ARCHIVES HISTORIQUES DE LA COMMISSION
COLLECTION RELIEE DES DOCUMENTS "COM"
COM (84) 330
Vol. 1984/0146
Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant l'ouverture au public des archives historiques de la Communauté économique européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 (JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning the opening to the public of the historical archives of the European Economic Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar 1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003 (ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben. COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 330 final Brussels, 19 June 1984
Transmission to the Council for decision of a financing proposal on which the Committee has not delivered a favourable opinion (Article 20, para 2 of the Internal Agree- ment of 1976 concerning the financing and the management of Commumnity Aid 76/165/EEC)
(Commission Communication to the Council)
COM(84) 330 final r j
Transmission to the Council for decision of a financing proposal on which the Committee has not delivered a favourable opinion (Article 20^. p^ar a'2 of'the Internal Agreement of 197~6~ concerniiig^the financing and the management of Community Aid 1 76/165/EEC))
(Commission Communication to the Council)
During the course of the 189th meeting of the EDF Committee on 10 April 1984, the Commission submitted the following project for its appraisal:
LESOTHO (4th EDF - Special Loan - 3 000 000 ECU)
International Airport of Maseru. Supply of: - navigational aids - meteorological equipment - telecommunications equipment prefabricated control tower cab complete with instrumentation and air conditioning.
The EDF Committee did not deliver a favourable opinion on this project.
The Lesotho authorities made it known to the Commission services on 11 April 1984 that they did not wish to be heard by the EDF Committee.
In accordance with Article 20 of the Internal Agreement, the Commission is therefore unable to take a financing decision regarding this project. Consequently, in application of Article 54, para 3, of the first Lomé Convention, the Council is herewith being approached to take a decision in accordance with the request from the Lesotho Authorities.
The main arguments put forward by certain delegations of the Member States opposing the project were as follows:
- Given the development needs of Lesotho in other sectors, it is not possible to justify the construction of a large international airport in terms of development and economic needs.
- There are contradictions between this project and certain declarations made by the Commission subsequent to the programming meeting of 24 June 1976.
- There is no explanation regarding the financing gap of 10.06 million US$. How will this be met?
- The economic and development justifications for such a project are obscure.
Repli es from the Commission Services
- The programming mission report established in March 1976 and countersigned by the then Director-General, Mr. H. Krohn, and the Minister of Finance and Development Planning of the Government of Lesotho, states the following: - 2 -
"ECONOMIC INFRASTRUCTURE SECTOR Lesotho Airport Development R 4.0 million
This item represents a contribution, together with other donors to Lesotho's airport development.
This airport is required for medium range aircraft operating to a large extent on a regional ACP basis, thus facilitating the development of regional air passenger traffic between Lesotho and other ACP and potential ACP countries and the further expansion of Lesotho's airport trade."
- In the same report it is indicated that Lesotho's specific development objectives include among others the "improvement and expansion of transport and communications, concentrating on the facilities which most directly affect economic development...".
The existing airport near Maseru cannot be developed to accommodate medium-range aircraft. The Government of Lesotho consequently decided to construct a totally new airport facility located approximately 15 km. south west of Maseru. It has secured finance from such financial institutions as the Saudi and Kuwait Funds, BADEA, OPEC, ADB, from Abu Dhabi and Finland. The princple of an EDF contribution out of Lesotho's National Indicative Programme was accepted at the time of the Lomé I programming missions and subsequent programming committee meetings with the Member States.
- Under the 5th EDF Indicative Programme for Lesotho, a further 11% (+ 3 MECU) is earmarked under the objective "Improving Lesotho's external communications as a land-locked country, by the development of its air transport services, notably with other ACP countries".
- At the SADCC Donors Conference of 19/20 November 1981 held in Blantyre, Malawi, EDF assistance to the Airport Project was reconfirmed.
- The new airport has been under construction since 1982, financed by other donors as well as the Government of Lesotho. The EDF contribution is limited to the purchase of navigational aids, meteorological and telecommunications equipment and a prefabricated control tower cab complete with instrumentation and air conditioning, all to be obtained from Community markets. This equipment will permit the safe operation of aircraft into and out of the airport by and day and by night and enable local weather conditions to be monitored and forecast, all adding to the greater flexibility and safer operation of the airport.
