The Kathmandu Metropolitan City (KMC) on Wednesday signed a memorandum of understanding (MoU) with China Railway Construction Corporation (CRCC) to conduct the Detail Project Report (DPR) for the construction of proposed monorail along the 27-km Ring Road.

KMC Mayor Bidya Sundar Shakya and CRCC’s Director Oversees Business Management Department Zhao Guangbing signed the MoU amid a function in Kathmandu. Lalitpur Metropolitan City (LMC) Mayor Chiri Babu Maharjan, KMC’s deputy Mayor Hari Prabha Khadgi, LMC’s Deputy Mayor Gita Satyal, among other government officials, and representatives from CRCC were present during the signing progarmme.

The Chinese state-owned construction company on September 13 had submitted a feasibility study report of the project and it had announced to provide the report within six months.

“They had asked for six months’ time but completed the study report within three months and eight days. This is a positive sign,” said Shakya.

The proposed DPR will be completed within a year and the project will be completed within three years after submitting the DPR, according to the preliminary report of CRCC.

In its preliminary study report, the CRCC had estimated a budget of Rs116 billion for the construction of the project. “Now they have assured to reduce the estimated amount. I request the federal government and provincial government to work together to materialise this dream project,” said Shakya.

Addressing the MoU signing programme, Director Guangbing said the corporation will do its best to make the project a success. “It is the beginning of a long-term project in Nepal and first of its kind. We will do our best to make it successful,” said Gaungbing.  

Based on the agreement, the company will bear all the expenses for the DPR.  

Mayor Shaky said the contract for the railway project would be awarded through open competition under the build, own and operate (Boot) model. The eligible company will have to buy the DPR from the CRCC.