Sikkim Tourism

South Asia Tourism Infrastructure Development Project- Sikkim, India

DRAFT

QUARTERLY PROGRESS REPORT(January 2013 – March 2013)

Project Management Implementation Unit

Department of Tourism & Civil Aviation

Government of Sikkim

Abbreviations

ADB Asian Development BankCAAN Civil Aviation Authority of NepalDCC Dharma Chakra CommitteeDoT Department of TourismDTA Delegated Technical AssistanceFY Financial YearGPS Guru Padma SambhavaIFB Information for BiddersIHCAE Indian Himalayan Centre for Adventure and EcotourismINR Indian National RupeeKCT Karmapa Charitable TrustLA Loan AgreementLDT Lumbini Development TrustLOA Letter of AcceptancePIU Project Implementation UnitPMIU Project Management and Implementation UnitSTF Sub-regional Task ForceMn Million

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MOTCA Ministry of Tourism and Civil AviationNCB National Competitive BiddingNPSC National Project Steering CommitteePCSS Procurement Contract Summary SheetPMDSC Project Management Design and Supervision ConsultantsNGO Non-Government OrganizationQPR Quarterly Progress ReportIFB Invitation for BidIHCAE Institute of Himalayan Culture and Adventure EcotourismINR Indian RupeesSRP Short Resettlement PlanTBER Technical Bid Evaluation ReportMPR Monthly Progress ReportMAR Monthly Activity ReportTOR Terms of ReferenceNEST North Eastern States TourismPA Project AgreementPMP Project Management PlanPPMS Project Performance Monitoring System PPTA Project Performance Technical AssistancePRI Panchayati Raj Institution PWD Public Work DepartmentSATIDP South Asia Tourism Infrastructure Development ProjectSMEC Snowy Mountains Engineering CorporationTAAS Travel And Adventure Association of SikkimSAS South Asia Sub-RegionSBD Standard Bidding Document SH State HighwaySSTDS South Sikkim Tourism Development SocietySTRS Samdruptse Technical Review Sub-CommitteeTA Technical AssistanceTIC Tourism Information CentreTA Technical AssistanceVDF Vehicle Damage FactorWMM Wet Mix MacadamWWF World Wildlife ForumTRRL Transport & Road Research Laboratory

TABLE OF CONTENTS

1. OVERALL STATUS................................................................................................................................... 3

1.1. Overall Project Summary...............................................................................................................................3

1.2. Contract Wise Project Cost Summary............................................................................................................4

1.3. Overall Status of Contract Packages (Amount in INR Million)........................................................................5

1.5 Component Wise Contract Packages Status up to Quarter Ending December 2012......................................7

1.6 List of Contract Packages with Status up to Quarter Ending December 2012................................................8

1.7 Summary of Expenditure during & Up to Quarter Ending December 2012..................................................10

2. STATUS OF SHORT RESETTLEMENT PLANS............................................................................................11

3. STATUS OF INITIAL ENVIRONMENT EXAMINATION...............................................................................12

3.1. Overall Project Summary.............................................................................................................................12

4. ACTIVITIES DURING QUARTER ENDING December 2012........................................................................12

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4.1. Activities during October 2012.....................................................................................................................12

4.2. Activities during November 2012.................................................................................................................16

4.3. Activities during December 2012.................................................................................................................19

5. ADB LOAN COVENANTS COMPLIANCE STATUS.....................................................................................23

6. CONSULTANT STAFFING....................................................................................................................... 32

6.1 Mobilisation of Key Personnel during Quarter Ending September 2012.....................................................32

7. PROGRESS OF WORKS.......................................................................................................................... 32

7.1 Physical and Financial Progress of Works- Civil Works and Procurement of Goods and Equipments..........33

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1. OVERALL STATUS

1.1. Overall Project Summary

The project is a part of regional project intended to improve tourism related infrastructure in Nepal, India and Bangladesh. The project aims at improving connectivity to and tourist destination infrastructure and services. Key to the project is improvement of natural and cultural based tourist sites on selected high priority sub regional tourist circuits in south Asia. The Indian component covers the Sikkim state. The tourist destination and its connectivity improvement in the state of Sikkim focuses on (i) World famous Buddhist Monastery at Rumtek in east Sikkim (ii) the nature based sites forming part of the great Himalayan trail in west Sikkim district (iii) Three villages having potential of Heritage tourism (iv) transformation of Sikkim into a sub-regional centre of learning in nature by improving training institute (Institute of Himalayan Cultural Adventure and Eco-tourism).The physical interventions are accompanied with (i) capacity development programme of sector agencies, including DoT&CAv (Executing Agency),Department of forest, Rumtek Monastery Administration and Institute of Himalayan, Cultural Adventure and Eco-tourism for sustainable protection and management of natural and cultural heritage of tourism importance and (ii)a programme to foster community participation in tourism in order to increase benefits from tourism to the local people.

The overall summary of the ADB loan for South Asia Tourism Infrastructure Development Project- India in the state of Sikkim is given in Table 1.1 below:

Table 1.1: Project Summary

Executing AgencyDepartment of Tourism and Civil Aviation, Government of Sikkim

ADB Loan No 2578-INDApproval 16 –Nov-09Signing 04-Oct-10Effective 25-Jan-11Original Closing 15-Mar -15Last ADB Review Mission Oct 2012Revised closing -Time Extension 0 MonthsTime Remaining 23.5 MonthsTime Elapsed 23 MonthsOriginal 23 MonthsRevised -

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The project budget under various heads is summarised in the Table below:

Table 1.2: Project Budget Summary

Sl.

No.

Component Government ADB Total

US$ (Mn) % US$ (Mn) % US$ (Mn) %

1. Land 0.060 100 0.000 0 0.060 1002. Civil Works 4.355 22.5 15.000 77.50 19.355 1003. Training and

Fellowship 0.000 0 0.220 100 0.220 1004. Consulting

Services 0.331 14.2 2.000 85.8 2.331 1005. Vehicles,

Equipment and

Furniture 0.502 15.3 2.780 84.7 3.282 1006. Incremental

Administration 0.720 100 0.000 0 0.720 1007. Tourism

Promotion 0.002 100 0.000 0 0.002 100Total 5.970 23 20.000 77 25.970 100

8. Interest During

Implementation 1.990 100 0.000 0 1.990 1009. Commitment

Charges 0.040 100 0.000 0 0.040 100Grand Total 8.000 29 20.000 71 28.000 100

1.2. Contract Wise Project Cost Summary

Sl. No.

