NEFPORT ISSUE 45 – JULY 2021
INFRASTRUCTURE AGRICULTURE INFRASTRUCTURE
The review period highlights the squandering picture of the construction sector in various parts of the nation. While some construction projects, such as that of petroleum pipelines and cable cars, have faced somewhat positive and persistent efforts, the same is not the case for others. Numerous projects related to road construction, dry ports, construction of buildings, and others have been delayed majorly due to lack of workers, supply-chain disruptions, inability of the contractors to pursue the undertaken project, and other such reasons. Completion of feasibility study of extending Motihari-Amlekhgunj oil pipeline: Nearly a year and a half ago,
a cross border pipeline from Motihari in India to Amlekhgunj became operational. This 69 km pipeline, which brings gasoline, was in talks of being extended to Chitwan. Following this, a joint technical study group of Nepal Oil Corporation (NOC) and its supplier Indian Oil Corporation (IOC) concluded a feasibility study for the extension of the pipeline and successfully submitted the study report to the Ministry of Industry, Commerce and Supplies.50 The report states that the proposed pipeline will be 62 km in length and will cost NPR 4 billion (USD 33.22 million). Likewise, the entire project is estimated to cost a total of NPR 14 billion (USD 116.27 million), including building associated infrastructure for the pipeline. The extension of the pipeline was first considered because of the growing gasoline consumption of Nepali people. As per a report published by the Central Bureau of Statistics (CBS) in 2019, Nepalis consumed 90% more fuel than they did five years earlier, which was adding to the trade deficit as well as causing environmental consequences. Besides, according to
the experts at NOC, this increase in consumption also simultaneously increased the petroleum demand by 10% annually despite the regular supply of electricity. Thus, with the extension of the pipeline, NOC intends to bring petrol in Nepal within this year. Further, it also expects to reduce oil transportation charges that NOC pays to private tankers.
been halted. The contractor of the company and the workers have stayed away and have agreed to continue the work after getting vaccinated. But the workers who had left for China to get vaccinated have not returned in over three months. Moreover, since Nepal is yet to vaccinate its citizens, the contractor has not given any word to the NITDB either.51
Construction of Rasuwa dry port halted since a year: In April 2015,
Only 10% of the work has been completed and despite strenuous efforts from the board, it has not received any updated plans/timeline from the company until now. Thus, the NITDB is unsure about the project completion date, time, and cost.52
the governments of both Nepal and China had signed a Memorandum of Understanding (MoU) to construct the dry port in Rasuwagadhi as this border point was gaining a lot of momentum and was being highlighted as one of the major customs points along the Northern border. Following this, on May 12, 2019, Nepal Intermodal Transport Development Board (NITDB) signed an agreement with Tibet Fuli Construction Group Company Limited to build the inland container depot at Timure in Rasuwa district. The executive director of the board had confirmed that the Chinese company was to complete the facility in 30 months, i.e., by May 2022. However, in the wake of the coronavirus pandemic, the construction work has
Cable car in Bandipur to be operated in six months: According
to the Bandipur Cable Car Private Limited, the cable car in Tanahun, which was under construction since early Dashain in 2020 (2077 BS,) will be brought into operation within six months this year. The cable is 1.6 km long and will have 12 towers. The 12-storey upper-tower will have a hotel with a capacity of 66 rooms, providing a view tower, a swimming pool, and three lifts. Likewise, the cable way project is estimated to cost NPR 2.6 billion (USD 21.59
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