KATHMANDU, May 29: The government has announced that the construction modality of Nepal’s second international airport in Nijgadh will be finalized within six months.
Finance Minister Dr Swarnim Wagle made the commitment while presenting the national budget for the fiscal year 2026/27 in a joint session of the Federal Parliament on Friday.
The Nijgadh airport project, considered a national pride initiative, has remained stalled for the past four years due to legal and procedural complications. According to officials, previous governments failed to resolve key issues related to construction modality and implementation challenges, leaving the project in limbo.
Following a Supreme Court order issued on May 25, 2022 construction work was halted. The court had directed the government to reconsider the location of the airport after concerns were raised over large-scale deforestation in the Tangiya settlement area and to conduct a nationwide study of possible alternative sites.
In response, the government formed an expert committee led by Birendra Bahadur Deuja to assess potential locations across the country. The committee’s report, submitted in 2022, concluded that Tangiya settlement remains the most suitable site for the airport.
Delay in ICP construction in Nepalgunj
Based on the report, the Supreme Court allowed the project to proceed after defining boundary demarcations (four-kilometer/zone clearance process), which was subsequently forwarded to the Council of Ministers for approval. However, officials say the file has since remained pending across the Ministry of Culture, Tourism and Civil Aviation and the Civil Aviation Authority for the past four years.
Project Implementation Unit Chief Bijay Yadav said the budget announcement to finalize the construction modality within six months is expected to accelerate the stalled project.
According to him, delays in decision-making regarding the construction model and relocation of the Tangiya settlement have prevented progress despite repeated budget allocations.
The project involves significant land acquisition and infrastructure development, including runway, taxiway, and apron construction. Compensation distribution, river control works, and fencing have reached final stages, according to officials.
So far, compensation has been distributed for 73 bighas of private land among 155 landowners, amounting to around Rs 490 million. More payments are underway for remaining landowners.
Authorities have already spent over Rs 1 billion on compensation, fencing, and river embankment works.
The proposed airport site spans approximately 11,875 bighas, with fencing and boundary works nearing completion in remaining sections. Officials also noted that the total area of private land may still change upon further verification.
Since fiscal year 2014/15, the government has continuously allocated budgets for the Nijgadh International Airport project, but construction has not progressed due to unresolved legal and policy issues.
Stakeholders argue that if completed, the airport would significantly boost tourism, attract large aircraft directly to Nepal, and increase investment and employment opportunities.
Business leaders say the lack of a large international airport forces tourists to land in neighboring countries and travel to Nepal via smaller aircraft, increasing cost and inconvenience.
The project is widely viewed as a long-debated infrastructure initiative aimed at reducing pressure on Tribhuvan International Airport and supporting long-term economic growth.
