The overall procedure to call tenders and select a firm to construct the proposed 76-km superhighway has remained derailed after PAC instructed MoPPW on March 1 and June 3 to ensure the involvement of any Nepali investors, irrespective of their past experience. [break]
PAC had pushed for such arrangement mainly after the private sector sought relaxations in order to be able to participate in the project.
However, MoPPW said it cannot implement the PAC directives, saying they go against the Private Financing in Build and Operation of Infrastructure Act 2006 and its regulations.
"Our Act and Regulations clearly say only the companies having experience of implementing projects under Built Operate and Transfer (BOT) system with Public Private Partnership (PPP) model can vie for the construction works of the project," said a senior MoPPW official.
As a result, it has neither followed the PAC instruction nor taken initiatives to implement the project as per the Act.
Given the situation, PCC, which is led by the Vice-chairman of National Planning Commission (NPC), had about one-and-a-half months back instructed the MoPPW to coordinate a dialogue with PAC to sort out the problem.
For the purpose, it had asked the ministry to form a team comprising officials from MoPPW, Ministry of Law and Justice and NPC and hold talks with PAC to clear the confusion created by its instructions. But MoPPW has so far dragged its feet in clearing the confusion, leaving the fate of the major national priority project in uncertainty.
Sources at MoPPW said the ministry did not arrange the meeting with PAC mainly as the ministry itself was confused over what would be the modality of implementing the express highway.
"The delay in clearing the modality of its development has further pushed the project into uncertainty," the source told Republica.
Nonetheless, he said MoPPW is preparing to resolve the confusion and will soon hold a meeting with PAC to conclude whether to follow the PAC directives by amending the law or ignore them in order to abide by the existing laws.
The parliamentary committee in its March 1 and June 3 decision had asked MoPPW to open at least 10 percent participation in the project for any Nepali investors (whether they possess past experience of developing project under BOT under PPP model or not).
Officials said Minister for Physical Planning and Works Hridayesh Tripathi, who was one of the PAC members to issue the instructions then, is holding consultations for opening up all the options of PPP including BOT to implement the multi-billion rupee project.
However, some senior officials at the ministry are adamant that the project should be built under the BOT model.
MoPPW had cancelled the process of selecting bidders on March 15, following direction from PAC on March 1 that sought participation of Nepali investors in the bidding process irrespective of their experience.
Seven global companies had participated in the bidding and submitted their Expression of Interest (EOI) to invest in the multi-billion-rupee project.
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