TKP, 4-May-12
The Civil Aviation Authority of Nepal (CAAN) received only three confirmed bids to develop the much-talked about regional international airport at Chinnedanda, Pokhara as the tender deadline ended Friday afternoon.
Out of the 10 Chinese firms that obtained bid documents, three, China CAMC Engineering Co, Sinohydro Corporation and China International Water and Electric Corporation, have returned them to CAAN. According to CAAN, all the three bidders are listed by the China International Contractors Association, an international project contracting company approved by the Ministry of Commerce of China.
According to CAAN, the tender documents will be processed after it holds its board meeting. However, that may take some time as the Minister of Tourism and Civil Aviation is the board’s chairperson and a new minister is yet to be appointed.
“After the board meeting, the technical and financial aspects of the contractors will be evaluated to select the finalist,” said CAAN’s Deputy Director General Suman Shrestha.
The lowest bidder will be awarded the contract after assessing the bid documents. Under technical eligibility, the bidder should have at least 10 years’ experience in infrastructure projects and shall have completed at least one airport project including communication and navigational aids equipment with installation outside or within China and a project cost of at least US$ 120 million. Similarly, under financial eligibility, the bidder should have liquid assets or availability of credit facilities of not less than US$ 20 million. Shrestha said that CAAN would select the lowest bidder and recommend the firm to its line ministry. The ministry will forward the selected firm’s name to the Finance Ministry which will then start loan negotiations with the Export-Import Bank of China (Exim Bank). The government plans to develop the airport with a soft loan of around US$ 145 million from Exim bank.
In 1975, the government acquired more than 3,106 ropanis of land to build the planned airport. The government and the Japan International Cooperation Agency conduct a detailed study in 1989.
The study had proposed a 2,500 m long and 50 m wide runway, a terminal and a cargo building.
Construction of the airport, which was expected to be completed in four years, was estimated to cost of US$ 39.6 million at the time. A new study has estimated that the project will now cost more than US$ 180 million.
CAAN invited bids for execution of the project under the engineering procurement and construction (EPC) model on Feb 9 and extended the deadline twice.
The EPC plan allows participation of Chinese companies or joint ventures between Chinese and Nepali companies with the Chinese partner holding more than 50 percent of the shares.
