Apr 14, 2014

Consultant urges government to adopt DBB model

For Tamsaria-Butwal-Bhairahawa section of Mechi-Mahakali Railway 
KATHMANDU, April 14--The consultant preparing the detailed project report (DPR) of Tamsaria-Butwal-Bhairahawa section — a section of the proposed Mechi-Mahakali Railway — has recommended the government to construct the section under design, bid and build (DBB) model.


The government has been suggested the traditional DBB model at a time when it has been finding it hard to fund mega infrastructure projects. The ambitious Mechi-Mahakali rail (1,317-km) will extend along the length of Nepal from the eastern to the western borders and Tamsaria-Butwal-Bhairahawa (107-km) is one of the sections.

Tamsaria-Butwal-Bhairahawa section that has aimed of taking the railway network to Lumbini, the birth place of lord Buddha, is estimated to cost Rs 64 billion — Rs 43 billion for construction and Rs 21 billion for land acquisition — as per the draft DPR.

A consortium consisting of South Korean-Dohwa Engineering, Kunhwa Consulting and Engineering, Korean Railway Network Authority, and Full Bright Consultancy, a Nepali company, is preparing to submit the final detailed report within June this year.

Lal Krishna KC, a representative of the consultant said that since the initial rate of return under public private partnership (PPP) was negative, DBB is the best model for the construction of the section. Under this model, which is known as a conventional method of procurement and carrying out projects, the government can design and construct the railway network signing contracts with different companies.

“If the government wants to adopt PPP, the section will cost $969 million and in DBB model, it is possible at $915 million,” said the Korean firms’ representatives in a recent interaction held on the detailed study report. They said that the government can take loan at below 1.5 per cent interest rate from multinational development partners to undertake the project.

Detailed study of Bardibas-Simara-Birgunj (136-km) section, the most feasible section of the mega railway project, was completed last year. This section costing over Rs 80 billion is listed as viable under the PPP model. However, the government is yet to initiate work on inviting the private sector to construct this section.

Currently, the government is also conducting DPR of Simara-Tamsaria (114-km) section of the Mechi-Mahakali railway. However, a consortium of Korean and Nepali companies is taking more time for detailed report preparation due to the dispute regarding alignment that passes through the Chitwan National Park.

“We are preparing DPR and also holding discussions with concerned government agencies to find a solution,” said Rajeshwor Man Singh, superintendent engineer of the Department of Railways. He added that they were also preparing to start DPR of other sections falling west of Butwal within the current fiscal year.
The stretch falling west of Butwal is 420-km long and reaches up to Gaddachowki in Mahendranagar.

The DPR consultants will carry out the study on the basis of the feasibility study report prepared by RITES in 2010. The DPR includes designs and drawings of all the infrastructure including railway tracks, electrical traction system, power supply system, signalling and emergency communication, bridges, culverts, station buildings, station platforms, sheds and workshops and other required structures and facilities for operation of the railway. - See more at: http://thehimalayantimes.com/fullNews.php?headline=Consultant+urges+government+to+adopt+DBB+model&NewsID=411656#sthash.8fXPIHmq.dpuf

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