Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

Public Disclosure Authorized

Air Transportation continues to play a pivotal role for the development of the global economy. In 2018, new global records were set when 4.34 billion passengers were transported at record 81.9 percent load factor. Passenger revenues reached USD 564 billion, which was generated by a passenger (RPK) growth of 6.5 percent. Air cargo has also reached new heights by transporting 63.7 million tons of freight (TFK), generating USD 110 billion in revenues. Overall, the air transport industry generated 55.8 billion in operational profitability, which represents 8.6 percent return on invested capital.

In terms of financial results, strong growth was experienced in North America (9.8%), Asia- Pacific (6.1%), and Europe (6%), while Africa stagnated at a low growth rate (0.6%). Latin Amer- ica growth slowed (5.6%) in 2018, and the Middle East region experienced only a modest growth (1.2%) in financial performance. In terms of profitability, the air carriers of most regions were profitable even though global profitability of the industry declined from USD 37.7 billon (2017) to USD 32.3 billion (2018). The strongest profitability was in North America, Europe, and Asia- Pacific (USD 14.7 / 7.5 / 9.6 billion), while the Middle East (USD 6 million) and Latin America (USD 400 million) were low. Only African carriers continue to experience a negative profitability with an increased loss of USD 400 million in 2018.

Nevertheless, the air transport sector’s global role for economic development continues to grow rapidly as passenger figures (6.5%) increased over twice world GDP (3.2%) in 2018. The strong development of cargo (4.1%), which over 60 million tons delivered by air accounted for a third of the value of goods traded globally, is another important element. Air transportation currently supports over 63 million direct jobs, and the global network of over 58,000 routes has estab- lished a level of connectivity which is key for the development of global trade and tourism.

Many emerging and developing countries continue to benefit from this positive development, as affordable and reliable air travel fosters economic growth by supporting trade, tourism, and for- eign direct investments. However, not all regions experience the same positive effect. In several client countries of the World Bank Group (WGB), airlines struggle to remain profitable or are supported by public funds, which are needed in other sectors. Another challenge is the require- ment of developing and maintaining required infrastructure, and complying with international standards and best practice, while traffic figures and income from the sector remain relatively low.

For over seven decades, the WBG has financed air transportation infrastructure, such as air- ports or systems. However, given the worldwide huge requirements for infra- structure financing on the one hand, and the generally solid and abundant liquidity of the private sector on the other hand, the WBG has embarked on an effort to help countries maximize fi- nance for development without pushing the public sector into unsustainable levels of debt and contingent liabilities. By applying the so called “Cascade Approach", the WBG helps countries maximize their development resources by drawing on private financing and sustainable private

sector solutions to provide value for money and meet the highest environmental, social, and fiscal responsibility standards, and reserve scarce pub- lic financing for those areas where private sector engagement is not optimal or available. This means that WBG teams are consistently test- ing—and advising clients on—whether a project is best delivered through sustainable private sec- tor solutions while limiting public liabilities, and if not, whether WBG support for an improved in- vestment environment or risk mitigation could help achieve such solutions. In air transport, especially the financing of airport infrastructure, private funding in the form or Public Private Partnerships (PPP) for airports is the preferred way of mobilizing finance.

The 14th edition of the World Bank Group (WBG) Air Transport Annual Report, outlines the support that is given to emerging and developing countries in air transportation. It summarizes the current portfolio of the air transport practice at the WBG, and highlights some of the projects in more detail. The above de- scribed new approach of financing infrastructure by involving the private sector has already shown it effect on the air transport portfolio. Given that no new ma- jor airport infrastructure projects have been initiated, the overall portfolio contin- ues to decline and reached USD 979 million. The decline remains especially sig- nificant at IBRD projects, which is consistent as middle-income countries have easier access to private funding.

Nevertheless, the World Bank Group remains actively engaged around the world on air transport development, by addressing policy and regulation, safety, infra- structure rehabilitation, institutional strengthening, and capacity building in client countries. Finally, environmental challenges of aviation, and how to mitigate them in emerging markets, continue to be a top priority for the WBG, which we address in cooperation with strategic partners, such as the International Civil Aviation Organization (ICAO).

We look forward to continuing addressing the challenges and opportunities of the sector in 2019 to help achieving safe, affordable, and sustainable air trans- portation for all.

Dr. Charles E. Schlumberger Lead Air Transport Specialist

The World Bank

ACI Airports Council International ADS-B/C Automatic Dependent Surveillance– Broadcast/Contract AGL Aeronautical Ground Lights ATC Air Traffic Control ATM Air Traffic Management BOT Build-Operate-Transfer BOO Build-Own-Operate BOOT Build-Own-Operate-Transfer BTO Build-Transfer-Operate CAA Civil Aviation Authority CES Charles E. Schlumberger, Lead Air Transport Specialist (WBG) CAGR Compound Annual Growth Rate DME Distance Measuring Equipment GNSS Global Navigation Satellite System EASA European Aviation Safety Agency EC European Commission ESW Economic Sector Work FAA Federal Aviation Administration (United States) FTK Freight Tone Kilometers FY 2018 Fiscal Year 2018 GDP Gross Domestic Product IATA International Air Transport Association IASA International Aviation Safety Assessment (FAA) IBRD International Bank for Reconstruction and Development (WBG) ICAO International Civil Aviation Organization (UN Agency) ICSID International Centre for Settlement of Investment Disputes IDA International Development Association (WBG) IFC International Finance Corporation (WBG) ILS Instrument Landing System IOSA IATA Operational Safety Audit LCC Low-Cost Carrier MIGA Multilateral Investment Guarantee Agency (WBG) PASO Pacific Aviation Safety Office PDO Project Development Objectives PPPA Public Private Partnership Agreement PPP Public-Private Partnership RPK Revenue Passenger Kilometer SARPS Standards and Recommended Practices SOE State Owned Enterprises TA Technical Assistance UN United Nations USD United States Dollar DOT Department of Transportation USOAP Universal Safety and Security Oversight Audits Program (ICAO) VOR VHF Omni-Directional Radio Range VSAT Very Small Aperture Terminal

WB(G) World Bank (Group)

This report benefited from the contributions of a number of staff members from across the World Bank Group.

We would like to thank Adam Diehl, Nicolas De Leon, Maria Lopez Conde, Victoria Zabolotnyi, Paula Pardo Pachon, Alexan- dre Leigh, Ramatou Magagi, Susan Vasquez, Moritz Nikolaus Nebe, Anca Cristina Dumitrescu, Aguiratou Savadogo-Tinto, Bertrand Murguet, Pierre Graftieaux, Julie Babinard, Van Anh Vu Hong, Josphat O. Sasia, Catalina Ochoa, Edward Anderson, Roza Vasileva, Ziad El Nakat, Bertram Boie, and Stephen Muzi- ra, for their input to this report.

We would also like to thank Jose Luis Irigoyen, Senior Director (retired), Guangzhe Chen, Senior Director, and Franz R. Drees- Gross, Director of the Transport Global Practice for their contin- ued guidance and support, as well as Virginia Maria Henriquez Fernandez for the research and preparation of this report.

The Mission Digital Development is now a Global Prac- The World Bank Group (WBG) is a vital tice. The Bank’s new nimble structure with source of financial and technical assis- Global Practices and Cross-Cutting Solu- tance to developing countries around the tion Areas is designed to strengthen collab- world through the provision of low-interest oration and improve knowledge sharing loans, grants, credits, guarantees and advi- across the institution. These changes are sory services. The World Bank Group aims intended to improve operational efficiency, to achieve two major goals by 2030: financial sustainability, and ultimately work toward meeting the twin goals of ending  End extreme poverty by decreasing the extreme poverty and boosting shared pros- percentage of people living on less than perity. $1.25 a day to no more than 3 percent.  Promote shared prosperity by boosting Enhancing Mobility and Connectivity the income of the bottom 40 percent of Transport is a critical driver of economic and the population in every country. social development. Transport infrastructure

connects people to jobs, education, and The World Bank Group aims to tackle health services; it enables the supply of these challenges through financing, cutting goods and services around the world; and -edge solutions, cross-sectorial knowledge, allows people to interact and generate the and partnerships with relevant public and knowledge and solutions that foster long-term private sector actors, as well as civil socie- growth. The World Bank’s transport invest- ty. The organization’s investments span ments have facilitated more efficient trade across a number of sectors including edu- and enhanced human development through cation, health, public administration, private greater mobility. sector development, agriculture, and transport and digital development. As a multi-sectorial institution, the World

Bank Group is uniquely positioned to sup- The Institutions and New Structure port large-scale transformational projects The International Development Association and deliver innovative cross-cutting solu- (IDA) is the part of the World Bank that tions for greater connectivity. The World helps the world’s poorest countries by Bank’s strategy in the transport sector, providing interest-free loans, or credits, adopted in 2008, envisioned mobility solu- and grants. The World Bank’s original lend- tions for developing countries that would ing arm is the International Bank for Re- be safer, cleaner and more affordable. construction and Development (IBRD), These three principles guide the Bank’s which lends to governments of middle- infrastructure investments and policy work. income and creditworthy low-income coun- The WBG is the largest provider of devel- tries. The International Finance Corpora- opment finance for transport globally, with tion (IFC) provides loans, equity, and advi- an active portfolio of around USD 48.2 bil- sory services to stimulate private sector lion. investment in developing countries. The Multilateral Investment Guarantee Agency Air transport plays an important role in fos- (MIGA) provides political risk insurance or tering development, particularly in facilitat- guarantees to facilitate foreign direct in- ing economic integration, generating trade, vestment in developing countries. The In- promoting tourism, and creating employ- ternational Centre for Settlement of Invest- ment opportunities. It facilitates integration ment Disputes (ICSID) is also a part of the into the global economy and provides vital WBG, but will not be covered in this report. connectivity on a national, regional, and international scale. However, in many The WBG has recently undergone major countries air transport equipment and infra- institutional change, and Transport and structure, regulatory frameworks, and safe-

ty and security oversight systems are inefficient or a as “Green Airport” in FY2018. inadequate. The Vanuatu Aviation Investment Project of USD In view of these challenges and to assist clients in 19.5 million progressed in FY 2018 by the com- establishing a safe, secure, cost efficient, accessi- mencement of physical works for Bauerfield Inter- ble and reliable air transport network, the Bank is national Airport for rehabilitation and apron mandated to undertake the following major activi- ties: pavement improvements. Furthermore, the Pacific Aviation Safety Office Reform Project, which in-  Operational work through projects and tech- cluded of an USD 2.15 million IDA Grant in FY nical assistance. 2014, and additional financing of USD 0.95 million  Economic sector work, research, and in FY 2017, benefitted of additional USD 13.55 mil- knowledge dissemination on air transport relat- ed issues. lion in FY 2018.  External relations and collaboration with part- Finally, an air transport team carried out an as- ner organizations. sessment of the Sint Maarten Re-  Internal services (such as the airline advisory construction. This came as a request for reimburs- service for WBG staff travel). able technical assistance for the implementation of

a Dutch Trust Fund for the reconstruction and re- Portfolio and Project Highlights habilitation of various infrastructure and essential In FY2018, WBG’s Air Transport Portfolio amount- services in Sint Maarten following the devastating ed to USD 979 million, a decrease of 3.88 percent hurricanes in September 2017. from Fiscal Year 2017 (FY2017), which was due to the completion and closing of larger airport infra- Major active commitments by the International Fi- structure projects. The Air Transport segment nance Corporation (IFC) include Queen Alia II in makes up around 2.03 percent of the WBG’s USD Jordan, the Zagreb Airport in Croatia, the Enfidha 48.2 billion Transport portfolio. The WBG’s Airport construction in Tunisia, airports in Nosy Be FY2018 Transport portfolio consists approximately and Antananarivo in Madagascar. In addition, the 16.13 percent of the WBG’s active portfolio of USD IFC investment portfolio also includes Lima Airport 299.1 billion (excluding MIGA). (Peru), Montego Bay Airport (Jamaica) and the Greek Regional Airports (14 in total). IFC is active The Air Transport portfolio includes 44 lending and through the provision of Advisory Services for non-lending projects or project components Kingston Airport (Jamaica), the Saudi Airports (26 through the International Bank for Reconstruction in total), Sofia Airport (Bulgaria), Podgorica and and Development (IBRD) and International Devel- Tivat (Montenegro), Beirut Airport (Lebanon) and opment Association (IDA), as well as the Interna- Clark Airport (Philippines). MIGA has been in- tional Finance Corporation (IFC)’s Investment volved in the air transport sector in the past portfolio. In addition, IFC is supporting 26 Adviso- through the issuance of guarantees for three air- ry Mandates and MIGA is providing three Guaran- port projects in Ecuador, Peru and Madagascar. tees for the Air Transport Sector. Research and External Relations Project highlights in FY 2018 include the comple- World Bank staff members continue to represent tion of the Multi-Modal Transport Project in DRC the organization externally at various air transport by supplying and installing air navigation and con- conferences and events, notably the ACI-WBG trol system at Kinshasa, five ADS-B ground sta- Aviation Symposium in London, UK. Research and tions in Kinshasa, Lubumbashi, Kisangani, Mban- knowledge dissemination also continue to consti- daka, Ilebo and training of 25 Air Traffic Control tute critical functions of the WBG’s Air Transport personnel. Another highlight was the USD 50 mil- Community of Practice (ATCOP). Looking forward, lion IBRD commitment for the Shangrao San- the practice maintains its strong commitment to qingshan Airport Project, which was completed as addressing the challenges of its client countries.

