Papua New Guinea: Civil Aviation Development Investment Program - Tranche 2

Sovereign Project | 43141-043 Status: Approved

Summary

ADB is helping Papua New Guinea upgrade its national airports to strengthen aviation safety and services. The second project under the program will strengthen the operations of National Airports Corporation, Papua New Guinea Air Services Limited, and Civil Aviation Safety Authority of Papua New Guinea. It will improve airport infrastructure and air traffic management and navigation services.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

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Procurement Documents


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Project Name Civil Aviation Development Investment Program - Tranche 2
Project Number 43141-043
Country Papua New Guinea
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3069-PNG: Civil Aviation Development Investment Program, tranche 2
Ordinary capital resources US$ 115.00 million
Loan 3070-PNG: Civil Aviation Development Investment Program, tranche 2
Asian Development Fund US$ 15.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport - Air transport

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed Tranche 2 will establish a sustainable civil aviation network to support the economic growth of the country. The outcome will be safer, more secure, and more efficient all-weather access to air transport services in the project areas. There are three outputs: (i) reformed institutions to strengthen and sustain the operation of the National Airports Corporation (NAC), Papua New Guinea Air Services Limited (PNGASL), and Civil Aviation Safety Authority of Papua New Guinea (CASAPNG), which were established by 2011 under Tranche 1; (ii) improved infrastructure to improve airport infrastructure; and (iii) improved operations to provide air traffic management and navigation services in accordance with international best practices to meet the commercial needs of its customers and comply with domestic and international regulations.

The executing agency (EA) for Tranche 2 will be NAC, which has experience in implementing the Investment Program, Tranche 1, and has been functioning efficiently in administering the current tranche. The EA will be responsible for design, supervision of civil works, and day-to-day implementation, financial management, and monitoring and evaluation. To complement EA's limited technical staff resources, consultants will be retained for these services. The government will form a project steering committee to oversee and monitor project implementation. The project implementation unit (PIU) will be integrated in the EA's management structure with NAC professional and technical staff as counterparts. The PIU continues its functionality in technical, procurement, financial, safeguards, monitoring, reporting. NAC has completed technical designs of civil works, including pavement rehabilitation and associated works, and security fencing and associated works, as part of advance action.

Project Rationale and Linkage to Country/Regional Strategy Civil aviation (i) supports the social and economic development of Papua New Guinea (PNG) by providing safe, efficient, reliable, sustainable, and affordable aviation services and infrastructure; (ii) gives all-weather access to the country and improves the mobility of communities; and (iii) provides access to noncommercial destinations, thereby meeting important service obligations to the community. Capacity constraints and deteriorating infrastructure, however, threaten the safety and security certification of airports and place these objectives at risk. The National Airports Corporation (NAC) has a well-articulated sector development plan for dealing with the risks but requires support to carry out the plan and meet its obligations. External funding to rehabilitate and upgrade the national airports and support their certification will advance the Medium Term Development Strategy objectives of economic growth, rural development, poverty reduction, and human resource development. Without the improvements, PNG's recent rapid economic growth may stall.
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 areas
Progress Toward Outcome Four contract packages awarded (3 civil works and 1 goods contract) and are currently being implemented. ADB in July 2015 issued it approval on the EA's recommendation to award a major civil works contract package for Goroka Airport Upgrade and new Terminal Building. Contract signing is anticipated for Q3, 2015.
Implementation Progress
Description of Project Outputs

1. Reformed Institutions

(i) Sustainable and focused operational units established for airports, air traffic services, property development, and regulatory oversight.

2. Improved Infrastructure

(i) Airside infrastructure meets safety and security certification requirements.

(ii) Airside infrastructure and land-side facilities meet future operational and capacity requirements.

(iii) Airport maintenance practices improved.

3. Improved Operations

(i) Equipment for communications navigation and surveillance equipment modernized to meet air traffic management.

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

1. Three entities NAC, PNGASL and CASAPNG established.

2. Construction works commenced in Q1, 2015 for civil works contracts already procured under tranche 2. Procuement Package for Goroka Airport Pavement Upgrade and Extension and New Terminal approved by ADB. Contract signing by Q3, 2015. Under tranche 1 the the following contracts were completed; runway extension for Hoskins airport, parking apron for Port Moresby Jackons airport and the combined security fencing projects for Kavieng, Hoskins, Wewak and Goroka airports.