Contract Packages In Mn. $ In Mn. Rs.

Total ADB Govt. Total ADB Govt.I First Year Projects

1 Strengthening of Roads from Ranka to Sajong in East Sikkim

2.00 1.55 0.45 105.569 81.816 23.753

2 Strengthening of Roads in West Sikkim

2.547 1.974 0.573 134.442 104.193 30.249

II. Second Year Projects

3 Strengthening of Roads from Damthang to Himalayan Institute, Chemchey in South Sikkim

1.006 0.780 0.226 53.101 41.153 11.948

4 Retrofitting of Guru Padma Sambhava Statue, Samdruptse in South Sikkim

0.646 0.501 0.145 34.099 26.427 7.672

III Subsequent Year Projects

5 Environmental up-gradation of Kecheopalri Lake Precinct and

0.252 0.195 0.057 13.302 10.309 2.993

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Development of Shanti View Point

6 Construction of Multi-Level Parking near Rumtek Monastery

2.56 1.984 0.576 135.128 104.724 30.404

7 Environmental Improvement of Rumtek Monastery Complex

0.671 0.520 0.151 35.418 27.449 7.969

8 Redevelopment and provision of basic services at Yuksom Base Camp

0.497 0.385 0.112 26.234 20.331 5.903

9 Improvement of Singalila Trek and provision of basic amenities

2.378 1.843 0.535 125.522 97.279 28.243

10 IHCAE, Chemchey Infrastructure & Facility Development

3.780 2.930 0.850 199.525 154.632 44.893

11 IHCAE Chemchey, Procurement of Equipments and Training Aids

2.032 1.721 0.311 107.258 83.125 24.133

12 Village Tourism development for Rey-Mindu, Damthang and Uttarey

1.030 0.80 0.23 54.368 42.135 12.233

IV Consulting Services

13 Project Management, Design and Supervision Consultants

2.459 2.11 0.349 129.797 111.366 18.431

14 DTA for Operationalisation Plan and Curriculum Design for IHCAE , Chemchey

0.0636 0.0546 0.009 3.357 2.880 0.477

15 DTA for Community Capacity Building for Village Ecotourism Sub-Projects

0.146 0.125 0.020 7.707 6.612 1.095

Total 22.6417.472

4.5941164.82

7 914.431250.39

Note: - Exchange rate has been adopted vide memo no. INRM/Disb/2012/93 dated 8 Oct 2012 from ADB.

1.3. Overall Status of Contract Packages (Amount in INR Million)

The status of Contract Packages up to Quarter ending September 2012 is given in table below:

Sl. No.

Description Contracts Awarded

(1)

Contracts Tendered

(2)

Contracts Committed[3=(1)+(2)]

Contracts yet to be

Committed(4)

Total Contracts

[5=(3)+(4)]

Amount No. Amount No. Amount No. Amount

No. Amount No.

1. First Year Projects

137.5 1 121.5 1 259.00 2 0.00 0 259.00 2

2. Second Year Projects

0.00 0 55.5 1 55.5 1 36.2 1 91.70 2

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3. Subsequent Year Projects

0.00 0 0.00 0 0.00 0 732.7 8 732.77 8

4. Consulting Services

110.66 1 9.50 2 120.16 3 0.00 0 120.16 3

Total 186.50 4 186.50 4 434.66 6 768.9 9 1203.6 1

1.4. Abstract of Status of Contract Packages

Contract Status Number (INR Million)Contracts Committed 6 434.66Contracts to be Committed

9 768.97

Total Contracts 15 1203.63

36.11%

63.89%

Status of Contract Packages(Value of Contracts)

Contracts to be commited

Contracts Com-mited

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40%

60%

Status of Contract Packages(Number of Contracts)

Contracts to be commited

Contracts Com-mited

1.5 Component Wise Contract Packages Status up to Quarter Ending December 2012

Contract Status Connectivity Enhancement

Nature and Culture Based

Destination Improvement

Support for Capacity

Development and Project

Management

Total

No. INR (Mn)

No. INR (Mn)

No. INR (Mn)

No. INR (Mn)

Contracts Awarded

1 137.5 0 0.0 1 110.66 2 248.16

Contracts Tendered

2 177.0 0 0.0 2 9.5 4 186.50

Contracts to be Tendered

0 0 9 768.97 0 0 9 768.97

Total Contracts 3 314.5 9 768.97 3 120.16 15 1203.63

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Contracts Awarded

Contracts Tendered


0

1

2

3

4

5

6

7

8

9

10

Component Wise Status of Components(Number of Contracts)

Connecticity EnhancementNature and Culture Based Destina-tion ImprovementSupport for Capacity Devel-opment and Project Manage-ment

2

0

2

0 0

9

1

0

1

Contracts Awarded

Contracts Tendered


0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

Component Wise Status of Components(Value of Contracts, INR MIllion)

Connecticity EnhancementNature and Culture Based Destina-tion ImprovementSupport for Capacity Devel-opment and Project Manage-ment

0 0 00

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1.6 List of Contract Packages with Status up to Quarter Ending December 2012

S. No.Description of Contract Package

Location

Cost(INR Mn)

Status of Contract

Remarks

First Year Projects1. Strengthening and upgrading of

existing Road from Ranka to Sajong (9km)

East Sikkim

121.5 Acceptance letter issued on 16-02-2013.

Engineers Estimate – 114.82 (INR Mn)Contracted amount – 143.347 (INR Mn)

2. Strengthening and upgrading of existing road from:

(i) Pelling to Tikjuk Junction

(ii) Access road to Pemayangtse Monastery;

(iii) Peling Zero Point to Pelling Helipad

(iv) Yuksom Bazaar to Yuksom Helipad

West Sikkim

137.5 Contract Tendered

Responsive Bidder M/s M.K. Gupta & Co.Contract Agreement signed on 30th April 2012. Contractor and PMDSC staff mobilized on 26 June 2012. Work in progress.

