According to sources, plan to split the services of CAAN has been initiated to offer better services as per the international standard. Prem Raj Lohani, project director of Tribhuvan International Airport Improvement Project, said ADB has agreed to provide $5 million to conduct study on unbundling services and capacity building of CAAN. [break]
“The study will be completed in 3 years,” Lohani said, adding, “The agreement has yet to be finalized.”
According to Lohani, CAAN is mulling over including private sector - both domestic and international -- in the facilitator unit. However, CAAN will solely control the regulator unit that will regulate the aviation sector. He further informed that the facilitator unit will look after the airports, including Tribhuvan International Airport.
At present, CAAN is performing both regulatory and functionary role.
Lohani also informed that existing workforce at CAAN will be given opportunity to choose either of the units once CAAN splits into two factions.
CAAN is currently extending the taxiway to increasing parking space for international aircraft. According to Lohani, about 30 percent of taxiway overlay work and first phase of extending parking areas have already been completed.
Besides this grant assistance, ADB has already agreed to provide a financial assistance worth $80 million dollar -- $70 million as loan and remaining as grant - to support the TIA improvement project and upgrade Lukla, Simikot, Rara and other airports.
Meanwhile, the four-phase TIA Improvement Master Plan has been facing shortage of funds. According to TIA Improvement project, the total cost of master plan has been estimated at $480 million. However, aviation experts said the total cost could reach up to $600 million if the master plan is to be amended as per the standard of International Civil Aviation Organization (ICAO) Code 4 E.
“The proposed international terminal building alone will cost around $ 250 million. Arranging necessary funding has been one of the big challenges for the master plan,” Lohani said, adding that master plan could be expedited by including international investors.
The master plan includes construction of new international terminal building, aircraft maintenance base (hanger expansion), increasing the length of parallel taxiway and improving communication and aviation facilities.
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