SWRF, SERF, and SCF) (₹million) Source: ADB estimates; Average conversion rate used for calculation $1 =₹70, where applicable; a Adjustment for allowances assumed to include probable cost for design and quality assurance, benefit monitoring, and incremental administration during O&M and replacement.
7. The valuation of economic benefits for the two subprojects at completion is provided in table 8.2.
Table 8.2: Determination of Economic Benefits for Subprojects at Completion Particulars Tamil Nadu Uttarakhand Incremental Income from Tourist Days Spent (₹Million) 1,321.39 3,272.59
Assumption: Incremental domestic and foreign tourists Per capita domestic Per capita domestic tourist spending tourist spending ₹2,450/day and foreign ₹1,952/day and foreign tourists ₹4,300/day a tourists ₹6,100/day b Incremental Income from Tourist Spent (₹Million) 577.73 663.66 Assumption: Incremental domestic and foreign tourists Per capita average of Per capita average of spending ₹1250 per day c spending ₹1993.48 per day d Revenue from sales tax on additional spending by 13.71 4.72 foreign tourists (₹Million) Assumption: 20% sales tax on the additional annual foreign 20% e 20% f tourist spending a page 18, table 34 of Nielsen India Pvt. Ltd. Survey for Government of India. b table 2.7 at page 74 for FOREIGN and table 3.7 at page 103 for DOMESTIC of the CTS Report by Datamation Pvt. Ltd. c page 18, table 34 of Nielsen India Pvt. Ltd. Survey for Government of India and estimates at completion. d table 2.7 at page 74 for FOREIGN and table 3.7 at page 103 for DOMESTIC of the CTS Report by Datamation Pvt. Ltd and estimates at completion. e, f Economic Analysis, Appendix 7, Periodic Financing Report.
C. Economic Evaluation
I. At Appraisal
8. The selection criteria for the subprojects require an EIRR exceeding EOCC of 12% for investments under the project for the two subprojects at Tamil Nadu (base EIRR 18.8%) and Uttarakhand (base EIRR 18.2%). The economic net present value (ENPV) for the subproject, assessed during loan appraisal in 2011, were positive for both Tamil Nadu ($6.46 million) and Uttarakhand ($6.69 million) applying discount rates of 12%. Sensitivity analysis indicated that EIRR was most sensitive to a decrease in project benefits by 20% due to lower tourist arrivals or lower spending than projected and delay in project completion, though EIRR remained above 12% in all sensitivity analyses except for the analysis when all four sensitivities combined. Project costs and O&M expenditures adjusted for unskilled labor cost (shadow wage rate at 0.75). Operation and maintenance cost were also a part of economic costs. Economic benefits were assumed as, (i) additional spending by tourists as a result of increases in the number of tourists, (ii) additional spending as a result of extended length of stay per visit, and (iii) revenues from sales tax generated from the additional spending of international tourists (20% of additional
Appendix 8 59
spending).9 The income multiplier for direct net value added of tourism to the local economy through additional spending of the two states assumed to be 0.39.10
II. At Completion
9. The approach used during appraisal was applied for the recalculation of the EIRR of interventions at completion of the project and compared with EOCC of 12%. For calculating the growth of tourist arrivals (domestic and foreign), the compounded annual growth rate of the tourist arrivals was used for projecting the tourist growth based on the historical data shared by the executing agencies and as available from the tourism departments of the two states.11 Tourist growth in the two states were calculated and prorated to estimate the total tourist flow at destination clusters of the respective states on an usual scenario. Incremental tourist (international and domestic) growth for the interventions at the destination clusters were assumed for Tamil Nadu at 0.1 and Uttarakhand at 0.4. The economic viability of the subprojects was evaluated over a period of 20 years from the base year (2012). All additional spending has been adjusted for direct net value added to the region by the assumed income multiplier.12
10. The analysis did not quantify other benefits that are difficult to measure due to inadequate data. Such non-quantified benefits include (i) savings in operating costs of vehicles using the improved stretches of roads considered under connectivity improvement; (ii) time savings for villagers and locals using improved connectivity; (iii) increased public health due to supply of basic services like improved sanitation and better parking facilities; and (iv) improved access by locals in the surrounding communities for improved economic livelihood. These indirect and direct benefits could not be quantified though qualitative assessments during the project completion report preparation demonstrate their contribution in improving livelihood, environment and quality of life within the subproject areas.
