SANGAM PRASAIN
KATHMANDU, JAN 21 -
Trade unions at the Civil Aviation Authority of Nepal (CAAN) have charged Tribhuvan International Airport (TIA) of misusing its authority by extending the rental agreement with shops, parking lots, duty-free shops, hotels and other services situated inside the airport premises without calling for bids.
CAAN’s amended airport service charge regulations have authorized TIA to double or triple the rental period without inviting tenders.
The CAAN unions alleged the Ministry of Tourism and Civil Aviation (MoTCA) of unilaterally ending the tender process and allowing the TIA management to extend the rental period after it expires. The TIA management has recently extended the rental period of 13 tea and coffee shops, hotels, gift shops, executive lounge, ATMs and handicraft shops.
The management has extended the rental period of the shops for at least three years. The old regulations had a provision of calling for tenders when the rental period ends.
“Extending the tenure of such services without a tender means ending competition with new ones,” Bishnu Prasad Marasini, general secretary of the National Employees Union of Nepal, CAAN said. He added that such a provision would limit the income of TIA and bar new establishments from entering.
The CAAN unions and high-level officials said the move was against the Public Procurement Act. TIA, the country’s sole international airport, generates about 10 percent of its income from such rentals.
The CAAN unions accused the MoTCA of unilaterally incorporating four clauses—31, 47, 67 and 68—in the airport service charge regulations to allow the TIA management to extend the rental period unilaterally.
“The said clauses in the new regulations have not been recommended by CAAN,” Marasini said.
According to him, the unions plan to launch an agitation against the ministry’s decision.
The new airport service charge regulations came into effect on August 10, 2010 superseding the 2006 regulations. Earlier, the regulations had a provision which required inviting tenders at intervals of one to two years.
“CAAN is not in a financially good position, and such a provision means making the organization bankrupt and fulfilling the vested interest of contractors and corrupt officials,” said a CAAN official on the condition of anonymity.
TIA general manager Dinesh Shrestha said that they had extended the rental period based on the new regulations.
“As per the new regulations, the TIA management is allowed to extend the rental period of old shops and other services by
increasing the rent in line with inflation when their terms end,” Shrestha said.
TIA charges a monthly rent of Rs 16,000 per sq ft from shops in the arrival lounge and Rs 11,000 per sq ft in the departure lounge. Hotels and restaurants pay a higher rental than shops.
