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

Sovereign Project | 38349-013 Status: Active

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. 

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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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 Active
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

Achievement of Project outcomes is getting delayed due to slow implementation and effect of 2015 Earthquake and trade embargo in Nepal boarder.

## Safety aspects have been improved due to installation of Communication Navigation Surveillance (CNS) and Air Traffic Management (ATM) equipment, Visual Alignment Guidance System (VAGS); Abbreviated Precision Approach Path Indicator (A-PAPI) and Snow plough and firefighting equipment in the said airports.

## Regarding capacity development of CAAN various institutional policies, acts, regulations and capacity development plan have been prepared and is under review at MOCTCA.

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)

# Under Output i) after normalization of the fuel supply in February 2016, works has been resumed lately in mid-July 2016 but at very low pace. Currently construction works are carrying only in International Terminal Building and substations. Supply and installation of CNS and ATM equipment and installation of is completed at TIA. Baggage Handling Systems (BHS) 3 and 4 are operational at TIA Arrival from 6 May 2016.

# Under output ii); Installation of CNS and ATM equipment and VAGS and A-PAPI are completed at Lukla. Supply of snow plough and firefighting equipment is completed in Simikot and Rara airports.

# Under output iii);Components on planning; business planning; private sector participation; and on enhancing non- aeronautical revenues have been completed. Component on human resources development; restructuring, and legal have been substantially completed, whereas component on MIS and computerization are delayed due to rebidding. At present procurement process (hardware and networking) is ongoing.

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 NA.
Indigenous Peoples NA.
Stakeholder Communication, Participation, and Consultation
During Project Design Various level consultation with concerned stakeholders were done during project design.
During Project Implementation All concerned Project stakeholders are being communicated, consulted,and keep on board during the Project implementation in making the project related decision and as and when needed.

Business Opportunities

Consulting Services All consultants under the Project were recruited in accordance with ADB's Guidelines on the Use of Consultants. For detail design and supervision, a firm of international consultants was 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 60 calendar months of services. For the development and implementation of the capacity development program, a firm of international consultants was recruited using quality- and cost-based selection procedures, with full technical proposal and a 90:10 proportion of quality to cost. Under grant component of the Project 2 consulting packages have already been procured and are in different stages of implementation.
Procurement All procurement to be financed under the Project were carried out in accordance with ADB's Procurement Guidelines. International competitive bidding (ICB) was used for procurement of works estimated to cost more than $1.0 million and for goods estimated to cost more than $500,000. Under loan component of the Project 1 works package,1 goods package have already been procured and are in different stage of implementation.

Responsible Staff

Responsible ADB Officer Gagan Raj Rai
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Civil Aviation Authority of Nepal
Mr. Dhurba Dass Bhochhibhoya
[email protected]
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 28 Sep 2016

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 31 Dec 2018 -
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 9.09 0.00 91%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2009 8.07 0.00 81%
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 31 Dec 2018 -
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 58.93 0.00 92%
Counterpart 12.00 Cumulative Disbursements
Cofinancing 0.00 23 Nov 2009 25.50 0.00 40%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

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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