Pokhara International Airport, one of Nepal’s most high-profile infrastructure projects, has been blemished by serious allegations of corruption, cost inflation, and poor planning. Here’s a breakdown of the major issues uncovered by parliamentary investigations and media reports:
Key Corruption Allegations
1. Inflated Project Cost
The initial cost estimate was around USD 175 million, but the final contract with the Chinese contractor (China CAMC Engineering) was USD 305 million-an 86% increase. This massive cost jump happened after shifting the project model from EPC (Engineering, Procurement, and Construction) to BOQ (Bill of Quantity), violating procurement regulations.
2. Illegal Tax and Customs Exemptions
The contractor received unjustified tax and VAT exemptions. Nepal’s government lost an estimated NPR 2.22 billion (approx. USD 17 million) due to customs and tax waivers granted without proper legal grounds.
3. Low Quality and Technical Shortcomings
Investigations revealed that the airport’s runway elevation and design flaws limit the use of full-capacity aircraft like Airbus A320s. There were no proper soil tests, and multiple engineering errors were noted.
4. Lack of Transparency in Procurement
The contract was awarded without a competitive bidding process. There were reports of political influence and backdoor dealings during the approval and funding stages.
5. Political Complicity
The Public Accounts Committee (PAC) in Nepal’s parliament found that several decisions were politically motivated, bypassing technical evaluations. Various governments were complicit in allowing the flawed procedures over a span of years.
Consequences and Concerns
Public debt has increased, as the project was funded by a loan from the Chinese Exim Bank. The airport is not fully operational for international flights due to technical and regulatory shortcomings, raising concerns about whether it can ever meet its intended purpose. There is a risk of Pokhara Airport becoming a “white elephant”—an expensive project that fails to deliver benefits.
In Conclusion, the Pokhara International Airport case exemplifies how corruption, mismanagement, and lack of oversight in large infrastructure projects can severely damage public trust and economic sustainability. Without strong accountability and transparent governance, similar future projects could face the same fate. Transparent bidding, strict auditing, and political neutrality are essential for large-scale infrastructure success.