The Hindu Business Line : Gammon, Reliance Infra show interest in Nepal highway

KATHMANDU: Two major Indian companies have shown their interest in investing in the $1 billion fast-track highway project linking Nepalese capital Kathmandu with the country's southern belt, in response to the call by the government of Nepal.

Gammon India Ltd and Reliance Infrastructure, both Indian companies and Landmark Worldwide Company of Nepal have submitted an Expression of Interest (EOI) in the Kathmandu-Terai Fast-Track Highway project that will have shortest road link between Kathman du and India reducing the road distance by around 50 per cent, according to the Ministry of Physical Planning and Works.

The 77 km road will connect Khokana of Kathmandu to Nijgadh in Bara district, just 45 km north from Raxaul in India, according to the Joint Secretary at the ministry, Mr Kamal Raj Pandey.

The ministry has called for individuals and firms to submit EOIs for the execution of the Kathmandu-Tarai Fast-Track Road on the Build, Operate and Transfer (BOT) model under Private Financing in Infrastructure Development and Operation Act, Mr Pandey sa id.

The detailed feasibility study of the proposed fast track road that also includes 1.3 km tunnel in the hilly region was carried out with the technical assistance of Asian Development Bank.

After evaluating the project the construction will probably start in early 2009 and it will be completed within three years time, he said.

At present the road distance from Kathmandu to Raxaul is around 268 km and with the completion of this project it will be reduced to just 122 km.

“We will ask the companies to present Requests for Proposal (RFP) before selecting one of them for awarding the investment opportunity once the evaluation process completes,” Mr Pandey said. - PTI

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