China provides grant and concessional loan to buy six aircraft
Travel BizNews———
Kathmandu: The government of China will provide grant and concessional loans assistance of RMB 408 million (about Nepali Rupees 6671 million) to purchase six Chinese aircraft.
The Chinese government will provide a grant and concessional loan assistance of Rs 6,671 million for Nepal Airlines Corporation to acquire and purchase six aircraft from Chinese aircraft manufacturer Avic International under the agreement.
Nepal’s Finance Secretary Shanta Raj Subedi and Ambassador of China to Nepal Wu Chuntai signed agreements — Framework Agreement on Provision of Concessional Loan Assistance, Economic and Technical Cooperation Agreement for Grant Assistance and Letter of Exchange on behalf of the Nepali and Chinese governments respectively on Nov. 28, 2013.
Likewise, Joint secretary at the finance ministry Madhu Marasini and deputy general manager of Export-Import Bank of China Gao Bing signed the Concessional Loan Agreement on behalf of the Nepali government and EXIM Bank.
According to the agreement, RMB 180 million ( Rs 2,943 million ) will be used to acquire one MA60 and one Y12E aircraft on grant basis and RMB 228 ( Rs 3,728 million ) will be used to purchase one MA60 and three Y12E aircraft on loan from China. The concessional loan is for 20 years with a grace period of seven years and the interest has been set at 1.5 per cent.
China will provide one MA 60 and Y12E plane within three months and another MA60 and three Y12 E in six months.
