Pokhara Airport fails to take off

On 1 Jan 2023, Pokhara International Airport, built under a Chinese soft loan, was inaugurated with much fanfare. The inauguration also invited a short-lived criticism after China placed it under the Belt and Road Initiative, even though the agreement for the airport project was finalized before Nepal became part of the BRI. It has been more than five months since the airport came into operation but there are no signs of the airport receiving international flights. The airport authorities say talks are going on with some airlines in India, China, and other countries but the chances of international airlines making flights to and from Pokhara airport in the near future appear slim. Without international flights, the airport cannot make sufficient income to sustain itself. According to Civil Aviation Authority of Nepal (CAAN) officials, the airport should conduct at least 100 daily domestic flights and 50 weekly international flights in order to sustain its operations. The airport has to pay US$ 3.2m alone in annual interest. Officials say the airport must have an income of at least Rs 1.5bn annually. If used to its full potential, the airport could raise income to sustain its operating expenses but that would not be enough to pay the installment of loans including interest. Some economists are of the opinion that there was no proper homework about the operational side of the airport. According to them, it was necessary to make an action plan on how to operate the airport constructed with a loan. “The loan was taken without taking these issues into consideration,” says economist Keshav Acharya. Nepali authorities didn’t even give a thought as to whether India would allow flights from Pokhara to Indian cities, given that it was being built with Chinese loan. For the Pokhara International Airport to be commercially successful, Nepal has to target Indian and Chinese tourists and establish direct flights to major cities of the two countries. Sadly, none of these has happened till date. While CAAN has been claiming that some international airlines have shown interest to start their flights to Pokhara, they are yet to realize. Even before the airport was inaugurated, Nepal’s leading private airline, Buddha Air had announced that it would start Pokhara-Varanasi flights from the new international airport. The airline had said that it was preparing for three weekly flights from Pokhara to Varanasi as well as flights from Pokhara to Delhi. Aviation experts say the government should start diplomatic initiatives with India. According to them,  a special agreement should be made with India to make both international airports in Pokhara and Bhairahawa operational. No aids, only concessional loans In 2014, Luo Yan, chairman of the China CAMC Engineering Co. Ltd., and Ratish Chandra Lal Suman,  director general of CAAN, had signed a contract worth $215.96m for the construction of the airport.   Then, on 21 March 2016, China Exim Bank and the Government of Nepal signed a government concessional loan (GCL) agreement worth RMB 1.37bn for the Pokhara International Regional Airport Construction Project.  According to AidData, a research lab based in Washington DC, 25 percent of the loan value (RMB 355.9m) was provided without interest and with a maturity period of 20 years and a grace period of 7 years. The remaining 75 percent of the loan value (RMB 1.02bn) was provided at a 2 percent interest rate, 20-year maturity period and a 7-year grace period.  The AidData report further says Nepal used the proceeds from this loan agreement to on-lend to CAAN at a 5 percent interest rate (with a 20-year maturity period and a 7-year grace period) through a Subsidiary Loan Agreement (SLA) that was finalized on 5 June 2016.   The airport construction project was delayed after China Exim Bank set a condition that a joint escrow account should be set up into which CAAN—the project executing agency—would have to deposit the income generated from all its airports, according to the report. CAAN refused to do so which delayed the release of the project funds, and construction of the airport stalled. However, CAAN and China Exim Bank eventually agreed in 2017 to only deposit revenues generated by Pokhara International Regional Airport into the escrow account.  It involves the construction of a 2,500-meter-long and 45-meter-wide airport that can accommodate medium-category jets like the Boeing 757 and the Airbus A320. It also involves the construction of an apron, international and domestic terminal buildings, an air traffic control tower, a cargo terminal building along with an airport hangar, AidData report says.  