fbpx 38349-029: South Asia Subregional Economic Cooperation Airport Capacity Enhancement Sector Development Program | Asian Development Bank

Nepal: South Asia Subregional Economic Cooperation Airport Capacity Enhancement Sector Development Program

Sovereign (Public) Project | 38349-029 Status: Proposed

The proposed sector development program will (i) support civil aviation sector reforms in restructuring of the Civil Aviation Authority of Nepal, strengthening of regulatory functions, management governance and business plan development in operations, financial restructuring, operational efficiency improvement, and civil aviation safety (the program component); and (ii) provide project financing for improvement of airport facilities at the Tribhuvan International Airport (TIA) in Kathmandu and Gautam Buddha International Airport in Lumbini (the investment component).

 
Project Name South Asia Subregional Economic Cooperation Airport Capacity Enhancement Sector Development Program
Project Number 38349-029
Country Nepal
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: South Asia Subregional Economic Cooperation Airport Capacity Enhancement Sector Development Program
concessional ordinary capital resources lending / Asian Development Fund US$ 50.00 million
concessional ordinary capital resources lending / Asian Development Fund US$ 150.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Transport / Air transport - Transport policies and institutional development

Gender Equity and Mainstreaming Some gender elements
Description The proposed sector development program will (i) support civil aviation sector reforms in restructuring of the Civil Aviation Authority of Nepal, strengthening of regulatory functions, management governance and business plan development in operations, financial restructuring, operational efficiency improvement, and civil aviation safety (the program component); and (ii) provide project financing for improvement of airport facilities at the Tribhuvan International Airport (TIA) in Kathmandu and Gautam Buddha International Airport in Lumbini (the investment component).
Project Rationale and Linkage to Country/Regional Strategy Civil aviation is crucial to transport, trade, and tourism in the landlocked country, and provides indispensable links for the hilly and mountain areas which are inaccessible by other transport modes. Tourism is one of the major economic activities in Nepal and is on top of the government's priorities. Foreign exchange earned from the tourism sector in FY2018 is estimated at $563 million, which is equivalent to 65% of goods exports. Considering that more than 80% of international tourists come to Nepal by air currently through the TIA, improvement of the civil aviation sector is essential for tourism to flourish and to be channeled toward economic development of the country. The TIA presently serves as the unique gateway airport to Nepal. Even though the TIA plays a critical role in the civil aviation sector of the country as an international gateway as well as a domestic hub, its close proximity to the Kathmandu city center does not allow its expansion beyond the current airport boundary. The increasing demand should be handled through (i) the more efficient use of the available areas within the existing airport premises at the TIA; and (ii) distribution of the concentrated international air traffic to other airports.
Impact Tourism in Nepal developed
Outcome Safety, capacity, and efficiency of air travel to and from Nepal improved
Outputs

Tribhuvan International Airport airside facilities completed in accordance with the Tribhuvan International Airport master plan

A new international terminal building constructed at the Gautam Buddha International Airport

Civil aviation bills legislated

Functional and distinct entities for (i) regulation and (ii) service operations established

Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services ADB will engage the consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions.
Procurement Procurement will follow the ADB procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Nakai, Kanzo
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Civil Aviation Authority of Nepal
P. B. No. 284, Babar Mahal
Kathmandu
Nepal
Ministry of Culture, Tourism and Civil Aviation
Singha Durbar
Kathmandu
Nepal
Ministry of Finance
The Government of Nepal
Singha Durbar
Kathmandu, Nepal
Timetable
Concept Clearance 27 Nov 2019
Fact Finding 16 Mar 2020 to 31 Mar 2020
MRM 20 May 2020
Approval -
Last Review Mission -
Last PDS Update 27 Nov 2019

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

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Contracts Awarded

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Procurement Plan

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