3 firms short-listed for Fast Track

The government has short-listed three firms for the construction of much touted Kathmandu-Terai Fast Track Project. A total of nine different firms had bought expression of interest (EoI) in a bid to win the project.
"Reliance Infrastructure, Larsen & Toubro (L&T) and Infrastructure Leasing & Financial Services (IL&FS) have been short listed for construction of the Fast Track Project," Tulsi Prasad Sitaula, secretary at the Ministry of Physical Planning, Works and Transport Management (MoPPWTM) told Republica on Friday. All the short-listed firms are India´s leading infrastructure development company.
According to Sitaula, the government has sought request for proposal (RFP) from three short-listed contractors this week. "We will choose one contractor from among the short-listed companies on the basis of detailed proposal they submit to the government," Sitaula said.
A total of nine contactors including Nepali, South Korean and Indian firms had bought EoI to develop the much touted Fast Track Project that connects Kathmandu and Terai through 76 km long road stretch. "However, only four of them submitted the proposal to the government," Sitaula said. "Another Indian construction company Gomman India was not selected."
The other contractors that bought EoI for the construction of the project were Samsung Kalika Consortium -- a consortium of Korean company Samsung Engineering and Kalika Construction, a domestic company --, Landmark Worldwide (LMW), Srei Infrastructure Finance and a domestic construction company Sonakshi Infrastructure Development.
"The companies have been selected on the basis of their previous experience working under the built-own-operate-transfer (BOOT) and other capabilities such as capital and their past history of completing work in time," Sitaula said.
The government has decided to develop the Fast Track Project under the BOOT. "We will have a rigorous study of the detailed proposal of the short-listed companies once they submit to us," Sitaula further added.
The government, after a long push to acquire land in the Khokana area of Kathmandu for Fast Track Project, has decided to reduce the width of the road.
"We realized that acquiring land in the Khokana area is too difficult," Sitaula said. "Finally, we made a decision to reduce the width of road as much as possible to make land acquisition easier."
As of now, the government has almost completed the task of land acquisition. "The land acquisition process has been done," Sitaula said. "We have to speed up the process of track opening." According to Sitaula, almost 70 percent track opening has been completed as of December first week.

Govt decision puts Fast Track project in jeopardy: Experts

Experts and bureaucrats have warned that the government´s recent decision to make a common alignment for Kathmandu-Terai Fast Track and Kathmandu-Hetauda Tunnel Highway in the Khokana area might create problem in implementing the one of the highly prioritized projects.
Saroj Man Shrestha, former project chief of the fast track project said the decision to merge the alignment of the two different infrastructures, made jointly by National Planning Commission (NPC) and Ministry of Physical Planning, Works and Transport Management (MoPPWTM) was a major setback for the implementation of the proposed expressway.
“These are completely two different projects having different nature and investors. Making common alignment for both the projects is not practical in any sense,” Shrestha told Republica on Sunday.
The government recently took the decision arguing that the proposed alignment would bring down the cost of land acquisition in Khokana area for the both project.
Kishore Nath Gongal, project chief of the fast track project, however, expressed ignorance about the government´s decision about the common alignment.
“I have no idea about the decision as I have not been formally informed about it. I only came to know about it from the media. Lately, few potential investors who have already bought expression of interest (EoI) to develop the Fast Track have also voiced concern over the decision,” said Gongal.
The proposed 76 km fast track will connect Kathmandu with central Tarai while 50-km Tunnel Highway will link Kathmandu with Hetauda.
After the government´s decision both the road projects will share common alignment of 15 kilometers in Khokana which is most expensive of the lands to be acquired for the implementation of those infrastructures.
Officials at the MoPPWTM also have expressed worry about the government´s decision as it might put the much-hyped fast track at risk.
“The decision by the concerned officials at the NPC and the ministry without studying the problems while sharing the project sites in 15 km long stretch given that both are going to be implemented under Built Operate Own and Transfer (BOOT) modality of Public Private Partnership,” said the source.
The government had handed over the Tunnel Highway project to the Nepal Purvadhar Bikas Company (NPBC) under the BOOT act in May to complete the project in four years.
Similarly, the government has called for Expression of Interest (EoI) from the investors for the fast track.
Meanwhile, Dipendra Bahadur Kshetry, vice-chairperson of the NPC also said common alignment for two mega projects would be cost effective in the long-term. “Though the concept of common alignment is cost effective, we need to work hard to ensure the effective implementation of this idea in these projects which are different in nature,” said.

Fast Track, Tunnel Highway to have common alignment in Khokana

In order to minimize the cost of land acquisition in Khokana, Laitpur, the government has decided to develop the track being opened in Khokana area as a common alignment for both Kathmandu-Tarai Fast Track and Kathmandu-Hetauda Tunnel Highway.
Previously, National Planning Commission (NPC) and Ministry of Physical Planning, Works and Transport Management (MoPPWTM) had cited Khokana as the entry/exit point for the Fast Track road. They had identified Balkhu as entry/exit point for the Tunnel Highway.
“The MoPPWM and NPC have agreed in principle to make a common alignment for both the roads projects,” Hari Bhakta Shrestha, joint secretary at MoPPWTM, told Republica.
The Fast Track, which will connect Kathmandu and Nijghad of Bara, is a 76-km expressway, while the 50-km Tunnel Highway will link Kathmandu and Hetauda.
“Now both the road projects will share common alignment of 15 kilometers in Khokana area,” said Shrestha.
Some officials at the ministry, however, said the decision to have common alignment for both the roads has complicated things for the fast track project, particularly as sharing of certain segment of roads might turn international investors away.
“The decision might put the very project (fast track) at risk. But, surprisingly, concerned officials at the NPC and the ministry took the decision even without studying how they will manage the shared section, among others, in the two BOOT projects," said a source.
Shrestha too admitted a serious study was needed to work out ways to manage the common section. "But the government will do that aptly," he said. He even disclosed that the decision was taken based on the request Khokana locals.
"Their request made sense as well, as now we would be able to acquire land for the project easily. Also, it will lower our land acquisition cost,” he added.
Dipendra Bahadur Kshetry, vice-chairperson of the NPC, also said common alignment for two mega projects would be cost effective in the long-term.
The government had handed over the Tunnel Highway project to the Nepal Purvadhar Bikas Company (NPBC) under the build-own-operate and transfer (BOOT) act in May, whereas it has called for expression of interest (EoI) from the contractors for the Fast Track project only recently.
The NPBC has been asked to develop the Tunnel Highway within 4 years.
"NPBC officials have agreed on the concept of common alignment. But I think it will be a difficult task for government to synchronize the development of the two projects," Kshetry added.