MoPIT set to award contract for DPR preparation to IL&FS

KATHMANDU, Feb 19 :

The government is at the final stage of negotiation with an Indian firm for preparation of detailed project report (DPR) of Kathmandu-Nijgadh Fast Track Road Project.

Tulsi Prasad Sitaula, secretary of the Ministry of Physical Infrastructure and Transport, said were preparing to hand over the task of preparing DPR of the project to Infrastructure Leasing & Financial Services (IL&FS) of India. "The project will be taken forward based on the DPR prepared by the Indian firm," he added.

The first round of bidding for selection of firm to prepare DPR had begun in 2012. But after all four firms walked out of the project without submitting Request for Proposal (RFP) document, the government had initiated fresh bidding process in September last year.

The government had selected IL&FS after evaluating its expression of interest (EOI) and RFP documents. It is involved in negotiations with the Indian firm from the third week of January.

Sitaula said negotiation was heading in the positive direction and that they were about to find breakthrough“ "The government has already made commitments for viability gap funding (VGF). But the real picture of project´s viability will come only after the DPR is prepared," he added.

As per the project design, the developer will also have to build a road from Nijgadh to Pathlaiya. But the developer will not be allowed to collect toll charge on the road.

This will be the first type of infrastructure project in the country to be developed as per the public private partnership modality.

The mega project will connect Tarai with the capital city with an express highway. Upon completion, the project will reduce travel distance to the capital city and also reduce consumption of petroleum products.

Source: Republica