The Kathmandu Metropolitan City on Wednesday signed a Memorandum of Understanding (MoU) with China Railway 25 Bureau Group Ltd of China Railway Construction Corporation (CRCC) to conduct the detail project report of the 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 at an event in Kathmandu.

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,” said Shakya.

The study shows project will have 21 stations in three different sections; Koteshwor-Kalanki, Kalanki -Maharajgung and Maharajgung-Koteshwor.

Speaking at the MoU signing event, Director Guangbing said, “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.  

Lalitpur Metropolitan City (LMC) Mayor Chiri Babu Maharjan, KMC’s deputy Mayor Hari Prabha Khadgi, LMC’s Deputy Mayor Gita Satyal, KMC’s Chief Executive

Officer Yadav Prasad Koirala among other government officials, and representatives from CRCC were present at the event.

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

In its feasibility study, the CRCC had found difficulty in road expansion work from Gaushala to Chabahil road section, and the CRCC had requested the government to help in solving the problem in the third section of the road.

Mayor Shakya 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.