This equipment is essential for the airport to be operational.
- The Government of Lesotho has given a guarantee to finance out of its own resources any financing requirements which are outstanding on project completion. In the meanwhile, it is actively seeking further aid donors. - 3 -
The Government of Lesotho is solely responsible for the decision to ooinsrt;nuo± this airport, donors having succeeded only in scaling down the concept to a dimension more commensurate with the country's true transport requirements. The Community's responsibility and liability with regard to the airport is limited to providing the aforementioned equipment.
- Finally, the Commission is of the opinion that since the Lesotho Government has more than once been assured that the Community is prepared to assist in its attempts to improve its transport and communications, especially in view of the country's landlocked position, a refusal would raise grave doubts in the Government's mind as to the Community's willingness to follow through on its assurances, and serve as, a potentially damaging example to other ACP countries.
Under these conditions, and in application of Article 20 of the Internal Agreement, relating to the financing and the management of Community aid, and in accordance with the request of the Lesotho authorities, the Commission submits to the Council the attached financing proposal and proposes that it take the following decision: "The Council
"Having regard to Article 20 of the Internal Agreement relating to the financing and the management of Community Aid,
"Having regard to the Commission proposal
"Considering the justifications presented in the financing proposal and in the Commission communication to the Council
"Considering that the EDF Committee at its meeting of 10 April 1984 did not give a favourable opinion on this project proposal. "DECIDES:
"the project mentioned hereafter is approved:
REGISTRATION NO. TITLE OF PROJECT AUTHORIZED FINANCING
LE/412/76 Maseru Airport 3 000 000 ECU (Special Loan) - 4 -
"Authorisation is granted to commit a total amount of 3 000 000 ECU;
"The Chief Authorising Officer of the European Development Fund is instructed to make any arrangements and commitment decisions that prove necessary to ensure the smooth execution of the approved project under the best economical and technical conditions. COMMISSION OF THE EUROPEAN COMMUNITIES Br.ys.ç.elç. .J.am a.cy...1.98.4.
Directoret*~Generel for Development
VIII/C-3
FOR OFFICIAL USE ONLY
FINANCING PROPOSAL
IVTH EDF
l TITLE OF PROJECT Maseru International Airport ! 1 I TYPE OF PROJECT Economic Infrastructure ; Art. 46 of Lomé .I i RECIPIENT STATE Kingdom of Lesotho ■ - r ------AUTHORITY SUBMITTING Government of the Kingdom of:Lesotho THE PROJECT
REGISTRATION NUMBER OF THE PROJECT LE/ 412/76
SECTORAL CLASSIFICATION IN ACCOUNTANCY PLAN 44
COMMITMENT PROPOSED 3 000 000 ECU as a Special Loan
Indicative Exchange Rate: 1 ECU = 1.0134 Maloti (January 1984) = 0.826254 US$
Provisional address: Rua da la Loi 200, B-1049 Brussali - Talaphona 735 00 40/73580 40 - Telegraphic address: "COM EUR Brussels·· - Telex: "21 877 COMEU B" r
I. SUMMARY Of THE PROJECT This project consists of the provision of Navigational Aids, Meteorological equipment, communication systems and the control tower cab, complete with instrumentation, at the Maseru International Airport, now under construction at a site adjacent to the highway to Mafeteng, near Mazenod - about 15 km South-West of Maseru.
The equipment forming the subject of this project will be supplied and installed following an international call for tenders. The overall completion date for the new airport is set for June 1985.
The objective of the project is the facilitation of the safe day/night operation of modern aircraft for civil aviation.
The total contribution to the project is 3 000 000 ECU which are proposed to be financed by way of a special loan within the IVth EDF Indicative Programme for Lesotho. 2
11. BACKGROUND OF THE PROJECT
1. General Background
Preparation of plans to replace the existing airport was started in the early 1970s and was speeded up in 1979 following the closure of the border with Transkei, when it became apparent that Lesotho was extremely vulnerable because of lack of adequate air connections with the outside world, being totally encircled by the Republic of South Africa. The United Nations Security Council adopted, amongst its recommendations for urgent assistance to Lesotho, this project as one of top priority. (Security Council Resolutions 402 (1976) and 535 (1983); Resolution adopted by the General Assembly, 104th Plenary Meeting of 14 December 1979.)
