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Nepal asks China to convert Pokhara airport loan into grant to ease financial burden
Nepal's Prime Minister Pushpa Kamal Dahal announced on Tuesday that diplomatic efforts have been initiated with China to convert a loan for Pokhara International Airport to a grant as it failed to garner income, instead piled up more debt. This came after opposition lawmaker Chanda Chaudhary raised questions about the increasing loss and piling debt, Nepal Prime Minister said that talks are underway to convert the loan into a grant. "In order to operate the flights to and from the Pokhara International Airport, a committee has already been formed to study government-private sector cooperation. On the basis of the report prepared by the committee, necessary preparations would be made for the operation of the airport. The loan acquired for the construction of Pokhara International Airport, diplomatic talks are underway to convert it into a grant. Necessary coordination would be made for all the necessary financial management," PM Dahal said. The Pokhara International Airport, opened on January 1, 2023, hasn't seen any frequent international flights except for chartered Chinese flights, which appear on rare occasions. On March 21, 2016, Nepal and China reached a loan agreement stipulating a total loan amount of 1.37 billion Chinese yuan, out of which 355.9 million Chinese yuan were constituted as interest-free- loans. The Civil Aviation Authority of Nepal (CAAN), the aviation regulating body of the Himalayan nation, is responsible for paying the loan amount by the year 2036. Earlier, Nepal PM Dahal, upon returning to Kathmandu last year after his visit to China, announced that Chinese flights would come to Pokhara, helping to cover the loss. While no such flights have commenced, on Tuesday, the Prime Minister, referring to the visit, claimed, "During my recent visit to China (September 22,, 2023), a theoretical agreement was reached about commencing connecting flights from various cities of China to Pokhara, and I believe that international flights would land at Pokhara International Airport and help recover the loss."Days before the inauguration of the airport last year, the Chinese Ambassador to Nepal claimed in a tweet that the airport was a part of the Belt and Road Initiative (BRI) which was rejected by the Nepal Government. But soon after the handover, the Pokhara airport exemplified the perils that came with importing China's infrastructure-at-any-cost development model, disproportionately benefiting Chinese firms at the expense of the borrowing nation. China CAMC Engineering, the construction division of state-owned conglomerate Sinomach, played a pivotal role in the Pokhara airport project. It imported building materials and machinery from China, and the airport itself was brimming with Chinese-made security and industrial technology. Despite China's claims about the project's quality, an investigation by The New York Times revealed an unsettling narrative. Multiple individuals involved in the project and a thorough examination of thousands of documents indicated that China CAMC Engineering had consistently dictated terms to maximise profits and protect its interests. Simultaneously, it systematically dismantled Nepali oversight. As a consequence, Nepal found itself entangled in significant debt to Chinese creditors without the expected influx of passengers to repay the loans. The Finance Ministry of the Himalayan nation had signed a memorandum of understanding supporting CAMC's proposal in 2011, even before an official bidding process had started. The Chinese loan agreement exclusively allowed Chinese firms to bid for the project. CAMC initially submitted a bid for USD 305 million, nearly double Nepal's cost estimatefor the airport. This drew criticism from Nepali politicians, who accused the process of being rigged and the price inflated. Following the outcry, CAMC lowered its bid to USD 216 million, reducing the cost by approximately 30 per cent. In 2016, China and Nepal formalised a 20-year agreement for the project, with a quarter of the funding provided as an interest-free loan. Nepal intended to borrow the remainder from China's Export-Import Bank at a 2 per cent interest rate. As construction progressed, glaring issues came to light. The Civil Aviation Authority of Nepal was responsible for overseeing the Chinese contractor, but the lack of experienced personnel, combined with the inadequate allocation of funds for consultants, hampered the project. Initially earmarked at USD 2.8 million, the budget for hiring consultants to ensure CAMC's compliance with international construction standards was eventually reduced to a mere USD 10,000, diverting funds elsewhere. This lack of oversight allowed CAMC to initiate work before consultants were in place and perform construction work that did not meet international standards. Key components, such as soil density tests for the runway's foundation, were omitted, jeopardising the runway's future stability. Other oversights included the airport's drainage system design, ignoring historical rainfall data and sloping topography, increasing the risk of flooding. The quality of Chinese-made building materials and the identity of vendors were inadequately documented, contravening the terms of CAMC's contract with Nepal, as reported by The