Regional: Institutional Strengthening for Aviation Regulation

Sovereign Project | 43429-012

Summary

The project will increase aviation security and safety in member countries by ensuring that laws, regulations, technical documentation, and procedures are current, compliant with ICAO requirements, and harmonized across the region. A fragmented system will be replaced with a consistent and proactive operating environment, thus improving security and safety and reducing costs. It will create economies of scale that allow PASO to become financially self-sustaining, while at the same time lowering costs and improving service quality.

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Project Name Institutional Strengthening for Aviation Regulation
Project Number 43429-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7684-REG: Institutional Strengthening for Aviation Regulation
Technical Assistance Special Fund US$ 900,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Air transport
Gender Equity and Mainstreaming No gender elements
Description The project will increase aviation security and safety in member countries by ensuring that laws, regulations, technical documentation, and procedures are current, compliant with ICAO requirements, and harmonized across the region. A fragmented system will be replaced with a consistent and proactive operating environment, thus improving security and safety and reducing costs. It will create economies of scale that allow PASO to become financially self-sustaining, while at the same time lowering costs and improving service quality.
Project Rationale and Linkage to Country/Regional Strategy

The Pacific Aviation Safety Office (PASO) was established by an Asian Development Bank (ADB) regional loan in 2005 to provide safety and security oversight to the aviation sector. The organization has 13 member countries: Australia, Cook Islands, Fiji Islands, Kiribati, Nauru, New Zealand, Niue, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. PASO's core responsibilities are to provide oversight and advice on (i) aerodrome security and safety, (ii) flight operations, (iii) airworthiness of aircraft, and (iv) personnel licensing. Overall strategy, policy, and problem resolution is provided by a Council of Directors that represents member governments and includes advisers from the aviation industry, multilateral agencies, and established safety oversight authorities.

All developing member countries of PASO have acceded to the Pacific Islands Aviation Safety and Security Treaty, which requires regulatory harmonization. In order to maximize the efficiency and effectiveness of PASO operations and create a least-cost operating environment for airlines, the legislation and regulations of member countries must be harmonized to create a common inspection regime and common compliance protocols. The technical assistance (TA) will assist developing member countries of PASO to update and harmonize their legislation and regulations. The TA will also examine the financial performance and revenue model of PASO with respect to both its fee structure and member countries' aviation revenue base, and assist PASO to refine its management systems to ensure sustainability.

Impact PASO member countries achieve increased aviation safety and security.
Project Outcome
Description of Outcome PASO member countries apply harmonized national aviation legislation and regulations.
Progress Toward Outcome All PASO member countries have acceded to the Pacific Island Aviation Safety and Security Treaty, which requires regulatory harmonization.
Implementation Progress
Description of Project Outputs

Detailed drafting instructions, legal advice, and model frameworks for revisions to national aviation laws and regulations are produced.

PASO member countries have the ability to generate sufficient revenues for oversight.

PASO achieves financial sustainability.

A comprehensive audit of PASO financial performance is completed.

Status of Implementation Progress (Outputs, Activities, and Issues) To be assessed later.
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The PASO Council of Directors - the governing body comprising representatives of each member government - has been closely involved in drafting the proposed TA through regular review missions related to the ongoing project, and has agreed to the impact, outcome, outputs, implementation arrangements, cost, financing arrangements, and terms of reference. The proposal has also been the subject of consultations with government and airlines through previous regional TA and presentations to the Association of South Pacific Airlines; and has been coordinated closely with external agencies active in the Pacific aviation sector, including the International Civil Aviation Organization (ICAO), the United States Federal Aviation Agency, the Australian Civil Aviation Safety Authority, the New Zealand Civil Aviation Authority, and the Pacific Islands Forum Secretariat.
During Project Implementation Consultations will be held with government and industry stakeholders. To ensure ownership and cooperation, PASO will provide initial and follow-up briefings and conduct training for the officials and management of the CAAs, airlines, and airpors of member countries on the new safety and security systems and the inspection, surveillance, and certification programs they require.
Business Opportunities
Consulting Services About 27 person-months of international consulting services and 39 person-months of national consulting services will be required. Consultants will be engaged for the positions of an international aviation legal specialist, a number of national legal advisers to be determined, two international regulatory specialists, and an international financial management specialist. Consultants will be engaged through a firm, using quality- and cost-based selection (QCBS) procedures with an 80:20 weighting and based on simplified technical proposals. In addition, a national specialist will be engaged as an individual consultant to conduct a financial audit. All consultants will be engaged in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time).
Responsible ADB Officer Shigehiko Muramoto
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Executing Agencies
ADB POHQRegional
Timetable
Concept Clearance 26 Nov 2010
Fact Finding 29 Nov 2010 to 03 Dec 2010
MRM -
Approval 09 Dec 2010
Last Review Mission -
PDS Creation Date 24 Nov 2010
Last PDS Update 02 Sep 2011

TA 7684-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2010 - 09 Dec 2010 31 Dec 2013 30 Apr 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 0.00 0.00 0.00 0.00 900,000.00 09 Dec 2010 657,109.62

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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