IOC, NOC sign B2B deal on petroleum pipeline
Kathmandu, August 25
In what might be a clear sign that the petroleum pipeline project is finally gathering momentum, Indian Oil Corporation (IOC) and Nepal Oil Corporation (NOC) have signed the business-to-business (B2B) deal today.
The agreement has been signed just a day after the inking of the government-to-government (G2G) deal for the construction of Raxaul-Amlekhganj petroleum pipeline.
The B2B agreement signed between the two parties has paved the way for IOC — the executing agency of the project — to invite bids for the construction of 41-km pipeline and re-engineering of NOC’s Amlekhganj depot.
Similarly, the agreement also allows IOC and NOC to set up joint project office, and form high-level monitoring and coordination team for project implementation, according to NOC’s Managing Director Gopal Bahadur Khadka. “The monitoring team will comprise high-level officials from NOC and IOC.”
However, NOC and IOC still have to sign engineering contract and operation/maintenance contract before the construction of the project can begin. The project is expected to be completed within 30 months once the construction starts.
Before utilising the pipeline, NOC and IOC will sign two other agreements — supply contract and third party contract (that deals with allowing a third party to use the pipeline), according to Khadka.
He further informed that NOC and IOC are planning to start construction of the project by next month.