KTM-TARAI FAST TRACK: Korean, Nepali firms join forces
KATHMANDU, SEP 10 -
South Korean firm Samsung Engineering and Kalika Construction, a Nepali A class construction company, have joined forces to build the proposed Kathmandu-Tarai Fast Track road. The joint venture is named Samsung Kalika Consortium.
It recently purchased the expression of interest (EoI) document to bid for the 76-km expressway which will be built as a public private partnership under the build-operate-transport modality. Samsung is the second Korean firm which has shown interest in investing in the product after Landmark Worldwide (LMW).
“We have formed a consortium with Samsung to bid for the Fast Track road,” said Madhusudan KC, administrative manager of Kalika Construction. He added that the JV with a local company was necessary for international firms to get extra points in the EoI and request for proposal (RFP) evaluation.
As per the criteria set in the EoI, consortiums or firms involving Nepali contractors as an equity partner will be given extra points of up to 10 in proportion to the equity share of the Nepali subject to a maximum 10 percent. The Ministry of Physical Planning, Works and Transport Management will shortlist six potential firms during the EoI evaluation to issue the RFP.
Along with the Samsung Kalika JV, a total of seven firms as of Sunday have procured EoI documents to invest in the Fast Track road linking the capital with the southern plains. The firms
which have bought the documents are LMW, Indian firms Reliance Infrastructure, Larsen and Turbo (L&T) Infrastructure Development Projects, Infrastructure Leasing & Financial Services (IL&FS) and Srei Infrastructure Finance and a domestic construction company Sonakshi Infrastructure Development.
Officials of the Fast Track Project said that Srei and Sonakshi had bought bid documents last week. According to them, Sonakshi has said that it would invite an international partner. Srei is the fourth Indian firm to show an interest in the Fast Track project. It possesses expertise in financing infrastructure projects, equipment and development.
The planned Fast Track road is estimated to cost over Rs 80 billion. The government called for fresh EoIs two months ago and encouraged international applicants to involved Nepali contractors with the aim of technology transfer, capacity building and reduction of foreign currency involvement.
On Sunday, the ministry held a pre-bidding conference for potential bidders. According to the ministry, the meeting was attended by representatives, agents of international firms and Nepali contractors. Participants in the meeting had urged the government to increase the 15 percent equity support to at least 20 percent and arrange a field visit.
Posted on: 2012-09-10 08:44