What Modi wants from Nepal

What Modi wants from Nepal

By Hetauda   9:05 AM   No comments:

This is the third visit of modi of visiting the neighbouring country in 4 years. This is the clear sign that Nepal and India want to hold their relation eatch-other.  This is the first high-level visit from India since the formation of New strong leftist government led by Neplease Prime Minister Oli, Baam alience in Nepal this year.  This visit aimed at healing old wounds while building trust each-other. 

Oli was the leaders who played the major role in drafting the constitution of Nepal 2015, which could not get India's endorsement, which results bffical blockade in Nepal. PM Oli alone fight during the offical blockade did by India and Neplase supported him for this job well.

Indian PM Narendra Modi first Visit the birth place of Sita, Janakpur. He there launched the Ramayan circuit along with Neplase PM oli to promote tourism both India and Nepal. They started the bus survice to go Janakpur to Ayodhya while tauching nearly fifteen destination including Nandigram, Shringverpur and Chitrakoot.

Both PM, Modi and Oli jointy inaugurate the project  of the largest hydropower project   900 MW Aurun III, which will be completed within 5 years. This project  cost nearly Rs. 6,00,00,000. Through this project India also get direct benifit through the supply of the electricity generated by the project.

Modi also assure for another project for the connectivity and infrastructure. That is Raxaul(Bihar) to Kathmandu Rail link which was announced during Oli's India Visit in recent year. This project link Nepal to India with railway system.according to the source, the survey of this project is supposed to completed by the end of this year.

Both PM discuss on boosting waterways transport too. according to the source, the transhipment point is identified as Kalughat, Bihar. Nepal is landlocked country, if it has seperate river transport system, it will get route the way to the sea which will be benifical for the movement of cagro.

The main agenda of Modi's visit is to fine talk about an agricultral partnership. In this agenda, India is going to share experience with organic farming, new initiatives of soil health cards etc.

Power cooperation is another area of discussion. Indian Pm insist nepal to complete its commitments with regards to land accqustion, forest clearances.

Another ambitious Pancheshwar multipurpose dam project is also in the list.

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Kanti Lokpath Road Project

Kanti Lokpath Road Project

By Hetauda   4:31 PM   No comments:

Background:

Nepal is a land-locked country. The rate of growth of economy largely depend upon efficient land transportation links to the neighboring countries. So, it is very important to have program to link country with the road networks of the neighboring countries, particularly with India in the south.

There are three connections to the Kathmandu valley from Birjung, Indian border: 

  1. Kanti Lokpath(KLP)- 92km 

  2. Tribhuvan Lokpath-135km 

  3. Pritivi Lokmarg via Mugling and Narayanghat-224km

Pritivi Lokmarg which is significantly longer than the former two route but  it is quicker and easier. This route is also prone to frequent closer due to slope failures, washouts and blockages during the monsoon season.  

The increase of population in Kathmandu Valley and the need of a faster and reliable link to support the economic development in the valley gave rise to the urgent need to redevelop and upgrade the KLP to make it as a reliable alternative route to connect Kathmandu with Hetauda for facilitation of goods and services trade with the neighboring India.

Nepal Government has established separate project office on fiscal year 2065/066 to improve  existing alignment and to construct one steel truss bridge over Bagmati river at the border of Makwanpur and Lalitpur distric.

Tentative Project Cost:

SN Description of Work Quantity Cost (Rs in Thousand)
1 Construction Survey 92 km 2760
2 Earth Work 500000 m3 175000
3 Retaining Wall 90000 m3 427050
4 Black Top 92 km 390800
5 Slab Culvert 10 nos 15000
6 Pipe and Causeway 100 20000
7 Drain (Earthen) 47 km 2500
8 Drain (Masonry) 45 km 110000
9 Bioengineering 92 km 30000
10 Maintenance 92 km 30000
Total Construction Cost of Project 1203110

Project Description: 

Project Location: The location of the project is the section of road from Hetauda to Kathmandu. Hetauda is on the mid point of the east-West highway and only 60km north of Birjung, the Nepal-India border town. 
Project Started Date: 2065-2066 
Estimated Completion Date: 2074-2075 
Project Objective: Redevelop and Upgrade the road to make it as a reliable alternative route to connect Kathmandu with Hetauda. 
Estimated Cost: Rs. 1,21,91,10,000 
Survey/Design : Detail Survey & Design by Korea InternationalCooperation Agency -2003. 
Design Standard: Feeder Road (FRN) 
Length Of Road: 92 km 
Starting Point: Hetauda, Makwanpur (0+000). 
End Point: Satdobato, Lalitpur (92+000) 
Major River Crossing: Jitpur & Simat at 31km, Bagmati at 51km and Nallu at 82+400. 

