The process of getting Indian approval to the detailed project report (DPR) of various road projects under the third Indian line of credit (LoC-III) has moved forward since the first meeting of the oversight mechanism on November 29 in Kathmandu.

During the meeting the joint mechanism, senior officials of the two countries had agreed to clear bottlenecks in India-funded projects in Nepal and speed up works by fixing deadlines for their completion.

Following widespread criticism that the India-funded projects failed to make the expected progress, the joint mechanism was formed during Prime Minister Pushpa Kamal Dahal’s recent visit to India. Foreign Secretary Shankar Das Bairagi and Indian Ambassador to Nepal Ranjit Rae had led the team of respective countries during the last month’s meeting.

Dhan Bahadur Tamang, secretary at the Ministry of Physical Infrastructure and Transport (MoPIT), noted a marked progress on the projects funded by the southern neighbour lately. “There have been joint inspections of development projects under Indian Line of Credit (LoC),” he said.

The Indian side sent in its opinion on DPR of the road projects which are planned to be upgraded with the LoC-III, according to MoPIT officials.

“Nepal has already responded to the Indian side with a feedback. We are now awaiting an Indian approval to the DPR,” said Bed Kantha Yogol, coordinator of the Road Improvement Project (RIP) under the Department of Roads (DoR) that deals with the India-funded road projects.

According to him, the Indian side has raised concerns over thickness of road surface and measures adopted to avoid road accidents on those roads.

“In the feedback, we have insisted that the thickness has been maintained as per the traffic volume on those roads,” Yogol said. As the task of exchanging opinions and feedback with the Indian side has already been completed, Yogol expects the Indian side would approve the DPR within the next few weeks, paving the way for the tender process.

The road projects will get $330 million under the LoC-III announced during Indian Prime Minister Narendra Modi’s visit to Nepal in August 2014. A dozen road projects in the Hills and the Tarai will be upgraded and a motorable bridge will be built over the Mahakali river under the deal.

Out of the total $1 billion line of credit announced, the two countries had signed an agreement for only $550 million during PM Dahal’s recent India visit as Nepal could not identify the projects to invest the Indian aid.

“Beside progress in LoC-III, the number of joint inspections of the road projects under the LoC-II has also increase,” said Yogol, adding that the Indian Embassy officials have already visited the road projects, including Balkhu-Dakshinkali, Bhaktapur-Nagarkot, Balaju-Trishuli and Chhahare-Bidur, which are being upgraded with LoC-II. 

DoR officials have also noted a progress on the Hulaki Roads Project which is being built with the Indian grant. India has pledged IRs5 billion (Rs8 billion) for the first phase to upgrade Hulaki roads which touch Nepal-India borders.

Balram Misra, chief of the Hulaki Roads Project, said they were in the process of inviting tenders. “Things are moving smoothly at the moment,” said Misra, adding that Indian consultant for the project—National Highways and Infrastructure Development Corporation Ltd (NHIDCL)—has also been actively supervising the works.

Progress in most of the Hulaki roads had been disappointing in the recent years as the contractors hired by India abandoned works. Then the two countries signed a new agreement in February with a provision that allows Nepal to hire contractors with India retaining the right to appoint the consultant.

In September, the two countries signed an agreement to hire the NHIDCL as a consultant for the road projects. A little more than 600km, which constitutes 33 percent of the 1,793-km Hulaki Roads Project, has been upgraded since 2010.