Govt launches WB funded $99m project

THE government has launched an ambitious Nepal-India Regional Trade and Transport Project (NIRTTP) which is expected to considerably reduce the transport time and logistical costs for bilateral trade between the two neighbours Nepal and India and transit trade along the Kathmandu-Kolkata corridor. Funded by World Bank (WB), the $99 million five-year project has three major components—modernising transport and transit arrangements between Nepal and India, strengthening trade-related institutional capacity in Nepal and improving selected trade-related infrastructure. The project will upgrade and expand the 33km section of the Narayanghat- Mugling road to the Asian Highway standard and address road safety, axle load control and environmental sustainability issues along the trade corridor. The Narayanghat-Mugling section experiences the heaviest traffic load, accounting for 90 percent of Nepal’s total international trade traffic. According to Mahesh Raj Timsina, the project coordinator, the section will be expanded to double lane road with a width of 9-11 metre. In a bid to maintain the road, an axle load control system system will be installed in at least two points between Birgunj and Kathmandu. The system will measure the weight of vehicles that ferry imported goods to Kathmandu. “We will set a standard as regards the maximum load that could be carried along the road and prevent transportation of goods,” said Timilsina. Under the project, the inland container depots (ICDs) in Birgunj and Bhairahawa will also be improved. There is also a plan to establish a container freight station (CFS) in Chovar, Kathmandu to facilitate the loading and distribution of goods in the Valley. It will contain facilities such as a parking lot and warehousing, and possibly customs clearance. Similarly, under the component of strengthening trade-related institutional capacity, the project will focus on two programmes: to set up a standardized lab and a single window trade facilitation centre. Ministry officials said due to the lack of standardized lab, traders are forced to send some of the items to Haldiya for testing and certification. “It will bring a relief to the traders once a world standard sanitary and phytosanitary (SPS) lab is set up in the country,” said an official. The WB has extended a total of $99 million, which includes $69 million soft loan and $30 million grant for the project. Timsina said that $48 million alone would be invested in the improvement of the Narayangadh-Muglin road and $51 million for other components. Trade expert Ratnakar Adhikary said infrastructure has been the major bottleneck of country’s foreign trade. “Projects like this will help address the infrastructure- related problems, both immediately and on long term basis,” he said.