Director General of the Department of Railway (DoR) Ram Kumar Lamsal and a representative from CEC signed the pact, which makes it mandatory for CEC to complete the study for both the projects within a year. The agreement was delayed for some time as the Ministry of Finance (MoF) was taking time to assure payment of the consultancy fee in US dollars. [break]
"The agreement was signed immediately after the MoF assured to pay the consultancy fee to the company in US dollars," Lamsal told Republica.
Under the agreement, the firm will complete DPR of 136-km Birgunj-Bardibas section of Mechi-Mahakali electrical railway and Kathmandu Metro, a mass rapid transport (underground and elevated) rail system in the capital. "In addition to the study reports, the company has to suggest necessary provisions for the Railway Act to be formulated in Nepal," said Lamsal.
Around Rs 400 million (about $5 million) will be paid to the firm for completing the DPR for the Bardibas-Birgunj electric railway system ($4 million) and the feasibility study for the Kathmandu Metro ($1 million). According to the government estimates, around 75 km of underground and elevated railway system will be put in place under the proposed Kathmandu Metro, connecting major points inside the core areas of the Kathmandu valley.
Three global companies CEC, Scott Wilson of India, Systra F.A of France had submitted technical and financial proposals for DPR of Bardibas-Birgunj section of the East-West Railway. Similarly, CEC, RITES Limited (India), Systra F.A of France and TEAM Consulting Engineering and Management of Thailand had submitted their financial and technical proposals for the feasibility study of the Kathamdnu Metro.
Meanwhile, MoF has given its consent to a proposal from the Ministry of Physical Planning and Works (MoPPW) seeking to conduct a DPR of the 256-km Simara-Butwal section of the East-West Electrical Railway. MoPPW has already called for expression of interest (EoI) from consulting firms for the project.
Likewise, MoPPW has also proposed a DPR for the 406-km Butwal-Mahendranagar section of the electric rail line. The costs for the DPRs for the Simara-Butwal section and Butwal-Mahendranagar section are estimated at Rs 500 million and Rs 900 million respectively.
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