Engineers Estimate – 126.369 (INR Mn)

Contracted Amount – 143.5 (INR Mn)

I3. Strengthening and upgrading of

road from Damthang to Himalayan Institute of Chemchey (2.36 km)

South Sikkim

55.5 Price Bids opened on 28-03-2013. PBER submitted to ADB for approval.

Engineer’s estimates – 54.312 (INR Mn)

4. Refurbishment and Development of Guru Padma Sambhava Statue Complex, Samdruptse

South Sikkim

36.2 Contract to be Tendered

Subsequent Year Projects5. a) Environmental up-gradation of

Kecheopalri Lake Precinct(a) West Sikkim


b) Shanti View Point Development(b) East Sikkim


6. Construction of Multi-Level Parking near Rumtek Monastery Complex

East Sikkim


7. Tourism Infrastructure East Sikkim


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Development & Environmental Improvement of Rumtek Monastery Complex

8. Redevelopment and provision of basic services at Yuksom Base Camp

West Sikkim


9. Improvement of SingalilaTrek and provision of basic amenities

West Sikkim


10. Indian Himalayan Centre for Adventure and Ecotourism (IHCAE), Chemchey Infrastructure & Facility Development

South Sikkim


11. Procurement of Equipments and Training Aids for IHCAE Chemchey

South Sikkim


12. Village Tourism for Rey-Mindu (East Sikkim), Damthang (South Sikkim) and Uttarey (West Sikkim)

East, West & South Sikkim


Consulting Services13. Project Management, Design

and Supervision Consultants- 110.7 Contract

Awarded on 16-08-2011 and in Operation.

14. DTA for Operationalization Plan and Curriculum Design for IHCAE , Chemchey

- 2.9 Contract to be Tendered

15. DTA for Community Capacity Building for Village Ecotourism Sub-Projects

- 6.6 Contract to be Tendered

1.7 Summary of Expenditure during & Up to Quarter Ending March 2013

SUMMARY OF EXPENDITURE DURING QUARTER ENDING March’ 13 (Million INR)

Sl. No Particulars Financial Progress/Disbursement

Up to Previous Quarter ending December 2012

This Quarterending March 2013

Including Previous Quarter

I. Works/Scheme

1. Road from Ranka to Sajong-9km - -

2. Road in West Sikkim-8km 12.5 1.109 13.609

3. Damthang to Himalayan Institute Road

- -

4. Refurbishment of GPS Statue Samdruptse

- -

5. Kecheopalri Lake and Shanti View Point Development

- -

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6. Multi-Level Parking for Rumtek - -

7. Environmental Improvement of Rumtek Monastery Complex

- -

8. Yuksom Base Camp development - -

9. Singalila Trek Improvement - -

10. IHCAE Infrastructure and Facility Development

- -

11. Procurement of equipments and training aids for IHCAE

- -

12. Village tourism for Rey-Mindu, Damthang and Uttarey.

- -

II. Consultancy

1. PMDSC 3.620 3.972 7.592

2. DTA Consultants for Curriculum and Operationalization Plan for IHCAE Chemchey

- - -

3. DTA Consultants for Community Capacity Building for Village Tourism Sub-Projects

- - -

Total 16.120 5.081 21.201

2 STATUS OF SHORT RESETTLEMENT PLANS

The project is designed to minimise land acquisition and resettlement impacts. The proposed project works are limited within the existing facilities in government land wherever possible. The designs for the First Year Road Projects are completed and the proposed facilities are limited within the government land. The Short Resettlement Plan (SRP) is required in case there are social and resettlement impacts. The Status of Short Resettlement Plans for contract packages is given below:

Sl. No.

Description of Contract Package Status of SRP

First Year Projects1. Strengthening and upgrading of existing Road from Ranka

to Sajong (9km)No Land Acquisition or Resettlement Impact- SRP not required

2. Strengthening and upgrading of existing road from:(v) Pelling to Tikjuk Junction (vi) Access road to Pemayangtse Monastery; (vii) Peling Zero Point to Pelling Helipad(viii) Yuksom Bazaar to Yuksom Helipad

No Land Acquisition or Resettlement Impact- SRP not required

Second Year Projects

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3.Strengthening and upgrading of road from Damthang to Himalayan Institute of Chemchey (2.36 km)

No Land Acquisition or Resettlement Impact- SRP not required


Status will be ascertained after technical design is finalised

Subsequent Year Projects5.

Environmental up-gradation of Kecheopalri Lake PrecinctStatus will be ascertained after technical design is finalised

Shanti View Point Development



7. Tourism Infrastructure Development & Environmental Improvement of Rumtek Monastery Complex








11. Procurement of Equipments and Training Aids for IHCAE Chemchey

No Civil Works involved in this contract hence no SRP required



3 STATUS OF INITIAL ENVIRONMENT EXAMINATION

3.1. Overall Project Summary

The project promotes environmentally and culturally sustainable and socially inclusive tourism growth. The projects are in the eastern, southern and western districts of Sikkim which lie in the inner range of Himalayan Mountains with no open valley or plains but of varied elevations ranging from 300 to 8585m.

The sub-projects will have positive environmental impacts particularly in and around the cultural heritage sites through the provision of basic infrastructure amenities such as water supply, sanitation facilities, and solid waste management. All the sub-projects are outside protected areas except the Singalila Ecotourism Promotion zone. The work in Singalila trek will be limited to existing trek and camp sites and will result in positive environmental impacts including reducing erosion, and preventing trekkers from going to the sensitive areas outside the trails.

In case of connectivity enhancement project the proposed interventions are within the existing right of way of the roads and government land. There is no likelihood of impacts on local community due to these sub-projects. The potential adverse impacts are construction related which are of limited intensity and of short duration and can be addressed through proven mitigation measures and adoption of good engineering practices.

