The discussions of constructing a new international airport in
Terai initiated in 1992, following the crash of
Thai Airways International Flight 311 and
Pakistan International Airlines Flight 268, which claimed the lives of 113 and 167 people respectively. As both accidents happened to be
controlled flight into terrain, it was apparent that the topography and weather of Kathmandu posed challenges for the pilots. In 1995, a consulting firm, NEPICO/IRAD conducted a pre-feasibility study on 8 different areas of Nepal to recommend a best site for a new international airport. Based on the geographical location, topography, distance to the largest cities, road accessibility, forest density and an airspace; NEPICO/IRAD suggested
Dumbarwana V.D.C. (present day:
Gadhimai Municipality) for an ideal construction site. In 2007,
National Planning Com set budget to construct the second international airport. The next year, the cabinet of Prime Minister
Pushpa Kamal Dahal decided to construct the airport under 'Build Own Operate and Transfer' (BOOT) model. In March 2010,
Nepal Ministry of Culture, Tourism and Civil Aviation signed a contract with a Korean company,
Landmark Worldwide (LMW) to conduct a detailed feasibility study of the airport. LMW conducted the study at a cost of US$3.55 million and submitted a plan to the government on 2 August 2011. The LMW's plan stalled as the company hasn't received the payment for its study as of July 2019. In March 2015, Turkish Airlines Flight 726 skidded off a runway during a poor visibility approach to Kathmandu, and the airport was shut down for four days. A month later, an earthquake with a magnitude of 7.8
MW, followed by an aftershock of 7.3
MW hit central Nepal. The general manager of
TIA, Birendra Prasad Shrestha said, "if we had an alternative international airport, it would have been easier in managing distribution of relief materials effectively". Following the subsequent events, the Nepali government has been enabled to advocate for the construction of the airport. Despite the court ruling, Investment Board of Nepal proceeded with the airport project and invited bidders to submit proposals, clarifying that the court order only prohibited tree cutting and not all work. Zurich Airport International AG was selected as the sole company for a public-private partnership in the airport's construction, but after requesting a time extension due to the court order, the company did not provide any further official communication. In 2021, the Civil Aviation Authority of Nepal (CAAN) allocated Rs. 300 million to revise the master plan for the Nijgadh airport project. However, on March 26, 2022, a final court verdict nullified all government decisions regarding the airport's construction. As of June 2022, the government's expenditure on the project has surpassed Rs. 2 billion. == Master Plan ==