KATHMANDU, Sept 21: The parliamentary Development Committee has directed the government to decide at the earliest whether it would buy Detailed Project Report (DPR) of Kathmandu-Tarai Expressway prepared by an Indian consortium led by Infrastructure Leasing and Financial Services (IL&FS).

The meeting of the parliamentary panel held on Wednesday also instructed the government, including the Nepal Army (NA), which has been entrusted with the responsibility to build the 76-kilometer expressway, to reach to a logical conclusion regarding the purchase of the DPR only after making real evaluation of the necessity of such document.

The Development Committee has also taken exception to the delay of the NA in deciding whether to purchase the DPR prepared by the Indian firm or prepare a new one to build the national pride project. 

It has already been four months since the government awarded the project to the NA.
The committee has also instructed the government to buy the DPR of the national pride project from Indian firm at a minimum price only if the report is deemed essential to build the project. “Otherwise, the government should find another alternative,” the committee's direction states.

Similarly, the panel has also urged the government to select consultancy service and other service providers in a transparent and legal way. 

The development committee's diktat to the government comes in the wake of recent news reports about preparation of the NA to buy the DPR from the Indian firm at an escalated price. 

The NA, however, has maintained that no such decision has been taken so far. The army has said that a committee comprising of experts has been formed to make needful study in regards to acquiring the DPR prepared by the Indian firm. 

According to the parliamentary committee, one of the factors impeding the progress of national pride projects is the problem of land acquisition and distribution of compensation to land owners. 

“Since land acquisition for nearly 6 kilometers stretch of the expressway is still to be done, the committee directs the Ministry of Physical Infrastructure and Transportation, Ministry of Finance, National Planning Commission and Nepal Army to immediately resolve such problem and evaluate the actual cost needed for the project and spend the allocated budget, and make sure that the project does not face budget crunch,” reads the decision taken by the committee. 

The government has allocated Rs 10.13 billion for the expressway project in Fiscal Year 2017/18. 

The Indian consortium had prepared the DPR in 2015. Earlier in January, it quoted the price of DPR at Rs 600 million.

The government awarded the expressway, which is estimated to cost Rs 100 billion, to the army in May.

A study team formed by the government, in February, concluded that the government should purchase the DPR prepared by the Indian consortium, to save time, while pointing out that the DPR is not perfect and that price should be negotiated.

 
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