The finance necessary for the construction of the airport is provided by the following Governments and international organisations:
Saudi Fund Kuwait Fund BADEA OPEC Abu Dhabi Finland ADB Lesotho
The financing plan is shown in Annex II.
2. Specific Background
2.1 Transport Sector
Air transportation within Lesotho is an essential component of the overall transportation sector and in many cases is the only link with the rest of the country, and in particular its capital, for certain mountain vi llages.
The unique geographical location of Lesotho dictates that international air links with other countries will assume greater significance in future, especially in the context of Lesotho's membership of the SADCC group. y
- 3 -
Recommendations concerning the development of both internal and external air transportation routes with progressive improvement to apprppriate standards of facilities were well defined in the "Lesotho Transportation Study" of 1980.
The third five-year development plan sets the following targets:
improve 22 internal airfields - complete construction and begin operations at the National Airport - strengthen the fleet of Lesotho Airways Corporation and expand its operations add international routes.
Progress in achieving these targets may be summarised as follows:
The Federal German Government, under a bilateral programme, is assisting Lesotho to improve domestic airstrips. This programme, to be funded from a grant of 14.6 million DM, involves improvements to 3 regional and certain other local airstrips. The 3 regional strips, Semongkong, Qacha's Nek and Mokhotlong, are being extended and paved and provided with terminal equipment. The others, Sehletebe, N'kaus, Lesokong, Seshole and Quthing, will be fenced, gravelled and have improvements to drainage carried out. All the work is expected to be completed by mid 1985.
The Management and Training of the Lesotho Airways Corp. was financed within the IVth EDF Multi-annual Training Programme (Doc. VIII/259/79).
A proportion of the Vth EDF Indicative Programme is allocated to improvement of aviation services (11%), of which 2.141 M ECU has been approved as a grant (Doc. VIII/07/82), to finance a 3 year integrated training and technical assistance project for Lesotho Airways Corporation. This project provides for the financing of the Management of the Airline with a view to localisation by 1987 of all aspects of its operations. The major re-equipment decisions already taken are relevant to the Development Plan targets.
2.2 Development of Air Transportation
In 1970 international passengers totalled no more than 4 000. By 1978 this figure had grown to 7 900. However, with the participation of Lesotho Airways Corporation on the main Maseru- Johannesburg route in 1979, the number of international passengers - 4
using Maseru Airport rose to 12 700, 18 400 in 1980, 28 474 in 1981 and 23 313 in 1982. The domestic passenger figures were for 1981 32 517 and for 1982 33 073.
Corresponding aircraft movements reached in 1981 and 1982:
Domestic International Year Non Ai r General Scheduled Scheduled Carrier Avi at ion
1981 5 623 1 865 1 547 1 808
1982 5 818 1 857 1 518 1 254
III. PROJECT DETAILS
1. The construction of the new Maseru International Airport started in 1982 at a site about 15 km South-West of Maseru. It is situated near the village of Mazenod adjacent to the highway to Mafeteng.
The design criteria for the new airport are those for a regional airport being able to cater for jet aircraft up to the size of types such as Boeing 727 or similar weight categories. These will be able to reach destinations in other SADCC countries.
2. As the region surrounding the existing Maseru Airport is very mountainous, its performance is severely physically constrained.
After having carried out several studies (see point II.1), the Government, after having considered various options, therefore decided in 1980 to construct a new international airport at the Mazenod site.
The International Civil Aviation Organisation (ICAO) has provided continuous technical assistance to the Lesotho Government for preparing the project.
3. The project provides for a new runway (3 200 x 45 m), aprons (13 560 m 2), taxiways (1 350 m in total), internal roads, car parks, terminal, administration and cargo buildings (6 290 rn in total) and hangar - with offices, stores and workshops (2 495 m2) - as well as the equipment necessary for permitting safe aircraft operations with B 727 aircraft or similar. 5
The master plan for the project also allows for future extensions.
