9 MPs of the sub-committee under the Public Accounts Committee of the Parliament signed, the remaining one also signed and the report will be submitted to the Accounts Committee on Monday.
The report prepared by the sub-committee under the Public Accounts Committee of the Parliament that there is at least 10 billion rupees of corruption in the Pokhara Regional International Airport will be submitted without mentioning the name of the decision-making authority.
For that, 9 MPs of the sub-committee have signed and the remaining one MP is also preparing to sign on Monday and hand over the report to the Chairman of the Accounts Committee, Rishikesh Pokharel. In the
report, the sub-committee has recommended the suspension of 8 technicians and employees, including the then project chief and current director general of the Civil Aviation Authority, Pradeep Adhikari.
The name of the political leadership involved in various decision-making processes during the construction period of the airport has not been mentioned by the sub-committee. The sub-committee is going to submit a report only stating that 'the policy, procedural and decision-making officials involved in the implementation of the airport from the feasibility study to the completion of construction' should be investigated quickly.
The sub-committee prepared the report on Pokhara Airport on May 3. At that time, study and monitoring sub-committee coordinator Rajendra Lingden, committee member and Congress MP Arjunnar Singh KC, Maoist's Janardhan Sharma and Amanlal Modi and United Samajwadi Party's Prem Ella signed only. Since then, Congress MPs Deepak Giri, Devprasad Timalsena and Ramakrishna Yadav have signed on different dates.
Two MPs of the UML, which is leading the government, have given 'more opinions'. UML MP Gokul Baskota, who is in the sub-committee, registered and signed the 'Additional Opinion' in writing on Sunday. Another UML MP, Tara Lama Tamang, has informed that he will register his opinion on Monday.
The sub-committee concluded that there was corruption in the construction of the airport right from the contract process. The sub-committee informed that the contract process was concluded by negotiation by increasing the cost price by a large number before the construction of the airport started. The sub-committee concluded that although the authority estimated the cost at 145 million US dollars (13.59 billion rupees according to the exchange rate of 2014), it increased the cost by 70 million dollars (6.56 billion) and entered into a contract with the Chinese company CAMC Engineering.
It is mentioned in the report of the sub-committee that the loan was taken without a feasibility study and a strategic action plan related to the operation of the airport, that the environmental impact assessment was not done before the construction of the airport and the demolition of the airport, and that the airport construction process was carried out according to the wishes of the construction company rather than the requirement. The sub-committee also concluded that the same company that got the contract paid 322 million rupees to another company for cutting the trees, entered into a new contract to give tax exemption contrary to the original contract and committed irregularities of 2.22 billion rupees.
How did the estimated initial cost of the airport construction increase? UML MP and committee member Baskota said that he is of the opinion that more studies should be done on the study and use of the soil and the technical aspect. His opinion is different.
What is the basis taken when the Cabinet decided to increase the cost? Baskota is of the opinion that when the construction of the airport has not been completed and there is no full technical test, how did the contractor hand it over to the government?
Another UML MP, Tamang, said that the people recommended for action were not questioned. Those who have been recommended action, their views were not heard in the sub-committee. Since it is a matter between Nepal and China, how did the customs exemption happen? The issue of procedurally exempting customs by creating a check list is called tax exemption, it is mentioned as corruption by covering up the reality and hiding the practice of project implementation under foreign aid," Tamang said about the opinion he was about to submit, "technically we did not look at anything, it was recommended based on what some people at the airport said." Political leadership is also involved in the
decision-making process. The decision to build the airport was made in May 2067. During the time of then Prime Minister Madhav Kumar Nepal, Finance Minister Surendra Pandey and Tourism Minister Saratsingh Bhandari, the cost was estimated at 175 million dollars including Value Added Tax (VAT). On October 6, 2067, it was decided to build on the EPC model and only compete among Chinese contractors.
During the time of the then Prime Minister Baburam Bhattarai and Finance Minister Varshman Pun, the contract process was started under the EPC process on November 6, 2068. The tender was called on 26 Jan 2068. Out of four companies participating, only 3 companies applied. Chinese company CAMC paid the lowest (US$305 million). Later CAMC was ready to negotiate with the authority to reduce the cost.
In July 2069, CAMC proposed to build on Bill of Quantities (BOQ) model instead of EPC.
In August 2070, the meeting of the authority's board of directors led by the civil aviation minister of the Khilraj Regmi-led government, Ram Kumar Shrestha, formed a study committee under the coordination of the former registrar of the Supreme Court, Ramakrishna Timalsena. The committee recommended that the project be constructed on an EPC basis with the cost of the project fixed at USD 264 million (excluding VAT). According to the recommendation of the committee, the Council of Ministers led by Regmi took a decision in December 2070.
2071 On June 8, it was decided to enter into a 'commercial contract' with CAMC. At that time Sushil Koirala was the Prime Minister and Bhim Acharya was the Civil Aviation Minister. "Total Project Cost Inflation Analysis" Prof.Dr. of Institute of Engineering Studies Pulchok. A three-member working group was also formed under the coordination of Engineer Ravindra Shrestha. The task force estimated the cost of construction of Pokhara airport to be 224 million US dollars excluding VAT.
On Chait 8, 2072, an economic and technical agreement was signed between the government of China and Nepal. At that time, the Prime Minister was KP Sharma Oli, Finance Minister Bishnu Paudel and Civil Aviation Minister Anand Pokharel. Two and a half months after that, i.e. on 23rd June 2073, a subsidiary loan agreement was signed between the Government of Nepal and the Civil Aviation Authority.
On June 9, 2074, there was an agreement to revise the government subsidized loan agreement. At that time, the Prime Minister was Pushpa Kamal Dahal, Finance Minister Krishna Bahadur Mahara and Civil Aviation Minister Jitendra Narayan Dev. The subsidized loan agreement was amended on Chait 9, 2074 during the tenure of then Prime Minister KP Sharma Oli, Finance Minister Yuvraj Khatiwada, and Civil Aviation Minister Rabindra Adhikari.
The report is silent about the decision-making authority and political leadership of the said period. Secretary of the committee Ekram Giri informed that the report is being prepared to be submitted to the chairman of the committee Pokharel on Monday. The report of Pokhara airport is ready to be handed over to the chairman of the committee. The sub-committee coordinator will submit the report to the Speaker at Parliament House New Baneshwar on Monday at 1 pm, Giri said.
