Deloitte India suggests four potential PPP projects

- POST REPORT, Kathmandu

Nov 6, 2014-Deloitte India has recommended four potential projects that can developed under the public-private partnership (PPP) model. The projects are a paid parking station at the vacant space in Lainchaur, Kathmandu; a vehicle service centre in Butwal; a cable car project in Sworgadwari, Pyuthan; and a polytechnic institute in Pokhara.

Deloitte was appointed under the Capital Markets and Infrastructure Capacity Support Project with the funding from the Asian Development Bank. It was assigned to study and prepare PPP framework, besides suggesting measures to create an enabling environment for PPP in Nepal and recommending how to develop an effective bond market.

Out of the five projects recommended, only one will be executed. “However, the project won’t be implemented before the new PPP policy framework is endorsed,” said Sishir Dhungana, joint secretary at the Finance Ministry.

In its recommendation for policy framework, Deloitte has suggested setting up an office dealing with PPP issues at National Planning Commission (NPC). It has also submitted a new draft of the PPP Act to the government.

The PPP model has not been much successful in Nepal. In its white paper on PPP, NPC has said the decade-long experience in PPP shows limited success. The Build, Own, Operate and Transfer (BOOT) Act guides the PPP model in infrastructure projects. However, officials said the implementation of Act has not been satisfactory. Tulasi Prasad Sitaula, secretary at the Ministry of Physical Infrastructure and Transport, said lengthy procedure of the existing Act, which also seeks to control investors, was the main reason for the poor progress of PPP projects.

Kathmandu Metropolitan City (KMC) pioneered the private sector’s involvement in the municipal sector with the Private Sector Participation (PSP) programme in 1999-2000 for institutional strengthening of KMC.

Several projects were identified for implementation such as Gongabu Bus Park, foot-bridges, operation and management of Dharahara and its surroundings.

The Ministry of Physical Infrastructure and Transport is undertaking four big projects—Kathmandu-Nijgadh Fast Track, Kathmandu-Hetuada Tunnel Road, Pokhara Cable Car and Phulchowki Cable Car.

Published: 07-11-2014 09:34

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