As EXIM Bank makes soft loan move, Nepal sans EIA rules
KATHMANDU, JAN 23 -
After the China EXIM Bank sought the Environment Impact Assessment (EIA) report to move ahead with the process of sanctioning soft loans to Nepal for financing the purchase of Chinese aircraft, the Tourism Ministry has clarified that Nepal does not have any prescribed EIA rules on air service.
Although there is a need for EIA in major infrastructure projects, including hydropower, Nepal has not developed any rule on assessing the environmental impact in the aviation sector yet.
Given this context, Ranjan Krishna Aryal, joint-secretary at the Tourism Ministry, said his ministry has sent a written comment to the Finance Ministry stating that Nepal does not have an EIA provision on air service. The letter will be forwarded to the Chinese bank through the Finance Ministry’s International Cooperation Department.
Aryal said they asked the Environment Ministry for the EIA, but the ministry said Nepal does not have a prescribed EIA rule on air service as of now.
The government plans to borrow soft loans from the EXIM bank to finance four Chinese aircraft — three 19-seater Harbin Y-12e and a 58-seater MA60 turboprop — to expand the domestic fleet of the Nepal Airlines Corporation (NAC). The Chinese government has pledged an additional two aircraft — Y12e and a MA60 — in grant.
The Finance Ministry has already forwarded the financial documents of NAC to the Chinese bank as asked by the latter to conduct an internal review.
Tourism Minister Post Bahadur Bogati said as soon as all initial formalities are finalised, the loan signing date will be fixed. “We expect that NAC will receive the first delivery of the two aircraft in grant by March.”
On Nov 29, 2012, NAC signed a commercial agreement with AVIC International Holdings, a Chinese government undertaking, to procure the aircraft. On Jan 8, the Civil Aviation Authority of Nepal (CAAN) signed airworthiness agreement with the Civil Aviation Administration of China paving the way for the purchase of the aircraft.
Meanwhile, Minister Bogati said the Chinese government has informed about arranging separate grant for the aircraft. Earlier, the Chinese government had planned to include the two aircraft in its annual grant to Nepal, but the Finance Ministry refused to entertain such an idea.
On August 7, 2011, NAC had written to the government requesting the latter to purchase eight aircraft in foreign grant. And in November 2011, the ministry requested China to provide aircraft either in grant or on soft loans.
The Chinese side responded positively, expressing their readiness to provide some aircraft in grant and some under soft loans. An NAC technical team, following its inspection visit to China, reported the airplanes were fit for the Nepali skies.
Source: The Kathmandu Post
