CAAN to invite global firms for Nijgadh Int’l Airport development bids

A joint meeting between Ministry of Culture, Tourism and Civil Aviation Minister (MoCTCA) Minister, Finance Minister, Secretary, National Planning Commission (NPC) and investment board has discussed about the construction modality to build the infrastructure of Dhumberwana International Airport at Nijgadh, the second international airport (SIA) and national pride project of Nepal.

The government has decided to invite Letter of Interest (LOI) for the construction modality and the project is set to develop under the build, own, operate and transfer (BOOT) model. The project is set at 175 km from Kathmandu in Bara district and is set to be the biggest in South Asia.

The government has also stated that the government will itself construct the airport by setting up a company if the LOI fails to attract foreign bidders.

Tourism Minister Rabindra Adhikari stated that CAAN will prepare the LOI document and after it will be passed by Cabinet, an invitation will be called from global applicable for the bids. However, the project will still continue even with no bidders showing up added the minister.

Previously, a discussion was made to opt for a Public-Private Partnership model (PPP). BOOT (build, own, operate, transfer) is a PPP project model in which a private organization conducts a large development project under contract to a public-sector partner, such as a government agency. A BOOT project is often seen as a way to develop a large public infrastructure project with private funding.

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