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

Sovereign Project | 38349-013 Status: Approved

Summary

ADB is helping Nepal improve its airports and civil aviation safety standards. The project will construct new taxiways and a new power supply system at Tribhuvan International Airport in Kathmandu and upgrade its terminal facilities. Three domestic airports - Lukla, Rara, and Simikot - will receive communication equipment, visual approach aids, and weather equipment. 

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Consulting Notices

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Procurement Notices

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Procurement Documents


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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 As of end of August the overall progress of the Project is 43.35% against the elapsed time of 85%. Low progress of the Project is due to slow progress of ICB-01 (Airside Infrastructure and Landside Terminal Improvement at TIA, Simikot and Rara) package with only 15.1% of Physical progress against the elapsed time of 82%. Special Project Administration mission was conducted from 1 September 2015 to 11 September 2015 with objectives to (i) identify specific causes of project delays including the contractor's poor performance; (ii) Set out milestones that should be achieved by the contrator (including runway extension, terminal building works and operation of each filling works); (iii) Set out milestones for deployment of personnel, equipment, and materials; (iv) Set out measurable periodic targets in terms of physical progress to implement the revised work plan; and (v) Any measures that might be applied to effectively implement the revised work plan, in line with the contractual provisions.
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)

Progress towards output of the Project has been briefed below:

(i) ICB-01 works contract commenced on 17 March 2013. Works on airside infrastructure and landside infrastructure is ongoing at slow pace with overall physical progress of only is 15.1% against the elapsed time of 82%. CAAN (EA+IA) together with ADB is making efforts to expedite the work progress.

(ii) ICB-02: Equipment contract commenced on 17 Sep 2012. All major works including ATC automation have been completed. CAAN is in decision making process for comissioning of VAGS and A-PAPI into operation at Lukla Airport. Overall physical progress is 100% and contract is under defects liability period. Performance monitoing of all equipments will be continued through out DLP.

(iii) CAAN Organizational and management capabilities enhanced:

The current overall progress is 92%. Training on MIS & Computerization component is left. For procurement of hardware and software for computerization (ICB-03), CAAN had published the tender notice on 20 Aug 2015. After completion (installation) of ICB-03 equipment and MIS system, INECO will conduct training to CAAN staff to operate the MIS & computerization system.

Some other training that have been planned to conduct in April and May 2015 has been post poned due to the Nepal Earthquake.

Final reports submitted from INECO are under review by CAAN concerned experts for their finalization.

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 Being complied.
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation All concerned Project stakeholders are being communicated, consulted,and keep on board during the Project implementation as and when needed.
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 Bhupendra Bhatt
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Civil Aviation Authority of Nepal
Mr. Dhurba Dass Bhochhibhoya
tiaip@caanepal.org.np
P.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 14 Sep 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 9.52 0.00 95%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2009 7.07 0.00 71%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

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 59.28 0.00 93%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2009 23.34 0.00 37%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Safeguard Documents

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Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents

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Related Publications

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