Kathmandu, March 28

The Development Committee of the Legislature-Parliament has directed the Ministry of Finance (MoF) to release required fund to black-top 518-kilometres of Postal Highway. The Postal Highway Project has begun the process to award the contract to black-top some sections of this portion of the 1,792.42-km highway.

The Indian government has pledged assistance for implementation of this project and a memorandum of understanding (MoU) was signed with the government of India for upgradation of 518-km stretch in the first phase. As per the MoU signed earlier this year, the country will receive INR five billion (Rs eight billion).

The tentative cost to complete the first phase is expected to hover at around Rs 13.68 billion, according to Bal Ram Mishra, project director of Postal Highway Project. The Project has divided the 518-km portion of the Postal Highway into 17 sub-sections and has started the process of awarding contracts for nine sub-sections.

According to the project office, the process of awarding contract for upgradation of Nepalgunj-Baghauda (44.5 km); Bhurigaun-Gulariya-Murtiya (36 km); Manmat-Kalaiya-Matiarba (27 km); Naya Road-Barathawa-Madhubani (40.31 km); Nawalpur- Malangwa (26.59 km) has already been initiated. Similarly, bidding for Birendrabazar-Yadukuwa-Mahinthapur (32.35 km); Janakpur-Yadukuwa (17.5 km); Janakpur-Jaleshwor (18.75 km) and Charali-Chandragadhi-Kechana (40 km) has been started, as per Mishra.

The project is preparing to mobilise Indian government’s assistance in aforementioned nine sub-sections and if the government releases the fund amounting to Rs 5.68 billion to fill the gap of deficit in Indian assistance, the work of the first phase will begin in full-fledged manner.

The Indian government had principally agreed to provide assistance for Postal Highway project, which falls in the Tarai plains of Nepal during then prime minister Madhav Kumar Nepal’s visit to India in 2009. Earlier too, the government had awarded contract of some sections of the Postal Highway, but the contractors had fled without completing the assigned work last year. Then after, the Postal Highway Project had terminated the contract with earlier contractor and started the new process.

As the Indian government has pledged to provide the fund for upgradation of Postal Highway in the first phase, Nepal government should not hesitate to bridge the fund deficit, according to Rabindra Adhikari, chairperson of the Development Committee.

The parliamentary panel has also instructed concerned ministries to carry out site clearance, settlement of local issues related to compensation to the land owners, forest and environment-related issues to expedite the upgradation of Postal Highway.

If the MoF releases the required fund as demanded by the Postal Highway Project, the project will also start awarding multi-year contracts for the rest of the eight sections — strategically important 59-km Birgunj-Thori road; Satibhajani-Dhangadhi (16 km), Tamagadhi-Simraungadh (39.31 km); Kanepokhari-Rangeli (25.37 km); Kalyanpur-Subarnapati (17.29 km); Lamahi-Koilabas (34 km); Jaleshwor-Hardi (27.20 km) and Maisthan-Shamsi Mahottari (26.90 km), according to the Postal Highway Project.