3. Procurement of fire trucks and the installation and commissioning of Instrument Landing System (ILS) for Jacksons airport were also completed under tranche 1. Under tranche 2 four (4) fire trucks are being procured for Nazab, Mt. Hagen, Goroka and Tokua airports.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Proposed pavement improvements and security fencing works will not result in any significant adverse environmental impact. All potential environmental impacts can be adequately mitigated and managed, and will be monitored. An environment assessment and review framework prepared for the Multitranche Financing Facility and an Initial Environmental Examination, incorporating an environmental management and monitoring plan, has been prepared for all the subproject sites. The assessment procedures comply with ADB Safeguards Policy Statement requirements (2009). The project is classified category B for environment.
Involuntary Resettlement Tranche 2 is not expected to involve land acquisition and resettlement impacts, as all subproject works will be undertaken within NAC or state owned land and the engineering design has been revised, such as realignment of fencing at Buka, to avoid resettlement impacts. In case any unanticipated impacts are identified during construction, a resettlement plan will be prepared according to the resettlement framework. The project's involuntary resettlement classification is category C.
Indigenous Peoples Tranche 2 works will be undertaken within existing airport locations on NAC or state owned land without any impacts on customary land and are not expected to have adverse impacts on or target any distinct or vulnerable ethnic or tribal group. All subprojects will be implemented in a culturally appropriate and participatory manner. The project's classification is category C on indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were held with provincial administration in subproject sites. Since there are no village communities around the immediate proximity of subproject sites and since all civil works will be carried out within NAC owned land, consultations were not considered beyond the airport perimeter area.
During Project Implementation

NAC shall ensure that projects financed under the Facility do not have any indigenous people's impacts within the meaning of the Safeguard Policy Statement. In the event that project(s) do have any such impacts, NAC shall take all steps required to ensure that the project complies with the applicable laws and regulations of Papua New Guinea and the SPS.

Tranche 2 works will be undertaken within existing airport locations on NAC or state owned land without any impact on customary land and are not expected to have adverse impacts on or target any distinct or vulnerable ethnic or tribal group. All subprojects will be implemented in a culturally appropriate and participatory manner. The project's classification is category C on indigenous peoples.

NAC will maintain a Social and Lands officer (36 person months) and engage a Social Safeguards and Gender Specialist (international consultant, 8 person months) to assist NAC to manage social safeguard aspects. They will (i) update the due diligence reports ensuring that subprojects do not involve social issues during construction, (ii) prepare safeguard plans, if any unanticipated impacts identified; (iii) develop and implement consultation, participation and communication plan or strategies; (iv) assist in setting up and managing grievance redress mechanism; (v) identify, assess and mitigate any adverse social impacts; and (vi) prepare monitoring reports and assist in disclosure of relevant documents in line with ADB requirements.

Business Opportunities
Consulting Services The government will form a project steering committee to oversee and monitor project implementation, including policy guidance and coordination, technical design and tendering, progress reports and audited accounts. The EA will be responsible for design, supervision of civil works, and day-to-day implementation, financial management, and monitoring and evaluation. To complement EA's limited technical staff resources, consultants will be retained for these services, in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The PIU will be integrated in the EA's management structure with NAC professional and technical staff as counterparts.
Procurement NAC will procure civil works, goods and equipment under a number of procurement packages through international and national competitive bidding and shopping in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).
Responsible ADB Officer Syed Hussain Haider
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
National Airports Corporation
JKINTAU@NAC.COM.PG
Level 1, Domestic Terminal
Port Moresby International Airport
Timetable
Concept Clearance -
Fact Finding -
MRM 13 Jun 2013
Approval 25 Nov 2013
Last Review Mission -
Last PDS Update 23 Sep 2015

Loan 3069-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2013 25 Feb 2014 16 Apr 2014 30 Sep 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 155.00 Cumulative Contract Awards
ADB 115.00 25 Nov 2013 52.53 0.00 46%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 25.85 0.00 22%

Loan 3070-PNG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2013 25 Feb 2014 16 Apr 2014 30 Sep 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.00 Cumulative Contract Awards
ADB 15.00 25 Nov 2013 6.85 0.00 50%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 3.39 0.00 25%

Safeguard Documents

See also: Safeguards

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.

Evaluation Documents

See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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