III. Analysis and re-evaluation of Findings
11. EIRR is rated as efficient for the subprojects in the two states. The summary of EIRR for the subprojects at appraisal and compared at completion is in table 8.3.
9 Improvements in sanitation, solid waste management, and roads that also benefitted the local communities was excluded from the analysis at appraisal (and during reevaluation at the Tranche 2 2 close) as it is difficult to segregate benefits to the local communities and tourists. 10All appraisal information sourced from Supplementary Appendix on Economic Analysis to Periodic Financing Request of Infrastructure Development Investment Program for Tourism, Tranche 2. 11 Based on the tourist arrival data in the project start year and at completion, the compounded annual growth rate was used to calculate the total tourist flow in the two states. The analysis assumed (based on discussions with the executing agencies, and after understanding the pattern of tourist interest) that 10% of total tourists in Tamil Nadu and 40% of total tourists in Uttarakhand would visit the project areas every year. 12 ADB. 2007. Tourism for Pro-Poor and Sustainable Growth: Economic Analysis of Tourism Projects. Manila. The technical note explains the use of “income multiplier” for valuation of tourism benefits. Income multiplier is used to determine the direct net value added to the region because of the changes in economic activities (gross domestic product, jobs etc.) within a geographic region. In the absence of more accurate regional multipliers for Tamil Nadu and Uttarakhand at project appraisal, the national multiplier for direct net value added is applied to estimate tourism impacts on the states. At project appraisal, for direct effect, the national multiplier for direct net value added was 0.3854. (source: Dr. Raveendran, G. 1993. Tourism Planning and Measurement Methods, PH.D. Thesis, Srinagar Garhwal: HNB Garhwal University, refer Appendix 7, Economic Analysis of Tranche 2). At completion, the same income multiplier used to keep parity in comparison between appraisal and completion.
60 Appendix 8
Table 8.3: Summary of EIRR at Completion Subproject EIRR at ENPV at EIRR at EIRR at EIRR at Appraisal Completion Completion Completion Completion20% (₹million) (Base) (20% increase in Reduction of (O&M) Benefits) expenditure Subcomponent - 18.8% 81.89 17.59% 13.11% 16.40% Investment in Destination Cluster in Tamil Nadu Subcomponent - 18.2% 185.56 18.03% 13.43% 16.84% Investment in Destination Cluster in Uttarakhand Consolidated Tranche 2 Not assessed 267.45 17.89% 12.80% 16.07%
EIRR = economic internal rate of return, ENPV = economic net present value
12. The discounted cash flow statement for the two subcomponents and for the consolidated project is shown in tables 8.4, 8.5 and 8.6.
13. Considering the expected tourist arrivals and spending by the domestic and foreign tourists at the destination clusters, the economic re-evaluation showed favorable results. The recalculated EIRR for both the subprojects are above the 12% threshold considered for economic viability at appraisal and it is above the base EIRR computed at appraisal for Uttarakhand and lower for Tamil Nadu.13 The economic net present value (ENPV) for the subprojects at completion are positive applying 12% discount rate.
