Kathmandu-Tarai Fast Track: Three Indian firms get one more month to submit proposals

KATHMANDU, FEB 28 -

Three Indian firms bidding for the construction of Kathmandu-Tarai Fast Track road have received additional time to submit their technical and financial proposals. The Ministry of Physical Planning, Works and Transport Management has extended the deadline by one month till May 21 for bid submission.

Reliance Infrastructure, Infrastructure Leasing & Financial Services (IL&FS) and Larsen and Toubro (L&T) Infrastructure Development Project, who were issued the request for proposal (RFP), had demanded that the government extend the deadline by two months till June 21. They had sought the extra time, saying that they would not be able to complete the detailed engineering survey of the express highway project within the originally allotted time frame.

Issuing the RFP in December last year, the government had provided four months until April 21 to come up with financial and technical proposals to build the road under the build-operate-transfer (BOT) model. “We decided to extend the deadline by one month on Tuesday,” said Rajendra Sharma, project manager of the Fast Track Project. He said that after they receive the bids from the companies, it would take at least a month for evaluation of the proposals.

The RFP requires the bidding firms to carry detailed surveys, investigations and other detailed examination of the project visiting sites before submitting their bids. An official at the Ministry of Physical Planning said that the bidders had just started preparation to hire local engineering consultants as part of their preparation to carry out necessary studies. “IL&FS and L&T look really enthusiastic about the project. However, Reliance is not that serious and it also missed the pre-bid meeting on the project held recently,” the official added.

The study to be carried out before the bid submission is considered vital as it will help the bidder determine the project cost, toll rate required tax facilities and equity support from the government. Especially, the project cost and toll fee are two major components to evaluate and select a bidder and sign concession agreement to carry out the detailed project report (DPR) and construct the road.

Earlier, a high-level committee formed to draft the procurement documents had suggested the government allocate six months’ time for bid submission. “Pre-bid submission study is as important as the DPR,” he said.

Meanwhile, the government has set a target to start track opening work within a month in Khokana, Lalitpur, where 8 km alignment of the road fall. Despite pursuing for the last three years, the government has not been able to settle the issue of land acquisition in Khokana for the project.

Project Manager Sharma said, “We are doing necessary homework, coordinating with the Survey and Land Revenue Offices so that work of track opening could start within a month in Khokana.”

Source: The Kathmandu Post