GBA to receive additional fund this week

KATHMANDU:

The Asian Development Bank (ADB) is finally going to approve additional funds for the Gautam Buddha Airport (GBA) Upgradation project this week.

“The upgradation project of Gautam Buddha Airport might get a new lease of life this week,” said project director of the Gautam Buddha Airport Upgrading Component under South Asia Tourism Infrastructure Development Project-Nepal Murari Bhandari.

At present, the ADB mission is working in coordination with the Finance Ministry for the final approval of the additional budget. “We hope that both ADB and the government will come up with a final decision for the GBA project this week,” said Bhandari.

“We are looking forward to the project to resume again after the government and the mission draw a conclusion regarding the additional budget and the required procedures,” he said.

The project has been delayed by around two years due to insufficient budget. ADB has already assured to provide the additional fund of $30 million within August.

According to the ministry, the project will now have a total loan of $68 million from ADB at an interest rate of eight per cent per annum. ADB has also provided a grace period of 15 years, he said.

Bhandari added that the project might also need an additional fund of around $18 million, which it will manage from the Civil Aviation Authority of Nepal.

A study, in 2007-08, had estimated a total budget of $38.15 million to construct the airport. However, the estimated cost exceeded the budget after a Korean company completed the final design and construction survey.

Source: THT