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Namibia Airport Study - Feasibility Studies, Preliminary Design and Master Plans for Namibia Airports

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Namibia Airport Study - Feasibility Studies, Preliminary Design and Master Plans for Namibia Airports AFRICAN DEVELOPMENT BANK Language: English Original: English MIDDLE INCOME COUNTRIES (MIC) TECHNICAL ASSISTANCE FUND PROJECT: NAMIBIA AIRPORT STUDY - FEASIBILITY STUDIES, PRELIMINARY DESIGN AND MASTER PLANS FOR NAMIBIA AIRPORTS COUNTRY: NAMIBIA Date: April 2010 Team Leader: P. Opoku-Darkwa, Transport Engineer, OITC.2 Appraisal Team Sector Manager (OITC.2): J Rwamabuga Sector Director (OITC): G Mbesherubusa Regional Director(ORSA): A Beileh M. Benard, OITC.1; A. Babalola, OPSM.3; D. Etienne, OITC.1, K I Mfalila, OSAN.4; Peer Reviewers TABLE OF CONTENTS 1. INTRODUCTION 1 1.1. Background 1 1.2. Study Objectives 1 1.3. Justification for use of MIC TAF Resources 2 1.4. Financial considerations for implementation of HKIA Master Plan– Study Component 1. 3 2. DESCRIPTION OF STUDY 4 2.1. Study Components 4 3. STUDY COST ESTIMATES AND FINANCING PLAN 5 3.1. Cost Estimates 5 3.2. Financing Plan 5 4. PROCUREMENT 6 4.1. Procurement Arrangement 6 4.2. Disbursements Arrangements 6 5. IMPLEMENTATION strategy 6 5.1. Proposed Implementation Schedule 6 5.2. Executing Agency 7 6. LETTER OF AGREEMENT 7 7. CONCLUSIONS AND RECOMMENDATIONS 7 7.1. Conclusions 7 7.2. Recommendations 8 ANNEXES ANNEX 1 – MAP OF NAMIBIA, AIRPORT LOCATION ANNEX 2 - PHOTOGRAPHS ANNEX 3 - IMPLEMENTATION SCHEDULE ANNEX 4 – COST ESTIMATE SCHEDULE (in USD) ANNEX 5 –REQUEST FORM ANNEX 6 –LETTER OF AGREEMENT ANNEX 7 – ABRIDGED TERMS OF REFERENCE FOR TECHNICAL ASSISTANCE FOR THE ENHANCEMENT OF EXISTING AIRPORT INFRASTRUCTURE This report has been prepared by Mr P. Opoku-Darkwa, OITC.2 (Ext 3142). Any matters relating to this report may be referred to Mr. J. Rwamabuga, Manager, OITC.2, (Ext. 2181), Mr. G. Mbesherubusa, Director, OITC (Ext. 2034) and Mr. A Beileh, Regional Director, ORSA (Ext 2039). LIST OF ABBREVIATIONS ADB = African Development Bank CSP = Country Strategy Paper DANIDA = Danish International Development Assistance EMP = Environmental Master Plan ESMP = Environmental and Social Master Plan GRN = Government of the Republic of Namibia HKIA = Hosea Kutako International Airport ICAO = International Civil Aviation Organisation MIC = Middle Income Countries MoWT = Ministry of Works and Transport NAC = Namibia Airports Company NDP3 = Third National Development Plan PPP = Public Private Partnership QCBS = Quality and Cost Based Selection QBS = Quality-Based Selection SADC = Southern Africa Development Community TAF = Technical Assistance Fund TOR = Terms of Reference UA = Unit of Account USD = United States Dollar GRANT INFORMATION Client’s Information BORROWER: Government of the Republic of Namibia (GRN) IMPLEMENTING AGENCY: Namibia Airports Company (NAC) Financing Plan Source Amount Instrument ADB (95%) UA 594,000 MIC Grant GRN/NAC (5%) UA 31,000 NAC Budget Total Cost UA 625,000* *Based on preliminary cost estimate MIC Grant Currency: UA Currency Equivalents (April, 2010), 1 UA=11.136 NAD 1 UA=1.518 USD 1 UA=1.126 EURO Proposed Timeframe for Main Milestones Submission of MIC Grant to Country teams: February 2010 Submission to MIC Grant Committee (OIVP): May 2010 MIC Grant Submission for Board approval: June 2010 (Lapse of Time Basis) MIC Grant Approval: June 2010 Grant Effectiveness: July 2010 First Disbursement: post- September 2010 Last Disbursement: September 2011 ii HIERARCHY OF EXPECTED RESULTS REACH/ BENEFICIARIES PERFORMANCE INDICATORS INDICATIVE ASSUMPTIONS / OBJECTIVES TARGETS AND RISKS TIME FRAME GOAL: IMPACT: Efficient operational Transport . Namibia economy . Economic growth and productivity Provides the NAC/GRN To promote economic and social development by system leads to: . Environment (wild life (%). framework to meet commitments to enhancing existing infrastructure to meet increased impact) . Increased Revenue by NAC (% Vision 2030/NDP3 adhere to Namibia operational activities of the airports. Financial independence and turnover increase) targets and time Vision 2030 &NDP3 competitiveness of parastatals . Tourism industry . Revenue from tourism sector. frame. goals. (NAC) . number of SMEs – lodging & . Relieve government of capacity . Rural and Urban population accommodation industry Risk: constraints . Reduced unemployment (% Not meeting the . Creating new SMEs . SMEs and Private investors workforce unemployment) Vision 2030/NDP3 . Employment opportunities to rural . Meet the objectives of section 4.2.2 goals and urban population (Transport Infrastructure) of NDP3 . Facilitates/Fosters Private . Growth in SMEs competitiveness Decline in tourism participation (No. of new businesses, tax revenues) OBJECTIVES: OUTCOMES: . An output that facilitates enhanced operational Efficient air transport infrastructure . GRN . Readiness