Is Pokhara International Airport China.s Debt Trap ?
The concept of Pokhara Airport was prepared in 1971 by King Birendra to make Pokhara a tourist center. The German DIWI conducted the study, followed by a feasibility survey by JICA in 1988. ADV backed out saying that the loan could not be raised.
In this time, Nepal and India agreed to give air space for this airport. When the Maoist leader Baburam was the Prime Minister 2011, the Maoist leader Barshaman Pun was the finance minister. This airport was considered a project of national pride. In 2011, an MoU was agreed with China's CAMG. After that, China said that only those on the EXIM Bank list will be allowed to bid. 22 companies bought the firm, 9 participated in the bid, out of which 6 were not in the bank's list. Among the top 3 Chinese company, CAMC said that it would be made at $305 million, Sino at $337.82 million and the other one at $389 million.
It was 85 percent more expensive than the rate that Nepal would make by itself. 50 million dollar commission was attached to it.
Jagdishchandra Pokharel, Vice President of Planning Commission, He said we can build it on 137, M. No one spoke.
In 2013, Nepal was asked to request a loan.
215.96 million were contacted in 2016. After the government of Sushil Koirala of Congress came, it was again correct at 215 million. But the condition was that the income of the airports across Nepal should be put into this loan account.
In 2016, UML President KP Oli became the government. He went to China and agreed that 25 percent would not be charged interest, 75 percent would be charged 2 percent interest, and a 7-year grace period, and the agreement would have to be paid in 20 years.
Oli laid the foundation stone on 13th April 2016, construction started from 1st November 2017. Pokhara International Airport was inaugurated on January 1, 2023 by Maoist leader and Prime Minister Prachanda.
Can Nepal pay the debt?
The 7-year grace period is about to end. In the remaining 13 years, installments are to be paid in 6-month intervals.
Current income is 13 times less. Himalayan Air, which is invested by Tibetans and Nepalis, and Nepali small planes are doing domestic flights. Gautam Budha International Airport was built with loans from ADV and OPEC. Both airports are in trouble as India does not provide airspace to both airports. Due to the fact that it is an airport built by China, India has also blocked permission for Nepali Buddha Air to fly from Pokhara to Delhi, Banaras, Dehradun in India.
How will Nepal repay China's debt when there is no income? The Civil Aviation Authority has also kept silent about this.
Why did Germany's DIWI, JICA, ADB withdraw? This was the reason.
Why is China reluctant to give loans? How to say that it is not to trap Nepal in debt?
When this airport was inaugurated on January 1, 2023, the provincial chief minister requested the Chinese ambassador in front of the prime minister to convert this loan into a grant. But the ambassador claimed that this airport, which was not mentioned in the agreement, was built under China's BRI. There is no provision in BRI's policy to convert loans into grants.
Some of the loan projects taken up by BRI-
In 2010, China loaned Sri Lanka's Hammantota port $1.5 billion. China occupied this port for 99 years after failing to pay the debt.
The same is the case with Mattala Rajapaksa Internation Airport.
China, which has invested in Pakistan's Gwadar port, has occupied it for 40 years.
China, which has invested 9.5 million dollars in the Montenegro highway, has also taken over that highway.
The existence of those countries is in crisis due to the BRI loan made on the China Maldives Friendship Bridge, Kenya's Port Railway.
It is certain that Nepal will not be able to pay China's investment in Pokhara International Airport. If so, will China occupy this airport?
China does not like American MCC in Nepal. China understands that this plan is meant to weaken China.
Recently, the Chinese ambassador has been requested to operate the Pokhara air service directly from China through the Nepali helping hands of China. It has been asked to build a tunnel to monitor the MCC project area. It has been requested to send as many tourists as possible. According to Ambassador Song, China's GDI project (Food and Poverty Alleviation) will be increased. The CPC of China has invited the UML leader to Beijing and put forward a proposal to work together.
In other words, China seems to be moving aggressively in Nepal.
KOICA, JICA, MCC
Nepal should seek grants, not loans
Nepal has many friendly countries. MCC of America, KOICA of Korea, JICA of Japan etc. They are giving huge amount of subsidy not debt. Nepal can take grants from them for Nepal's roads, electricity, other development and poverty alleviation and employment promotion. Why Nepal does not look for grants like MCC, JICA, KOICA? Grants increase friendship, can provide food, Cloths and shelter to poor Nepalis.
Nepalese should understand that taking loans in a projects like Pokhara International Airport that cannot generate income means that Nepal is sinking.
Newsdesk
