In what might be called a serious blow to the government’s plan to develop the 76-kilometer expressway, all three shortlisted firms failed to submit their Request for Proposal (RFP) document to the government within the stipulated deadline. [break]
The government had given the firms until last week to submit their RFP documents.
Highly placed officials at the Ministry of Physical Infrastructure and Transport (MoPIT) say the government is searching for alternatives to continue the national priority project.
“Year, we have started looking for the appropriate alternative to implement the project,” a high-level source at MoPIT told Republica. The source said the government is likely to give continuity to implementation of the mega project by mobilizing internal resources.
“However, we will have to build two-way highway instead of the planned four-way highway. The ministry will make efforts to secure Rs 5 billion a year to develop the project,” the source added.
The government has allocated Rs 35.27 billion for infrastructure development for this fiscal year. The budget for this fiscal year envisages making necessary arrangement to initiate the construction of the fast track road under Build, Operate, Own and Transfer (BOOT) model.
The government is also mulling over integrating the fast track road with the Nijgadh international airport project in a single package by adopting BOOT model for project development.
“We also have the option of allowing the developer of fast track to develop the international airport project,” the source added.
Similarly, discussion is also underway to join hands with the developer of the proposed Kathmandu Hetauda Tunnel Highway to have a common alignment for both the projects.
“The government can share the cost to develop the common alignment (about 20 kilometers) with the developer of the tunnel highway. It can mobilize internal resources to develop the remaining 56-kilometer segment,” the source added.
Tulasi Prasad Sitaula, secretary of MoPIT, also said discussions are underway to find out alternatives for development of the fast-track road even if foreign developers are not interested in the project.
“If foreigners are reluctant to put their money in the project, we will have no option but to mobilize internal resources to develop the project,” said Sitaula.
Sitauala also said the MoPIT will call a meeting of steering meeting for the implementation of project, which is led by the Minister for Physical Infrastructure and Transport, this week to find possible ways to deal with the unfolding developments.
The government had shortlisted three firms -- Larsen & Toubro (L&T), Infrastructure Leasing & Financial Services (IL&FS) and Reliance Infrastructure – to submit RFP documents to develop the project. It had given the firms an extended deadline until September 21 to submit RFP documents. The government had given the firms addition four months to submit technical and financial proposal after they failed to submit the RFP documents within the earlier deadline.
The government had selected the firms in December, 2012 after analyzing Letter of Interest (LoI) document of some nine companies.
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