4%

92

311 576 - 979

FY18

92

17%

341 596

FY17

1029

-

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

FY18

9%

325 420 496 -

FY16

1241

FY17

5%

325 507 535

-

FY15

1367

FY16

5%

329 457 647

FY14

1433

FY15

Growth

325 447 593

10%

FY13

1365

FY14

IFC

5%

277 336 633 -

FY13

FY12

1246

IDA

FY12

AIR TRANSPORT PORTFOLIO (USD Millions) (USD PORTFOLIO AIRTRANSPORT

5%

285 334 686

-

FY11

1305

IBRD

FY11

7%

282 287 679 -

FY10

1247

FY10

7%

TEN YEAR TREND TREND YEAR TEN

407 283 650

FY09

FY09

1340

FY08

372 158 717

65%

FY08

1248

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

IFC

IDA

IBRD

Growth

Total

-

on

0.04% 0.60% 0.15%

3.88%

7.01% 3.15%

l l De-

- - -

-

Change

d n

ona

grants. grants. In

FY17

0.36% 2.18%

TOTAL

46,775

16.74%

279,488

1,018.04

FY18

0.33% 2.03%

48,249

979.20

16.13%

299,069

0.08% 9.28% 0.71%

3.43%

3.92% 1.25%

- - -

-

Change

interest loans, credits, and

-

IFC

FY17

3,088

1.08% 5.61%

55,015

596.28

19.31%

FY18

2,801

1.01% 4.90%

57,173

575.86

20.56%

s s Investment portfolio. In addition, IFC is supporting

0.04% 1.17% 0.14%

8.43%

9.65% 2.12%

- - -

-

Change

IDA

FY17

0.31% 1.83%

18,034

329.35

17.05%

105,766

FY18

0.27% 1.69%

18,416

310.92

15.88%

115,975

0.14% 0.02%

0.00% 6.08% 5.38%

0.01%

- -

Change

IBRD

FY17

92.41

0.08% 0.36%

25,653

21.61%

118,707

FY18

92.42

0.07% 0.34%

27,032

21.47%

125,921

Transport

-

Portfolio

Active Portfolio Active Portfolio ActivePortfolio

(in millions (inUSD) millions

WB Group Active WB Active Group

Portfolio

Transport Total % of

WB Group ActiveTotal

Note: Note: Excludingthe Multilateral Investment Guarantee (MIGA) Agency

% of Total Active Portfolio Active Total % of

Air Transport Active Air Projects Transport

% of Total Transport Portfolio % Total ofTransport

The WBGThe is a vital source of financial and technical assistance to developing countries through low Fiscal Year 2018, the World Bank's Air Transport Portfolio was around USD lending projects or project 980 components through the International Bank for million.Reconstruction and Development (IBRD) and Internati This included a total of 44 lending an velopment Association (IDA), as well as the International Finance Corporation (IFC) Transport for3 Air Sector. andthe Guarantees Mandates providing is MIGA 26Advisory

Active Air Transport Projects in FY18: IBRD and IDA invest in a number of air transport projects worldwide focusing on regulatory reform, capacity build- ing and infrastructure investments, as well as technical assistance and analyt- ic/advisory services.

World Bank Commitment (Lending)

Active Active Active Active Active

as of as of

Closed

Status Status

End of of End

FY2018

IDA IDA IDA IDA IDA

IBRD IBRD

Grant Grant

Credit Credit

Type

1.7

0.87 5.06 25.5

44.16 45.24

nent nent

Compo-

Aviation Aviation

8.0

M)

255

85.0 46.0 52.0

192.0

ment (USD M) (USD ment

Total Total

WBG Commit- WBG

(USD (USD

structure structure in-

-

s s four international air-

Component

sistance, sistance, and support of

-

roon

-

Description of Aviation Aviation of Description

Came well as modernization of equip- Technical Technical assistance for new Oua- Airport gadougou tech- building, capacity Institutional nical as airline national To improve safety and security at ports Improve the safety, security, and operations of Goma through infra building capacity and vestments Institutional strengthening, capacity and and building implementation support, as regulatory ment, facilities and for infrastructure basic observation and meteoro- forecasting logical Improve transport connectivity and support economic integration region the in

modal modal

Transport Transport

-

-

Project

Goma Airport Airport Goma

-

Transport

Sector Reform Sector

DRC Hydromet DRC

DRC Multi DRC

Infrastructure Proj Infrastructure

Project Name Project

DRC

BF Donsin Transport Transport Donsin BF

Development Project Development

CMR Transport Sector Sector Transport CMR

Cabo Verde Verde Cabo

IBRD AND IDA LENDING PROJECTS IDA AND IBRD

Code

P150999 P159217 P120960 P126516 P153085 P092537

Project Project

Cameroon

Country

Cabo Verde Cabo

Burkina Faso Burkina

public of Congo public Democratic Re- Democratic of Congo public Re- Democratic Re- Democratic of Congo public

Africa Africa Africa Africa Africa Africa Region

Active Active Active Active Active Active Active

as of as of

Status Status

End of of End

FY2018

IDA IDA IDA IDA IDA IDA IDA IDA

IBRD

Grant Grant Grant Grant

Credit Credit

Type

48

4.25 14.2 38.3

45.32 25.51 26.53

nent nent

Compo-

Aviation Aviation

79

9.4

M)

50.0 30.0 41.6 34.5

503.5

ment (USD M) (USD ment

Total Total

WBG Commit- WBG

(USD (USD

tions tions and man- tions and man-

- -

Component

mental mental sustainability of

-

Description of Aviation Aviation of Description

pliance; pliance; provide technical assis- Enhance Enhance aviation safety, security and improve and capacity institutional Rehabilitation of Kamembe Inter- national Airport by Lake Rwanda Southwestern Kivu in Improve airline connectivity environ and development and operation of the Airport Sanqingshan Shangrao Infrastructure investment, reform sector and training, and strength- ening airport opera capacity agement Improve operational oversight safety and Improve safety and security com- toCAA tance Infrastructure investment, reform sector and training, and strength- ening airport opera capacity agement

Investment Investment

port Project port

ment Project ment

Airport Project Airport

cilitation Project Project cilitation

tor Consolidation tor

Project Name Project

Tonga Transport Sec- Transport Tonga

Transport Sector Sup- Sector Transport

Tonga Pacific Aviation Aviation Pacific Tonga

Great Lakes Trade Trade Fa- Great Lakes Aviation Pacific Kiribati

Samoa Aviation Invest- Aviation Samoa

Shangrao Sanqingshan Sanqingshan Shangrao

Code

P096931 P124109 P151083 P123729 P128938 P143408 P128939

Project Project

China

Tonga Kenya Kenya Tonga

Kiribati

Samoa

Rwanda

Country

Africa Africa

Pacific Pacific Pacific Pacific Pacific

Region

East Asia East Asia East Asia East Asia East Asia East Asia

Active Active Active Active Active Active Active

as of as of

Status Status

End of of End

FY2018

IDA IDA IDA IDA IDA IDA IDA

IBRD IBRD

Grant Grant Grant

Credit Credit Credit

Type

0.8

25.7 0.65 5.48 5.01

67.71 11.28

nent nent

Compo-

Aviation Aviation

5.7 3.8

M)

29.5 73.6 20.9

109.5 188.0

ment (USD M) (USD ment

Total Total

WBG Commit- WBG

(USD (USD

s s technical and coor-

Component

Description of Aviation Aviation of Description

Infrastructure Infrastructure investment, training and reform sector physical works for Bauerfield Inter- national Airport runway rehabilita- tion and apron pavement improve- Strengthen the Safety Office Pacific Aviation capacity dination Infrastructure development; prove safety, security im- and opera- tional Airport Rurrenabaque reliability of Regional Platforms for Hazard and Risk Evaluation, and Applications the Making Decision Improved for The financing of aviation meteorol- ogy equipment, and hardware soft- ware to enhance aviation safety at Airport International Paro Upgradin of the forecasting monitoring system at and airports improve aviation services, to and the installation of an Aircraft Meteoro- logical Data Relay system airports. international at 10

Investment

Office Reform Office

vestment Project vestment

Project Name Project

Resilience Regional Resilience

Vanuatu Aviation In- Aviation Vanuatu

Airport Infrastructure Airport

Hydromet Serv & Dis Dis & Serv Hydromet

Pakistan Hydromet & & Hydromet Pakistan

BO National Roads & & Roads BO National Disaster 6O Regional

Vuln Reduct. Projects Reduct. Vuln

DRM Services Project Services DRM

Pacific Aviation Safety Safety Aviation Pacific

Tuvalu Pacific Aviation Aviation Pacific Tuvalu

Code

P128940 P154149 P145057 P122007 P117871 P154477 P163924

Project Project

IBRD AND IDA LENDING PROJECTS (continued) IDA AND IBRD

Region

-

Bolivia

Tuvalu

Bhutan

Vanuatu

Pakistan

Country

Pacific Islands Pacific

an an Sub

Eastern Caribbe- Eastern

an an

Asia Asia

Latin Latin Latin

South South South

Pacific Pacific Pacific

and the the and the and

America America America

Caribbe- Caribbe-

East Asia East Asia East Asia East Asia Region

Active Active Active Active

FY2018

of End of of End of

Status as as Status

AA AA AA

Type

20% 50%

tion tion

100%

Avia-

Com-

ponent ponent

sector. sector.

-

Activities

LENDINGPROJECTS

-

options options for two discrete Transport Sector

-

Description of Aviation Component/ Aviation of Description

nancial nancial risks, organizational structure, and future in- accommodate the impact of the respective PPPs. Support Support to civil aviation restructuring by conducting a detailed restructuring study to inform decisions on fi- sub aviation in vestments Enable future, trans- for a environment economy political improve the technical reforms formation of the air transport sector in West by Africa. In particular, helping enhancing to the mechanisms understanding in the of air market transport enabling forenvironment conducive oper- transport air sector, and how a ations can sector. the to investments private international attract higher levels of regional and During the earlier Bank support (P165419 Transport Sector PPP Support) for the assessment of the viabil- ity of PPP activities, the operations of the new container terminal in the Port of Walvis Bay as well as the expansion of the landside and airside facilities at the Hosea Kutako International Airport, Government was made aware of the restructuring required for the two affected SOEs, Namport Holdings and Namibia Airport Company, to Government's Ministry of Public enterprises will in fu- ture be the shareholder for both these SOEs and indi- cated that they would need assistance in structuring and implementing such reform, firstly SOEs, on but also these on two the wider the toMinistry. be transferred would group ownership of SOEs whose

Transport Sector Sector Transport Sector Transport

PPP SOE Reform SOE PPP

Capital TABudgetCapital

Project Name

Support to ZIMREF ZIMREF Supportto

Air Transport Policy Policy Air Transport

Reforms West Africa Reforms

IBRD AND IDA NON IDA AND IBRD

Code

P157125 P161128 P168420

Project Project

ca

Namibia

Zimbabwe

Country

Western Afri- Western

Re-

gion

Africa Africa Africa

Active Active Active Active

as as of

Status

End of of End

AA AA AA

Type

20% 33% 16%

tion tion

Avia-

Com-

conflict conflict economic

-

s s post

regret regret investments for financing.

