Kathmandu, November 13

The Investment Board Nepal (IBN) has been authorised to prepare the detailed project report (DPR) of the Naagdhunga-Koteshwor-Dhulikhel railway project.

A meeting of the IBN board chaired by Prime Minister Sher Bahadur Deuba took a decision to this effect today.

The meeting also authorised IBN to carry the detailed feasibility study (DFS) of the railway project.

IBN had earlier suggested the government to construct two railways connecting the Kathmandu Valley within next four years. Presenting a study report to the government on railway construction, IBN had suggested the construction of 79-kilometre railway in Kathmandu at the cost of Rs 316 billion.

Moreover, the budget for the fiscal year 2016-17 had envisioned to prepare the detailed project report for metro railway in the Kathmandu Valley by managing resources for the same.

Talking to The Himalayan Times after the meeting, IBN Chief Executive Officer Maha Prasad Adhikari said that IBN will carry forward the process of DPR and DFS of the railway project together.

“IBN has been given the task of conducting DPR and DFS of the Naagdhunga-Koteshwor-Dhulikhel railway and we will soon start working in the bidding process for the project and hire a capable consultant to carry both DPR and DFS of the project,” Adhikari said.

Informing that IBN will soon prepare the timeline for the execution of the project, Adhikari said that consultant hiring process for the railway project will be completed within one year.

Meanwhile, the IBN board meeting today has also decided to extend the deadline for financial closure of two major hydropower projects — Arun III and Upper Karnali.

Each of the hydropower projects are of 900 MW capacity.

While Satluj Jal Vidyut Nigam Ltd is the developer of Arun III, GMR India has been developing the Upper Karnali hydropower project. The financial closure deadline for the Upper Karnali and Arun III had expired on September 18 and September 30, respectively.

The IBN board meeting has extended the financial closure deadline — effective from September for both projects — by six months for Arun III and by one year for Upper Karnali. The two Indian companies had sought deadline extension with IBN in August.

The Cabinet meeting today also decided to roll back the decision of the earlier government to award the contract of Budhigandaki Hydropower Project to Chinese company — China Gezhouba Group Co Ltd (CGGC).