Nepal: Air Transport Capacity Enhancement Project (formerly Civil Aviation Airport Development Project)

Sovereign Project | 38349-013

Summary

The Air Transport Capacity Enhancement Project will enhance safety and capacity at Tribhuvan International Airport (TIA) in Kathmandu and three remote domestic airports--Lukla, Rara, and Simikot. TIA's airfield side infrastructure will be reconfigured and upgraded to international safety standards, including provision or construction of (i) about 1,400 meters (m) of new main taxiways and link taxiways, (ii) runway end safety area and extension, (iii) runway approach lights, (iv) an instrument landing system localizer, (v) an uninterrupted power supply system for essential airfield and security area lights, (vi) air traffic communication equipment,(vii) additional international and domestic aircraft parking apron area, and (viii) upgrading of rescue and fire fighting system. TIA's terminal infrastructure will be rehabilitated with the existing international terminal refurnished and upgraded, and a new temporary domestic terminal of about 10,000 square meters (m2) constructed.

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Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Air Transport Capacity Enhancement Project Mar 2014

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Project Name Air Transport Capacity Enhancement Project (formerly Civil Aviation Airport Development Project)
Project Number 38349-013
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0181-NEP: Air Transport Capacity Enhancement Project (formerly Civil Aviation Airport Development Project)
Asian Development Fund US$ 10.00 million
Loan 2581-NEP: Air Transport Capacity Enhancement Project (formerly Civil Aviation Airport Development Project)
Asian Development Fund US$ 70.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Air transport
Gender Equity and Mainstreaming No gender elements
Description

The Air Transport Capacity Enhancement Project will enhance safety and capacity at Tribhuvan International Airport (TIA) in Kathmandu and three remote domestic airports--Lukla, Rara, and Simikot. TIA's airfield side infrastructure will be reconfigured and upgraded to international safety standards, including provision or construction of (i) about 1,400 meters (m) of new main taxiways and link taxiways, (ii) runway end safety area and extension, (iii) runway approach lights, (iv) an instrument landing system localizer, (v) an uninterrupted power supply system for essential airfield and security area lights, (vi) air traffic communication equipment,(vii) additional international and domestic aircraft parking apron area, and (viii) upgrading of rescue and fire fighting system. TIA's terminal infrastructure will be rehabilitated with the existing international terminal refurnished and upgraded, and a new temporary domestic terminal of about 10,000 square meters (m2) constructed. Basic safety improvements at the three remote domestic airports include a visual approach guidance system and abbreviated precision approach path indicator at Lukla airport, and runway threshold identifiers and runway end lights, air traffic control equipment, and meteorological equipment at Simikot and Rara airports.

The Project will also improve overall sector management by implementing a 3-year capacity development program for the Civil Aviation Authority of Nepal (CAAN). CAAN's organizational and management capacity will be strengthened by updating the existing regulations, developing a strategy to adapt the regulatory framework based on international standards, improving human resources development, upgrading the financial and management information system, implementing a systematic maintenance program, and identifying viable opportunities for private sector participation for future airport infrastructure development and maintenance.

Project Rationale and Linkage to Country/Regional Strategy

Due to the challenging terrain in Nepal, air transport is an important part of the country's overall transport system, providing access to many remote towns and villages in the mountainous areas. Nepal's natural landscape and cultural heritage offer tourism development potential. A safe and reliable air transport system is vital to achieving the Government's tourism development targets, and therefore receiving the economic benefits. TIA is the country's only international airport and safety concerns urgently need to be addressed. TIA's airside facilities, runways, taxiways, apron, and communication navigation surveillance equipment are not fully compliant with international safety standards and recommended practices. The Project will provide improvements to address the current safety issues and capacity constraints.

The domestic airports in Lukla, Rara, and Simikot serve remote areas that are otherwise inaccessible by road, and air transport is an essential mode of communications for both the local communities and tourists. These airports will support tourism development and need urgent rehabilitation and upgrading. The Project will upgrade and improve communication equipment, visual approach aids, and weather equipment.