Vijay Kant Karna, executive chairperson at Center for Social Inclusion and Federalism (CESIF), says there is no aid component as it is 100 percent loan taken from the Chinese bank, so it is inappropriate to publicize it as aid from China.  “The only concession is that we do not have to pay the interest of 25 percent loans,so if we say it is a loan it gives another message to the public,” he adds.  Questions of viability A study conducted by CESIF observes that the airport is an example of the state driving a development project for the sake of political imagination, while muting concerns about commercial viability and corruption.  According to the report, Pokhara airport is not economically viable and CAAN “would be under pressure to make investments for Pokhara International Airport.” CAAN, as a regulatory agency, runs on the revenue generated from commercially viable projects and also bears the cost of construction and operation of commercially non-viable airports. It is not yet clear who is going to pay the gap between repayments and revenue for the airport. Even once the airport is constructed it will have significant technical shortcomings, limiting commercial viability.  According to the CESIF report, given the geography and climate of the region, the airport operating minima are problematic, limiting the operation of big aircraft. Questions about commercial viability and national interests also came to the fore when the Exim Bank of China insisted that an escrow account should be opened into which the CAAN would deposit the income generated from all its airports. The work over airport construction was thus delayed for months in early 2017 over the issue, the report says.  After intense negotiations, the Exim Bank issued a letter in April 2017, saying it had amended its earlier condition, allowing CAAN to deposit revenues generated by Pokhara International Airport. Jagadish Chandra Pokharel, former vice chairman of the National Planning Commission, says that the Pokhara International Airport’s actual cost was only $132m. In the research by CESIF, Pokharel further says, the airport could have been built at a cost of $100m.  “There are so many inconsistencies and irregularities to suggest Pokhara airport will become a burden to the country,” he says.  Pokharel’s opinion is echoed by a senior government official with direct knowledge of the developments regarding the airport.  He says senior Chinese contractors, in Dec 2017, had requested him to lobby to add several components to the airport like parking bays, promising they would get more loans from China. “Their intention was to boost their profit by increasing the costs of the airport, which would have also increased corruption,” says the official. He suspects that China could have long-term geo-strategic interests in the operation of the Pokhara International Airport. “If CAAN fails to pay the debt, the Chinese could take up operation of the airport, just like the Hambantota port in Sri Lanka.” Is China ready to convert loans into grants? It is certain that Pokhara International Airport cannot pay the loan to the Chinese bank.  That is why some Nepali politicians have started requesting the Chinese side to convert a 75 percent loan into a grant. But there have not been any negotiations between the two sides over the matter. This is likely to cause friction between Nepal and China.   Tourism sector awaits international flights With the construction of the international airport, there was an expectation that they would see a huge number of tourists. Many new hotels were built around the airport. People who were already involved in the hospitality industry expanded their investments. Almost more than half of tourism entrepreneurs took loans to expand their business for which they have been paying high interest. But their returns so far have been dismal.  Every day, they turn their heads up to the sky to count how many planes are landing in the city. “I always hope to host a number of guests in our hotel,” says Sita Kunwar, owner of a new hotel near the Pokhara International Airport Gate. She invested around Rs 20m to build the hotel, but now she is worried about paying off the loan.  Another hotel owner Bhuwan Bhandari shares a similar plight. With an assumption that the number of foreigners and business persons will pour in Pokhara once the airport comes into operation, he upgraded the hotel, but the visitor numbers to the city have not increased as expected. Bimal Karki also shifted from Kathmandu to Pokhara with the hope of setting up a hotel business. He built a hotel near the airport but now fears his investment could sink.  Considering the benefits of the international airport, 25 trekking agencies, almost a dozen travel agencies, and almost 100 new hotels have entered the tourism business in Pokhara. They now stare at an uncertain future. 

