Kathmandu, Sept.
23
Investment Board
of Nepal (IBN) has shortlisted a Swiss Company Zurich Airport International AG to
develop the International Airport in Nijgadh of Bara district in Public Private
Partnership (PPP) model.
The IBN’s 40th
meeting chaired by Prime Minister KP Sharma Oli on Monday shortlisted Zurich
among the seven companies that had submitted the letter of interest to develop
the airport that would be one of the largest in the region.
“Seven companies
from Nepal, China, India and France had shown interest in developing the infrastructure
project but Ziroch met all the technical, financial and experience criteria set
by the government,” said Maha Prasad Adhikari, Chief Executive Officer of the
IBN.
The project was
showcased during the Nepal Investment Summit 2019, organised in March this
year.
However, the
decision made by IBN on Monday does not award the project to the company as the
former has only shortlisted it and the latter need to submit the detail
proposal regarding the development of the facility.
Adhikari said
that Zurich Airport International would have 100 days time to submit the
detailed proposal for the project development, and a technical committee would
study the proposal. Approval from the technical committee will give a ‘go
ahead’ to the company.
The Nijgadh
International Airport is the largest infrastructure project in the country so
far. According to the primary estimates, the government has put the cost of the
airport at Rs. 693 billion. But the IBN said that the cost may vary according
to the phases of development and required facilities.
A Korean
consulting firm Landmark Worldwide (LMW) had conducted a detailed feasibility
study in 2010 and proposed to build the airport in BOOT (Built Own Operate
Transfer) model. However, the government later decided to develop it in the PPP
model.
Qatar had also
shown interest in constructing the airport. During the visit of President Bidya
Devi Bhandari, it had proposed to develop it through the government to
government contract.
Meanwhile, the project is pushed into controversy due to
the need to cut down a large number of trees which had provoked ire in the part
of the environment activists.
The IBN had also
shortlisted Indian firm SJVN Limited, Nepali Hydropower Investment and
Development Company Limited’s joint-venture with Power Construction Corporation
of China Ltd, and Nepali Green Resources Pvt. Ltd.’s joint-venture with
Electric Power Development Company Japan for the development of the 679 MW
Lower Arun Hydroelectricity Project.
SJVN is
developing 900 MW Arun III which is export-oriented peaking Run-of-River
project in Shankhuwasabha district of State 1. It is developing the 1.4 billion
US Dollars project in BOOT model and the facility will come to Nepal government
after 25 years.
Likewise, the
meeting decided to form a committee led by the Finance Minister to develop a
transport management master plan for the Kathmandu Valley by integrating all
the previous studies conducted in the area. It also shortlisted China
Communication Construction Company for the construction of Kathmandu Outer Ring
Road Project in PPP model.
PM Oli directed
the concerned ministry and agencies to submit an integrated and detailed plan
for the transport management in the valley.
“The ministries
should create greater coordination and cooperation in facilitating the
investors. All projects must be completed on time,” he said.
Published in The Rising Nepal daily on 24 September 2019.
(The print version of the story mistakes the Swiss company as 'German'. Error is regretted.)
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