KATHMANDU: Director General of the Civil Aviation Authority of Nepal (CAAN),Pradeep Adhikari, has declined a loan proposal worth around 8 billion rupees from the Asian Development Bank (ADB).

The ADB had proposed a loan of around 8 billion rupees for the construction of the second terminal building at Gautam Buddha International Airport in Bhairahawa.

A team of ADB officials, responsible for assessing Nepal’s loan requests, met with Director General Adhikari on Tuesday to present the proposal.

However, Adhikari rejected the proposal, citing that the current situation does not necessitate immediate borrowing and there is currently no need for the loan, according to a senior official who attended the discussions.

Following CAAN’s rejection of the loan for Gautam Buddha International Airport, the ADB proposed a loan for Tribhuvan International Airport.

Nevertheless, Director General Adhikari also turned down this loan proposal, as confirmed by another official involved in the discussions.

At present, the ADB is in the process of finalizing a 7 billion rupees loan for Tribhuvan International Airport.

“Given the absence of international flights from Gautam Buddha International Airport, refusing the loan for the construction of the second terminal building is justifiable,” remarked a participating official. “With liabilities amounting to approximately 40 billion rupees, there is currently no need for external financing,” the official added.

During the meeting with ADB representatives, Director General Adhikari also assured that CAAN is capable of prioritizing infrastructure development in the aviation sector without external assistance.