The private sector is concerned that the investment worth Rs 80 billion made by private investors is at risk as the Gautam Buddha International Airport (GBIA) is not fully operational.
Initially filled with happiness and hope when Nepal’s second international airport was inaugurated on June 2, 2022, the private sector is now filled with worry.
The private sector had been optimistic and hopeful when Nepal’s second international airport was inaugurated on May 16, 2022, and commenced operations. However, they are now distressed.
Despite a year passing since the airport’s operation began, the lack of regular international flights has left the private sector disappointed. Industrial entrepreneurs in the sector are concerned that their investment of over Rs 80 billion in various areas might go in vain.
The private sector demands that the government create an environment for the immediate full operation of the GBIA, citing the risk of squandering their investment worth Rs 80 billion. They accuse the government of not taking any initiative to operate the airport at full capacity. Krishna Prasad Sharma, the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in Lumbini Province, stated that the private sector has invested millions of rupees in hotels and tourism sectors in Lumbini, with the airport as a foundation.
Sharma expressed disappointment as the airport is not being operated efficiently despite the significant investments made by the private sector. He emphasized the increasing frustration among industrialists and businessmen due to the government’s failure to create an environment for regular international flights at the airport, resulting in stranded investments. He stressed that since the private sector invested based on the airport as a foundation, it is crucial for the government to take the initiative for its full operation.
He mentioned investments in large-scale commercial establishments, ranging from high-end hotels to small grocery stores, service providers, and tourism-related industries. He highlighted that businessmen have increased their investments in anticipation of 20,000 people visiting Lumbini once the airport is operational, but the expected returns have fallen short. Furthermore, he pointed out that industrialists’ loans from banks and financial institutions are also at risk.
Likewise, Chandra Prasad Dhakal, President of the Federation of Nepal Chamber of Commerce and Industry, expressed hope as the operation of Gautam Buddha International Airport was initiated during the Prime Minister’s visit to India. He stressed the need for the government to make the airport fully operational to safeguard the significant investments made by the private sector in the tourism industry.
Dhakal emphasized that the private sector made investments based on the expectation of increased business in the Lumbini area once the airport is fully operational and the number of visitors rises. He expressed confidence that the Prime Minister’s visit to India will yield results soon, securing the Rs 80 billion investment made by the private sector.
