The final stage of relocating the Sinamangal Air Fuel Depot has begun, with the Pulchowk-based Institute of Engineering Studies preparing the Detailed Project Report (DPR). The Nepal Oil Corporation (NOC) received the draft report in mid-June. An agreement, signed on 20 Nov 2024, stipulated that the DPR be prepared and submitted within six months, with the final report set for submission by July 11.
According to Pradeep Kumar Yadav, depot chief engineer, all processes are progressing as planned, and the new depot will employ cutting-edge technology. The DPR preparation contract was awarded for Rs 1m. The relocation was approved by the Council of Ministers on 12 Aug 2024, due to the depot’s proximity to Tribhuvan International Airport (TIA) and nearby residential areas. Yadav stated that the relocation is being coordinated with the Air Transport Capacity Enhancement Project under the Civil Aviation Authority of Nepal (CAAN).
The 50-year-old Sinamangal depot, operated by NOC, has a storage capacity of 7,660 kiloliters, distributing 400 kiloliters of aviation fuel daily. It consists of three 1,600-kiloliter tanks, three 760-kiloliter tanks, and eight 70-kiloliter tanks, holding roughly a month’s supply. The new site, located in Guhyeshwari near the Nepal Army Golf Course, has been allocated 60 ropanis of land. However, about 15 ropanis remain occupied by army structures and trees. Yadav noted that while CAAN has designated the land, no formal acquisition agreement has been finalized.
The NOC has repeatedly requested CAAN to formalize the land agreement, but site clearance remains incomplete. This delay has hindered preparations to invite construction bids at the start of the next fiscal year. Additional challenges include incomplete allocation of the designated land, pending removal of Nepal Army structures, and unfinalized land ownership and transfer modalities between the Corporation and CAAN. Despite these issues, a four-room site office has been constructed, and road access to the relocation site has been completed.
The government has prioritized relocating the depot due to safety risks posed to residents, highways, and aviation operations.
Meanwhile, CAAN’s Air Transport Capacity Enhancement Project, supported by the Asian Development Bank (ADB), includes airport upgrades and a parallel taxiway construction. International Civil Aviation Organization (ICAO) standards require a 172.5-meter distance between the runway center and taxiway, meaning nearly half of the current depot must be removed. Regulations prohibit hazardous depots within 75 meters (sensitive area) or flammable depots within 150 meters (safety area) of runways. CAAN has pushed for relocation for five years, but the NOC previously cited budget and land shortages as obstacles. The July 21 Saurya Airlines crash accelerated compliance with the government’s decision.
The project’s estimated cost is Rs 6bn, as per the preliminary DPR. The new depot in Guhyeshwari will feature five 3,000-kiloliter storage tanks. CAAN plans to lease 60 ropanis from the Pashupati Area Development Fund for 80 years. Government rules require the NOC to pay rent from the agreement signing date, but it has requested a waiver during construction. A five-year rent exemption is provisioned under regulations. CAAN’s board agreed to waive construction-period rent, pending approval from the Ministry of Civil Aviation The ministry’s delay has stalled the agreement. The NOC estimates the depot’s construction will take three years.
