Despite persisting political uncertainty and absence of full-fledged budget for this fiscal year, the government has continued the process to implement the donor-funded projects to construct strategic bridges and roads.
The Ministry of Finance (MoF) and Ministry of Physical Planning, Works and Transport Management (MoPPWTM) have already agreed to implement the projects funded by the World Bank (WB) and the Asian Development Bank (ADB).
The WB has agreed to extend support worth Rs US$ 60 million to construct the bridges along the strategically significance roads that includes highways and feeder roads. Similarly, the ADB has pledged to provide an assistance of US$ 75 million for strategic roads.
The MoPPWTM, the implementing ministry, has started preparation for tender process for the projects after it received a nod from the MoF few weeks back.
“Given the absence of full-fleged budget, the MoF has given us its consent for the projects in line with the government´s policy not to disturb the implementation of the programs to be run under foreign assistance,” Tulsi Prasad Sitaula, secretary at the MoPPWTM told Republica on Wednesday.
The MoF, National Planning Commission (NPC) and MoPPWTM jointly have reached in an understanding that the donor funded projects should not be disrupted despite the limitation of one-third budget.
As per the pact with the WB last year, the government is obliged to begin the bridge project from the current fiscal year.
Under the strategic bridge project, the government is constructing 100 bridges along different strategic road networks. "Our ministry has already started preparation for tender process. However, we are not in a position to disclose the names of the bridges selected under the project as we will face political pressure to construct the bridges on the roads that are not on project´s purview," said Sitaula.
A joint team from WB and MoPPWTM will finalise the list of 100 bridges to be implemented under the project.
However, the government is still to ink the deal with ADB for the proposed road construction project. “However, we can initiate the implementation of road construction project even without signing agreement under the ´Retro Active Financing´ - a provision that recepient country to lauch the project without signing formal pact on the technical ground,"Sitaula said.
Uner the strategic road project, the government is constructing 600-km long roads which include Sunsari - Chatara - Kanchanpur, Hilepani - Diktel and Diktel - Bhojpur roads. As per the understanding, the ADB will reimburse the amount spent by the governemnt in the construction of roads once the formal pact is signed.
Economics, finance, trade, investment, inclusive economic development and political economy of public policy
Monday, September 17, 2012
Implementation of new programs to start: Govt
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