Greater Lumbini Area Development Project

pipeline

The proposed project will support the Government of Nepal in transforming the Greater Lumbini Buddhist Circuit (GLBC) into a sustainable, inclusive, and competitive cultural tourism destination that encourages longer stays, higher spending, and stronger economic benefits for local communities. Despite Lumbini’s global recognition as the birthplace of the Buddha and its UNESCO World Heritage status, the region has yet to realize its full tourism potential. Most visitors currently spend only a few hours at key sites due to limited tourism offerings, weak promotion and branding, and inadequate tourism infrastructure and facilities—resulting in “hit-and-run” tourism with low economic impact.Anchored in Lumbini’s spiritual and cultural significance, the project will shift from fragmented, site-specific interventions to a holistic, integrated destination model that improves services, strengthens connectivity, diversifies tourism products, and actively engages communities and the private sector. It will target three main visitor segments: (i) pilgrimage and heritage tourists, by enhancing the visitor experience and developing sites across the GLBC; (ii) cultural travelers visiting the region for whom Lumbini is currently a secondary stop, by improving connectivity, marketing, and product offerings; and (iii) new markets, especially in East and Southeast Asia, through stronger branding and targeted promotion.The proposed project will focus on four priority sites: the Lumbini Master Plan Area—home to the Maya Devi Temple—and three culturally and ecologically significant locations: Tilaurakot (ancient Kapilvastu), Devdaha (maternal home of Queen Maya Devi), and Ramgram (the only intact relic stupa containing the Buddha’s remains). Site selection is based on cultural and historical significance, tourism potential, and alignment with recommendations from UNESCO and ICOMOS for a unified management vision and heritage-sensitive development. Additional sites within the Greater Lumbini Area may be considered subject to their alignment with the project Development Objective—particularly in enhancing cultural heritage value, improving visitor experiences, and generating local economic opportunities and jobs.The proposed project will foster community-centered and environmentally responsible tourism, integrating benefit-sharing models to ensure local ownership, protect cultural and natural heritage, and address environmental and social challenges. It will also actively engage the private sector alongside the public sector to create opportunities to unlock investment and innovation. Finally, the proposed project will embody the One WBG approach in its preparation and implementation, leveraging the recent institutional changes that strengthen cross-Group collaboration. Teams from across the World Bank, IFC, and multiple sectors—including Finance, Competitiveness and Innovation (FCI), Transport, and Education—are working together to design an integrated operation that maximizes development impact.