ADB preparing to pull out from GBIA project investment

Asian Development Bank (ADB) is preparing to pull out from Gautam Buddha International Airport construction project investment following the unsatisfactory progress made till now.

According to Sanjeev Gautam, Director General of Civil Aviation Authority of Nepal (CAAN), the ADB has stopped transaction from the last January stating the work was not satisfactory. “In the absence of funding, the work will not stop and it is our responsibility to give intensity to the work anyway,” he added.

The government has planned to make its own investment in the construction project even if the ADB rejects and the construction work will be continued in the aim of operating the airport in 2019.

The delay in the construction of the Gautam Buddha International Airport has also deteriorated with the runway reform plan of the only international airport, Tribhuvan International Airport in the country. The runway has been only operational throughout due to the minor maintenance being carried out daily.

Sanjeev Gautam told that ADB has repeatedly discussed about the investment. “ADB is not positive at this point,” he said. Due to the substandard work of the airport, the ADB sent a letter with the warning to the authorities to stop the loan and grant a few months ago.

The ADB’s annual review meeting has decided to visit the site on March 15th. The Chinese company is however working rapidly and efficiently.

In 6 billion 22 million 51 lakhs 20 thousand rupees “ADB has 40.5 percent loan and 18 percent of the total investment in the Gautam Buddha Construction Airport site under construction. Similarly, OPEC Fund for International Development (OFID) will invest 30.5 percent and Nepal government will invest 11 percent more

ADB has already paid an additional Rs. 500 million. In the airports, the runways, terminal buildings, rescuing and firefighting, control towers, administrative buildings, overhead tank are being carried out rapidly.

China’s North West Civil Aviation had signed a contract to complete the construction airport of  Gautam Buddha International  Airport with 6 billion 22 million 51 lakhs 20 thousand rupees from global tender till 2017, 31st December. However, due to the Madhesh movement, the construction of the airport was obstructed till July 2018.

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