Money
Airport project takes another step forward
More than 80 percent of the property owners have received compensation payment for the land being taken over for the construction of a regional international airport in PokharaLal Prasad Sharma
More than 80 percent of the property owners have received compensation payment for the land being taken over for the construction of a regional international airport in Pokhara, raising hopes that the long-delayed project will henceforth move faster. The proposed site at Chinnedanda lies 3 km to the east of the existing domestic airport.
Chandra Mani Sapkota, an engineer engaged in the project, said that they had distributed Rs1.34 billion in compensation payment so far.
The project has acquired another 629 ropanis of privately and publically owned land for the airport. In 1975, the government had taken over 3,106 ropanis of land for the project. The government had moved to acquire extra land after a new study showed that the proposed airport would required more space.
“The distribution of compensation payment is 80 percent complete. We just have to distribute compensation payment for 173 ropanis,” Sapkota said. “Although the distribution of compensation payment is scheduled to end on December 24, we can extend the period.”
In the first phase, the project had acquired 80 ropanis for the approach area; and in the second phase, 336 ropanis were acquired for the airport’s terminal building. In the third phase, the project acquired 125 ropanis for the apron area.
Almost all the process for the airport’s development has been completed, but the government has not been able to move the loan agreement process ahead. China Exim Bank has agreed to provide a soft loan of $215.96 million to the government to build the airport. Locals have been complaining at the delay in signing the loan agreement, and have asked the government to complete the process as soon as possible.
“The project construction work should have started by now, but it has been delayed because the government has not signed the loan agreement with China,” said Ananda Raj Mulmi, former president of the Federation of Nepalese Chambers of Commerce and Industry. “We are planning to send a delegation to the Capital to exert pressure on the government,” he said, adding that the government had planned to start the project by November this year.
Chairperson Rabindra Adhikari of the parliamentary Development Committee said that the entire process had been completed, but the project construction work has not been able to move ahead due to delays in signing the loan agreement.
He said that a Nepali delegation was scheduled to leave for China soon to complete the deal. “We cannot delay the project any further in the name of trade embargo and fuel shortage.”
Pradip Adhikari, director of the project, said the government had been planning to complete the loan deal and start the airport construction work by the beginning of 2016.
Last November, the Finance Ministry had formally requested the bank for a soft loan. The credit request followed the Cabinet’s go-ahead on October 27, 2014 to construct the much-delayed project with Chinese funding. The airport project has been in the works for 40 years.
On May 22, the Civil Aviation Authority of Nepal (Caan) had awarded the construction contract to China CAMC Engineering. The airport will be built under the engineering procurement and construction (EPC) model. The EPC contract binds the contractor to deliver the project at the stipulated time and at the predetermined price regardless of any possible cost overruns.
Caan had invited bids for the project on February 9, 2012. As per the feasibility report, the airport will accommodate medium category jets like the Boeing 757 and the Airbus 320.