Nepal to sign ASA with Australia

Nepal is preparing to sign an air services agreement (ASA) with Australia.
We are preparing to propose to the Australian government for an ASA during the 40th International Civil Aviation Organisation (ICAO) Assembly that is going to be held in Montreal in Canada from September 24 to October 4, according to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA).
A Nepali team – led by tourism minister Yogesh Bhattarai – will be departing for Canada on September 20 to attend the assembly that will see a total of 139 countries. The assembly is also going to set new aviation policies for the next three years. Bhattarai will hold discussions with the representative team of the Australian government during the assembly.
Nepal will propose ASA with Australia during the bilateral discussions in the assembly.
Nepal Airlines Corporation (NAC) has been planning to fly to Australia after the national flag carrier purchased two wide-body Airbus aircraft. “But Nepal must enter into ASA with Australia before starting scheduled commercial flights,” according to the ministry that has also confirmed that Australia is trying to operate flights to other countries using Nepal as a transit country.
Since Nepal has only one international airport, the government has not been able to agree – except also due to lack of ASA – but after the completion of Gautam Buddha International Airport in Bhairahawa, Nepal could address Aussie demand.
Nepal has already signed ASAs with some 39 countries across the world. But Nepali aircraft fly to India, Dubai, Malaysia, Hong Kong, Thailand, Qatar and Japan only.

Chinese contractor seeks 640 million to continue Gautam Buddha International Airport

The Chinese contractor seeks Rs 640 million to complete the Gautam Buddha International Airport (GBIA).
As the minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai today directed project officials to complete the project within the designated deadline of December, the contractor Northwest Civil Aviation Airport Construction Company has asked the government to pay Rs 640 million to complete the airport.
Informing the project officials that the government has already requested the Asian Development Bank (ADB) – that has been supporting GBIA financially – to release payments on time to ensure the timely completion of the project, minister Bhattarai – during his visit to the project site – said that the airport completion within the December deadline is a ‘test’ for all project officials and the government itself. “In such a context, all the stakeholders involved in the project should ensure that the project does not miss the deadline this time,” he said, assuring to resolve all logical concerns of the project developer and other stakeholders.
Against the backdrop of project officials and contractors citing ineffective coordination from local governments in Bhairahawa and surrounding districts to supply river-based products to the project, Bhattarai also directed local governments to facilitate the project development. “The government will not tolerate any inconvenience created by the local governments or other groups in the project development of GBIA,” he said,
Earlier, the construction works had been halted for a few months after the local governments in the district did not allow the supply of river products to the project. The Chinese contractor had also complained about difficulties in obtaining river products for the project, which had resulted in a frequent extension in the project completion deadline.
The Northwest Civil Aviation Airport Construction Company had earlier extended the project deadline of GBIA to December. The upgradation of GBIA was started in January 2015, with a target to complete it by December 2017.
The project has been divided into two phases – ICB 01 that includes infrastructural work and ICB 02 that includes installing the equipment – according to the GBIA Project Chief Prabesh Adhikari. “The second phase – that is ICB 02 – is still to begin.”
Though, the project is said to have been completed by some 73 per cent and it was on track to complete and commence operations by December, a source close to the ministry told that minister Bhattarai has recently briefed the ADB – the financier of the project – to complete the project by March 2020. However, the government wants to complete the project before the Vist Nepal Year 2020.
The Rs 6.22-billion contract for the Gautam Buddha Airport upgradation project was awarded to China’s Northwest Civil Aviation Airport Construction Group in November 2013. The airport was slated to be ready by December 2017.
Aeronautical Radio of Thailand – which has been awarded a $4.83 million contract to install communications, navigation and surveillance and air traffic management systems – has only just started manufacturing equipment, according to the chief of the project Prabesh Adhikari.
It will take at least 5 months to manufacture and factory-test the equipment, ship it to Nepal and complete the customs clearance process, before installation of the equipment, and conduct the flight test of the installed equipment,” he said adding that another seven months will be required to complete the project, if everything goes well. “Besides, the airport needs to be certified, which will take some more days.”
In June, the government has decided to appoint Germany’s Munich Airport to provide consultancy services for the operational readiness and airport transfer (ORAT) operation of the airport. As simply completing construction work will not assure operational readiness, ORAT will play a big role in helping the new facility open on time. ORAT is the best way to ensure that every aspect of a new facility functions flawlessly, right from Day One. ORAT consultants work with airport stakeholders to formulate new processes, train staff, and test all new systems and procedures, from passenger and baggage handling to airside operations.
ORAT is the best way to ensure that every aspect of a new facility functions flawlessly, right from Day One. ORAT consultants work with airport stakeholders to formulate new processes, train staff, and test all new systems and procedures—from passenger and baggage handling to airside operations.
“The Cabinet has given approval, in principle, to appoint a foreign consultancy service to operate the airport through a government-to-government deal,” Bhattarai said, adding that the government will look after other modalities and see whether the Civil Aviation Authority of Nepal (CAAN) or others can do the work. “We will soon reach a decision on the operation modality.”
The Rs 6.22-billion contract for the Gautam Buddha International Airport upgradation project was awarded to China’s Northwest Civil Aviation Airport Construction Group in November 2013. The airport was slated to be ready by December 2017.
As of now, the 3,000m long runway and 45m wide taxiway have been prepared, according to the project 

