NEFPORT 44 - Political Economy in Transition

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NEFPORT ISSUE 44 – MARCH 2021

INFRASTRUCTURE AGRICULTURE INFRASTRUCTURE

During the review period, the Nepal government has taken responsibilities of many infrastructural and construction activities, to overcome the infrastructural gap highlighted by the COVID-19 pandemic. The participation between all three tiers (federal, provincial and local) of the government for various projects has also been highlighted. However, lack of coordination in implementation of the infrastructure projects and subsequent disputes are still evident and need to be overcome to bring effective results. Ropeways to be constructed in Bagmati: The Ministry of Physical

Infrastructure and Development is set to construct ropeways in different parts of the Bagmati Province (Province 3) to ease transportation in the area. Minister Rameswar Phuyal and his team is soon to begin the study for the construction of the ropeways and cableways in Indrasarowar, Makwanpur, and Gosaikunda in Rasuwa and Dolakha. According to the Minister, the ministry has been engaged in various discussion to develop detailed project reports for the ropeways and will begin the work shortly. He believes that the increase in power production in Nepal has provided a ground for them to promote electricitybased transportation. Moreover, the ministry is also beginning the study of feasibility for gravity ropeway that may run without any energy supply. Besides, the ministry also plans to carry another study to see if the HetaudaKathmandu ropeway, built 102 years ago during the premiership of Rana Prime Minister Chandra Shumsher, could start operations again.24 Petroleum pipeline to be constructed for Siliguri-Charaali area: The

construction of infrastructure for Siliguri-Charaali petroleum pipeline,

with a capacity to store 40,000 kiloliters of petrol at Charaali-based 23 bigha land, is set to begin soon. According to Manish Neupane, Chief of the Nepal Oil Corporation’s Charaali depot, the depot which will be constructed will have the capacity store 12,050 kiloliters of petrol, 28,050 kiloliters of diesel, 450 kiloliters of kerosene and 250 kiloliters of air fuel. The total budget for the construction is set at NPR 10 billion (USD 84.03 million) for a three-year period. The construction of this petroleum pipeline will be the second inter-continental pipeline project in the country.25 A dry port in the far west to be constructed: By considering Mumbai

city in India as a transit point for third country trade, Nepal has started to construct a dry port in Dodhara, Chandani on the western border with India. This is the shortest route to the sea and is believed to provide increased access to Nepal in terms of increasing foreign trade and lowering costs. The dry port is also considered to be the first business gateway to India from Nepal’s far west. Moreover, the Intermodal Transport Development Committee under the Ministry of Industry, Commerce and

Supplies has also begun preparations to conduct a feasibility study for the dry port. The Indian government has agreed to construct an Integrated Check Post (ICP) on the border, which will be connected to the dry port by a railway line. The proposed dry port and ICP will be spread over 280 bighas of land.26 Second cross-border petroleum pipeline project to move ahead: In

January 2020, joint-secretaries of Nepal-India Joint Working Group held a meeting in New Delhi. The team made a decision to construct a petroleum pipeline project at Nepal’s request with cooperation from the Indian side. Currently, the plan to develop the second cross-border petroleum pipeline has moved a step closer after the agreement of the delegation from the Indian Oil Corporation arrived in Nepal for field study. The pipeline project has moved ahead taking into consideration the demand for oil until 2034 as per the Executive director, Surendra Poudel, of Nepal Oil Corporation. After the field study, a detailed project report will be prepared by the mid-April in the coming year 2022.27

Obstruction in the infrastructure expansion works in Kathmandu: In

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