This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/2/2019

Overview

Domestic and international air passenger movements have increased significantly over the past decade, putting stress on Nepal’s civil aviation infrastructure.  Kathmandu’s Tribhuvan International Airport (TIA), the country’s only international airport, handled 27,118 international flights in 2017, compared to 23,619 international flights in 2013.  The airport has an outdated radar system and  only one runway. Since 2016, the airport has handled approximately 400 movements per day (take off and landing) and at peak times exceeded its stated maximum capacity of 35 flights per hour.  The Ministry of Culture, Tourism and Civil Aviation  and the Civil Aviation Authority of Nepal (CAAN) have civil aviation infrastructure improvement projects planned in Kathmandu and throughout the country; these are valued at around 1.3 billion over the next fifteen years. 

Exports/Imports of Airport and Ground Support Equipment (U. S. $ thousands)

 

2014

2015

2016

2017

Total Local Production

0

0

0

0

Total Exports

0

0

0

18.5

Total Imports

50,095.42

154,482.89

80,525.24

211,494.01

Imports from the US

9,554.22

7,080.16

10,678.38

12,118.95

Total Market Size

50,095.42

154,482.89

80,525.24

211,512.51

Exchange Rates (USD)

98.55

99.79

106.65

107.92

Total market size = (total local production + imports) - exports)
Total Imports:  Trade and Export Promotion Center, Nepal
Imports from U.S.:  Trade and Export Promotion Center, Nepal

Leading Sub-Sectors

The best sub-sector prospects for U.S. businesses include sale of radar systems, aeronautical communications equipment, navigation aids, runway lighting systems, and an array of ground support and safety equipment.

Opportunities

The GON has launched six major civil aviation infrastructure projects in recent years.  These projects offer U.S. companies the opportunity to supply ground support equipment.  Due to increasing runway and airspace congestion, both government actors and the public are increasingly advocating for the construction of a second international airport (SIA) to be located in the plains bordering India. Such projects as the SIA and the upgrading of the control towers of several domestic airports remain in the feasibility study phase.  However, some projects are already underway, such as infrastructure upgrades at TIA in Kathmandu and improvements at the Buddha Gautam Airport in Bhairahawa, for which tenders have been awarded and construction work has begun.  Work has also begun on the fast-track highway to connect Kathmandu to the SIA. Commercial opportunities exist for U.S. businesses for turn-key projects, major equipment sales, and consultancy services with the GON.

Construction of the SIA in Nijgadh, Bara district - Estimated first phase cost $1.2 billion.

Master Plan for Civil Aviation Infrastructure Development of TIA in Kathmandu - Estimated first phase cost $75 million.

Upgrade of Bhairahawa’s Gautam Buddha Airport as a Regional International Airport (RIA).  The Asian Development Bank is financing $68 million of the estimated $90 million project cost.

Construction of RIA in Pokhara - Estimated cost $304 million (contract re-awarded to the Chinese firm CAMC Engineering Company in May 2014).

Web Resources


 

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