Pokharaelis pressure government for regional international airport

The Pokharelis today came in droves on buses, micros, minis, and bikes to gherau Singhdurbar against the delay in construction of Pokhara Regional International Airport that has been mired in legal complexities, coupled with commission and corruption controversy.

However, the Civil Aviation Authority of Nepal (CAAN) is, after China visit led by torusim secretary Yajna Prasad Gautam, planning to recall the render process to simplyfy the legal complexities.

"The CAAN has no plans to obstruct construction of the Pokhara Regional International Airport," said tourism secretary Yajna Prasad Gautam, who led a team last week to China to talk to the financier of the project, China Exim Bank.

“China Exim Bank is ready to finance the airport after the clearance of legal complexities," he said, adding that they held meeting with the vice president of Exim Bank who assured of loan. "There was some legal confusion and we are planning to recall the bidding,” the secretary said.
However some informed sources claim that the needs to amend the existing Procurement Act before calling the retender for the construction.

According to Ananda Raj Mulmi, who is leading the Pokharelis in favour of airport construction, China is interested to construct the airport under Engineering Procurement and Construction (EPC) model that means a contractor has to be selected first and it will do the final detailed project report and then the loan agreement with the Exim Bank will be signed.

But according to the current practice, the loan is signed first followed by the bidding process.

"The Chinese have constructed Srilankan Port and airports in Laos under the EPC model, which is economically beneficial for the country as there will be no tension of variation, a key headache for Nepal,” he said.

The misunderstanding on the project model made Chinese companies to bid higher, he said, adding that the Chinese companies bid was higher as they bid under EPC model.

The higher quotation made the CAAN more difficult to take decision as it would be economically unviable, a CAAN official said, adding that that it is only the implementing agency, and it’s the government that has to take the call.

Three different Chinese companies — CWT Company, Sino Hydro Corporation, and CAMC — had applied for the tender at $349 million, $337 million and $305 million, respectively.

The CAAN had announced the tender at a maximum bidding amount of $170 million and finally selected CAMC at a $305 million bid amount as it was the lowest bidder.

The CAMC will construct 3,000 metre taxiway, apron with the capacity of having six to 12 jet, and 3000 metre concrete runway, Mulmi said, adding that the concrete runway can have the life of 30 years, whereas the runway like TIA will have the life of six years only. "The cost could come down, if the government wanted less facility."

Termed as the national priority project, its work was stalled after the lowest bidder quoted $305 million that is around 80 per cent higher than the government’s earlier estimated cost of $170 million.

However, the opposition claimed that the caretaker prime minister Dr Baburam Bhattarai led government raised the cost to $287 million itself. "The UCPN-Maoist is trying to make it a milking cow at the cost of people," an opposition leader said, claiming that the huge commision has raised the cost of the project.

However, Mulmi opined that the construction work must start for the development of the country. "If there is corruption, the transparency watch dogs must keep vigil and punish the corrupt,” he said, adding that Pokhara locals will continue their protest to put pressure on the government.

On February 9, 2012, the CAAN had invited bid for the project and extended the deadline twice following the intervention by the CIAA.

The government and the Japan International Cooperation Agency conducted a detailed study for the project in 1989. It had proposed a runway 2,500m long and 50m wide, a terminal and a cargo building. Construction of the airport, which was expected to be completed in four years, was estimated to cost of $39.6 million at the time. The government had also acquired over 3,106 ropanies of land in 1975.