Print Edition - 2015-01-04 | MONEY
Kathmandu-Tarai fast track project
- Govt okays technical proposals of 2 firms
Jan 3, 2015-
The government had invited the Request for Proposals (RFP) on November 15, 2014, and only these two Indian firms had applied. Mumbai-based Reliance Infrastructure Limited had also been shortlisted in the Expression of Interest (EoI) phase, but the company later withdrew.
Tulasi Prasad Sitauala, secretary at the Ministry of Physical Infrastructure and Transport said both the firms met the criteria, including experience. “We will chose one among the two after studying the financial proposals,” said Sitauala.
This is the second time the government opened bid for the project. It had to abort the previous bid two years ago after none of the selected firms submitted their RFP, seeing scant chances of being able to make much money from it.
So the government sweetened the deal by guaranteeing a minimum vehicle movement and assuring compensation. It has also assured a 20 percent stake in this national pride project.
The government has put condition that if the vehicular movement is greater than the fixed level, the developer will have to share the income on a 50:50 basis for the additional traffic.
In case the traffic is less than expected, the developer will be compensated based on the toll fee determined. The government has also kept open the option of developing project on its own if a developer could not be selected this time too.
After observing the project on Saturday, Finance Minister Ram Sharan Mahat said the government is committed to develop the project on its own if the second bid fails. According to a preliminary feasibility study, the project is estimated to cost $844 million, including 20 percent financing cost.
Published: 04-01-2015 09:49