CAAN in final negotiations with Chinese contractor

KATHMANDU:

The government is doing final preparations to sign contract to upgrade Gautam Buddha Airport of Bhairahawa into a regional international airport. The Civil Aviation Authority of Nepal (CAAN), the project implementing body, plans to sign the project contract with the Chinese contractor within a week.

CAAN is holding negotiations with the contractor — Northwest Civil Aviation Airport Construction Group of China, the lowest bidder to undertake the project. Murari Bhandari, the project manager of Gautam Buddha Airport Upgradation Project, said that contractor has already deposited 10 per cent of ‘contract amount’ as bank guarantee and is in negotiations with them. “We are hopeful of signing the project contract within a week,” he added.

The Chinese contractor had quoted Rs 5.50 billion for Gautam Buddha Airport upgradation. The first phase of upgrading the airport is expected to be completed within maximum four years. When the whole project is completed by 2030, it will have capacity to handle up to six million passengers annually.

The project is a part of Asian Development Bank (ADB)-supported South Asia Tourism Infrastructure Development Project, which aims at developing and improving tourism-related infrastructure in Bangladesh, India and Nepal.

CAAN officials said that Northwest will be able to start the project work soon after they sign the contract. Construction of a new runway, international aircraft parking apron, rehabilitation of the existing runway for conversion into parallel taxiway, exit and parallel taxiways with flexible pavements and drainage system parallel to the runway and taxiway, among others, are the scope of the project works that the contractor has to perform.

After upgradation, the planned airport with 3,000-metre runway will also be an alternative to the nation’s only international airport — Tribhuvan International Airport. Besides, it will also work as a gateway to the birthplace of Lord Buddha — Lumbini, located 20 kilometres west of the airport. It is also expected to increase the flow of tourists to Lumbini from countries like India, Myanmar, Sri Lanka, Thailand, China, Japan and South Korea.

ADB will provide $58.50 million ($42.75 in loans and $15.75 million in grants) for this project, while OPEC Fund for International Development (OFID) will provide $15 million loan. The government will chip in remaining fund required for the project as counterpart funding.

Including Northwest, a total of seven firms had submitted the bid documents after being shortlisted to present technical and financial proposals. Six other firms shortlisted were China Harbour Engineering Company, Sino Hydro Corporation, China Overseas Engineering Group Company, Isolux-Corsan of Spain, China Volant Industry and a Nepali-Spanish JV Sanjose-Kalika.

Source: THT