Kathmandu, February 2

The fate of Kathmandu-Kulekhani-Hetauda Tunnel (KKHT) Highway Project is in limbo due to the mounting disputes among the promoters of Nepal Purbadhar Bikash Company Ltd (NPBCL) — the developer of the project.

KKHT Highway Project is a mega infrastructure project initiated by private sector, which could be test case for private sector’s competency in developing such projects.

As NPBCL failed to generate the required fund — projected at Rs 34.87 billion based on estimation of 2012 — to achieve financial closure, a section of the promoters, including locals of the project area of Makwanpur district, have questioned the leadership of company Chairman Kush Kumar Joshi. He is former president of Federation of Nepalese Chambers of Commerce and Industry.

The disputes in the company came to light, when the struggle committee of the promoter shareholders led by promoter and former board member of NPBCL Rajuman Maharjan started to stage a sit-in two weeks ago. He has been seeking assurance of project implementation as the liability of the firm has reached almost neck-to-neck with its paid-up capital.

Amidst these circumstances, Chairman Joshi has tendered his resignation to the board of directors and the meeting of the board scheduled for February 10 will decide on the matter. “I have submitted my resignation to make way for anyone more capable to handle the project implementation,” said Joshi.

The struggle committee today demanded that the board approve Joshi’s resignation and appoint a capable person to the post.

Organising a press meet here today, the struggle committee has alleged that Joshi was not serious in implementing the project. He has held the post of founding chairman of the company since last four years.

The struggle committee has said that liability of the firm has exceeded Rs 280 million, while its paid-up capital is Rs 303.1 million.

“Chairman Joshi completely failed to generate funds from business community, non-resident Nepalis, Nepalis working abroad, among others, in line with his earlier pledges,” said Maharjan.

The committee has claimed that Joshi unnecessarily added to the liability of company by over-staffing, organising lavish foreign trips and awarding tender for detailed design and environmental impact assessment (EIA) at his own discretion. “The company hardly witnessed any remarkable achievement under his chairmanship,” said Milan Karki, secretary of the struggle committee.

The company had obtained construction licence for the project on May 16, 2013. In its report submitted to Ministry of Physical Infrastructure and Transport in March of 2015, the firm had said that it was trying to woo investors from Canadian firms Crown Corporations and Shej Global for investment worth 400 million Canadian dollars. However, nothing has materialised till date.

The proposed 58-km expressway consists of three tunnels of total length of 4.5 kilometres. About 90 per cent of the project area falls in Makwanpur district. The expressway would stretch from Balkhu of Kathmandu to Hetauda. The detailed design and EIA of the project has been conducted by Full Bright Consultancy Ltd, a company owned by NPBCL’s Vice Chairperson cum Technical Director Lal Krishna KC. The total cost of detailed design and EIA stands at Rs 170 million, which is a liability to the vice chairperson’s firm.

The NPBCL has collected Rs 100 million from TBi Group, Rs 24.8 million from migrant workers in South Korea and rest from its promoters and locals of Makwanpur.