Loan Instalment Amount of Pokhara Int’l Airport Exceeds Income Target

February 27: Pokhara Regional International Airport (PRIA) Office aims to earn Rs 300 million annually. However, the annual instalment to be paid is Rs 2.4 billion which includes the principal and interest on the loan taken for the construction of the airport.

The instalment payment period of this airport, which has been in operation since January 1, starts from mid-March. The Government of Nepal is scheduled to pay the first instalment of Rs 1.2 billion to the Chinese Exim Bank in this period. The instalment payment period is about to start after the grace period of 7 years for the loan given to Nepal Civil Aviation Authority by the government through the bank is about to end.

The authority has already said that it will not be possible to pay the instalment with the income generated by the operation of Pokhara International Airport. However, CAAN says it is not under pressure to pay the instalment this time. According to the authority's loan repayment schedule, the instalment must be paid on March 15.

Gyanendra Bhul, the information officer of the authority, said that even if the authority cannot pay the installment, it will be paid through the Ministry of Finance.

Even if the government is not able to pay the instalments, the accumulated profit of the authority is good. According to the authority's data, the accumulated profit of CAAN is Rs 1465.3 billion. The authority will be able to pay the instalments from the accumulated profit.

According to the loan schedule to be paid semi-annually, Rs 1.2 billion should be paid in 6 months, while Rs 2.4 billion must be paid in instalments annually.

The instalments must be paid within 20 years of taking the loan (Ashoj 1, 2092). The government had agreed with the bank in 2072 to build Pokhara International Airport. After Pokhara International Airport came into operation, the Pokhara Airport Office has predicted that the profit of the current fiscal year (FY) will also double.

Jashodha Subedi, the spokesperson of the airport office, informed that the airport, which earned Rs 130 million in the year 2078/79, is aiming to earn more than double (up to Rs 300 million) in the current year 2079/80. Currently, only domestic flights are operating in Pokhara.

Gyanendra Bhul, the information officer of the authority, said that even if the authority cannot pay the installment, it will be paid through the Ministry of Finance.

According to the loan schedule to be paid semi-annually, Rs 1.2 billion should be paid in 6 months, while Rs 2.4 billion must be paid in instalments annually.