According to the Ministry of Physical Planning and Works (MoPPW), Everest Bank with Gammon India, Landmark Worldwide Company and Reliance Infrastructure have shown interest in investing in the Kathmandu-Tarai Fast-Track Road. The last date for submitting an Expression of Interest (EOI) was July 2.

MoPPW had called for individuals and firms to submit EOIs for execution of the Kathmandu-Tarai Fast-Track Road on the Build, Operate and Transfer (BOT) model under Private Financing in Infrastructure Development and Operation Act.

"We will evaluate the qualifications claimed by parties that have submitted applications," Kamal Raj Panday, joint secretary at MoPPW, said.

"We will ask the companies to present Requests for Proposal (RFP) before selecting one of them for award of the investment opportunity once the evaluation process is completed," Panday added.

Panday said the evaluation process would be completed within one and a half months.

A detailed feasibility study of the proposed 76-km fast-track road was carried out with the technical assistance of Asian Development Bank. The road will extend from Khokana in Lalitpur district to Nijgadh in Bara district.

According to the report, travel time would be shortened to 1.5 hours from the existing  six to seven hours because of the improved road condition. The project report has estimated that fuel costs could be cut to 32 million liters, worth Rs 1.8 billion, in the first year of operation.

The study has presented two options - a four-lane or a two-lane road, on which vehicles can cruise comfortably at 80 km per hour. The estimated costs are Rs 67.47 billion and Rs 50.07 billion respectively at March 2008 prices.

In order to provide permanent source of funding to operate the road, the report has suggested that cars and heavy vehicles be charged a toll of Rs 800 and Rs 1,800 per trip respectively, an amount not exceeding what is estimated to be saved due to shortened travel distance.

The study stated that the main objectives of the project are to improve transport reliability through cost-effective investment program that links the capital with the tarai and the Indian border, with considerable savings in both travel time and costs.