Rs 45 Bn for Construction and Improvement of Nepal Airports

The board of directors of the Civil Aviation Authority of Nepal (CAAN) to prepare the National Airport Plan within the ongoing fiscal to find the exact number of airports that are required in the country, and to expand and improve the existing airports, said Sanjeev Gautam, director general of CAAN.

Rs 45 Bn for Construction and Improvement of Nepal Airports
Rs 45 Bn for Construction and Improvement of Nepal Airports

Rs 45 Bn for Construction and Improvement of Nepal Airports. For the fiscal year 2018-19, CAAN has approved budget worth Rs 45.17 billion mainly focusing on construction and improvement of various infrastructure of airports across the country.

Their main focus is on improving the physical infrastructure of Tribhuvan International Airport and other airports to reduce the problem of congestion. Rs 45 Bn for Construction and Improvement of Nepal Airports.

They also plan to complete construction of other roads around the Nijgadh International Airport and cut down trees in the project area with the help of Nepal Army.

CAAN has said that it will manage 46 percent of its total budget through loans, shares, and grants. Similarly, 33 percent will be managed through bank reserves, 13 percent from income, six percent from airport development fee and two percent will be collected from outstanding dues.

Among the old projects, the budget has allocated Rs 3.5 billion for TIA runway rehabilitation works and Rs 3 billion for a parallel taxiway on the southern part of the runway.

As per Gautam, Rs 500 million has been allocated for a new helipad that can accommodate 30 helicopters. The helipad will be built on the eastern side of TIA. CAAN has planned to convert the existing helipad at TIA into parking bays for domestic aircraft.

According to CAAN’s plans, it will spend 76 percent of the budget on capital expenses, 9 percent on current expenditure and 5 percent to pay value-added tax. Likewise, it will spend  4 percent to distribute bonus, 3 percent for other works and 3 percent to pay principal and interest of its loans.

CAAN also informed that the proposal to appoint the International Finance Corporation (IFC) as the transaction advisory service provider for Gautam Buddha International Airport Project (GBIAP)  has been sent for approval to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) and the Ministry of Finance (MoF). Read more

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