Preliminary study of Tokha-Rasuwagadi road started

A Chinese technical team has started a preliminary study of the tunnel section of proposed Tokha-Rasuwagadi road.
The Department of Roads (DoR) confirmed that the preliminary assessment of the Tokha-Chhahare-Gurjubhanjyang tunnel section has been started. “The team will gradually begin the study of other sections of the road project too,” director general of the department Keshav Kumar Sharma informed, adding that the team s active in the field. “The team is expected to complete the preliminary study within a few months.”
The government has planned to construct 4.17-kilometre-long tunnel to connect Tokha with Gurjubhanjyang and a 24-kilometre-long tunnel to connect Betrawati with Rasuwagadi. But the Nepali Army is also working on opening the track of the Betrawati-Rasuwagadi section citing that building a road instead of digging a tunnel would be more cost-effective.
According to a memorandum of understanding (MoU) – signed during the visit of Chinese President Xi Jinping on October 13 – Nepal and China had agreed to develop a 50-km road linking Kathmandu and Rasuwagadi. During Xi’s visit, Department of Roads and China International Development Cooperation Agency had signed the agreement.
According to the agreement, China will bear majority of the cost of building the road and tunnel, including the cost of study. The team, which is working in Nepal now, will submit its report and authorities from Kathmandu and Beijing will then start the work on the detailed project report (DPR) and detailed engineering study.
Though, the government is expecting that the Chinese government will finance the strategic project that the Chinese construction companies have expressed interest to build under the build, own, operate and transfer (BOOT) model, the funding modality of the project will be discussed after the DPR is finalised.
When the project is completed, it is expected to reduce the distance and travel time between Kathmandu and Rasuwagadi, and also shortens Kathmandu’s distance with the northern border Kerung.
The Kathmandu-Rasuwagadi road is around 125-km long, and passes through Galchhi of Dhading but the distance will be reduced to 50-km once the new route is completed.

Nepali Army claims to complete Expressway on time

Nepali Army claimed that it committed to complete construction of Kathmandu-Tarai Expressway on time – by May 13, 2024 – though it has been delayed due to some technical reasons including cabinet’s delay in endorsing Detailed Project Report (DPR).
Organising a press meet at its headquarters today, the Nepali Army Brigadier General Sharad Lal Shrestha, who heads the Expressway Project, said that they are preparing for an integrated package of high bridges, tunnel and road works after they received DPR from the government. “The army expects to complete the 72.5-km long Kathmandu-Nijgadh Expressway on time and also hand it over to the government.”
Shrestha said that the army is currently in the process to shortlist consultants for geo-technical and geophysical investigation of the areas, where tunnels are being built as part of the Expressway. Stating that geo-technical report will be ready by mid-July 2020, he said that the construction of tunnels will be started by the selected international construction companies.
On the occasion, Nepali Army spokesperson Brigadier General Bigyan Dev Pandey also informed that the construction is expected to gain momentum after the cabinet approved its detailed project report (DPR) on August 21. “The DPR of the project had been submitted by a South Korean firm Soosung Engineering and Consulting Company to the Nepali Army on February 4. The DPR was later forwarded to the cabinet for approval by the Ministry of Defence on March 16.”
According to the new DPR, the project will be constructed according to ‘Asian Highway Class I’ standards, which means the highway will have four or more lanes and the construction material used for the pavement will be asphalt or cement concrete.
Likewise, the construction cost of the project has been estimated at Rs 175.19 billion – which is Rs 63.19 billion more than the earlier estimate of Rs 112 billion – according to the new DPR. “The consultant has determined the estimated cost of the project based on the government set rate and international standards,” he claimed.
Of the total 72.5-km-long Expressway, some 55.2-km stretch will be roads, 6.41-km tunnels and the remaining 10.59-km will be bridges, according to the DRP that has planned three tunnels – one 3.35-km-long tunnel in Mahadev Danda of Lalitpur district, another 1.63-km-long in Dhandre Danda and the third 1.43-km-long tunnel in Len Danda of Makawanpur district – apart from 71 small and big bridges along the Expressway.

Kathmandu-Birgunj electric railway to cost around Rs 265 billion

Kathmandu-Birgunj electric railway is going to cost around Rs 265 billion, according to a Preliminary Engineering and Traffic (PET) report prepared by an Indian firm Kanekar Consulting Engineers (KCE).
Initial draft of the feasibility report of the proposed 135-kilometre-long Kathmandu-Birgunj electric railway has been submitted to the Nepal and Indian governments on May 7. After the consideration of the both countries, further process including conducting detailed engineering study and detailed project report of the project will start, according to the Department of Railways (DoRW).
Apart from the passengers, the electric rail will also transport cargo containers, which is expected to significantly minimise the transport cost and ease the trading.
The report has suggested four alternative routes of the railway, according to director general of the department Balaram Mishra. “The alternative routes include 135-kilometre-long Raxaul-Jitpur-Nijgadh-Shikharpur-Sisnery-Kathmandu; 171-km-long Raxaul-Jitpur-Hatiya-Hetauda-Satikhel-Kathmandu; 191-km-long Raxaul-Jitpur-Nijgadh-Hetauda-Satikhel-Kathmandu; and 191-km-long Raxaul-Jitpur-Nijgadh-Shikharpur-Satikhel-Kathmandu,” he said, adding that the India firm has suggested conducting further studies on the first alternative route – the 135-kilometre-long Raxaul-Jitpur-Nijgadh-Shikharpur-Sisnery-Kathmandu – as it will cost less and has the shortest distance among the four alternatives. “The PET report has identified the places along the route, where 42-km-long tunnel, bridges and other necessary railway infrastructure needs to be built, which means around 20 per cent of railway line will comprise of tunnels and bridges.”
The report has also suggested 13 railway stations along the route of the railway project that needs to acquire around 900 hectares of land.
Both the countries had agreed on effective implementation of bilateral initiatives in railway linkages, inland waterways development and agriculture during Indian Prime Minister Narendra Modi’s visit to Nepal on May 11 and 12 last year. The Indian prime minister had assured that the entire cost – including establishment of an office, pre-feasibility study, detailed feasibility study (DFS) and detailed project report (DPR) – to construct the railway from Kathmandu to Raxaul will be covered by the Indian government.