The detailed designs are prepared for the First Year Road Projects and the projects are categorized under Category B as per the REA checklist and ADB Guidelines. The designing for

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other contract packages are under progress and the environmental categorisation for them will be done once the designs are finalised.

4. ACTIVITIES DURING QUARTER Ending March 2013

4.1. Activities during January 2013

S. No.

Description of Contract Package Activity Date

First Year Projects1. Strengthening and upgrading of existing Road from

Ranka to Sajong (9km)IFB for Re-Bid NCB-01R2 issued

Rebid NCB-01 R2 open

TBER prepared and submitted to DoT

Price Bid opened

PBER submitted to ADB

30th July 2012

3rd Sept 2012

15th Oct 2012

30th Nov 2012

17th Jan 2013

2. Strengthening and upgrading of existing road from:(i) Pelling to Tikjuk Junction (ii) Access road to Pemayangtse Monastery(iii) Peling Zero Point to Pelling Helipad(iv) YuksomBazaar to Yuksom Helipad

Agreement signed between DoT and M/S MK Gupta & Co. signed

Contractor and PMDCSC staff mobilized to site

Mobilization Advance for Rs. 1.25 Crores released

Work in progress

30th April 2012

26th June 2012

17th Oct 2012

Second Year Projects

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3. Strengthening and upgrading of road from Damthang to Himalayan Institute of Chemchey (2.36 km)

Topographical Survey and Road Inventory completed.

Draft Design work completed.

Final DPR prepared and submitted to DoT.

IFB issued

29th June 2012

20th Oct 2012

6th Dec 2012

17th Jan 2013


Preliminary Assessment Report revised and included in the final IR.Detailed Design to be taken up

-


Environmental up-gradation of Kecheopalri Lake Precinct

Environmental Report prepared and being finalised.

-

Shanti View Point Development Topographical Survey completed. Architectural Design work in progress

-


Land to be acquired -


Methodology for Project Design and implementation prepared in detail and included in IR. The detail plans under preparation by Physical Planner, Landscape Architect and Cultural Heritage Expert.

-


Topographical Survey completed

-

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International Experts mobilised

Visits to Govt. Departments, Home Stays, Base Camps, Trek, Trails and Village Tourism Sites initiated.

Reports submitted by International Eco-Tourism Experts & National Experts are under study

7th Oct & 5th Nov 2012

Oct’12 and Nov’12

-



Visits to Govt. Departments, Home Stays, Base Camps, Trek and Trails initiated.



Oct’12 and Nov’12

-

10. Institute of Himalayan Culture and Adventure Ecotourism (IHCAE), Chemchey Infrastructure & Facility Development

Topographical Survey completed.Physical Survey work completed along with drawings.

Further activity to be initiated on arrival of Adventure Expert.

IFB for appointment of DTA invited and Bids opened.

Oct 2012

-

15th Oct 2012

11.Procurement of Equipments and Training Aids for IHCAE Chemchey


15th Oct 2012

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Oct–Dec 2012

-

4.2. Activities during February 2013

S. No.


First Year Projects1. Strengthening and upgrading of existing Road

from Ranka to Sajong (9km)IFB for Re-Bid NCB-01R2 issued



Price Bid opened


Acceptance letter issued to single Responsive

30th July 2012

3rd Sept 2012

15th Oct 2012

30th Nov 2012

17th Jan 2013

16th Feb 2013

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Bidder2. Strengthening and upgrading of existing road

from:(i) Pelling to Tikjuk Junction (ii) Access road to Pemayangtse Monastery(iii) Peling Zero Point to Pelling Helipad(iv) YuksomBazaar to Yuksom Helipad




Work in progress

30th April 2012

26th June 2012

17th Oct 2012

Second Year Projects3. Strengthening and upgrading of road from

Damthang to Himalayan Institute of Chemchey (2.36 km)




IFB issued

29th June 2012

20th Oct 2012

6th Dec 2012

17th Jan 2013

4. Refurbishment and Development of Guru Padmasambhawa Statue Complex, Samdruptse

Preliminary Assessment Report revised and included in the final IR.Detailed Design to be taken up

-


Environmental up-gradation of Kecheopalri Lake Precinct

Environmental Report prepared and being finalised.

-

Shanti View Point Development Topographical Survey completed. Architectural Design work in progress

-




Methodology for Project Design and implementation prepared in detail and included in IR.

Sub-Grade Soil Investigation completed.

Concept plan completed along with cross sections of the built-up components to be integrated with the Architectural Designs

-

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completed by Landscape Architect.






-

7th Oct 2012 and

5th Nov 2012

Oct’12 and

Nov’12

-

9. Improvement of Singalila Trek and provision of basic amenities





Oct’12 and

Nov’12

-

10. Institute of Himalayan Culture and Adventure Ecotourism (IHCAE), Chemchey Infrastructure & Facility Development




Oct 2012

-

15th Oct 2012



15th Oct 2012

12. Village Tourism for Rey-Mindu (East Sikkim), International Experts 7th Oct &

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Damthang (South Sikkim) and Uttarey (West Sikkim)

mobilised



5th Nov 2012

Oct–Dec 2012

-

4.3. Activities during March 2013

S. No.


First Year Projects1. Strengthening and upgrading of existing Road

from Ranka to Sajong (9km)IFB for Re-Bid NCB-01R2 issued



Price Bid opened


Acceptance letter issued to single Responsive Bidder

30th July 2012

3rd Sept 2012

15th Oct 2012

30th Nov 2012

17th Jan 2013

16th Feb 2013

2. Strengthening and upgrading of existing road from:

(i) Pelling to Tikjuk Junction (ii) Access road to Pemayangtse Monastery(iii) Peling Zero Point to Pelling Helipad(iv) YuksomBazaar to Yuksom Helipad




Rs. 11.097 lakhs released to the Party against first R.A bill.

