fbpx 43141-043: Civil Aviation Development Investment Program - Tranche 2 | Asian Development Bank

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

Sovereign (Public) Project | 43141-043 Status: Active

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.

 
Project Name Civil Aviation Development Investment Program - Tranche 2
Project Number 43141-043
Country Papua New Guinea
Project Status Active
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
concessional ordinary capital resources lending / Asian Development Fund US$ 15.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
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

Twelve (12) contract packages have been awarded as per the revised procurement plan (8 civil works and 3 goods contracts). Five (5) of the contracts are fully completed while 5 are over 80% (1 works and 4 goods) and nearing completion. ADB in July 2015 issued its approval for the major civil works contract package for Goroka Airport Upgrade and new Terminal Building. Contract was signed on 07 October 2015 and the project was physically completed in Q2, 2018. The airport upgrade and new terminal building was commissioned and opened for use in June 2018. A new Terminal Building contract package for Girua Airport signed on 04 Nov 14 was physically completed in March 2018 and also commissioned recently in May. ADB in February 2016 approved the Momote Airport Fencing. The fencing works was completed in July 2017.

There were two additional packages added in the revised procurement plan to fully utilize the loan savings identified under the project due to low bids from contracts already awarded. This packages are the Tokua Airport Security Fencing and Tari Airport Upgrade. Tokua airport security fencing contract was signed on 24 May 2018 and works commenced in July, 2018. Tari airport upgrade was approved by ADB on 17 July 2018 and the contract was signed on 24 August 2018. The only remaining package under goods which is the Standby Gensets for Nazab/Tokua was approved by ADB on 19 September 2018. Contract signing is expected around October 2018.

The Overall progress of the tranche is up to 78 percent complete. A revised procurement plan was approved by ADB in December 2017 and included the two additional works packages discussed above. A loan extension request for the tranche by the Borrower was approved in October 2017. The loan was extended by 15 months from the closing date of 30 September 2017 to 31 December 2018. A second loan extension was approved by ADB recently on 17 July 2018 extending the loan from 31 December 2018 to 24 November 2019.

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. Ongoing. Three entities NAC, PNGASL and CASAPNG established.

ADB is working closely with NAC on institutional capacity development for the three entities, which includes the ongoing funding support for training, support to PMIA PPP initiative and ongoing maintenance of airport facilities.

2. The following contract packages are completed under the MFF program.

Tranche 1- Hoskins Airport Pavement Upgrade and Runway Extension, Port Morseby Jacksons Airport Parking Apron and Mt. Hagen Airport New Terminal Building.

Tranche 2 - Vanimo Airport pavement upgrade, Simbu Airport pavement upgrade, Girua Airport Pavement Upgrade and new Terminal Building and Goroka Airport Pavement Upgrade and Extension and New Terminal.

Security fencing projects for Kavieng, Hoskins, Wewak and Goroka were completed under Tranche 1.

Under tranche 2, the security fencing for Momote Airport is complete, while fencing for Buka Airport is still at 70% physical completion.

3. Instrument Landing System (ILS) for Port Moresby Jacksons airport was completed under tranche 1. Work on the CNS/ATM contract package under tranche 2 is currently ongoing and up to 80% completion.

Geographical Location Nation-wide, Buka Airport, Chimbu Airport, Goroka Airport, Momote Airport, Popondetta Airport, Vanimo Airport
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.

NAC has maintained national overall safeguards officer from Tranche 1 to current Tranches 2 and 3.

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 Villareal, Maria Theresa J.
Responsible ADB Department Pacific Department
Responsible ADB Division Papua New Guinea Resident Mission
Executing Agencies
National Airports Corporation
[email protected]
PO Box 684, Boroko, National Capital District Papua New Guinea
Timetable
Concept Clearance -
Fact Finding -
MRM 13 Jun 2013
Approval 25 Nov 2013
Last Review Mission -
Last PDS Update 28 Sep 2018

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 24 Nov 2019 -
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 104.25 0.00 91%
Counterpart 40.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 89.04 0.00 77%

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 24 Nov 2019 -
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 13.33 0.00 98%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 12.30 0.00 90%

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.

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.

