Shortlisted Indian firms reluctant to submit RFP

As the deadline for submission of Request for Proposal (RFP) document for the Kathmandu-Tarai Madhesh Fast Track approaches, officials have expressed worries over the fate of the national pride project.“ "The RFP submission deadline has already been extended twice on different pretexts. However, the work progress of the shortlisted infrastructure developers on RFP is not satisfacto”y," said Ananta Acharya, project manager of Kathmandu-Tarai Madhesh Fast Track. The 76-km expressway links Kathmandu with Nijgadh of Bara. Upon request of the two shortlisted developers -- L&T Infrastructure and Development Projects Limited and IL&FS Transportation Network Limited, the Ministry of Physical Infrastructure and Transport (MoPIT) had extended deadline by three months on June 21. The deadline expires on September 21. The government had shortlisted three Indian developers after evaluating their Expression of Interest in January. However, Reliance Transport Limited did not turn up at the project office even for term extension before May 21. The other two developers, however, sought additional three-month time in June, saying that they wanted to carry out further study after the government issued a license to a Nepali company to develop tunnel highway that goes parallel to the expressway“ "They asked the government to share the risk and make guarantee for the traffic thresho”d," said Acharya. According to him, the government assured them to address their concern and suggested them to include their demands in the RFP document.“ "We have promised them to extend the lease period under BOOT model and are open to listen to any proposa”s," said Tulasi Prasad Sitaula, secretary at MoPIT, told Republica. He, however, said the Indian developers might not be interested to invest in Nepal. He attributed low rate of return and unfavorable investment climate for their hesitation to put their money in Nepal“ "If they fail to submit RFP document within September 21, the government will invest on it as it is national pride proje”t," he added. The estimated cost of project is Rs 76 billion.