Second International Airport (SIA)-Project Bank

SECOND (NIJGADH) INTERNATIONAL AIRPORT (SIA)

Geographical Location (Districts)	Bara district (Dhumberwana, Nijgadh) Nepal
Lead Government Agency	The Ministry of Tourism and Civil Aviation & Office of the Investment Board Nepal

PROJECT DETAILS

Project Cost (In USD)	1st phase : 545 Million 2nd phase : 2553 Million 3rd phase : 3467 Million Total : 6565 Million
Project Land Required (in Ha.)	Airside: 901.5 Landside: 450 Airport City: 105.3
Progress	Feasibility study
Project Documents Available	Detailed Feasibility Report
Form of Investment (PPP/Private Investment)	Build, Own, Operate and Transfer (BOOT)
Expected Fiscal Benefits to GoN	Development of SIA will increase the life of Tribhuwan International Airport. It has the ability to turn Nijgadh into an aero-city with high potential to employment generation. SIA has the potential to be the busiest airport in South Asia and one of the most technologically advanced in the world. It provides tremendous opportunities for large volume cargo business, resulting in additional revenues to the GoN.

PROJECT DESCRIPTION AND RELEVANCE/ OBJECTIVES

By 2021, Nepal’s annual international air traffic is expected to reach 20 million passengers, a figure too big for TIA to handle. Hence, Nepal has an urgent situation for the development of a world class airport to accommodate rapidly increasing air traffic demand. This project seeks an investor to take lead in the development of the SIA to international standards. This includes the development of airport city as well.

RELEVANCE TO THE OVERALL ECONOMY

Development of the airport city will have the following features:

i) It will create a business and commercial zone

ii) It will grow as an industrial zone and a big dry port

iii) It will create a tourism and recreation zone

iv) It will develop a public green zone

v) It will be an ultimate response to the growing aviation traffic in the country.

vi) It is expected to provide direct long-haul connectivity to geographies such as North America, Europe, and Australia, enhancing Nepal’s tourism and trade opportunities.

vii) It will address decentralized development focus of federalism by enabling major infrastructure outside the capital city.

viii) It will develop Nepal not just as a destination but as a lucrative transit point between the east and the west.

SALIENT FEATURES OF THE PROJECT

Runway : 3600 m × 45 m × 2
Capable to handle : Airbus- A380
Design air craft for phase I: Class ‘E’