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8 transportation sector_mr gopal prasad sigdel


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Presentation by Mr. Gopal Prasad Sigdel, Joint Secretary, Ministry of Physical Infrastructure and Transport

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8 transportation sector_mr gopal prasad sigdel

  1. 1. INFRASTRUCTURE AND TRANSPORTATION Private Sector Investment in Transport Infrastructure Gopal Prasad Sigdel Joint Secretary, Ministry of Physical Infrastructure and Transport
  2. 2. BRIEF COUNTRY PROFILE • A land-linked, not a landlocked country • Unitary to Federal Structure (Stable Governments at Federal, Provincial and Local levels) • Economic Growth Rate: 6.3% (2017) • Total Budget: USD 12.15 billion (2018‐2019) • Aims to graduate to middle income country by 2030
  3. 3. INFRASTRUCTURE SCENARIO ROAD DENSITY Nepal: (139 km/1000 km2) South Asia: (1123 km/1000 km2) URBANIZATION Urban Area Population: ~20% Growth Rate: 5% INFRASTRUCTURE Investment need: US$ 17.70 billion/year for SDG target
  4. 4. OVERVIEW OF TRANSPORT SECTOR • Major Modes of Transportation: Road and Aviation • Developing Modes: Railways and ropeways (Cable cars) • Sectoral growth of transport, communication and storage: 5.4% (FY 017/18) • Contribution to the GDP: 8.0% • Investment Plan for next 5-year: US$ 8.2 billion • Road Network: 70,000 km (SRN and LRN) • Road Connectivity: 76 out of 77 district headquarters
  5. 5. CURRENT STATUS OF AVIATION SECTOR: • Tribhuwan International Airport (TIA): Upgradation underway • Regional Airports: 3 under expansion plan (Nepalgunj, Biratnagar, Dhangadhi) • New International Airports: Gautam Buddha and Pokhara International Airport coming into operation within 2019 and 2020 respectively • Domestic Airports: 32 out of 50 are in operation • Nijgadh International Airport: Land Acquisition and EIA completed, private sector called for development OVERVIEW OF TRANSPORT SECTOR
  6. 6. • Railway Plans: East-West, South-North connecting India and China • Waterways Plans: In the Koshi, Gandaki and Karnali Rivers. Policies, Laws and Institutional arrangements are under development OVERVIEW OF TRANSPORT SECTOR
  7. 7. 1992 1992 1996 2000 2004 2008 2012 2016 Hydropower Policy, Electricity Act, BOT Policy on Road Sector Hydropower Policy, Public Infrastructure BOT Policy Private Financing in Public Infrastructure (BOT) Act and Regulation PPP Policy, Foreign Investment and One- Window Policy Electricity Regulatory Commission Act PPP and Investment Act, FITTA EVOLUTION OF POLICY AND LEGAL FRAMEWORK
  8. 8. Institutional arrangements (Policy Level) • Ministries (Physical Infrastructure and Transport; Federal Affairs and General Administration; Culture, Tourism and Civil Aviation) • National Planning Commission and Investment Board Nepal Regulatory and implementation level • Departments (Road, Local Infrastructure, Railways, Transport Management) • Civil Aviation Authority, Roads Board Nepal, Waterways office INSTITUTIONAL ARRANGEMENTS
  9. 9. POLICY PROVISIONS, REFORMS AND INCENTIVES • Provision of Viability Gap Funding (VGF): PPP and Investment Act, 2019 • Concession Period: Not limited • Subsidy Policy: Determined on case to case basis by the Government • Unsolicited Proposal: PPP and Investment Act, 2019 • Land Acquisition: Facilitated by the Government • Risk Sharing: Provision of risk sharing between Private and Public Sectors • Environment: Clear legal provision on environmental standards • Repatriation: Allowed in FDI projects
  10. 10. EXPERIENCE OF PRIVATE INVESTMENT IN PUBLIC INFRASTRUCTURE • In Hydropower Projects: Widely and Successfully practiced under BOOT Model (Bhotekoshi, Khimti, Arun-3 etc.) • In Ropeways/Cable Cars: Several projects in operation (Manakamana, Chandragiri, Kalinchowk, etc.) • In Road & Airport: In Planning (Nijgadh International Airport) • In Urban Development: In development phase (Solid Waste Management Project – Kathmandu)
  11. 11. POTENTIAL/READY-TO-GO PROJECTS (ROADS) 1. North-South Corridors (8 Projects) • Mohana-Dhangadi-Atariya-Baitadi-Darchula-Tinker • Nepalgunj-Surkhet-Simikot-Hilsa • Bhairahawa-Palpa- Kusma-Beni-Jomsom-Korala • Birgunj-Galchi-Rasua-Syafrubesi • Birgunj-Naubise-Kathmandu-Tatopani-Khasa • Janakpur-Dolakha-Lamabagar-China border • Rani-Itahari-Hile-Kimathanka-China border • Kechana-Taplejung-Olangchungola- Tiptala
  12. 12. 2. Mid- Hill Highway/Puspalal Highway 3. Hulaki Marga/Postal Highway 4. Madan Bhandari Highway 5. Kathmandu- Terai/Madhes Fast Track (PPP Operation) 6. Nagdhunga Tunnelway (PPP Operations) 7. Kathmandu - Kulekhani - Hetauda Tunnel Highway POTENTIAL/READY-TO-GO PROJECTS (ROADS)
  13. 13. 8. Maintenance, Repair and Overhaul (MRO) in Aviation Sector 9. Pokhara Regional International Airport (PPP Operations) 10. Gautam Buddha International Airport (PPP Operations) 11. Nijgadh International Airport (PPP Construction and Operations) 12. Management and Operations of Tribhuvan International Airport 13. Biratnagar Regional International Airport 14. Dhangadi Regional International Airport POTENTIAL/READY-TO-GO PROJECTS (AVIATION)
  14. 14. 15. Waterways: Koshi, Gandaki and Karnali rivers connecting India 16. Cable Cars: Jomsom, Muktinath, Swargadwari, Pathibhara, Maulakalika, Jalpadevi, Annapurna-Sikles, Khaptad, etc. POTENTIAL/READY-TO-GO PROJECTS (WATERWAYS AND CABLE CARS)
  15. 15. 17. Bus Rapid Transit (BRT): Ring road in Kathmandu, Buddhist and Ramayan Circuit 18. Metrorail: Kathmandu Valley 19. Urban Transport: In major Cities (Pokhara, Biratnagar, Nepalgunj, etc.) 20. Inter-state & Intra-state Public Transportation: All 7 Provinces POTENTIAL/READY-TO-GO PROJECTS (MASS TRANSPORTATION)
  16. 16. 21. East-West Electrified Railway 22. Kathmandu-Pokhara-Lumbini Electrified Railway 23. Kerung-Kathmandu Railway POTENTIAL/READY-TO-GO PROJECTS (RAILWAYS)
  17. 17. OPPORTUNITIES • Huge infrastructure gap • Government's priority for infrastructure development. • Political Stability and consensus on FDI • Enabling Business Environment • Conducive Institutional and Legal environment • Sound Law and Order
  18. 18. Thank You