Rs 54 billion for infra development

Rs 54 billion for infra development

14 July 2015 | The Kathmandu Post

POST REPORT Kathmandu Post Money

KATHMANDU, JUL 14 - The government has one again floated the idea of establishing Infrastructure Development Bank for financing infrastructure projects. The budget for fiscal year 2015-16 has stated the development bank would be established by incorporating capable private sector stakeholders. The government is also considering carrying out reforms at Nepal Industrial Development Corporation Development Bank (NIDC) and Hydroelectric Investment and Development Company Limited (HIDCL). To develop infrastructure projects, the government has allocated Rs54 billion for the Ministry of Physical Infrastructure and Transport Management. Along with roadways to be developed at the local-level, the government plans to develop 1,942km of track road in 2015-16. Also, 795km roads will be blacktopped within next fiscal. For periodic, regular and time-to-time repair and maintenance of strategic roads, the government has allocated Rs830 million. A total of Rs3.19 billion has been allocated for the construction of Postal Highway. The government aims at completing the project within five years. Also, Rs250 million has been allocated for Bhittamod-Janakpur road section. The East-West highway will be upgraded into four lanes.

Construction of strategic roadways in Terai-Madhesh will be continued. A sum of Rs1 billion has been allocated for beginning the construction of the Kathmandu-Terai Fast-Track road. To extend the road etwork in Himalayan and hilly regions, the government has allocated Rs1.95 billion for mid-hill highway.

“The budget has allocated adequate resources for road projects,” Tulsi Prasad Sitaula, secretary at Ministry of Physical Infrastructure and Transport said. “The overall budget for the ministry has been increased by 25 percent, which is good.” Sitaula said the ministry had succeeded in spending 80 percent the allocated funds this fiscal year, and that they will try to spend more in next fiscal year.

The budget has stated the construction of the Thankot-Naubise tunnel road will begin this year. For this, Rs1.67 billion has been allocated. And, Rs2.13 billion has been allocated for the upgradation of the Narayanghat-Muglin highway. Reconstruction and repair of roadways will also be carried opt. The Bahrabishe-Tatopani road section of the Araniko highway will also be upgraded. Construction 170 bridges will be completed. A total of Rs3.76 billion has been allocated for under-construction Shikta, Rani Jamara Kulariya and Babai Irrigation projects. For making big irrigation projects functional in full capacity, Rs520 million has been allocated. In the energy sector, the government has allocated Rs45.72 billion. Alternative energy has got Rs5.49 billion. Of the Rs 45.72 billion, Rs12.73 billion has been allocated for transmission line development. The government has stated it will prioritise Karnali-Chisapani, Naumure, Sunkoshi, Upper Arun, Aandhikola and Uttar Ganga Hydropower Projects. The agreement for constructing the export-oriented 650MW Tamakoshi III and 400MW Marsyangdi hydropower projects will be held. For utilising remittance in productive sector, project development under the concept of “Remit Hydro” will be held.