Nepal, India agree to build New Butwal-Gorakhpur transmission line with equal equity investment

After the two-day talks, Nepal and India today finalised the construction modality of 400 kVA New Butwal-Gorakhpur cross-border transmission line.
Nepal and India agreed to fund – a second high-capacity cross-border transmission line connecting Butwal to Gorakhpur in India – through a commercial entity with 50-50 equity, informed managing director of Nepal Electricity Authority (NEA) Kul Man Ghising, who also took part in the meeting.
 “The 80 per cent of the project cost will be financed through loans, while the Nepali and Indian governments will chip in the remaining 10 per cent each,” he said, adding that both the countries will form a joint company within three months and have a project implementation agreement, within six months. “The agreement – followed by a two-day seventh Joint Steering Committee and Joint Working Group meeting on Nepal-India Cooperation in the Power Sector in the southern Indian city of Bengaluru – also concluded with agreements on implementation and financing modality of the 135-km-long, 400 kV transmission line and formalisation of an energy banking mechanism between Nepal and India.”
The decision came a month after the Nepali and Indian energy ministers expressed optimism over both sides coming to terms on the development modality of the proposed 400 kV New Butwal-Gorakhpur transmission line project.
The detailed project report (DPR) of the cross-border transmission lines has been updated and revised by India in consultation with power utility officials, which has led to a cost reduction of around $18 million on the Indian portion of the transmission line, Ghising said, adding that the cost reduction and decision to evacuate or relay power from the existing substation in Gorakhpur rather than building a new substation for power exchange has added to the commercial viability of the project.
Around 120-km out of the Butwal-Gorakhpur Transmission Line's 135-km length lies in Indian territory. The project is of high strategic importance to both Nepal and India as it will set up a reliable route for energy banking by synchronising Nepal's power grid with India's and allow the power utility to sell large quantum of surplus power, which Nepal is poised to generate in the coming years.
The proposed transmission line is also a major component of the $630 million ‘Nepal Compact’ – an agreement between the government of Nepal and Millennium Challenge Corporation (MCC) of the US to fund electricity and road projects of strategic importance in Nepal.
The delay in finalising the construction of the transmission line project has affected the implementation of the MCC assistance to Nepal. The Millennium Challenge Account Nepal (MCA-Nepal) has already decided the project implementation date from June 30, 2020.
The agreement also paves the way for Nepal, India and Bangladesh to sign an agreement on using the Indian grid to transfer electricity from Nepal to Bangladesh, four months after a secretary-level meeting between Nepali and Bangladeshi energy officials agreed to trade power through India's transmission network. The meeting has decided to hold a tripartite meeting within three months. “The meeting is expected to fix transmission modalities and commercial terms for use of the Indian grid, paving the way for direct power trade between Nepal and Bangladesh through India.
Earlier, officials from both the countries had reached a broader agreement that the portion of the transmission line passing through Indian territory will be built by a commercial entity after India rejected Nepal’s proposal to develop the line under a government to government (G2G) financial model. Following the refusal, Nepal proposed to build the line with an equal equity investment from Nepal Electricity Authority (NEA) and Power Grid Corporation of India (DGCI) and book the use of power lines for seven years to which the Indian energy officials have now agreed, Ghising added.
The agreement between Nepal and India on implementing the transmission line is a ley pre-requisite for the multi-million dollar MCC-Nepal compact – viewed by many in Nepal as a counter-initiative under the Indo-Pacific Strategy of the US against China's Belt and Road Initiative (BRI) – to become effective.
Though the compact, which will prevail over the domestic laws, has been tabled in Parliament, it is yet to be ratified, due to intra-party differences within the ruling party lawmakers and leaders over Nepal’s degree of involvement in the USA's Indo-pacific Strategy and China’s BRI.
The compact is expected to be ratified by the Parliament by the time Millenium Challenge Account-Nepal (MCC-N) – the implementing agency of the project – completes an environmental impact assessment (EIA) of the infrastructure.
Energy secretary Dinesh Kumar Ghimire led the Nepali team, while his counterpart Subhash Chandra Garg had headed the Indian team during the meeting today, where India has also agreed to formalise the terms related to energy banking mechanism, which will allow Nepal and India to exchange power on a need basis, after the multiple requests from Nepali authorities and the surplus power projections.
Currently, energy banking between Nepal and India is done through mutual agreements under the purview of the Nepal-India Power Exchange Committee,” according to the NEA. “Indian energy officials have now agreed to formalise energy banking through cross-border power trade regulations of India.”
“The Bengaluru meeting also decided to permit NEA to trade in Indian Energy Exchange, an automated power trading platform which Nepal is keen on joining,” the state power utility informed, adding that the meeting also approved the DPR of Lumki-Bareilly and Inaruwa-Purnea cross border transmission lines between Nepal and India proposed to be built by 2025.

Nepal waits to seal Kerung-Kathmandu railway deal during Chinese President’s visit

Nepal is waiting to sign an ambitious Kerung-Kathmandu cross-border railway agreement during the visit of the Chinese President Xi Jinping this weekend.
The Foreign Ministry today confirmed the Chinese President’s two-day state visit to Kathmandu accepting the friendly invitation of President Mrs Bidya Devi Bhandari. Xi will be coming to Nepal on October 12.
“The historic visit of the Chinese President will also see signing of Kerung-Kathmandu Railway agreement," said prime minister KP Sharma Oli’s foreign affairs advisor Dr Rajan Bhattarai.
“The President of the People’s Republic of China Xi Jinping is paying a state visit to Nepal on October 12 and 13,” he said, adding that during the visit, Xi will meet with President Bhandari, who will host a banquet in honour of the Chinese president and his delegation. “President Xi will hold delegation level official talks with Prime Minister KP Sharma Oli, following the talks, both the leaders will witness the signing of bilateral agreements and memoranda of understanding.”
One of the key agreements the Prime Ministers of both the countries will witness is much-talked about Kerung-Kathmandu Railway agreement, Bhattarai said.
However, the main opposition Nepali Congress (NC) leader and former foreign minister Dr Prakash Sharan Mahat, welcoming the high level visit from China – after 23 years since Jiang Zemin visited in 1996 – said that the Kerung-Kathmandu Railway should be constructed in Chinese grant not loan. “Kerung-Kathmandu Railway is important but more important is the road connectivity to bridge the widening trade deficit of Nepal with China,” he said, adding that the all-weather road connectivity between the two neighbours is the need of the hour, and investment (through loan) in cross border railway will not be economically feasible at present.
There are two schools of thought among Nepali intelligentsia at present, either to construct the Kerung-Kathmandu Railway in Chinese Loan or grant. The one, who thinks China’s Belt and Road Initiative (BRI) is a debt-trap, opines that the Kerung-Kathmandu Railway is not economically feasible and Nepal will fall in Chinese debt trap. But the Nepal Communist Party (NCP) government – also blamed for leaning towards north – has been using the Kerung-Kathmandu Railway agreement as its key to political achievement since it has failed to perform since it came to power 2 years ago.
Different Chinese officials have also repeatedly said that the detailed project report (DPR) of Kerung-Kathmandu railway will take a lot more time to materialise due to technical, engineering and geological reasons. China is yet to connect its railway to Sigatse, from where railway can be connected to Nepal-China broder Kerung to further connect to Kathmandu.
However, a joint communiqué issued after the conclusion of the Second Belt and Road Forum for International Cooperation in Beijing in April had incorporated the Nepal-China Trans-Himalayan Multi-Dimensional Connectivity Network and Nepal-China cross-border railway.
Xi will be flying to Kathmandu from Mamallapuram near Chennai in India where the Chinese President and Indian Prime Minister Narendra Modi will be meeting on October 11 and 12 for the second ‘informal summit’ after the Wuhan Summit last April.
The press note from the Foreign Ministry also stated that the Chennai informal summit will provide an opportunity for the two leaders to continue their discussions on overarching issues of bilateral, regional and global importance.