-

Activities

impact, impact, no

-

Description of Aviation Component/ Aviation of Description

Undertaking Undertaking of multimodal transport sector Advisory Preparation Preparation of Vietnam Development aming at Report obtaining the analytical foundation 2019, to inform policy options and transport and trade investment costs, improve access to markets strategies to and opportunities, lower and maximize the benefits connectivity. international and mestic of do- Services to support Yemen recovery plans to assess the sector infrastructure state stock, institutional arrangements, of the transport condition as well as service delivery (roads, ports and airports). Review of the key transport infrastructure project pro- posals for Bali to assist in the prioritization of high pri- ority, high One of these high priority investments that will be likely assessed in more detail include the second airport Bali. of the in North

LENDING(continued) PROJECTS

-

Conflict Conflict

-

Note

ment Report) ment

for Growth and and Growth for

Bali Sustainable Sustainable Bali

nectivity Initiative nectivity

Shared Prosperity Prosperity Shared

Project Name Project

(Vietnam Develop- (Vietnam

Transport and Con- and Transport

Connecting Vietnam Vietnam Connecting

Multimode Transport Transport Multimode

Review and Strategy Strategy and Review

Yemen Post Yemen

Code

P164148

Project Project

P165203 P165320

Vietnam

public of public

IBRD AND IDA NON IDA AND IBRD

Indonesia

Country

Yemen, Re- Yemen,

ca

Middle Middle

Pacific Pacific

East and East and

East Asia East Asia East Asia

Region NorthAfri-

Active Active Active Active

FY2018

of End of of End of

Status as as Status

AA AA AA

Type

25% 50%

tion tion

100%

Avia-

Com-

ponent ponent

-

i-

f

,

l

a

n

o

i

t

u

t

i

t

s

n

i

e

h

t

g

n

i

v

o

r

p

m

i

d

n

Activities

a

y

c

i

l

o

p

r

o

t

c

e

s

n

Description of Aviation Component/ Aviation of Description

o

i

t

ronment ronment of green transport policy measures, including tutional set up in the civil aviation sector, (ii) govern- This project has three main activities. The first activity model developing a involves geospa- with connectivity tial representation based on the basic transport model prepared for the (P162871). EaP Using this model/tool, Transport the second activity Panel assesses the impact in terms Secretariat and of connectivity envi- (i) identification of a prioritized investments plan to re- move key bottlenecks, (ii) use of market instruments to internalize external effects of enhanced connectivi- ty, (iii) impact transport, of (iv) development of road freight hubs and safety direc- tions measures towards the physical on internet, and (v) transit green fa- cilitation measures. Finally, the third activity sess the will use of as- both traditional and innovative instru- ments to measures. finance the This activity implementation is based on the Bank's dialogue with the of government and preliminary independent assessment these of the aviation sector. As a follow up, the government has requested to continue its collaboration in the avia- tion sector in order to jointly develop a detailed plan of actions to reform the sector and assess opportunities to leverage the private sector and encourage greater private sector involvement in sec- private and the public between hancing synergies aviation, thereby en- tor. Key issues expected to be addressed are (i) insti- ance and regulation of infrastructure service ers, provid- and (iii) competitiveness and efficiency of companies. aviation state owned The World Bank will provide a comprehensive adviso- ry service to the GoU to support modernization the aviation program sector in Uzbekistan. will This develop recommendations for establishing an support avi- a the sector. of structure organizational and nancing,

n

o

i

t

a

p

i

Reforms

ship Countries ship

Tajikistan Aviation Aviation Tajikistan

Project Name Project

Greener Transport Transport Greener

Support to Uzbeki- to Support

Sector Reform and Reform Sector

Connectivity for the Connectivity

stan Aviation Sector Sector stan Aviation

Six Partner- Eastern Six

Private Sector Partic- Sector Private

Code

Project Project

P165756 P166816 P168040

Tajikistan

Country

Uzbekistan

Europe and and Europe

Central Asia Central

Europe Europe Europe

tral Asia tral Asia tral Asia

and Cen- and Cen- and Cen- and Region

as of as of

FY2019 FY2019 FY2019 FY2019

Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline

Status

End of End

FY2018

IDA IDA IDA IDA IDA

IDA

Type

2

84

4.5 3.0

nent nent

Compo-

Aviation Aviation

2.0

M)

26.0

550.0 54.46

ment (USD M) (USD ment

Total Total

WBG Commit- WBG

(USD (USD

apai apai run-

s s level of connectivity, a re-

growth growth opportunities and ultimately

terminal terminal interface and an underes-

-

’ ’

component component will include design and su-

-

s s (International Civil Aviation Organization)

apai, apai, including reconstruction of pavement

Aviation Aviation Safety and Service Provision: Address-

Description of Aviation Component Aviation of Description

Cover Cover cost overruns due to a variation required Aviation sector infrastructure rehabilitation. priority regional airports out of the eleven air- ing aviation safety and service provision help would the CAA (Civil Aviation ICAO Agency) to reach recommended standards and safety international practices, as well as to blacklist of overcome Kyrgyz carriers the by the current EU, enhance local carriers increase the country sult that would benefit both local residents visitors. international and for the apron timation of the funding required for equipment. The project closing date is proposed to tended by six be months to ex- December 31, 2019, to cover the additional period necessary plete the to ongoing activities (the com- furniture and in- stallation of airfield ground lighting and naviga- tional aid packages, as well as the overall works completion). Which will include: Urgent resurfacing to the run- way and Ha apron at as drainage soft subsoil spots, at layers localized Salote Pilolevu needed, and Airport, full line marking. this sub Activities under pervision of the resurfacing of the Ha apron. and way Finance the upgrading and rehabilitation of three ports.

-

ject ject

ridors ridors

II II (AFII)

Name

Phase 3 Phase

Resilient Resilient

Project Project

Program Program

Central Asia Asia Central

Samoa Avia- Samoa Addi- Project

Tanzania De- Tanzania

tional Finance Finance tional

Transport Pro- Transport Pro- Transport

Tonga Climate Climate Tonga

Regional Links Links Regional

tion Investment Investment tion

velopment Cor- velopment

IBRD AND IDA PIPELINE PROJECTS IDA AND IBRD

Code

P165660 P159220 P169279 P161539

Project Project

public

Tonga

Samoa

Tanzania

Country

Kyrgyz Re- Kyrgyz

Asia

Africa

Pacific Pacific

Central Central

East Asia East Asia East Asia Region

as of as of

FY2019 FY2019 FY2019 FY2019 FY2019

Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline Pipeline

Status

End of End

FY2018

IDA IDA IDA IDA IDA

Loan Loan

IBRD IBRD

Type

5

21 34

200 100

nent nent

Compo-

Aviation Aviation

5.0

M)

21.0 51.0

200.0 100.0

ment (USD M) (USD ment

WBG Commit- WBG Total

(USD (USD

term term

-

based based contract to en-

-

Description of Aviation Component Aviation of Description

would would finance a performance Pacific Pacific Aviation Infrastructure Maintenance Support and technical assistance for regulatory reform. It gage the private maintenance to aviation infrastructure investments, sector in improve providing the reliability of long airport infrastructure reduce associated downtime with unplanned outag- and es. It will cover 12 airports within Kiribati, Islands. Solomon and Vanuatu, Tuvalu, Tonga, Samoa, Improve operational safety infrastructure associated and transport and oversight of air The Project will finance three main components: (i) civil aviation reforms and strategy; (ii) government contribution to the terminal expansion as (CAPEX, needed guarantees); and (iii) airport. the to infrastructure improving and roads access Improvement of strengthening of air aviation transport institutions. This will safety, be achieved through the installation security of an integrat- and ed security systems at major airports; automation of regulatory functions at KCAA; installation of air navigation system; construction of an air accident investigation workshop at JKIA and strengthening the capacity of KCAA, KAA and the State Depart- Transport. of ment Cover cost overruns from the project to ensure the completion of activities and improvement of opera- tional safety and in Vanuatu. infrastructure associated and transport oversight of international air

ject

sion

Project Project

Name

Countries

Project Project

Solomon Is- Solomon

and Aviation Aviation and

Systems Im- Systems

lands Roads Roads lands

Civil Aviation Aviation Civil and Reforms

nancing II for for II nancing

Additional Fi- Additional

Pacific Island Island Pacific

Aviation in thein Aviation Vanuatu Avia-

Airport Expan- Airport

Kenya Aviation Aviation Kenya

tion Investment tion Investment

provement Pro-

Sustainability ofSustainability

ject ject

Pro-

Code

P166574 P166622 P167765 P167734 P169297

try

non

Solo-

lands

Leba-

Kenya

Pacific Pacific

Islands

mon Is- mon

Coun-

Vanuatu

ca

Africa

Pacific Pacific Middle Pacific

East and East and

East Asia East Asia East Asia East Asia

Region NorthAfri-

Burkina Faso in the financing of the construction of the planned Donsin Transport Infrastructure Project new airport.

(P120960) Pertaining to the air transport activities, as of the end of FY18, the project has financed the TA to support The Bank approved a USD85 million IDA credit in the GoBF in putting in place a PPP Framework as FY13 to the Government of Burkina Faso (GoBF), well as selecting the private partner for the future air- with the objective to improve road access to the port operation. The project has met the intermediate Donsin area to facilitate its development as a results indicator “Validation of the negotiation file for transport hub for greater Ouagadougou. the selection of a private partner to exploit the current and future Ouagadougou international airport”. The It is worthy of noting that Burkina Faso has two inter- selection of the private operator had not been con- national airports (Ouagadougou and Bobo- Dioulas- cluded yet, but thanks to a project extension (from 30 so) and a network of small domestic airfields spread June 2018 to 30 April 2019), the GoBF is on its way throughout the country. It has one international airline of closing negotiations with a private partner, under (Air Burkina) which was partly privatized in 2001 and the TA financed by the Bank. uses Ouagadougou as its home base and hub. The

International Finance Corporation (IFC) was involved in the privatization of Air Burkina. The international Contact persons are Aguiratou Savadogo-Tinto at airport at Ouagadougou handles about 98 percent of [email protected] and Anca Cristina all scheduled commercial air traffic in Burkina Faso, Dumitrescu at [email protected] and ten airlines currently provide scheduled services at the airport with Air Burkina and Air France han- dling about 60 percent of all scheduled passenger CABO VERDE traffic. Cabo Verde Transport Sector Reform Project (P126516) The Project is supporting the development of the Dosin area by, among other: (a) funding the upgrad- The Bank approved a USD19 million IDA Credit for ing and construction of key road transport infrastruc- the Cabo Verde Transport Sector Reform Project in ture required to connect Ouagadougou to Donsin and FY13 as well as an IDA Credit Additional Financing to provide mobility within the Donsin area; and (b) (AF) for USD27 million in FY17. The Project’s Devel- funding Technical Assistance (TA) to assist the GoBF opment Objective (PDO) is to improve efficiency and in the development and putting in place a PPP frame- management of the national road assets and to lay work, including the selection of a private sector oper- the groundwork for transport sector State Owned En- ator to operate the existing and future Ouagadougou- terprise (SOE) reform. Under its fourth component Donsin international airports. IDA will not participate (Inter-island Transport Strategy), the project is sup- porting the improvement of the inter-island sea and is a key output of the integrated intermodal transport air transport services quality as well as the manage- strategy (IITS) currently being prepared under the ment of ports and airports, and the efficiency of World Bank-financed Cameroon Multimodal transport SOEs. Among the concerned transport sec- Transport Project (P143801). The TPIP is expected tor SOEs is TACV, the national airline company, to help the Government of Cameroon move from its which is structurally in deficit. Making the right deci- current ad-hoc approach to transport investment fi- sion on TACV requires strong political will and lead- nancing by providing a holistic platform on which to ership given the sensitivity of the company in Cabo base investment and financing decisions. Verde. The Project’s third component, Air Transport Safety The AF is financing the costs associated with the and Security Improvement, focuses primarily on facil- scaling up of the original Project by supporting the itating International Civil Aviation Organization's implementation of additional activities, which are (ICAO) effective implementation rating of aligned with the original PDO, including the extension and Ground Assistance at project airports (Yaoundé, of the project closing date from 30 June 2019 to 31 Douala, Garoua and Maroua), as well as the ICAO's December 2020. The AF seeks to enhance the rating of Cameroon's security oversight system. It achievements of the parent Project by (a) undertak- has the following subcomponents: (a) Strengthening ing additional road rehabilitation and Performance- of airport safety and security infrastructure; (b) Based Maintenance Contracts; (b) scaling up the pro- Strengthening air transport safety and security over- vision for emergency road repairs; and (c) continuing sight; and (c) Strengthening of planning capacity in the reform of SOEs in the transport sector. air transport. As of the end of FY18, most planned activities for this component have been processed as In 2017, a decree for the privatization law of the na- scheduled and are under implementation in accord- tional airline company, TACV, renamed as Cabo ance with an agreed action plan. Verde Airlines was adopted and published. As of the end of FY18, the project had financed technical as- Contact persons are Mustapha Benmaamar at sistance and two activities (an asset valuation study [email protected] and Marc Navelet at and debt restructuring) for the privatization of the air- [email protected] line. The Government has set itself the objective of concluding negotiations with Icelandair by the end of 2018, for the sale of 51 percent of the airline's DEMOCRATIC REPUBLIC OF CONGO shares. In addition, 10 percent of the airline shares Multi-Modal Transport Project will be sold to the former TACV employees, and the rest to private investors (there were 15 expressions (P092537) of interest, mainly from the tourism sector). It is also worthy of highlighting that the domestic flight opera- The Bank approved a USD 255 million IDA grant for tions between the islands have been put into a joint- the Multi-Modal Transport Project in the Democratic venture with the Canary Island operator BINTER. Republic of Congo (DRC) in 2010 as well as a USD 180 million additional financing IDA grant in 2013. Contact persons are Vincent Vesin at The Project closed in June 2018 and its main objec- [email protected] and Shruti Vijayakumar at tives were to (i) improve transport connectivity in the [email protected] DRC, (ii) to restore Société Nationale des Chemins de Fer du Congo (National Railway Company of DRC, SNCC) financial and operational viability, and

