Govt Committee Proposes Integration of TIA and Nijgadh Airports Under BOOT Model to Develop Nijgadh Airport

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Govt Committee Proposes Integration of TIA and Nijgadh Airports Under BOOT Model to Develop Nijgadh Airport

The government committee, led by former secretary Shankar Prasad Adhikari, has recommended integrating Tribhuvan International Airport and the proposed Nijgadh International Airport into a single project under the Build-Own-Operate-Transfer (BOOT) model. Highlighting the overcapacity issue at Tribhuvan International Airport, the committee proposed merging it with the proposed Nijgadh Airport to leverage private investment in Nijgadh's construction. Consolidating both airports into one project, the committee believes, will enhance the financing potential for Nijgadh International Airport, thereby attracting private sector participation. The report underscores the importance of appointing a single manager to oversee both airports strategically. This unified approach, the committee argues, would facilitate the realization of the Nijgadh Airport project. To ensure capable investment, the committee outlined strict criteria: investors must possess a decade of experience in operating international airports, engage in at least one international airport project under a public-private partnership, and manage a minimum of ten million international passengers annually for three consecutive years. To operationalize these recommendations, the committee proposed amending the Nepal Civil Aviation Act 2063 to hire international consultants proficient in airport PPPs. Additionally, transferring airport construction and operations to public-private partnerships necessitates amendments to the Policy on Registration, Use, and Lease of Government Land, 2079.

Given the limitations in expanding Tribhuvan Airport's capacity, the committee advocates for its integration with the proposed Nijgadh Airport. The report asserts Nijgadh Airport's significance in terms of technological advancement and efficient passenger management, deeming it an indispensable asset for the country's aviation sector development. It anticipates Nijgadh Airport handling up to 60 million passengers annually at full capacity. Furthermore, the committee recommends adopting a similar PPP model for the Bhairahawa and Pokhara International Airports, urging prospective management companies to meet the same stringent qualifications set for Nijgadh Airport. The committee submitted its comprehensive 39-page report to Tourism and Civil Aviation Minister Hit Bahadur Tamang and Secretary Dipendra Kafle on April 21. 

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