KATHMANDU-KULEKHANI-HETAUDA TUNNEL ROAD AND ITS ECONOMIC IMPACTS

WHAT ARE THE KEYWORDS??

Economic implications, transportation investments, benefits of tunnel road, project specifications

DID YOU KNOW???

It is the first tunnel highway in Nepal, which starts from Balkhu with the first tunnel of about 392 meters at Chobar. The main tunnel of about 3425 meters will be constructed at Kulekhani leading the way to Bhimphedi and the third tunnel of about 735 meters will be constructed at Bhaise

TUNNEL ROAD SCENARIO IN NEPAL

World population growing so is Nepals (annual growth of 6%) More population results in more demand of facilities like transportation, communications etc. Fulfilling such demand resulted in the construction of KKHT road. KKHT road is first of its kind and it might act as the pioneer tunnel road in Nepal The existing major roads and the networks are generally small and of low standard

BASIC INFORMATION ON KKHT ROAD

Total Length: - 58 km Type of road: - 4 Lane expressway with median Construction period: - Within 4 years Responsible agency:- Nepal Purwadhar Bikash Company Ltd. Starting point: - Balkhu, Kathmandu Ending point: - Hetauda, Makawanpur Budget for construction: - Rs 34.5 billion Number of tunnel: - 3 Length of longest tunnel: - 3.4 km Total bridges on tunnel road: - 15

PHOTO SHOWING VIRTUAL IMAGE OF THE TUNNEL ROAD

BACKGROUND ON KKHT ROAD

It will be generous to nation economically, socially as well as environmentally Government have initiated to lease public land for required for construction NPBCL has proposed to take 57 hectares of public land Land sought by NPBCL includes government forest, community forest and other barren land NPBCL also plans to acquire private land in dozen VDCs of the 3 districts that fall on the proposed higway. NPBCL has an agreement with the government regarding use of leased public land for 30 yrs (contd.)

BACKGROUND ON KKHT ROAD (CONTD..)

After 30 years, the project will be handed to the government under Build Own Operate and Transfer (BOOT) modality of Public Private Partnership (PPP) 149 houses are to be relocated for construction 6 hectares of private lands must be acquired 544 households will be partially affected The company will provide compensation to the house owners Estimated compensation cost: - Rs 1.15 billion

MAP OF KKHT ROAD

LIST OF PLACES THE HIGHWAY PASSES

Chalnakhel, Setidevi, Dakshinakali, Chhaimale VDCs Basamadi, Bhaise, Nibuwatar, Sisneri, Kulekhani and Bhimphedi VDCs Kirtipur Municipality of Kathmandu Hetauda Municipality of Makawanpur and Saibu VDC of Lalitpur

OBJECTIVES OF KKHT ROAD

Hetauda will only be one hour away from Kathmandu (58 km) by the end of 2016 thanks to KKHT road The country needs an express ways like KKHT road to bring socio-economic transformations It will not only connect people to market but also bring changes in their lifestyle It is expected to save around Rs 15 billion annually on fuel and spare parts The tunnel road will help connect western Nepal to Kathmandu

INVESTORS OF KKHT ROAD

Private: - Business Community, Construction Business Group, Non-resident Nepali Groups, Transport Business Groups, Foreign Employment Group, Cooperative and Financial Institutions Public: - Local (VDC, Municipalities) and Nepal Government. People: - Individuals, Local Communities Tunnel road has 28 commercial bank, 200,000 locals and non-resident Nepalese Constructed under Public-Private-Peoples-Partnership model

PICTURES SHOWING THE CONSTRUCTION IN

PROGRESS

ECONOMIC BENEFITS

Fuel Consumption: - Shortening of 227 km highway to 58 km tunnel road helps to reduce transport costs and fuel consumption Fare: - Shortening in distance results in reduction in fare. Time Consumption: - KKHT road saves 5 hours of precious time. As we know Time is Money it ultimately helps in saving money. Goods Mobility: - Being an agricultural country there must be easy mobility of goods. This tunnel road will act as a great boon in Nepal because of its easy mobility of goods

ECONOMIC BENEFITS (CONTD..)

Sustainable Development: - It will be of great benefits in this present time and future. Trade, marketing and various economy boosting activities can be organized in the valley by the people who are outside of the valley due to easy access of transportation Employment: - The construction will required large number of skilled and semi-skilled manpower. Local people will be directly benefited. Enhance links will provide infinite opportunities Efficiency: - Toll pricing allows for rational decisions on the part of consumers they can choose to avoid unnecessary trips and to time-shift trips to less congested times.

ECONOMIC BENEFITS (CONTD..)

Building the Right Facilities: - Without proper price signals, building expensive new urban roadways leads to continually increasing congestion. With pricing, however, the over-use of a facility is kept in check, and if congestion rises, prices rise. Greater Safety: - According to studies(Peter Samuel, 2005), the accident rate on toll roads where the flow of traffic is more is lower Fairness: - Users pay for their use in proportion to their use. Where congestion charges (or time-of-day pricing) can be implemented, they pay for the cost they impose on each other through congestion

ECONOMIC BENEFITS (CONTD..)

Further development: - Additional income-generating activities made possible by improved transportation or lower-cost access

IDYLLIC IMAGE OF THE TUNNEL ROAD TO BE

CONSTRUCTED

ROAD ACCIDENTS DUE TO POOR ROAD

NETWORK
No of road accidents 2001-2009
14000 12000 10000 8000

6000
4000 2000 0

Series 1

VEHICLE COMPOSITION THAT ARE AFFECTED

BY POOR ROAD NETWORK
Vehicle population as of 2010
Motorbike(73%) Car/Jeep(12%) Crane/Dozer/Truck(4 %) Tractor(6%) Tempo(1%) Micro/min bus(3%)

Other(1%)

CONCLUSION

From economic aspects this project is a huge boon for the nation It directly or indirectly helps the economy of the country It helps in the sustainable development of the nation Road accidents can be reduced by good and smooth highway Furthermore it aids in developing other basic facilities

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