Eight firms show interest to develop fast track road project

KATHMANDU, Oct 13:

Eight infrastructure companies -- four each from China and India -- have expressed interest to develop Kathmandu Tarai Madhesh Fast Track Road Project.

China State Construction Engineering Corporation, China Harbor Engineering Company, China Gezhouba Group Company Limited and China Communication Construction Company of China, and IL & FS and Transportation Network Limited, Oriental Structural Engineers Private Limited, Shapoorji Pallonji Pvt Ltd and, Reliance Infrastructure of India have submitted Expression of Interest (EoI) to develop the project.

IL & FS and Transportation Network Limited and Reliance Infrastructure had gone out of contact during the Request for Proposal (RFP) phase in the second bidding process.

This is the third call for EoI after two previous attempts to bring foreign investors and technology to develop the mega project failed.

Government officials, however, are hopeful that the bidding process will go as planned this time as the government has guaranteed minimum revenue to the developer through toll fee and expressed commitment to invest Rs 15 billion as an equity partner.

The companies would be selected on the basis of toll rate quoted by the interested bidders.

Satyendra Shakya, chief of the project, said the guarantee of minimum revenue and equity investment proposal have made the project much feasible.

In the second bidding, bidders had walked out of the project citing uncertainty in return on investment and division of traffic because of the proposed Kathmandu Kulekhani Hetauda Tunnel Highway.

´CONTRACT WILL BE SIGNED BY MID-JAN´

Minister for Physical Infrastructure Bimalendra Nidhi vowed on Sunday to complete EoI evaluation, selection of firms for RFP and signing of contract with the developer by mid-January next year.

Answering queries by lawmakers at the meeting of Development Committee of legislature-parliament, Nidhi said the ministry would take the project forward by putting in place time-bound action plan.

Members of the committee stressed on timely implementation of the project including the proposed second international airport in Nijgadh of Bara.

"This is our last attempt to attract foreign investment in the project. If we fail, we will mobilize domestic resources to develop the project," Nidhi added.

The expressway which links capital city with Tarai is said to be important as it can save 32 million liters of fossil fuel annually by shortening travel distance. The project is also important for the proposed international airport in Nijgadh.

The estimated cost of the project hovers around Rs 80 billion, according to the feasibility study report. "But the developer will now prepare detailed project report (DPR) and propose the new cost. We will finalize it accordingly," Tulasi Prasad Sitaula, secretary of Ministry of Physical Infrastructure and Transport, said.

After holding discussion with officials of MoPIT, Minister for Tourism and Civil Aviation Deepak Chandra Amatya, and officials of tourism ministry, the committee has directed both the ministries to prepare progress report of both the projects and submit it to the committee every month.

    
 Source: Republica