Ahead of elections, Nepal gives key road project linking Indian border to Chinese firm

The Nepal Army has given a contract to a Chinese firm to build a key phase of an expressway linking Kathmandu, the country's capital, with the southern plains, overlooking a bid made by India's Afcons Infrastructure, according to The Economic Times.

The development took place less than 10 days before the landlocked Himalayan nation goes to the polls on Sunday (20).

The report cited informed sources saying that the Chinese firm -- China First Highway Engineering -- was earlier disqualified in the tender to build the sixth phase of the strategic Kathmandu-Terai-Madhesh Expressway as it lacked the technical expertise. But it was given a backdoor entry later.

On November 11, the Nepal Army, which is in charge of the project, issued the letter of intent to the Chinese company, The Economic Times added.

It was also reported that companies whose bids were declined are considering moving the court. It was alleged that the bidding process was less than transparent.

There were also indications that the matter could now be taken up with Nepali prime minister Sher Bahadur Deuba.

The construction of the project was started in 2017 with 2024 set as the new deadline for completion. The initial deadline was missed due to a number of reasons, including slow work.

While the Chinese company filed a proposal of 18.786 billion Nepali rupees, Afcons Infrastructure filed a proposal for 19.99 billion Nepali rupees.

The expressway, which will connect Kathmandu to Nijgadh in the Terai region close to the Indian border, is expected to reduce travel time between the two points by an one hour, The Kathmandu Post reported.