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Nepal Charges 55 People And Chinese Firm Over Alleged $74M Pokhara Airport Overcharge

The Commission for Investigation of Abuse of Authority has charged 55 people and China CAMC Engineering Company Limited with allegedly inflating Pokhara International Airport construction costs by more than $74 million. The commission says a 2012 bid of $169.6 million was raised to just over $244 million "in collusion with the Chinese company." The airport, financed by China Exim Bank and opened in 2023, has not yet attracted regular international flights; court dates have not been set.

The Commission for Investigation of Abuse of Authority has filed charges against 55 individuals and China CAMC Engineering Company Limited, alleging they inflated construction costs for the new Pokhara International Airport by more than $74 million.

The filings were lodged on Sunday at the Special Court in Kathmandu, which handles corruption cases involving government contracts. Two officials from the Chinese firm are specifically named in the complaint.

Allegations and Figures: According to the commission, a 2012 contract bid of $169.6 million was later increased to just over $244 million "in collusion with the Chinese company," producing the alleged overcharge of more than $74 million. The project was financed with a loan from China Exim Bank.

The airport was built near the resort city of Pokhara, roughly 200 kilometers (125 miles) west of Kathmandu, and opened in 2023. It was intended to bring more international tourists to the scenic gateway for many trekking routes, but local reports say it has not yet attracted regular international flights.

The commission did not set a date for hearings. Court proceedings in Nepal can take months or even years, and this case is among the largest corruption prosecutions in recent Nepali history.

Context: In September, mass protests against corruption led by youth — some of which turned deadly — contributed to the resignation of the government and the installation of an interim administration. General elections are expected in March.

Potential Impact: If the allegations are proven, the case could have significant legal and diplomatic repercussions and will likely intensify scrutiny of foreign-financed infrastructure projects and public contracting procedures in Nepal.

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