Detailed study to be done only if project financially viable
KATHMANDU, OCT 20 -
Stunned by a preliminary estimate of Rs 330 billion to build a metro rail service in Kathmandu, the government has said it will first determine the project’s financial viability before going ahead with a detailed project report (DPR).
According to the Ministry of Physical Planning, Works and Transport Management, the DPR for the Kathmandu Metro Railway will be conducted only after ascertaining whether it is financially viable or not.
The consultants consisting of a consortium of Korean and Nepali firms are getting ready to submit a feasibility report within a month. A draft of the final feasibility report showed that it would cost US$ 3.88 billion (Rs 330 billion) to build a 77-km-long metro system in the Kathmandu valley. As per the consultant’s report, it will take 10 years to build the Kathmandu Metro, and a ride will cost Rs 20 to Rs 30.
“We are thinking of going for a DPR only next year after studying the final feasibility report and the possibility of building the Kathmandu Metro under public private partnership (PPP) or build operate transfer (BOT) modality,” said Tulasi Prasad Sitaula, secretary at the Physical Planning Ministry. He added that since the project would require massive resources, it was necessary to study the viability and modality before spending money on doing a DPR.
About 10 months ago, the Railway Department assigned the job of preparing a feasibility report to Chungsuk Engineering Company, Korea Transport Institution, Kunhwa Consulting and Engineering Company, Korea Rail Network Authority and two local companies, Building Design Authority and Environmental and Research Management Consultant.
A source at the Physical Planning Ministry said that the estimated fare of Rs 20-Rs 30 after 10 years for a ride on the metro was not realistic, and added that it would take a very long time to recover the investment. The source said that even though the project doesn’t look feasible, the government had to make it possible keeping in view the need for future demand by adding commercial value to attract investors.
About two months ago, the Physical Planning Ministry had requested, through the Finance Ministry, the South Korean government and the Asian Development Bank to conduct a DPR for the metro. The Railway Department said it had not received any response.
According to the consultant’s preliminary inception report, the metro will consist of five lines with a combined length of 67 km. Four lines are planned for inside the Ring Road and there will be one line of 27.35 km running around the Ring Road. The metro will connect Kalanki, Koteshwor, Satdobato and Maharajgunj — four points on the Ring Road — to Rani Pokhari through a two-way rail track.
The study has recommended constructing two underground railway lines and three elevated lines. Ram Kumar Lamsal, director general of the Railway Department, said that it was possible to start the DPR for the Ring Road line in the current fiscal year. “This line is more attractive and feasible, and studies for the other lines can be done one at a time using the experience gained from it.”
Source: The Kathmandu Post
