The agreement was signed between NPBCL Chairman Kush Kumar Joshi and Chairman of TBi Holdings Bhaban Bhatta amid a function held here today. Bhatta is a successful NRN based in Japan and is also the Vice President of National Coordination Council of NRN Association.
Addressing the contract signing ceremony, Joshi said that the investment by TBi Holdings will give a boost to much needed participation of the NRN community in developing the tunnel highway project. The proposed 58-km highway, which will link Hetauda with the Capital in one-hour drive, is estimated to cost Rs 35 billion.
“Even as there are some difficulties in government rules, we are committed to completing the project within three years,” said Joshi. He said that they had also received investment from NRNs living in Europe, US and Gulf countries.
The tunnel highway is being developed under Private Financing in Build and Operation of Infrastructures Act (BOOT Act) with a 4P initiative — private, people, public and partnership. Bhatta said that the investment in the tunnel highway was an opportunity to serve the nation. “This highway helps Nepal with efficiency, savings and happiness,” he added. TBi Group promoted by Bhatta also has investment in Nepal in other sectors that include media, apparels, breweries and airlines.
In a bid to develop the project, NPBCL plans to put together Rs 10.46 billion in share investments from promoters and local people of Kathmandu and Makwanpur, and around Rs 18 billion in debt financing. Likewise, it has been planning to make an initial public offering worth Rs 6.97 billion to finance the project.
The newly-elected President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and a board member of NPBCL, Pradeep Jung Pandey said that there had been a need to increase investment in infrastructure projects. “Tunnel highway, in particular, will help the nation reduce trade deficit,” he said, adding that once the road comes into operation, import of petroleum products could be brought down by around Rs 20 billion a year owing to the shorter route.
The government and NPBCL had signed an agreement to develop the tunnel highway under BOOT Act in May last year. The proposed highway will have three tunnels with a total length of 4.55 km at Chobhar in Kathmandu, and Kulekhani and Bhainse in Makwanpur. - See more at: http://thehimalayantimes.com/fullNews.php?headline=TBi+to+invest+in++tunnel+highway+to+Hetauda&NewsID=411944#sthash.Z7J6EvZl.dpuf
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