Design Standard:

Design Speed: 30 km per hour 
Right of way: 30m 
Carriageway Width: 5.5m (Intermediate Lane) 
Shoulder Width: 0.5 on both Side. 
Camber of Carriageway: 3% 
Camber of Shoulder: 5% 
Minimum Horizontal Curve Radius: 12m 
Minimum Vertical Curve Radius/Length: 500m/40 
Maximum Gradient: 12% 
Average Gradient: 7% 
Minimum Gradient: 1% 
Vertical Clearance: 5m 
Minimum stopping sight Distance: 45m 
Maximum super Elevation:7% 
Minimum spacing between Center of Hairpins bends:10m

Present status of the Project:

Road Length: 92 km 
  Makwanpur Sector (Hetauda to Bagmati)- 51 km 
  Lalitpur sector(Satdobato to Bagmati)- 41 km

Black Top: 15 km 
  Makwanpur Sector (Hetauda Bajar)- 8 km 
  Lalitpur Sector (Satdobato to Chapagaun)- 7 km

Gravel Road: 11 km 
   Makwanpur Sector (Hetauda Bajar Ch 8 km to 12km-Gravel deterioted) 
   Lalitpur Sector (Chapagaun to Tikabhairab-4km)

Major Bridges: Jitpur & Simat at 31km, Nallu at ch 82+400
Progress of Fiscal year 2065-066: 
Construction Survey: 15km ( 82+500 to 71+000, 57+500 to55+000 =14 km Lalitpur sector & 50+000 to 51+000=1km Makwanpur sector. 
Fisibility Study: 10km (Jitpur to Thingan) 
Earth Works :79000 m3 (Road widening from 82+500 to 72+000 =10.5km Lalitpur sector and 50 +000 to  51+000 Track opened Makwanpur sector) 
Retaining wall: 8555m3 
Sub base: 2270m3 
Base course: 490m3(1200m-Makwanpur Sector) 
Black Top:12m3 (150m-Makwanpur sector) 
Masonry Drain: 400m (Makwanpur Sector) 
Budget Allocated : Rs 5,00,00,000 
Budget Expenditure: Rs 3,88,91,000

Program of Fiscal Year 2066-067: 
Construction Survey: 19km (71+000 to 61+000=10 km Lalitpur sector & 50+000 to 41+000=9km Makwanpur sector. 
Earth work :135000 m3 (Road widening from to 72+000 to 65+000=7 km Lalitpur sector and 50 +000 to  42+000= 8km Makwanpur sector) 
Retaining wall: 8400m3 
Sub base: 7500m3(10km) 
Black Top: 260m3 (3km-Makwanpur sector) 
Pipe Culvert: 3nos 
Slab culvert: 1no 
Earthen Drain: 4.5km 
Masonry Drain: 1.5m 
Budget allocated : Rs 5,00,00

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thmandu-Kulekhani-Hetauda Tunnel (KKHT) Highway

thmandu-Kulekhani-Hetauda Tunnel (KKHT) Highway

By Hetauda   4:29 PM   No comments:

The development plan of KKHT Highway has been initiated in the context of much talked about and most desired short cut route out of the valley. This highway will connect entire western followed by southern and eastern parts of Nepal through Hetauda and will significantly boost overall economic growth of the corridor, region and the whole country.

The Hetauda-Narayanghat-Mugling-Kathmandu passage is one of the highest trafficked road corridors in Nepal. Most of the goods from India or third countries are brought to Kathmandu via this route from Birgunj and other places. The road length from Hetauda to Kathmandu is approximately 227 km with travel time of approx. 6-8 hrs. The alternative route - the Tribhuvan Highway, though only 133 km in length still requires travel time of approx. 7-8 hrs. Whereas the purposed KKHT Highway will connect Kathmandu with Hetauda via Kulekhani in an hour.

General Features
Name of the project		Kathmandu - Kulekhani - Hetauda Tunnel (KKHT) Highway
Length of the Road		Approx. 58 km
Type of the Road		4 Lane Expressway with median
Number of Tunnels		3
Tot. Length of Tunnels		4.5 km
Starting Point		Balkhu, Kathmandu
Ending Point		Hetauda, Makawanpur
Implementation Model		People, Private & Public Partnership (4Ps) under Private Financing in Build and Operation of Infrastructures, 2006 Act.
Developer		Nepal Purwadhar Bikash Company Ltd.
Prime Consultant		Full Bright Consultancy (P) Ltd.
Project Status		DPR Completed Concession Agreement signed with Government of Nepal Permission Letter already issued by Ministry of Physical Infrastructure & Transport
Design/Construction Period		Within 4 Years
Concession Period		30 years with provision of additional 5 years
Total Cost (estimated cost 2012)		NRs. 34.87 Billion

Investment Source

• Private: Business Community, Construction Business Groups, Non-Resident Nepali Groups, Transport Business Groups, Foreign Employment Group, Cooperative and Financial Institutions
• Public: Local (VDC, Municipality & DDC) and Nepal Government
• People: Individuals, Local Community and Service Provider / Work's Contractor

Nepal Purwardhar Bikash Company Limited (NPBCL)

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NPBCL is Nepal’s first public limited company building a national toll highway of Asian Highway Standards.

