Asian Development Bank Finances Gautam Buddha Airport Amid Low Flight Activity
What happened
The Asian Development Bank provided loan financing for the Gautam Buddha International Airport. The airport, which opened on May 16, 2022, has reportedly gone over six months without an international flight. The airport was built at a cost of about Rs 36 billion.
From peoplesreview.com.np
Why it matters
The airport was promoted as a gateway to Lumbini and an alternative to Tribhuvan International Airport. However, tourism businesses are disappointed because the government continues to pay loan interest and operating expenses while international connections have not materialized.
From peoplesreview.com.np
Who's involved
- Asian Development BankProvided loan financing for the airport project
- Government of NepalThe government responsible for paying loan interest and operating expenses
- NepalThe country where the airport is located
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- NepalSpeculative
Tourism revenue might be threatened due to the lack of international flight connections.
- Government of NepalSpeculative
The government might face increased national debt servicing costs without expected revenue.
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The entities involved
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Asian Development Bank
regional development bank