Projects

Project Information

Siem Reap Airport Project

Country and Location

Kingdom of Cambodia

Borrower

Kingdom of Cambodia

Date of Approval

12 December 1996

Executing Agency

State Secretariat of Civil Aviation

Loan Amount

The equivalent in various currencies of Special Drawing Rights(SDR) 10.372 million (US$15.0 million equivalent)

Terms

The loan is from the Bank's Special Funds resources with a repayment period of 40 years including a grace period of 10 years and service charge of 1.0 percent per annum.

Period of Utilization

Until 30 June 2000

Project Description

The Project involves the improvement and upgrading of the facilities at Siem Reap Airport (SRA) to ensure safe and efficient operations for airline operators and passengers and to cope with the increasing traffic expected to be received. In addition, the improvements are designed to comply with the safety practices and standards promulgated by the International Civil Aviation Organization (ICAO). The Project airport is located near the Angkor Wat historical site northwest of Phnom Penh.

Estimated Cost

The total cost of the Project is estimated at US$17.6 million equivalent, of which US$15.0 million is the foreign exchange cost and US$2.6 million is the local currency cost.

Financing Plan

Bank	US$15.0 million
Government	US$2.6 million

Benefits and Beneficiaries

At the local level, the Project will generate numerous spill-overs to the benefit of the population in the Siem Reap area, including generation of employment and income in construction, trading, services and handicraft industries and development of tourism-related skills. Employment and skill development opportunities in the tourism will particularly arise for women. At the national level, the Project will contribute to increased foreign exchange earnings from the expected increase in tourist visitors to the Angkor Wat site. The Project will also benefit travelers, tourism and business organizations as flight services will increase in regularity and become more efficient and reliable. Over the medium term, support under the Project for training of SSCA staff will remove a major human resource constraint to safe operation and maintenance of airport and air transport services. It will further link Siem Reap Province to the economically active cities, including Phnom Penh, Sihanoukville and Battambang. The FIRR after taxes and EIRR of the Project are estimated at 14 percent and 22 percent, respectively.

Procurement

All procurement to be financed under the loan will be carried out in accordance with the Bank's Guidelines for Procurement. Civil Works and major equipment contract packages will be procured by international competitive bidding.

Consulting Services

About 110 person-months of consulting services comprising 40 person-months of international consulting services and 70 person-months of domestic consulting services are required to implement the Project. The consultants involved in the preparation of the feasibility study and preliminary designs have been engaged under advance recruitment action and direct selection, in accordance with the Bank's Guidelines on the Use of Consultants.

Technical Assistance

A technical assistance grant of US$550,000 will finance advisory services to assist SSCA define the long-term role of the organization and to formulate comprehensive business plans and operational training programs. This will assist the Government to transform SSCA into a viable and market oriented organization able to cope with the demands of growing economic activity.

Estimated Project Completion Date

31 December 1999