Japan will extend Rs 2.77 billion in grant funding to upgrade air traffic control (ATC) infrastructure at Tribhuvan International Airport (TIA) in Kathmandu, Nepal's principal international airport, myRepublica has reported.

The grant, sourced from the Government of Japan, targets modernization of ATC facilities at the capital's single-runway hub. The report did not detail the implementing agency, the procurement schedule or the specific equipment to be replaced.

What does the Rs 2.77 billion fund?

TIA sits inside the bowl of the Kathmandu Valley, surrounded by rising terrain that constrains approach procedures during poor weather. The airport depends on functioning radar, navigation aids and approach-control infrastructure to maintain safe separation. While myRepublica did not enumerate the systems covered, ATC replacement programs at comparable single-runway international gateways typically include:

• Primary and secondary surveillance radar (PSR/SSR/Mode S)
• Approach and tower control consoles
• Voice communication switching systems
• Flight data processing systems
• Instrument landing systems (ILS) and VOR/DME navaids
• Backup power and uninterruptible supply systems

TIA handles the overwhelming majority of Nepal's scheduled international services alongside a heavy domestic operation, making ATC reliability central to network planning across the country's carriers.

How does the grant convert in dollar terms?

At exchange rates near NPR 134 per US dollar — the prevailing rate in early 2025 — Rs 2.77 billion equates to roughly USD 20-21 million. That figure sits within the typical scale for a single-airport ATC replacement program and does not, on its own, indicate that airfield pavement, terminal works or runway extensions are bundled in.

Who is funding it?

The grant originates with the Government of Japan and signals a continuation of long-running bilateral aviation support to Nepal. Japanese-funded aviation projects across South Asia have historically been delivered through grants or concessional loans under the country's Official Development Assistance framework, frequently channeled via the Japan International Cooperation Agency.

TIA's earlier ATC installations were also Japan-supported, and the equipment delivered through those programs now approaches the typical end of ATC service life. A second major upgrade roughly two decades after the first aligns with industry expectations for surveillance radar and flight-data-processing refreshes.

What changes operationally once the upgrade is live?

Capacity growth at TIA has historically been bounded by ATC capability rather than runway availability, since the airport operates a single runway in mixed civil-military use. A modernized ATC system typically enables tighter radar separation minima, more reliable approach-control handoffs and reduced controller workload — outcomes that translate into additional slots during peak morning and evening banks and improved schedule reliability.

For domestic carriers operating turboprop and regional jet fleets into Kathmandu, the practical effect is shorter approach delays during instrument weather and fewer ground holds that propagate through downstream stations.

What is the implementation path?

Delivery will require Nepal's Civil Aviation Authority of Nepal (CAAN), the Ministry of Culture, Tourism and Civil Aviation and Japanese counterparts to finalize technical specifications, sign implementation agreements and complete procurement — a multi-year process for ATC systems of this scope. myRepublica's report did not indicate an in-service date or a contract award timeline.

A full ATC modernization, from contract signature through factory acceptance testing, installation, site acceptance and operational cutover, typically consumes three to five years. Until cutover, TIA will continue operating with equipment already in service, leaving the airport exposed to disruption if any single subsystem fails during peak monsoon operations.