The Chinese side has approved the loan assistance for the construction of Pokhara Regional International Airport, a project of national pride.
According to Under Secretary with the Ministry of Finance, Yubraj Pandey, the Ministry had on May 31 received an official letter from the China's Export and Import (EXIM) bank informing about the approval of loan for the construction of the airport, giving confidence for implementing the long-stalled project.
The total cost of the project is Rs 21.47 billion.
The bank has agreed to provide loan (75 per cent of construction cost) at two per cent interest rate while remaining 25 per cent is to be provided as grants.
The foundation stone for the airport was laid on April 13, 2016. As per the agreement, the construction works need to be completed within the four years of the loan approval and with this, the construction of airport structure is expected to take a pace.
The project is to be implemented by Chinese company CMC Engineering.