IBN, Chinese company seal deal for Damak Industrial Park

The government and Damak Clean Industrial Park Pvt Ltd (DCIPPL) signed a memorandum of understanding (MoU) for the construction of the 'China-Nepal Friendship Industrial Park' in Province 1.
The chief executive of Investment Board Nepal (IBN) Maha Prasad Adhikari and the chairman of DCIPPL, Govinda Bahadur Thapa signed the MoU amid a ceremony held in the capital today.
The industrial park – located at Damak in Jhapa district – is going to be built with a total investment of around Rs 64 billion from Chinese investor Lhasa Economic and Technology Development Zone Jing-Ping Joint Creation Construction Project Development Co Ltd.
Spread over an area of 1,600 hectares, the industrial park will be built in public-private partnership (PPP) model, according to the IBN. “The government has already completed the process of land acquisition to construct the park. The construction will start as soon as the Detailed Project Report (DPR) for construction, operation and management of the industrial park is presented followed by the Project Development Agreement (PDA), the board informed, adding that the park will be spread over Gauradaha municipality, Kamal rural municipality and Damak municipality of Jhapa. “The project is the first one in Nepal supported under the Belt and Road Initiative (BRI) of China.”
The project is expected to add a new dimension in sectors like expansion of investment between Nepal and China and infrastructure development. The project is also expected to contribute to the expansion of physical infrastructure, fulfill local demand, and support export promotion, according to vice mayor of Lhasa Municipal People's Government Liu Guang Min.
Speaking on the occasion of MoU signing, Liu said that the industrial park will contribute toward employment generation and socio-economic development of Nepal.
Likewise, chairman of the industrial park Govinda Thapa said that the construction work of the project will present a model of efficiency and transparency. “The project will establish a new model of development in Nepal,” he said, adding that the project will give us a model that the entire country and the people can be proud of.
Likewise, Adhikari, on the occasion, said that the construction of the industrial park will contribute to the development of Nepal. Chairman of the Industrial Area Development Limited Nanda Kishor Basnet said that the project will be Nepal's model project. “Nepal did not have projects other than hydropower projects in PPP model,” he said adding that that it would be Nepal's first non-hydro project under PPP model.
The signing of the MoU precedes the visit of Chinese president Xi Jinping that is scheduled for next week.
Though the government has approved Chinese investment of Rs 64 billion to construct Nepal-China Friendship Industrial Park, the construction work is still unsure as the landlords are not in consensus about the use of their lands.
Some of the landlords have not accepted the compensation amount stating that the amount is too low.
According to Industrial Area Development Limited, some 117 landlords have received Rs 120.7 million till now. The compensation has been distributed according to the recommendation from a committee formed under the coordination of the Chief District Officer (CDO).
The District Administration Office has classified the land into three category: cultivable land, riverside land and land occupied by bushes. Compensation of Rs 2.2 million has been approved for a bigha of cultivable land, Rs 800,000 for land occupied by bushes, and Rs 200,000 for riverside land. The government has provided Rs 430.44 million for compensation distribution.
The government has distributed the compensation to the landlords of Damak Municipality, Gauradaha Municipality, and Kamal Rural Municipality. However, landlords of 61 units of land have not been identified.
Basnet said that the construction work will begin by mid-December in 500 bigha land of Jharka in Kamal-7. However, the landlords of Kamal-7 have suspected the government's intention and blaming that it is a ploy to capture their land. “No paper has mentioned that the land is taken for the establishment of the Industrial Park, they blamed, adding that it might be a strategy of the government to buy the land for cheap. The landlords have also claimed that the recommended compensation amount is less the government valuation of their land. “A compensation of Rs 200,000 per bigha is recommended,” they said, adding, “However, government rate is Rs 700,000 per bigha.
Basnet, however, claimed that the compensation amount has been decided according to the Land Acquisition Act.

Health Ministers of WHO South-East Asia Region to discuss key challenges next week

Health Ministers of member countries of WHO South-East Asia Region are meeting next week to discuss ways of addressing health impact of climate change, the high burden of tuberculosis and strengthening capacities for emergency risk management.
Elimination of measles, a childhood killer disease; cervical cancer and other non-communicable diseases; and strengthening health services and workforce for universal health coverage are other key issues that will be taken up at the seventy-second Regional Committee Session of WHO South-East Asia from September 2 to September 6.
India’s Minister for Health and Family Welfare Dr Harsh Vardhan, Nepal’s Deputy Prime Minister and Health Minister Upendra Yadav, and Regional Director at the WHO South-East Asia Dr Poonam Khetrapal Singh, will be addressing the inaugural session of the Regional Committee, the governing body of WHO in the region. Health ministers and senior officials from all 11 member countries and senior WHO officials will be attending the week-long deliberations.
This is the first Regional Committee Session after unanimous re-election of Dr Khetrapal Singh as Regional Director for a second five-year term. Dr Khetrapal Singh, whose first term was marked by unprecedented public health achievements and progress in the region, would be further firming up regional goals and targets along with member countries for the next five years.
The regional director’s vision for the next five years is to sustain progress, accelerate efforts and innovate to achieve the targets of priority health programmes.
The region has eight flagship priority programmes – measles elimination and rubella control; preventing non-communicable diseases; reducing maternal, under-five and neonatal mortality; universal health coverage with a focus on human resources for health and essential medicines; combating antimicrobial resistance; scaling up capacities for emergency risk management; eliminating neglected tropical diseases and accelerating efforts to end TB.
The regional priorities are aligned to the UN Sustainable Development Goals (SDGs) and WHO’s global triple billion - one billion more people benefitting from universal health coverage (UHC); one billion more people better protected from health emergencies; and one billion more people enjoying better health and well-being.
Home to over one-fourth of the global population, WHO South-East Asia Region has made remarkable progress in several priority programmes in the last five years. In 2014 the region was certified polio-free. In 2015 Maldives and was certified malaria-free. Sri Lanka soon achieved the same. In 2016 the region became the second WHO region to eliminate maternal and neonatal tetanus. In the same year Thailand became the first country in Asia – and the first globally with a large HIV epidemic – to eliminate mother-to-child transmission of HIV and syphilis. Maldives achieved the same in 2019.
Bhutan, Maldives, DPR Korea, Timor-Leste and Sri Lanka have eliminated measles. Bangladesh, Bhutan, Maldives, Nepal, Sri Lanka and Timor-Leste have controlled rubella. Maldives, Sri Lanka and Thailand have eliminated lymphatic filariasis. India is yaws-free; Nepal has eliminated trachoma. Bangladesh, Bhutan, Nepal and Thailand have controlled Hepatitis B.
Between 1990 and 2015 maternal mortality ratio declined by 69 per cent, under-five mortality by 70 per cent. DPR Korea, Indonesia, Maldives, Sri Lanka and Thailand have already achieved global SDG targets for neonatal and under-5 mortality. Maldives, Sri Lanka and Thailand have done the same for maternal mortality. All countries in the region have multi-sectoral plans to address non-communicable diseases and are addressing antimicrobial resistance with ‘One Health’ approach.
In the region’s pursuit of universal health coverage, access to safe, good-quality medicine is being enhanced through the South-East Asia Regulatory Network, which was launched in November 2016. Investments in strengthening capacities for emergency risk management have resulted in better management of major health emergencies such as Nepal earthquake, the recurring events of cyclone, floods etc.