New York Times. While consulting efforts were expected to oversee CAMC's work, the Chinese company managed to sidestep consultants and interact directly with Nepali officials, who had limited construction experience. Any efforts to seek additional information or documentation were often fruitless. China's Export-Import Bank had commissioned China IPPR International Engineering, aconsulting firm, to ensure the quality, safety, and schedule of the project and to confirm Nepal's satisfaction with CAMC's work. However, the situation grew murkier in 2019 when CAMC acquired IPPR, turning it from a sister company into a direct subsidiary. IPPR's fees came from Nepal as part of its loan from the Chinese bank. Chinese engineers working on the project claimed that they were instructed not to scrutinise CAMC's work closely, with a focus on delivering an airport. Furthermore, allegations surfaced that documents related to the qualifications of IPPR'sworkers in Pokhara had been falsified. In some cases, even employee credentials were manipulated. Such practices revealed a disconcerting disregard for transparency and accountability. As Pokhara airport struggled to attract international flights, especially from Indian airlines, Nepal's aspirations for the airport were put in jeopardy. Buddha Air, Nepal's largest airline, had requested permits for flights to India but awaited approval from the Indian government. A feasibility study commissioned by CAMC had projected passenger numbers that would enable the airport to repay its loans from profits, but as of now, no international flights have commenced. Nepali officials have reportedly requested that China convert the loan into a grant due to the airport's financial challenges, a matter discussed during Prime Minister Pushpa Kamal Dahal's visit to Beijing in late September. The joint statement issued by China and Nepal during the visit acknowledged the completion and operation of the Pokhara airport but made no mention of plans to waive the loan. The construction of Nepal's Pokhara airport, primarily funded and executed by Chinesecompanies, has raised concerns about the quality of work, the manipulation of oversight, and the burden of debt on Nepal. Additionally, the airport's association with China's Belt and Road Initiative has ignited diplomatic tensions with India, making it challenging for the airport to attract international flights. The Pokhara airport serves as a stark example of the pitfalls associated with importing China's infrastructure development model, highlighting concerns about financial sustainability and transparency, all while fueling geopolitical rivalries in the region.  Source: Beijing Bulletin
24 Mar 2024,23:13

Germany: Munich Airport suspends flights amid heavy snowfall
Flights at Germany's second-biggest airport were canceled until tomorrow. Heavy snow submerged the Bavarian capital, with public transport also suspended. Heavy snowfall hit southern Germany on Friday night and continued on Saturday, causing major disruptions at Munich Airport, the second-busiest hub in the country.  The airport said on Saturday it was suspending flights until 6 a.m. on Sunday. Around 320 of the 760 flights scheduled for Saturday have been canceled, the German DPA news agency reported. Crews were scrambling to keep a minimum of one runway in service and free of snow. Germany's DWD weather service forecasted prolonged snow through Saturday afternoon for much of Bavaria, with as much as 30-40 centimeters (roughly 12-15 inches) of snow expected in places, "a large portion of that within a period of 12 hours overnight into Saturday."  The airport was expecting further delays as a result, the spokesman said. Munich public transport severely impacted, fire trucks fit snow chains Most local bus and tram services were canceled since Friday evening and through Saturday in Munich as the road conditions worsened.  The city's fire service shared pictures on social media earlier in the day of firefighters fitting a fire truck with snow chains "so that we can come to you as safely as possible at any time."  Football journalist Archie Rhind-Tutt, who had spent the week on assignment in Helsinki, Finland, noted his surprise on returning to yet more wintery weather in Munich to cover a scheduled Bundesliga game. The home game between Bayern Munich and Union Berlin was later canceled due to the heavy snowfall, Union Berlin announced. Comparable weather was reported in nearby Bavarian cities like Augsburg.  Early start for the snow, Zugspitze ski slopes already open Friday's heavy snow capped a week full of indications of a comparatively early start by recent standards for cold, wintery weather across Germany.  The ski slopes on Germany's highest mountain, the Zugspitze, on the border to Austria in the Bavarian Alps, opened on Friday, the earliest start for the German ski season in years amid warmer recent winters.  A spokeswoman for the slope said the roughly 2 meters of snow was the most present on the mountain at the start of the ski season since 2007. Authorities on Friday reported dozens of overnight road traffic accidents in slippery conditions across southern Germany, including one mass collision on a highway in the southwest with seven injuries, four of them severe.  Snow also fell in Berlin midweek, while most of the country either recorded some light snowfall or at least freezing temperatures.
