Selection of O&M Operator for 12 Tourism Projects in 5 Districts on PPP in Himachal Pradesh
Project Overview
Project: Selection of O&M Operator for 12 Tourism Projects funded under ADB-SITDB on PPP in Himachal Pradesh.
Location: 5 Districts, Himachal Pradesh
Duration: Aug. 2025 – Jul. 2026 (Ongoing)
Client: HP Tourism Development Board, Shimla
Brief Description of the Project
The Sustainable and Inclusive Tourism Development Project (SITDP), launched by the Government of Himachal Pradesh (GoHP) with financing support from the Asian Development Bank (ADB), is designed to enhance the state’s tourism sector through the development of high-quality, sustainable, and inclusive infrastructure. The project aligns with the Himachal Pradesh Tourism Policy 2019 and ADB’s operational priorities on green growth, gender equality, climate resilience, and private sector participation.
Under SITDP, total of 18 sub-projects is planned across the districts of Hamirpur, Kangra, Kullu, Mandi, and Shimla, aimed at improving tourism infrastructure, enhancing visitor experiences, generating employment, and promoting environmentally sustainable practices. Of these, 12 sub-projects have been earmarked to be developed on PPP format at this stage.
Services Provided
The scope of work included end-to-end transaction advisory services covering demand assessment, technical due diligence, financial modelling, PPP structuring, market outreach and bid
process support.
Demand & Revenue Assessment:
Conducted detailed market research to define target customers, analyze historical tourism flows, identify demand drivers, and assess user preferences and willingness-to-pay. Primary surveys and stakeholder consultations were undertaken to validate demand potential. Developed 15-year demand forecasts under multiple scenarios, incorporating seasonality and external factors. Estimated tariffs/rentals and projected revenues based on scenario-wise demand and benchmarking with comparable projects.
Technical Assessment:
Reviewed existing DPRs for all sub-projects and evaluated technical feasibility from a PPP operations perspective. Identified design, construction and O&M risks and proposed improvements to enhance bankability. Validated project costs and lifecycle O&M requirements using industry standards, and prepared all technical inputs required for PPP implementation.
Commercial & Financial Analysis:
Developed a comprehensive 15-year financial model including capex, O&M, cash flows, financial statements, NPV/IRR analysis, sensitivity testing and scenario analysis. Prepared a shadow bid framework and reviewed risk allocation assumptions. Supported financial evaluation of bids and provided required modelling guidance and documentation.
PPP Structuring:
Prepared Project Structuring Reports outlining suitable PPP models, clustering options, roles and responsibilities, risk allocation frameworks, bid parameters and eligibility criteria. Provided commercial and technical inputs for drafting term sheets and bid documents.
Market Outreach & Bid Management:
Supported preparation of Project Information Memoranda and market engagement with potential private partners. Assisted in RFQ/RFP preparation, pre-bid meetings, bidder clarifications and evaluation of technical and financial proposals through to issuance of the Letter of Award.
Implementation Support:
Provided post-award assistance up to fulfillment of Conditions Precedent, including review of submissions, compliance checks and support to the Client in contract operationalization.