Regional international airport in pokhara: High-level team to visit Beijing this week: PM
POKHARA, SEP 18 -
Prime Minister Baburam Bhattarai on Monday said a high-level Nepali delegation will visit Beijing this week to resolve complications in the proposed regional international airport in Pokhara.
Work on the project has stalled since the revelation that the lowest bidder quoted 85.5 percent higher than the government’s estimated cost.
Bhattarai said the team will be mandated to sign a project agreement in China after resolving all technical and legal complications. “The construction of the airport will begin under a new process,” the Prime Minister said. “The national priority project will be constructed at any cost.”
He said due to some procedural complexities, the government was unable to take a concrete decision on the project. “We held a discussion with the Chinese ambassador on Sunday on the issue,” he said.
The Tourism Ministry and the Civil Aviation Authority of Nepal (CAAN) were in a dilemma after the lowest bidder, a Chinese company, quoted $305 million for the project, against the government estimated $170- $180 million.
Bhattarai said the confusion on the airport model and bidding system complicated things. Under the Public Procurement Act, procurement is done after signing a contract, but under the Engineering Procurement and Construction (EPC) model, contractor is selected first and rest of the work is done latter. Contradiction between the two Acts created the confusion.
Similarly, a misunderstanding on the project model prompted Chinese companies to bid high, he said. The construction of airport was planned under the 4D model, but the Chinese companies understood it as 4E model.
Project cost for a 4D model airport is estimated to be around $169 million, while the cost for a 4E model airport stands at around $287 million. “Now both sides are clear about the airport model,” said the Prime Minister.
A 4D model airport can accommodate Boeing 757 and Airbus 320, while a 4E model can also accommodate wide-body aircraft like Boeing 777.
Bhattarai said the team will also hold a discussion with the EXIM Bank of China. The government plans to burrow loans from the Bank to develop the project. The bank has pledged soft loans for the project.
Pokhara locals have been staging a relay hunger strike for several weeks to pressure the government for an immediate decision. PM Bhattarai also urged the agitating groups to withdraw their protests.
On February 9, 2012, CAAN had invited bid for the execution of the project under the EPC model, and extended the deadline twice following the intervention by the Commission for Investigation of Abuse of Authority. The government was scheduled to sign a loan agreement with the Exim Bank of China on August 20 after selecting a contractor. However, the project ran into controversy over its spiralling cost.
The government and the Japan International Cooperation Agency conducted a detailed study for the project in 1989. It had proposed a runway 2,500m long and 50m 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.
Source: The Kathmandu Post
