The Indian consortium of Infrastructure Leasing and Financial Services (IL&FS) Transportation Networks, IL&FS Engineering and Construction and Suryavir Infrastructure Construction have been in talks with the government and are likely to bag the 76-km express highway construction project.

“This is an important project for Nepal. The agreement will have a provision which will ensure that government can buy the project from Indian developer even at the time when it is in profit,” said Nidhi at the meeting of Parliamentary Development Committee on Thursday. “We are dealing cautiously while awarding the project to the Indian developer.”

Nidhi informed that the ministry is in the final stage to send the project details to the Project Facilitation Committee of the National Planning Commission (NPC) led by its vice chairman Govinda Raj Pokhrel for review and feedback. Once the NPC forwards the document to the ministry it will incorporate the recommendations made by the commission and take it to the Cabinet for endorsement.  “We are hopeful of holding the concessional agreement, which will pave way for initiating ground level works once the Cabinet gives an approval,” Nidhi said.

According to Nidhi, the Kathmandu Nijgadh Fast Track is strategically important for Nepal and that there should be no delays in initiating the project. “This road project will not just connect the country’s Capital city with Madhesh but also lure investors for proposed Second International Airport in Nijgadh,” Nidhi said.

According to the officials at the Ministry, the developer will charge Rs 1,600 per car, Rs3,100 (bus), Rs 4,600 (heavy truck) and Rs 800 (two wheelers) toll as per the agreement with the Indian consortium, which is believed to be the second most expensive toll charges in the world after Japan.

Physical Infrastructure and Transport Ministry Secretary Tulsi Prasad Sitaula, however, said that the toll seems to be costly as it will be applicable only after the project gets functional. The project will conclude in five years time from the date of construction. The toll will be applicable after that for a period of five years.

“Toll which looks pricey today might be justifiable in the next five years. People will be saving a lot while travelling via fast track,” Sitaula said.

While it takes at least 5 hours to reach Nijgadh from Kathmandu at current, the design locked by the Indian team aims at connecting these two places in just 59 minutes.