US teen kills 3 in New Mexico before shot dead by police

An 18-year-old gunman has killed three people before police shot him dead outside a church in the state of New Mexico, Aljazeera reported. Several people, including two police officers, were also wounded by the armed teenager who went on a shooting rampage on Monday in a residential area of Farmington, New Mexico, about 290km (180 miles) northwest of Albuquerque, police said. Farmington Deputy Police Chief Baric Crum said in a news briefing that a total of nine people, not counting the suspect, were victims of the shooting, but it was not clear whether that tally included the three people who were killed. Officers responding to several calls about a shooting found “a chaotic scene” where a man was firing at people on a residential street, Crum said. The gunman, identified only as an 18-year-old, was believed to have acted alone, police said. There was no information provided about the three people killed, and no motive was readily apparent. “We are still trying to determine why he was in this neighbourhood,” Crum told reporters. Some of the incident was captured in video footage posted to the social media platform TikTok and confirmed as authentic by Farmington police spokesperson Shanice Gonzales. It shows a man dressed in black pacing around a driveway outside the First Church of Christ Scientist, carrying what appears to be a handgun before he is later seen being shot dead by police in front of the building, according to Aljazeera. The man who apparently was recording the video is heard describing the scene to someone else and referring to the suspect walking in circles beside the church. The two injured officers, one from the Farmington Police Department and one from New Mexico State Police, were listed in stable condition at San Juan Regional Medical Center, according to police.

Farmington, a commercial hub for oil and gas drilling and a shopping destination for the nearby Navajo Nation and smaller towns in the so-called four-corners area where the states of New Mexico, Arizona, Colorado and Utah meet, has experienced at least two other high-profile incidents of deadly gun violence in recent years. Police in Farmington last month killed an armed homeowner at his house, then exchanged gunfire with his wife, after officers showed up at the wrong address in response to a domestic violence call. Farmington also was the scene of a deadly high school shooting in December 2017 in which a gunman killed two students before taking his own life. The shooting on Monday is among the latest in at least 225 mass shootings recorded in the United States this year, according to the nonprofit group Gun Violence Archive, Aljazeera reported. The group defines a mass shooting as any in which four or more people are wounded or killed, not including the attacker.

Pedaling for a cause

Many young people aspire to pursue higher education abroad after completing Grade 12. Often, they believe that there are limited opportunities in Nepal, and look to migrate to foreign countries. However, Sandesh Subedi from Kushma, Parbat, holds a different opinion. Instead, he is actively serving his nation by spearheading a campaign for blood donation. Sandesh knew about the significance of blood in human life during a critical period in his own family. When he was in Grade 6, his mother was diagnosed with a brain tumor, and their family faced a shortage of blood for her treatment. Tragically, Sandesh’s mother eventually passed away. However, this experience inspired Sandesh to honor her memory by actively engaging in blood donation. “I realized the critical need for blood when my mother was undergoing treatment at Neuro Hospital in Kathmandu. It was difficult for our family to arrange blood during that period,” Sandesh shared. Sandesh has taken a unique approach to spearhead his campaign by combining it with cycling. The inspiration to incorporate cycling into his mission came to him when he had the opportunity to meet world cyclist Ajit Baral. Recognizing the numerous health benefits associated with cycling, Sandesh saw it as the perfect medium to promote his blood donation campaign. “After meeting Ajit, I was inspired to use cycling as a means to advocate for blood donation,” Sandesh shares. Not only does cycling promote physical well-being, but it also provides an excellent platform to raise awareness on the importance of donating blood, he added. “If a patient needs blood, it has to be given by somebody. If you don’t donate blood, it doesn’t mean you will have excess blood in your system. Similarly, donating blood does not deplete your own blood supply,” Sandesh said, adding, “A person can donate 350ml of blood at a time, and it can be preserved for three to four weeks, providing a valuable resource for those in need.” “Contrary to misconceptions, blood donation does not harm the body. The donated blood replenishes within 24 hours. Individuals in the age group of 18-60, weighing more than 45 kg, and in good health without any chronic diseases can donate blood. After donating once, it is possible to donate blood again after three months.” During his journey, Sandesh shares these vital pieces of information with the people he meets. "It is important for people to understand that even if we don't donate blood, it will eventually get destroyed within our bodies," he stated. “It is important to educate people and debunk the misconceptions surrounding blood donation. Many individuals still hold the wrong belief that donating blood will make them weak. Meanwhile, countless lives are being lost due to blood shortages." Sandesh successfully completed the 1,028-kilometer journey in one month. During the trip, he managed to actively engage 558 individuals in the blood donation program. During the trip, Sandesh received memberships of Nepal Red Cross Society and the Nepal Blood Donors' Society. “The support and encouragement of these organizations played a significant role in motivating me throughout the journey," he added. Collaborating with the youth, students, and local communities, Sandesh took the initiative to organize awareness programs about blood donation in various parts of the country. "Blood donation brings about dual benefits," Sandesh explained. "Firstly, when one donates blood that would otherwise be naturally destroyed within the body, it revitalizes the donor's own system. Secondly, and most importantly, it saves lives." Sandesh believes that blood donation is one of the most profound acts of service that one can perform. Reflecting on his journey and the impact of his campaign, he said, "Throughout this endeavor, I have been blessed with the gratitude of numerous people. Even though my own mother departed this world prematurely, I take solace in knowing that I have fulfilled her dream as she used to tell me social service is the greatest religion.” Sandesh has compiled an extensive list of activities pertaining to blood donation. He aims to expand the reach of his campaign to districts that were not covered during the Mechi-Mahakali cycling tour. His primary goal is to raise awareness and educate people in those areas about the importance of donating blood.  