30th April 2012

26th June 2012

17th Oct 2012

30th Mar 2013

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Work in progress

Second Year Projects3. Strengthening and upgrading of road from

Damthang to Himalayan Institute of Chemchey (2.36 km)




IFB issued

Technical Bids opened

Price Bid opened

PBER submitted to ADB for approval

29th June 2012

20th Oct 2012

6th Dec 2012

17th Jan 2013

4th Mar 2013

28th Mar 2013

30th Mar 2013


Preliminary Report included in the final IR.Recommendation for a separate detailed study included in the Inception Report. Geo-Technical Survey completed.

TOR for Detail Structural Study submitted to DoT for approval

-

Subsequent Year Projects5. Environmental up-gradation of Kecheopalri Lake

PrecinctStudy Report from the Environmental Safeguard

-

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Expert has been received in electronic form and is finalized and submitted.

Shanti View Point Development Topographical survey and Sub-Grade Soil Investigation completed. Architectural Design completed by Physical Planner. Landscape Development is in process by Landscape Architect.

-




Methodology for Project Design and implementation prepared in detail and included in IR.

Sub-Grade Soil Investigation completed.

Concept plan completed along with cross sections of the built-up components to be integrated with the Architectural Designs completed by Landscape Architect.

Working Drawing & Detailed Design under process.

-






Concept plan for Development of Base Camps prepared and is under scrutiny

-


Oct’12 and

Nov’12

-

22nd

March 2013

9. Improvement of Singalila Trek and provision of International Experts 7th Oct &

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basic amenities mobilised



5th Nov 2012

Oct’12 and

Nov’12

-





Oct 2012

-

15th Oct 2012



15th Oct 2012






Oct–Dec 2012

-

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5. ADB LOAN COVENANTS COMPLIANCE STATUSADB Loan Covenants Compliance Status

Table 5.1: Covenants and Status Report of Compliance (Loan Agreement between India and ADB)

Reference in FA

Major Covenants Status of Compliance

1 LA, Schedule 5Para. 1

Sub regional Task ForceSub regional Task Force - Together with India and the People's Republic of Bangladesh, Nepal shall establish and maintain a Sub regional Task Force (STF) for purposes of the South Asia Tourism Infrastructure Development Project and ensure adequate representation from its Ministry of Finance, MOTCA, CAAN and LDT in the STF. The STF shall

(i) coordinate the national components of sub regional tourism circuits developed as part of the Project,

(ii) review the Project's progress and address key issues, and

(iii) Monitor the sub regional actions set out in the Sustainable Heritage and Tourism Action Plan attached as Appendix 4 to the RRP.

STF established


National Project Steering CommitteeFor the entire duration of the Project, India shall maintain a National Project Steering Committee (NPSC) comprising representatives from the Department of Economic Affairs from India’s Ministry of Finance and representatives from DOT. India shall designate the Secretary of the Ministry of Tourism as chair of the NPSC. The NPSC shall supervise and provide guidance on the implementation of the Project to the SLSC, especially in relation to any sub regional aspects of the Project. The NPSC shall meet annually, preferably prior to the annual meeting of the STF.

NPSC yet to be formed. Reminder being sent to Government to India


State Level Steering CommitteeFor the entire duration of the Project, State of Sikkim shall maintain a State Level Steering Committee (SLSC) comprising representatives from DOT and State of Sikkim's Departments of Finance, Public Works, Forestry, Cultural Affairs and Heritage, Urban Development and Housing, Rural Development, and the Ecclesiastical Department. State of Sikkim shall designate the Chief Secretary as head of the SLSC. The SLSC shall supervise and provide guidance on the implementation of the Project to the PMIU, pursuant to which it shall(i) facilitate coordination and cooperation among

agencies involved in project implementation and release of resources,

(ii) take action to ensure that project management and implementation arrangements are in place,

(iii) oversee Project progress and monitor the implementation of the Sustainable Heritage and Tourism Action Plan, and address key issues, and

(iv) Provide policy guidance and support to the PMIU. The SLSC shall meet quarterly.

The SLSC shall meet half yearly. The SLSC shall prepare and submit

SLSC established

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Reference in FA


annual progress reports to the STF through the NPSC. 4 LA,

Schedule 5Para. 4

Role of DOT; Project Management and Implementation UnitIndia shall designate State of Sikkim, acting through DOT, as the Project Executing Agency. Within DOT, State of Sikkim shall establish and maintain a Project Management and Implementation Unit (PMIU), headed by a full-time Project Director, for overall management and implementation, including, without limitation, of

(i) detailed design and construction supervision; (ii) procurement of goods works, and services for the

Project; (iii) contract administration;(iv) management of the Project accounts, including

processing disbursement requests, operation of the imprest accounts and preparation of financial statements;

(v) monitoring and reporting on Project implementation in compliance with the provisions of this Loan Agreement and the Project Agreement; and

(vi) coordination, support, and liaison activities as required.

The PMIU will maintain project implementation units (PIU) in South Sikkim and West Sikkim to oversee implementation and construction activities in the field.

PMIU established. PIUs designated in South Sikkim and West Sikkim. PIU (West) to be operational by 31 May 12


State of Sikkim shall ensure that the PMIU employs sufficient staff with adequate 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. State of Sikkim shall keep the PMIU equipped with the necessary office space, facilities, equipment, support staff and management information systems for the entire duration of the Project.

PMDCSC recruited and mobilized. Experts of the consultancy firm is providing 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. DoT has also designated one officer in the PMIU as a focal person who would be responsible for monitoring and reporting the social and environmental safeguard requirements.


Sustainable Heritage and Tourism Action PlanState of Sikkim (through DOT, the Department of Finance, Department of Forest and the Urban Development and Housing Department) shall take all necessary steps to

Being complied. Actions to be taken are being initiated by DoT

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Reference in FA


complete the actions for which it is responsible under the Sustainable Heritage and Tourism Action Plan attached as Appendix 4 to the RRP, on schedule and in a manner satisfactory to ADB.


Counterpart Funds State of Sikkim shall make available all counterpart funds required for timely and effective implementation of the Project, including any funds required to make land available for the Project, to mitigate unforeseen environmental and social impacts and to meet additional costs arising from design changes, price escalation in construction costs and/or unforeseen circumstances. State of Sikkim shall make the resources thus required available on an annual basis for each fiscal year.