02 Dec 2023,18:56

Report Raises Concerns About Pokhara International Airport and Yeti Plane Crash
A government report has attributed the plane crash involving a Yeti Airlines aircraft near Pokhara International Airport eight months ago to a combination of technical issues and human error. However, sources familiar with the situation argue that inadequate runway infrastructure, a lack of essential equipment at the airport, and delayed pilot instructions also played significant roles in the accident. The commission of inquiry tasked with investigating the crash submitted its findings to Sudan Kirati, the Minister of Culture, Tourism, and Civil Aviation. According to Buddhisagar Lamichhane, the commission’s member secretary, the final report has been submitted to the minister and will be published in accordance with International Civil Aviation Organization (ICAO) guidelines, which stipulate that the report should be made public 60 days after receiving input from relevant countries. The report reportedly places some blame on the co-pilot for the accident. In the wake of the incident, a five-member accident investigation commission was established by the government to examine the circumstances. Their preliminary report previously suggested that human error on the part of the crew was responsible for the crash, which claimed the lives of all 72 individuals on board. An earlier report from the Office of the Auditor General had highlighted issues related to negligence in the construction of physical structures at the airport. Aviation experts had cited these issues as contributing factors to the accident. The report identified challenges related to the airport’s proximity to rivers, waste disposal sites, the presence of wildlife, and a lack of adequate space for large aircraft landings. Furthermore, the Auditor General raised concerns about runway construction. According to the report, a 30-meter cut was needed on the east side of the runway at the height of 1.5 km. The gravel material excavated from this height reduction was utilized in the runway’s construction, eliminating the need to transport material from a distance. The Auditor General has recommended a thorough analysis of the impact of this decision. The report from the Auditor General also raised concerns about contractual compliance during construction, runway construction errors, increased costs borne by the state, and additional expenses attributed to consultancy services. The construction of Pokhara International Airport commenced in August 2016 through an agreement with the Chinese state-owned contractor CAMCE, with a total budget of $244 million, including value-added tax. By the end of the previous year, $209 million had been disbursed to the construction company. While the contract stated that the builders were responsible for taxes, fees, and charges, both inside and outside Nepal, the Auditor General’s report suggested that the project was included in the master list and granted exemptions, despite no such provisions in the contract. The Auditor General also raised questions regarding the runway’s construction, particularly the removal of 30 meters of the chinedanda’s height on the east side of the runway. The gravel resulting from this excavation was utilized in constructing the runway itself, eliminating the need to transport materials from a distance. The report called for an analysis of the impact of this approach. The airport’s construction was funded by a loan of 1.37 billion Chinese yuan from China’s Exim Bank, with a 25 percent interest waiver. The remaining amount carried a 2 percent interest rate, considered relatively high compared to loans from international donor agencies. The loan has a grace period of seven years and a repayment term of 20 years. One significant revelation from the investigation was that crucial equipment, such as the Instrument Landing System (ILS), was only installed at the airport after the handover. The ILS, essential for aircraft landings in various conditions, was not operational during the accident involving the Yeti Airlines plane. This key equipment was subsequently put in place after the incident. The ILS, a radio navigation system, aids aircraft in landing safely, even in low visibility and adverse weather conditions. It significantly improves landing precision, allowing aircraft to land with reduced visibility compared to traditional methods. Despite concerns raised about aviation safety rules being violated during the airport’s opening, no action was taken against the responsible parties. Violations included flights operating outside the stipulated hours for visual flight rules (VFR) in disregard of Nepal Civil Aviation Authority regulations, which set daily sunrise and sunset times for VFR flights. Flights were reported to have taken off beyond the specified sunset time, but no penalties were imposed at that time.
