The board of directors of the Investment Board Nepal (IBN) on Monday directed its management to conduct detailed feasibility study (DFS) of a metro railway project in the Kathmandu Valley and prepare a detailed project report (DPR) based on findings.

The decision was made based on a report submitted by a committee comprising a member of the National Planning Commission, the apex body that frames country’s development plans and policies. The committee formed on January 8 was told to conduct a study on the modality of operating metro rail service in the Valley.

Based on the recommendation made by the committee, the IBN’s board meeting chaired by Prime Minister and IBN Chairman Sher Bahadur Deuba directed the IBN management to conduct DFS and prepare DPR of Route Number 2 of the Kathmandu Valley metro railway project. The 54-km Route 2 stretches from Nagdhunga to Dhulikhel via Kalanki and Koteshwor. The route is being built under Build-Own-Operate-Transfer (Boot) model. The DPR will spell out cost required to build the project and time required to complete the project.

Monday’s meeting also directed IBN management and other concerned government entities to implement the recommendations made by the committee regarding Route Number 1 of the metro railway project. Route 1 extends from Budhanilkantha to Satdobato.

In 2012, Korean consulting firms had jointly submitted an inception report on the feasibility of building a metro railway project in the Valley to the Department of Railways. The report had proposed that five metro lines be built in the Valley-four inside Ring Road and one around the Ring Road. The report had put the cost of building the 77km project at around Rs330 billion. The report was jointly prepared by a consortium of Korean and Nepali firms.

Later, the IBN had conducted a study on the viability of the project proposed by the consortium. Out of five proposed metro lines, two were deemed suitable by the IBN.

The railway project is expected to resolve perennial problem of traffic congestion and pollution in the Kathmandu Valley.