High priority to regional international airport in Pokhara:FinMin

Sun, Dec 29, 2013 12:00 AM on Others, Others,

POKHARA, DEC 29 -

Finance Minister Shankar Prasad Koirala on Saturday said the government has accorded high priority to the development of a regional international airport in Pokhara.

Inaugurating the 15th Street Festival, he said the government has earmarked Rs 1 billion for additional land acquisition for the proposed airport . A fresh study has shown an additional 500 ropanies land is required for the project. The project has been in limbo since 1975 when the government acquired more than 3,106 ropanies of land.

Amid doubts over the project development due to cost issues, Minister Koirala said the project has been stuck due to some technical problem. “We are discussing the issue with the Chinese government,” he said, adding progress will be made soon.

The government plans to borrow $145 million in soft loans from the China EXIM Bank for the project. On February 9, 2012, the Civil Aviation Authority of Nepal (CAAN) had invited bids to build the airport under the Engineering Procurement and Construction model.

However, the project suffered a roadblock since July 2012 after the lowest bidder CAMC quoted $305 million — 85 percent higher than the government’s estimation. The Cabinet then gave its go-ahead to the project after the Chinese company CAMC agreed to develop the project at the government-estimated cost of $166 million or stay within CAAN’s bill of quantities. Subsequently, a three-member independent committee was formed to study the financial part. However, sources said the committee also recommended the same amount.

On the occasion, Rabindra Adhikari, newly-elected Constituent Assembly member from Kaski, said it’s high time Pokhara had a regional international airport . “We are committed to developing the airport at any cost,” he said.

Meanwhile, Minister Koirala said Phewa Lake is the country’s asset and it needs to be conserved. “A long-term study and a master plan are needed to develop and conserve the lake for future generations,” he said.

Saying the government has succeeded in conducting the Constituent Assembly elections, Koirala said it is excited to hand over the responsibility to a new government. “We expect the new government will head the country towards economic prosperity,” he said.

Surya Bhujel, chairman of Pokhara Tourism Council, also underscored urgent need for an international airport for the development of tourism in Pokhara. Bhujel urged the government to take necessary steps to end the ongoing transport syndicate in Mustang and Annapurna circuit.

Pramod Jaiswal, vice president of the Restaurant and Bar Association Nepal (REBAN), the organiser of the event, said the street festival has contributed significantly to boost Pokhara’s tourism.

More than 200 restaurants are serving visitors on around 3-km stretch of the Pokhara streets. The Lake Side area has been decorated with lights, and a number hotels and restaurants are offering discounts on their menu.

(Source: The Kathmandu Post)