Civil Aviation Authority of Nepal (CAAN) is preparing to terminate the contract with no-show Chinese contractor company Shanxi Construction Engineering Group who took the responsibility of 300m runway extension of Tribhuvan International Airport (TIA).

Shanxi had signed contract to extend the runway of sole international airport of country by 300 meters at its southern end or runway 02 in last October however, the company didn’t commence the work complaining about increment in prices of construction materials.

Spokesperson for CAAN Mr. Birendra Prasad Shrestha said, “We are now preparing to terminate the contract with Shanxi and announce new tender.”

CAAN had awarded the contract to the Chinese contractor with estimated amount of Rs561.18 million however, the company is not in contact after the agreement.

This is the second time CAAN’s runway extension plan has been cancelled and the project is now likely to be delayed by a year. Previously CAAN had contracted Spanish company Constructora Sanjose for the same project but was ripped off in end of 2016 for performing only 17% of work in almost 4 years from the time of contract period. CAAN had invited bids in mid-2017 and broke the project into 4 packages and provided it to different contractor.

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CAAN to terminate Chinese contractor for failing to initiate TIA runway extension project