"We have recently released a notice about the complete scrapping of the bidding process in which three companies had submitted their Expression of Interest (EoI)," said Tulsi Prasad Sitaula, joint-secretary at the Ministry of Physical Planning and Works (MoPPW), the implementing ministry for the project. [break]
MoPPW is preparing to bring this issue to the Project Implementation Committee (PIC), which is headed by the vice-chairman of the National Planning Commission, the apex policy making body of the government.
"We will seek directions from PIC on what would be the status of the companies that have already registered their EoI for the project," said Sitaula.
In a crucial directive to MoPPW, the parliamentary Public Accounts Committee (PAC) had instructed the government to ensure at least 10 percent participation of Nepalis and not to stipulate any prequalifications for them for undertaking construction of the highway, which is estimated to cost around Rs 80 billion.
However, officials at MoPPW said implementation of the PAC instruction would be in violation of the Private Financing in Infrastructure Development and Operation Act, which makes it mandatory for all bidders to have experience in infrastructure construction. The Public Procurement Act also forbids discrimination among investment aspirants.
Amid low participation in the bidding process and pressure from PAC members, MoPPW had extended the deadline for submission of EoI, which expires on March 29.
Three companies-- Gabon India, Land Mark Worldwide of South Korea and Reliance Infrastructure of India -- had applied to invest in the mega project, which is going to be run under the build-operate-own and transfer (BOOT) scheme.
The private sector has been complaining that rigid terms and conditions for EoI for investing in the 77-km super highway are discouraging domestic investors.
The government has allocated Rs 680 million in the current fiscal year for track opening and land acquisition for the project which is among national priority projects. The Nepal Army has been undertaking the task of opening a track for the highway.
If implemented, the highway will significantly reduce travel time from Kathmandu to the Tarai.
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