Kathmandu-terai fast track project
KATHMANDU, APR 22 -
The Ministry of Physical Planning and Works (MoPPW) has sought a clear direction from the Parliament’s Public Account Committee (PAC) to move ahead on the Kathmandu-Terai Fast Track Project. The ministry has said that in the absence of a clear direction, it is facing difficulties in implementing the PAC’s directive on including Nepali investors—having no experience in the build-operate-transfer (BOT) system—in the project.
In a letter to PAC, the ministry has requested for ‘necessary direction’, as the PAC’s earlier directive does not comply with the provision of the Private Financing in the Build and Operation of Infrastructures Act-2007 and Private Financing in Build and Operation of Infrastructures Rules. A high level ministry official said the PAC directive seemed as if it is prepared by contractors, not by the lawmakers.
On March 1, PAC had directed the ministry to implement its directive to ensure at least 10 percent domestic investment in the project and not to specify any experience of BOT for Nepali firms interested in undertaking the construction of the Fast Track in a joint venture with international companies. It had also directed the government to form a high level direction committee to carry out the project work effectively.
“It is completely impossible to work based on PAC directive,” said the official. “PAC must soon give a clear directive to invite fresh Expression of Interest (EoI). If the government wants to include Nepalis in these types of projects, laws need to be amended.”
As per the Act, it is mandatory for interested investors to have experience on BOT to submit EoI in any project costing more than Rs 20 million in private financing. The Fast Track project is estimated to cost around $800 million, according to a feasibility report prepared by the Asian Development Bank in 2008. A PAC official said they will soon take the ministry’s request to the PAC meeting.
The Federation of Nepalese Chambers of Commerce and Industry, Federation of Contractors Association of Nepal and Non-Resident Nepalese Association have been showing interests in the project. With increased pressure from the private sector, PAC had directed the ministry to involve them in joint venture with international firms.
Beside delay in inviting EOI, the project is also facing problems in land acquisition, particularly in Makawanpur district, where around 61 km stretch of the project falls. The government has allocated Rs 350 million for purchasing land this year. However, not even a penny has been spent over the last 10 months due to the delay in fixing the price of land.
“Chief District Officers are liable to fix the land price, demand budget and distribute compensation. However, they are yet to demand resources for the purpose,” said the Project Manager Saroj Man Shrestha. He added that the project had given Rs 45 million to CDO offices last year for land compensation, but that too has not been distributed because of the delay in fixing land price.
The government has also formed a high level committee for land pooling, but the committee has not been able to work effectively. Moreover, its term is also expiring in the next two weeks.
Shrestha, who is also a member secretary of the committee, said they are collecting information from banks and land revenue offices to determine land price. “The committee is also compiling data of government-owned land falling in the project and people living in such areas for a long time.”
Of the total 76 km length of the project, around 61 km falls in Makawanopur, where the government has to provide compensation for around 40 percent of the land owned by public. In Kathmandu and Lalitpur, the government has to pay compensation for around 15 km of land, and for 18 km land in Bara.
“It seems the track opening work will be badly affected due to the delay in land acquisition,” said Shrestha. According to him, currently, the Nepal Army, which is undertaking the job of track opening, is carrying out the work focusing on government-owned land.
Source: Kantipur
The Ministry of Physical Planning and Works (MoPPW) has sought a clear direction from the Parliament’s Public Account Committee (PAC) to move ahead on the Kathmandu-Terai Fast Track Project. The ministry has said that in the absence of a clear direction, it is facing difficulties in implementing the PAC’s directive on including Nepali investors—having no experience in the build-operate-transfer (BOT) system—in the project.
In a letter to PAC, the ministry has requested for ‘necessary direction’, as the PAC’s earlier directive does not comply with the provision of the Private Financing in the Build and Operation of Infrastructures Act-2007 and Private Financing in Build and Operation of Infrastructures Rules. A high level ministry official said the PAC directive seemed as if it is prepared by contractors, not by the lawmakers.
On March 1, PAC had directed the ministry to implement its directive to ensure at least 10 percent domestic investment in the project and not to specify any experience of BOT for Nepali firms interested in undertaking the construction of the Fast Track in a joint venture with international companies. It had also directed the government to form a high level direction committee to carry out the project work effectively.
“It is completely impossible to work based on PAC directive,” said the official. “PAC must soon give a clear directive to invite fresh Expression of Interest (EoI). If the government wants to include Nepalis in these types of projects, laws need to be amended.”
As per the Act, it is mandatory for interested investors to have experience on BOT to submit EoI in any project costing more than Rs 20 million in private financing. The Fast Track project is estimated to cost around $800 million, according to a feasibility report prepared by the Asian Development Bank in 2008. A PAC official said they will soon take the ministry’s request to the PAC meeting.
The Federation of Nepalese Chambers of Commerce and Industry, Federation of Contractors Association of Nepal and Non-Resident Nepalese Association have been showing interests in the project. With increased pressure from the private sector, PAC had directed the ministry to involve them in joint venture with international firms.
Beside delay in inviting EOI, the project is also facing problems in land acquisition, particularly in Makawanpur district, where around 61 km stretch of the project falls. The government has allocated Rs 350 million for purchasing land this year. However, not even a penny has been spent over the last 10 months due to the delay in fixing the price of land.
“Chief District Officers are liable to fix the land price, demand budget and distribute compensation. However, they are yet to demand resources for the purpose,” said the Project Manager Saroj Man Shrestha. He added that the project had given Rs 45 million to CDO offices last year for land compensation, but that too has not been distributed because of the delay in fixing land price.
The government has also formed a high level committee for land pooling, but the committee has not been able to work effectively. Moreover, its term is also expiring in the next two weeks.
Shrestha, who is also a member secretary of the committee, said they are collecting information from banks and land revenue offices to determine land price. “The committee is also compiling data of government-owned land falling in the project and people living in such areas for a long time.”
Of the total 76 km length of the project, around 61 km falls in Makawanopur, where the government has to provide compensation for around 40 percent of the land owned by public. In Kathmandu and Lalitpur, the government has to pay compensation for around 15 km of land, and for 18 km land in Bara.
“It seems the track opening work will be badly affected due to the delay in land acquisition,” said Shrestha. According to him, currently, the Nepal Army, which is undertaking the job of track opening, is carrying out the work focusing on government-owned land.
Source: Kantipur
