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 |
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| 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)
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 concessionerFollowing 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 |
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 NumberCurrencies 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
