Lawmakers divided over awarding fast track project to Indian company

KATHMANDU, July 31:

Lawmakers are divided over awarding the contract of the proposed Nijgadh-Kathmandu Tarai Madhesh Fast Track project to an Indian company.

Speaking at the meeting of Development Committee of legislature-parliament on Thursday, some lawmakers said that the national pride project should be developed by the government itself, whereas others advised the government to give the project to the Indian company but with conditions to ensure timely completion.
Lawmaker Baijanath Chaudhary said the government has to construct the expressway by itself. "The Indian contractors of the under-construction Postal Highway have been absconding leaving the construction works incomplete," he said, giving example of how the foreign companies can also be untrustworthy.

Similarly, another Lawmaker Ganesh Pahadi questioned why the government was so keen on awarding the fast track project to the India company. He also asked the government to make clear what it lacks -- technology or capital.

Though, the 76-km expressway-- that will make Tarai Madhesh nearer to the capital geographically, economically, socially and politically -- has been in talks for the past two decades, the government expedited works on the projects two years ago only.

The government had selected Indian Company Infrastructure Leasing & Financial Services (IL & FS) to prepare Detailed Project Report (DPR) of the expressway. The company has prepared the DPR and submitted it to the government on June 24. "Now, the government is preparing to award the project to IL & FS under Public Private Partnership (PPP) model in haste," the lawmakers blamed.

The Indian company is neither bringing capital nor any expertise, they claimed, adding that the government is lending IL & FS Rs 75 billion at three percent interest rate.

Asking the government to construct such strategic road from its own funding, the lawmakers said that the proposal of providing Rs 15 billion to the developer and also bearing the risks will create huge financial liability for the government in the future. The lawmakers have objection on some clauses, which they say, will bleed the government coffer dry.

"The government will also pay compensation, if the road failed to get minimum traffic," they said, adding that the proposed toll fee of the expressway is among the highest in the world.

The DPR has proposed charging toll fee ranging from Rs 800 to Rs 4,600 on vehicles.

However, some lawmakers, including Guru Prasad Burlakoti, asked the government to add more stringent conditions before awarding the project to the Indian company. "The fast track project must be completed in next five years," Burlakoti said.

Replying to lawmakers' queries, Tulsi Sitaula, secretary at the Ministry of Physical Infrastructure and Transport Management, said that the government will add more conditions to ensure timely completion of the project. "A committee under the ministry will study the proposal and forward it to the National Planning Commission (NPC) that will finalize the contract," he added.

Rabindra Adhikari, chairman of Development Committee, asked the government to safeguard national interest while awarding the project.

Meanwhile, former Prime Minister Baburam Bhattarai on Wednesday asked the government to finalize the development modality of the project before awarding it to anyone.

Source: Republica