KTM-TARAI FAST TRACK:Govt invites fresh EoI, finally
KATHMANDU, JUL 11 -
The government has finally decided to call the expression of interest (EoI) for the construction of the Kathmandu-Tarai Fast Track. The Ministry of Physical Planning, Works and Transport Management is inviting new EoI on Wednesday to this effect. The fresh EoI marks the beginning of selecting investors for the construction of the much-talked-about 76-km express highway joining the Capital with the Tarai.
What makes the new EoI different from the past is the fact that the government has this time around encouraged potential international investors to involve Nepali contractors for a maximum of 10 percent of the equity share in the project with the objectives of technology transfer and capacity building.
The joint venture or consortium firms having local investors/contractors will be given preference in the EoI and Request for Proposal evaluation, according to the ministry.
Such firms will get additional points in the total score in the ratio of the share holding of Nepalis.
After the EoI evaluation, six firms will be short-listed for the request for proposal (RFP). Earlier, the government had called the EoI two times. However, all work regarding selection of the investor was halted last year with the dissolved Parliament’s Public Accounts Committee directing the government to ensure involvement of interested Nepali firms in the project.
“We have given 125 days’ time for the EoI submission,” said Dinesh Prakash Basnet, project manager of the Fast Track. “The applicants will have to visit the site and come up with their estimated cost for the entire project.”
As per criteria set by the government, only joint ventures or single firms having experience in carrying out infrastructure projects worth over $1,500 million or BOT highways and bridge projects of over $ 500 million in the last 10 years will be eligible. Similarly, such firms should have networth of $ 150 million or more. The firm that will win the contract will have to complete the project within five years of the date of signing the concession agreement. The project is estimated to cost over Rs 80 billion. As per the precondition of the government, the contract winner will have to construct the express road, operate and transfer it to the government after the stipulated time. The firm
winning the contract will have to upgrade the existing 18-km two-lane Nijgadh-Pathlaiya section of the East-West Highway to a four-lane standard. Basnet said the selection procedure will go on smoothly as they had a complete set of procurement documents based on BOT project practices prepared by experts.
Source: The Kathmandu Post
