May 22, 2013

Govt. issues permission to construct tunnel highway


KATHMANDU, MAY 22--The government has issued permission to Nepal Purbadhar Bikas Company (NPBC) to construct the Kathmandu-Kulekhani-Hetauda Tunnel Highway. After a week of signing of concession agreement, the Ministry of Physical Infrastructure and Transport on Tuesday, issued the letter of permission to the company giving go-ahead to start the construction work.

Tulasi Prasad Sitaula, secretary of the Physical Infrastructure Ministry handed over the letter to Chairman of the NPBC Kush Kumar Joshi amid a function on Tuesday. The NPBC, which was especially established to under take the tunnel highway project has set the target go complete the construction of 58 km highway within four year making Hetauda only an hour drive from Kathmandu.

The highway that will start from Balkhu in Kathmandu will have three tunnels with total distance of 4.5 km in Chobhar, Kulekhani and Bhaise to reach Hetauda. The tunnel highway is estimated to cost Rs 34.5 billion. The tunnel highway is being carried out based on the Private Financing in Build and Operation of Infrastructure Act 2006 (BOOT Act) through the private, public and people’s partnership.

“This has become first project that is going to be implemented after seven years of enactment of the BOOT Act,” said Situala, addressing the commencement letter handover programme. He said that the operation of the tunnel highway would cut the travel distance and help save around Rs 15 billion a year reducing the fuel consumption. He also directed the NPBC to present the financial closer within a year as per the concession agreement.

As per the agreement reached with the government last Tuesday, the company has to present the financial closer within a year to assure the government about the resources required to construct the highway. The highway will be handed over to the government by the NPBC after 30 years (in 2043) of operation based on the BOOT Act.

Sitaula said that the government would also continuously monitor the project and provide support as required. The tunnel highway is the second large scale highway project after the Kathmandu-Tarai Fast Track road, which is also planned under the BOOT modality. The NPBC has stated that it would complete the project within the stipulated time using the internal resources.

Chairman of the NPBC Joshi said that the project was “challenge as well as opportunity” for the tunnel highway being first of its kind entrusted by the government to develop using the local resources and expertise. “We will be able to payback to investors within 8-12 years,” he added saying that the toll rate was fixed in the range of Rs 160 to 3,000 per vehicle depending on their types.

The Federation of Nepalese Chambers of Commerce and Industry, Federation of Contractors Association of Nepal, bank and financial institutions, Nepal Association of Foreign Employment Agencies, Non-resident Nepalese, around 200,000 general people and local government bodies of Kathmandu, Lalitpur and Makawanpur are investing in the tunnel highway. The NPBC said that they would start the construction work within a month.

“We will be constructing the highway in different packages under road, bridges and tunnel sections,” said Lal Krishna KC, vice chairman of the NPBC during his presentation in the programme. He added apart from three tunnels there would be 25 bridges including 16 big ones and huge land feeling for making the road shorter, reducing vehicle operation cost and travel time.

Fast Track RFP submission date extended 
KATHMANDU, MAY 22--The Physical Infrastructure Ministry on Tuesday extended the bid submission date of the Fast Track road by yet another one month. Additional time was provided as per the demand of the short-listed firms to submit the proposal to develop the express highway.

“We have provided time of up to June 21 after the Larsen and Turbo (L&T) Infrastructure Development Projects sought more time,” said Situala. Three Indian firms—Reliance Infrastructure, Infrastructure Leasing & Financial Services (IL&FS) and L&T are in the race to win contract of the Fast Track road, 76 km. Earlier in February too, the government had extended the deadline by one month till May 21.

The Indian firms had been demanding to extend the deadline saying that they were not able to complete the detailed engineering survey of the express highway to prepare the proposal for the project. “Out of the three firms, only L&T seems serious to bag the project,” said Situala.

Originally, issuing the request for proposal (RFP) in December last year, the government had provided four months until April 21 to come up with financial and technical proposals to build the road under the BOOT model. The RFP requires the bidding firms to carry detailed surveys, investigations and other detailed examination of the project visiting sites before submitting their bids. 

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