All project documentation has been taken over by the Commission for the Investigation of Abuse of Authority (CIAA), which has accused the development of Pokhara International Airport of financial irregularities. According to a reliable source, the Authority confiscated these documents on October 29 and claimed that it was required to look into matters like the construction of the airport costing twice as much as it should have and the construction contract process being manipulated.
Numerous complaints had been filed against Pradeep Adhikari, the Director General of Nepal Civil Aviation Authority, accusing him of contributing to the cost escalation of Pokhara Airport, allowing subpar construction work, and colluding with the construction company. In response to these allegations, the CIAA conducted a raid on the Pokhara International Airport construction project on October 29, shortly after the Dasain festival. The documents were seized after several complaints were received by the commission, according to CIAA sources.
Additionally, some bank accounts belonging to employees working on the project have been frozen, although no specific information about these employees has been disclosed. A source stated that the construction of Pokhara Airport used poor-quality materials and resulted in significant losses for the state due to issues with the tender process and other factors. As a result, the CIAA has initiated an investigation into these matters. The source stated that an investigation has been launched, and the duration required to complete the investigation remains uncertain. The authority deployed a technical team and seized the documents. Binesh Munkarmi currently heads the Pokhara airport project.
The initial estimated cost of Pokhara International Airport was NPR 12 billion, but it later increased. At that time, Pradeep Adhikari was the Chief Project Officer of the airport project, and he currently serves as the Director General of Nepal Civil Aviation Authority. It is claimed that he significantly raised the project cost from NPR 12 billion. Despite the airport’s capacity to accommodate three international and eight domestic flights, it has yet to host international flights. The authority raised concerns about the airport project’s cost estimate, which had been unnaturally escalated from NPR 24 billion. The cost was funded by Exim Bank, with NPR 22 billion provided at a 2 percent interest rate and NPR 2 billion as a subsidy. The then Chief Project Officer awarded the contract to the Chinese company CAMC Engineering Company for the construction of Pokhara Airport. Sources assert that he also arranged for Nepali contractor Kshama Devi Construction to form a joint venture with CAMCE Engineering Company.
The government initially secured a concessional loan from Exim Bank at a 5 percent interest rate, but it later agreed to a 2 percent interest rate in collaboration with the Civil Aviation Authority. The loan repayment terms stipulated that the Nepal Civil Aviation Authority would pay back the 22 billion rupee loan at a 2 percent interest rate over seven years after construction completion. Following the seven-year period, the principal amount would be repaid over 13 years in 26 installments. The complaint alleges corruption in the airport’s construction, given the substantial expenditure.
It’s worth noting that the Pokhara airport was recently handed over to the government after construction commenced on July 18, 2016, following an agreement between the government and the Chinese state-owned contractor CAMCE.To fund the airport’s construction, the government signed an agreement with China’s Exim Bank in 2015, securing a loan of 1.37 billion Chinese yuan. A notable feature of this loan is the exemption from a 25 percent interest rate, amounting to 344 million 46 million 85 thousand yuan. The remaining amount incurs a 2 percent interest rate, which is relatively high compared to loans from international donor agencies, typically featuring interest rates below 1 percent. This loan encompasses a grace period of 7 years and is to be repaid over a 20-year term.
Source: Here