Title Document Type Document Date
Civil Aviation Development Investment Program - Tranches 2 and 3: Environmental Monitoring Report (July-December 2018) Environmental Monitoring Reports Mar 2019
Civil Aviation Development Investment Program - Tranches 2 and 3: Environmental Monitoring Report (January-June 2018) Environmental Monitoring Reports Jul 2018
Civil Aviation Development Investment Program - Tranches 2 and 3: Social Monitoring Report (January-June 2018) Social Monitoring Reports Jul 2018
Civil Aviation Development Investment Program - Tranches 2 and 3: Social Monitoring Report (July-December 2017) Social Monitoring Reports Feb 2018
Civil Aviation Development Investment Program - Tranches 2 and 3: Environmental Monitoring Report (July-December 2017) Environmental Monitoring Reports Feb 2018
Civil Aviation Development Investment Program - Tranche 2: Environmental Monitoring Report (January-June 2017) Environmental Monitoring Reports Jul 2017
Civil Aviation Development Investment Program - Tranche 2: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Mar 2017
Civil Aviation Development Investment Program - Tranche 2: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
Civil Aviation Development Investment Program - Tranche 2: Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2016
Civil Aviation Development Investment Program - Tranche 2: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Jul 2016
Civil Aviation Development Investment Program - Tranche 2: Environmental Assessment and Review Framework (Draft) Environmental Assessment and Review Framework May 2013
Civil Aviation Development Investment Program - Tranche 2: Resettlement Framework (Draft) Resettlement Frameworks May 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

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.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
STANDBY POWER SUPPLY UPGRADE WORKS AT NAZAB AIRPORT,MP AND TOKUA AIRPORT,ENBP,PAPUA NEW GUINEA Loan 3069 22 Nov 2018 G-MAN CONSTRUCTION LIMITED PO BOX 2372 BOROKO,NCD PAPUA NEW GUINEA National Airports Corporation CONSTRUCTION 2,767,979.00 1,912,673.00
BEING CONTRACT FOR TARI AIRPORT PAVEMENT STRENTHEN ING AND NEW TERMINAL BUILDING, BY CHINA CIVIL ENGI NEERING CONST CORP/GANSU MECHANIZED CONST ENG CO Loan 3069 20 Sep 2018 CCECC/GMCC JOINT VENTURE P O BOX 78, GORDON 135, NCD CHINA,PEOPLE'SREP.OF National Airports Corporation CONSTRUCTION 16,787,881.00 11,501,426.00
BEING CONTRACT FOR TARI AIRPORT PSVEMENT STRENGHTE NING AND NEW TERMINAL BUILDING, BY CHINA CIVIL ENG INEERING CONST CORP/GANSU MECHANIZED CONST ENG C Loan 3070 20 Sep 2018 CCECC/GMC JOINT VENTURE P O BOX 78, GORDON 135, NCD CHINA,PEOPLE'SREP.OF National Airports Corporation CONSTRUCTION 16,787,881.00 1,495,850.00
BEING CONTRACT FOR SUPPLY AND INSTALLATION OF AIRP ORT SECURITY FENCING AND ASSOCIATED WORKS AT TOKUA AIRPORT, ENBP. Loan 3070 18 Jul 2018 G-MAN CONSTRUCTION LIMITED BOROKO, NCD PAPUA NEW GUINEA National Airports Corporation CONSTRUCTION 4,038,735.00 362,287.00
BEING CONTRACT FOR SUPPLY AND INSTALLATION OF AIRP ORT SECURITY FENCING AND ASSOCIATED WORKS AT TOKUA AIRPORT, ENBP. Loan 3069 18 Jul 2018 G-MAN CONSTRUCTION LIMITED BOROKO, NCD PAPUA NEW GUINEA National Airports Corporation CONSTRUCTION 4,038,735.00 2,781,555.00
Construction Supervision Consultant for Cadip 2 Loan 3069 16 Feb 2017 Neil England 24Th Fifth Avenue Sandgate Qld 4017 Australia National Airports Corporation Consultancy 199,480.00
Construction Supervision Consultant for Cadip 2 Loan 3070 16 Feb 2017 Neil England 24Th Fifth Avenue Sandgate Qld 4017 Austarlia National Airports Corporation Consultancy 199,480.00

Procurement Plan