World Bank approves USD 40 mn loan for UP tourism project

New Delhi : Loan worth USD 40 million for a tourism project in the Indian state of Uttar Pradesh was approved by the World Bank Board of Executive Directors on Wednesday.

International Bank for Reconstruction and Development (IBRD) will grant the loan which has a 5-year grace period, and maturity term of 19 years.

The Uttar Pradesh Pro-Poor Tourism Development Project will support the state government's priority of re-structuring tourism in a way that optimizes the state assets in an inclusive and sustainable manner directly benefiting poor residents and local entrepreneurs, such as rickshaw drivers, local artisans and street vendors.

The project will help enhance their linkages with the tourism value chain, while improving



living conditions for some of the state's poorest residents through better infrastructure and services.

"In 2016, the state attracted 211 million domestic and over six million international visitors. Despite this, UP remains India's third poorest state, with a 37.7 percent poverty rate," the World Bank said in an official release pointing that the project will increase tourism-related benefits for local communities.

"Tourism is experiencing a period of strong growth driven by India's burgeoning middle class. Uttar Pradesh with its rich historical, religious and cultural resources, has unrivalled tourism potential. However, the economic benefits of tourism trickle down unevenly to local communities," said Junaid Ahmad, World Bank Country Director in India.