CAAN is responsible for the administration of civil aviation in Nepal and is essentially functioning well. However, further institutional enhancement, especially in its operational efficiency and management capacity, is necessary to effectively handle the expected demand of greater air transport traffic in the medium term. Overall, the Project is to address major factors hindering the future growth of the air transport subsector by improving safety to international standards, easing capacity constraints, and enhancing CAAN's organizational effectiveness.

Impact The impact will be improved transport connectivity in Nepal.
Project Outcome
Description of Outcome The Project's immediate outcome will be improved safety and capacity at TIA and at remote domestic airports in Lukla, Rara and Simikot, and improved institutional capacity of CAAN.
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs

The Project outputs are as follows:

(i) for TIA: airside infrastructure reconfigured to meet international safety standards, landside infrastructure rehabilitated and improved for larger capacity, and the CNS/air traffic management equipment upgraded;

(ii) for remote domestic airports at Lukla, Rara, and Simikot: basic safety infrastructure improved; and

(iii) for CAAN: organizational and management capabilities enhanced.

Status of Implementation Progress (Outputs, Activities, and Issues)

Investment Component:

ICB-01 works contract commenced on 17 March 2013. Works on airside infrastructure and landside infrastructure are ongoing. Overall physical progress is 11% against the target progress of 55%.

ICB-02 equipment contract commenced on 17 Sep 2012. All major works except ATC automation have been completed. Overall physical progress is 100% and contract is under defects liability period.

Soil investigation including boring for the site has been completed. Temporary fencing of this work site is completed under safety & security management.

Capacity Development Component:

A half-day workshop was organized in Dec 2013 for presentations on the human resource management models for CAAN and the newly to be formed NAANSA for airport and air navigation services.

A workshop on the proposed new Civil Aviation Act 2014 was conducted on 28 March 2014. The Civil Aviation Act 2014 will replace the exising Civil Aviation Act 2015 BS in order to provide a clear legal basis for all safety oversight functions of the Authority.

Geographical Location Tribhuvan International Airport in Kathmandu and three remote domestic airports (Lukla, Rara, and Sumikot).
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
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 All consultants under the Project will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). For project management advisory services, one international and one national individual consultant will be recruited, using individual selection procedure. For detail design and supervision, a firm of international consultants will be recruited using quality- and cost-based selection procedures, with full technical proposal and a 90:10 proportion of quality to cost. The services will be implemented over about 48 calendar months and will require about 116 international person-months and 531 national person-months of services. For the development and implementation of the capacity development program, a firm of international consultants will be recruited using quality- and cost-based selection procedures, with full technical proposal and a 90:10 proportion of quality to cost. The services will be implemented over about 36 calendar months and will require about 118 international person-months and 82 national person-months of services.
Procurement All procurement to be financed under the Project will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) will be used for procurement of works estimated to cost more than $1.0 million and for goods estimated to cost more than $500,000. Shopping will be used for works and goods estimated to cost less than $100,000. National competitive bidding will be used for works and goods estimated to cost less than those stated for ICB, in accordance with Nepal's national competitive bidding procedures acceptable to ADB. Indicative contract packages, to be procured using ICB, include two works packages and one goods package ranging in cost from $5 million to $39 million.
Responsible ADB Officer Naresh Pradhan
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Civil Aviation Authority of NepalMr. Dhurba Dass Bhochhibhoyatiaip@caanepal.org.npP.O. Box No. 284, Sinamangal, Kathmandu, Nepal
Timetable
Concept Clearance 27 Jul 2009
Fact Finding 19 Jul 2009 to 29 Jul 2009
MRM 25 Aug 2009
Approval 23 Nov 2009
Last Review Mission -
PDS Creation Date 03 Aug 2009
Last PDS Update 18 Feb 2015

Grant 0181-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2009 25 May 2010 06 Dec 2010 30 Jun 2015 30 Jun 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 23 Nov 2009 9.51 0.00 95%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2009 6.91 0.00 69%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 12.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Loan 2581-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2009 25 May 2010 06 Dec 2010 30 Jun 2015 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 82.00 Cumulative Contract Awards
ADB 70.00 23 Nov 2009 59.87 0.00 94%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2009 21.45 0.00 34%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

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Evaluation Documents

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