Papua New Guinea: Civil Aviation Development Investment Program - Project 1

Sovereign Project | 43141-023

Summary

The program involves upgrading and rehabilitation of airports identified under project 1: (i) Wewak, (ii) Hoskins, (iii) Gurney, (iv) Mt. Hagen, and (v) Jackson's domestic airport. The first tranche will finance the following under project 1: (i) Improvements in pavements and fencing identified as requiring emergency works to comply with ICAO safety and security standards; (ii) Support for (a) engineering design, preparation of bid documents, and procurement by the NAC; and (b) preparation by the NAC of investment proposals for subsequent projects and tranches for ADB approval; and (iii) Consulting services to NAC for the supervision of (a) airport improvement contracts for the five project 1 airports, and (b) long-term maintenance contracts for these five airports. In addition to the five airports, two others (Kavieng and Goroka) will have new security fences installed.

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Consulting Notices

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Procurement Notices

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Procurement Documents

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Project Name Civil Aviation Development Investment Program - Project 1
Project Number 43141-023
Country Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2588-PNG: Civil Aviation Development Investment Program - Project 1
Ordinary capital resources US$ 25.00 million
Loan 2589-PNG: Civil Aviation Development Investment Program - Project 1
Asian Development Fund US$ 50.00 million
Loan 2590-PNG: Civil Aviation Development Investment Program - Project 1
Asian Development Fund US$ 20.00 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 Effective gender mainstreaming
Description The program involves upgrading and rehabilitation of airports identified under project 1: (i) Wewak, (ii) Hoskins, (iii) Gurney, (iv) Mt. Hagen, and (v) Jackson's domestic airport. The first tranche will finance the following under project 1: (i) Improvements in pavements and fencing identified as requiring emergency works to comply with ICAO safety and security standards; (ii) Support for (a) engineering design, preparation of bid documents, and procurement by the NAC; and (b) preparation by the NAC of investment proposals for subsequent projects and tranches for ADB approval; and (iii) Consulting services to NAC for the supervision of (a) airport improvement contracts for the five project 1 airports, and (b) long-term maintenance contracts for these five airports. In addition to the five airports, two others (Kavieng and Goroka) will have new security fences installed.
Project Rationale and Linkage to Country/Regional Strategy Civil aviation (i) supports the socioeconomic development of the country by providing safe, efficient, reliable, sustainable, and affordable aviation services and infrastructure; (ii) gives all weather access to the country and increases the mobility of communities; and (iii) serves important community needs by making noncommercial destinations more accessible. Capacity constraints and deteriorating infrastructure, however, threaten the safety certification of the airports and place these socioeconomic objectives at risk. The CAA's well articulated sector development plan (Civil Aviation Authority. 2008. Strategic Investment Plan. Port Moresby) addresses the risks, but the agency needs help in carrying out the plan and meeting obligations. External funding to rehabilitate and upgrade the national airports will support the Government's Medium Term Development Strategy (MTDS) objectives of economic growth, rural development, poverty reduction, and human resource development.
Impact Economic growth and poverty reduction in project areas
Project Outcome
Description of Outcome Safer,more efficient,and more accessible all-weather air transport services in the project area
Progress Toward Outcome Project benefit monitoring is ongoing to assess progress.
Implementation Progress
Description of Project Outputs

A. Reformed Institutions: Sustainable and focused operational units established for airports, air traffic services, property development, and regulatory oversight.

B. Improved Infrastructure: 1. Air-side infrastrucure meets safety and security certification requirements. 2. Air-side infrastructure and land-side facilities meet future operational and capacity requirements. 3. Airport maintenance practices improved.

C. Improved Operations: 1. Equipment for communications navigation and surveillance equipment modernized to meet air traffic management requirements. 2. Fire safety and rescue equipment meets operational requirements.

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

A. Restructuring of former CAA is completed. Three separate entities - National Airports Corporation, PNG Air Services Ltd and Civil Aviation Safety Authority - have been established. The three institutions are fully operational.

B. Security fencing construction work in Kavieng is completed as at June 2012. NAC signed the Port Moresby domestic airport apron extension contract in May 2012 and work is ongoing. NAC also signed the contract for security fencing work at Hoskins, Goroka, Wewak and Gurney airport in August 2012 and contractor has commenced work. NAC issued bids for Hoskins Airport Upgrade of the runway on 02 March 2012 and bids closed on 11 May 2012. NAC signed the contract with the selected bidder on 22 April 2013.

