MoPIT to study why developers shunned fast-track project

KATHMANDU, Jan 23 : The Ministry of Physical Infrastructure and Transport (MoPIT) is preparing to conduct a study on study why it failed to develop the Kathmandu-Tarai Fast Track under Build, Operate, Own and Transfer (BOOT) model.

The meeting of steering committee of the project held on Wednesday decided to prepare an assessment report on why the ministry failed to attract developers for the mega project.
Talking to Republica, Tulasi Prasad Sitaula, secretary of MoPIT said the MoPIT will assess why the project failed to attract developer.

Sitaula is the member of the steering committee which is led by Rabindra Kumar Shakya, vice-chairman of National Planning Commission (NPC).

The ministry had started the process develop the 76-kilometer expressway project under the BOOT model in 2008. But the process to select developer started only in January 2012. Nine international developers had shown interest in the project. The government had shortlisted three Indian developers to implement the project.
However, all three developers walked out of the project pushing the mega project into uncertainty.

According to officials, MoPIT will present the assessment report in the next meeting of the committee. “The steering committee will explore other options to develop the project only after studying the report,” said Sitaula.

Sitaula also said informal talks were underway among top government officials to develop the project if it failed to attract international developers.
Meanwhile, MoPIT officials say development partners have shown interest to provide soft loan to the government to develop the project.

Some officials say international developers are not interested in the project as they didn´t see reasonable rate of return on investment.
The project is estimated to cost Rs 80 billion.

(Source: REPUBLICA)