for implementation (% Completion of Timely approval of efficiencies and capacity, optimises land-use with strict system. Study outcomes: . NAC design completion) consultancy services Grant agreement and adherence to environment and social parameters. Completed and submitted Final . Population of Namibia . Meets long term objectives (% within 12months of effectiveness environmental and land-use master . Customers/Passengers design completion) contract award. plans. Local aviation industry . Facilitates private sector (forecast July 2011) Risks: . Completed and submitted involvement (%of private sector Stalled implementation feasibility study and design interest) due to funding deliverables in readiness for . Meeting the conditions on Climate limitations implementation for HKIA. change ACTIVITIES OUTPUTS Assumptions Consulting Services for developing Deliverables Consultant . Contract award and completion (May Submission of Timely delivery of . Feasibility study & design of HKIA (terminal buildings) - . Feasibility Study Report and 2010) deliverables by July project output. Reviewing the 2004 feasibility study report, update study, Detailed Design of HKIA Terminal NAC 2011. Minimal scope design optioneering and preliminary detailed design. Buildings; . Timely delivery of outputs change. Environmental master plan (8no. airports) - Performing Public (public consultation) (12months). studies and surveys in establishing balance between . Environmental Master Plan Risk operations, infrastructure systems and the environment (Reports/Drawings); . All deliverables meet requirement on Delay to the including social systems. readiness for implementation (% submission of the Land-use planning (5no. airport) - Studies and surveys on . Master /Land Use Plan Deliverable design completion) completed airport operations to develop airport layout that optimises (Reports/Drawings) deliverables by the land-use for operational facilities. Cost (against output) within budget consultant. Costs (‘000 UA,)* Cost escalation Source FE LC Total Scope change MIC Fund 282 312 594 GRN/NAC 15 16 31 Total 297 328 625 * including contingencies 1. INTRODUCTION 1.1. Background 1.1.1. The Government of the Republic of Namibia (GRN) has requested financial assistance from the African Development Bank (ADB), proposing to utilise the Bank‟s MIC Technical Assistance Fund facility, to undertake project preparation activities on existing airport infrastructure. Launched in 2004, Namibia‟s Vision 2030 Paper laid out the fundamental framework and development objectives to transform the economic and social landscape for the future. Complementing the Vision 2030 report is the Third National Development Plans (NDP3, June 2008), both aligned with the Bank‟s CSP, in which strategies to enhance transport infrastructure form a key part. 1.1.2. Consistent with GRN‟s strategy on parastatals to provide effective and efficient transport infrastructure, the National Airport Company (NAC), a wholly state-owned and autonomous enterprise and executing agency, was established to operate eight (8) regional airports. Due to increased aviation and passenger activities, taking into consideration the growth potential of the sector through increased tourism which is a major source of employment, the existing infrastructure has progressively been rendered obsolete with limited operational capacity. 1.1.3. In 2004, a study funded by the Danish Trust Fund, managed by the African Developments Bank, was carried out to develop a conceptual master-plan for the international airport Hosea Kutako International Airport (HKIA) with a limited scope to investigate design concepts and framework for future development of the airport. The remit excluded other airports. 1.1.4. GRN‟s request for assistance to enable NAC manage and execute the infrastructure improvement programme was formally received in July 2009 accompanied by draft Terms of Reference (TOR) prepared by selected consultants. A project identification mission subsequently followed in early November 2009. The information collated and evaluated forms the basis of the proposal report. 1.1.5. The purpose of the study is to facilitate the upgrade of existing airport infrastructure to a standard that aligns with current and future aviation demands by providing sustainable solutions which at its core also addresses the environmental and socio-economic issues directly impacting the population and the country as whole. 1.1.6. The study constitutes a „project preparation activity’ and falls under the heading of „Priority Activities‟ described in relevant parts of section 3.4 of the Bank‟s Revised Guidelines for the Administration and Utilization of the Technical Assistance Fund (TAF) for Middle Income Countries (MIC). 1.2. Study Objectives 1.2.1. The objective of this Study is to develop relevant output of master plans and designs, facilitating enhanced operational
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