(iii) to strengthen transport state-owned enterprises CAMEROON (SOEs) operational performance. CMR Transport Sector Development Project Under the sub-component dedicated to air transport, (P150999) the project supported the National Airways Manage- ment Agency (Regie des Voies Aeriennes -RVA- In FY17, The Board of the World Bank approved a 2010-2018) as well as the Civil Aviation Authority USD 192 million IBRD credit for the Cameroon (Autorite de l’Aviation Civile -AAC), achieving the fol- Transport Sector Development Project, whose devel- lowing: (i) supply and installation of air navigation and opment objectives are to: (a) strengthen transport control system (Topsky) at Kinshasa, five Automated planning; (b) improve transport efficiency and safety Dependent Surveillance-Broadcast (ADS-B) in Kin- on the Babadjou-Bamenda section of the Yaounde - shasa, Lubumbashi, Kisangani, Mbandaka, Ilebo and Bamenda transport corridor; and (c) enhance safety training of 25 ATC personnel; (ii) Supply and installa- and security at selected airports. More specifically, it tion of Instrument Landing System/ Distance Measur- will support the design and implementation of the ing Equipment (ILS/DME) at Kinshasa/ N’Djili airport; Transport Priority Investment Program (TPIP), which (iii) the carrying out of a certification campaign for five

air companies, out of which, three obtained the certi- complement a Japan-GFDRR grant supporting the fication (FlyCAA, Air Tropique et Kin Avia); and (iv) monitoring of volcano risks and strengthening prepar- the provision of technical assistance/ training pro- edness of the airport and surrounding communities. gram by ICAO for the ACC. Several new inspectors The significance of the project is evident – DRC’s have been trained in airworthiness, operations, pilot landmass is almost as large as the whole of Western licensing, and other domains of the AAC. Europe, therefore transport remains key to increasing agriculture, improving trade, supporting mining In addition, activities financed under the project con- growth, overcoming the economic and social barriers tributed to the reduction of the average number air- that isolate communities, and providing security craft proximity traffic incidents, from twelve in 2009 to throughout the country. two incidents in 2018, which were reported yearly. This result can be attributed to improved surveillance By the end of FY18, the biding process for the works of airspace using ADS-B and the TopSky system as covering the runway and drainage works was in offer well as precise GPS-derived data for controllers. Fi- evaluation stage for a new contractor, as the previ- nally, the Project achieved a significant reduction of ous contractor seemed to have been under financial average number of communication losses, from 78 to difficulties and the works were progressing very slow- twelve per year. ly. Offers are equally being reviewed for the control tower and the power plant. For the refurbishing of the Contact person is Tojoarofenitra Ramanankirahina at airport terminal building, as well as for cargo infra- [email protected] structure, the Bank has recommended to assess the possibility of small Public Private Partnerships (PPP). A small advisory or study could be carried out. The certification of the airport according to ICAO stand- DEMOCRATIC REPUBLIC OF CONGO ards remains an important objective and indicator of Goma Airport Safety Improvement Project the project. Representatives of ICAO have affirmed (P153085) that the certification could be done within one year, once commenced and carried-out according to a de-

fined program. For this purpose, a designated staff of In FY15, the World Bank’s Board approved a USD 52 AAC/RVA should be nominated to work closely with million IDA grant to help improve the safety, security, ICAO. and operations of Goma International Airport, the main international gateway of Eastern Democratic Republic of Congo (DRC) and repair the airport infra- Contact persons are Tojoarofenitra Ramanankirahina structure. The airport is a vital link to connecting the at [email protected] and Bertram area to the rest of the country and supporting ongo- Boie at [email protected] ing peace consolidation efforts. In addition to dec- ades of conflict, the most significant damage to the airport’s sole runway and taxiway resulted from the DEMOCRATIC REPUBLIC OF CONGO 2002 Mount Nyiragongo volcano eruption. Strengthening Hydro-Meteorological and The lava flow from the volcano buried more than one Climate Services third of the 3,000-meter runway and isolated the ter- (P159217) minal and apron, constraining humanitarian aid flows, UN operations, and passenger and car- go transport. In FY17, The Bank approved a USD 8 million IBRD There have been seven recorded air crashes since 2002 at the airport with dozens of fatalities, many of loan for a Global Environment Project for the Demo- them attributed to the condition of the airport. cratic Republic of Congo (DRC), with the objective to improve the quality and strengthen the country’s Hy- The project seeks to restore the airport’s runway orig- inal length, rehabilitate the apron, existing passenger dro-Meteorological (Hydromet) and Climate Services. and cargo terminals, and electrical system, as well as Understanding hydromet and climate risks would supply a new low-cost control tower and navigational help assess social and economic impacts and devel- equipment to upgrade air navigation. The project also op adequate policy responses to support the coun- includes the construction of the airport’s security try’s sustained development. A number of economic fence and support airport rescue and firefighting ser- sectors in the DRC could specifically benefit from vices. more accurate, relevant and timely hydromet infor- mation, warning and services. Such are the cases of The project is supporting the valorization of the large airfreight and aviation. Meteorological assistance to quantity of lava rock removed from the airport aviation is made in relation with the Airways Authority through labor intensive activities targeted to commu- (RVA). RVA is a private company owned by the State nities living close to the airport. The project will also that has to comply with the Civil Aviation Organiza-

tion (ICAO) regulations and benefits from air traffic Northern Corridor and the Tanzania-Kenya-South levies collected from airlines for airport and en route Sudan road corridor; (b) enhance aviation safety and services. The meteorological infrastructures of the security to meet international standards; (c) improve international airport of N’djili Kinshasa as well as of the institutional arrangements and capacity in the the other airports in the country belong to National transport sector; (d) restore the capacity of the inter- Agency for Meteorology and Remote Sensing national passenger terminal destroyed in a fire at Jo- (MettelSat). At present, the meteorological services mo Kenyatta International Airport (JKIA); and (e) to aviation are provided by RVA in N’djili, which is the strengthen the capacity of Kenya Airports Authority largest airport in DRC, and in three other internation- (KAA) in disaster preparedness and responsiveness al airports. RVA has hired about 50 meteorologists at Kenyan airports. based in Kinshasa, and is in the process of training and recruiting 20 new meteorologists. MettelSat The aviation component of the project entails provid- owns and operates presently 22 observing stations ing support to the Kenya Civil Aviation Authority on airports, but most of the data are not available and (KCAA) in regulatory capacity building and through no forecasts for aviation are issued. specific investments in navigation aids and training equipment. In addition, support to KAA will include Under Component A (Institutional and regulatory provision of a new baggage-handling system at JKIA, strengthening, capacity building and implementation and capacity building and training of manpower in support), the project will is investing in the human safety, security, and airports management. and institutional resources that can implement and sustain hydromet observation and forecasting, includ- Following the fire at the JKIA in August 2013 that de- ing the carrying out of an Institutional diagnosis with stroyed the only international arrival building, the a comparative review of the roles and mandates of Bank provided an AF of USD 203.5 million to help the different government agencies involved, such as finance activities to restore the capacity of the inter- RVA and MettelSat, to identify the main actions re- national passenger terminal destroyed in a fire at quired to increase cooperation and avoid overlap be- JKIA, strengthen KAA in disaster preparedness and tween agencies, ensuring an efficient development of responsiveness at Kenyan airports, and fill any unan- hydrometeorology in DRC. Under Component B ticipated financing gaps. Most of the emergency ac- (Modernization of equipment, facilities and infrastruc- tivities at JKIA following the fire incident have either ture for basic observation and forecasting), the pro- been completed or are nearing completion. ject is supporting the reinforcement and rebuilding of the basic networks for observation and forecasting, As of the end of FY18, project implementation and as well as in infrastructure needed for provision of achievement of development objectives is on track, services by MettelSat. with the following results:

By the end of FY18, the project had become effec- • Aviation safety and security now meets interna- tive, although it was one year after its approval by the tional standards enhanced: Kenya and JKIA now World Bank Board. While the project is still in too ear- meet aviation security and service level standards ly a stage for meaningful progresses, most project set by the International Civil Aviation Organization activities have been initiated according to the updat- (ICAO), Federal Transportation Administration, ed timeline and procurement plan, and the Project and Transportation Security Administration of the Implementation Unit is functional and operative USA, allowing flights originating from JKIA to trav- at MettelSat. el to and from the USA. Kenya Airways com- menced direct flights to New York, USA on Octo- ber 28, 2018. Contact persons are Christian Vang Eghoff at • JKIA was selected as the fifth best airport in Afri- [email protected] and Sylvie Debomy at ca in 2017, and Most Improved Airport in Africa in [email protected] 2016 (Airports Council International).

• The East Africa School of Aviation has been ac- KENYA credited as one of the few centers of excellence in the world by ICAO. TRANSPORT SECTOR SUPPORT PROJECT • Purchase and installation of air navigation equip- (P124109) ment has contributed to enhancing safety in Ken- ya’s airspace; and A USD 300 million IDA Credit for the Transport Sec- • Kenya Civil Aviation Authority restructured tor Support Project in Kenya was approved in 2011 through internal separation of the regulatory re- as well as an Additional Financing (AF) of USD 203.5 sponsibilities from service provision functions un- million in FY 2014. The project’s objectives are to: (a) dertaken; increase the efficiency of road transport along the

• Conflict of interest scenario in the aviation sub- RWANDA sector where the regulator, KCAA was housed by GREAT LAKES TRADE FACILITATION PRO- the operator, KAA resolved. A new office block for KCAA was financed under the project as part of JECT (P151083) financing reforms in the aviation sub-sector. • The capacity of the international passenger termi- In FY 2016, A USD 79 million IDA Credit for the Rwan- nal destroyed in a fire at JKIA restored. Interim and da Great Lakes Trade Facilitation Project. The Project permanent international passenger arrivals facilities Development Objective (PDO) of this project is to facili- were constructed at JKIA leading to rapid and full tate cross-border trade by increasing the capacity for restoration of operations at the airport. commerce and reducing the costs faced by traders, • Strengthened the capacity of KAA in disaster pre- especially small-scale and women traders, at targeted paredness and responsiveness at Kenyan airports: locations in the borderlands. Emergency response has been strengthened at major airports with the development of disaster re- The Great Lakes Trade Facilitation Project includes sponse systems and purchase of firefighting equip- improvements in border crossing management for ment. Rwanda, Congo DRC, Uganda, and COMESA. As part of the package, Kamembe International Airport by Lake Nevertheless, in FY18 WB management to cancel the Kivu in Southwestern Rwanda is being rehabilitated project component to rebuild the international terminal, with an investment of USD 14.2 million. The airport is given that it was jointly decided by the client and Bank seen as a strategic gateway for trade, since neighbor- to pursue the carrying out of further analytical work to ing Bukavu, only 7 km away from the airport and examine the possibility of the private sector financing across the border with Congo DRC, has a population the facility. of over 1 million and no convenient airport access. The airport is seen as an important gateway for trade in the Contact persons are Josphat O. Sasia at region, as the main passengers on flights from the air- [email protected] and Susan Apudo Owuor at port are Congolese heading, via Kigali, to major trade [email protected] centers such as Dubai.

