World Bank okays $85 million loan for Greater Lumbini Project

KATHMANDU: The World Bank has approved an $85 million loan to Nepal to support the implementation of the Greater Lumbini Area Development Project. The project aims to transform Lumbini, the birthplace of Buddha, and surrounding Buddhist heritage sites into an integrated cultural and pilgrimage tourism destination.

The project seeks to develop a Greater Lumbini Buddhist Circuit by linking Lumbini with Tilaurakot in Kapilvastu, Ramgram in Nawalparasi, and Devdaha in Rupandehi. Tilaurakot is the ancient Shakya kingdom of Kapivlastu, where Siddhartha Gautam spent 29 years of his life, while Devdaha is believed to be the maternal home of his mother, Mayadevi. Likewise, Ramgram is believed to be the only stupa housing Buddha’s bodily relics intact. However, except for Lumbini, the other Buddhist sites are not drawing sufficient visitors due to a lack of publicity and necessary infrastructure. The project intends to create a diversified tourism cluster by combining archaeological, cultural, and spiritual assets within a compact geographical area.

The government had advanced the project concept to position Lumbini as the central hub while integrating other key Buddhist sites in the region.

The project will be implemented through the Ministry of Urban Development and the Ministry of Culture, Tourism, and Civil Aviation. Several institutions, including Lumbini Cultural Municipality, Devdaha Municipality, Ramgram Municipality, and Kapilvastu Municipality, along with the Department of Archaeology, the Lumbini Development Trust, and the Nepal Tourism Board, will also be involved in implementation.

The project will focus on improving infrastructure and services, including road upgrades, drainage systems, bus parks, electrification, meditation centres for Buddhist pilgrims, rest areas, cafés, information centres, and facilities for promoting local products, across three districts.

The financing will be divided into three components: $15 million for destination planning, local economic development, and private sector engagement; $66 million for critical tourism infrastructure improvements; and $4 million for project management and coordination.

According to officials, the project will receive an initial $2 million tranche in the current fiscal year. The World Bank will disburse $9 million in 2026/27, $17 million in 2027/28, $23 billion in 2028/29, $27 million in 2029/30, and $7 million in 2030/31.

Lumbini welcomed 1.17 million visitors in 2024. Visitors from Nepal and India accounted for about 65% and 26% of total visitors, respectively. The area also draws visitors from Sri Lanka (2%), Thailand (1.8%), and China (1.1%). However, most visitors, including a large share of non-pilgrim regional tourists, currently spend only a few hours at key sites. Many enter Nepal from India in the morning and return the same day.