PM assures swift conclusion of bidding process

Tue, Aug 14, 2012 12:00 AM on Others, Others,

POKHARA, AUG 14 -

Prime Minister Baburam Bhattarai on Monday assured that there would not be any hindrance to the construction of the much-talked Regional International Airport in Pokhara amid uncertainty over execution of the project due to higher cost.

The project has been mirred in controversy ever since it came to light that the lowest bid was 70 percent higher than the government’s estimated cost of around $ 180 million (Rs 16 billion).

The lowest bidder, a Chinese company, has quoted a price tag of $ 305 million (Rs 27 billion).

However, Bhattarai made it clear that he has already directed the minister and secretary concerned to conclude the bidding process soon. Receiving a memorandum submitted by Pokhara Regional International Airport Construction Stakeholder Committee, the Prime Minster said that various forces were conspiring to disrupt the construction of the project. “Attempts have been made not to allow the construction of the project with one or another pretention,” he said.

With the committee already announcing a protest against alleged attempt to disrupt the construction of the project, Bhattarai said that the government has understood the grievance of the people in Pokhara and asked not to stage the protest.

The Stakeholder Committee delegation, led by coordinator of the committee Krishna Mohan Shrestha, had reached to Phewa Prince Hotel where Bhattarai and UCPN(Maoist) Chairman Puspa Kamal Dahal were staying, to submit the memorandum.

Dahal also said that if the project failed to go ahead it will send negative message among the foreign investors.

The committee has also expressed reservation over the fact-finding committee formed two weeks ago under the joint secretary of Ministry of Tourism and Civil Aviation Ranjan Krishna Aryal. It argues that the move was an attempt to dillydally the project given that the bid was called as per the government’s decision to accept Engineering Procurement and Construction (EPC) model. Under this model, only limited competition is allowed among contractors from aid providing nation.

“The government should construct the airport in a transparent manner,” said Anand Raj Mulmi, former president of Federation of Nepalese Chambers of Commerce and Industry.

The committee’s memorandum also includes protest programme to press the government to act promptly over the issue. They are scheduled to submit a memorandum to the Civil Aviation Authority of Nepal, ask travel agencies not to sell air tickets for a day and go for mass assembly if the construction process is delayed.

The project has been in limbo since 1975 when the government acquired more than 3,106 ropanis of land. And in 1989, the government and the Japan International Cooperation Agency conducted a detailed project study, proposing a runway 2,500 m long and 50 m wide, a terminal and a cargo building. Construction of the airport, which was expected to be completed in four years, was estimated to cost of $ 39.6 million at the time. A new estimate puts the project cost at more than US$ 180 million.


Source: The Kathmandu Post