Kathmandu, July 28

The government has decided to hold consultations with International Finance Corporation (IFC) and Asian Development Bank (ADB) to select the project implementation modality for construction of the Second International Airport (SIA) in Nijgadh and upgradation of Tribhuvan International Airport (TIA).

A board meeting of Investment Board Nepal (IBN) headed by PM Sushil Koirala took the decision to jointly consult with IFC and ADB, which is already supporting Nepal to upgrade TIA, today. The Ministry of Finance (MoF) will coordinate the consultation to look into options to undertake the two airport projects under public private partnership (PPP) or any other model, according to IBN.

Due to increased air traffic, the government has been facing an urgency to upgrade the country’s only international airport — TIA — and construct SIA as an alternative. Despite the need to have an alternative international airport, work on the long-planned SIA has not moved ahead effectively and the budget for the current fiscal year 2015-16 too has not incorporated any concrete plan related to it. As for TIA upgradation, the government has allocated Rs 1.75 billion for the current fiscal year.

Today’s meeting also decided to allow foreign direct investment of around Rs 36 billion to Hong Kong Red Lion Cement No 3 Ltd (Hongshi Group) to establish and operate a cement factory in Nepal. The meeting also instructed IBN to do the needful to build Arun Hydropower Project under PPP model.