Nepal Army changes Express Way alignment to preserve historic Khokana

Nepal Army has changed the alignment of Express Way to preserve the historic Khokana settlement.
Holding a press conference at its headquarters, the Nepal Army informed that the Nepali Army (NA) has changed the entry point of 72.5-km-long Kathmandu-Tarai Express Way in two places – Khokana area, and Mahadevtar-Lendanda according to the recently-approved DPR – to preserve Sikali Temple in Khokana and Kodesh area which hold cultural and historical significance.
Earlier, locals from Khokana had staged a series of a protest demanding preservation of the antique settlement, and the temple.
“As per the demand of locals of Khokana and Bungmati, we have changed the alignment of Express Way,” said spokesperson for Nepali Army Brigadier General Bigyan Dev Pandey.
Pandey further said the Army had consulted the Department of Archaeology to change the entry point of the Express Way to address the concerns of the locals.
However, the change in alignment has increased the estimated cost of the project though the distance has decreased. “The estimated cost of the Kathmandu-Nijgadh Express way has been reestimated at Rs 175.19 billion – which is Rs 63.19 billion more than the earlier estimate of Rs 112 billion – though the length has been reduced by 3.7-km to 72.5-km from its preliminary estimate of 76.2-km due to change in alignment,” the Pandey said, adding that Express Way has now added extra tunnels along Mahadevtari-Lendanda section following the change in alignment.
Ealier, the DPR by the Indian firm Infrastructure Leasing and Financial Services Transportation Networks (IL&FS) had estimated the construction cost at Rs 133.70 billion ($1.12 billion at the current exchange rate), if it were to be built with a soft loan. The cost would have increased, if it was a commercial loan.
Likewise, the Nepal Army had proposed Rs 213 billion estimation to the Cabinet but the widespread criticism has made the Cabinet to reduce the cost to Rs 175.19 billion. However, the project chief of Express Way Brigadier General Sarad Lal Shrestha said that South Korean consultant firm Soosung Engineering and Consultancy Co had estimated the cost of the project based on government set rate and international standards. The Express Way will be constructed based on ‘Asian Highway Class I’ standards, which means it will have four lanes and the construction material used for the pavement will be asphalt or cement concrete, Shrestha informed.
The Express Way that will extend from Khokana in Lalitpur to Nijgadh in Bara with a width of 25 meters in the hilly region and 27 in the plains is set to be completed within next three-and-a-half years. Earlier, the Nepal Army had aimed to complete Nepal’s first Express Way within two years of initiating the project.
“We plan to begin construction of tunnels and bridges by September-end,” Pandey said, adding the process to award tenders to build bridges and tunnels is in final stage. “The NA will build 87 special and normal bridges of the project with total length of 10.59-km, and three tunnels measuring altogether 6.42-km in Mahadev Danda, Dhendra Danda and Len Danda.”
Likewise, there will be three interchange and toll plazas in Khokana of Lalitpur, Budhune of Makawanpur and Nijgadh of Bara district, apart from 12 passenger underpasses, five vehicle underpasses, one passenger overpass, four vehicle overpasses and 141 box/pipe culverts.
According to the Nepal Army, some 151,000 trees will be cut down during the Express way construction.
The DPR of the one of the national pride projects, prepared and submitted by a South Korean firm Soosung Engineering and Consulting Company was approved by the cabinet meeting of August 19.
Of the total length, four km of the Express Way will lie in Kathmandu district, 7.9-km in Lalitpur, 53-km in Makawanpur and rest 7.6-km in Bara.
Due to delay in approval of the DPR by the Cabinet, the government has extended the deadline for Kathmandu-Tarai Express Way by more than two years, pushing the completion date to February 2024.
When the national pride project was handed over to the Nepal Army in August 2017, the government had set August 2021 deadline. But even two years since the start of the construction, the national defence force has hardly completed eight per cent of the work. The Army has already spent Rs 14 billion in the last two years. The government has allocated Rs15 billion in the current fiscal year for the four-lane national pride project.
The Kathmandu-Tarai Express Way was first conceptualised in the mid-1990s. But it failed to take off for almost a decade and a half. The government revived the project in 2013 and two years later, the Indian consortium won the bid for the project – in February 2015 – but in October the Supreme Court ordered a halt to the preparations to award the project to the Indian developer IL&FS.

