KMMTTP project hits roadblock as contractor files bankruptcy

The much-hyped Kaladan Multi Modal Transit Transport Project (KMMTTP) which was aimed at boosting up India's Act East policy is in the doldrums, reports ETV Bharat's Gautam Debroy

New Delhi: The much-hyped Kaladan Multi Modal Transit Transport Project (KMMTTP) which was aimed at boosting up India's 'Act East' policy is in the doldrums. A senior government official in the Ministry of Development of North Eastern Region (DoNER) told ETV Bharat on Saturday that the road component of the mega project involving neighbouring Myanmar is facing several critical issues. One of the joint venture (JV) partners of the appointed contractor (M/S C&C Constructions) has gone bankrupt and insolvency proceedings have been initiated in National Law Tribunal, the official said.

The KMMTTP is a strategic connectivity project to connect the eastern ports of India with Myanmar by developing a port at Sittwe on the western coast of Myanmar and linking the Sittwe port with a river channel and by road to Mizoram. The project has two components including waterways and roadways. "At present, there are several challenges for the road component of the project as the work progress is very minimal," the official said. The prolonged monsoon season in Myanmar, completely greenfield nature of the project and the difficult geographical terrain along the project site in Myanmar are also posing serious challenges for the project, the official said.

"Due to Covid-19 pandemic, the Government of Myanmar has implemented strict restrictions on the movement of personnel and machines which has affected the access and pace of the work," the official added. "The present physical progress of the road component of KMMTT is 4 percent as on January 31, 2022. Due to slow progress and bankruptcy of lead partner of JV contractor for road component, show cause notice has been issued to the agency for termination," the official informed.

Significantly, Vice President Venkaiah Naidu during his recent trip to Mizoram has said that the state will soon serve as the "all important gateway" of South East Asian economies and become a leader in the development of the North Eastern region through the Kaladan project. The construction work of the waterways component of the project includes the construction of a Port and Inland Water Transport (IWT) terminal at Sittwe, dredging of the access channel and river channel at the port, development of 158 km long navigational channel along the Kaladan river from Sittwe to Paletwa as well as the construction of an IWT terminal at Paletwa.

"A port operator has been appointed jointly by the government of India and Myanmar in December 2019. The port operator has commenced its operation from February 2020. Efforts and being made to operationalize the port and IWT terminal. Tender/contract for works required for operationalization of port, has been awarded in November 2021 and work has started," the official said.

Governments of India and Myanmar in 2008 entered into a framework agreement to facilitate the implementation of the mega project. Originally, the project was supposed to be completed by 2014, which was later extended up to March 2023. The revised project cost approved by the central government was is Rs 2904.04 crore (Rs 982.99 crore for waterways and Rs 1921.05 crore for road component). Funds released for the Kaldan road component till January 31 this year are approximately Rs 63 crore. On the other hand, fund spend on developing the Kaladan waterways component are approximately Rs 566 crore.