As a public infrastructure-developer company, we aim at bringing together and managing investments, skills, expertise and resources of the Nepalese people from within and outside the country for the national development and wealth maximization. We offer unique opportunities not only of making secure investment in infrastructure development, but also of making important contribution to the achievement of the holistic goal of nation-building.

NPBCL has emerged as a public limited company with tremendous prospects as its prime objective to construct, operate and manage large-scale infrastructure projects that cater to the needs of the Nepalese people and country as a whole. The company has been formulated with active support and credentials of business group, contractor’s group, engineering and management experts and local groups. These major blocks are the four pillars of NPBCL. It is based on the modality of people, public and private partnership (4P), and the key success factor of any development initiative. Therefore, such a holistic and participative endeavour cannot afford to fail, so as to make your investment also secure and purposeful. We all are aware that much has been said and heard about nation building; now it is high time to act upon, and participate in this national endeavour.

NPBCL is in the process of building the Kathmandu-Kulekhani-Hetauda Tunnel Highway with the 4P initiative under Private Financing in Build and Operation of Infrastructures Act, 2006. The contract has been signed with the Government of Nepal in second week of May 2013. Thereafter, the permission was granted to construct and operate in third week of May 2013. With the construction of the KKHT highway, it takes just an hour, instead of 6-8 hours, to reach from capital city Kathmandu to Hetauda, the gateway to western, eastern and southern parts of Nepal. It opens up ample avenues for commercial and economic development.

Support from the government as the concessioner
Following are some of the Favorable terms and conditions of Concession Agreement - Signed by the Government on May 14, 2013

		Licensed valid for 30 years
		Option to extend license for 5 years
		Option to change the toll rate on the request of the license owner
		Raise toll on operation of the road under partial completion or completion of the road construction
		Nepal Government will not charge any royalty from the project owner during the construction or operation of the KKTH project
		Nepal Government will not issue license to any other projects that will impact the viability of the KKTH project, except for the Kathmandu Nijgadh Fast Track
		Nepal Government shall not nationalize land, building, instruments and infrastructure associated with the KKTH project
		Nepal Government will assist KKTH project in acquisition private land and building and will also make available government/public land to the project under rental or lease
		Will allow the project owner to collect required debt and capital in foreign currency and according to FDITTA allow repatriation of interest, principle, dividends or share capital invested
		Applicable tax rate – 12% (40% rebates on applicable tax rate of 20%)
		No source of investment would be sought for investment made till Chaitra 2075 (April 2019)
		Levy custom duty of only 1% on import of machinery/ equipments needed for the project

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  Financial Factsheet Name of the Project Kathmandu-Kulekhani-Hetauda Tunnel Highway (KKHT) Highway Estimated Project Cost Rs 34.876 Billion (excluding IDC) Debt/Equity Ratio 80:20 Equity Rs 7 Billion Debt Financing Rs 27.901 Billion (excluding IDC and cost of raising debt) Promoter shares 60% of Equity Initial Public Offering (IPO) 40% of Equity Shares from Promoters/Bartering Rs 4.815 Billion (60% of Equity Capital including preferred dividends) IPO Rs 2.79 Billion Dividend Payout Year 7 Years after operation Debt Repayment Period 17 Years (with moratorium period for first 2 years) Interest on Debt 8.50% Payback Period 9.69 years after operation Internal Rate of Return (IRR) 16.69% approx. Equity IRR 22.81% NPV Rs. 21.29 Billion Simple payback period 12.94 years Discounted payback period 18.04 years Simple payback period with construction 9.44 years Discounted payback period with construction 14.54 years Depreciation Over the life of the operation of the project Discount Rate WACC at Cost of Debt @ 8.5% and Equity @ 14.77% Levy Custom Duty 1% on import of Machinery/Equipment needed for the project Income Tax 12% (i.e. 40% rebate on existing 20% tax rate) Inflation Rate on Local Currency 7% (Assumed) Share Denominator Rs. 100 Total Number of Initial Promoters 159 Banks and Account Number Bank Account Number Swift Code Number Currencies Grand Bank Nepal Ltd. 01202147 CO DCBNNPKA NPR Grand Bank Nepal Ltd. 01202147 COGB DCBNNPKA Pound Sterling Himalayan Bank 01803885320014 NPR Global IME Bank 3401010000001 GLBBNPKA NPR Global IME Bank 3401020000001 GLBBNPKA US Dollars Global IME Bank 3401030000001 GLBBNPKA Euro Global IME Bank 3401040000001 GLBBNPKA Great British Pounds Global IME Bank 3401050000001 GLBBNPKA Australian Dollar Global IME Bank 3401090000001 GLBBNPKA Japanese Yen Prabhu Finance Co. Ltd 01000529ID NPR NDEP Development Bank 1021001212 NPR NMB Bank 00100001611F NPR NIDC Capital Markets Limited 10000238001 NPR NIC Asia Bank Limited 54-41-309953-524-001 NPR Nabil Bank Limited 05010-175-00833 NPR Machhapuchchhre Bank Limited 25-01-524-335119-01-2 NPR

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