Cabinet okeys Kathmandu-Tarai express way DPR

The cabinet has approved detailed project report (DPR) of the much talked Kathmandu-Tarai express way.
According to the spokesperson of Nepali Army Brigadier General Bigyan Dev Pandey, the cabinet meeting held on Monday has approved the DPR of the project. “We plan to start construction of tunnels and bridges by September-end,” he said, adding that Nepal Army aims at completing the country’s first express way project within two years. “The process of short-listing contractors for construction of bridges is in the final phase, work related to the detailed design has already been completed and NA is preparing necessary documents to call tender for construction of tunnels.”
According to Pandey, the project will be constructed based on ‘Asian Highway Class I’ standards. “The highway will have four or more lanes and the construction material used for the pavement will be asphalt or cement concrete,” he added.
A South Korean firm – Soosung Engineering and Consulting Company on February 4 – had submitted the DPR of the project to Nepali Army. The Ministry of Defence forwarded it to the cabinet on March 16.
The DPR has, though reduced the length of the express way by 3.7 kilometres to 72.5 km due to change in alignment of the route in Khokana, has estimated construction cost at Rs 175.19 billion, which is Rs 63.19 billion more than the earlier estimate of Rs 112 billion. “The consultant company has determined the estimated cost of the project based on the government fixed rate and international standards,” Pandey explained.
Before the revision in length, NA had said it would construct 17 km on its own, hire Nepali contractors for 37 km of the stretch and assign foreign contractors to construct the remaining 22.2 km section, which includes tunnels and bridges. “Though only a width of 25 metres of the express way section will be metalled, the Nepal Army has cleared a breadth of 30 metres,” he sid, adding that 3.9 km of the express way – of the total length – will lie in Kathmandu district, 6.9 km in Lalitpur, 55.7 km in Makawanpur and 6 km in Bara. “Meanwhile, NA has already signed contract with 32 local contractors for different sections of the project but some works were halted in the absence of the final DPR.”
The Nepal Army will construct three tunnels – one in Mahadev Danda of Lalitpur district and one each in Dhandre Danda and Len Danda of Makawanpur district – and the total length of the tunnels will be 4.41 km. There will be 87 small and big bridges along the express way according to the approved DPR that has changed the alignment to preserve the Sikali temple and other historic places around Khokana and Bungamati areas, also due to protest from the locals.
The government has assigned Nepal Army a full responsibility of carrying out the express way project, segregating it into three segments.

Investment board approves Rs 64 billion industrial park

The 39th board meeting of the Investment Board Nepal today approved Rs 64 billion in foreign investment for the development of China-Nepal Friendship Industrial Park in Damak of Jhapa.
Damak Clean Industrial Park will prepare the detailed project report (DPR) of the industrial park, according to a press note issued by the board, which has also claimed that the multi-million-dollar project will be financed by Lhasa Economic and Technology Development Zone Jing-Ping Joint Creation Construction Project Development.
Likewise, the board meeting chaired by Prime Minister KP Sharma Oli also decided to ask a sealed proposal from two companies for the development of 756 MW storage-type Tamor Hydropower Project, which is located in Panchthar and Tehrathum districts. The project is expected to cost $1.2 billion based on the feasibility study conducted by the Nepal Electricity Authority (NEA) in 2016.
The board also informed that a joint venture of Hydroelectricity Investment and Development Company and Power Construction Corporation of China and another joint venture of Nebras Power Qatar Holding LLC and Fuji Electric Company, Japan had expressed interest in the project development during Nepal Investment Summit held in March.
The board also approved CG Logistics proposal to prepare the Multi Model Logistic Park in Biratnagar, the press note reads, adding that Green infrastructure has been approved to study of the proposed Railway Linked Private Freight Terminal in Janakpur.

Nepal-India cross-border railway DPR finalised

As Nepal is preparing for a consultation meeting on the construction of Kathmandu-Kerung Railway including preparing the detailed project report (DPR) of the project, India has handed over the DPR of proposed cross-border railway between India’s Rupaidiya and Kohalpur in Banke of Nepal.
According to the DPR, the proposed railway track will run parallel and between the East-West Highway and the Postal Highway.
After receiving the DPR from Indian government, the government is preparing to start the process of land acquisition for the proposed cross-border railway. The 18.5-km railway track will start from Rupaidiya Railway Station and pass through Jayaspur, Indrapur, Guruwa Gaun, Hawaldalpur, Rajhena and end in Kohalpur of Banke in Nepal. “While India – upon the completion of the survey work by its technicians – has submitted a report to Banke District Administration, it has submitted the project DPR to the Railway Department,” according to Railway Department.
But constructing the railway line track above the East-West Highway will have to clear a huge swathe of national parks, the department said, adding that the sanctuaries will be, however, safe.
According to the DPR, the railway line will be constructed two to three-km away from the East-West Highway. “Some human settlements may fall on the way but the government will compensate them,” the department said, adding that the government aims at constructing 4,000-km railway network in two decades. “The incumbent government will construct some 750-km long railway network in five years.”

Construction of Thankot-Naubise tunnel road to begin in October

The contract agreement for the construction of the Thankot-Naubise will be signed next month as the government is planning to start the construction from October.
According to the Department of Roads (DoR), the government has accepted the financial and technical proposal of Hajma and Ando JV – a Japanese construction company – for the construction of the tunnel way, connecting Basnet Chhap near Nepal Oil Corporation's (NOC) depot at Thankot and Sisne Khola of Naubise.
“We are now waiting for the agreement paper from Japan International Cooperation Agency (JICA),” the department said, adding that the agreement between the government and the construction company will be signed after it gets the agreement paper from JICA that has prepared the design of the tunnel way. JICA has publicised the 3D visual design of the tunnel way that will have three lanes, two lanes for vehicular movement and the remaining one to keep vehicles needing maintenance.
Though, the government has set the target to complete and bring the 2.35-km-long tunnel way into operation by 2022, there has been delay from the government side and also the development partner.
Currently, it takes more than two hours to travel from Naubise of Dhading to Nagdhunga of Kathmandu. But with the construction of the tunnel way, the distance can be travelled within seven minutes saving not only time but also money and fuel, with smooth traffic in and out of the Kathmandu valley.
The tunnel way will be connected to the Tribhuvan Highway with a 2.25-km-long access road.
Though the investment is huge, it is cost effective in the long run as Nepal and Japan governments have already signed an agreement regarding the construction of the tunnel way.
The Japanese government has agreed to lend loans at 0.01 per cent interest rate to Nepal for the construction of the tunnel way, according to the department.
The government has allocated Rs 6.27 billion for the next fiscal year to construct the Thankot-Naubise tunnel. As the department had asked for bid for construction of Thankot-Naubise tunnel, it received bids from five companies. Hajma and Ando JV, the Japanese firm, has won the bid at a price Rs 700 million lower than the government estimate. The government has estimated the project to cost Rs 16 billion. The tunnel way – of which detailed project report (DPR) has already been finalized – will affect 267 ropani of land. The government will provide some 33 ropani of land.

