Government, Germany’s Munich Airport to negotiate, finally

Government is holding a final negotiation with Germany’s Munich Airport for operational management services at the second international airport in Bhairahawa.
A government team is scheduled to hold a final round of negotiation with Munich Airport to provide operational management services at the Gautam Buddha International Airport in Bhairahawa – located in south-central Nepal – according to director general at the Civil Aviation Authority of Nepal (CAAN) Rajan Pokhrel. “The first round of negotiation with the company has been completed and the final negotiation will be held by the end of October,” he said, adding that they have invited the German company for the final round of negotiation. “The final negotiation will conclude the operation management fee and other services that the company will impart at the new airport.”
The much-talked airport – with a 3,000-metre-long and 45-metre-wide runway – is expected to be completed by December-end and conduct test flights by March-end next year.
Pokhrel, who is also a member of the government committee that will deal with the company, said that the committee has also been working on launching an incentive package to attract international airlines at the new airport.
The government will also discuss the incentive package – including monetary incentives – with the Munich Airport, though Pokharel did not elaborate on incentive package – cash or free landing parking and other services – as there are several modalities.
The cabinet – in June – gave the Tourism Ministry approval to appoint international firms for the operational readiness and airport transfer (ORAT) operation of the Gautam Buddha International Airport in Bhairahawa through a government to government (G2G) deal following a proposal from Munich Airport including other international firms.
As only finishing the construction work will not assure operational readiness, operational readiness and airport transfer (ORAT) will play a big role in helping the new facility open on time. The 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 every single new system and procedure from passenger and baggage handling to airside operations.
Construction work at Gautam Buddha International Airport began in January 2015. The CAAN awarded the Rs 6.22-billion contract to China’s Northwest Civil Aviation Airport Construction Group in November 2013. Though, the airport was initially planned to be completed in December 2017, it is delayed and pushed back the completion deadline several times.

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 

Ministry forms task force to study NAC status

The Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has formed a task force to study the present status of national flag carrier.
The task force will study Nepal Airlines Corporation (NAC) current status, determine problems affecting it, and recommend a way forward, according to a press note issued by the the minsirty here today.
The five-member task force led by former secretary Sushil Ghimire includes accounting expert Pramod Karna, management expert Dim Prakash Poudel, Captain Sudhir Shamsher Rai, and joint secretary Buddhi Sagar Lamichhane, tourism minister Yogesh Bhattarai, said.
“The task force has been established to study various aspects of NAC in order to determine problems plaguing the company and to figure out ways of improvement in its functioning,” it reads, adding that it is expected to present a proposal with tangible solutions within a period of one month along with a work-plan to implement the suggested solutions. “It is necessary to increase the business capacity of the corporation and bring immediate as well as long term improvement to internal management.”
The financial bankrupt national flag carreier has suffered due to red tape and government interventions.
“Nepal Airlines will look forward to operating regular flights to different international destinations in China and South Korea,” the minister said, adding that the Nijgadh International Airport’s foundation stone will also be laid within this fiscal year.

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.

Gautam Buddha Airport to be fully solar-powered airport

Gautam Buddha International Airport in Bhairahawa is going to be the second fully solar-powered airport in the world,
The airport that is expected to open in early 2020 – after India’s Cochin International Airport which earned the distinction in 2015 – will operate on energy from the sun. “It will be a fully solar-powered airport including from the air traffic control room to baggage claim and runway lights to ground control rooms and passenger terminals,” according to Asian Development Bank (ADB), the multilateral development partner that has funded the international airport.
The airport premises contain plenty of vacant space that will be used to set up solar panels, according to the ADB that has agreed ‘in principle’ to fund the ‘green airport’ project separately.
The airport – that covers an area of 787 bighas – aims to create a power neutral airport which means that it can produce as much energy as it consumes.
The project aims to produce 10 MW of solar power, according to the plan. “The surplus energy will be added into the national grid.”
Estimated to cost nearly $10 million, or $1 million per MW the solar panel installation will take around six months to complete. Since the airport will not have to pay any electric utility bill, its only expenses will be repair costs. Instead the airport can earn revenue by selling extra energy, according to the multilateral lender.
Though, the airport was initially estimated to be ready by December 2017, fuel and building material shortages due to the months-long Tarai banda in 2015 delayed the upgradation work. The project is expected to come into operation by early 2020, the Visit Nepal Year, when the country is expecting to host 2 million tourists.
In March, the Civil Aviation Authority of Nepal (CAAN) awarded a $4.83 million contract to install communications, navigation and surveillance and air traffic management systems at the airport to Aeronautical Radio of Thailand.
Located in southern plains of Nepal, the Gautam Buddha International Airport is the gateway to the international pilgrimage destination of Lumbini, the birthplace of Gautam Buddha.
The government has awarded civil works contract worth Rs 6.22 billion to China’s Northwest Civil Aviation Airport Construction Group in November 2013.

CAAN invites new bids for TIA expansion works

Three months after deciding to finance the project on its own, the Civil Aviation Authority of Nepal (CAAN) has invited fresh bids for the expansion works at Tribhuvan International Airport (TIA).
The TIA had – last December – invited bids for Tribhuvan International Airport Air Transport Capacity Enhancement Project to expand works under the loan of Asian Development Bank (ADB) but it was cancelled before the deadline of January 22, 2019 due to lengthy process. The CAAN, then, claimed that it will take another five months to issue the tender for the project, if it waits for the ADB's approval, though the multilateral development partner had in principle agreed to finance the project.
Now, the CAAN itself is financing the project – to complete it on time as it is already delayed by two years. The project is the fourth package and the most critical component in terms of duration and cost as it will take at least three years to complete. The project includes construction of around 450 metres of taxiway.
The Tribhuvan International Airport Air Transport Capacity Enhancement Project was separated into four packages in December 2016, after sending off the original contractor, Spanish company Constructora Sanjose, for non-performance. The Spanish company could not finish the construction also due to lack of special soil that is needed for the taxiway. The other three packages have already been completed. The completion of the fourth package was supposed to be completed by 2020. But the latest deadline has now been set for 2021.