NAC to pay Rs.5 billion in advance for two A330 wide bodies
January 29, 2017-KATHMANDU
Nepal Airlines Cooperation(NAC) has made an agreement with American company AAR cooperation on Friday 27 Jan 2017 to pay NRs.5biillion and 44 million advances for two A330 wide bodies. NAC had earlier notified the tender for the two wide body aircraft on first week of Ashoj. Here, AAR‘s proposal was selected out of eleven others. According to the source, NAC had decided to pay advance amount of USD $500000 each for both the aircraft. Mr. Sugaratna Kansakar, CEO of NAC and Mr. Dipak Sharma, Director of AAR Cooperation had signed the agreement papers respectively on behalf of the companies. R.B Shah, MD of NAC and Nick Price of AAR are the witnesses of the agreement.
The agreement states that AAR has to pay the advance amount back if they aren’t able deliver the aircraft to NAC. After the payment of the advance amount, two parties will have the purchase agreement. Source added that NAC will exchange the advance amount into USD through central bank of Nepal and will later transfer it at ARR’s account of Himalayan Bank within a week. NAC had separated an estimated budget of NRs. 12 billion for the purchase of the aircraft this year. NAC has also decided to apply for loan from employee provident fund to pay the additional amount for the wide bodies. NAC will apply for the loan amount of Nrs.25 trillion after signing the purchase agreement of the aircraft. Finance Ministry has already passed the agreement to take responsibility as the custodian for the loan treaty.
According to the agreement, ARR will deliver the aircraft to Kathmandu by Poush and Chaitra of 2074. The purchase agreement states NRS. 11 trillion and 35 billion to be the purchase amount of each wide body aircraft. Analyzing the price escalation between the purchase periods of the aircraft, the companies have also made an agreement to not exceed the additional escalation price more than NRS.10 billion and 90 million stated an employee involved in the purchase of the aircraft.