Nepal, Bangladesh agree to make joint investment in Nepal's hydropower

Nepal and Bangladesh – during a meeting held in Dhaka – agreed to jointly invest in the feasible hydropower project in Nepal.
A meeting of the energy secretaries from both the countries today in Dhaka also decided to use the existing setup of Indian transmission lines to trade power in the short run, though they had decided to study the prospect of building dedicated power lines in the long term.
Agreeing to make a joint investment in the projects based on the whitepaper issued after the last meeting, the secretary level meeting between energy officials of both countries today agreed to form a committee to study the prospect of transferring solar power technologies available in Bangladesh to Nepal.
According to energy secretary Dinesh Kumar Ghimire, the meeting has agreed for the joint investment on hydropower, collaboration, and cooperation on alternative energy and electricity export to Bangladesh. The agreement was signed by energy secretary Dinesh Ghimire and his Bangladeshi counterpart Ahmad Kaikaus during the Joint Steering Committee meeting in line with the Memorandum of Under-standing signed by the two countries on ‘Cooperation in the Field of Power Sector’ last August.
Discussions on the use of Indian transmission lines passing through the Siliguri Corridor – popularly known as Chicken’s Neck – emerged in the wake of recent amendments to the cross-border energy trading regulations by India. India has relaxed earlier provisions and given explicit recognition to tripartite arrangements in cross-border electricity trade. “The Transmission Planning Agency of India in consultation with the Transmission Planning Agency of the neighbouring country shall grant access to the Participating Entities to use Cross Border Transmission Link for cross border trade of electricity,” reads India’s Cross Border Trade of Electricity Regulations, 2019.
During past meetings, Nepal and Bangladesh pledged to make their best efforts in devising such trilateral arrangements.
Meanwhile, Bangladesh has formulated a policy to import 9,000 MW electricity from Nepal by 2040 as Bangladesh being one of the fastest growing economies – aided by its manufacturing sector – is an energy-hungry nation which makes it a lucrative market for power produced in Nepal.
The authorities from both countries have also planned to study and invest in 20 major hydropower project proposed in the white paper released by the energy ministry in May 2018. The proposed projects include four storage and other major hydroelectric power plants including Upper Arun, Dudhkoshi, Sunkoshi 2, Sunkoshi 3, West Seti and Phukot Karnali. Out of the 20 projects, the Nepal Electricity Authority (NEA) is currently evaluating the detailed project report (DPR) of the 800 MW Dudhkoshi Hydropower project and the recent project optimisation of Upper Arun, which revised its installed capacity from 725 MW to 1040 MW. The estimated annual cumulative output of the proposed and under-study projects stands at 42713.18 GWhr, nearly 11 times current total annual output.
Nepal’s power generation is expected to surge in the next fiscal year as some 43 projects with installed capacity of 1149 MW are expected to be joined in the national grid. Due to power surplus estimation in future, the government has focused on construction of high capacity substations at cross-border trade points and finalise the modalities for developing the 400 kV Butwal-Gorakhpur Transmission Line to facilitate cross border power trade.

China wants some concerns to be addressed before cross-border railway DPR talks

China has sought clarity on five basic issues ahead of Detail Project Report (DPR) for the Kerung-Kathmandu railway, during the fourth Nepal-China bilateral meeting that concluded today in Beijing without entering the agenda of the DPR.
Chinese officials asked the Nepali side to first meet the standards set by a pre-feasibility study for the project. Chinese officials at the meet pointed out the need for further technical study of the report, it had prepared earlier conducting a pre-feasibility study and submitted to the Nepal government.
Likewise, the Chinese officials asked for preparations to tackle the engineering challenges that may arise in future, and sought an in-depth study on minimizing possible geological disaster. The Chinese side also showed concern about measures to be taken to ensure the security of the railway system, apart from the need for a scientific study to minimize ecological impact in the affected areas.
China will enter into the matter of the feasibility study – also called the DPR – only after settling the the concerns it showed during the meeting, according to a participants in the meeting, though deputy chief of Mission at the Nepal Embassy in Beijing Sushil Kumar Lamsal claimed that both sides were encouraged by the output of the bilateral talks.
The Nepali team – led by secretary at the Ministry of Physical Infrastructure and Transport Devendra Karki for the fourth meeting in Beijing held the discussion with the Chinese team – led by deputy administrator of China's National Rail Administration An Lu Shan – agreed to hold fifth meeting in Kathmandu in December. The meeting might enter into the feasibility study, only if work Nepal addresses the five-point concern raised by Beijing, according to the Nepali teammates.
The Nepal-China railway mechanism was established two years ago. Its first meeting was held in November 2017 in Kathmandu, whereas the second meeting was held in Beijing and the third again in Kathmandu followed by the current meeting, the fourth one in Beijing.
The fifth meeting will be held in Kathmandu in December..

