Kathmandu, June 26
The dispute between Investment Board Nepal and the contractor company selected for the preparation of a detailed project report for the proposed monorail project in Kathmandu Valley has reached its peak as the company filed a case against the Board at the Supreme Court.
Earlier, the Board has assigned Kathmandu Monorail Pvt Ltd for the DPR. The company was selected through an open competition among the bidders.
However, the two parties have not signed the contract after the company could not show a bank guarantee of Rs 100 million.
Instead of meeting the Board’s requirement, the company sought an extension of 15 days for the guarantee, but the Board did not agree. Then, the company moved the Supreme Court against the Board.
In the preliminary hearing, the Court issued an interim order staying all the process and later ordered the company to submit a plan for the project in next 15 days.
Earlier, a preliminary feasibility study had concluded that Rs 80 billion would be necessary for the construction of a 28.5-km railway line, parallel to the existing Ring Road, in Kathmandu Valley. It is expected that the project can serve 10,000 passengers per hour, and over 100,000 every day.
Board officials now say further steps will be taken as per the verdict of apex court.
