Government for PPP concept

KATHMANDU: The Ministry of Physical Planning and Works (MoPPW) is preparing to implement Public Private Partnership (PPP) projects in transport development.

According to the ministry, PPP cells have been set up in the ministry and Department of Roads (DoR). “We are planning to adopt PPP concept in infrastructure development, especially in transport sector,” said Tulasi Prasad Sitaula, joint-secretary at the ministry. “Preparation to implement the concept is underway.”

In order to acquire knowledge of PPP, two teams of six joint secretaries and nine under secretaries of the ministry had separately visited Bangkok, Thailand recently. The teams obtained knowledge on basic needs, problems and awareness of PPP and about failed projects in Thailand. “We found that PPP concept could be applied in infrastructure development too. We will select projects for the PPP concept.”

The concept will be implemented under the BOT (Build, Operate and Transfer) policy, which provisions a term of 30 years for the PPP contract. The ministry will formulate policies, and DoR will implement the concept.

In the first phase, the concept will be applied to urban transport management, said Sitaula. “Inter-city transport system will be extended in the next phase. However, the modality is yet to be developed.” Sitaula added that the government would invest about 25 per cent and the private sector would invest the remaining portion. “Mainly, the government will provide land for developing the projects,” he said.

PPP modalities include development of express way, land and apartment development along with transport management. “We are thinking of implementing the PPP concept in the Kathmandu-Tarai fast-track road and an alternative road to the East-West Highway in Hetauda,” he added.

However, government officials expressed worry that the private sector could benefit more due to lack of negotiating capacity of the government, while striking deals.