May 17: The government is preparing to adopt the Engineering, Procurement and Construction (EPC) model in construction of large infrastructure projects like tunnels, flyovers and technically difficult bridges in the country. 

The government has introduced and implemented 'Directive on Procurement through EPC-2021' in this regard. The directive allows purchase of contracts through the EPC model for the construction of tunnels, flyovers, bridges as well as airports, stadiums, auditoriums, waste management projects and processing centers. The Public Procurement Monitoring Office (PPMO) informed that the directive was approved by the cabinet on May 2.

It is said that this model can be applied in the construction of roads and projects related to irrigation, drinking water, hydropower etc. EPC is a model of carrying out engineering, procurement and construction works including design and maintenance of construction, by the selected company itself.  

So far, EPC model has been implemented only by the Nepal Electricity Authority but it has not been used in the construction of infrastructure projects like roads and bridges. However, On May 14, the Nepalese Army (NA) signed a contract to build tunnels and bridges along the Kathmandu-Terai Fast Track in the same model.

In order to promote infrastructure development, plans have been announced to prioritize construction of road, tunnels, expressways and special bridges. But the country lacks skilled technical manpower, and required equipment. Siddhababa tunnel project was stalled due to lack of skilled manpower when the EPC model was not in practice. 

Sushil Dhakal, spokesperson of the PPMO, said that the directive has been implemented to maintain uniformity in procurement done through EPC. The government bodies can purchase the contracts concerning large and complex projects. It covers issues concerning the basis of contract qualification, evaluation and selection, drawing and design, quality control and quality assurance, payment arrangements, warranty, maintenance and operation. 

The Department of Roads (DoR) is now preparing to issue tenders for the Siddhababa Tunnel Project based on the same model. The Ministry of Finance had allocated Rs 10.15 billion for the construction of the project.

The department had sent the document based on EPC model which didn't get approval from PPMO for more than one and half a year.

Director General of the Department Arjun Jung Thapa said that the door has been opened to build Siddhababa Tunnel in the same model. He informed that preparations are on to invite tenders as part of the process to initiate the construction of the tunnel. Thapa said that the procurement process for the construction of Siddhababa tunnel will be expedited based on the EPC model used by the NA. "Since the directives and the model are introduced, we can now use this model for construction projects with the required parameters," Thapa said.

According to the infrastructure experts this is a refined form of design and build concept. This model has been very effective in the construction of bridges in the country. In the design and build model, the concerned body has to approve the design made by the construction company, whereas in EPC, the contract company itself designs and prepares engineering works.