Nepal: Civil Aviation Airport Project (formerly Civil Aviation Sector Development)

Sovereign Project | 38349-012

Summary

The objective of the TA is to conduct the preparation study to design a project which will address the deficiencies of civil aviation in general, including the development needs of international and regional airports; and air transport service in the country, in terms of safety and feasibility. It is also expected to facilitate private involvement in financing, ownership, operation, rehabilitation, maintenance and management of airports.

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Project Name Civil Aviation Airport Project (formerly Civil Aviation Sector Development)
Project Number 38349-012
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7031-NEP: Civil Aviation Airport Project (formerly Civil Aviation Sector Development)
Japan Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Air transport
Gender Equity and Mainstreaming No gender elements
Description The objective of the TA is to conduct the preparation study to design a project which will address the deficiencies of civil aviation in general, including the development needs of international and regional airports; and air transport service in the country, in terms of safety and feasibility. It is also expected to facilitate private involvement in financing, ownership, operation, rehabilitation, maintenance and management of airports.
Project Rationale and Linkage to Country/Regional Strategy

Poverty reduction in Nepal has been slow, and one of the main reasons is the regional imbalance in overall development due to poor regional access and connectivity. Strengthening rural-urban and regional connectivity, building market linkages, and improving the quality of and access to basic social services are critical to promote broad-based growth, enhance mobility and improve productivity. The Nepal?s Tenth Plan (FY2003-FY2007) ends mid-July 2007, and an interim development plan (IDP, still being prepared by the Government) identifies broad based economic prosperity as one of its priorities, thus remain consistent with ADB?s 2004 CSP. The 2004 CSP puts priority to broad-based economic growth by providing access to economic opportunities. Especially in remote areas that are otherwise inaccessible by road, civil aviation is essential for Nepal. ADB assisted GON in preparing a civil aviation sector strategy in 2006 and the report concludes (issued in November 2006) an optimistic outlook for the sector with both international and domestic traffic recovering strongly.

The civil aviation sector strategy study comprises a sector management plan and an infrastructure development plan. The central thrust of the strategy was to re-structure the sector and to focus the priority to the viable development of the Tribhuvan International Airport (TIA). The critical issue in this context is the weakness of CAAN and TIA in financial management in that the systems, procedures and qualified people are not available to properly manage financial and its business operations. The strategy recommends a 2-phase approach of the assistance: (i) phase I is to relieve the acute aircraft parking problem on the international and domestic aprons, provide better domestic terminal facilities, improve communication/navigation systems, improve the airport water supply and provide new general aviation and maintenance aprons, and (ii) phase 2 is to cover the longer term infrastructure development requirements for other airport, especially the ones located in the remote domestic area.

An infrastructure development plan (InfrDP) was also prepared setting out the future development requirements for other airports. The plan specifies long term, prioritized and timelined improvements to airport and air navigation infrastructure for TIA and the regional airports and remote strips operated by CAAN.

The PPTA will examine the feasibility and impact of the proposed improvements of TIA as set out in the InfrDP which includes the examination of economic, environmental and social development impacts. Tribhuvan International Airport (TIA) is to become a revenue-generating entity by strengthening CAAN?s capacity for financial management as required. It will also help strengthen CAAN?s capacity in financial management of TIA to become a revenue-generating organization. Inline with Government?s priority to increase the accessibility to remote area, selected remotely domestic airport/airstrips may be included to be improved. The remote domestic airport/airstrips may be classified as socially required and/or commercially viable airport projects.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nepal
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services An international consultant firm that can supply a team with expertise in the areas of civil aviation engineering, civil aviation management, institution development, air transport economy, financial analysis, environmental protection, social and resettlement, will be recruited. It is anticipated that a total of 18 person-months international and 20 person-months national consulting services will be required. The consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2006). The consultant firm will be selected according to quality- and cost-based selection (QCBS) procedures and biodata technical proposal will be requested from shortlisted firms.
Procurement TBD
Responsible ADB Officer Dong-Kyu Lee
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Culture, Tourism and Civil AviationMs. Lila M. Poudelmotca@ntc.net.npSingh Durbar, Kathmandu, Nepal
Timetable
Concept Clearance 05 Sep 2007
Fact Finding 11 Sep 2007 to 20 Sep 2007
MRM -
Approval 14 Dec 2007
Last Review Mission -
PDS Creation Date 18 May 2006
Last PDS Update 19 Oct 2010

TA 7031-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2007 11 Jan 2008 11 Jan 2008 28 Feb 2009 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 190,000.00 0.00 0.00 0.00 940,000.00 14 Dec 2007 697,890.63
Title Document Type Document Date
Civil Aviation Airport Project Consultants' Reports Oct 2009
Preparing the Civil Aviation Airport Project (Financed by the Japan Special Fund) Technical Assistance Reports Dec 2007

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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