Nepal, S Korea to sign MoU for railway service

KATHMANDU, Oct 2: The government has decided to sign a Memorandum of Understanding (MoU) with the government of South Korea for the development of railway service in Nepal.



The cabinet´s Financial and Infrastructure Committee recently approved the draft of MoU forwarded by the Ministry of Physical Infrastructure and Transport (MoPIT), paving the way for the ministry to sign the agreement with South Korea. [break]



MoPIT Secretary Tulasi Prasad Sitaula described the agreement as ´an umbrella´ that can open new avenues of mutual cooperation in the sector.

According to the draft MoU, a committee formed by MoPIT will hold discussion with the officials of the South Korean government on issues of mutual cooperation and devise programs for the development of railway service in Nepal. The draft envisages holding bilateral meeting in alternative locations of each country.



The joint committee of Nepal and South Korea will devise programs and propose to their respective governments for implementation, Sitaula said. “It will also look for resources to implement the program,” he added.



MoPIT is soon inviting the Korean authorities to sign the MoU. The MoU will remain valid for three years and can be extended for additional two years if both parties are willing.

Though the agreement does not include any specific program, officials of Department of Railways (DoR) described the proposal as a goodwill gesture from the South Korean government.



However, officials say the Korean assistance is likely to come in the proposed East-West Railway project which has not seen much progress due to fund crunch.

Korea Railway Network Authority, the Korean government undertaking, is already involved in Nepal as a consultant.

It is learnt that the Korean government has showed interest to develop railway service and transfer Korean technology to Nepal as well as train Nepali manpower in the railway technology.



A joint venture company, which includes the Korea Railway Network Authority, recently completed Detailed Project Report (DPR) of Simara-Bardiwas section of the East-West Railway project. The venture has also won the contract to prepare DPR of Simara- Butwal stretch of the East-West Railway.

The government plans to start laying down tracks on Simara-Bardibas stretch from this fiscal year. The East-West Railway is estimated to cost Rs 800 billion, according to a feasibility study.

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