Gautam Buddha International Airport completion deadline to be extended again

The Chinese contractor company has sought an extension to the completion deadline of Gautam Buddha International Airport (GBIA) by six months, though this is the third time that the completion deadline of GBIA is being extended.
Though, the completion deadline will be extended, the investment amount will not be increased and remain the same at Rs 7 billion, according to the GBIA Project Chief Prabesh Adhikari.
The second phase of the construction – technically called ‘ICB 02’ – is still to begin, which is why the contractor has asked for deadline extension, he said, adding that currently the project is in the final phase of ICB 01 and the work of ICB 02 will begin only after completion of this phase. “The project has been divided into two phases — ICB 01 that includes infrastructural work and ICB 02 that includes installing the equipment – by contractor Northwest Civil Aviation Airport Construction Company.”
It will take at least six months to complete the work of ICB 02,” GBIA Project Chief said, adding that the process of selecting the company to purchase equipment for communication navigation and surveillance system has already begun. “Thus, we have proposed to extend the deadline.”
Under the first phase – ICB 01 – the installation of lights and marking on the runway, taxiway and apron remain to be completed. “The project has submitted the proposal for deadline extension to the Civil Aviation Authority of Nepal some two weeks ago,” Adhikari said. “We are also awaiting a response from Asian Development Bank.”
The upgradation of GBIA was started in January 2015, targeting to complete it by December 2017. But conflict between contractors, Tarai-Madhesh movement, and also lack of construction materials after earthquake of 2015 consequently pushed the completion deadline to June 15, 2018.
GBIA is expected to play a major role in making the Visit Nepal 2020 campaign a success.

Average daily capital spending drops to Rs 41 million

Despite the two-third majority stable government, the capital spending has dropped down. Though, this is the time for paying bills of large amounts – mostly submitted by the contractors against works done in February and March – the government has spent only Rs 41 million in an average in the last 11 days, according to Financial Comptroller General Office (FCGO).
Though, the contractors have been blaming the government for withholding their payment without any valid reason, the government has only spent Rs  458 million capital expenditure in the past 11 days, which is is against the trend, as government payments would speed up in the months from May to June, during the last trimester. Of the total capital expenditure of Rs 313 billion, capital spending hovers below 40 per cent till date, while only two months for the fiscal year to end.
Not only the capital spending, the government has not been able to spend recurrent expenses, which are meant for regular salaries and adminitsrtive works, too. The government has spent Rs 724 billion, according to the FCGO.
The government has not made payments against works at Gautam Buddha International Airport, different sections of Mid-Hill Highway and other road projects bringing the development works to a halt as the contractors are cash strapped at this moment," said former president of Federation of Contractors Association of Nepal (FCAN) Jayaram Lamichhane. “The government has to immediately pay an estimated Rs 72 billion to contractors and different parties related to development projects,” he said, adding that lack of payment has been affecting their work, while banks and financial institutions have been facing further liquidity crunch and shortage of lendable cash. “It seems the Finance Minister is not aware of this gloomy picture of project management.”
While releasing mid-term report of the budget for the current fiscal year in March, Finance Minister Dr Yubaraj Khatiwada had said that he could not do much toward making timely payments to contractors though he had been receiving several complaints on the matter.

VNY 2020 soft launch in Pokhara

The government organised a soft launch of Visit Nepal Year (VNY) 2020 campaign today in Pokhara – from the Komagane Park on the bank of the Phewa lake – coinciding with Nepali New Year’s Eve.
A meeting of the main organising committee of the VNY 2020 held on April 10 had taken a decision to organise the soft launch of the campaign today in Pokhara, where chief minister of Gandaki province Prithivi Subba Gurung did soft launch of the campaign.
Addressing the programme, chief minister Gurung underscored the need of building the physical infrastructures for promoting tourism. "Tourism should be linked with production," he said, adding that the Gandaki province has declared Year 2019 as the Internal Tourist Visit Year and the Year 2020 as the 'Year for Visit by Tourists from Neighbouring Countries', to support the Visit Nepal Year 2020.
Likewise, tourism secretary Mohan Krishna Sapkota said that the Gautam Buddha International Airport would be brought into operation by June 15 this year, that construction of the Pokhara International Airport would be completed ahead of the deadline and that works on building the Nijgadh Airport were in progress.
On the occasion, campaign coordinator Suraj Vaidya, chief executive of Nepal Tourism Board (NTB) Deepak Raj Joshi, representatives from the Ministry of Culture, Tourism and Civil Aviation, along with tourism entrepreneurs and stakeholders were present.
The government has already organised Visit Nepal Year twice – in in 1998 and 2011 – targeting to bring 500,000 tourists and one million tourists, respectively. But the targets could not be met in both the years. Nepal had welcomed a total of 463,684 visitors in 1998 and 736,215 tourists via air route and land route in 2011.