Procurement process for GBA project to start next month

KATHMANDU, JULY 17:

Gautam Buddha Airport (GBA) Upgrading Component under South Asia Tourism Infrastructure Development Project-Nepal is finally looking forward to start its procurement process by August this year.

Due to insufficient budget, the project has already been delayed by around two years and it will finally be receiving additional funds to restart the project.

“Asian Development Bank (ADB) has assured us that it will provide the additional fund of $30 million within this month and immediately after we receive it, we will start the project procurement process,” said project director Murari Bhandari.

A study, in 2007-08, had estimated a total budget of $38.15 million for the airport construction project.

However, the estimated cost exceeded the budget after the final design and construction survey were completed, which was done by a Korean company.

Changes in the project plan increased the cost of the total project and to manage the budget, the Gautam Buddha Airport project further planned to start construction in two phases — Phase I and Phase II.

According to Bhandari, the project will now receive 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 further said that the project might also need an additional fund of about $18 million which it will manage from the Civil Aviation Authority of Nepal.

The Gautam Buddha Airport Upgrading Component is a five-year long project (2010–2015) under the South Asia Tourism Infrastructure Development Project-Nepal, which has already been delayed.

According to him, now the project will be completed by 2016 and the airport will be brought into operation by early 2017.

Source: THT