Govt forms panel to expedite fast track construction

KATHMANDU, MAR 24 -

The much talked-about Kathmandu-Tarai Fast Track project received a boost on Friday, with the government deciding to form a high-level committee to expedite construction under the build-operate-transfer (BOT) model.

The seven-member committee will be headed by former secretary Birendra Bahadur Deuja, a Cabinet meeting decided on Friday. The committee has been entrusted with the job of preparing the procurement document within three months.

Other members of the committee are experts Ram Ayodhya Prasad and Hari Prasad Dhakal, Director General of the Department of Roads, Project Manager of the Fast Track Project, legal officer of the Ministry of Physical Planning and Works and an official from the Ministry of Finance.

“The committee will prepare a bidding document, based on which the government will call a global tender for the construction of the project,” said Tulasi Prasad Sitaula, secretary at Ministry of Physical Planning and Works.

Sitaula also said the Physical Planning Ministry would call a fresh expression of interest (EoI) before the committee completes its work. In its immediate action plan (IAP) unveiled in January, the government has set a target to complete track opening work and work on inviting foreign investment for the project within this fiscal year. The project is estimated to cost around Rs 80 billion.

Meanwhile, the parliament’s Public Accounts Committee (PAC) has directed the ministry to start the project under BOT model as per the law.

The work on inviting EoI and selection of eligible investors had halted after the PAC directed the government in March last year to ensure at least 10 percent local investments in the project. Following PAC directive, the government had revoked completely the EoI process.

The PAC directive contradicted with the Act related to the BOT model, which does not have a compulsory provision for ensuring Nepali firms’ involvement in a BOT project.

The completion of the 76-km road will reduce the travel time between the Capital and the Tarai by at least four hours. At present, it generally takes to 12 hours to traverse the distance between the Capital and Terai.

Source: Kantipur