Stolen artifacts returned to Nepal

The Embassy of Nepal in Washington, DC has received  40 Nepali wooden artifacts dating back to the 19th-20th century from the Homeland Security Investigations (HSI) of the Department of Homeland Security (DHS), USA.   The artifacts smuggled from Nepal were confiscated in Honolulu, Hawaii by the United States Customs and Border Protection on 18 Aug 2010. Nepal  had officially requested the Government of the United States to return these objects to Nepal in 2011.

In the handover ceremony held on Sunday, Nepal’s Ambassador to the US, Sridhar Khatri, extended his sincere thanks to the DHS, the Department of State, media and art and heritage campaigners for their support in retrieval and repatriation of the artifacts. He particularly appreciated and thanked the investigators and staff members of the DHS and HSI for their hard work and dedication in recovering the objects of art handed over today and other artifacts that were recovered earlier.

Deputy Assistant Director of the Homeland Security Investigations (HSI) Ricardo Mayoral expressed his happiness on the successful return of these important artifacts to the Government of Nepal after long investigations. He also assured that the HSI will extend fullest cooperation to the embassy for repatriation of other stolen and lost artifacts of Nepal. 

Acting Deputy Assistant Secretary of the Department of State Scott Urbom stated that the United States will continue its cooperation and collaboration with Nepal to preserve and restore its rich art and architectural heritages. He said that the successful recovery of the illegally exported artifacts is a major achievement.  The trove of the artifacts handed over to the Embassy includes 39 engraved and painted wooden panels and a carved wooden shrine, among which the four panels were randomly selected for display during the handover ceremony.

Photographs of other artifacts were displayed separately to give the audience a flavor of what the remaining pieces would look like. These precious Nepali artifacts are estimated to date back to the period between the 19th and 20th century. They signify various aspects of Lord Buddha’s life and his teachings as well as the Buddhist religious and cultural values and practices. As part of efforts to recover and repatriate the lost and stolen heritages of Nepal, the embassy has been actively engaged with relevant agencies of the governments of Nepal and the United States. 

The embassy had repatriated to Nepal seven artifacts—stone statues of Uma Mahesvara, Chaturmukh Shivlinga, Nagaraja, Padmanpani and Shakyamuni Buddha—on 18 May 2022; and a wooden statue of Nritya Devi and a standing stone statue of Lord Buddha on 28 April  2023. The embassy said it will send the artifacts received on Sunday to the Department of Archaeology of Nepal as soon as possible.