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Despite criticism, Nijgadh International Airport once again gets ‘symbolic funds’ in new budget

A blueprint of the Nijgadh International Airport
A blueprint of the Nijgadh International Airport

Kathmandu, June 12

The government has allocated funds for the controversial Nijgadh International Airport project since the fiscal year 2014/15. Despite being included in every budget, the government has encountered difficulties in showing substantial progress in the implementation of the project.

Environmental concerns prompted the suspension of the project, leading to a thorough review by the Supreme Court. However, recent developments have emerged, clearing the path for the project to resume and presenting fresh opportunities for its progress.

The project is getting a budget in the fiscal year 2023/24 too. But, unlike other years, the funds are nominal. The budget states the funds are intended for preliminary preparations such as conducting an environmental impact assessment, facilitating settlement relocation, providing compensation, ensuring land protection, and determining the investment approach.

The government has allocated a budget of Rs 350 million for the project. Last year (2022/23) the budget allocated for the project was Rs 560 million but it only spent around Rs 42 million.  In the fiscal year 2021/22, the project had only spent Rs 3.6 million.

The estimated budget for the first phase of the Nijgadh International Airport Project exceeds Rs 100 billion. However, it appears that the government is sending a symbolic message by allocating a few million rupees to the project each year, giving the impression that the project is still active without substantial progress.

Despite the government’s intention to progress the project using its own resources, no significant initiative has been undertaken thus far.

The government wants to push the Nijgadh International Airport project as it feels there is a need for an alternative to the Tribhuvan International Airport which is running at full capacity.

The Civil Aviation Authority of Nepal (CAAN) has time and again stated that the recently completed airports in Bhairahawa and Pokhara are not viable alternatives to Tribhuvan International Airport, citing concerns related to their technical and economic feasibility.

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