Nepal-India cross-border petroleum pipeline: BOT modality recommended
KATHMANDU, MAR 21 -
A technical team entrusted with the task of holding a study on the appropriate modality for the Nepal-India cross-border petroleum pipeline has recommended developing the project under the Build Operate Transfer (BOT) modality.
“We (the committee) have suggested the National Planning Commission (NPC) to go with the BOT modality,” said Suresh Kumar Agrawal, deputy managing director of the Nepal Oil Corporation (NOC), who headed the technical team. “The main committee of the NPC will now expedite the project.”
Under the BOT modality, a private company constructs facilities and implements operation and maintenance for a certain period, and transfers the facility to a public entity.
Agrawal said the oil pipeline has become a must due to increased transportation cost and petroleum handling. Moreover, the Amalekhgunj-Raxaul road has become more congested to ferry petroleum smoothly. The much-delayed 41-km petroleum pipeline has been a priority project of India too. The Indian Oil Corporation has expressed its willingness to construct it several times.
The project was first proposed by the IOC in 1995. On January 3, the Cabinet had agreed in principle to develop the project. Subsequently, the NPC formed a committee to look after a number of legal and technical complexities.
The project has been estimated to cost Rs 1.6 billion, besides the costs for land acquisition. A pre-feasibility study in 2004 and a technical study in 2006 had termed the project economically viable on condition that the pipeline is operated unhindered for 20 years.
The pipeline , if developed, is expected to save Rs 300-350 million annually in transportation costs alone for NOC, which currently spends around Rs 500 million annually to transport petroleum products from Raxaul to Amalekhgunj.
The annual operation cost of the proposed pipeline is estimated at Rs 120 million. It is envisaged to reduce leakage and ensure the supply of cleaner and cheaper fuel.
It could also bring relief to Nepali consumers from frequent shortages caused by strikes. A report of the High-Level Petroleum Reform Committee had also suggested immediate construction of the pipeline .
Acharya named NOC’s acting MD
The Nepal Oil Corporation (NOC) board has elevated Jay Raj Acharya to the acting managing director’s post after his senior Suresh Kumar Agrawal decided to take an accumulated 15 days’ leave. Acharya was earlier the NOC’s deputy managing director. Some government officials said persistent tussle between Agrawal and Supplies Secretary Lalmani Joshi was the major reason behind the former taking the leave. Joshi, who also chairs the NOC board, decided to elevate Acharya to the post citing Agrawal’s inefficiency to manage smooth fuel supply. However, Agrawal said he took the leave due to back pain. “As I have been tirelessly working for the last two years, I decided to take some rest to offload my stress,” said Agrawal, adding there are “no other reasons behind my leave”.
Source: The Kathmandu Post
