However, the Ministry of Physical Planning and Works (MoPPW), which is handling the project, refused to call fresh expressions of interest (EoI), saying that this could sent a negative message to potential international investors. [break]
“Reversing the ongoing process will have a negative impact. Besides, the existing pre-qualification arrangements allow ample scope for local investors to participate in the project, as it is clearly stated that priority will be given to bidders having Nepali partners,” said Bijay Kumar Gachchhadar, Deputy Prime Minister and Minister for Physical Planning and Works.
The government had pushed construction of the four-lane highway stretching 76 kilometers as a national priority project in 2009. Since then, it has assigned the Nepal Army to open up the track and also sought EoI from aspirant investors -- both Nepali and international -- to construct the expressway through a build-own-operate-and-transfer (BOOT) approach.
In its EoI call, MoPPW has set the condition that an applicant company should be worth US$ 150 million and possess experience of implementing project worth over US$ 900 million.
"Nepali companies are competent also, but none of them can comply with this condition because we have had no project of such a scale implemented by the private sector in the past," said Kush Kumar Joshi, president of the Federation of Nepalese Chambers of Commerce and Industry, who sought revision of the pre-qualifications criteria.
Acting on similar concerns expressed by domestic investors, PAC in April, 2009 directed the ministry to take steps to accomodate local investors, so that they could also bid for construction of the multi-billion rupee project.
The private sector had argued that the qualifications sought by MoPPW were too rigid and impeded Nepali entrepreneurs from participating in the bid.
Ghachhadar, however, assured lawmakers that the ministry would give extra consideration to international bidders having Nepali partners during Request For Proposal (RFP) evaluations.
“We are in favor of involving Nepali investors in mega projects to send a positive message to the private sector. So, we will protect Nepali investors´ concerns while screening the RFP by prioritizing foreign companies having Nepali partners,” said Gachchhadar.
The parliamentary body had summoned Gachchhadar, Defense Secretary Nabin Kumar Ghimire, Secretary at MoPPW Purna Kadariya and Brigadier General Naresh Basnet to seek clarifications on different issues related to implementation of the much-touted north-south expressway.
Lawmakers including Deep Kumar Upadhya, Hridesh Tripathi, Kamala Panta and Rabindra Adhikari demanded with MoPPW to revoke the ongoing investor selection process and initiate it afresh so that a maximum of Nepali investors could take part in bidding.
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