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Published on 2013-11-16
REPUBLICA
KATHMANDU, Nov 15: The process to acquire six new aircraft for Nepal Airlines Corporation (NAC) has gained momentum after the government decided to sign grant and loan agreement with China.
The cabinet meeting on Thursday decided to allow the finance ministry to sign the framework for grant and loans to procure six aircraft for the ailing national flag carrier.
As per the decision, Nepal will get six aircraft, including two on grants, at the cost of around Rs 3 billion.
Sushil Ghimire, secretary at the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), said the government has asked the finance ministry to sign the agreement with China as soon as possible. “China is offering us two aircraft, 19-seater Harbin Y-12e and 58-seater Modern Ark 60 (MA60), on grant and also arranging concessional loan for us to purchase 3 Harbin Y-12e and a MA60,” Ghimire added.
As per the negotiations with China, the northern neighbor will provide a grant of Rs 2.98 billion two purchase two aircraft. Similarly, China is arranging concessional loan of Rs 3.61 billion through Export-Import (EXIM) Bank of China for us to buy four aircraft.
According to MoCTCA sources, Nepal has agreed to pay interest of 1.5 percent per annum. The interest rate had been set at 1.75 percent in the earlier agreement. Likewise, the service charge and management expenses of EXIM bank have also been reduced to 0.4 percent of the total loan agreement from 1 percent of the total loan agreement signed earlier.
China will deliver two aircraft on grant within two and half months of the signing of agreement. The remaining four aircraft will arrive after five months.
NAC has already sent design of aircraft livery to the Chinese supplier.
The Civil Aviation Authority of Nepal (CAAN) - the aviation regulator - issued type certification to MA60 aircraft in the third week of October, paving the way for the Chinese jet to enter the Nepali skies.
NAC plans to use the MA60 for mountain flights and on other accessible destinations like Pokhara, Bhairahawa, Biratnagar, Dhangadhi, Nepalgunj and Simara. Similarly, it plans to use the Harbin Y-12e for mountain flights and other remote destinations.
At present, NAC only has a Twin Otter aircraft for domestic operation.
Aircraft procurement plan gains momentum MYREPUBLICA.com - News in Nepal: Fast, Full & Factual, POLITICAL AFFAIRS, BUSINESS & ECONOMY, SOCIAL AFFAIRS, LIFESTYLE, SPORTS, OPINION, INTERVIEW, INTERNATIONAL, THE WEEK news in English in Nepal
REPUBLICA
KATHMANDU, Nov 15: The process to acquire six new aircraft for Nepal Airlines Corporation (NAC) has gained momentum after the government decided to sign grant and loan agreement with China.
The cabinet meeting on Thursday decided to allow the finance ministry to sign the framework for grant and loans to procure six aircraft for the ailing national flag carrier.
As per the decision, Nepal will get six aircraft, including two on grants, at the cost of around Rs 3 billion.
Sushil Ghimire, secretary at the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), said the government has asked the finance ministry to sign the agreement with China as soon as possible. “China is offering us two aircraft, 19-seater Harbin Y-12e and 58-seater Modern Ark 60 (MA60), on grant and also arranging concessional loan for us to purchase 3 Harbin Y-12e and a MA60,” Ghimire added.
As per the negotiations with China, the northern neighbor will provide a grant of Rs 2.98 billion two purchase two aircraft. Similarly, China is arranging concessional loan of Rs 3.61 billion through Export-Import (EXIM) Bank of China for us to buy four aircraft.
According to MoCTCA sources, Nepal has agreed to pay interest of 1.5 percent per annum. The interest rate had been set at 1.75 percent in the earlier agreement. Likewise, the service charge and management expenses of EXIM bank have also been reduced to 0.4 percent of the total loan agreement from 1 percent of the total loan agreement signed earlier.
China will deliver two aircraft on grant within two and half months of the signing of agreement. The remaining four aircraft will arrive after five months.
NAC has already sent design of aircraft livery to the Chinese supplier.
The Civil Aviation Authority of Nepal (CAAN) - the aviation regulator - issued type certification to MA60 aircraft in the third week of October, paving the way for the Chinese jet to enter the Nepali skies.
NAC plans to use the MA60 for mountain flights and on other accessible destinations like Pokhara, Bhairahawa, Biratnagar, Dhangadhi, Nepalgunj and Simara. Similarly, it plans to use the Harbin Y-12e for mountain flights and other remote destinations.
At present, NAC only has a Twin Otter aircraft for domestic operation.
Aircraft procurement plan gains momentum MYREPUBLICA.com - News in Nepal: Fast, Full & Factual, POLITICAL AFFAIRS, BUSINESS & ECONOMY, SOCIAL AFFAIRS, LIFESTYLE, SPORTS, OPINION, INTERVIEW, INTERNATIONAL, THE WEEK news in English in Nepal
