Print Edition - 2014-12-17 | MONEY
2 Indian cos submit proposals
- Kathmandu-Tarai Fast Track Project
Dec 16, 2014-
New Delhi-based Oriental Structure Engineers and a consortium of IL & FS Transportation Network, IL & FS Engineering & Construction and Suryavir Infrastructure Construction based in Mumbai submitted their proposal.
“But another Mumbai-based company Reliance Infrastructure Limited pulled out from the project,” said Tulasi Prasad Sitaula, secretary at the Ministry of Physical Infrastructure and Transport.
According to him, the proposals were opened on Tuesday at the presence of the government officials and the concerned companies. He said the evaluation of the proposals would be started in 15 days.
“We will go through the proposals in detail and select a better one. Negotiation will be started with the selected firm before awarding a contract,” said Sitaula.
The government has guaranteed a minimum vehicle movement along the Fast Track, assuring compensation if that does not happen. It has also assured a 20 percent stake in the project to attract the potential investors in this national pride project this time.
The government had to abort the previous bid two years ago after none of the selected firms for the RFP submitted proposal. The government at the time had sought financing from the donors to develop the project by itself.
“If it does not materialise again, the government is most likely to construct the project by itself,” said Sitaula. The government has already explored all options to develop the project. According to a preliminary feasibility study, the project is estimated to cost $844 million, including 20 percent financing cost.
Published: 17-12-2014 09:35