South Asia Subregional Tender

Project Status Approved Sector Subsector Transport air transportThe proposed sector development program will i support civil aviation sector reforms in restructuring of the civil aviation authority of nepal strengthening of regulatory functions management governance and business plan development in operations financial restructuring operational efficiency improvement and civil aviation safety the program component and ii provide project financing for improvement of airport facilities at the tribhuvan international airport tia in kathmandu and gautam buddha international airport in lumbini the investment component. Civil aviation is crucial to transport trade and tourism in the landlocked country and provides indispensable links for the hilly and mountain areas which are inaccessible by other transport modes. Tourism is one of the major economic activities in nepal and is on top of the governments priorities. Foreign exchange earned from the tourism sector in fy2018 is estimated at 563 million which is equivalent to 65 of goods exports. Considering that more than 80 of international tourists come to nepal by air currently through the tia improvement of the civil aviation sector is essential for tourism to flourish and to be channeled toward economic development of the country. The tia presently serves as the unique gateway airport to nepal. Even though the tia plays a critical role in the civil aviation sector of the country as an international gateway as well as a domestic hub its close proximity to the kathmandu city center does not allow its expansion beyond the current airport boundary. The increasing demand should be handled through i the more efficient use of the available areas within the existing airport premises at the tia and ii distribution of the concentrated international air traffic to other airports. Tourism in nepal developed national tourism strategic plan for the period 2016 2025Safety capacity and efficiency of air travel to and from nepal improved.