Counterpart funds available


Operation and Maintenance of the Project facilitiesState of Sikkim shall ensure that sufficient funds are provided to meet any shortfall between the cost and revenues for the operation and maintenance of the Project facilities

Not yet due


Environmental safeguards State of Sikkim shall ensure that (a) the Project is carried out in accordance with the project design, and construction and operations will comply with applicable national and local environmental laws and ADB's Environment Policy (2002); (b) the relevant environmental mitigation measures specified in the Environmental Management Plans are incorporated in tender and bidding documents; (c) Works contractors' specifications include requirements to comply with the environmental mitigation measures contained in the Environmental Management Plans; (d) Works contractors are closely supervised to ensure proper implementation of mitigation and management measures; (e) the Project environmental performance will be monitored; and (f) a monitoring report describing the progress in implementing the Environmental Management Plans and measures adopted to address environmental issues, if any, is prepared and submitted annually to ADB.

Being Complied.


Resettlement and Land AcquisitionState of Sikkim shall, subject to compliance with the relevant provisions of the Resettlement Plan and the Environmental Management Plans and in accordance with all applicable laws and regulations of India and State of Sikkim, acquire or make available the land and rights to land required for commencement of construction activities of the Project facilities in accordance with the schedule agreed under the related Works contract, and will have cleared the utilities, trees and any other obstruction from such land.

Being Complied.


State of Sikkim shall ensure that the Resettlement Plan, including compensation and entitlements for affected households and persons, is implemented in conformity with all applicable laws and regulations of India and State

Being Complied.

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Reference in FA


of Sikkim, as amended from time to time, and the entitlement benefits as listed in India’s and State of Sikkim's applicable laws and ADB’s Involuntary Resettlement Policy (1995).


State of Sikkim shall ensure that people affected by the Project are fairly compensated in a timely manner in accordance with all applicable laws and regulations of India and State of Sikkim, ADB’s Involuntary Resettlement Policy and the Resettlement Plan, and that payments will be made in a timely manner, prior to dispossession from land and other assets. State of Sikkim shall submit progress and completion reports on land acquisition and resettlement under the quarterly progress reports.

Being Complied.


State of Sikkim shall ensure that prior to land acquisition and any resettlement for the Project, the Resettlement Plan, including its update based on consensus of the affected persons, is disclosed with all necessary information made available to persons affected by the Project and confirm that it be uploaded onto the ADB website.

Being Complied.


State of Sikkim shall ensure that essential public infrastructure that may be affected by land acquisition and resettlement is replaced, as appropriate, in an expeditious manner in accordance with the Resettlement Plan.

Being Complied.


State of Sikkim shall ensure that construction contracts contain binding requirements for construction contractors to fully reinstate pathways, other local infrastructures, and agricultural land to at least their pre-project condition upon construction completion. State of Sikkim shall adequately record the condition of roads, agricultural land and other infrastructure prior to transport of material and construction commencement.

Being Complied.


State of Sikkim shall establish, within 3 months of the Effective Date, a grievance redress committee or committees with representation from all stakeholders in the Project facilities for addressing any grievances from affected peoples concerning resettlement, environment and any other social issues in a timely manner, misuse of funds or any other irregularities.

Being Complied.


Any changes to the location, land alignment, or social or environmental impacts on account of detailed designs shall be subject to prior approval by ADB.

Being Complied.


Indigenous PeoplesState of Sikkim shall ensure that the Project will not negatively impact vulnerable groups, such as indigenous peoples. In the unforeseen event that indigenous people are affected by the Project, State of Sikkim shall ensure that the Project complies with applicable laws and regulations of India and State of Sikkim and ADB’s Policy on Indigenous Peoples (1998).

Being Complied.


Social and Other Matters State of Sikkim shall ensure that the bidding documents for the Works contracts include specific provisions to ensure that the Works contractors

Being Complied.

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Reference in FA


(a) comply with applicable labour laws of India and State of

Sikkim and incorporate applicable workplace occupational safety norms; (b) disseminate, or engage appropriate service providers to disseminate, information on the risks of sexually transmittable infections, including HIV/AIDS, to the employees of Works contractors engaged under the Project and to members of the local communities surrounding the Project facilities, particularly to females; and (c) follow and implement all statutory provisions on labour (including the prohibition on employment of child labour, forced or compulsory labour and the requirement to provide equal payment for equal work, regardless of gender or caste); and (d) to the extent possible, maximize employment of local poor and disadvantaged persons for construction purposes, provided that the requirements for efficiency are adequately met.


State of Sikkim shall ensure that the Project considers gender issues at all appropriate stages of the project particularly during design, and that the Project will be carried out in accordance with ADB's Policy on Gender and Development (1998).

Being complied.


State of Sikkim shall announce the Project and business opportunities associated with the Project on its websites. In addition, the websites shall at least disclose the following information in relation to goods and services procured for the Project:

(i) the list of participating bidders, (ii) the name of the winning bidder, (iii) the amount of the contracts awarded, and (iv) the goods and services procured.

Being complied.


Performance Monitoring and Reporting India and State of Sikkim shall ensure that within 3 months of the Effective Date, a Project Performance Monitoring System (PPMS) shall have been established in a form and with a composition acceptable to ADB, based upon the PPMS indicators agreed upon between India and ADB. State of Sikkim shall collect base line data for performance monitoring and undertake periodic Project performance review in accordance with the PPMS to evaluate the scope, implementation arrangements, progress and achievements of objectives of the Project.

Being Complied. Outline of the PPMS to be submitted along with the Inception Report prepared by PMDCSC


Review ADB, India and State of Sikkim shall meet regularly as required to discuss the progress of the Project and any changes to implementation arrangements or remedial measures required to be undertaken towards achieving the objectives of the Project.

Being complied.

