Sunday, February 27, 2011

Korean company delays feasibility report

KATHMANDU, Feb 27: Construction of the much-touted second international airport has become uncertain after the Korean company hired to study feasibility of the project delayed submission of its report, citing differences with the Ministry of Tourism and Civil Aviation (MoTCA).

According to a highly placed source at the ministry, the problem surfaced mainly after Landmark Worldwide Company (LMW) sought the ministry´s commitment to award it the airport construction project before it submits the feasibility report.

MoTCA, on the other hand, has maintained that the terms set by LMW do not go with an earlier agreement.

The company has not submitted feasibility report of the proposed international airport at Nijgadh in Bara district though it was supposed to submit it by the end of January, 2011.

The stalemate has rendered the early execution of the project impossible. “This will surely delay the implementation of the project,” said an official at MoTCA. The government has been planning to bring the airport into operation by 2015.

“We have been asking the company to submit the final report since last month. But it has delayed submission of the report even as it has already been finalized,” said MoTCA Spokesperson Laxman Bhattarai.

Senior officials at the ministry disclosed that the company has been seeking the ministry´s commitment to award it the construction project before it submits the report. “Making such a commitment is impossible as the decision to award the contract needs to be endorsed by the cabinet,” he told Republica.

Spokesperson Bhattarai said, “We have simply said we will give priority to the company if it joined the race to bag the tender.”

The LMW was selected for conducting feasibility study of the proposed airport through a formal bidding process. The company started the study from April, promising to finalize the report within 10 months.

The company had been timely forwarding the preliminary findings of the study to the ministry till recently. Its preliminary report has identified investment requirement of US$ 600 million in the first phase of construction.

In its preliminary reports, the company has said the proposed airport can be brought into operation by 2015 with a single-runaway. After completion of the first phase of construction, the airport would be able to handle up to 15 million passengers annually.

Among others, the report highlights the importance of the construction of Kathmandu-Tarai fast track for the successful operation of the airport.

“Hence, it has emphasized that the construction of the fast track should be completed at least six months before the airport comes into operation,” said the source.

http://www.myrepublica.com/portal/index.php?action=news_details&news_id=28669

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