Committee opens all options for building Fast Track

KATHMANDU, MAR 20 -

The Project Coordination Committee on Wednesday decided to open all the options for developing the Kathmandu-Terai Fast Track road, paving the way for developing the project with government resources as well as foreign assistance.

After a five-year exercise to bring in international investors to build the much-prioritised project under the build, own, operate and transfer (BOOT) model failed, the committee decided to open other options, including the BOOT model. The committee, headed by vice-chairman of National Planning Commiss-ion, is responsible for taking decisions on projects developed under the BOOT model.

The Ministry of Physical Infrastructure had also proposed to build the national pride project with domestic resources and donor loans. “Following the committee’s decision, we may continue the construction work either with the government’s resources or with donor funding,” said Tulasi Prasad Sitaula, secretary at the Ministry of Physical Infrastructure and Transport.

He said the project can also be handed over to interested international investors midway after the government starts the development.

The committee also decided to secure, expand and improve the existing track along the proposed expressway so that local people would not encroach the land acquired.

Currently, the government has been holding discussions with the World Bank on potential financing for the project.

Meanwhile, three foreign firms, including one Chinese and two Indian, have shown interest to develop the project.

China Infrastructure Investment Corporation (CIIC) has submitted a written proposal to construct the expressway under the engineering, procurement and construction (EPC) contract. Local agents of two Indian companies—Shapoorji Pallonji and Company Limited and Reliance Infrastructure—recently paid a visit to the ministry to confirm their interest to construct the project.

“So far, the proposals have come through agents only,” said Sitaula. “We have asked the agents to invite company executives for talks to confirm whether they are actually interested and whether they have the capacity to invest.”

The project’s estimated cost stands at Rs 100 billion.

Source: The Kathmandu Post