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

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

2 Development Activities Government Investments

3 Total Length = 1765 km AH 2 Total Length

4 North South Road Corridor

5 Commercial Corridors Corridors yet to be taken up: Suryabinayak-Dhulikhel Birgunj-Pathalaiya gs;f Nepalgunj Kohalpur 22 km

6 ;8s ljefu 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

7 Kailali Doti Bajhang Bajura Darchula Achham Baitadi Kanchanpur Dadeldhura Doti Division Baitadi Division Mahendra Nagar Division Dolpa Humla Mugu Dang Rukum Jumla Rolpa Surkhet Banke Salyan Jajarkot Bardiya Kalikot Dailekh Pyuthan Surkhet Division Nepalgunj Division Dang Division Devisthan Division Gorkha Mustang Kaski Myagdi Manang Palpa Baglung Lamjung Gulmi Tanahun Nawalparasi Kapilbastu Syangja Rupandehi Parbat Arghakhanchi Palpa Division Shivpur Division Butwal Division Damouli Division Pokhara Division Sindhuli Bara Chitwan Dolakha Parsa Kavr e Dhading Makwanpur Rasuwa Sarlahi Sindhupalchok Dhanusa Nuwakot Ramechhap Raut ahat Mahott ari Lalitpur Nuwakot Division Kathmandu Division Lalitpur Division Bhaktapur Division Charikot Division Hetauda Division Janakpur Division Chitwan Division Ilam Taplejung Solukhumbu Jhapa Udaypur Morang Sankhuwasabha Bhojpur Saptari Siraha Khotang Sunsari Pancht har Dhankuta Terhathum Jhapa Division Ilam Division Morang Division Dhankuta Division Lahan Division Maintenance Activities

8 Investment Needs Asian Highway 2

9 Brahmadev Mandi Mahendra Nagar Widening of Bridges along Pathlaiya Dhalkebar Section on AH 2 Gadda Chawki Kakarbhitta AH 2

10 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 m (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.

11 Asian Highway 42

12 Brahmadev Mandi AH 42 Gadda Chawki Kakarbhitta Kathmandu Terai Fast Track Road

13 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$ million and Pathlaiya to Nijgadh: US$ 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 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. Expected Timeframe for Implementation: Concession period of 30 years including construction period of 5 years proposed. Type of Project Proposal: PPP basis on Built - Operate Transfer (BOT) modality. 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. 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.

14 Brahmadev Mandi Improvement of Thankot Naubise Section 2 lane AH 42 Gadda Chawki Kakarbhitta Kathmandu Terai Fast Track Road

15 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.

16 Thank You for Your Attention