Overview
Domestic and international air passenger movements have increased significantly over the past decade, putting stress on Nepal’s civil aviation infrastructure. Kathmandu’s Tribhuvan International Airport (TIA), currently the country’s only international airport, handled 33,672 international flights in 2018, compared to 23,619 international flights in 2013. The airport has an outdated radar system and only one runway. Pre-COVID, the airport handled approximately 400 movements per day (take-off and landing) and at peak times exceeded its stated maximum capacity of 35 flights per hour. The Ministry of Culture, Tourism and Civil Aviation and the Civil Aviation Authority of Nepal (CAAN) have civil aviation infrastructure improvement projects planned in Kathmandu and throughout the country; these are valued at around $1.3 billion over the next fifteen years.
Exports/Imports of Airport and Ground Support Equipment (U. S. $ thousands)
|
|
2016 |
2017 |
2018 |
2019 |
|
Total Local Production |
0 |
0 |
0 |
0 |
|
Total Exports |
0 |
0 |
0 |
0 |
|
Total Imports |
80,525,242 |
211,494,009 |
339,947,624 |
39,534,950 |
|
Imports from the US |
10,678,383 |
12,118,945
|
18,687,115 |
5,907,553 |
|
Total Market Size |
80,525,242 |
211,494,009 |
339,947,624 |
39,534,950 |
|
Exchange Rates (USD) |
106.65 |
107.92 |
104.4
|
112.9 |
(total market size = (total local production + imports) - exports)
Total Imports: Trade and Export Promotion Center, Nepal - https://www.tepc.gov.np/
Imports from U.S.: Trade and Export Promotion Center, Nepal - https://www.tepc.gov.np/
Leading Sub-Sectors
The best sub-sector prospects for U.S. businesses include sale of radar systems, aeronautical communications equipment, navigation aids, runway lighting systems, and an array of ground support and safety equipment.
Opportunities
The Government of Nepal has launched a number of major civil aviation infrastructure projects in recent years. These projects offer U.S. companies the opportunity to supply ground support equipment. Due to increasing runway and airspace congestion, both government actors and the public are advocating for the construction of a second international airport (SIA) to be located to the south of Kathmandu on the plains bordering India. Such projects as the SIA and the upgrading of the control towers of several domestic airports remain in feasibility study phases. However, other projects are already underway, such as infrastructure upgrades at TIA in Kathmandu and improvements at the Buddha Gautam Airport in Bhairahawa, for which tenders have been awarded and construction work has begun. Work has also begun on the fast-track highway to connect Kathmandu to the proposed SIA. Commercial opportunities exist for U.S. businesses for turn-key projects, major equipment sales, and consultancy services with the Government of Nepal.
Construction of the SIA in Nijgadh, Bara district - Estimated first phase cost $1.2 billion.
Master Plan for Civil Aviation Infrastructure Development of TIA in Kathmandu - Estimated first phase cost $92 million. The Asian Development Bank is conducting a study for the second/final phase expansion, which is expected to range in the low hundreds of millions.
Construction of a Regional International Airport in Pokhara - Estimated cost $304 million (contract awarded to China CAMC Engineering Company in May 2014). Expected completion date is in 2021 but it may be delayed due to COVID.
Upgrade of Bhairahawa’s Gautam Buddha Airport as a Regional International Airport. This project is nearing completion but has been delayed due to the COVID outbreak. The airport will continue to source equipment in the future.
Upgrades to a number of domestic airports across the country - the Government of Nepal has allocated $160.5 million for aviation infrastructure development in fiscal year 2020/21 alone, including funding for domestic airport projects. At least seven new domestic airports will be upgraded (Surkhet, Bharatpur, Nepalgunj, Biratnagar, Chandragadhi, Dhangadhi, and Janakpur) and new domestic airports are scheduled for construction in Narayanpur (Dang) and Chuhandanda (Tehrathum).
Resources
Civil Aviation Authority of Nepal
Ministry of Culture, Tourism and Civil Aviation