CAAN's new commercial building lying fallow

Published On: August 30, 2017 03:49 AM NPT By: Santosh Pokharel

POKHARA, August 30: Despite spending about Rs 70 million on its new commercial building, the Civil Aviation Authority of Nepal (CAAN) Pokhara has not been able to utilize it. The building has been lying fallow as CAAN has not been able to rent it out.

The five-story building located near Mustang Chowk was constructed four years ago. The building which stands on three ropani of land has thirteen rooms including four rooms equipped with shutters facing the road and underground vehicle parking space.

CAAN has already solicited tender bids thrice for renting out the building, but there has not been any response from potential tenants.
Bhola Prasad Guragain, chief of CAAN in Pokhara said, "We published tender notices in national newspapers three times but did not get any response."

According to CAAN's Airport Service Charge Regulations 2010, a property can be rented out for 10 years only if it earns an annual rent of Rs 30 million. However, the property cannot earn more than Rs 15 million in rent a year, according to CAAN officials. The regulations state that a property that earns less than Rs 30 million in rent can be rented out for three years only. "This is the reason why no one is interested," CAAN's Guragain said.

He said his office has already informed the CAAN head office about the situation. "We are working to change the regulations to allow tenants to use the building for at least 10 years," Guragain said.

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