Projects and Investment Need - Asian Highway 7~9 October, 2013 Dinker Sharma Nepal

Projects and Investment Need - Asian Highway
7~9 October, 2013
Dinker Sharma
Nepal
Development Activities
Government Investments
Total Length = 1765 km
AH 2
Total Length - 1027
North South Road Corridor
Commercial Corridors
Corridors yet to be taken up:
Suryabinayak-Dhulikhel
Birgunj-Pathalaiya
gS;f
Nepalgunj Kohalpur
22 km
Bridge Improvement and Maintenance Project
Bridges under the Strategic Road Networks = 102 nos
under construction
Bridges under the Local Road Networks
= 273 nos
under construction
New Bridges under survey and design
= 400 nos
;8s ljefu
Maintenance Activities
Surkhet Division
Nepalgunj Division
Dang Division
Devisthan Division
Nuwakot Division
Kathmandu Division
Lalitpur Division
Bhaktapur Division
Charikot Division
Hetauda Division
Janakpur Division
Chitwan Division
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Humla
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Bardiya
Salyan
Rolpa
Baglung
Kaski
Parbat
Banke
Pyuthan Gulmi
Syangja
Doti Division
Dang
Tanahun
Arghakhanchi
Baitadi Division
Palpa
Mahendra Nagar DivisionKapilbastu
Nawalparasi
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Dolakha
Lalitpur
Kavr e
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Ramechhap
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Sindhuli
Sarlahi
Raut ahat
Palpa Division
Shivpur Division
Butwal Division
Damouli Division
Pokhara Division
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Taplejung
Sankhuwasabha
Khotang
Bara
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Solukhumbu
Udaypur
Dhanusa
Mahott ariSiraha
Bhoj pur
Terhathum
Pancht har
Dhankuta
Saptari Sunsari
Morang
Il am
Jhapa
Jhapa Division
Ilam Division
Morang Division
Dhankuta Division
Lahan Division
Investment Needs
Asian Highway 2
Brahmadev Mandi
Widening of Bridges
along Pathlaiya Dhalkebar
Section on AH 2
Mahendra Nagar
Gadda Chawki
Kakarbhitta
AH 2
Project Title: Widening of Bridges along Dhalkebar Pathalaiya Section of AH 2.
Short Description:
Dhalkebar Pathlaiya Section of AH 2 lies on the mid region of the County. This
section is about 110 km in length. A number of bridges (67 numbers) along this
section is of single lane and has almost completed its life cycle (more than 50
years old) and is in need for replacement. The length of bridges range from
11.3m to 363.50m (total length = 4116). These bridges need to be updated to
AH 2 standard.
Proposed Financing Modality:
This Project require budgetary resources and the Government is interested to
seek support from the Donor for implementation
Project Feasibility Indicators: Feasibility need to be conducted.
Project Technical Specification: Bridges of 2 lane standard necessary.
Comments:
The proposed Project could be suitable on a Public Private Partnership basis by
raising toll along the section. However, detailed feasibility need to be carried
out. The cost of bridges of total length 4116m could be approximately US$ 500
million.
Asian Highway 42
Brahmadev Mandi
AH 42
Gadda Chawki
Kakarbhitta
Kathmandu Terai
Fast Track Road
Project Title: Pathlaiya – Nijgadh – Kathmandu (Fast Track Project)
Short Description:
The Government proposed a first expressway to a four lane standard of 76 km along Nijgadh-Kathmandu Section on
a PPP modality. The Concessionaire responsible for getting the Contract also was to build an additional two lane
road about 18 km from Pathlaiya to Nijgadh along the AH 2. This route is also likely to serve as a transit route
between the two neighboring countries China and India.
Proposed Financing Modality:
Estimated cost - Nijgadh to Kathmandu: US$ 818.66 million and
Pathlaiya to Nijgadh: US$ 24.86 million
Project Feasibility Indicators:
Economic and Financial Analyses: Based on the preliminary costs
the Economic Rate of Return (EIRR) of the four lane option is 30.92
percent. The financing plan for the project is not yet decided but,
assuming that the project would be fully funded by an
international loan (approximating a BOT operation), then the
Financial Rate of Return (FIRR), using the suggested tolls is 14.6
percent pre-tax, about 13.6 percent after normal business taxes,
and 12.9 percent if income tax is levied.
Type of Project Proposal:
PPP basis on Built - Operate – Transfer (BOT) modality.
Expected Timeframe for Implementation:
Concession period of 30 years including construction period of 5
years proposed.
9. Contracting Agency:
Request for Proposal has been solicited. Latest information as of
20 September, 2013 – No RFP has been received.
Project Technical Specification:
Four lane road of length 76 km from Nijgadh to Kathmandu. There
are seven major bridges with overall lengths over 250m, main span
lengths of up to 136 m, and heights ranging from 50 to 100m.
Tunnel of length 1.35 km. To meet Asian Highway Standard Primary Classification
Additional two lane of standard same as AH 2 along Pathlaiya
Nijgadh section which is along the AH2 highway.
Comments:
This section of road if implemented will act an as alternate to AH 42 and shorten the road length from 240 km to 120 km. It is likely to
act as a backbone for development activities as it will drastically shorten the distance from Birganj (India Border) to Kodari (China
Border). RFP had been solicited two times but there was no response from any Companies, although during short listing a number of
Companies showed interest and were short listed. The Government is now looking for support from the Donor for implementation of
this project.
Brahmadev Mandi
Improvement of
Thankot Naubise
Section – 2 lane
AH 42
Gadda Chawki
Kakarbhitta
Kathmandu Terai
Fast Track Road
Project Title: Alternate to Thankot Naubise Section – Sitapaila Dharke Road (AH 42)
Short Description: The Section between Thankot to Naubise is very congested due to heavy
traffic flowing on both sides. A need has been felt to have an alternate connecting AH 42
from Sitapaila and meeting at Dharke on AH 42. One way traffic in each direction is likely to
ease traffic congestion and reduce long hours of waiting for traffic clearance thus reducing
costs in vehicle operation.
Proposed Financing Modality: Feasibility Study is in progress from support from Kuwaiti fund
Grant TA No: 303. A Grant allocation of 2 million Kuwait Dinar (KD) that is approximately US$
875,000, has been allocated towards this study.
Project Feasibility Indicators: Previous Study by JICA in 2002 indicated that the project is
feasible. Following are indicators: EIRR: 18.1, NPV: 19.1 million US$ at discount rate of 12%,
B/C ratio: 1.5
Project Technical Specification: JICA study proposed 2 lanes (7 m width) and a tunnel length
of 0.7 km. A bridge of 50 m is also proposed at Dharke. Total Lenth of road 21.4 km. The
present study is to propose two lane standards as per existing AH 42.
Comments:
This Project is very important from the perspective that it will ease the traffic congestion
existing at the moment along the Naubise Thankot section of AH 42. Long hours of waiting
will be avoided resulting more efficiency and savings in economy. This could be a possible
PPP project.
Thank You
for
Your Attention