NAC issued bids for Mt. Hagen terminal construction on 15 February 2012 and bids closed on 16 May 2012. NAC signed the contract with the selected bidder on 22 April 2013. NAC is formulating initial work for asset management.

C. PNG Air Services Ltd commissioned the Port Moresby airport's Instrument Landing System (ILS) on 19 April 2011.

ADB approved the contract award for the three fire equipment on 3 February 2012. NAC signed this contract on 27 April 2012 and commissioned the fire trucks on the 18 April 2013.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Measures taken as identified in the Initial Environmental Examination.
Involuntary Resettlement Consultation with parties likely to be affected ongoing.
Indigenous Peoples None.
Stakeholder Communication, Participation, and Consultation
During Project Design An initial extensive program of consultation has taken place. During the project preparatory technical assistance fact-finding stage, a stakeholder analysis was carried out to identify the major important stakeholders, their interest in the proposed program, their perceptions of current problems related to safety and security associated with airport operations, passenger terminal logistics, and civil aviation services, and the resources they could bring to the achievement of goals and objectives of the program. Meetings have been held at the national level with Civil Aviation Authority (CAA), Ministry of Transport (MOT), the Deptartment of National Planning and Monitoring, the Deptartment of Treasury, Air Niugini Airlines, Airlines of PNG, PNG Air Services Ltd., PNG Airports Ltd., and the Australian Agency for International Development (AusAID) and its Transport Sector Support Program (TSSP).
During Project Implementation There is continuing dialogue and consultation with all stakeholders through the Project Steering Committee Meetings held semi-annually. Regular monthly meetings are also held between the Executing Agency and PIU staff of ADB Country Office parallel to consulatations held at higher level and lower levels of the Government bureacracy associated with the project.
Business Opportunities
Consulting Services BECA International was engaged for the Design and Supervision consultants contract to undertake detailed design and supervision - The contract was awarded and signed on the 28 June 2011. BECA specialists commenced work on the 11 of July 2011.
Procurement

1. Jackson Domestic Airport Parking Apron - Procurement Committee approved contract April 2012. Contract signed May 2012. Contractor commenced work in July 2012.

2. Security Fences - Kavieng Security Fencing contract package awarded and signed in April 2011. Fencing works completed and taking over ceremony held in June 2012. Contract for other security fencing packages (Gurney, Wewak, Hoskins, Goroka) approved in February 2012, contract signed in August 2012 and construction work currently ongoing.

3. Equipment - POM ILS contract completed and commissioned on 19 April 2011. ILS became fully operational on the 20 April 2011 . Port Moresby 3 FireTrucks contract approved on 3 February 2012. Contract signed on 27 April 2012. Shipment of 3 Fire equipment arrived in March 2013 and are commisioned.

4. Hoskins Airport Upgrade - NAC issued bids for Hoskins Airport Upgrade of the runway on 02 March 2012 and bids closed on 11 May 2012. PC approved award of contract on 18 January 2013. No objection letter to award of contract issued to NAC on 21 January 2013. Contract was signed in April 2013.

5. Mt. Hagen Terminal Building - NAC issued bids for Mt. Hagen terminal construction on 15 February 2012 and bids closed on 16 May 2012. PC paper approved contract Feb 12, 2013. Contract was signed in April 2013.

Responsible ADB Officer Muhammad Amir Ingratubun
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
Civil Aviation Authority of Papua New GuineaJKINTAU@CAA.COM.PGP.O. Box 684 Boroko, Papua New Guinea
Timetable
Concept Clearance 28 May 2009
Fact Finding 18 May 2009 to 03 Jun 2009
MRM 15 Jul 2009
Approval 01 Dec 2009
Last Review Mission -
PDS Creation Date 08 Oct 2010
Last PDS Update 21 May 2013

Loan 2588-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Dec 2009 28 Jan 2010 22 Mar 2010 30 Jun 2013 31 Dec 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 42.00 Cumulative Contract Awards
ADB 25.00 01 Dec 2009 22.92 0.00 92%
Counterpart 17.00 Cumulative Disbursements
Cofinancing 0.00 01 Dec 2009 19.38 0.00 78%

Loan 2589-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Dec 2009 28 Jan 2010 22 Mar 2010 30 Jun 2013 31 Dec 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 01 Dec 2009 44.43 0.00 95%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 01 Dec 2009 39.53 0.00 85%

Loan 2590-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
01 Dec 2009 28 Jan 2010 22 Mar 2010 30 Jun 2013 31 Dec 2015 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 20.00 01 Dec 2009 17.74 0.00 95%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 01 Dec 2009 15.80 0.00 85%

Evaluation Documents

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