Bhutan; Domestic Air Services Update

More than two months have passed by an anticipated contract award date. The department of civil aviation (DCA) ‘request for proposal’ document states March 26 for awarding the contract.

DCA timeline
Jan 18 – Request for proposals

Feb 12 – Proposals submitted

Feb 15 - March 8 – Evaluation

March 12 – Result declared

March 15 - 22 – Negotiations with selected proposer

March 26 – Anticipated contract award

April to Sept – Certification, air space design, refurbishment of heliports and airports, establishment of other services

Sept 30 – Commencement of air services

Actual timeline
Feb 12 – Four companies submit proposals

March – More information required by government, instructs all four companies to give presentations in Thimphu and answer questions

April 11 – Last day for companies to give presentations, only three companies show up

May 7 – Result declared and submitted to cabinet (two companies instead of one identified after two rounds of evaluation)

June 15 – No decision by cabinet, negotiations with identified companies still ongoing

Sept 30 – This deadline will still be met, says communications minister

Four companies submitted proposals by the February 12 deadline. Two companies, national airline Drukair, and a UK based company, Route Network LLP, were identified on May 7, by an inter-ministerial committee. The final decision was then left to the cabinet.

So far, government officials have been tightlipped on why the cabinet has not already approved either of the companies. Government officials also dismissed media reports that the UK based company, Route Network LLP, had been selected by the cabinet.

“It’s a fact that we haven’t identified,” said communications minister, Lyonpo Nandalal Rai. “It’s still very much a dormant issue.”

The minister added that the government is still in “dialogue” with “all concerned parties.” This means the government is still in negotiations with both Drukair and Route Network LLP.

The minister did not reveal any details on the ongoing “dialogue”, on the grounds that it was confidential information.

The company that wins the award is expected to commence air services by October 1. Asked whether this date is realistically possible with the delay in awarding the contract, the minister said the deadline would be met. He said that upon awarding the contract, two months at most would be needed to commence operations. “These are proficient people, with resources at their disposal,” said the minister referring to the companies, “the system will be put in place very quickly.”

Lyonpo Nandalal Rai, said that neither the communications ministry nor the cabinet had set any deadlines. All the minister said on a possible time frame was that the contract would be awarded “sooner than later.”

But the minister also pointed out that the government should not be hasty in awarding the contract. “We have to be careful in the selection, so that it doesn’t hamper future activities, so that it doesn’t have a negative impact, and that’s why we’re not in a rush.” Source: Kuenselonline