Prior to the beginning of rehabilitation works, the air- port, Rwanda’s first, has not seen any major renova-

tions or resurfacing in over 60 years. At the project’s Due to the terrain and advancement in Satellite-based inception, proposed works included VOR/DNE sys- technology, the VOR/DME installation has been tems with an ILS, GNSS approaches, PAPI and ap- dropped. The cargo warehouse turned out to be re- proach lighting systems, fencing and other security dundant and has been dropped as well. This has gen- installations, automatic weather observation system, erated savings that may be re-applied to other infra- and a cargo warehouse. The resurfacing of the run- structure at the airport, such as the relocation of park- way, which would have added a significant cost com- ing facilities away from the terminal. As of the end of ponent to the project, was in the end financed directly FY 2018, the project is somewhat, but not significantly, by the Government of Rwanda and had basically been behind in disbursements. Delays were attributed to completed by the beginning of the project. various procurement issues, however, because of the strong management in place, the project is expected The airport has significant limitations due to its terrain. to be completed successfully. A setback occurred Sitting on a hilltop, an additional hill at the end of run- when earthquakes caused damage to the terminal way 20 prevents this runway’s use for takeoff, necessi- building in 2015 and 2016. tating takeoff from runway 02 only, which usually fea- tures a strong tailwind. At 1,500 meters the runway is Contact persons are Paul Brenton at short. Take off from runway 20 is further limited by the [email protected] and Charles Kunaka at fact that avoidance of the hill would require an immedi- [email protected] ate turn to the right entering Congo DRC airspace. Night operations will much ease the tailwind issue on runway 02 and will add further usability to the airport. The extensive lighting system (approach lighting, run- way lighting, apron illumination) will have works com- mence in 2019. Fencing has already been completed, slightly below initial cost estimates.

CHINA The World Bank and Shangrao PMO held a workshop SHANGRAO SANQINGSHAN AIRPORT on Green Airport Design and Development in Beijing on 23 January 2018. The workshop gathered about 80 PROJECT (P123729) representatives of the Chinese Civil Aviation Authority (CAAC), Civil Aviation Association, Asian Infrastructure A USD 50 million IBRD commitment for the Shangrao Investment Bank, Shangrao Sanqingshan Airport, sev- Sanqingshan Airport Project was approved in May eral Chinese airports (Beijing Capital, Jiangxi, Sichuan, 2013. The project’s development objective (PDO) is to Chengdu Tianfu, Jining Qufu, Haikou International, improve airline connectivity in the northeastern Jiangxi Yunnan, and Urumqi International), various airport province, as well as demonstrate the environmental construction firms and entities, various engineering sustainability of the development and operation of the firms, specialized environmental consulting firms, and Shangrao Sanqingshan Airport. The PDO is to be representatives of the press. During the workshop, the achieved through i) reducing the travel time between knowledge and experiences from the Shangrao airport Shangrao and major destinations; and ii) recognizing on the green airport were well presented and ex- Shangrao Airport as “Green Airport” through estab- changed to other airports and interested parties. lished process. The Shangrao airport was designed and constructed The first component of the project covers the airport as a green airport, incorporating important energy effi- infrastructure development and includes the construc- ciency measures, such as use of natural light, LED tion and installation of the following: (a) airfield, run- lights, heating and cooling production by a geothermal way, taxiway; (b) terminal building; (c) air traffic con- heat pump system, reuse of rainwater, etc. To achieve trol; (d) freight facility; (e) supporting infrastructure fa- the PDO of the project, the PMO is working with the cility, including fuel storage farm, water supply, water relevant rating authorities in China to obtain the Green supply, power supply, fire stations, heating, storm/ Building certificate for the terminal building before pro- water management, parking, fence; (f) environmental ject closing. In addition, the Bank team has discussed management plan; (g) land acquisition and rehabilita- in detail with the PMO and the operator on the Airport tion; (h) auxiliary facility; (i) service vehicles; and (j) Council International (ACI) Airport Carbon Accredita- storm water reuse system and ground aircraft auxiliary tion (ACA) program and encouraged the operator to power unit. enroll in the program. A presentation of ACA has been The second project component finances consultancy delivered to discuss the required first steps towards services, studies and training, including advisory ser- the enrollment. In addition, the Bank team has dis- vices to support the Project Management Office (PMO) cussed with the operator airport operation issues that and Shangrao Sanqingshan Airport Company Limited need to be addressed, including wastewater treatment (SSAC) on project coordination and monitoring activi- and wildlife management, and has provided recom- ties. Other activities will include consultancy services mendations accordingly. to develop airport operation model for SSAC and com- pliance with regulations and international practices. Contact person is Weimin Zhou at [email protected] This project is on track to achieve its PDO. The construction works of the airport have been completed, and the airport operator was selected. The KIRIBATI airport started its operation in May 2017. Currently there are three airlines (Sichuan Airline, China United PACIFIC AVIATION INVESTMENT PROJECT Airline, and Shandong Airline) operating in Shangrao (P128938) airport, which connect Shangrao with some major cit- ies in China, including Beijing, Shenzhen, Foshan, Chengdu, and Qingdao. According to statistics from In FY 2012, a USD 22.91 million IDA Grant was ap- the airport operator, in 2017, the Shangrao airport had proved by the Bank Board for Kiribati’s Aviation Invest- welcomed 1634 aircraft taking-off/landing, about ment Project. An Additional Grant Financing (AF) of 146,000 passengers and 5.38 tons of cargo. The air- USD 7.1 million was approved in FY 2017 to cover port has reduced the travel time between Shangrao funding shortfalls. The project development objective and major cities by 57%, and it is expected to handle is to improve operational safety and oversight of in- about 750,000 passengers by 2025. All remaining ac- ternational air transport and associated infrastruc- tivities will be completed before the project closing ture. The Project is entering its sixth year of imple- date of 31 December 2018, and the project will be mentation. closed on time. The Results Framework is adequate to Under its first component, the project is supporting capture the project’s contribution. With the opening of International Airport Infrastructure Investments nota- the airport, the majority of results indicators bly: (i) replacement of the terminal at Cassidy Air- are already attained. But the PDO indicator of 'green port and improvements to the terminal at Bonriki Air- airport' recognition has not been achieved yet. port; (ii) construction of fire tender vehicle shelter

and maintenance equipment building at Cassidy achieved with regards to the development of air ser- Airport; (iii) installation of new navigation aids, au- vice agreements, the CXI-Nadi subsidy and upper air tomatic weather monitoring, safety and security space issues and capacity building activities with the equipment at the Cassidy and Bonriki airports; (iv) Civil Aviation Authority. The airport management con- upgrading of the Cassidy airport runway lights; (v) tract is progressing satisfactorily with all manuals provision of air traffic control and fire safety equip- completed and several capacity building activities ment; (vi) enhancing the power supply for Cassidy and trainings conducted recently. The airport man- Airport and the surrounding village; (vii) provision agement consultants have also engaged a legal advi- of the Pacific Aviation Safety Network at Cassidy and sor to support the Government of Kiribati (GoK) with Bonriki airports; (viii) construction of a security fence the establishment of an airport authority that would for the Bonriki airport; (ix) completion of the seawall support a more appropriate budgeting and decision- being constructed at the Bonriki airport. The second making process. The extension will make it possible and third components are supporting Aviation Sector to fund the entirety of this contract scheduled to close Reform and Training as well as Strengthening Airport in March 2019. The GoK is now receiving regular rev- Operations and Management Capacity. enue from the Safety and Security Levy collected by airlines such as Fiji Airways as part of the ticket price. The project is making adequate progress in several areas. The terminal works and the associated super- Despite the above-mentioned progress, the project is vision services are currently underway both at Bonriki facing a number of challenges. Whilst some progress and Christmas Island. It is expected that works on has been achieved with regards to the installation of the fence will be completed by end of September the navigation aids in TRW, progress in CXI is very 2018. The amendment for the construction of the slow with works still not having commenced. The pro- seawall has been agreed upon and the correspond- ject is currently scheduled to close on 31 December ing contract amendment needed for its supervision is 2018. However, due to several procurement related being finalized. The contract of the aviation advisor delays and logistical challenges affecting civil works has been concluded with considerable progress (e.g. shipping delays), the ongoing airport manage-

ment contract, the seawall construction and potential- ject outputs and that monitored the implementation of ly the airport terminal works and navigation aids com- regulations, the recruitment of staff, the installation of missioning will not be completed by the current clos- goods and equipment directly improving safety and ing date. The project is currently processing an ex- security at airports and ports, the development of in- tension to fund the remaining invoices after the cur- vestment including maintenance plans. rent closing date. It is estimated at this stage that all By the end of FY 2018, the project continued to make activities will be completed before June 2019. good progress towards achieving the PDO. The pro- ject had progressed very well, on both institutional Contact person is Pierre Graftieaux at and investment fronts, supporting the road, air and [email protected] maritime subsectors. Key air transport and road transport legislation supporting the change manage- ment process were ready to be submitted to Cabinet, TONGA including the New Traffic Act (2018), the Roads Bill TRANSPORT SECTOR CONSOLIDATION (2018), Civil aviation Act (2014), and the Airport Au- PROJECT (P096931) thority Bill (2018). In addition, the planned ICAO certi- fication for Fua'amotu airport was attained. Moreo- ver, two unexpected outcomes related to the air sub- A USD 5.44 million IDA Grant for the Transport Sec- sector are worth highlighting: (i) the operation has tor Support Project in Tonga was approved in FY had an impact on tourism, or at least the number of 2009 as well as an Additional Financing (AF) of USD passengers increased after the upgrades done at the 4 million in FY 2016. By the end of FY 2018, the pro- airport; (ii) the operation also contributed to the iden- ject was nearing its closing date of 31 December tification of an entity with the adequate technical, 2018. The project’s development objective (PDO) is management and fiduciary capacity to implement a to assist the Recipient to develop its transport sector USD 240 million IDA regional aviation project -- to have: (i) stronger policy, planning and regulatory Tonga Airport Limited (TAL), created in 2007 and institutions and framework; (ii) improved safety and whose core functions & responsibilities have been security facilities and compliance with international developed under the project. Lastly, the project sup- safety and security standards; and (iii) greater do- ported some major air transportation infrastructure mestic capacity for road rehabilitation and mainte- and equipment upgrades without which some airlines nance. would have interrupted their services in Tonga in The Project was designed around four components: 2012. (A) establishment of a sustainable transport sector policy and institutional and operational framework, Contact persons are Julie Babinard at (B) compliance with mandatory security and safety [email protected] and Pierre Graftieaux at standards, (C) support to the transition towards sus- [email protected] tainability in the transport sector, and (D) project im- plementation support. Each component has financed TONGA policy and TA activities and/or investments to im- AVIATION INVESTMENT PROJECT prove safety and security through works, goods and/ or equipment. (P128939)

