Kathmandu-Tarai fast track project uncertain

Investment in the much-touted Kathmandu-Tarai Fast Track, a national pride project, has become more uncertain as the government has stopped the process for selecting contractor for the multi-million dollar project. Concern officials are not in a mood to restart the bidding after an international firm cold shouldered the government´s call for investment. The project fell into uncertainty when all three short listed international developers did not submit their Request for Proposal (RFP) for the project by September 21-- the last extended deadline. The Ministry of Physical Infrastructure and Transport (MoPIT) has not called any meeting of the steering committee of the project. The Minister for Physical Infrastructure and Transport heads the committee. Tulasi Prasad Situala, secretary at MoPIT told Republica that the process of selecting firm to develop the four-lane 76-km expressway has been virtually stalled as only a political government to be formed after the elections can take a decision regarding the project. “The process for selecting the contractor for the project has virtually been halted as the government is currently busy making preparations for the elections,” said Sitaula. Formation of a poiltical government would take at least two months after the elections are held. The project is one among the 21 priority projects. MoPIT Officials are of the view that the options of finding international developer and investor have almost come to an end, therefore the government should implement it on multi-year basis using own resources. Implementation of the project had come to a standstill about two years ago when then parliament´s Public Account Committee (PAC) instructed the government to involve Nepali investors in the project. MoPIT had initiated fresh biddings in 2012 but none of the three short listed Indian Companies of the total nine companies submitted RFP even when they were provided four additional months. Ananta Acharya, chief of the project, argued that international developers hesitate to invest in the project citing unfriendly investment climate in the country. The government had attempted to implement the Rs 80 billion project under Built-Operate-Own-Transfer (BOOT) model.