A government inquiry into Nepal's $216 million Pokhara international airport revealed that corruption allowed a Chinese contractor to evade obligations and deliver inferior work. The parliamentary report highlighted that China CAMC Engineering Co. failed to meet specifications and avoided tax payments, largely due to insufficient oversight from Nepal's Civil Aviation Authority. The airport, financed by a long-term Chinese loan, opened with diminished passenger traffic projections, serving as a cautionary tale for Nepal regarding extensive borrowing from China for infrastructure projects.
In a probing 36-page report, a parliamentary committee revealed that the $216 million Pokhara airport project fell victim to corruption and oversight failures, primarily benefiting the Chinese contractor.
The investigation found that China CAMC Engineering Co. failed to fulfill its obligations, ignored tax responsibilities, and delivered substandard work, reflecting a broader issue of mismanagement.
Despite the financial burden posed by a 20-year Chinese loan, the airport has failed to attract significant international traffic, landing only one flight per week.
This situation serves as a cautionary tale for Nepal about the dangers of heavily borrowing from China for large infrastructure endeavors, resulting in economic distress.
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