Govt undecided over Pokhara airport tender process

KATHMANDU, OCT 31 -

The proposed regional international airport project in Pokhara has not moved forward despite the efforts of the government to implement it. A high-ranking official at the Ministry of Culture, Tourism and Civil Aviation said that top ministers were struggling to reach a decision on the much-publicized plan.  

The government has not been able to decide whether to go for a fresh tender or continue with the present process by removing legal hurdles that have stymied it. A number of government officials said that the issue could be settled only at the political level. The government needs to prepare a guideline for the Engineering Procurement and Construction (EPC) model which will smoothen the way for the project.

On Feb 9, the Civil Aviation Authority of Nepal (CAAN) invited bids to build the project under the EPC model, but controversy arose after the lowest quote it received was 85 percent higher than the government estimate. A fact-finding committee formed by the ministry to study the project's financial and technical hurdles failed to submit a report.  

As the EPC model is new to Nepal and different from the existing Public Procurement Act (PPA), it has created legal complications. "Under the existing circumstances, the government cannot go against the PPA although the bid has been called under the EPC model," the official said.

Under the PPA, a contractor is selected only after the cost estimation and project design have been completed. However, under the EPC model, a contractor is selected before they are done. "To settle the issue now, the government needs to sign a loan agreement with the Chinese government, prepare an EPC guideline and then select the project contactor," the official said.   

The government is confused how to move ahead with the airport project with locals demanding its immediate implementation and the Commission for Investigation of Abuse of Authority (CIAA) expressing concern over its legitimacy. The CIAA's scrutiny has made the bureaucracy think twice before reaching a decision saying that it is beyond its capacity to do so.

Source: The Kathmandu Post