Road department mulls three road projects under Indian assistance

KATHMANDU:

The Department of Roads (DoR) is mulling over proposing three road projects for development under Indian assistance. Its plan has come at a time when the government is preparing plans to mobilise $1 billion soft credit line promised by India.

The department said that with Indian government showing interest to fund road projects, there is a possibility in completing eastern section of the Mid-Hill Highway, and improving the Beni-Jomsom and Pathlaiya-Kakarbhitta roads. Currently, the Ministry of Finance (MoF) is doing homework on projects to be funded under Indian support.

During his visit to Nepal in early August this year, Indian Prime Minister Narendra Modi had pledged a soft credit line of $1 billion. As per the condition set by India, the loan must be used in infrastructure development and energy projects.

“We had one meeting at MoF regarding possible DoR projects and now we are in preliminary phase of selecting projects,” said Devendra Karki, director general of DoR. He added that there is a need of around Rs eight billion to upgrade Beni-Jomsom road to double-lane and it is also time to improve the Pathlaiya-Kakarbhitta road to four-lane.

Based on Nepal’s request, the Indian government during Modi’s visit had been positive on providing assistance to complete the eastern section of Mid-Hill Highway. The section consists of Chiyobhanjyang-Ganeshchowk (61 km), Jorsal-Tamor-Sankranti (35 km), Sankranti-Myanglung (68 km), Bhojpur-Diktel (88 km), Haleshi-Hilepani (40 km), and Ghurmi-Khurkot (60 km) stretches.

According to Surya Bahadur Bhat, chief of Eastern Section of the Mid-Hill Highway, it is estimated to cost Rs 18 billion to complete the entire section and the government has spent Rs 4.5 billion. “A total length of 354 km from Khurkot to Chiyobhanjyang, Panchthar of eastern section can be undertaken under the Indian support,” he added.

After 2007, the southern neighbour has provided concessional loan of $350 million which is being utilised in 11 different road improvement projects, transmission lines and a hydropower product, as per government officials. A senior official at the Ministry of Physical Infrastructure and Transport said that the decision on whether or not to use the funds assured by India in roads will also depend on the conditions put forth by India while reaching an agreement on projects with the Indian side.

“There must not be any rigid rules like requirement to use 50 to 75 per cent cost of the project in procurement of Indian construction materials and others,” the official said.

Source: THT