Bhairahawa SEZ completion date extended for sixth time
KATHMANDU, APR 27 -
The much-talked-about Special Economic Zone (SEZ) in Bhairahawa will not come into operation in this fiscal year. The Ministry of Industry (MoI) recently extended the completion deadline of the SEZ by four months.
The government had earlier planned to bring the SEZ into operation by mid-April. This is the sixth extension of the construction period of the country’s first SEZ project which started 12 years ago.
MoI officials said they decided to extend the construction period after the contractor failed to complete the construction work within the stipulated time. “The contractor has been asked to complete the task by the beginning of the new fiscal year,” said Industry Secretary Krishna Gyanwali. “Once the contractor hands over the SEZ to the government, the ministry will bring it into operation.”
Gyanwali said only 30 percent of the work is remaining and it will be completed within the new deadline. The construction work, which was halted for more than two months, had resumed just a month ago. A group of three companies — Gauri Parbati, Amar Sunaula and Khimti JV — had halted the work, citing financial crisis as the government did not release funds timely.
Although the deadline to complete construction of the project expired nine months ago, the MoI had not extended it. “The deadline had not been extended as we were pressing the contractor to complete the project at the earliest,” said an MoI official. Construction of two buildings, including administration and service building, setting up of a water treatment plant and acquiring a dedicated fidder by signing an agreement with the Nepal Electricity Authority (NEA) are remaining for the completion of the project.
A total of 52 plots have been developed for 200 factories in the SEZ. The estimated cost of the project is Rs 510 million. The government had first conducted a study to set up a SEZ in 1983. The programme was first announced 17 years ago.
The MoI is also holding feasibility studies to establish SEZs in other places, including Biratnagar, Jumla and Kapilvastu, Dhanusha, Siraha, Jhapa, Gorkha and Rautahat. It has already completed a feasibility study in Panchkhal, Ratomata and Dhangadhi.
Eight apply for SEZ committee chief
The Ministry of Industry (MoI) re-published a vacancy notice on April 16 to appoint an executive director for the SEZ Development Committee. The first notice was published a month ago and only eight individuals had applied. “We had expected more applications, but it didn’t happen after the publication of first vacancy notice,” said Industry Secretary Gyanwali. “So we republished the notice so that more qualified individuals will file applications.” According to him, the ministry will appoint an executive director for the committee within a month if things go as planned.
Source: The Kathmandu Post
