Fresh EoI for Ktm-Tarai Fast Track within a week

KATHMANDU, JUN 07 -

The Ministry of Physical Planning, Works and Transport Management (MoPPW) plans to call fresh expressions of interest (EoI) within a week to build the much talked about Kathmandu-Tarai Fast Track highway.

Following two years of dilly-dallying, the project gained momentum after the government formed a high-level committee to expedite construction under the build-own-operate-transfer (BOOT) model in March. The committee, led by former secretary Birendra Bahadur Deuja, was entrusted with the job of preparing the procurement documents within three months.

“We will complete the documents within a couple of days and make the announcement probably by coming Sunday,” said Tulsi Prashad Sitaula, secretary at the ministry.

“The committee is currently giving the final shape to the bidding documents, based on which the government will call for global tenders for the project,” added Sitaula. The ministry will hand over the project to the Investment Board once it completes the EoI process that includes listing potential investors. The requests for EoIs will represent a formal invitation to investors to build the 76-km expressway linking Kathmandu with the southern plains.

In March 2011, the ministry had scrapped the EoIs received in response to its second invitation to bid after the parliamentary Public Accounts Committee (PAC) directed the government to ensure that Nepali investors have a minimum 10 percent stake in the project.

The government had cancelled the ministry’s first call for EoI since there were only a very few takers. Only three companies including Landmark Worldwide Company (South Korea), Reliance Infrastructure and Larsen and Toubro of India had submitted their EoI. “The process this time, however, will go smoothly as the EoI will be called in accordance with the government’s set criteria,” said a member of the committee. “Moreover, the project will be further developed by the IB.” The government on May 25 had assigned the IB to develop 14 national pride projects, including the Kathmandu-Tarai Fast Track.

Once the MoPPW calls for EoI, the IB will handle the rest of the task. “The board will receive the EoI proposals from interested investors, short list reliable developers among the applicants and hand over the project which ensures maximum benefit to the country,” said IB CEO Radhesh Pant.

A private sector representative for the IB who did not want to be named said that investors from India, China, Japan, South Korea and some European countries had shown interest to develop the project. “We are holding talks with the investors, but the project will be awarded to the investor who ensures the maximum benefit for the country and the people,” he said. The member refused to disclose the names of the companies as the negotiations had not reached a matured phase.

The road project is estimated to cost around Rs 80 billion. Ministry officials said that international firms applying for the contract in a joint venture with Nepali companies would be given priority as per the government’s plan to encourage Nepali investors in big projects. However, it is not compulsory for international investors to have a local partner. In its immediate action plan (IAP) unveiled in January, the government has set a target to complete track opening and work on inviting foreign investment for the project within this fiscal year.

Meanwhile, the Nepal Army has opened 52 km of track of the proposed Fast Track road. The government has fixed a budget ceiling of Rs 1 billion for the project for the next fiscal year.

Source: The Kathmandu Post