The technical details of the equipment financed by the EOF are given in Annex I. This equipment comprises navigational aids, meteorological and telecommunications equipment, as well as the control tower cab.
4. In order to ensure that properly qualified personnel will be available to operate the facilities of the new airport, programmes for training, management and technical assistance have been set up, e.g. under 4th EDF (753 000 ECU) and under 5th EDF (2 141 000 ECU) financings.
5. The new Maseru International Airport will be operated under the authority of the Department of Civil Aviation under the Ministry of Transport and Communications.
6. The total cost of the project is estimated at 60 M ECU. The financing plan is given in Annex II.
A breakdown of the cost estimate of 3 000 000 ECU for the component to be financed by the EDF is given in Annex I.
7. The average annual maintenance cost for the first ten years of the operation of the EDF funded airport equipment is estimated at approximately 1% of the initial investment, i.e. approximately 30 000 ECU per annum.
8. The present situation of project implementation is as follows:
a. The preliminary works contract involving construction of the access road and perimeter security fence was completed at the end of 1982, financed by the Lesotho Government.
b. The Civil Engineering and Building contracts were awarded in April 1983 to an EEC contractor at a combined value of 35.7 M US$, equivalent to approximately 43.3 M ECU. These contracts are cofinanced by the Arab funds, ADB and Lesotho.
c. Separate tenders will be called for:
Airfield lighting, financed by Finland for an estimated amount of 4.5 M ECU
Power supply, etc. financed by the Government of Lesotho for an estimated amount of 4.4 M ECU. - 6 -
- The EDF financed equipment, for which an international invitation to tender will be issued in accordance with Art. 56.1 of the Lomé I Convention.
The overall completion date set for the new airport is June 1985.
9 . The final design and supervision contract, which is financed by the African Development Bank (ADB), was awarded to a Canadian consultant in 1981. The estimated cost of the engineering services amounts to 4.6 M ECU.
10. It is anticipated that the implementation schedule for the EDF financed components will be as follows, from the date of the signature of the financing agreement:
Issue of invitation to tender: 1 month Award of contract: 5 months Completion of works: 14 months Completion of post installation calibration services, etc.: 26 months
11. After completion of the project, the future maintenance will be undertaken by the Ministry of Transport and Communications. The EDF financing also provides for post installation calibration services and the training necessary to familiarise the technicians with the operation and maintenance during the first year after the opening of the new airport. Furthermore provision is made for such spare parts, which it is essential to have readily available in case of breakdown of equipment.
IV. EXPECTED RESULTS OF THE PROJECT
The provision of Navigational Aids and Communications Equipment will permit the safe operation of aircraft into and out of the new airport by day and by night, and offer a greater flexibility of operation by the national airline and any other airline which may serve Maseru in future.
The meteorological equipment will enable more precise local weather conditions to be monitored and forecast, permitting the more certain flight planning demanded by operators of high performance aircraft.
The proposed control tower cab is the hub of the airport's flight operations, essential to safe and efficient operations. - 7 -
The other ancillary communications equipment will support the smooth running of the groundside operation of the airport.
Following from this is the advantage of the new airport equipment in allowing a much more flexible timetabling of international flights for better onward connection at major terminals in the region and with fewer load restrictions imposed by safety considerations.
The Government is hopeful, as a result, to attract more international air freight, both of imported goods and low weight high cost exports. Plans to promote air travel tourism in Lesotho are linked to good airport facilities in the future.
V. FINANCING PLAN
The bulk of the finance necessary for the construction of the airport is from Arab loan funds and the Lesotho Government itself. The total financing plan is to be found in Annex II.
VI. SPECIAL CONDITIONS
The Government of Lesotho undertakes:
a. to provide six-monthly reports on serviceability, operation and maintenance of the EDF financed equipment
b. to make such financial and budgetary arrangements as to produce sufficient funds to cover all operating expenses, including maintenance costs, relating to the completed project.
