Govt finally moves to fully operationalize underperforming GBIA and PRIA

Govt forms a task force to suggest measures to generate notable revenues from these two international airports

KATHMANDU, Aug 4: The government has expressed its concern to bring into full operation two international airports that have failed to promote their businesses even after two years of coming into operation.

The Gautam Buddha International Airport (GBIA) in Bhairahawa was ready for operation on April 21, 2022. Similarly, the Pokhara Regional International Airport (PRIA) was operationalized in December 2023.

The PRIA was built with a loan assistance of Rs 22 billion from the Exim Bank of China. The Asian Development Bank contributed US $37 million in concessional loans and grants while the OPEC Fund for International Development contributed US $11 million in loans to build the GBIA.    

Despite creating a huge debt burden to the country, these international airports have failed to generate notable revenue to the government over the period. Showing its concern over the dismal performance of these infrastructures, the government has formed a task force asking it to bring effective operation plans of these two airports.

The task force is led by the Secretary of the Office of the Prime Minister and Council of Ministers, Raj Kumar Shrestha. Joint secretaries of all the line ministries are the members of the task force. “The panel is mandated to bring in an effective plan on reducing pressure at the Tribhuvan International Airport (TIA) while suggesting packages to attract international flights from the GBIA and the PRIA,” said an official of the Prime Minister’s office.  

Earlier on Friday, Prime Minister KP Sharma Oli convened a high-level meeting to discuss this matter. The meeting was attended by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, Foreign Minister Dr Arzu Rana Deuba, Labor and Employment Minister Sharat Singh Bhandari, Culture, Tourism, and Civil Aviation Minister Badri Prasad Pandey, chief secretary, chief advisor to the prime minister, and director general of the Civil Aviation Authority of Nepal (CAAN), Pradeep Adhikari.

During the meeting held at the Prime Minister’s Office, Prime Minister Oli reviewed the current flight volumes and passenger management at TIA to explore options and measures for operating the two international airports at full capacity.

Prime Minister Oli directed the creation of an environment conducive to ensure regular international flights from both airports. He emphasized that if regulatory issues concerning international airlines interested in operating at these airports are resolved swiftly, the government will incorporate these airlines into the flight schedule.

Oli stressed the importance of addressing the underutilization of these airports, which have been operating below capacity since their completion, resulting in financial losses and increased pressure on Kathmandu's airport, which has been handling more flights and passengers than its capacity.

Oli also highlighted the need to address potential increases in aviation fuel prices, suggesting that adjustments should be made in accordance with ground handling service rules. He urged the relevant ministries and agencies to prepare a proposal for the upcoming Council of Ministers meeting on Thursday, including recommendations for reducing passenger service charges, eliminating tourism taxes, and other measures.

PM Oli has asked the newly formed task force to come up with a detailed work plan to bring the two airports into regular operations soon.