13 The reduction in EIRR for Tamil Nadu was due to reduced cost at completion in comparison with cost at appraisal.
Appendix 8 61
Table 8.4: Discounted Cashflow Statement of Tamil Nadu Subprojects at Completion (₹million) Revenue Incremental from sales Incremental Economic Income tax on Total Net Replacement Total Income from Sl. No. Year Cost: O&M Cost from additional Economic Economic Cost Cost Tourist Days CAPEX Tourist spending by Benefits Benefits Spent Spent foreign tourists 1 2011 ------2 2012 ------3 2013 2.59 - - 2.59 - - - - (2.59) 4 2014 3.49 - - 3.49 - - - - (3.49) 5 2015 72.37 - - 72.37 - - - - (72.37) 6 2016 93.06 - - 93.06 - - - - (93.06) 7 2017 84.15 - - 84.15 - - - - (84.15) 8 2018 59.11 - - 59.11 - - - - (59.11) 9 2019 - 36.20 - 36.20 49.62 21.48 0.73 71.82 35.62 10 2020 - 36.20 - 36.20 56.35 24.44 0.78 81.57 45.37 11 2021 - 36.20 - 36.20 64.00 27.80 0.85 92.65 56.45 12 2022 - 36.20 - 36.20 72.70 31.63 0.91 105.24 69.04 13 2023 - 36.20 - 36.20 82.59 35.98 0.99 119.56 83.36 14 2024 - 36.20 - 36.20 93.84 40.94 1.06 135.84 99.64 15 2025 - 36.20 54.30 90.50 106.63 46.58 1.15 154.36 63.86 16 2026 - 36.20 - 36.20 121.18 53.00 1.24 175.42 139.22 17 2027 - 36.20 - 36.20 137.72 60.31 1.33 199.37 163.16 18 2028 - 36.20 - 36.20 156.54 68.62 1.44 226.60 190.40 19 2029 - 36.20 - 36.20 177.94 78.09 1.55 257.58 221.38 20 2030 - 36.20 - 36.20 202.28 88.86 1.68 292.82 256.62
Total 314.77 434.41 54.30 803.47 1,321.39 577.73 13.71 1,912.83 1,109.36
ENPV @ 12% 81.89
EIRR 17.59%
62 Appendix 8
Table 8.5: Discounted Cashflow Statement of Uttarakhand Subprojects at Completion (₹million) Revenue Incremental Incremental from sales Economic Income Income tax on Total Net O&M Replacement Total Sl. No. Year Cost: from from additional Economic Economic Cost Cost Cost CAPEX Tourist Tourist spending by Benefits Benefits Days Spent Spent foreign tourists 1 2011 ------2 2012 1.29 - - 1.29 - - - - (1.29) 3 2013 17.02 - - 17.02 - - - - (17.02) 4 2014 50.64 - - 50.64 - - - - (50.64) 5 2015 128.13 - - 128.13 - - - - (128.13) 6 2016 186.32 - - 186.32 - - - - (186.32) 7 2017 114.45 - - 114.45 - - - - (114.45) 8 2018 186.16 - - 186.16 - - - - (186.16) 9 2019 - 78.66 - 78.66 - - - - (78.66) 10 2020 - 78.66 - 78.66 242.18 49.05 0.41 291.64 212.98 11 2021 - 78.66 - 78.66 251.95 51.05 0.41 303.41 224.75 12 2022 - 78.66 - 78.66 262.12 53.12 0.42 315.66 236.99 13 2023 - 78.66 - 78.66 272.70 55.28 0.42 328.40 249.74 14 2024 - 78.66 - 78.66 283.71 57.52 0.42 341.66 263.00 15 2025 - 78.66 - 78.66 295.17 59.86 0.43 355.46 276.80 16 2026 - 78.66 - 78.66 307.10 62.29 0.43 369.82 291.16 17 2027 - 78.66 - 78.66 319.51 64.82 0.44 384.76 306.10 18 2028 - 78.66 - 78.66 332.42 67.45 0.44 400.32 321.65 19 2029 - 78.66 - 78.66 345.86 70.19 0.45 416.50 337.84 20 2030 - 78.66 117.99 196.65 359.85 73.04 0.45 433.34 236.69 Total 684.00 943.94 117.99 1,745.93 3,272.59 663.66 4.72 3,940.97 2,195.04
ENPV @ 12% 185.56
EIRR 18.03%
Appendix 8 63
Table 8.6: Discounted Cashflow Statement of Tranche 2 at Completion (₹million)
Revenue from Incremental Economic Incremental sales tax on Total Net O&M Replacement Total Income from Sl. No. Year Cost: Income from additional Economic Economic Cost Cost Cost Tourist Days CAPEX Tourist Spent spending by Benefits Benefits Spent foreign tourists 1 2011 ------2 2012 1.29 - - 1.29 - - - - (1.29) 3 2013 19.61 - - 19.61 - - - - (19.61) 4 2014 54.13 - - 54.13 - - - - (54.13) 5 2015 200.50 - - 200.50 - - - - (200.50) 6 2016 279.38 - - 279.38 - - - - (279.38) 7 2017 198.61 - - 198.61 - - - - (198.61) 8 2018 245.27 - - 245.27 - - - - (245.27) 9 2019 - 114.86 - 114.86 49.62 21.48 0.73 71.82 (43.04) 10 2020 - 114.86 - 114.86 298.53 73.49 1.19 373.21 258.35 11 2021 - 114.86 - 114.86 315.95 78.85 1.26 396.06 281.19 12 2022 - 114.86 - 114.86 334.82 84.75 1.33 420.90 306.03 13 2023 - 114.86 - 114.86 355.30 91.26 1.41 447.96 333.10 14 2024 - 114.86 - 114.86 377.56 98.46 1.49 477.50 362.64 15 2025 - 114.86 54.30 169.16 401.81 106.44 1.58 509.82 340.66 16 2026 - 114.86 - 114.86 428.28 115.29 1.67 545.24 430.38 17 2027 - 114.86 - 114.86 457.23 125.13 1.77 584.13 469.27 18 2028 - 114.86 - 114.86 488.96 136.08 1.88 626.92 512.06 19 2029 - 114.86 - 114.86 523.80 148.28 2.00 674.08 559.22 20 2030 - 114.86 117.99 232.85 562.13 161.90 2.13 726.16 493.31
