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| Kathmandu, Tuesday September 09, 2003 Bhadra 23, 2060. |
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Govt
requests WB to extend ICD project
Post Report
KATHMANDU, Sept 8 : The
government has requested the World Bank (WB) to further extend the project deadline for
Nepal Multi-model Transit and Trade Facilitation Project (NMTTFP) which constructed dry
ports in three major custom points.
The extension request
has been made as operating the Birgunj-based Inland Container Depot (ICD) within the
deadline which expires this month, is very unlikely, said the source.
Senior officials of the
project today commenced the consultation meeting on the matter with a mission of the bank,
the principal lender of the project, which is currently in the capital.
"The mission will
basically review the proceedings of the project and achievement realised so far," the
source added.
During the meeting
today, the Nepali officials reiterated that delay in finalising Nepal-India Railways
Agreement (NIRA) was the sole reason behind brining dry port in Birgunj into operation,
the source said. Signing the agreement is mandatory, as operation of the ICD is based on
railways.
The construction of the
ICD having railway link with Kolkata, was completed over two years back. Two other dry
ports based in Bhairahawa and Biratnagar have already come into operation.
"The review
meeting would continue for the next few days," the source said, further stating that
the WB officials also expressed concern over the delay in materialising the railways
agreement today. Most importantly, they are aware that delay in operating the Birgunj ICD
was not due to local problem, he said expressing optimism of the deadline extension.
Nepal has already
concluded negotiations on bilateral railway agreement with India. But, there are still
‘minor nitty-gritty’, as officials put it, which have been delaying finalisation
of the agreement.
The intention of the
Indian government to impose Indian Railways Act on cargo train operating between Kolkata
and ICD till Nepal prepares its own Railways Act, is the major hindrance to finalising the
agreement. Such an intention was reflected in the draft agreement that India forwarded and
the cabinet declined to agree on it, the source said.
He added that the
Ministry of Labour and Transport Management is currently drafting the Railways Act to pave
way for early signing of the agreement. "The draft Act will be forwarded to the
cabinet soon," he added.
The WB funded
government-run NMTTFP was initiated in 1998. An investment of over US$ 18 million has been
made for constructing Birgunj-based ICD. India too assisted in the project by extending a
broad-gauge railway line to ICD from Raxaul.
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