Kathmandu — Nepal’s anti-corruption agency has charged a Chinese state-owned company and dozens of officials for manipulating costs and bypassing fair competition in the Pokhara International Airport project.
The Commission for the Investigation of Abuse of Authority (CIAA) filed charges against 55 individuals, including former ministers and senior bureaucrats, along with China CAMC Engineering. The agency alleges they inflated the airport’s cost by over $74 million and violated procurement laws.
The project was funded by a $216 million loan from China’s Export-Import Bank. According to the agreement, the loan terms allowed only Chinese firms to bid, and the cost estimate was set by the lender itself. Critics say this structure gave Chinese companies an unfair advantage and limited Nepal’s ability to negotiate or seek alternatives.
The CIAA claims the Chinese contractor used political influence to win the contract without competition. The company allegedly offered bribes to officials and shaped technical specifications to favor its own bid. Despite not meeting minimum qualifications, the firm secured the deal and raised costs during negotiations.
Similar concerns have surfaced in other sectors, including telecom and hydropower. Huawei, another Chinese firm, reportedly won a billing system contract from Nepal Telecom under questionable circumstances. Observers say these deals often prioritize low upfront costs while creating long-term expenses through weak technology and vague specifications.
Western governments have long accused Chinese firms of using state-backed incentives and bribes to dominate infrastructure contracts in developing countries. In contrast, companies from developed nations face legal consequences if caught offering bribes abroad. For example, the U.S. recently penalized a domestic firm involved in aircraft sales to Nepal.
China’s approach to overseas contracts often involves direct government support. In the Pokhara case, officials say the Chinese government pushed hard to secure the deal for CAMC Engineering, even when the company failed to meet basic tender requirements. Nepal’s refusal to accept certain terms led to diplomatic pressure, but the contractor still managed to influence cost estimates and win the bid.
The CIAA’s case marks a rare move to challenge foreign-backed corruption in Nepal. The agency is seeking damages and has vowed to pursue accountability across all levels of government.
