May 6: A high-level government task force has suggested that the property of Tribhuvan International Airport (TIA) should be monetized for the construction of an international airport in Nijgadh.

The report of the study group, formed to provide suggestions regarding the operation and construction of Nepal's international airports in the Public-Private Partnership (PPP) model, has recommended monetization of the property of TIA as a second alternative.

The first option suggested by the task force is to advance Tribhuvan International Airport and Nijgadh as a single project.

Former secretary Shankar Prasad Adhikari, who is the coordinator of the task force, proposed the option of monetization under the concept that a potential company would be entrusted with the operation of Tribhuvan International Airport and the government would take a certain percentage of the revenue to use that amount to build Nijgarh Airport.

The report of the task force suggests adopting the lease (rent), operation and transfer (LOT) model under the PPP and monetising the property of Tribhuvan Airport.

According to the report, such a company should have experience in asset monetization, should have operated at least one international airport under the lease and transfer model, and the company's assets should be at least USD 1 billion.

It is mentioned in the report that even if the operation and management of the airport are given to a private company, the government should take responsibility for the airport’s security and immigration.

According to the report, India and other countries are also monetizing their airports. Officials of the task force say that it may be suitable for Nepal as well.

Ghan Shyam Ojha, an investment expert who is also a member of the task force, said that international airports such as Shivaji Chhatrapati Maharaj Airport in India were created through monetization of assets. Although airports in Nepal are still unable to generate sufficient income, it is recommended and suggested to make Nijgadh through the PPP model.

"Currently, Tribhuvan Airport is the airport that generates the most revenue," said Ojha, "The amount that comes from asset monetization can be used for Nijgadh." 

The report mentions that 25 airports in India under the Airports Authority of India (AAI) are preparing to go for asset monetization from 2022 to 2025 in accordance to India's National Monetization Pipeline (NMP). Bhubaneswar, Varanasi, Amritsar, Trichy, Indore, Calicut, Coimbatore, Nagpur, Patna, Madurai, Udaipur, Dehradun, Rajahmundry airports are in this pipeline. The Airports Authority of India has identified 13 airports to be operated, managed and developed through the PPP model.