Parliamentary Report Reveals Widespread Corruption in Pokhara Regional International Airport Project

A detailed study report submitted to the Public Accounts Committee of the federal parliament has revealed extensive financial irregularities, procedural lapses, and possible corruption in the construction of Pokhara Regional International Airport, casting a shadow over what was once hailed as one of Nepal’s most ambitious infrastructure undertakings.

The report, prepared by a parliamentary subcommittee led by MP Rajendra Prasad Lingden, follows months of field inspections and consultations with local stakeholders, technical experts, and community members. Formed on Jestha 27, 2081 BS, the subcommittee carried out its on-site assessment between Asar 23 and 25, ultimately presenting a troubling account of mismanagement and questionable decisions made throughout the project’s life cycle. Built with loan assistance from China’s EXIM Bank at an estimated cost of Rs 22 billion, the airport was completed on December 29, 2022, and formally came into operation on January 1, 2023. However, the facility has yet to receive regular international flights and is currently limited to domestic operations, despite being marketed as Nepal’s second international gateway.

According to the report, several key items outlined in the original agreement were left incomplete, though payments were made in full. Millions of dollars were spent on materials such as gravel and soil for the construction of infrastructure like the runway, taxiway, apron, and drainage systems, yet there is no documentation or evidence that this work was actually carried out. Similarly, payments were made for compacting and layering soil that was never delivered or utilized, with figures exceeding USD 11 million in total for tasks that remain either partially completed or entirely absent.

The agreement clearly stipulated that all required facilities and equipment to make the airport fully operational should be covered within the fixed EPC budget. However, several items, including the procurement of HVAC systems and fuel storage facilities, were funded through the Civil Aviation Authority of Nepal’s internal budget. These deviations not only violated the original contractual terms but also suggest efforts to conceal cost overruns and inflate spending beyond what was initially approved.

Equally concerning are the flaws discovered in the technical design of the airport. One major finding revealed that the western section of the runway was constructed nearly 20 feet below the natural ground level, a decision that has directly compromised aircraft landing and takeoff operations. This error has rendered the Precision Approach Path Indicator (PAPI) lights on both ends of the runway unusable, which, according to aviation safety protocols, significantly affects the airport’s operational safety. Despite these unresolved issues, the Civil Aviation Authority of Nepal issued a handover certificate to the Chinese contractor, China CAMC Engineering Co. Ltd., even as multiple components of the project remained unfinished.

In addition, the report pointed out that the excavation of Chhinedanda hill, which was required to align the airport infrastructure with the surrounding geography, was not conducted by the main contractor as agreed in the EPC model. Instead, the authority hired a separate contractor and paid Rs 322 million for the task, a move that not only breached the contract but also exposed the project to further financial inconsistencies. Supervision and monitoring responsibilities, which were meant to be handled by internationally appointed consultants at a cost of USD 2.8 million, were instead carried out internally by CAAN, violating oversight provisions and compromising the objectivity of the construction evaluation process.

The report further highlights instances where budget allocations were manipulated. Specific line items were reduced by more than USD 850,000, only to be reintroduced under different categories—suggesting a deliberate effort to obscure actual costs and justify unauthorized spending. In some cases, items listed as “additional” costs were in fact part of the original scope, raising red flags about transparency in financial reporting.

Given the depth and breadth of the irregularities, the subcommittee has called for immediate investigation by the Commission for the Investigation of Abuse of Authority (CIAA). Several high-ranking officials have been named, including Pradeep Adhikari, the current Director General of CAAN and former Project Chief; Binesh Munakrami, the current Project Chief; and Chandmala Shrestha, Director of the National Pride Project. Others identified include engineers, administrators, and former CAAN Director Generals Sanjiv Gautam and Rajan Pokharel. The report recommends that all current officials involved be suspended immediately and that legal action be initiated against both current and former personnel found to be complicit in financial mismanagement and corruption.

Despite the airport’s grand vision to serve as a hub for international connectivity and tourism in the western region, its present status reflects little of that ambition. With only domestic flights operating and critical infrastructure still lacking or non-functional, the airport’s utility remains minimal more than a year after its inauguration.

The Public Accounts Committee has announced it will hold further deliberations on the report before making a formal decision. However, growing public concern and mounting pressure from various stakeholders underscore the urgent need for accountability, transparency, and institutional reform in Nepal’s infrastructure development sector.

Read Full Report: