Pokhara Regional International Airport bid: Quotations higher than government estimation
KATHMANDU, JUL 18 -
Three Chinese firms, who are in the race for the Pokhara regional international airport contract, have quoted the project cost much higher than what the government had estimated.
According to a highly-placed source at the Civil Aviation Authority of Nepal (CAAN), China CAMC Engineering Co has quoted the lowest—$305.13 million—among the three firms. The financial proposals were opened on Monday after technical evaluation. Two other Chinese firms—Sinohydro Corporation and China International Water and Electric Corporation—quoted $337.82 million and $349.28 million, respectively, according to the source.
CAAN had estimated the project cost at around $180 million, and the government planned to use soft loans of around $145 million from the Export-Import Bank of China (Exim Bank) to fund the project.
A six-member evaluation committee led by CAAN Engineering Department chief Mukunda Bhandari is scheduled to submit the report to the CAAN board on Wednesday. The CAAN board will then conduct a post-qualification evaluation of the lowest bidder and further negotiate the cost amount before recommending the firm to the Ministry of Tourism, Culture and Civil Aviation. The ministry will then forward the name of the selected company to the Finance Ministry, which will start loan negotiations with Exim Bank.
Ten Chinese firms had obtained bid documents for the project under the Engineering Procurement and Construction model on February 9. However, only three of them submitted the documents to CAAN although the deadline was extended twice.
A study carried out by the government and Japan International Cooperation Agency in 1989 had proposed a runway—2,500-metre long and 50-metre wide -- a terminal and a cargo building. But now, the airport will have around 3,000-metre-long runway, an apron, international and domestic terminal buildings, an air traffic control tower, a cargo terminal building and an airport hangar.
Source: The Kathmandu Post
