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

Sovereign Project | 38349-013

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.

Project Name
Air Transport Capacity Enhancement Project (formerly Civil Aviation Airport Development Project)
Project Number
38349-013
Country / Economy
  • Nepal
Project Status
Closed
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)
Source Amount
Asian Development Fund US$ 10.00 million
Loan 2581-NEP: Air Transport Capacity Enhancement Project (formerly Civil Aviation Airport Development Project)
Source Amount
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
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

Improved transport connectivity in Nepal.

Project Outcome

Description of Outcome

Improved safety and capacity at TIA; enhanced safety at the remote domestic airports at Lukla, Rara and Simikot; and improved institutional capacity of CAAN.

Progress Toward Outcome
Following outputs have been finalized by CAAN: Civil Aviation Act, National Air Transport Development Plan and Due diligence studies for private sector participation. CAAN will finalize the Corporate Business Plan and Human Resources Development Plan.

Implementation Progress

Description of Project Outputs

TIA's airside reconfigured for safety, landside infrastructure improved, and the CNS/ATM equipment upgraded

Basic safety infrastructure improved at the remote domestic airports in Lukla, Rara, and Simikot

CAAN's organizational and management capabilities enhanced

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

The ICB-01 contract was terminated from 27 Dec 2016 with overall physical progress of 17.39% . Remaining works are packaged into 3 NCB contract packages - NCB-02: International Terminal Building Expansion awarded in August 2017, physical progress is 18.85%; NCB-01: Runway Extension awarded in October 2017; and NCB-03: Utility Works in October 2017, physical progress is 29.48%.

All works under ICB-02 is completed.

same as above

Equipment (VAGS and A-PAPI) have been installed in Lukla airport and are operational. At Rara and Simikot airports, supply of Snow Plough and fire fighting

equipment are completed. Supply of AFL and supply of CNS/ATM equipment is completed. Meteorological Authority is working on getting a full laboratory set up to enable the certification of RVR data.

Geographical Location
Simikot Airport, Talcha Airport, Tenzing-Hillary Airport, Tribhuvan International Airport

Safeguard Categories

Environment
B
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
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 (DSC), 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. 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.

The DSC contract expired on March 2017. Recruitment of new construction supervision consultant (CSC) is ongoing. The CSC will be recruited following Quality and Cost Based Selection (QCBS) method using full technical proposal.

Procurement

All procurements to be financed under the Project were carried out in accordance with ADB's Procurement Guidelines updated from time to time. 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 (ICB-01) and 1 goods package (ICB-02) have been procured. Goods package is completed but works package is terminated.

Re-procurement of outstanding works will also be carried out in the same way however, for International competitive bidding (ICB) for procurement of works, a threshold of $10.0 million will be adopted as per the recent modification.

Contact

Responsible ADB Officer
Chong, Sin Wai
Responsible ADB Department
South Asia Department
Responsible ADB Division
Transport and Communications Division, SARD
Executing Agencies
Civil Aviation Authority of 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
03 Jul 2019

Funding

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 29 Oct 2019
Financing Plan
  Total (Amount in US$ million)
Project Cost 10.00
ADB 10.00
Counterpart 0.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 9.04 0.00 90%
Cumulative Disbursements 17 Jun 2022 9.04 0.00 90%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory 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 29 Oct 2019
Financing Plan
  Total (Amount in US$ million)
Project Cost 82.00
ADB 70.00
Counterpart 12.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jun 2022 28.26 0.00 100%
Cumulative Disbursements 17 Jun 2022 28.26 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Air Transport Capacity Enhancement Project: Project Completion Report Project/Program Completion Reports Aug 2020
Air Transport Capacity Enhancement Project Proactive Integrity Reviews (PIR) May 2014
Air Transport Capacity Enhancement Project Procurement Plans Mar 2014
Financing Agreement for Air Transport Capacity Enhancement Project between Nepal and ADB dated 25 May 2010 Financing Agreement Jan 2010
Project Agreement for Air Transport Capacity Enhancement Project between ADB and Civil Aviation Authority of Nepal dated 25 May 2010 Project/Program Agreements Jan 2010
Air Transport Capacity Enhancement Project Reports and Recommendations of the President Oct 2009
Air Transport Capacity Enhancement Project Design and Monitoring Frameworks Aug 2009

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

Title Document Type Document Date
Nepal: Air Transport Capacity Enhancement Project Validations of Project Completion Reports Apr 2021

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Tenders

Tender Title Type Status Posting Date Deadline
Loan/Grant Nos. 2581/0181-NEP: Air Transport Capacity Enhancement Project [ATCEP/NCB-03] Invitation for Bids Closed
Loan No. 2581-NEP: Air Transport Capacity Enhancement Project [ATCEP/2017-01] Invitation for Bids Closed
Loan No. 2581-NEP: Air Transport Capacity Enhancing Project Prequalified applicants Archived

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CONSTRUCTION SUPERVISION CONSULTANT Grant 0181 12 Jul 2018 INTERCONTINENTAL CONSULTANTS & TECHNOCRATS | A-8 GREEN PARK NEW DELHI INDIA Civil Aviation Authority of Nepal 979,950.00
UTILITY WORKS AT TIA Loan 2581 06 Nov 2017 M/S ASHISH-PRERA (JV) | GPO BOX NO. 20732, NAYABATO LALITPUR NEPAL Civil Aviation Authority of Nepal 1,840,970.00 1,840,970.00
RUNWAY EXTENSION AND ASSOCIATED WORKS AT TIA Loan 2581 21 Nov 2017 SHANXI CONSTRUCTION ENGINEERING (GROUP) CORP | 9 XINGJIAN ROAD, TAIYUAN, SHANXI CHINA,PEOPLE'SREP.OF Civil Aviation Authority of Nepal 4,761,424.00 4,761,424.00
INTERNATIONAL TERMINAL BUILDING EXPANSION & RECONFIGURATION AND ASSOCIATED WORKS AT TIA Loan 2581 05 Sep 2017 M/S SHARMA-PRERA-ASHISH (JV) | GPO BOX NO. 20732, NAYABATO LALITPUR NEPAL Civil Aviation Authority of Nepal 7,523,466.00 7,392,943.00

Procurement Plan

Title Document Type Document Date
Air Transport Capacity Enhancement Project Procurement Plans Mar 2014