The Project is advancing ongoing transport sector reforms and consolidating past initiatives so that the Subsequent to an original IDA Grant contribution of sector can better respond to national needs in a safe, USD 27.21 million in 2011, the World Bank approved secure and sustainable manner. Four outcome indi- a USD 7.3 million Additional Finance in 2016. The cators were developed to monitor achievement of the project is in the seventh year of implementation PDO: (i) Ministry of Transport (MOT) functioning as a schedule, with a revised completion date of 31 De- fully-integrated ministry responsible for compliance cember 2019. and safety oversight of land, sea and transport in The project is progressing and is on track to achieve Tonga in all necessary legal approvals accompany- its current development objectives. Installation of key ing its new responsibilities, (ii) definition of the new investments such as the VSAT (satellite communica- roles of MOT and relevant ministries in respect of tion ground equipment that allows users to communi- land transport, (iii) certification of the Fua’amotu inter- cate directly via satellite), implementation of ADS-B national airport in accordance with TCAR Parts 139 imaging, terminal building improvements and the new and 157 (as at 22 April 2008), and (iv) domestic ship- control tower at TBU are underway or nearing com- ping services operated in line with an approved plan pletion. The project’s closing date has been extended recommended by a study of options to service outer by twelve months to 31 December 2019 to ensure islands. The Project has also relied on a list of inter- completion of the key activities remaining under the mediate outcomes that can be assimilated to the Pro- project: (i) the Air Traffic Control Tower at Fua’amotu

International Airport (TBU); (ii) the TBU Terminal pavement defects on Funafuti runway that have re- Building renovations; (iii) Terminal expansion in Vav- sulted from water pressure under the recently paved a’u; and (iv) construction of cargo shed in TBU. The runway. This will include pilot testing of a number of Airport Authority Bill has been submitted by Ministry alternative remedial options throughout the 2017-18 of Infrastructure to Cabinet for endorsement. Efforts cyclone season which will inform the final design; (ii) must continue to meet International Civil Aviation Or- emergency interim maintenance and monitoring re- ganization (ICAO)’s requirements to improve the Ef- gime for pavement defects; (iii) the supervision cost fective Implementation (EI) score from the ICAO Uni- for the runway civil works and construction of the versal Safety Oversight Audit Programme (USOAP). flight services center and fire tender shelter— including through the defect liability period; (iv) ongo- Contact persons are Julie Babinard at ing monitoring of the impact of the civil works on the [email protected] and Pierre Graftieaux at sub-runway water pressures; and, (v) a budget short- [email protected]. fall under the parent project due to foreign exchange fluctuations and higher than anticipated supervision TUVALU costs. The project closing date has been extended to 30 June 2020. AVIATION INVESTMENT PROJECT (P128940) The project is progressing and is on track to achieve its PDO. The road civil works are completed, the fuel With IDA Grant contributions of USD 11.85 million in truck and fire tender have been delivered and are in FY 2012, USD 6.06 million in FY 2014 and USD 2.89 use, and the new airport terminal opened in February million in FY 2016, the project is in the seventh year 2018. In addition, works on the construction of the of implementation. The project development objective flight services center/fire tender shelter have been is to improve the safety and security of air transport completed. The Government of Tuvalu is now receiv- and associated infrastructure. A third additional fi- ing regular revenue from the Safety and Security nancing (AF) of USD 8.75 million was approved in FY Levy as well as the higher departure tax, both collect- 2018 to finance: (i) the design and construction of ed by Fiji Airways as part of the ticket price. Further- runway repairs and resiliency measures addressing more, the most recent AF has supported Tuvalu's

participation in ICAO, as well as activities related to craft avionics has been completed and are operation- Gender-based Violence (GBV) and Violence Against al meeting the outcome of upgraded communications Children (VAC) training, prevention and support. and navigation equipment. In addition, the Aviation Sector Strategy and the SAA Business Strategy and Contact persons are Chanin Manopiniwes at Master Plan have both now been completed. The [email protected] and Christopher Bennett at progress towards the achievement of safety meas- [email protected] ured by USOAP ICAO global average is on-track, based on the project-financed activities, but needs a SAMOA re-evaluation either by SAA or by an external expert. AVIATION INVESTMENT PROJECT To fully achieve the PDO, the Government has re- (P143408) quested an additional finance of USD 2.0 million from IDA funding and a six-month extension of the project A USD 25 million IDA Grant for the Transport Sector closing date. The Government is expected to submit Support Project in Tonga was approved in FY 2014 the relevant request to the Bank by the end of Octo- as well as an Additional Financing (AF) of USD 16.62 ber 2018. million in FY 2016. The project development objec- tive (PDO) is to improve operational safety and over- Contact persons are Noroarisoa Rabefaniraka at sight of international air transport and associated in- [email protected] and Rodrigo Archondo frastructure. The purpose of the latest AF was to -Callao at [email protected] scale up apron pavement expansions and fuel hy- drant extensions necessary to integrate a new termi- nal building which is currently under construction. VANUATU

The project is on track to meet the PDO. Faleolo In- AVIATION INVESTMENT PROJECT ternational Airport has maintained all regulatory com- (P154149) pliance requirements and certifications are current. Airfield Rescue and Fire Fighting (ARFF) Category 9 A USD 5.44 million IDA Credit for the Vanuatu Avia- outcomes have been exceeded, as the two additional tion Investment Project was approved by the Bank in vehicles have enabled Samoa Airport Authority FY 2015 as well as an Additional Financing of USD (SAA) to now meet Category 10 status. The pave- 14.1 million in FY 2017. The project development ob- ment rehabilitation works have commenced, and in- jective (PDO) is to improve operational safety and stallation of the VSAT, ADS-B ground station and air- oversight of international air transport and associated

infrastructure in Vanuatu. with targeted technical assistance and capacity de- velopment programs for both AVL and CAAV. The The project is entering the fourth year of a five-year safety and security levy is in effect; activities to facili- implementation period and is making moderately tate improved oversight capabilities are on-going. satisfactory progress towards achieving the PDO. Despite delays to the progress of the main invest- Contact persons are Dung Anh Hoang at ment activity - physical works for Bauerfield Interna- [email protected] and Christopher De Serio tional Airport runway rehabilitation and apron pave- at [email protected] ment improvements – it is anticipated that the project will be able to deliver on expected outcomes. Con- tractor delays have occurred with (i) the sourcing and importation of aggregate for the runway works; (ii) PACIFIC ISLANDS locating a suitable site for unloading aggregate and PACIFIC AVIATION SAFETY OFFICE assembly of the asphalt batching plant; (iii) ensuring quality assurance measures meet relevant technical REFORM PROJECT (P145057) specifications and industry standards; and, (iv) meet- ing the projects safeguard standards. A USD 2.15 million IDA Grant for the Pacific Aviation Safety Office Reform (PASO) was approved by the Airfield Rescue and Fire Fighting (ARFF) Category 7 Bank in FY 2014 as well as an Additional Financing outcomes will be attained. Technical Assistance with (AF) of USD 0.95 million in FY 2017 and of USD AVL Master Plan and Aviation Sector Strategy have 13.55 million in FY 2018, with an extended closing been completed but require Government endorse- date of 31 December 2021. The project development ments. ADS-B avionics have been procured and objective (PDO) is to strengthen the coordination ca- were installed in 2018. Smaller investment activities, pacity of the Pacific Aviation Safety Office to deliver including modernization of air navigation aids and regional aviation safety and security oversight, and communications, have yet to commence, but can be technical and advisory services to the Pacific Island completed within the project schedule. The project is Countries. making reasonable progress on institutional aspects

The objective of the second AF (AFII) for the PASO from Vanuatu for local office management in Port Vila, Project is to strengthen the coordination capacity of subscription fees from its Member and Associate the Pacific Aviation Safety Office to deliver regional Member States, and fee-for-service billing of opera- aviation safety and security oversight, and technical tors) to the revenues collected through a regional and advisory services to the Pacific Island Countries. safety and security levy on departing international pas- The original project design was completed in 2013 sengers. Quality Assurance Systems, as well as tar- within a six-month preparation horizon. Upon recogni- geted consultancies providing regulatory and market- tion that PASO's short-term cash flow forecast and ing support, have been successfully completed. An forthcoming liabilities projecting an impending insol- Operations Manager and Corporate Services Manager vency, Member States requested IDA support to an were appointed in FY18. The PASO Council has also agreed reform agenda. Appraisal estimates for the endorsed the recommendation of the Financial Man- recommended activity interventions defined in the agement and Sustainability Analysis and will be imple- 2013 Business Plan were not sufficiently robust. There menting a new 'total cost model'. was also a fiduciary risk associated with the PASO's ongoing fiscal performance issues. For this reason, Furthermore, there has been an increased uptake in the original project size was limited to approximately PASO services, reflecting the improved level of confi- USD 2.15 million equivalent. During implementation, it dence in PASO inspectorate knowledge and skills. became clear that funding resources were not suffi- The register of inspectors continues to provide expert cient to meet the project's investment expectations advice to regulatory authorities, with the technical spe- related to capacity development for the inspectorate cialists on the registry implementing State’s agreed pool, as well as the envisaged IT business transfor- annual work plans. The PASO Council has adopted mation. an updated set of new business materials, including: (i) PASO Employment Policy and Procedures Manual; The AFII will allow PASO to progress towards the suc- (ii) PASO's Financial Management Policies and Proce- cessful completion of the reform activities, thereby en- dures Manual; and (iii) Skills Development and Train- suring the continued effective and efficient delivery of ing Policy. A PASO Suite of Manuals have been also safety and security oversight functions to its Pacific refined and accepted by Council. A PASONET IT State members. The most important outcome of the Strategy was completed in January 2018. New Very AF, along with its three‐year closing date extension Small Aperture Terminal (VSAT) installations in Cook will be ensuring that PASO is increasingly more finan- Islands and Niue will provide regional aeronautical cially viable. Specifically, the AFII will finance the im- communication network upgrades. Implementation of plementation of a new funding modality, Capacity De- the related activities that are underway are expected velopment for the Regional Inspectorate Program, to be completed in early 2019. Quality Management Systems, Regional Aviation In- frastructure Contact persons are Christopher De Serio at [email protected] and Christopher Bennett at The project is entering the fifth year of a five-year im- [email protected] plementation cycle. Implementation progress has been rated Moderately Satisfactory or better for the life of the project cycle and considerable progress has been made towards achieving the Project Develop- ment Objective (PDO). The project has been instru- mental to ensuring the continuation of technical assis- tance in regional aviation safety and security oversight with PASO’s respective Member States. Most note- worthy is the consistent increases in PASO services being provided to Member States in each year of the project.

Implementation progress is largely on track to enable completion of several current project activities. The Council is carrying forward the recommendations out- lined in the PASO Governance and Restructuring Findings that will strengthen the roles and responsibili- ties of the Council and Management, as well as intro- duce new management and procedural manuals that clarify delegations of authority and streamline corpo- rate delivery. A Financial Management and Sustaina- bility Analysis evaluated options to move from PASO’s current funding structure (i.e., Host Agreement funding

BOLIVIA in the Eastern Caribbean Sub-region. The objective NATIONAL ROADS AND AIRPORT INFRA- of the Project in Grenada is to measurably reduce vulnerability to natural hazards and climate change STRUCTURE PROJECT (P122007) impacts in Grenada and in the Eastern Caribbean Sub-region. The objective of the Project in Saint Vin- A USD 109.5 million IDA Credit for the Bolivia Nation- cent and the Grenadines is to measurably reduce al Roads & Airport Infrastructure Project was ap- vulnerability to natural hazards and climate change proved by the Bank in FY 2011. The project closing impacts in Saint Vincent and the Grenadines and in date has been extended to August 2022. The Project the Eastern Caribbean Sub-region. For these two Development Objective (PDO) is to improve the year- particular projects, the Bank has approved a USD round transitability of the San Buenaventura-Ixiamas 20.9 million IDA Credit. The achievement of the Pro- national road and improve the safety, security and gram Development Objectives (PDO) of the RDVRP operational reliability of the Rurrenabaque Airport. In would be measured using the following key indica- terms of aviation activities, the project is supporting tors: (a) Reduced risk of OECS population to failure the construction of a new taxiway, apron, control tow- of public buildings and infrastructure due to natural er, operations building, rescue and firefighting build- hazards or climate change impacts; and (b) In- ings, an access road, a passenger terminal, and the creased capacity of OECS Governments to identify acquisition and installation of aviation control, rescue and monitor climate risk and impacts. and firefighting equipment. Grenada is taking the lead on piloting integrated ap- proaches to urban flood mitigation. Saint Vincent and the Grenadines would take the lead on piloting inte- grated approaches to watershed management and coastal protection. In collaboration with other coun- tries from the region and the support of regional tech- nical agencies, the respective Ministries of Works have taken the lead on organizing the Eastern Carib- bean regional knowledge sharing and learning pro- cess to develop and apply construction standards and methods in the selected areas. Furthermore, for Grenada the program has envisioned to support nec- essary investments at its international airport to en- sure continued operations in accordance with inter- national aviation regulations. The airport functions as an important regional infrastructure site in the re- gion’s emergency response capacity. In the event of disaster, Grenada’s Maurice Bishop International Airport (MBIA) is the gateway to provide The Project has had a long history characterized by emergency relief locally as well as regionally. MBIA is its ups and downs. However, recent events signify an the alternate airport for Trinidad and Tobago, Barba- inflection point with a turnaround in performance. For dos, and St. Vincent and the Grenadines. MBIA instance, the contracting of both civil construction would also be able to provide air traffic support in works and supervision services for the Rurrenabaque emergency situations to the island of Saint Vincent. Airport improvements has been completed. Works MBIA should be ready to provide to Grenada and the commenced in May and are progressing well. region, as needed, airport facilities and space for an emergency or disaster staging area. The continued Contact person is Stephen Muzira at operation of the airport is therefore critical to the re- [email protected] gion as well as to Grenada. The airport authority has identified critical investments that are required both to EASTERN CARIBBEAN SUB-REGION maintain an adequate emergency response capability NATIONAL DISASTER VULNERABILITY RE- and to comply with operational standards as required DUCTION APL1 - GRENADA AND by the International Civil Aviation Organization (ICAO). ST. VINCENT AND THE GRENADINES (P117871) Under component two (Regional Platforms for Haz- ard and Risk Evaluation, and Applications for Im- The Regional Disaster Vulnerability Reduction Pro- proved Decision Making), the project is supporting gram (RDVRP) aims at measurably reducing vulnera- the reduction of risk for regional interconnectivity and bility to natural hazards and climate change impacts carrying out related supporting studies, including im- proving the international airport to maintain an ade-