Total 998.76 1,378.35 172.29 2,549.40 4,593.98 1,241.39 18.43 5,853.80 3,304.40 ENPV @ 12% 267.45
EIRR 17.89%
64 Appendix 8
D. Financial Evaluation
I. At Appraisal
14. At appraisal, it was considered that the tourism policy does not present an explicit view on cost recovery. The subprojects were considered not to earn high financial returns (simply because the private sector would have invested had the financial returns been high) or they do not earn revenues. Most subprojects in Tamil Nadu and Uttarakhand under the project are not revenue generating and were to be financed from local taxes as public goods. Improvements proposed included development of tourism facilities, and small car parking and toilet facilities attached to tourism assets, which the respective state governments will manage by, levying nominal charges where appropriate. Hence, as part of the financial evaluation, a performance analysis and sustainability analysis for the two state governments were conducted. The analysis concluded that additional budgetary requirements for O&M can be absorbed by the tourism budget of the two states.
II. At Completion
15. At completion, the project interventions are less than likely sustainable. The destination improvement subprojects at Tamil Nadu and Uttarakhand considered to be non-revenue generating or non-commercial as the revenues expected cannot recover all costs, hence, state governments need to allocate budgets for the O&M of the physical assets created. The state governments are likely to earn additional revenues from the public private partnership (PPP) arrangement and other user charges from parking spaces created near to destinations, toilets constructed, and entry fees as decided by the operating line agencies. Based on the above considerations, the financial performance of the two state governments was analyzed and shown in tables 8.7 and 8.8. The result shows that during the last five years on an average, the state of Tamil Nadu maintained an operating ratio (operating expense to operating receipts) at 1.11 and the state of Uttarakhand maintained the ratio at 0.99. A ratio below 1.0 means that the entity earns adequate cash flows through operating revenues enough to meet administrative expenses and O&M expenses of all infrastructure of the entity. At completion, the financial cost of physical works (including taxes and duties) evaluated at ₹580.57 million for Tamil Nadu and ₹1,379.40 million for Uttarakhand. Since the anticipated O&M cost (assumed 10%) for the physical assets created under the project would be about ₹58.06 million for Tamil Nadu and ₹137.94 million for Uttarakhand, such additional budgetary requirements are required to be absorbed out of the tourism budget and the additional revenue that the assets would generate. Government of India increased mandatory and guaranteed compensation (financial devolution) to state governments during the last three years due to introduction of country-wide fiscal reforms as the newly legislated goods and service tax subsumed and consolidated local taxes like entry tax, octroi, and advertisement taxes. This would also improve the financial devolution to States for departmental expenditure.
