Investigation Into the Cost & Quality of the Pokhara Int'l Airport

Nepalese anti-corruption authorities have initiated an inquiry into the construction of Pokhara International Airport which was funded and developed by Chinese state-owned enterprises, upon the publication of an article in Times about the cost and quality of the airport. The $216 million international airport, which China has designated as its "flagship project" within the Belt and Road Initiative with Nepal, was inaugurated in January. Over a decade ago, China consented to provide loans for the airport's construction. Nepal selected China CAMC Engineering, a subsidiary of state-owned conglomerate Sinomach, as the contractor.

The New York Times reported last month that CAMC had inflated the project's cost and hindered Nepal’s quality control endeavors, prioritizing its self-business interests. Shortly after the article was published, documentation relating to the project was seized by Nepal’s Commission for the Investigation of Abuse and Authority from Pokhara’s Civil Aviation Authority offices.

There are also concerns about the airport's ability to produce enough revenue to repay loans to Chinese lenders. Nepali officials sought loan conversion into a grant from Beijing to alleviate financial pressures; however, China has not consented.

Bhola Dahal, a spokesperson for the anti-corruption agency, confirmed that an investigation into the airport was in progress but refrained from disclosing further details due to its preliminary stage. Responding to allegations of project irregularities, he mentioned that an investigation had been launched after receiving a complaint but did not identify who lodged it. Reports from local media indicate that over 20 complaints were received regarding the airport’s construction quality.

Jagannath Niroula, Deputy Director General at the Civil Aviation Authority, stated that anti-corruption investigators spent two to three days in Pokhara examining the airport's construction quality. Several engineers who contributed to the airport informed investigators that building quality was compromised and the project's infrastructure was unsound but these claims are yet to be verified.

Although China's Ministry of Foreign Affairs claimed not to be aware of an investigation into the Pokhara airport, it stressed that Chinese companies operating overseas are expected to adhere to local laws and regulations. It also noted that during construction, CAMC “strictly implemented quality standards and maintained complete records.” CAMC has not commented regarding the investigation.