KATHMANDU: Asian Development Bank (ADB) has approved $57.5 million (around NRs 265.6 crore) in grants and loans to India, Nepal and Bangladesh to develop major tourism sites, including Buddhist sites under the South Asia Tourism Infrastructure Development Project.

The project will improve existing infrastructure and services and develop new ones in key tourism sites in the three countries. It is expected to be completed by September 2014.

Besides ADB support, governments of these three countries and the Organisation of Petroleum Exporting Countries (OPEC) Fund for International Development, will provide the remaining project cost of $89.5 million (around NRs 413.5 crore).

While India will receive a loan of $20 million equivalent from ADB’s capital resources Bangladesh will get a $12 million on Asian Development Fund (ADF) loan and Nepal will get $12.75 million in grants and $12.75 million as loan equivalent, both from ADB’s concessional ADF.

Gulfer Cezayirli, Principal Urban Development Specialist at ADB’s South Asia Department, said tourism plays an important role in the regional economy and this project will benefit around 2.4 million people.

“The benefit to people will come through increased income and employment, health and environmental improvements and reduced travel time,” he added.