The government of Nepal is considering partnering with the private sector to operate Gautam Buddha Airport in Bhairahawa, south-central Nepal. The airport is the gateway to the international pilgrimage destination of Lumbini, the birthplace of Gautam Buddha. It is currently being upgraded to an international airport. The upgrades are expected to be completed in 2019.

In the past month, stakeholders, including officials of the Asian Development Bank, the project financier, have met to discuss the possibility of contracting private companies to operate the airport. In this case, the government would retain ownership.

The group has decided to carry out a feasibility study of the potential PPP, to recommend options and study the parameters of the PPP policy.

Government officials have said that new laws would have to be passed to permit the private sector to manage an international airport in the country.

Such laws are in the pipeline. The proposed Integrated Civil Aviation Bill 2017 envisages allowing the private sector to build and operate airports. A draft of the new law supports potential privately operated airports, and it has also simplified the process for the government to privatize its existing airports.

Thus, the legal hurdle that currently prohibits this project may soon be overcome.