pc-i 2011-12 500m md corrected.doc

SPORTS, TOURISM, ARCHAEOLOGY & MUSEUMS AND YOUTH AFFAIRS DEPARTMENT,

GOVERNMENT OF KHYBER PAKHTUNKHWA

TOURISM CORPORATION13-A, Attached Building Complex, Khyber Road,

Peshawar. Phone: 9211091 – Fax: 9210871

P C - I

OF THEUMBRELLA SCHEME NAMELY

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA

(ENDOWMENT FUND)(PRESENTATION TO PDWP)

ADP 2011-2012, REFLECTED AT SERIAL NO. 719 WITH COMPUTER NO.110561, HAVING COST AND

ALLOCATION OF RS:500.000 MILLION (ON THE REVENUE SIDE)

TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND)TOURISM DEVELOPMENT ACTIVITIES IN KHYBER PAKHTUNKHWA (ENDOWMENT FUND) 1 | P a g e

Revised 2005

GOVERNMENT OF PAKISTANPLANNING COMMISSION

PC-I FORM(SOCIAL SECTORS)

1. Name of the project : PC-I of the Umbrella scheme namely Tourism Development Activities in Khyber Pakhtunkhwa (Endowment Fund)

2. Location Khyber Pakhtunkhwa

3. Authority responsible for

i. Sponsoring Tourism Department, Government of Khyber Pakhtunkhwa.

ii. Execution Tourism Corporation, Peshawar.

iii. Operation and maintenance Tourism Corporation, Peshawar.

iv. Concerned federal ministry Tourism Department, Government of Khyber Pakhtunkhwa.

4. Plan provision The scheme namely PC-I of the Umbrella scheme namely Tourism Development Activities in Khyber Pakhtunkhwa (Endowment Fund) has been proposed in the ADP 2011-2012, reflected at serial No. 719 with computer no.110561, having cost and allocation of Rs:500 million (on the revenue side).

5. Project objectives and its relationship with Sector’s objectives: The scheme has been prepared to increase the

flow of domestic tourists to Khyber Pakhtunkhwa besides equipping the Tourism Corporation to become self-sustainable with the provision of endowment funds of Rs. 500 million, the profit of which shall be used to run the affairs of the corporation. At the same time the provincial government has committed the transfer of 10 rest houses initially to be utilized for tourism promotion in the province and raising revenues for the corporation for sustainable investment in tourism without extra regular annual burden on the provincial exchequer.


6. Description, justification and technical parameters The proposed scheme is in line with the policy of

the provincial government to strengthen the devolved subject of tourism as an industry in the next decade and at the same time aiming for creating a conducive environment that in turn is expected to enhance the soft image of Khyber Pakhtunkhwa on the one hand while making tourism as a venture for income generation by the local communities on another. The thrust of the activities is to generate opportunities for healthy recreation that is in consonance with the local heritage, traditions and norms. It also incorporates promotional activities, creation of tourism facilities for generating ample income to support the communities while at the same time be an auto system that expands and grow for accelerating economic activity at grass root level. It also incorporates the notion of provision for logistics for the holding of regular tourism propagating events throughout the province thereby defeating militancy by means of this cultural offensive.

7. Capital cost estimates:

The following is the procedure for utilization of the proceeds received on the endowment fund of Rs. 500.000 million reflected at serial No. 719 with computer No.110561:

The amount Rs. 500 million reflected at serial No. 719 with computer No.110561, having cost and allocation of Rs:500 million (on the revenue side) to be kept in bank or development financial institutions etc. on maximum interest rate.

The Bank and type of deposit to be decided by a committee under Managing Director with following as members:

General Manager(Admn). General Manager (P&D). Manager Admin & Properties. Controller Accounts.

The above measure would be approved by the Boards of Directors.

Only the profit accrued for the said amount would be spent on events which are approved by the Board of Director in a detailed presentation for the purpose. The principal amount will remain intact.

Event would be such as to

o Enhance the corporate image of the corporation.o Promote tourism in the province.o Improve the soft image of the province.o Open up new avenues of tourism in the province.


Members of Board of Director are:

I. Minister for Tourism, Chairman

II. Chief Secretary, Government of KPK Director

III. Additional Chief Secretary, P&D Deptt: KPK Director

IV. Secretary S&GAD Department Director

V. Secretary Finance Department Director

VI. Secretary Tourism Department Director

VII. Secretary Forest Department Director

VIII. Secretary Law Department Director

IX. The Director General, Environmental Protection Agency Director

X. The Director Galyat Development Authority, Abbottabad/

The Commissioner, Hazara Division, Abbottabad. Director

XI. The Director Archeology, Peshawar Director

XII. Managing Director, Bank of Khyber Director

XIII. Managing Director, TCKP Director

XIV. General Manager, TCKP Secretary

8. Annual operating and maintenance cost after completion of the project: The sub schemes would be operated through the

private sector on public-private partnership basis wherever feasible and on sponsorship through mutual collaboration with interested agencies, such as Development Financial Inititutions, NGOs, INGOs, Local communities etc. The recurring expenditure of sub schemes operated and maintained by TCKP would be met out from the proceeds of the activities after levying nominal ticketing, surcharge in ordered to make it self sustainable in the long run.

