World Bank Document

Public Disclosure Authorized Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: 84090-LK

Public Disclosure Authorized RESTRUCTURING PAPER

Public Disclosure Authorized ON A

PROPOSED PROJECT RESTRUCTURING
OF

SUSTAINABLE TOURISM DEVELOPMENT PROJECT
CREDIT

BOARD APPROVAL DATE MAY 13, 2010

TO THE

DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA

JANUARY 30, 2014

Public Disclosure Authorized FINANCE AND PRIVATE SECTOR DEVELOPMENT
SOUTH ASIA REGION

This document has a restricted distribution and may be used by recipients only in the performance of their
official duties. Its contents may not otherwise be disclosed without World Bank authorization.

ABBREVIATIONS AND ACRONYMS

GOSL Government of Sri Lanka
IDA International Development Association
MG Matching Grant
PDO Project Development Objective
SDR Special Drawing Rights
STDP Sustainable Tourism Development Project
SME Small and Medium Enterprise

Regional Vice President: Philippe H. Le Houerou
Country Director: Francoise Clottes
Sector Manager: Henry Bagazonzya
Sriyani M. Hulugalle
Task Team Leader:

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SRI LANKA
SUSTAINABLE TOURISM DEVELOPMENT PROJECT

CONTENTS
Page

A. SUMMARY ...........................................................................................................................4
B. PROJECT STATUS..............................................................................................................4
C. PROPOSED CHANGES ......................................................................................................4
D. APPRAISAL SUMMARY....................................................................................................5
ANNEX 1: RESULTS FRAMEWORK AND MONITORING .................................................6
ANNEX 2: REALLOCATION OF PROCEEDS.........................................................................8
ANNEX 3: EXTENSION OF CLOSING DATE .........................................................................9

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SUSTAINABLE TOURISM DEVELOPMENT PROJECT

A. SUMMARY
The Government has requested that the remaining unutilized project funds be cancelled
as the priorities of the Government have changed. The on-going Dam Safety Project
could not cover the North and Eastern Provinces due to the conflict and after the
cessation of hostilities the Government would like to use the funds assigned for providing
Matching Grants and training for the tourism related private sector to a more priority area
of dam safety operations in the North and East. Therefore all the remaining unutilized
funds (SDR 11,477064.60) are cancelled to be subsequently reallocated to the Dam
Safety Project.
B. PROJECT STATUS
The Project originally expected to provide tourism related infrastructure for the Eastern
Province, redesign the institutional framework, enhance skills development and provide
Matching Grants to the tourist related private sector. However, with the cessation of
hostilities in the North and Eastern Provinces, the Government had access to substantial
funds locally and from overseas for infrastructure development and the Government
requested that the funds be reallocated to the Matching Grant components to provide
funds to the private sector to leverage investment in the tourism related Small and
Medium enterprise sector and the Project was restructured in October 2012. In 2013 May,
the Matching Grant Scheme was launched and the applications closed in June 2013.
Subsequently the Government informed the Bank in October 2013 that the funds should
be reallocated to the Dam Safety project for activities in the North and East as the
priorities of the Government have changed. The Government refunded the remaining
funds in the designated account back to IDA in November 2013.

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C. PROPOSED CHANGES

 Financing

 Project Costs

Project Costs per component

Components/Activities Current Proposed
(expressed in
(US$m.)
SDR)
1. Enhancing institutional framework 1.5 -
1.1 Establishing sustainable centers of Cancelled
excellence and increasing the -
accreditation 8,143.72
1.2 Promotion of product standard
approved by the SLTDA 100,313.72
10,089,570.45
2. Tourism related Infrastructure 1,387,494.15

3. Support to Sustainable Tourism Business 16.0 14,477.96
Model (Matching Grants) 11,600,000.00
3.1 Establishment of a Matching Grant 0.5
facility -
3.2 Matching Grants 18.0

4. Incremental Operations Cost
Cancellation as on October 29, 2013
Cancellation as on November 26, 2013
Cancellation as on December 17, 2013
Total

Category of Expenditure Allocation % of Financing

Current Revised Current Revised Current Revised

(1) Goods, works (1) Goods, works 902,200 8,143.72 100% 100%
and consultants’
and
consultants’ services under

services Part 1 of the

under Part 1 Project

of the Project
(2) Consultants’ (2) Consultants’

services services under

under Part 3 (a) of the 64,500 _ 100% _

Part 3 (a) of Project

the Project

(3) Grants under (3) Grants under

Part 3 (b) of Part 3 (b) of the 10,311,100 _ 100% _

the Project Project

(4) Incremental (4) Incremental

Operating Operating Costs 322,200 100,313.72 100% 100%

Costs

(5) Cancellation as

on October 29, 10,089,570.45

2013

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(6) Cancellation as 1,387,494.15
on November 14,477.96
26, 2013

(7) Cancellation as
on December 17,
2013

 Cancellations: At the request of the Government all the remaining unutilized
funds will be cancelled. (SDR 11,477,064.60)

 Closing date: Closing Date will be advanced to January 31, 2014.

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