quate emergency response capability and to comply with the international operational standards, through the provision of works, technical advisory services, training, and acquisition of goods. By the end of FY 2018, critical building blocks to Grenada’s technical and institutional capacity to manage climate resili- ence in forest, engineering, physical planning, disas- ter management and water resource management has been completed, including: development of a na- tional geodetic network, LiDAR topographic and bath- ymetric survey, development of safety plans for schools, installation of fire alarm systems, delivery of custom built fire trucks, custom built rescue boats, the purchasing of tractors and other equipment for the International airport.

Contact person are Keren Carla Charles at [email protected] and Nicholas James Callender at [email protected]

BHUTAN tion Weather Observing System (AWOS), which pro- HYDROMET SERVICES & DISASTER vides conditions along the runway of wind speed, di- rection, runway visibility, temperature and relative RESILIENCE REGIONAL (P154477) humidity. However, this system is aging being 14 years old and needs to be urgently replaced. The air- In FY17, the Bank approved a USD 3.8 million IDA port also need urgent improvements in monitoring Grant to The Royal Government Of Bhutan for a Hy- variability of wind speed (a key contributor of turbu- dro-Meteorological (Hydromet) Services And Disaster lence) and visibility when approaching or departing a Improvement Regional Project. The project develop- given airport. This sub-component is supporting: (i) ment objective (PDO) is to strengthen Bhutan's ca- the procurement of one wind profiler system and a pacity for hydromet services and disaster prepared- ceilometer for Paro International Airport and one ceil- ness. ometer for Bumthang Domestic Airport; and (ii) the The project includes an Aviation Meteorology en- procurement of an AWOS at Paro airport. hancement sub-component, which is funding target- ed aviation meteorology equipment, hardware and By the end of FY 2018, The contract for the “Supply, software to enhance aviation safety at Paro Interna- delivery, installation and commissioning of meteoro- tional Airport (PIA) and Bumthang Domestic Airport. logical observation systems to support civil aviation As a land locked country, air transport is the only automatic weather observations system, ceilometers mode of transportation for Bhutan to connect to other and wind profiler” had been awarded. The installation countries except for India which is connected by was expected to be done by July 2018. This contract road. Aviation is also the key to promoting tourism includes an AWOS for Paro international airport and which is the second driver of economic growth after the team was informed of the necessity of procuring hydropower for Bhutan. However, PIA—the only in- 3 additional AWOS for the domestic airports in ternational airport in Bhutan is identified as one of the Bumthang, Trashigang and Gelephu, due to the im- top ten dangerous airports for aircraft landings in the pact of high winds on air services and agreed that an world. Nestled in the Himalayan Mountains, it has a amendment to the contract would be done. The up- runway elevation of 7,300 ft. above sea level, sur- dated contract was expected to be completed by the rounded by peaks as high as 18,000 ft. The unforgiv- end of December 2018. ing terrain and weather is so severe that flights are allowed only under Visual Flight Rules (VFR), and Contact persons are Dechen Tshering at are restricted to daylight hours. There are only a [email protected] and Arati Belle at small number of pilots (about 25) qualified to land at [email protected] PIA. The airport is currently equipped with an Avia-

NDMA. The third component (Contingent Emergency Response Component (CERC)) will support prepar- edness for a rapid response to climate and natural disasters, emergency, and/or catastrophic event as needed. Under Sub-component 1.3 (Enhancing PMD Service Delivery and Building Partnerships with the Private Sector), the project will support strengthening ser- vices for aviation (USD 1.0 million). This activity will include the upgrade of the monitoring and forecasting system at airports to improve aviation services, and the installation of an Aircraft Meteorological Data Re- lay system at 10 international airports. Contact persons are Haris Khan at [email protected], Ditte Gammelgaard at [email protected] and William Young at [email protected]

PAKISTAN HYDROMET & DRM SERVICES PROJECT (P163924)

In May 2018, The Bank approved a USD 188 million IDA Grant to the Government of Pakistan for Hy- dromet and DRM Services Project (PHDSP), whose development objective (PDO) is to strengthen Paki- stan's public sector delivery of reliable and timely hy- dro-meteorological and disaster risk management services. The project has three main components. The first component (Hydro-meteorological and Cli- mate Services) includes four sub-components: (i) In- stitutional Strengthening and Capacity Building; (ii) Modernization of the Observation Infrastructure, Data Management, and Forecasting Systems; (iii) Enhanc- ing Pakistan Meteorological Department (PMD) Ser- vice Delivery and Building Partnerships with the Pri- vate Sector; and (iv) Project Management, Systems Integration, and Monitoring and Implementation Sup- port of PMD. The second component (Disaster Risk Management) consists of three subcomponents: (i) Legal Policy and Institutional Strengthening; (ii) Infra- structure for Resilience; and (iii) Project Manage- ment, Monitoring, and Implementation Support of

KENYA - GREECE outlined the process they passed, becoming a fully carbon accredited airport. The participants of the In late July 2017, a Bank Air Transport Team trav- workshop discussed the steps that KAA will have to elled to Athens, Greece on an air transport mission. take to attain the first level of carbon accreditation, The Bank Team participated as organizer in the Ath- which should be a stated objective of the future Ken- ens Airport Environmental Management Workshop, ya Aviation Modernization Project. The participants which was held for the benefit of the Kenyan Airport were fully pleased and satisfied with the workshop Authority (KAA) and its officials, with the aim to pre- content, site visits, and discussions. pare them to include a “green airport” concept for As a next step, the design consultants (one repre- Nairobi International Airport, under the Kenya Avia- sentative of ADP was present) will incorporate tion Modernization Project (in preparation) which measures that will facilitate carbon accreditation. Fur- should eventually result in ACI certification concern- ing carbon neutrality. The workshop was attended by staff from the KAA, the Ministry of Transport, and the Bank’s Project Team. The consultants of the workshop, former and current environmental managers of Athens Interna- tional Airport (AIA) provided an excellent overview and insight on environmental matters concerning air- port management. Topics, such as noise manage- ment, water treatment, waste management, commu- nity relations, and wildlife control, were presented with site visits and discussions. An important objective of the workshop was the po- tential Carbon Accreditation of airports in Kenya. AIA

thermore, the first steps towards level one of certifica- vilian airport may need to be replaced or enhanced. tion will be evaluated and prepared (e.g. calculating The mission visited both airports and identified invest- current carbon emissions). ment needs in Kumasi (ATC tower and Rescue and Fire Fighting Services), and the need of supporting the decision making for Takoradi and other airports by financing a National Air Transport Masterplan.

Benin (Cotonou): The main issue of the air transport sector in Benin is the construction of the new airport which is scheduled to commence soon. However, while representatives of the GoB clearly state that the construction is decided and will happen, main doubt exists that it will be completed in due time. Therefore, investments in the existing airport, including certifica- tion of COO according to ICAO standards, are planned. Then again, the days of Cotonou Airport (COO) seem counted, and a study on the usage of the terrain of COO is needed. The mission considers this situation very unsatisfactory. Especially the fact that no study about an alternative solution to enhance WEST AFRICA the existing airport (larger terminal, runway extension) has ever been considered, but instead an expensive Between May and June 2018, a Bank air transport new airport (experience shows that a USD 630 million mission visited Accra and Kumasi in Ghana, Cotonou airport project often costs USD 800 million or more) is in Benin, and Conakry in Guinea, Ouagadougou, considered the only way forward for the country’s air Burkina Faso, and Lomé, Togo. The Bank team car- transport sector, cannot be supported. ried out a pre-identification mission for the West Africa Air Transport Policy Reform Project by assessing the Guinea (Conakry) : The focus for development of the needs of the sector. air transport sector in Guinea should be the enhance- ment, modernization, and expansion of the airport at Ghana (Accra/Kumasi): The main airport in Accra Conakry Airport, which would also neutralize and fu- has no major needs that need support, and the regu- ture considerations about the construction of the new lator is well established and performs its oversight airport. The current PPP with ADP must be reviewed, responsibility adequately. However, there are two air- as it provides the possibility to raise financing for ma- ports in Ghana, which still need investments. First, jor works on the expansion of the terminal building. Kumasi Airport is seeing a major reconstruction, but However, airside investments, such as a runway or not all financing is secured. Second, Air Force Base tarmac overlay and a new air traffic control tower, Takoradi, which is serving as a dual use military / ci- may be beyond the scope of a PPP, given the still modest traffic. In terms of capacity building, the regula- UZBEKISTAN tor (AGAC) needs support in order to be able to provide adequate oversight of the sector. In April 2018, a World Bank mission, including IFC Advi- sory Services, took place in Tashkent, Uzbekistan, with Burkina Faso (Ouagadougou): The Government of the objective to review the country’s Comprehensive Burkina Faso decided to build a new greenfield airport, Transport and Logistics Sector Strategy, mainly focused OUA-DOS, which will be located approximately 35 km on air transportation and connectivity issues. The fol- northeast of Ouagadougou near the village of Donsin. lowing findings were discussed during the mission: The mission examined the arguments for the new air- port (see attached Technical Note), and concluded that • In terms of the institutional setup and capacity of the none were valid. In terms of policy measures, Burkina sector, Uzbekistan Airways (UZB) controls sector by Faso has only one main issue: the construction of the having a de facto monopoly, operating the airport, new airport. Should the country go ahead with the pro- as well as Air Traffic Control (ATC), and the fuel dis- ject, then the Word Bank should clearly state its con- tribution. The technical regulator (CAA) was sepa- cerns of cost (budgeted at USD 714 million) versus rated from UZB, but is still funded by UZB, and as benefit, and not getting involved in the project. In light of such dependent of UZB. The Department of the these considerations, and given the current deficiencies Cabinet of Ministers oversees transportation, which at the existing airport, the mission saw three levels of includes the aviation sector, while policymaking as- possible support: pects, such as bi-lateral agreements, are executed by the CAA. The oversight capability of the CAA • Necessary: At OUA, resurfacing and repair of the (ICAO USOAP) is below global and regional aver- runway, taxiways, and tarmac, security improve- ages, but the country has a FAA Cat. 1 rating. ments, at a likely cost of USD 30 – 50 million; or • Possible: At OUA, Construction of an additional ter- minal building and relocating the RFFS station, at a likely cost of USD 20-30 million; or • Advisable as a long-term investment, in case OUA DOS would not be built: Construction of a new mod- ern terminal building at OUA at the East of the run- way by a PPP with a concession to run the airport, at a likely cost of USD 100 million.