24 LA, ADB, India and State of Sikkim shall jointly undertake a Being Complied.

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Reference in FA


Schedule 5Para. 24

comprehensive mid-term review of the Project. The mid-term review shall assess the Project’s achievements and progress in implementing the Project against the PPMS indicators and the project implementation schedule in order to identify any difficulties or constraints encountered in implementing the Project and to make adjustments, if necessary, for the remaining project implementation period. In particular, the mid-term review shall, among others, evaluate the Project scope, costs, overall implementation progress, and status of compliance with loan covenants.

Table 5.2: Covenants and Status Report of Compliance (Project Agreement between ADB and State of Sikkim)

Reference in PA Major Covenants Status of Compliance1 PA, Article II,

Section 2.01 (a) State of Sikkim shall carry out the Project with due diligence and efficiency, and in conformity with sound administrative, financial, engineering, and environmental and airport management practices.

Being Complied.

2 PA, Article II, Section 2.01

(b) In the carrying out of the Project and operation of the Project facilities, State of Sikkim shall perform all obligations set forth in the Loan Agreement to the extent that they are applicable to the State of Sikkim.

Being Complied.


State of Sikkim shall make available, promptly as needed, the funds, facilities, services equipment, land and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Project.

Being Complied.


(a) In the carrying out of the Project, State of Sikkim shall employ competent and qualified consultants and contractors, acceptable to ADB, to an extent and upon terms and conditions satisfactory to ADB.

Being Complied. Contractors to be selected using the procurement procedures in the Loan Agreement and Procurement Guidelines


(b) Except as ADB may otherwise agree, all Goods, Works and Consulting Services shall be procured in accordance with the provisions of Schedule 4 to the Loan Agreement. ADB may refuse to finance a contract where Goods, Works or Consulting Services have not been procured under procedures substantially in accordance with those agreed between India and ADB or

Being Complied.

Page | 29

Reference in PA Major Covenants Status of Compliancewhere the terms and conditions of the contract are not satisfactory to ADB.


State of Sikkim shall carry out the Project in accordance with plans, design standards, specifications, work schedules and construction methods acceptable to ADB. State of Sikkim shall furnish, or cause to be 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.

Being Complied.


(a) State of Sikkim shall take out and maintain with responsible insurers, or make other arrangements satisfactory to ADB for, insurance of the Project facilities to such extent and against such risks and in such amounts as shall be consistent with sound practice.

Being Complied.

8. PA, Article II, Section 2.05

(b) Without limiting the generality of the foregoing, State of Sikkim undertakes to insure, or cause to be insured, the Goods to be imported for the Project and to be financed out of the proceeds of the Loan against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such Goods.

Being Complied.


State of Sikkim shall maintain, or cause to be maintained, records and accounts adequate to identify the Goods, Works Consulting Services and other items of expenditure financed out of the proceeds of the Loan, to disclose the use thereof in the 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.

Being Complied.


(a) ADB and State of Sikkim shall cooperate fully to ensure that the purposes of the Loan will be accomplished.

Being Complied.


(b) State of Sikkim shall promptly inform ADB and India of any condition which interferes with, or threatens to interfere with, the progress of the Project, the performance of its obligations under this Project Agreement, or the accomplishment of the purposes of the Loan.

Being Complied.

Page | 30

Reference in PA Major Covenants Status of Compliance


(c) ADB and State of Sikkim shall from time to time, at the request of either party, exchange views through their representatives with regard to any matters relating to the Project, State of Sikkim and the Loan.

Being Complied.


(a) State of Sikkim shall furnish to ADB all such reports and information as ADB shall reasonably request concerning (i) the Loan and the expenditure of the proceeds thereof; (ii) the Goods, Works, Consulting Services and other 3 items of expenditure financed out of such proceeds, (iii) the Project; (iv) the administration, operations and financial condition of State of Sikkim; and (v) any other matters relating to the purposes of the Loan.

Being Complied.


(b) Without limiting the generality of the foregoing, State of Sikkim shall furnish to ADB quarterly reports on the execution of the Project and on the operation and management of the Project facilities. Such reports shall be submitted in such form and in such detail and within such a period as ADB shall reasonably request, and shall indicate, among other things, progress made and problems encountered during the quarter under review, steps taken or proposed to be taken to remedy these problems, and proposed program of activities and expected progress during the following quarter.

Being Processed.


(c) Promptly after physical completion of the Project, but in any event not later than three (3) months thereafter or such later date as ADB may agree for this purpose, State of Sikkim shall prepare and furnish to ADB a report, in such form and in such detail as ADB shall reasonably request, on the execution and initial operation of the Project, including its cost, the performance by State of Sikkim of its obligations under this Project Agreement and the accomplishment of the purposes of the Loan.

Not yet due


State of Sikkim shall (i) maintain separate accounts for the Project; (ii) have such accounts and related financial

APA for FY 2010-11 submitted

Page | 31

Reference in PA Major Covenants Status of Compliancestatements (balance sheet, statement of income and expenses, and related statements) audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; and (iii) furnish to ADB, promptly after their preparation but in any event not later than 6 months after the close of the fiscal year to which they relate, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use of the Loan proceeds and compliance with the covenants of the Loan Agreement as well as on the use of the procedures for the imprest accounts and statement of expenditures), all in the English language. State of Sikkim shall furnish to ADB such further information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.


State of Sikkim shall enable ADB's representatives to inspect the Project, the Goods and Works financed out of the proceeds of the Loan and any relevant records and documents.

Being complied.


Except as ADB may otherwise agree, State shall not sell, lease or otherwise dispose of any of its assets which shall be required for the efficient carrying on of its operations or the disposal of which may prejudice its ability to perform satisfactorily any of its obligations under this Project Agreement.

Being complied.


Except as ADB may otherwise agree, State of Sikkim shall apply the proceeds of the Loan to the financing of expenditures on the Project in accordance with the provisions of the Loan Agreement and this Project Agreement, and shall ensure that all Goods, Works and Consulting Services are used exclusively in the carrying out of the Project.

Being complied.