9. Demand and supply There is enormous potential for tourism in the Khyber Pakhtunkhwa scenic beauty and hills in the north, Ghandara civilization and other rich cultural heritage in the plains and archeological sites and rugged terrain in the south. The corporation intends to capitalize on the comparative advantage of the province in the tourism sector in order to make it an income generating venture for the province that finally establish linkages and coordination with similar organization within and outside the province as


well as the neighboring countries of Afghanistan, China and possibly central Asian republic states.

10. Financial Plan and mode of financingRs. in million

--------------------------------------------------------------------------------------------------------------------------Amount for Amount forCapital RecurringSources Expenditure

-------------------------------------------------------------------------------------------------------------------------- I (a) Government sources:

(Federal/Provincial) Provincial

(i) Grant Rs. 500 million endowment fund(ii) Loan NONE(iii) Equity Investment NONE(iv) Direct Government

Expenditure

Note: the Rs. 500 million would be kept in bank of repute and appropriate ranking to be selected after competitive rate for profit selection process for indefinite period starting from 5 years to 15 years. Only the proceeds from the profit so accrued would be utilized for meeting the operational costs of the Tourism Corporation, Khyber Pakhtunkhwa on both the development and non-development side. In the mean while revenue would also be generated in a phased manner from the assets and activities of the corporation to make it a lead organization for the promotion of tourism in sustainable manner.

(b) Sponsoring Agency's ownContribution. Establishment, O&M expenses will be borne by

TCKP from the proceeds of the profit of the Rs. 500 million endowment fund that would be kept in bank of repute and appropriate ranking to be selected after competitive rate for profit selection process for indefinite period starting from 5 years to 15 years. Only the proceeds from the profit so accrued would be utilized for meeting the operational costs of the Tourism Corporation, Khyber Pakhtunkhwa on both the development and non-development side. In addition to above if any special task is assigned by the competent authority it would have to be supported by financial commitment.


(c) Private Investment NONE

(d) Local Body resourcesIf any. NONE

(e) Non-Government borrowing. NONE

(f) Other sources(e.g. Recoveries) NONE

II (a) Likely sources and amount of foreign exchange cost of the project.NIL.

(b) Present position regarding availability, commitment of negotiations.NIL.

Since the scheme is purely financed from the proceeds of the endowment funds that would be kept in bank of repute and appropriate ranking to be selected after competitive rate for profit selection process for indefinite period starting from 5 years to 15 years. Only the proceeds from the profit so accrued would be utilized for meeting the operational costs of the Tourism Corporation, Khyber Pakhtunkhwa on both the development and non-development side.

11. Project benefits and analysis

i. Financial Social benefits with indicatorsThe assets of the corporation are expected to provide a healthy competitive economic environment among the various business venture in the private sector as a lead role model and boost the soft image of KPK. It is further expected that more tourists will be attracted. Moreover the functioning of the corporation is also expected to improve with better logistics and expanding publicity and trend throughout the region and finally around the globe.


ii. Employment generation (direct and indirect) The sub schemes under the umbrella scheme are

expected to directly contribute to the improvement of existing assets/creation of new assets and to enable the corporation to be mobile in the field in order to peruse the notions of promotion of tourism through income generation by the local communities through small scale enterprising activities for elimination of poverty and making tourism as an industry in the province on sound footing.

iii. Environmental impact The initial environmental examination indicates that the proper disposal of sanitation would help in maintaining clean environment.

iv. Impact of delays on project cost and viability All the activities have been casted for the current

FY on current market rates and therefore, no escalation of cost is expected. This current PC-I will be the basis for subsequent PC-Is to be recommended for approval / approved in anticipation by the Managing Director from the Board of Directors in its meeting.

12. Implementation Schedule (including starting and completion dates) The current phase of the scheme has to be

completed by the end of current FY i.e 01-07-2011 through 30-06-2012.

13. Additional projects / decision required to maximize socio-economic benefits from the proposed project. The operationalization of some asset for

demonstrative effect and leasing out of other assets would enable this corporation to set a standard for the private sector. At the same time it would sensitize the local communities for


undertaking tourism as income generating activities at the grass roots level thereby creating employment to the locals especially the youth.

14. Certified that the project proposal has been prepared on the basis of guidelines provided by the Planning Commission for the preparation of PC-I for Social Sectors. The cost estimates are according to the open

market rates.

PREPARED BY:

_________________________(MUHAMMAD TANWEER)

COMPUTER PROGRAMMER, TOURISM CORPORATION

_____________________(SAJJAD HAMEED)

MANAGER ADMINISTRATION & PROPERTIES (P&D),TCKP

CHECKED BY:

_________________________HAYAT ALI SHAH)

GENERAL MANAGER (P&D),TOURISM CORPORATION

__________________________ (MUSHTAQ AHMAD)

GENERAL MANGER (ADMN)TOURISM CORPORATION

APPROVED BY

________________________________(MUHAMMAD AZAM KHAN)

MANAGING DIRECTOR, TOURISM CORPORATION /

SECRETARY TO GOVERNMENT OF KHYBER PAKHTUNKHWASPORTS, TOURISM ARCHEOLOGY,

MUSEUMS AND YOUTH AFFAIRS DEPARTMENT


pc-i 2011-12 500m md corrected.doc

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