TIA enhancement project at a phase of dismissal

TIA enhancement project at a phase of dismissal

September 11, 2016 – Kathmandu

As long run of enhancement project of Tribhuvan International Airport conducted by a Spanish Construction Company shows only a pitiful progression, Tourism Ministry of Nepal has come to a conclusion to break the agreement of construction with the company if it fails to justify the delay occurred. The Ministry will proceed forward to withdraw the agreement made for the capacity enhancement of the airport within a month.

Tourism Minister Mr. Jeeban Bahadur Shahi told that the ministry could dismiss the agreement with no hesitation if the construction company cannot clarify the reasons of delay for which they have been pointing the Government for not providing the appropriate environment of construction. The Spanish Construction Company namely San Jose Constructors has been claiming compensation in return from the Government pointing the fault of Government for the delay.

Only 16 percent of the construction has been accomplished in 3 years interval after the construction company was handed over the responsibility. And the job has not been done in a satisfactory level because of which the agreement needs to be dismissed according to the Ministry spokesperson. The ministry also has instructed the authorities to propose a new agreement with a month or two. Mr. Shahi looking forward to run the enhancement project at any cost has already instructed the responsible to initialize the new process and new tender document.

San Jose Construction Company has claimed 310 Million Nepali Rupees compensation amount showing the reason that it couldn’t initialize the construction process within the time promised by the ministry which ultimately led into the ill progression and below satisfactory level of the portion accomplished. Secretary of Ministry Mr. Prem Kumar Rai also added that the construction company should be claimed the compensation by the Government after the dismissal of the contract. They are processing the documentation for this purpose already according to him. However, new agreement with new company will be hard to be achieved within two months of time according to him. As the consequence the project seems to be lagging further behind.

The Spanish Construction Company started the project since January 2013. Since then until March 2016, it has only accomplished 16 percent of the total work. The renewal of the project cannot be done in the present scenario whilst the whole contract is in phase of dismissal. The company has still not started working for runway expansion showing the deficiency of soil needed.

Aerial View of Runway of TIA-Aviation Nepal
Aerial View of Runway of TIA

The company has taken the responsibility to expand 300 meters of the runway towards the side of Koteshwor as well as expansion of the International parking apron and increment in the number of conveyor belts to deliver the luggage to passengers. The construction company was handed over the contract at a price of 60 Million US Dollars in aid of Asian Development Bank (ADB) by the Nepal Government.

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