Pakistan - Khyber Pakhtunkhwa Integrated Tourism Development Project : Additional Financing

Overview & Synopsis

The objective of the Additional Financing of the Khyber Pakhtunkhwa Integrated Tourism Development Project is to improve tourism-enabling infrastructure, enhance tourism assets, and strengthen destination management for sustainable tourism development in Khyber Pakhtunkhwa. The AF is proposed to: (a) meet a cost overrun of 22.5 million dollars in the original scope of component 2 (infrastructure planning and development). This cost overrun is a result of cost escalation and extended completion timelines of two ongoing road infrastructure contracts in the country’s North (Thandiani road and Mankiyal-Bada-Serai Road). Both are tourism roads and once completed, these will provide seamless access to tourist sites in the vicinity, (b) support the replenishment of the project funds (5 million dollars) in component 2 that were utilized when Contingent Emergency Response Component (CERC) was activated in 2020, and (c) allocate 2.5 million dollars under component 3 (project management and capacity building) to provide Technical Assistance (TA) and to cover for operational costs.