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6. CONSULTANT STAFFING

6.1 Mobilisation of Key Personnel during Quarter Ending March 2013

Sl. Consultancy Scheduled No of Key Experts

Key Experts Present during Quarter Ending December ‘12

Jan ‘13 Feb ‘13 March ‘13A) Project Management and Design Team1 Team Leader cum

Project Management Specialist

1 1 1 1

2. Civil Engineer/Acting Team Leader

1 - - -

3. Physical Planner Land Use & Regional

1 1 1 1

4. Eco Tourism Planner 1 - - -5. Landscape Architect 1 - - -6. Marketing & Tourism

Promotion Expert1 - - -

7. Cultural Heritage Management Expert

1 - - -

8. Procurement Specialist 1 1 1 -9. Safeguard Specialist

Social1 - - -

10. Financial Management Specialist

1 1 - 1

11. Bridging & Highway Engineer

1 1 - 1

12. Eco-Tourism Planner/Engineer (International)

1 - - -

13. Nature & Culture based Tourism Institutional Development Specialist (International)

1 1 - -

B) Construction Supervision Team14. Civil Engineer – Deputy

Team Leader1 - - -

15. Environmental Engineer/Planner

1 1 1 1

16. Highway Engineer 1 1 1 117. Field Engineers 8 2 2 2

7. PROGRESS OF WORKSThe Physical and Financial Progress of works for the Quarter ending December 2012 is presented in the following table (on following pages):

Page | 33

7.1 Physical and Financial Progress of Works- Civil Works and Procurement of Goods and Equipments.

Civil Works and Procurement of Goods and EquipmentsS. No.

Contract Package No.

Package Description

Technical Specifica-tions

Date of Signing of Contract

Date of Completion as per Contract

Contract Package Cost- Engineer’s Estimated (In Million Rs)

Progress upto Quarter ending March2013 Expenditure

Contractor PCSS No.

Status / Progress Critical Issues or Reasons for slow progress

Contracted Amount in INR Mn

Des

ign

Con

stru

-ct

ion

Upto Quarter ending December2012

During Quarter ending March 2013

Cumulativeupto Quarter ending March 2013

Contracts Awarded1. None - - - - - - - - - - -Contracts Tendered1. NCB-1 Road from

Ranka to Sajong

9 km - - 114.82100 % -

- - - - IFB for Re-Bid NCB-

01R2 issued on 30th July ’12. Re-Bid opened on 3rd Sept ‘12Price Bid opened on 30th November ‘12Acceptance letter issued to single Responsive Bidder on 16th February ‘13

Responsive Bidder to submit

Performance Guarantee

143.347

2. NCB-2 Roads in West Sikkim

8 km 30 Apr 2012

- 126.369100 % 10 %

INR12.5

Million

INR1.109

Million

INR13.609 Million

-Agreement Signed. Work at site taken in hand

Mobilization Advance INR 12.5 Million released on 17th Oct 2012 and first R.A bill released on 30th Mar 2013

143.5

Page | 34



Package Description






Contractor PCSS No.



Des

ign

Con

stru

-ct

ion




Contracts to be Tendered3. NCB-3 Damthang to

Himalayan Institute Road

2.36 km - - 54.312 100 % - - Final DPR submitted to DoT on 6th December ‘12IFB issued on 17th

January ‘13Bids opened on 4th

March ‘13Price Bid opened on 28th March ‘13

PBER under scrutiny by ADB

4. - Refurbishment of GPS Statue Samdruptse

- - - - 10 % - - Preliminary Investigation Completed

Need to engage Specialised Agency for detail study and remedial measure.

5. - Khecheopalri Lake and Shanti View Point Development

- - - - 5% - - - Topographical Survey & Architectural Design of Shanti View Point completed. Landscape development taken up by Landscape Architect.

Environmental sensitivity of Khecheopalri lake to be ascertained

6. - Multi-Level Parking for Rumtek

- - - - 0% - - - - Site for parking not yet finalised

Page | 35



Package Description






Contractor PCSS No.



Des

ign

Con

stru

-ct

ion




7. - Environmental Improvement of Rumtek Monastery Complex

- - - - 95% - - - Methodology for Project Design & implementation prepared in detail & included in IRConcept Plan completed along with the cross sections of the built- up components to be integrated with Architectural designs completed by Landscape Architect. Detailed Design in progress.

Designs being prepared in consultation with DCC and KCT

8. - Yuksom Base Camp development

- - - - 0% - - - Topographic & Sub Soil Investigation completed

-

9. - Singalila Trek improvement

- - - - 0% - - - Work on development of

Trek, Trail and Base Camps have been

initiated on arrival of International Experts. Reports

Submitted by them are under study for

-

Page | 36



Package Description






Contractor PCSS No.



Des

ign

Con

stru

-ct

ion




their utilisation in formulation of

Design Criteria for Trekking Trails, Base Camps etc

10 - IHCAE Infrastructure and Facility Development

- - - - 0% - - - IFB for appointment of

DTA Consultants signed and Bids

opened

Activity to start on arrival of Adventure Expert and appointment of DTA Consultant.

11 - Procurement of equipments and training aids for IHCAE

- - - - - - - -

-

Activity to start on arrival of Adventure Expert and appointment of DTA Consultants.

12 - Village tourism for Rey-Mindu, Damthang and Uttarey

- - - - 0% - - - Activity initiated on arrival of

International Experts and the

reports submitted by them are under

study.

-

Page | 37

7.2 Physical and Financial Progress of Works- Consultancy

ConsultancyS. No. Contract Package Description Consultant’s

NamePCSS No. Date of

Signing Contract

Contract Package Cost(Estimated)

Expenditure

Contracted Amount in INR

Upto Quarter ending December 2012


CumulativeUpto Quarter ending March 2013

1 2 3 4 5 6 7 8 91. Project Management Design and Supervision

ConsultantsSMEC International Pty Ltd

- 16 August 2011

INR 110.7 Million

INR 3.620 Million

INR 3.972Million

INR 7.592Million

INR 74.82 Million + Euro 0.16 Million

2. DTA Consultants for Curriculum and Operationalisation Plan for IHCAE Chemchey

- - - - - - -

3. DTA Consultants for Community Capacity Building for Village Tourism Sub-Projects

- - - - - - -

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Sikkim Tourism

Documents

Transcript of Sikkim Tourism