Two multilateral donor agencies have asked the government to come up with clear vision about the risk-sharing factors before making any move to award tenders for construction of the Kathmandu-Terai Fast Track Road.

The World Bank (WB) and the Asian Development Bank (ADB) have urged the government to make clear the risk-sharing factors related to public-private partnership (PPP) projects at first in order to ward off any setback the project may face during its implementation.

The two donor agencies have said that if such factors were not made clear in advance, the project might face serious trouble once it comes into implementation.

The WB and the ADB want the government to chalk out clear-cut clauses to deal with various risks like, for example, the loss the project might incur due to the company's failure to make arrangement for the necessary budget.

After the pre-qualification process, the government has selected two companies -- Landmark Korea and Reliance India -- for the project to be constructed under the Build Own Operate and Transfer (BOOT) model. The proposed four-lane, 80-kilometer long road will connect the capital city with Nijgadh in Bara district.

The engineering module of the road had been approved by the cabinet in October 2007 and the government in April 2008 decided to materialise the project under the BOOT model.

Nepal Army personnel would also be mobilised to lay out the track for the road. nepalnews.com

Write comment

Name: Email:   Title:   Please input the anti-spam code that you can read in the image.

View Comments	Search
As postings are shown online immediately, please be warned of offensive comments

3.26 Copyright (C) 2008 Compojoom.com / Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."