VII. CONCLUSION AND PROPOSAL FOR A DECISION
Having regard to the opinion delivered by the European Development Fund Committee in.its meeting with regard to the supporting arguments set out above, it is proposed that the Commission take the following proposition:
FINANCING DECISION
The Commission has decided: - 8 -
to approve under the conditions laid down in the proposel before it, the project described hereunder:
Financing Registration No. Title of Project Authori sed
LE/412/76 Maseru International 3 000 000 ECU Ai rport (Special Loan)
“ to grant commitment authorisation for a total sum of 3 000 000 ECU “ to make special loan commitment authorisation for the amount of 3 000 000 ECU to instruct the Chief Authorising Officer of the European Development Fund to make any arrangements and commitment decisions that prove necessary to ensure the smooth execution of the approved project under the best economical and technical conditions. ANNEX I
KINGDOM OF LESOTHO
Maseru International Airport
Technical Annex
0 Subject A. Supply, installation, testing and calibration of navi gational aids, meteorological and telecommunications equipment as well as a stock of essential spareparts B. Control tower cab
1 Criteria International Civil Aviation Organisation (ICAO) standards.
2 Equipment a) Navigaiional_a2ds : . 1 no. I>bppler Very High Frequency ©mnirange (DVOR), 100 Watts with &istc.nce Measurements Equipment (DME) . 2 no. Low-Medium frequency Non Directional Beacons (NDB), 62.5 Watts. . 1 no. Outer Marker Beacon COM)- 75 Watts . Navigation Aids Monitoring equipment
b) Meteorological_eguipment_
c) Telecommunications equipment
. Ultra High Frequency (UHF) communications system . Terminal Building Public Address System . Mobile Communications equipment for airport vehicles with central control. d)Prefabrjcated control Tower Cab, complete with instrument- ation.and air conditioning.
3 Estimate 1. Navigational aids : 1 280 000 46.9 2. Meteorological equipment : 110 000 4.0 3. Telecommunications equipment : 765 000 28.0 4. Prefabricated Control Tower Cab : 310 000 11.4 5. Essential spare parts : 145 000 5.3 6. Post installation calibration 120 000 4.4 and training services 2 730 000 100.0 j Contingencies^price- and j currency fluctuations(+ 10X) : 270 000
j TOTAL : 3 000 000 1
' ANNEX II KINGDOM OF LESOTHO NEW MASERU INTERNATIONAL AIRPORT FINANCING PLAN
FUNDING LOAN VALUE X MILLION US# X MILLION
SAUDI FUND 15,12 S.R. 4 . 53 KUWAIT FUND 1 ,20 K.D. 4 . 29 n.ADEA 6,00 US# 6. 00 OPEC 3,00 US$ 3. 00 ADU DHABI 4,00 ED FINLAND 20,00 FM 3. 79 ADB 8,00 U.A. . 8. 91 OPEC 1,90 MALOTI 1 . 79 EDF 2. 65 3. 69 Government of Lesotho n a BALANCE 1 U , 49. 84
PROJECT COSTS US# X MILLION US# X MILLION « ECU
1. CIVIL WORKS SAUDI FUND 4, 53 KUWAIT FUND 4, 29 BADEA 6, 00 OPEC 3, 00 ABU DHABI 1 , 12 BALANCE 6, 68 25. 63 31.0
2. BUILDING WORKS ADB 4, 96 OPEC (2) 1 , 79 BALANCE 3, 38 10. 13 12.3
3. NAVAIDS, COMM. _* 3. c ETC. EDF 2, 65 2. 65 « 4. AIRFIELD 4.5 LIGHTING ETC. FINLAND 3, 79 3. 79
5. ENGINEERING SERVICES ADB 3, 84 3.84 4.6
6 . PV.'C , POWER SUPPLY ETC. GOL 3, 69 3. 65 4.4 « 49. 73 60.0 ____
Note: Exchange Rate 1 US$ = 1.210 ECU
Not including contingency ano maintenance contract.. ANNEX III
LEGEND «
6 EXISTING AIRSTRIPS
T H 0 T A ~ Ξ Ä -- ivi OLÌ A i R P O R T LESOTHO