Nov 30, 2011

Infra gets whopping Rs 85.96 billion

KATHMANDU, JUL 15 - Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari has put huge money (Rs 85.96 billion) in the infrastructure sector, making it a tool for national development and employment generation.

With such a resource allocation, the government plans to complete the track opening of ongoing road projects, address energy crisis, and initiate work on the construction of multi-billion East-West Electric Railway. The budget has increased resources for the sector by over Rs 20 billion compared to FY 2010-12.

The budget allocated for the infrastructure sector is 22.33 percent of the total budget of Rs 384.9 billion for the next fiscal year.
A total of Rs 37.16 billion has been allocated for the transport sector and Rs 15.88 billion for housing and community. Rs 23 billion and Rs 9.92 billion have been set aside for energy and irrigation sectors, respectively.

In a bid to address slow progress in infrastructure projects, the budget seeks to operate big physical infrastructure projects through a separate institutional mechanism. “To this effect, a ‘fast track’ mechanism will be adopted for the construction and completion of projects the national importance,” states the budget.

The government will also set up ‘quality and standards’ of construction and maintenance of roads and bridges. “The system of technical test and monitoring and evaluation will be made effective,” said Finance Minister Bharat Mohan Adhikari presenting the budget for the next fiscal year at the parliament on Friday. He said in case of discovery of defective construction, necessary arrangement will be made for getting compensation from the contractor. Giving major priority to road sector development, the government has allocated Rs 37.16 billion for the transport sector. A total of Rs 4.98 billion has been earmarked to expedite the construction of the Postal Highway.

In the next fiscal year, the construction of the North-South Highway will be intensified and arrangement to link it to the Postal Highway will be made. “Priority will be given to the construction of a road along the Chainpur-Taklakot, Sirdibas-Chumchet-Chhekampar, Olangchung -Gola, Jiri- Salleri sector,” said Adhikari, adding that the government has allocated Rs 1.75 billion for the Mid-hill Highway.

In the railway sector transport development, construction work of East-West Terai Railways will be initiated. Nepal Jayagar-Janakpur Railways service will be extended up to Bardibas. Similarly, the construction of a railway line in Rani Sikiyahi-Biratnagar sector will be initiated. Likewise, feasibility studies on metro/monorail services in the Kathmandu Valley will also be initiated and the budget will be allocated to develop waterways in big rivers, including Koshi.

There has been a significant increment in the budget for the energy sector. A total of Rs 23 billion has been allocated for the sector for the next fiscal year against Rs 16.69 of the current fiscal year. Finance Minister Adhikari said the government will come up with a master plan for hydropower development. As a measure to solve the energy crisis, some micro, medium and large hydropower projects will be initiated. Within the next three years, the government plans to take the 600 MW Budhigandaki Reservoir Project into the implementation stage. A Detailed Project Report in this regard will also be carried out in the next fiscal year. Minister Adhikari said an arrangement to set up a separate development committee for this project has already been made.

Te government will start integrated physical and social infrastructure development programmes for setting up of 10 mega cities along the Mid-Hill Highway. The government will also make arrangements to implement all other related work concerning to this project.

People’s Housing Programme introduced in 2009-10 has been given continuity to incorporate Badi, Gandharva, Banakaria, Surel communities and conflict victims who have lost their houses. So far, 1758 families have been provided with housing facilities under this programme.

Minister Adhikari said the infrastructural development would be initiated in some places of Humla, Kalikot, Pyuthan, Gulmi, Mygdi and Rasuwa districts to build dense settlements in a planned way.

To provide irrigation facilities to potential agricultural land within next seven years, the government will launch irrigation programmes. Small, mid-size and large irrigation projects based on geographical situation will be implemented. The government has allocated a total of Rs 9.92 billion for the Ministry of Irrigation for next fiscal year for the development of the irrigation sector. For the completion of the muck Sikta Project, the government has provided Rs 990 million.  Simialrly, feasibility studies of Trishuli-Chitwan, Kaligandaki-Tinau, Kaligandaki- Nawalparasi, Sunkoshi-Kamala and Tamor-Morang diversion projects will be started. And, detailed project proposal will also be prepared for feasible projects.

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