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Kathmandu Monday January 15, 2001 Magh 02, 2057.
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Works on inland container depot
complete
By Gopal Devkota
BIRGUNJ, Jan 14 - The construction works of Birgunj Inland Container Depot
(ICD), a multi-billion rupees project, jointly financed by the World Bank and the
government, has been completed, but is unlikely to begin operation on time due to
India’s continued indifference to sign the railway operation modality.
Despite government’s repeated official follow-ups, the Indian Railways
Board has not responded on Railway Operation Modality draft sent by Nepal almost a year
ago. Director of the project Purushottam Ojha informed media persons that Nepal has
official been following-up the issue with the Indian government. As per the initial
program, all necessary preparations regarding the ICD should have been completed last
December.
"We are following up the issue with the Indian government and the ICD
will come into operation within the next six months," Ojha said at a press conference
organized here on Saturday.
Arvind Kumar, chief of the Indian rights company that overlooks the ICD
project, has also said that there arise no question of not reaching an agreement. The
laying down of the railway lines is estimated to cost Rs 200 million. 90 per cent of the
railways construction works has been completed, he said. With the completion of the
construction works, Birgunj would have direct links with Calcutta.
"The delay from the Indian side may be because of the need to get a
green signal from the Indian railways and the Commerce and Finance ministries," he
said, adding, "There is no room to doubt that agreement to the effect will not take
place."
Even the World Bank, which financed the construction of Birgunj ICD that cost
Rs 730 million out of the estimated 770 million had also shown concern on the issue of
railway agreement with the Indian Embassy. However, it had asserted that it is a bilateral
issue and had stressed to resolved it bilaterally.
If the deadlock remains unresolved, it could hamper the operation of the
project, which is already delayed by over 9 months. The ICD was earlier expected to be
completed last March, but the goal remained unrealized largely due to the delay in
construction works and construction of broad-gauge railway lines by India.
Once Birgunj ICD, with a capacity to handle 40 thousand containers annually,
comes into full operation, transit and transportation costs for Nepal will go down by as
high as 40 per cent, said Kumar. He added that customs clearance facilities could also be
set up in Birgunj after the ICD becomes operational, which till now is being done in
Calcutta, the main gateway for Nepali foreign trade.
Birgunj ICD is the largest among all ICDs that the government undertook. The
other two ICDs are located in Biratnagar and Bhairahawa, both of which have already come
under full-fledged operation. The Birgunj ICD has two large godowns, 400 by 25 metres and
250 by 35 metres. According to Kumar, the 400-metre long godown is largest in South Asia.
The ICD, among others, also has a powerhouse, water tank of 150 thousand
litre capacity, 6 railway lines and refrigerator containers. The ICD has a capacity to
accommodate over 140 truck containers.
The government has given the responsibility of running the ICD to Nepal
Inter-modal Transport Development Committee. The committee in turn would operate the ICD
with the help of private parties, for which ten companies have tendered their bids.
The World Bank had decided to finance the project
in December 1997, only after India agreed to cooperate in it and even extended grant
assistance for the construction of board-gauge railways track connecting the ICD to
Raxaul, India. Out of the estimated cost of US$ 28.5 million, US$ 23.5 million is being
financed by IDA, the World Bank and US$ 5 million is being met by Nepal Government.
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