25 Sep 2023,15:57

Northeast’s 2nd largest cargo complex starts functioning in Agartala airport
The new cargo complex at the Agartala’s Maharaja Bir Bikram airport, the second largest in the northeastern region after the one at Guwahati airport, was inaugurated on Friday. Airport Authority of India (AAI) officials said that there were no outgoing cargo operations since December 2022 as BCAS (Bureau of Civil Aviation Security) shut down the old cargo facility due to absence of security vetting, creating difficulties for post offices, courier services and other trade and export related services. The new cargo complex, which was constructed at an estimated cost of Rs 17 crore, would be able to cater 40,150 metric tonnes of cargo per annum and it has facilities like cold storage for perishable items, facilities for dangerous goods and a very spacious storage area. Tripura Transport Minister Sushanta Chowdhury, in the presence of the state government and AAI officials, inaugurated the new cargo complex which would be maintained and operated by AAI Cargo and Logistics Services, a subsidiary of AAI for smooth and hassle free cargo movement. With the starting of cargo operations it would act as a catalyst for growth and would also expedite the movement of perishable goods and products from the state, said MBB Airport Director K.C. Meena. The MBB Airport in Agartala became ready to operate international flights after Prime Minister Narendra Modi inaugurated the new integrated terminal building on January 4 last year. According to the AAI officials, the MBB airport, located 20 km north of Agartala city, is the second busiest airport in the northeast after Guwahati airport in terms of handling of aircraft and passengers. Built at a cost of Rs 500 crore and with a built-up area of 30,000 square metres, the new integrated terminal building at the MBB airport has been designed to handle 1,500 passengers, including 200 international passengers, during peak hours and it is equipped with all modern amenities.
29 Apr 2023,22:53

Delhi Airport Ranked As World's 9th Busiest In 2022
Delhi airport has emerged as the ninth busiest airport in the world in 2022 with passenger traffic of more than 5.94 crore, according to Airports Council International (ACI) list. DIAL is the operator of the Indira Gandhi International Airport (IGIA) in the national capital. ACI said the list of top 10 busiest airports in the world for 2022 is topped by Hartsfield-Jackson Atlanta International Airport (ATL, 93.7 million passengers). It is followed by Dallas Fort Worth Airport (DFW, 73.4 million passengers, Denver Airport (DEN, 69.3 million passengers), and Chicago O'Hare Airport (ORD, 68.3 million passengers). "Airports reinstated in the upper ranks also include Dubai Airport achieving 5th rank (DXB, 66.1 million passengers, +127 per cent), Istanbul Airport reaching 7th position (IST, 64.3 million passengers, +73.8 per cent), followed by London Heathrow Airport, Delhi Airport, and Paris Charles de Gaulle Airport in the 8th, 9th, and 10th spots, respectively," ACI said in a release on Wednesday. In a separate release, Delhi International Airport Ltd (DIAL) said it is the only airport to figure in the top 10 list from South and South East Asia. "Delhi airport has bettered its ranking from 13th in 2021 and 17th in 2019. Delhi airport witnessed a collective footfall of passenger traffic of over 5.94 crore in 2022 as per the ACI report," it said. According to ACI, the top 10 airports for total passenger traffic, representing 10 per cent of the global traffic, witnessed a gain of 51.7 per cent from 2021 amounting to 85.9 per cent recovery vis-a-vis their 2019 results. ACI noted that preliminary figures indicate that with the resumption of international travel, 2022 global passenger traffic reached close to 7 billion, representing an increase of 53.5 per cent from 2021, or a 73.8 per cent recovery from 2019 results. Source: NDTV
08 Apr 2023,19:00
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