Projects and Investment Need - Asian Highway · Gadda Chawki Brahmadev Mandi Kathmandu Terai Fast Track Road. Project Title: Pathlaiya –Nijgadh –Kathmandu (Fast Track Project)

Projects and Investment Need - Asian Highway

7~9 October, 2013 Dinker Sharma

Nepal

Development Activities

Government Investments

Total Length = 1765 km

AH 2Total Length - 1027

North South Road Corridor

gS;f

Commercial Corridors

Nepalgunj Kohalpur

22 km

Corridors yet to be taken up:

Suryabinayak-Dhulikhel

Birgunj-Pathalaiya

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

Bridge Improvement and Maintenance Project

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Kailali

Doti

Bajhang

Bajura

Darchula

Achham

Baitadi

Kanchanpur

Dadeldhura

Doti Division

Baitadi Division

Mahendra Nagar Division

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Dolpa

Humla

Mugu

Dang

Rukum

Jumla

Rolpa

Surkhet

Banke

Salyan

Jajarkot

Bardiya

Kalikot

Dailekh

Pyuthan

Surkhet Division

Nepalgunj Division

Dang Division

Devisthan Division

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Gorkha

Mustang

Kaski

Myagdi

Manang

Palpa

Baglung

Lamjung

Gulmi

Tanahun

NawalparasiKapilbastu

Syangja

Rupandehi

Parbat

Arghakhanchi

Palpa DivisionShivpur DivisionButwal DivisionDamouli DivisionPokhara Division

Sindhuli

Bara

Chitwan

Dolakha

Parsa

Kavre

Dhading

Makwanpur

Rasuwa

Sarlahi

Sindhupalchok

Dhanusa

Nuwakot

Ramechhap

Rautahat

Mahottari

Lalitpur

Nuwakot Division Kathmandu DivisionLalitpur DivisionBhaktapur DivisionCharikot DivisionHetauda DivisionJanakpur DivisionChitwan Division

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Ilam

Taplejung

Solukhumbu

Jhapa

Udaypur

Morang

Sankhuwasabha

Bhojpur

Saptari

Siraha

Khotang

Sunsari

Panchthar

Dhankuta

Terhathum

Jhapa DivisionIlam Division

Morang DivisionDhankuta DivisionLahan Division

Maintenance Activities

Investment Needs

Asian Highway 2

AH 2

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Mahendra Nagar

Widening of Bridgesalong Pathlaiya DhalkebarSection on 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

AH 42

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

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

Type of Project Proposal:

PPP basis on Built - Operate – Transfer (BOT) modality.

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.

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.

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.

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.

AH 42

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Kathmandu Terai Fast Track Road

Improvement ofThankot NaubiseSection – 2 lane

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

Projects and Investment Need - Asian Highway · Gadda Chawki Brahmadev Mandi Kathmandu Terai Fast Track Road. Project Title: Pathlaiya –Nijgadh –Kathmandu (Fast Track Project)

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