IDC to conduct feasibility study on fertiliser plant
Published: December 10, 2015 8:21 am On: Business
Kathmandu, December 9
The Investment Board Nepal (IBN) will soon hand over the task of conducting feasibility study on establishment of a chemical fertiliser plant in the country to an Indian consortium led by Infrastructure Development Corporation (IDC). The Karnataka-based Indian company will take the support of the Institution of Agricultural Technologists and Shah Consult International to conduct the study. The Indian consortium had bagged the project through competitive bidding process.
Following the selection of the consortium as the preferred bidders, IBN had held negotiations with the officials of IDC on the terms and conditions of the contract, says IBN Dispatch, a monthly newsletter of IBN. As per the contract, the consulting company will have to complete the detailed feasibility study of the plant within 12 months of signing the contract.
Nepal is planning to build a chemical fertiliser plant, with production capacity of 500,000 tonnes per year. The plant, which will require 50 MW to 350 MW of power, will be built at a cost of $500 million to $1 billion. In this regard, IBN had called for expressions of interest from parties interested in conducting the study on September 16, 2014.
A total of five international companies took part in the bidding. But only three firms — Projects and Development India Ltd (PDIL), IDC and JACOBS Consultancy — later submitted proposals to IBN. Of these, only PDIL and IDC submitted financial and technical proposals. A committee led by the CEO of IBN, Radhesh Pant, evaluated financial and technical bids, in which IDC emerged at the top.