The Ministry of Physical Planning, Infrastructure and Transport (MoPIT) on 9 Dec. 2013 instructed officials of the concerned districts covered by the project to assess the lease cost.

Tulasi Prasad Sitaula, secretary at MoPIT, said the ministry has already sent letters to the Compensation Determination Committee of Kathmandu, Makawanpur and Lalitpur districts to ascertain the lease cost to be borne by the project developer.

Chief district officers of concerned districts are heading the committees.

The NPBCL has proposed to take about 57 hectares of public land on lease. The land sought by the NPBCL includes government forests, community forests and other barren lands in Kirtipur Municipality of Kathmandu, Saibu VDC (Village Development Committee) of Lalitpur and Hetauda Municipality of Makwanpur.

Besides public land, the company is also planning to acquire private land in a dozen VDCs of the three districts that fall within right-of-way of the proposed highway.

Sitaula said the decision was taken after the NPBCL approached the government demanding that the government lease public land required for the project to it in line with the deal that it has signed with the government.

As per the agreement, the highway can use the leased public land for 30 years before handing over the project to the government under Build Own Operate and Transfer (BOOT) modality of Public Private Partnership (PPP).

The company recently submitted its draft report of Environmental Impact Assessment (EIA) to MoPIT. The MoPIT will now forward it to the Ministry of Science, Technology and Environment (MoSTE) for approval.

The developer will get permission to start project works once a high-level technical committee at MoSTE is satisfied with the company´s plans of action to mitigate socio-economic and environmental impacts of development works in the affected area.

As per the draft EIA report, some 149 houses need to be relocated and about six hectares of private land should be acquired. Similarly, some 544 households on both sides of the right-of-way will be partially affected.

"The company itself will purchase private land and provide compensation to house owners. The government will play the role of a facilitator in land acquisition and compensation fixation and distribution process," added Sitaula.

Lal Krishna KC, vice-chairman of the company, said that the firm has estimated compensation amount and least cost at Rs 1.15 billion.
Committees led by local development officers of concerned districts will fix compensation for landowners by valuating land and properties lost in the course of project implementation.

The highway passes through Chalnakhel, Setidevi, Dakshinakali, Chhaimale VDCs and Kirtipur municipality of Kathmandu; Basamadi, Bhaise, Nibuwatar, Sisneri, Kulekhani and Bhimphedi VDCs and Hetauda Municipality of Makwanpur; and Saibu VDC of Lalitpur.