Nepali team leaves for Beijing to discuss cross-border railway links

A Nepali team today left for Beijing – on the invitation of the government of China – for consultation on the construction of cross border railway including preparing the detailed project report (DPR) of the project.
Secretary at the Ministry of Physical Infrastructure and Transport Devendra Karki is leading the Nepali team that has joint-secretary Gopal Prasad Sigdel, director-general of the Department of Railways Balram Mishra, spokesperson Aman Chitrakar and the representatives of the Finance Ministry, Foreign Ministry and the Nepali Embassy in Beijing. This will be the fourth railway meeting between Nepal and China.
The Nepali delegation will also have bilateral discussions with the office-bearers of the National Railway Authority of China, apart from participating in the Nepal-China Railway Cooperation Committee’s meeting in Beijing.
According to Karki, the Chinese and Nepali officials will dwell on topics including investment and construction modality. Nepal and China had agreed to move forward the process of railway construction during the official visit of Prime Minister KP Sharma Oli on June 19-24, 2018.
It has been long since Beijing has submitted the preliminary study report – prepared by the Chinese technical team – on the railway project to Nepal. “The report has paved the way for carrying out further home work regarding the modality and the modus operandi for the construction of this railway,” according to the Department of Railways.
According to the preliminary study, Kathmandu-Kerung railway will be 80-km with construction period of nine years at estimated cost of approximately Rs 300 billion, according to the department.
The proposed railway – under the China’ Belt and Road Initiative (BRI) – linking Kerung city in southern Tibet to Nepal’s capital Kathmandu, entering the country in Rasuwa district will eventually go to India making Nepal a transit country. However, the proposed railway links between Nepal and China have started a debate in Nepal with many dreaming of cheaper goods and a geostrategic balance to India, whereas others claiming it a pipedream of KP Oli government, which used it as a election winning strategy, and a debt trap for Nepal. However, the Chinese Ambassador to Nepal Hou Yanqi, recently, has tried to allay fears clarifying that the BRI is not a ‘debt trap’ that some countries may fall into, but an ‘economic pie’ that benefits the local population.
The pre-feasibility study report prepared by China in late 2018 accepts that the project is an extremely hard one but not impossible. “Technically it will be one of the world’s toughest railways to construct,” according to the report that has listed six extremes including topography, weather, hydrology and tectonics making the project hugely challenging.
About 98 per cent of the railway on the Nepal side will be in tunnels and on bridges according to the report that has proposed about five stopovers. Tracks will need to be built on steep terrain, as the railway climbs from an altitude of 1,400 metres in Kathmandu to about 4,000 metres in Tibet. The proposed route also cuts through the mountains near a major fault line – where the Indian plate meets the Eurasian plate to form the Himalayas – so the area is very susceptible to earthquakes.
Preliminary estimates of the Kerung-Kathmandu railway project – listed as one of the 64 to be considered under China’s BRI during the second Belt and Road Forum in Beijing in April – comes to around 38 billion yuan ($5.5 billion). The railway would be 170-km long from Tibet to Kathmandu. Although only one third of the total length falls on the Nepal side, it would account for almost half of the costs due to the extreme geology and climate.
The Chinese do not seem in a rush as the Chinese railway line from Shigatse needs to arrive at Kerung, which is only expected to happen by 2025, before it will be linked to Kathmandu and then Birgunj, and Pokhara. Both the sides – in Beijing – will also discuss a feasibility study for the Kathmandu-Pokhara railway, over which a joint team of Nepali and Chinese technicians had conducted a field visit last December. Nepal is seeking a grant from China to construct the railway, whereas China has not been very enthusiastic about it, the Nepali delegation added.
Likewise, the government is currently studying another railway project, the east-west railway planned in the southern plains. A new 34-km railway from the Indian state of Bihar to Nepal is due to start running in a few months but the government will have to hire a train driver from India and other technicians to operate its first modern rail.
India has submitted a ‘pre-engineering and traffic survey report’ for the Raxaul-Kathmandu railway last month. Nepal and India had signed an agreement to conduct a survey on connecting Kathmandu with the Indian town of Raxaul in Bihar during the fourth BIMSTEC summit, held in Kathmandu last August.  Konkan Railway Corporation Limited – owned by the Indian government – had been tasked with preparing the report.
According to the Indian report, there are two alternatives – some 200-km of tracks with a gradient of one per cent, the same as the Indian rail network; or 135-km of tracks at a gradient of 1.5 per cent. The survey has also suggested the construction of 40-km to 50-km of underground tunnels.
Nepal and India, however, still have differences over the gauge – the width – of the railway track. The Indian side has based its survey report on a broad gauge while Nepali technicians prefer a standard gauge as China generally uses a standard gauge in its railways and it will be easier to connect both the railway lines in future.

India submits pre-feasibility report of Kathmandu-Raxual railway project

India has submitted the pre-feasibility report of Kathmandu-Raxaul railway project to Nepal.
“The Indian government had submitted the report last week through the Ministry of Foreign Affairs aiming at conducting a further feasibility and detailed project report,” according to the foreign ministry.
“We have received the report and will soon forward it to Office of the Prime Minister and Council of Ministers and the Ministry of Physical Infrastructure and Transport too,” a source at the ministry said, adding that a joint engineering team of Department of Railways (DoRW) and the consultant team of Indian Railways had started conducting the pre-feasibility study of the project on June 8 last year. “The team comprising of members of the technical teams of both the countries has recommended the project to be feasible.”
The joint team had proposed Himal Cement Factory in Chobhar of Kathmandu as a railway station.
Though the government was planning to establish a company to construct the railway, but the process is put on hold because the Indian government has promised to build the railway through its own resources. The Indian Prime Minister had – during his visit to Nepal last May – assured that the entire cost to construct the railway project from Kathmandu to Raxaul would be covered by the Indian government, including establishment of an office, pre-feasibility study, detailed feasibility study (DFS), detailed project report (DPR) and as well as construction.
The works of the feasibility and detailed feasibility study will start by next fiscal year, according to the department that has estimated the railway project to cover a total length of 113-km, of which around 20 per cent will comprise of tunnels and bridges. “The proposed route of the Kathmandu-Raxaul railway will start from Kathmandu and will pass along the Bagmati River all the way to Nijgadh extending through Birgunj to Raxaul.”
Though, a railway track connecting Birgunj to Raxaul already exists, it is yet to be used to transport passengers.

DPRs of cross border railways to be completed within a year: Mahaseth

Nepal expects to complete Detail Project Reports (DPR) of cross border railways within a year.
Addressing a session on 'Building Sustainable Transport Infrastructure' during the Nepal Investment Summit 2019, here today, minister for Physical Infrastructure and Transport Raghubir Mahaseth said that Nepal is expecting to complete the (DPR) of Kathmandu-Kerung and Kathmandu-Raxual railways within a year.
"The East-West Railway is around 1100-kilometer," he said, adding that Nepal has already completed pre-feasibility survey of Kathmandu-Kerung and Kathmandu-Raxual railways. "We hope to complete DPRs of both the railways within one year."
He also said that the estimated cost of proposed Kathmandu-Kerung railway is around $3 billion. "Nepal is planning to finalise the DPR of the Kathmandu-Kerung railway project in six months," he said, adding that there will be discussion with the Chinese side about the modality of the DPR by the first week of April. "The government is working to improve transport infrastructure in the country."
Highlighting the need for cable car and e-vehicle among other transportation infrastructures, as an alternative transportation models in Nepal, he said that Nepal doesnot have technology in infrastructure development of Nepal. "Thus Nepal should develop this sector with the support from neighbouring countries."
Encouraging the private sector to invest in the aviation sector, Mahaseth said that Nepal is now heading to achieve sound economic growth. "Nepal is graduating to the middle-income country by 2030."
Inaugurated by the Prime Minister KP Sharma Oli today morning, the third investment summit is witnessing parallel sessions 'Infrastructure: Building Sustainable Transport Infrastructure', 'Agro and Forest Products: Opportunities Through Niche and Value Chains' and two plenary sessions 'Invest in Nepal: Experience Sharing', 'International Experience Sharing' and 'Financing for Infrastructure Development", and over 600 foreign investors including high-level delegates from 40 countries are sharing their experience.
Mahaseth, on the occasion, said
Speaking, on the occasion, panelists in the discussion said that Nepal needs to construct infrastructure in the transport sector and there are ample opportunities to invest in Nepal.

