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

Sovereign Project | 43141-043

Summary

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.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Air transport - Transport policies and institutional development
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
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)
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
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 Hussain Haider
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
National Airports CorporationJKINTAU@NAC.COM.PGLevel 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 11 Jun 2013

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 34.50 0.00 30%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 7.89 0.00 7%

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 4.49 0.00 33%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 1.01 0.00 7%

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.