Feasibility Study of Mass Rapid Transit (Underground and Elevated Railway) System in Kathmandu Valley

Donor: Government of Nepal.

Kathmandu, the Capital City of Nepal, and its surrounding sub-metropolitan area covering 600 sq.km, has population of around four million and is situated as the center of political and economic activities of the country. The Kathmandu valley also has typical urban problems such as traffic congestion, environmental deterioration, and soaring of land prices, etc. The number of vehicles is rapidly increasing in Nepal and Kathmandu in particular. The average annual rate of increase of vehicles is about 17%.

The MRT System consists of underground and/or elevated railways and run along the existing ringroad and 8 other radial lines connecting selected places around the ringroad and Ratnapark/Newroad area (city center).

The objective of this Feasibility Study is to provide sufficient information to the Railway Construction Project, Ministry of Physical Planning and Works for making decision to implement metro system in the Kathmandu Valley. The Feasibility Study comprised of a detailed analysis on existing structures, engineering requirements, demand for usage of the railway lines, economic and financial analysis, resettlement and land use and environmental planning issues. Prepare and carry out consultations with all concerned stakeholders to be involved in the project in order to ensure to meet the objectives of the study. Identify any preconstruction requirements such as the EIA, Resettlement issues, etc. to streamline the project, Assess the project’s viability on environmental, social and economic criteria including an economic cost-benefit evaluation.

Examine all available documents: traffic data, transport studies, topographical and geotechnical maps, cadastral information, water and electricity network data and other utility information, and any other essential information needed to support the project. If this information is founds to be insufficient, the Consultants should carry out the necessary surveys to complete the required data.

Projections and analysis of the estimated number of future passengers using the Metro system through each selected routes. Metro passenger growth forecasts shall be based upon the best available information and shall take into account the recent economic performance and future growth of the Kathmandu Valley.

A detailed investigation of selected routes, preliminary design, engineering layouts, plans and cost estimate of the Works to be carried out under the Metro system.

Route and location: study and evaluate the selected routes, its connections with the metro system, buses and other public transport facilities. Connections with depot and other stations along the route shall also be considered. Relocation of any item in the structure must be contemplated if necessary.

Specify construction methods taking into account environmental impacts during construction, trying to identify and minimize overall effects on the community. The Consultants developed and set up criteria for plans that will mitigate traffic congestion and environmental and social impacts during the construction of the Project.

Carry out scoping of Environmental Impact Assessment (EIA) for the project including an assessment against requirements in the prevailing Environmental Act. Carry out a Resettlement Action Plan (RAP): including land and property to be acquired and the relocation options for the displaced. Land and/or property compensation estimates and payment options shall be part of the study.

Estimate fare revenue and other potential direct sources of revenue to the operator of the system, identify opportunities for revenue generation from property development and other sources, and prepare a risk anagement strategy to facilitate achievement of the revenue targets.

Economic and Financial Feasibility:

Carry out economic and financial analyses including construction and operating life of the project to generate the cost stream; Both cost and benefit streams shall be discounted and converted into present values using the discount rate specified by GoN and evaluate and compare alternatives are economic internal rate of return (EIRR), benefit-cost ratio (B/C), net present value (NPV) and incremental NPV and Sensitivity analyses.

Present project implementation plans, with design organization and a schedule for the construction of the line. Prepare a risk analysis for project implementation and design a strategy to manage design and construction risks. In addition, the Consultant is required to provide recommendation on the structure of the organization set up and human resources required for the implementation of the project.