Two more infra projects under PPP model
KATHMANDU, APR 08 -
The government plans to undertake two more infrastructure development projects under the public private partnership (PPP) model.
It is expected to select investors soon for the Phulchoki-Godawari cable car and Nagdhunga-Naubise tunnel road projects, which will be built under the build, operate and transfer (BOT) modality.
Under the BOT modality, a private firm first builds and operates an infrastructure project and hands over the project to the government after a certain period when their recover their expenses and make profit. A feasibility study carried out by the Department of Roads has shown the private sector could be involved in the development of the tunnel road.
According to the Ministry of Physical Infrastructure and Transport officials, it is preparing to invite interested Nepali firms and select one to prepare the detailed project report (DPR) of the tunnel road project. The same firm will also be allowed to develop and operate the project.
With only one company expressing interest in investing in the cable car project, the ministry is planning to assign the project to the company without competitive bidding. “Apart from the cable car and tunnel road, we are also exploring possibilities to develop other projects of the transport sector under the PPP model,” said Tulasi Prasad Situala, secretary at the ministry. He said the private sector could be attracted in road projects, where vehicle movement is over 6,000 per day, as they could make earnings from toll fees.
The BOT law allows companies to build and operate infrastructure, earn profits and hand the infrastructure over to the government after 30 years. It is considered one of the best models when it comes to development of large projects, in which lone government investment is not enough.
The PPP model is being considered for road projects including Airport-Thimi, Nagarkot-Pachkhal, Lalitpur-Lamatar-Bhakundebesi, Sitapaila-Dharke and Butwal-Bhairahawa and underground parking in Tundikhel, Kathmandu, according to the road department.
So far, the government has decided to build only two big road projects - Kathmandu-Tarai Fast Track and Kathmandu-Hetauda Tunnel Highway—under the BOT modality.
Three Indian firms—Reliance Infrastructure, Infrastructure Leasing & Financial Services (IL&FS) and Larsen and Toubro (L&T) Infrastructure Development Project—have applied for constructing the Fast-Track road which is estimated to cost around Rs 80 billion.
As for the tunnel highway, which is estimated to cost Rs 20-Rs 23 billion, the ministry is preparing to sign a final agreement with Nepal Purbadhar Bikas Company.
The government also plans to build a Tokha-Gurje tunnel in the northwest of the Kathmandu Valley. However, Situala said the tunnel’s construction under the PPP model is not possible as the traffic volume via Trishuli to Rasuwa is comparatively low.
The Tokha-Gurje tunnel road is planned to form part of the 54.8 km-long feeder road linking Samakhusi-Tokhagaun-Dandagaun-Tadi-Gangate, which leads to Rasuwa and the Chinese border in the north.
Source: The Kathmandu Post
