Nepal is investigating new airport made by China

As developing countries weigh the consequences of borrowing heavily from China for major infrastructure projects, anti-corruption officials in Nepal have begun an investigation into a flagship airport financed and built by Chinese state-owned companies. Nepal’s $216m international airport in Pokhara, the country’s second-biggest city, opened in January. China agreed to provide loans to build the airport more than a decade ago. Nepal tapped China CAMC Engineering, the construction arm of a state-owned conglomerate, Sinomach, as the contractor. The airport has failed to attract any regular international flights, raising concerns about whether it will generate enough revenue to repay loans to its Chinese lenders. Nepali officials have asked Beijing to change the loans into a grant to ease the financial burden, but China has not agreed to do so. Last month, The New York Times reported that CAMC had inflated the cost of the project and undermined Nepal’s efforts to maintain quality control, putting a priority on its own business interests. Nepal’s Civil Aviation Authority, the agency overseeing the airport’s construction, did not put up much resistance — reluctant to upset Beijing on an important project for both countries. Shortly after the article’s publication, Nepal’s Commission for the Investigation of Abuse and Authority raided the Pokhara offices of the Civil Aviation Authority and seized documents related to the project.<br/>