October 18: The Chinese company selected for the construction of the 72-kilometer outer ring road will re-evaluate the studies conducted on the much-awaited project.

The Investment Board Nepal has already tasked China Communication Construction Company for reviewing and re-evaluating the project.

The Ministry of Urban Development has pointed out the need of reevaluating the project worth Rs 150 billion as new settlements have come into existence in the route of the outer ring road. With this, the issue of compensating the land owners as per the existing land price has surfaced, according to the ministry.

Earlier, it was estimated that the government had to provide Rs 56 million in compensation to the families likely to be displaced by the project. But the cost is likely to increase since the project was first announced 14 years ago during the budget announcement in FY 2061/62 BS.

The ministry has concluded that it is not possible to develop the project in the current context using the design, cost and other estimates made years ago.

The project chief Dilip Bhandari pointed out to the fact that rapid urbanization of the Kathmandu valley has changed the landscape of the outer ring road’s proposed route. He said that the failure to stop construction along the route has posed new problems for the project.

The concept of outer ring road was developed by the government in the early 90s by anticipating the future traffic demands of the valley.

A report prepared by the Ministry of Urban Development states that the Japanese International Cooperation Agency had conducted a study on Kathmandu Valley Urban Road Development in this regard in 1993 upon the request from the Government of Nepal.

The outer ring road is expected to integrate the three existing city centers of the Kathmandu valley, according to the report.

The government subsequently formed strategies for urban transport development  with the view of establishing well balanced road transport system for the capital of nation.

According to the report, the outer ring road will play a crucial role in homogeneous development of the valley as well as development of satellite towns. It will also link the traditional settlements in the periphery of the capital and connect them with radial roads.

The main objective of the outer ring road is to control urban sprawl. The report further says that the outer ring road shall be a catalyst for development of greater Kathmandu valley .