The proposal tabled by Minister for Physical Infrastructure and Transport Management Bimalendra Nidhi was however discussed for about an hour at Thursday's cabinet, said a minister requesting anonymity. The cabinet decided to defer making any decision on the proposal saying further study into the proposal is necessary. Ministers from the CPN-UML including Home Minister Bamdev Gautam had opposed the proposal saying he and his party want to make sure whether the recommendations made by a technical committee led by vice-chairman of National Planning Commission Govind Raj Pokhrel have been incorporated in the proposal or not.
The source informed that the proposal will be tabled again in the cabinet within a few days.
Pokhrel's committee had submitted its report on the proposal to the prime minister on Sunday. Sources informed that Pokhrel has suggested that the prospective contractor of the project, which has been demanding a minimum revenue guarantee (MRG) of US$ 150 million per year, should provide breakdown of the sum. A consortium of Indian developers led by IL & FS had a few months ago submitted the detailed project report of the project to the Ministry of Physical Infrastructure and Transport Management.
A report prepared on Thursday by a subcommittee under Finance Committee of the parliament has said the project's estimated cost of US$ 1.12 billion is unrealistic and the MRG mentioned in the proposal is unacceptable. Also, an alleged plan to spend US$ 750 million in the project through Indian loan has also drawn controversy.
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