Nepal PM under attack for ‘plan’ to hand over airports to Indian firm

Kathmandu:Prime Minister Baburam Bhattarai has come under scrutiny for the government’s “plan” to hand over the management and operation of Nepal’s only international and 15 domestic airports to an Indian company without inviting bids.

A letter by India’s Infrastructure Leasing and Financial Services (IL&FS) to the Investment Board of Nepal in December, expressing its intent to enter an agreement with either the Civil Aviation Authority of Nepal (CAAN) or the Tourism Board of Nepal to take over the airports and jointly run them on build, own, operate and transfer (BOOT) model, has been recently submitted before the Supreme Court by the investment board.

The board submitted the letter, which had been till now kept a secret, after the SC had ordered it and the government to produce before it all documents related to the controversy, while hearing a public interest litigation seeking the court’s instruction to stop the deal in view of security and other implications.

While media had reported that there was a move to hand over the management and upgradation of Tribhuvan International Airport (TIA) to IL&FS, the documents revealed that the Indian company’s letter of intent included management and transfer of 15 domestic airports too.

What makes Bhattarai the target of the Opposition is that the IL&FS submitted the letter of intent after its representatives had met him during his visit to Delhi in October 2011, though the government has not yet come out with a policy to allow management of its airports to foreign companies. No bids have been invited so far. The SC is to give its ruling on July 24.

According to an IL&FS spokesperson in Mumbai, it submitted an ‘expression of interest’ (EoI) for development of TIA in line with the existing legislative framework and the Investment Board Act of Nepal. The spokesperson said if the Nepal government would further request, the IL&FS, jointly with CAAN, would prepare a detailed project report for regional airports, too, to have a comprehensive air connectivity.

Under the special purpose vehicle model, the EoI says, a company would be locally registered with the shareholding of CAAN and IL&FS, and the implementation would be done jointly with CAAN or the Ministry of Tourism & Civil Aviation. It was also clarified that there is no proposal from IL&FS to perform functions such as airport security, immigration, customs etc, which would continue to be performed by the Government of Nepal.IL&FS has been requested by the investment board to submit a formal proposal for development of TIA, which it is yet to comply with.Source : Indian Express