Table 8.7: Financial Performance of Government of Tamil Nadu (₹Million) Particulars 2014-15 2015-16 2016-17 2017-18/b 2018-19 Operating Receipts - Total (1) = A + B + C 1,224,204.40 1,290,078.70 1,437,998.10 1,462,797.50 1,737,411.57 A. Tax Revenue 954,805.70 1,008,299.40 1,118,246.70 1,208,363.14 1,361,729.31 B. Non-Tax Revenue 83,506.00 89,183.10 112,663.60 107,639.98 142,000.18 C. Grants-in-aid / Union Grant 185,892.70 192,596.20 207,087.80 146,794.38 233,682.07 Capital Receipts - Total (2) = E + F + G 324,311.20 367,503.50 719,376.40 632,589.85 548,496.49 E. Recovery of Loans 13,507.60 6,838.10 43,502.00 55,946.38 69,134.29
Appendix 8 65
F. Borrowings 310,803.60 360,665.40 675,874.40 576,643.47 479,362.20 G. Miscellaneous Capital Receipts - - - - - Total Receipts (3) = (1) + (2) 1,548,515.60 1,657,582.20 2,157,374.50 2,095,387.35 2,285,908.05 Non-plan Expenditure or Consolidated/a (4) = H+ I + J+ K 1,050,347.70 1,688,956.20 2,176,753.40 2,035,510.71 2,430,530.95 H. On Revenue Account - Interest Payment 148,871.70 177,424.30 210,691.20 267,330.93 292,472.26 I. On Revenue Account - Others 797,808.50 1,232,508.00 1,381,899.50 1,411,405.41 1,679,533.74 J. On Capital Account - Repayment of Public Debt 64,877.00 66,053.40 82,145.30 89,908.48 150,636.23 K. On Capital Account - Others 38,790.50 212,970.50 502,017.40 266,865.89 307,888.72 Plan Expenditure/a (5) = L + M 523,759.80 - - - - L. On Revenue Account 341,599.80 - - - - M. On Capital Account 182,160.00 - - - - Total Expenditure (6) = (4) + (5) 1,574,107.50 1,688,956.20 2,176,753.40 2,035,510.71 2,430,530.95 N. Operating Expenditure = H + I + L 1,288,280.00 1,409,932.30 1,592,590.70 1,678,736.34 1,972,006.00 O. Capital Expenditure = J + K + M 285,827.50 279,023.90 584,162.70 356,774.37 458,524.95 Operating (Deficit) / Surplus = (1) - N (64,075.60) (119,853.60) (154,592.60) (215,938.84) (234,594.43) Operating Ratio [Operating Expenditure or N / Operating 1.05 1.09 1.11 1.15 1.14 Receipts or (1)]
Average Operating Ratio - Last 5-years 1.11 a State Government discontinued presentation of annual financial statements and budget documents showing "plan" and "non-plan" items and instead adopted presentation of "revenue" and "capital" expenditure, effective Fiscal Year 2015-16 b Figures for 2017-18 are based on the revised estimates; for other years are actual results of the year. Source: Audited annual financial statements of the State of Tamil Nadu (http://www.tnbudget.tn.gov.in/; https://www.rbi.org.in/scripts/AnnualPublications.aspx?head=State+Finances+%3A+A+Study+of+Budgets) and ADB Estimates
Table 8.8: Financial Performance of Government of Uttarakhand (₹Million) Particulars 2014-15 2015-16 2016-17 2017-18 2018-19 Operating Receipts - Total (1) = A + B + C + D 202,465.20 212,344.30 248,889.60 271,045.70 312,164.40 A. State's Tax Revenue 121,307.40 147,109.80 173,088.70 172,498.40 201,996.80 B. Non-Tax Revenue 11,104.40 12,196.60 13,458.20 17,695.20 33,098.90 D. Grants-in-aid / Union Grant 70,053.40 53,037.90 62,342.70 80,852.10 77,068.70 Capital Receipts - Total (2) = E + F + G 49,345.00 70,256.80 106,268.00 137,404.80 154,747.40 E. Recovery of Loans / Advances 1,809.20 272.00 348.50 2,835.00 269.10 F. Borrowings / Public Debt 47,535.80 69,984.80 105,919.50 134,569.80 154,478.30 G. Miscellaneous Capital Receipts - - - - - Total Receipts (3) = (1) + (2) 251,810.20 282,601.10 355,157.60 408,450.50 466,911.80 Non-plan Expenditure or Consolidated/a (4) = H+ I + J+ K 167,718.10 295,837.70 356,094.40 427,255.10 487,940.70 H. On Revenue Account - Interest Payment 24,056.10 29,711.10 37,230.50 39,872.90 44,748.20 I. On Revenue Account - Others 128,465.90 201,153.30 215,484.50 250,954.00 277,212.00 J. On Capital Account - Repayment of Public Debt 10,740.50 