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Caan all set to resume works for air transport capacity enhancement
Civil Aviation Authority of Nepal (Caan) is all set to resume upgradation works at Tribhuvan International Airport (TIA) that were stalled after the ouster of Spanish contractor Constructora Sanjose last December.Sangam Prasain
Civil Aviation Authority of Nepal (Caan) is all set to resume upgradation works at Tribhuvan International Airport (TIA) that were stalled after the ouster of Spanish contractor Constructora Sanjose last December.
Caan plans to invite fresh global bids next week to resume the $92-million TIA improvement project. “We are all prepared to invite the bids next week, or by Feb 15,” said Caan Spokesperson Birendra Prasad Shrestha.
The project will be broken up into four packages—runway and taxiway extension, terminal building, power supply and soil filling works. “The project will be divided into different packages so that even if one component is halted, it will not affect others,” he said.
“Among the four, bids for soil filling works will not be invited immediately. It will be delayed slightly,” said Shrestha, adding Caan plans to award the soil filling works contract to a local firm.
Out of 2 million cubic meters of soil required for the expansion works, the project has been able to supply only 600,000 cubic meters.
Shrestha said the bidders will be given 45 days to submit documents.
“It will take at least four months to appoint the contractor or formally begin the ground works if things go as planned,” he said.
The project’s completion deadline was extended to 2015 and then to 2016, but after even that looked unachievable, the date was moved forward to 2018.
On December 10 last year, Caan, the executing agency for the Asian Development Bank (ADB) funded project, officially issued a “notice of termination” to Constructora Sanjose for non-performance.
The Spanish company had been given two deadline extensions and a number of “notice to correct letters”, but it showed no interest in moving the project forward. Subsequently, a Caan board meeting recommended the agreement with Sanjose be cancelled as the project had achieved only 17 percent physical progress.
ADB has provided $80 million in loan and grant and the government has put up $12 million for the scheme which has since been renamed as air transport capacity enhancement project.
The air transport capacity enhancement project, which has been declared problematic, has the longest duration contract. Originally, the project was expected to be implemented in about 67 months following its launching in December 2010.
After the completion of the project, TIA will be able to handle more than 5.85 million passengers annually and accommodate bigger aircraft.