•   Sunday, 23 Jun, 2024

Delay in 'Metro Plaza' construction sparks contract termination preparations

this
Generic placeholder image
  

CHITWAN, Dec 5: The construction of 'Metro Plaza,' a collaborative project with the private sector in Bharatpur Metropolitan City, has not commenced even two years after the contract was awarded. The foundation stone, laid by the current Prime Minister Pushpa Kamal Dahal on August 25, 2021, remains untouched.

Bharatpur Metropolitan City has stated that Arya Wilders Engineering Pvt Ltd, the company awarded the contract, has not adhered to the agreed-upon terms. Despite being planned for completion in three years under the Public Private Partnership (PPP) model, there has been no progress.

Mayor Renu Dahal emphasized that the contract could be terminated if the company fails to fulfill its obligations. She warned, "If they do not meet the commitment made to us by December 6, we will terminate the contract." Additionally, she cautioned that the deposited money would be confiscated.

Bharatpur metropolis has requested the construction company to submit financial closure, environmental impact assessment report, and work schedule. If these documents are not provided within the specified time, the metropolis is prepared to terminate the contract.

The project, expected to involve an investment of about Rs 3 billion by the private sector on an 11.5 kattha land in Narayanghat Lions Chowk, Bharatpur-3, includes plans for a 12-story building with three basement parking lots. It is intended to feature a children's park, a conference hall, a five-star hotel, a cinema hall, a food court, and other structures.

The company was granted a 30-year contract, with three years allocated for construction and 27 years for business operation. Jagannath Aryal, Coordinator of Public Private Partnership (PPP) and Head of the Economic Division, clarified that the property would be owned by the metropolis. "We allowed three years for construction. After paying the revenue, they have an agreement to operate the business for 27 years," he stated.

The Metro Plaza project aims to boost employment and income for the metropolis, with revenue projections of Rs 3 million in the first year, Rs 3.5 million in the second year, and Rs 4 million in the third year. The agreement outlines that the metropolis will receive Rs 15.4 million, including land rent and revenue, from the fourth year onwards. The revenue is slated to increase by 10 percent every two years. The agreement between the metropolis and the contractor was signed on August 8, 2021.

 


Source: myRepublica
Comment As:

Comment (0)