KATHMANDU, Jan 19: The Adani Group of Indian billionaire Gautam Adani became interested after the Civil Aviation Authority of Nepal (CAAN) started the process of operating and building four airports in Nepal under the Public Private Partnership (PPP) model.
A few days ago, some representatives of Adani Group met CAAN Director General Pradeep Adhikari and got information about the PPP model advanced by CAAN.
After unable to operate the Pokhara Regional International Airport (PRIA) and Gautam Buddha International Airport (GBIA), which were built with loans, CAAN has decided to bring the private sector into the operation of three international airports including the Tribhuvan International Airport (TIA) and the construction of the Nijgadh International Airport. CAAN has sent a proposal to the Ministry of Culture, Tourism and Civil Aviation to allow four airports to be operated on the PPP model.
Anil Patani's team from Adani Group came to Nepal after CAAN started the process for construction and management of the airports under the PPP model. "After CAAN decided to involve the private sector in the construction and operation of the airports, representatives of Adani Group met the Director General of CAAN," said a representative of the private sector who participated in the meeting, "Adani Group is willing to manage the airports."
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In a meeting with the representatives of Adani Group, the Director General of CAAN said that the modality has not been finalized yet. "We have decided to bring in the private sector at the airport," Adhikari told them, "We will open a global tender once the modality is ready." Even though CAAN has decided to bring in investors under the PPP model, the proposal will be implemented only after the decision of the cabinet meeting is made through the ministry. Then the company will be selected through competition. But implementing this decision is challenging.
Adani Group, which is interested in the management and construction of airports in Nepal, has been looking at the management of seven international airports in India. Adani Airport Holdings Limited, a part of the Adani Group, manages Chhatrapati Shivaji Maharaja Airport, Sardar Ballabh Bhai Patel Airport, the popular Gopinath Bordoloi Airport, Jaipur Airport, Chaudhary Karan Singh Airport, Mangaluru Airport and Thiruvananthapuram International Airport in Mumbai, India.
In the absence of international flights from PRIA and GBIA, the need for Nijgadh International Airport, which is being built in Bara, has not been justified. A CAAN official said that since TIA has a good business, investors are expected to come to other airports as well.
It is suspected that the CAAN has made a ‘combo package’ of these four international airports by connecting Nijgarh International Airport, which has to be built, in the event that international flights cannot be carried out from the constructed airport. Although there are a lot of air passengers at the TIA, there are no international flights from PRIA and GBIA.
CAAN Spokesperson Jagannath Niraula said that after the government approves the PPP model, a global tender will be called after preparing the modality. "It is not that a company can get the tender only by wishing," said Niraula, "They will be selected through global competition."
Prime Minister Pushpa Kamal Dahal is also in favor of the private sector coming into the management and construction of the international airports. In 2069 BS, after the government prepared to hand over the management of TIA to an Indian company, the Supreme Court stayed the government’s move. After the government prepared to give the responsibility of upgrading, operation and maintenance of TIA to the Indian company IA&FS, a writ petition was filed against it in the Supreme Court. On May 26, 2012 the Investment Board meeting had written a letter to IL&FS and asked them to send a proposal to take over the management of the airport.
At that time, the court ruled that Section 7 of the Investment Board Act 2068 was against the provisions. In that section, it is mentioned that there should be competition when investing in any work.
