POKHARA, June 4: China’s Export and Import (EXIM) Bank has approved concessional loan for the Pokhara Regional International Airport.
Pradip Adhikari, chief of the airport project, said that the loan has come into effect from May 31 itself. “The Chinese bank has already informed the Ministry of Finance about its decision,” he added. “Now, it will be easier for us to move the long-stalled project forward.”
According to Adhikari, the project has to be completed within four years since the endorsement of loan. “We will immediately start project preparation work. Construction work will begin from September as monsoon has already begun,” he added.
The foundation stone for the project was laid on April 14.
As per the agreement signed between the Ministry of Finance and Civil Aviation Authority of Nepal (CAAN), the ministry will lend the amount to CAAN, levying 5 percent interest rate.
The estimated cost of the project is Rs 21.47 billion.
The Chinese loan has to be cleared within 13 years of the completion of the seven-year grace period. CAAN plans to repay the loans in 26 installments -- two installments per year.