21,968.00 52,186.80 76,516.20 102,301.40 K. On Capital Account - Others 4,455.60 43,005.30 51,192.60 59,912.00 63,679.10 Plan Expenditure/a (5) = L + M 1,042.66 - - - - L. On Revenue Account 563.22 - - - - M. On Capital Account 479.44 - - - - Total Expenditure (6) = (4) + (5) 168,760.76 295,837.70 356,094.40 427,255.10 487,940.70 N. Operating Expenditure = H + I 153,085.22 230,864.40 252,715.00 290,826.90 321,960.20 O. Capital Expenditure = J + K 15,675.54 64,973.30 103,379.40 136,428.20 165,980.50 Operating (Deficit) / Surplus = (1) - N 49,379.98 (18,520.10) (3,825.40) (19,781.20) (9,795.80) Operating Ratio [Operating Expenditure or N / Operating 0.76 1.09 1.02 1.07 1.03 Receipts or (1)]
Average Operating Ratio - Last 5-years 0.99 a State Government discontinued presentation of annual financial statements and budget documents showing "plan" and "non-plan" items and instead adopted presentation of "revenue" and "capital" expenditure, effective Fiscal Year 2015-16 Source: Audited annual financial statements of the State of Uttarakhand (refer: https://budget.uk.gov.in/); and ADB Estimates
66 Appendix 8
16. The financial performance of the line agencies (executing agencies) were considered for the tourism activities (tables 8.9 and 8.10 ) to assess the expenditure capacity and the capacity of the respective department to support O&M of the tourism assets created with project resources and other funds out of the respective state’s budget allocation. Respective departments depend on the user/service charges and the budget allocation out of the Consolidated Fund of the State to meet departmental expenditure.
Table 8.9: Financial Performance of Department of Tourism and Culture, Government of Tamil Nadu [Codes 1452, 3452, 5452] (₹Million) Particulars 2014-15 2015-16 2016-17 2017-18/a 2018-19
Revenue & Receipts 1. Operating Receipts (1452) 3.50 3.10 5.00 2.03 5.96 Total Receipts (1) 3.50 3.10 5.00 2.03 5.96
Expenditure 2. Operating Expenditure (3452) 243.60 235.80 259.20 248.02 269.37 Plan and Non-Plan Expenditure 243.60 235.80 259.20 248.02 269.37 3. Capital Expenditure (5452) (31.10) 227.40 343.60 300.41 131.16 Plan and Non-Plan Expenditure (31.10) 227.40 343.60 300.41 131.16 Total Expenditure (2) + (3) 212.50 463.20 602.80 548.43 400.53 a Figures for 2017-18 are based on the revised estimates; for other years are actual results of the year. Source: Audited annual financial statements of the State of Tamil Nadu (http://www.tnbudget.tn.gov.in/; https://www.rbi.org.in/scripts/AnnualPublications.aspx?head=State+Finances+%3A+A+Study+of+Budgets) and ADB Estimates
Table 8.10: Financial Performance of Department of Tourism, Government of Uttarakhand [Codes 1452, 3452, 5452] (₹Million) Particulars 2014-15 2015-16 2016-17 2017-18 2018-19
Revenue & Receipts 1. Operating Receipts (1452) 32.03 16.65 32.01 16.61 14.10 Total Receipts (1) 32.03 16.65 32.01 16.61 14.10
Expenditure 2. Operating Expenditure (3452) 683.42 487.56 399.88 583.68 620.64 Plan and Non-Plan Expenditure 683.42 487.56 399.88 583.68 620.64 3. Capital Expenditure (5452) 883.07 939.28 1,182.60 580.83 574.78 Plan and Non-Plan Expenditure 883.07 939.28 1,182.60 580.83 574.78 Total Expenditure (2) + (3) 1,566.48 1,426.84 1,582.47 1,164.51 1,195.42 Source: Audited annual financial statements of the State of Uttarakhand (refer: https://budget.uk.gov.in/); and ADB Estimates
III. Analysis and Re-evaluation Findings 17. The state governments would require to meet the O&M cost of the physical interventions out of the budgetary allocations, and explore additional means of revenue generation through PPP arrangements and by levying user charges in respect to tourism-related facilities. Tourism promotion would also ensure increase in the flow of tourists in the states.
