Two firms shortlisted for Seti River Gorge, Davi's Fall and Sarangkot projects
POKHARA, Jan 15: Pokhara Metropolitan City (PMC) has unveiled plan to build three tourism infrastructure projects under Public Private Partnership (PPP) model.
The metropolitan city has said that it will execute Seti River Gorge Adventurous Tourism Infrastructure Development Project, Patale Chango (Davi's Fall) Glass Bridge and Other Infrastructure Development Project, and Sarangkot Tourism Infrastructure Development Project under PPP model.
The estimated cost of the projects is around Rs 2 billion.
Officials of the metropolitan city are hopeful that the new projects will help to increase tourist numbers in the lake city. An official of PMC told Republica that new projects are necessary to increase spending and length of stay of domestic and international tourists.
The estimated cost of Seti River Gorge Adventurous Tourism Infrastructure Development Project is Rs 1.58 billion, while Patale Chango (Davi's Fall) Glass Bridge and Other Infrastructure Development Project and Sarangkot Tourism Infrastructure Development Project are estimated to cost Rs 491 million and Rs 147 million, respectively, according to Ananta Prasad Koirala, PMC's facilitator for PPP Program.
According to Koirala, about half a dozen private companies have submitted their letter of interest (LoI) to invest in the projects responding to the PMC's call. "We have shortlisted Canyon Pvt Ltd for Seti River and Davi's Fall projects, and Annapurna Cable Car Company for the Sarangkot project," he added.
Annapurna Cable Car Company is currently building a cable car line from Sedibagar to Sarangkot.
"PMC will provide site for the project, while the private companies will make investment. After operating the projects for certain years, the private parties will have to handover the project to the PMC," added Koirala.
According to Koirala, Canyon Pvt Ltd has proposed contract period of 40 years, while Annapurna Cable Car Company has proposed to operate the projects for 30 years. "But we have offered them contract period of 35 and 32 years, respectively excluding construction period of three years for all three projects," he added.
Though the private companies have been shortlisted, the PMC has not yet signed contract with them for detailed project report (DPR). But the executive council meeting of PMC has already permitted PMC to move ahead with the DPR process. "The DPRs will be prepared with active involvement of PMC," Koirala added.
Gangalal Subedi, officiating chief administrative officer of PMC said, investors can operate the projects for a maximum of 40 years as per the existing laws. "They will have to handover the project to the metropolitan city thereafter," he said. "The private parties will also have to pay certain percentage of their earnings as royalty. But we have not finalized the modality yet," Subedi added.