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HomeNews'Birethanti-Muktinath Cable Car,' a project spanning 81 kilometers,received approval from the Department...

‘Birethanti-Muktinath Cable Car,’ a project spanning 81 kilometers,received approval from the Department of Industry in Nepal

Plans were announced for the ‘Birethanti-Muktinath Cable Car’ project, spanning over a length of 81 kilometers in recent investment conference held on Baisakh. The preparations include negotiations for both equity and loan agreements.The project has submitted its Environment Impact Assessment (EIA) and an updated Detailed Project Report (DPR) to the Investment Board.

The estimated cost of the project is NPR 55 billion, with 80% of the funding, equivalent to NPR 44 billion, expected to be raised through loans. The Indian engineering company KNR has been contracted for engineering procurement under the Investment and Financing (IPIF) model. The company plans to raise 20% of the funds, around NPR 11.4 billion, through shares. Of this, 10% will be offered through an Initial Public Offering (IPO) at a ratio of 10% to affected locals and 35% to the general public. The remaining 55% of shares will be institutional, with 27.5% being acquired by a Singaporean company. The project will issue an IPO at a 6% interest rate for the remaining 6% of the funds. The upcoming investment conference aims to disclose the name of the foreign partner involved in the project.

After the completion of the project, a company claims that it will contribute NPR 70 billion to Nepal’s Gross Domestic Product (GDP). The assertion is based on the anticipated boost in GDP through various channels such as increased economic opportunities (hotels, employment, local production, and markets) resulting from the project’s implementation. According to the current valuation, the GDP contribution is projected to be made through the Injection-Disbursement (IDP) method.

The company asserts that the economic impact generated by the project, including the creation of opportunities in sectors like hospitality, job market, local production, and the market, will lead to such a significant contribution to the GDP. Once the project is in full operation, the government is expected to receive an annual revenue of up to NPR 8 billion.

The analysis is based on criteria such as tourists staying for a minimum of two days, occupying a minimum of 15% of rooms, and spending a minimum of 500 in local currency on food. The anticipated increase in consumption of local products and services forms the basis of this analysis.
In the recently announced cable car fare structure, significant distinctions have been made for Nepali citizens, SAARC nations’ citizens, and foreigners. Nepali citizens will pay a flat rate of 6,000 Nepalese Rupees, while citizens from SAARC nations, like Bhutan, will also be charged 6,000 Bhutanese Ngultrum. However, foreign nationals will face a doubled fare, amounting to 200 US Dollars.

Also Read:https://whatthenepal.com/2023/09/15/embarking-on-a-journey-to-manakamana-temple-your-ultimate-guide/

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