Ministry told to put Fast Track work on hold

KATHMANDU, Sept 4:

The Finance Committee of legislature-parliament has directed the Ministry of Physical Infrastructure and Transport (MoPIT) to put on hold all work or development related to the Kathmandu-Tarai/Madhesh Fast Track until a sub-committee formed by it submits its report.

The direction means MoPIT will have to stop ongoing negotiations with a consortium including Infrastructure Leasing & Financial Services Limited (IL&FS), the Indian developer of the expressway of 76 km.


The sub-committee, which was formed three weeks ago to study progress made so far in project development, including negotiations, is led by Keshav Badal.

The parliamentary committee's intervention has come at a time when a team of MoPIT led by joint secretary Bishnu Om Bade is holding negotiating with the officials of IL&FS. The negotiating teams are in the process of preparing concession agreement document, according to MoPIT officials.



Talking to Republica, Badal said the direction had to be issued as they were studying the ongoing negotiations. He also said they will come up with the study report by September 11.

The sub-committee so far has held seven meetings with experts and bureaucrats, to study the project and the proposals of the developer.

"The proposal to lend Rs 75 billion from the soft loan received from India, paying minimum revenue guarantee, and the bloated project costs are the key issues being discussed," Prakash Jwala, chairman of the Finance Committee, said.

Source: republica