Nepal Army shortlists six firms to build bridges along Express Way

The Nepali Army (NA) today shortlisted six international contractors for construction of 62 high-arch bridges along the 76.2-km-long Kathmandu-Tarai-Madhesh Expressway.
Asking the interested companies to submit their proposals based on engineering, procurement and construction (EPC) model, the army had called a global tender bid to submit the proposal for the construction of the bridges on April 5.
According to the army, five Chinese firms and one Turkish construction company have been selected in the initial phase. The shortlisted companies are China State Construction Engineering Corporation, Hunan Road and Bridge Construction Group Company, China Railway 20 Bureau Group Corporation, COVEC-CREGC Joint Venture and Longjian Road and Bridge Company Limited of China, and Dogus Insaat Ve Ticaret AS & Makyol Insaat Sanayi Turizm Ve Ticaret AS Joint Venture of Turkey.
"According to the tender notice, the company that has been selected will be responsible for building 62 bridges out of the 99 bridges," NA spokesperson Brigadier General Gokul Bhandari said, adding that the remaining bridges will be built by the Nepal Army. "The selected firm will be responsible for the design, planning, engineering, procurement, construction, commissioning, operation and maintenance of the high-arch bridges."
The Nepali Army will further study the technical and financial proposals of the six shortlisted companies and will soon select the best company.
Earlier, the Nepali Army had decided to award the contract to conduct the detailed project report (DPR) of the Expressway to a South Korean joint venture company called Yooshin and Pyunghwa on September 19. The Korean joint venture company will submit the DPR by February, and the project is expected to be completed four years after the DPR has been submitted.
The Nepali Army has been assigned the responsibility to construct the Expressway, which it has separated into three segments. Out of the 76.2-km-long expressway, it plans to construct 17-km on its own, hire dependable Nepali contractors for 37-km of the stretch and sign up foreign contractors for the remaining 22.2-km of tunnel and bridge sections.

DPR of Kathmandu-Tarai-Madhes Expressway by February 2

The detail project report (DPR) of Kathmandu-Tarai-Madhes Expressway will be completed by February 2, 2019. Nepal Army (NA) and South Korean company Soosung Engineering today signed an agreement on the preparation of DPR of the national pride project Kathmandu-Tarai- Madhes Expressway.
Project Chief and Major General of Nepal Army Yogendra Bahadur Khand and Chairman of the Korean company Keehyun Hwang signed the agreement at the Army Headquarters to complete the DPR.
According to the agreement, the DPR should be completed within 1105 days beginning from October 21 in a total cost of Rs 101 million. The Korean company was selected for the DPR job – out of a total of 16 consulting firms that had applied – as the earlier DPR prepared by the Indian company Infrastructure Leasing and Financial Services (IF&FS) has been alleged for its high price. The Indian firm IL&FS has asked minimum of Rs 600 million for the DPR of Kathmandu-Tarai-Madhesh Expressway.
The Cabinet had handed over the Kathmandu-Tarai-Madhesh Expressway to the Nepal Army last year to complete the project within 5 years.
After failing to purchase the DPR prepared by an IL&FS, the Nepal Army had called an Expression of Interest within April 12, which was extended twice until April 28 due to technical reasons.
A total of 16 firms, including a domestic one, had shown interest to prepare the DPR of the national pride project. One year into construction, the Nepal Army is carrying out preliminary works without a DPR of the expressway that is expected to bring the Capital and Nijgadh in Bara within an hour’s drive.
The Army, which has begun construction of the 76-km road is working on the basis of a feasibility study conducted by the Asian Development Bank in 2008. The Army is clearing trees and acquiring land in the project area.

IBN to publish detailed feasibility study notice for metro rail tomorrow

The Investment Board Nepal (IBN) is publishing a notice seeking expression of interest (EoI) to conduct the detailed feasibility study of the Nagdhunga-Koteshwor-Dhulikhel metro rail project tomorrow.
The 21-day notice for Route Number 2 of the metro rail project will be open for all national and international companies, according to the board.
According to the chief executive of the board Maha Prasad Adhikari, Route Number 2 of the metro rail project comprises Nagdhunga-Kalanki-Koteshwor in the Kathmandu Valley and Dhulikhel of Kavre district. "It will be 37-km long," he said, adding that the preliminary study of the project was jointly prepared by the Department of Railways and Japan International Cooperation Agency (JICA).
The government had earlier on April 30 directed the board to prepare a detailed feasibility study of the Nagdhunga-Kalanki-Koteshwor-Dhulikhel section (Route Number 2) of metro rail project. The 30th executive board meeting held under the chair Prime Minister KP Sharma Oli had mandated the board to conduct detailed feasibility study.
The board that is planning to select a company within six months. The shortlisted company will have to complete detailed feasibility study within 15 months.
"The detailed feasibility report will give a clear picture of investment model of the project," Adhikari sadi, adding that and the detailed project report will also make clear actual cost and time that will be required to build the project.
The metro rail will be operated under the public-private partnership (PPP) model, he said, adding that the board will select a company that also has experience of building projects under the PPP model, though the domestic companies have almost no experience of building any project under PPP model.
Likewise, the proposed Route Number 1 of extends from Budhanilkantha in Kathmandu to Satdobato and Khokana in Lalitpur. The $800-million monorail project has been delayed also due to the disagreement with yet another company earlier.
Earlier, the board was planning to sign a memorandum of understanding with Kathmandu Monorail Company (KMC). But the board has postponed signing since the company failed to fulfill all the requirements, it had agreed earlier.
The board had written a letter to prospective builder on May 3 asking it to deposit the performance security, according to the preliminary Memorandum of Understanding (MoU). But the company was unable to deposit Rs 100 million that was required as performance security forcing the board to search for new company, the board informed. "It has failed to deposit the performance guarantee."
However, the company – that was planning to construct the Kathmandu Monorail Project under build, own, operate, transfer (BOOT) model – said that it is not convinced with three clauses in the MoU, though it had shown interest earlier. "We are not comfortable with the clause that the company will have to forfeit the deposit amount as performance security, if it is unable to complete the DPR on time,” said chairman of the company DN Thapa.
Likewise, the company has also reservations on right of the DPR. According to Thapa, the company is also unhappy about the clause that reads that 'if the government is not satisfied with the DPR, it can ask another company to prepare a new DPR.'
The board has given Kathmandu Monorail Company two days to deposit Rs100 million as performance guarantee before signing the deal.
Two years ago, the company had submitted a proposal to the board showing its willingness to build the monorail along the ring road in the Kathmandu Valley. After receiving the proposal, the board – in consultation with National Planning Commission (NPC) – had formed a committee under the leadership of a member of the planning commission.
After committee has recommended the board to let Kathmandu Monorail Companyt to prepare a DPR for the project. The panel had also suggested the board to include a provision in the understanding clearly stating that the government will not bear the cost of the DPR, if the project is dropped meaning if the board – by any chance or condition – decides against developing the monorail project, it will not be liable to pay the company for the DPR. Likewise, if the board decides to award the construction project to some other developer, Kathmandu Monorail Company will receive payment only if the other party agrees to purchase the report.
The builder found the clauses unacceptable forcing the board to call for new expression of interest to conduct the detailed feasibility study.