||The objective of the TA is to conduct the preparation study to design a project which will address the deficiencies of civil aviation in general, including the development needs of international and regional airports; and air transport service in the country, in terms of safety and feasibility. It is also expected to facilitate private involvement in financing, ownership, operation, rehabilitation, maintenance and management of airports.
|Project Rationale and Linkage to Country/Regional Strategy
Poverty reduction in Nepal has been slow, and one of the main reasons is the regional imbalance in overall development due to poor regional access and connectivity. Strengthening rural-urban and regional connectivity, building market linkages, and improving the quality of and access to basic social services are critical to promote broad-based growth, enhance mobility and improve productivity. The Nepal?s Tenth Plan (FY2003-FY2007) ends mid-July 2007, and an interim development plan (IDP, still being prepared by the Government) identifies broad based economic prosperity as one of its priorities, thus remain consistent with ADB?s 2004 CSP. The 2004 CSP puts priority to broad-based economic growth by providing access to economic opportunities. Especially in remote areas that are otherwise inaccessible by road, civil aviation is essential for Nepal. ADB assisted GON in preparing a civil aviation sector strategy in 2006 and the report concludes (issued in November 2006) an optimistic outlook for the sector with both international and domestic traffic recovering strongly.
The civil aviation sector strategy study comprises a sector management plan and an infrastructure development plan. The central thrust of the strategy was to re-structure the sector and to focus the priority to the viable development of the Tribhuvan International Airport (TIA). The critical issue in this context is the weakness of CAAN and TIA in financial management in that the systems, procedures and qualified people are not available to properly manage financial and its business operations. The strategy recommends a 2-phase approach of the assistance: (i) phase I is to relieve the acute aircraft parking problem on the international and domestic aprons, provide better domestic terminal facilities, improve communication/navigation systems, improve the airport water supply and provide new general aviation and maintenance aprons, and (ii) phase 2 is to cover the longer term infrastructure development requirements for other airport, especially the ones located in the remote domestic area.
An infrastructure development plan (InfrDP) was also prepared setting out the future development requirements for other airports. The plan specifies long term, prioritized and timelined improvements to airport and air navigation infrastructure for TIA and the regional airports and remote strips operated by CAAN.
The PPTA will examine the feasibility and impact of the proposed improvements of TIA as set out in the InfrDP which includes the examination of economic, environmental and social development impacts. Tribhuvan International Airport (TIA) is to become a revenue-generating entity by strengthening CAAN?s capacity for financial management as required. It will also help strengthen CAAN?s capacity in financial management of TIA to become a revenue-generating organization. Inline with Government?s priority to increase the accessibility to remote area, selected remotely domestic airport/airstrips may be included to be improved. The remote domestic airport/airstrips may be classified as socially required and/or commercially viable airport projects.