The Supreme Court on Monday refused to issue an interim order regarding the purchase of Chinese-made aircraft for Nepal Airlines Corporation. A division bench of Justices Kalyan Shrestha and Baidyanath Upadhyay issued an order to this effect.
On March 27, petitioner Krishna Prasad Dahal of Okhaldhunga had flied a writ against the government arguing that the government failed to comply with legal procedures mentioned in the Public Procurement Act while purchasing the aircraft.
The national flag carrier had placed an order for four Chinese-made aircraft (one Modern Ark 60 (MA60) and three Y12e), which it plans to purchase by taking soft loans from the China’s EXIM Bank. The Chinese government has gifted two aircraft—an MA60 and a Y12e.
As per the agreement between the Nepali and Chinese governments, the northern neighbour will provide a grant of RMB 180 million (Rs 2.98 billion) for procuring Y-12e and Modern Ark 60 (MA60) aircraft, while the bank will provide soft loans worth RMB 218 million (Rs 3.61 billion) to purchase the four aircraft (three Y-12e and an MA60). On November 29, 2012, NAC had signed a commercial agreement with AVIC International Holdings.
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