Appendix 9 67
CONTRIBUTION TO ADB’S RESULTS FRAMEWORK Pillar Result Framework Indicator Achievements Operational Priority 1: Addressing Remaining Poverty and Reducing Inequalities, 2019-2024 Pillar 1 1.1.2. People enrolled in improved 280 community members trained on Human capital and education and/or training (number) livelihood skills in rural entrepreneurial social protection trades and marketing (212 men and 68 enhanced for all women). 177 community members trained in tourism support activities (124 men and 53 women). Pillar 2 1.2. Jobs generated (number) 1,131 jobs for community persons Quality jobs generated including women-headed, poor and vulnerable households were generated. Pillar 3 1.3.1. Infrastructure assets established Sanitary complexes (149-person Opportunities for the or improved (number) capacity) constructed at 21 tourist most vulnerable destinations. increased Drinking water facilities were provided at 5 tourist locations. 10 adventure centers/sports facilities refurbished and furnished with sports equipment. State of the art Eco-tourism Resort facility constructed at 1 location. 1.3.3. Measures for increased 1 measure (linkages of 1145 community inclusiveness supported in persons including 514 women with 6 implementation (number) different gender responsive livelihood generation schemes of the government). Operational Priority 2: Accelerating Progress in Gender Equality, 2019–2024 Pillar 1 2.1. Skilled jobs for women generated 641 women (57%) got skilled jobs. Women’s economic (number) empowerment increased 2.1.1. Women enrolled in TVET and 121 women trained in TVET. other job training (number) Pillar 3 2.3. Women represented in decision- 388 women (87%) constitute the 46 Women’s participation in making structures and processes CBTs. decision-making and leadership enhanced 2.3.2. Measures on gender equality 1 measure (linkages of 514 i.e.45% supported in implementation (number) women with 6 different gender responsive livelihood generation schemes of the government). 12,000 gender-responsive brochures, guidebooks developed and distributed. Operational Priority 3: Tackling Climate Change, Building Climate and Disaster Resilience, and Enhancing Environmental Sustainability, 2019–2024 Pillar 1 3.1.3 Low-carbon infrastructure assets Total of 2,245 energy efficient Mitigation of climate established or improved (number) illumination units installed/retrofitted at 9 change increased tourist cities/towns. Pillar 3 3.3.3. Solutions to conserve, restore, Water quality of the Naukuchiyatal lake Environmental and/or enhance terrestrial, coastal, and ameliorated with installation of two sustainability enhanced marine areas implemented (number) submersible aeration plants. Operational Priority 4: Making Cities More Livable Pillar 1 4.1.2. Urban infrastructure assets Underground sewer network (12.91 km)
68 Appendix 9
Pillar Result Framework Indicator Achievements Coverage, quality, established or improved (number) constructed and 931 house service efficiency and reliability connections provided at 1 town. of services in urban areas improved Pillar 2 4.2.2. Measures to improve financial 1 measure (private participation was Urban planning and sustainability supported in initiated in operation and maintenance financial sustainability of implementation (number) lease). cities strengthened Operational Priority 6: Strengthening Governance and Institutional Capacity Pillar 1 6.1.1. Government officials with 294 EA staff trained on environment, Improved public and increased capacity to design, implement, culture, tourism planning, and corporate sector monitor, and evaluate relevant measures marketing. management functions (number) and financial stability 6.1.4. Transparency and accountability 1 measure in procurement supported in measures in procurement and financial implementation (e-tendering upscaled in management supported in IDIPT) implementation (number) Pillar 2 6.2.4. Citizen engagement mechanisms 46 CBTs established for management More effective, timely, adopted (number) of natural and cultural heritage sites. corruption-free and citizen-centric delivery of services CBT= community-based tourism, IDIPT= Infrastructure Development Investment Program for Tourism, TVET = technical and vocational education and training.