Given the growing air-traffic, the three int'l airports are unlikely to handle the volume sooner than later
The Supreme Court has issued a mandamus order to the government to build an international airport by causing minimum damage to the environment.
But whether it means constructing the airport at the controversial site at Nijgadh in Bara or elsewhere is not clear. On Wednesday, the apex court released the full text of its verdict of May 26, which had quashed all government decisions made for the construction of Nijgadh International Airport in Bara in response to a public interest litigation citing environmental concerns. The five-member grand full bench of the Supreme Court delivered a split verdict on the case, with two justices in favour of building the airport at Nijgadh by mitigating the environmental impact, while the majority decision is not clear on whether the airport can be built at Nijgadh or must be shifted elsewhere. All five justices are, however, of the opinion that environmental damage should be kept to the minimum.
The Nijgadh airport was mooted following two major air crashes in Kathmandu - that of Thai International and Pakistan International Airlines - in 1992. In the past one decade, successive governments have pushed the National Pride Project to be built in the middle of a dense forest that would require the felling of more than 2.4 million, mostly sal, trees to clear the site. Also since it lies close to the Parsa National Park, environmentalists and activists are concerned that the construction of the proposed airport would badly affect both the habitat of wildlife like the tiger, rhino and the elephant and the rich biodiversity of the forest. The majority opinion of the full text of the verdict, thus, states that destruction of the environment in the name of development could not be accepted. Also, it questions why more than 8,000 hectares of land must be allocated for the airport when many international airports in other countries are just a fourth of its size.
Regardless of where the next international airport will be built, it will cause some environmental damage, and forests will need to be cleared. Salvation lies in causing minimum environmental damage, including that of forested areas, while having a robust plan to protect the flora and fauna of the area. Questions have also been raised if Nepal needed a fourth international airport when two international airports have come on line at Bhairahawa and Pokhara. However, a big airport built elsewhere cannot serve as an alternative to the country's Tribhuvan International Airport (TIA) in Kathmandu, which is congested beyond measure. Given the growing air-traffic, the existing three international airports are unlikely to be able to handle the volume sooner than later, hence, the need of a very large airport capable of handling tens of millions of passengers annually. Also, since the Indian government is reluctant to provide alternative air routes to airlines flying to Nepal, Nijgadh might still be the most lucrative place to build the next big airport. But before the government goes ahead with building its next airport, it must now start with a fresh Environmental Impact Assessment (EIA) in accordance with the law and procedures of the land and identify the resources necessary for its construction.
NOC's soaring debt
It appears that the state-owned Nepal Oil Corporation (NOC) will not be able to supply petroleum products in the coming days as it is reeling under heavy debts beyond its paying capacity. NOC had asked the government to provide Rs 3 billion three months ago. Instead of providing the requested loan, the Finance Ministry has now told the NOC to place its headquarters as collateral to receive the loan from Rastriya Banijya Bank. Till date, NOC owes Rs 22 billion to Indian Oil Corporation (IOC), the sole supplier of petroleum products to Nepal.
Even if Rastriya Banijya Bank provides the requested loan to NOC under government guarantee, it will not be enough to pay back the outstanding dues to the IOC. Prices of petroleum products skyrocketed in the international market following the war in Ukraine on February 24. NOC is set to bear a loss of Rs 55 billion by mid-July due to the price disparity between the purchase and sale of fossil fuels. An all time high depreciation of the Nepali currency against the US dollar, which rose to Rs 126 per dollar on Wednesday, has added more pressure on the economy.
Should this trend continue for a couple of months, NOC will have no option other than to declare bankruptcy.
A version of this article appears in the print on July 1, 2022, of The Himalayan Times.