Togo (Lomé): The mission discussed and reviewed the current needs of the Air Transport Sector. These can be grouped into three sections: (i) strengthening the Civil Aviation Authority (ANAC); (ii) Institutional Strengthen- ing; and (iii) Infrastructure and Maintenance. Further- more, together with the WB Country Director and Local Representative for Togo, participated in the 4th Ministe- rial Working Group meeting on Single African Air Transport Market (SAATM), which was organized by the African Union Commission (AUC) in conjunction with African Civil Aviation Commission (AFCAC). • Analyzing the performance of the SOEs in the avia- The meeting addressed the implementation status of tion sector, the mission noted that the airline makes the immediate measures to ensure the effective opera- profit and is modernizing its fleet (new Boeing, Air- tion of the market and facilitate the harmonization of air bus). Three of eleven airports are profitable service agreements between the Member States of the (Tashkent, Bukhara, Samarkand), and a major ter- single market. The mission also inquired about the re- minal expansion is underway at Tashkent interna- gional needs and priorities of the air transport sector. tional airport. ATC is also a profitable enterprise and The mission concluded that there are three themes that technically up to standards. need to be addressed or improved: (i) Policy (access to markets, fees and taxes etc.), (ii) Regulatory Oversight, • In terms of sector policy, UZB is the only operator and (iii) Development of Capacity in the Air Transport that holds an Air Operator Certificate for commercial Sector. air transport in Uzbekistan. The Bilateral Air Service Agreements for international traffic are restrictive, in order to protect UBZ. UZB is also the only author- ized provider of ground handling services and fuel. Economic regulation is done by Ministry of Finance (e.g. airport charges, fuel prices, domestic air fares),

but there is an absence of a mechanisms to prevent ATC must also have its business plan and act as unreasonable costs to be charged by any monopoly corporatized stand-alone service provider. The Gov- provider. ernment of Uzbekistan should create an airport de- velopment strategy, which also addresses second- ary airport development (Bukhara, Samarkand ver- sus Karshi), and probes PPP opportunities in air- ports. The strengthening of regulatory oversight in economic matters, including the introduction of a mechanisms to prevent unreasonable costs charged (e.g. airport charges, fuel prices, domestic air fares) must be established.

SINT MARTEEN

From 9 to 11 May 2018, a Bank mission travelled to Sint Marteen to carry out an assessment of the Sint Maarten Airport Terminal Project Assessment. The mis- sion was held in response of a request for reimbursable • A possible pathway for reform should stress the fact technical assistance for the implementation of a Dutch that the air transport sector of Uzbekistan is ready Trust Fund (DTF) for the reconstruction and rehabilita- for reform or it may impede development (the mo- tion of various infrastructure and essential services in nopoly of UZB is a bottleneck for competition driven Sint Maarten following the devastating hurricanes in growth). It is necessary to unbundle the state- September 2017. owned-enterprises of the sector: the airline needs to develop a business plan and operate as commercial The assessment focused on the technical soundness of enterprise without benefitting from monopolistic ad- the proposed terminal reconstruction project, including vantages. The airports need to necessary to unbun- the adherence to international standards and recom- dle the state-owned-enterprises of the sector: the mended practices where warranted. In addition, the airline needs to develop a business plan and oper- Bank team took into consideration aspects of climate ate as commercial enterprise without benefitting resilience and “green airport” principles when reviewing from monopolistic advantages. The airports need to and making recommendations for the terminal design. be consolidated by creation of airport operating enti- Furthermore, potential alternatives for financing the air- ty and operating on more commercial principles. port reconstruction were discussed.

The mission discussed with the Government of Sint SRI LANKA Marteen (GoSM) the proposed financing of the airport terminal reconstruction with funding by the DTF. While From 15 to 23 September 2018, a Bank Air Transport there are many other priorities in the country, the Team travelled on mission to Colombo, Sri Lanka to GoSM is quite keen of using some funds for the airport evaluate and discuss restructuring options for SriLan- reconstruction, and it would like the World Bank Group kan Airlines (SLA). These preliminary discussions with (WBG) implementing the project (technical assistance, the Government of Sri Lanka (GoSL) were followed by procurement, financial management). However, the the development of various restructuring options of the main question how the funds would be provided for the country’s national carrier, which had been character- reconstruction still needs to be decided (capital injec- ized by accruing substantial losses over the past tion versus government loan). Furthermore, if no fund- years thus affecting public finance. The discussions ing is provided directly by the DTF, the WGB could al- focused on: (i) the regional market of SLA; (ii) the strat- so provide a risk guarantee to facilitate commercial egy of similar carriers in the region, and (iii) restructur- loans. The DTF could then just finance the cost of the ing models of national carriers around the world. guarantee. Nevertheless, this solution still requires that the new debt is sustainable for PJIAE. A representa- The mission confirmed that the airline was currently in tive of the Dutch government signaled an overall posi- a challenging position with a total estimated exposure tive feedback, but the donor still needs to evaluate of USD 782 million, which has been exacerbated due competing needs in the country. Nevertheless, the pro- to continuous operating losses since 2008. The pay- vision of a partial financing could be assessed. The ment of USD 93 million paid in 2017 for the cancella- donor agreed to evaluate the proposed financing and tion of three A350 aircraft lease agreements has fur- revert back to the GoSM. In terms of preparatory work, ther worsened its financial position, while the pending the Bank has mandated specialized consultants to acquisition of four more A350’s aircraft will further add evaluate the sustainability of the proposed solutions to the debt burden. As a result, SLA has now reached (traffic forecast and airport capacity versus debt lev- the category of larger State Owned Business Enter- els).

prises, along with the Ceylon Electricity Board, Ceylon Contact person for Air Transport Advisory Services Petroleum Corporation and Sri Lanka Ports Authority, is Charles E. Schlumberger at in terms of losses being made. [email protected] The mission presented several options adopted by oth- er airlines in similar situations that consist of changes that are less drastic, but not likely to make a sustaina- ble impact, such as operational and financial restructur- ing. On the other hand, more impactful measures were presented which are likely to be less palatable for sev- eral stakeholders, such as the merge and absorb or liquidation and re-creation options. The mission also discussed some of the proposed alternatives that have already been pursued by SLA in the past, and the probability of success in the event they are repeated. The mission advised the Government, including during a follow-up meeting with the Prime Minister, on pursu- ing an option that would reduce the fiscal burden for the country in the longer run. Finally, the mission rec- ommended that the Government considered the pre- sented options and engaged a team of professionals experienced in the chosen option that can assist the implementation with an appropriate up-front communi- cation strategy. For the latter, the mission offered its continued support if requested by the GoSL.

IFC AIR TRANSPORT PROJECTS: The IFC provides financing to private sector companies and has traditionally financed air carriers and airport infrastructure pro- jects. IFC ACTIVE AVIATION PORTFOLIO: Major active commitments by the Internation- al Finance Corporation (IFC) include Queen Alia II in Jordan, the Zagreb Airport in Croatia, the Enfidha Airport construction in Tunisia, airports in Nosy Be and Antanana- rivo in Madagascar. In addition, the IFC investment portfolio also includes Lima Airport (Peru), Montego Bay Airport (Jamaica) and the Greek Regional Airports (14 in total). In addition, IFC is active through the provision of Advisory Services for Kingston Air- port (Jamaica), the Saudi Airports (26 in total), Sofia Airport (Bulgaria), Podgorica and

Tivat (Montenegro), Beirut Airport (Lebanon) and Clark Airport (Philippines).

Inter-

TYPE

A Loan A

mediation mediation

$10 million $10

A and B loans B loans and A B loans and A

standby up to to up standby

$7.5 million, IFC IFC million, $7.5

Client Risk Man- Risk Client

IFC A Loan up to to up Loan A IFC

agement agement

FY2017)

-

of

2017

-

30, 2018 30,

$210 million $210

S EXPOSURE (as EXPOSURE S

(Million USD) (Million

$3 million (31658) $3million

$1.5 million$1.5(24306)

of End of

IFC

No outstanding as of June ofJune as outstanding No ofJune as outstanding No

s own account account own s

(24306)

$7 million $7

AMOUNT AMOUNT

(Million USD) (Million

Up to $17.5 million $17.5 to Up

$1.2 million (24676) million $1.2 (31658) million $7.5

forIFC

$42 million; $20 million million $20 million; $42

re-

sion

IFC PROJECTS IFC

(24306) (24676)

Expansion and redevelop- and Expansion

-

DESCRIPTION

investments (31658) investments

Dauphin N3 helicopters to provide provide to N3 helicopters Dauphin

in the floating rate IFC Phase 1 loans 1 Phase IFC rate the floating in

Cambodia Airports II: Privatization of of Privatization II: Airports Cambodia

national Airport (SIA) and other safety safety other and (SIA) Airport national

ment of Sangster International Airport Airport International Sangster of ment

IAS: Acquisition of up to 3 secondhand secondhand 3 to up of Acquisition IAS:

exploration and production companies production and exploration

Phnom Penh International Airport Airport International Penh Phnom

transport services to leading oil and gas gas oil and leading to services transport

of the runway overlay of Sangster Inter- ofSangster overlay runway ofthe

MBJ ROS: The proposed project consists consists project proposed The ROS: MBJ

MBJ Phase II II Phase MBJ

is to provide a USD interest rate swap to to swap rate USD interest a provide to is

MBJ Phase 1 Swap: The proposed project project proposed The 1Swap: Phase MBJ

hedge the interest rate volatility inherent inherent volatility rate interest the hedge

quired capital and investments for expan- for investments and capital quired

25332 32061 24676 24306 31658

CODE

PROJECT PROJECT

Jamaica Jamaica Jamaica

Cambodia

COUNTRY Cote D'Ivoire Cote

-

Equity Equity

TYPE

26685)

IFC A Loan Loan A IFC

and (34536) and

Loan (26182) (26182) Loan

IFC Client Risk Risk Client IFC

$160 million B B million $160

Swaps (26864, (26864, Swaps

Management Management

$141.2 million; million; $141.2

Cross Currency CrossCurrency

loan and and loan

-

USD*

$3.8 million $3.8

$13.4 million $13.4

S EXPOSURE (as (as EXPOSURE S

million quasi million swaps in million $15.6

of end of FY2018) FY2018) of end of

IFC

$70.7 million A Loan; $50 $50 Loan; A million $70.7

s s

$25 million $25 million $20

ownaccount

$295 million; million; $295

AMOUNT (USD) AMOUNT

$148.4million for IFC for $148.4million

i-

l

i

c

a

f

e

d

i

s

d

n

a

l

d

n

a

e

d

ties

i

s

IFC PROJECTS IFC

r

aircrafts

i

a

with Fraport with

h

t

DESCRIPTION

o

b

f

o

n

o

ti

KQ Airways: Expansion program con- program Expansion KQ Airways:

a

Lima Airports Partnership: Financial re- Financial Partnership: Airports Lima

t

sisting of the acquisition of 9 Boeing 787 Boeing 9 of acquisition of the sisting

i 190 Embraer 10 and aircrafts Dreamliner

structuring and assistance in conjunction conjunction in assistance and structuring

Queen Alia International Airport: Rehabil- Airport: International Alia Queen

31650 24489

CODE

PROJECT PROJECT

26864, 26685 26864,

26182, 34536, 34536, 26182,

Peru

Kenya

Jordan COUNTRY

TYPE

(31969)

Guarantee

and C Loan C Loan and

Loan, Equity Loan,

Syndicated B B Syndicated

A Loan, Equity, Equity, Loan, A

A Loan, Parallel Parallel Loan, A MIGA Loanand

ordinated Loan, Loan, ordinated

IFC A Loan, Sub- Loan, A IFC

Client Risk Man- Risk Client

agement (34380) agement

A Loan and Client Client and Loan A Client and Loan A

Risk Management Risk Management Risk

S EXPOSURE EXPOSURE S

$75.2 million $75.2 million $21.2

$111.3 million $111.3

(as of end of of (as

FY2018) USD* FY2018)

$4.4 million (34380) million $4.4

IFC

$61.1 million (31969) million $61.1

$111.3 million (26913) million $111.3

s s

s s

s ownac- s

count

MIGA Guarantee MIGA

$97.4 million A Loan Loan A million $97.4 Loan A million $65.9

$1.2 million for IFC for million $1.2

AMOUNT (USD) AMOUNT

lion for IFC for lion

$43.5 million A Loan, Loan, A million $43.5

own account (31969) ownaccount (34380) ownaccount

and $3.8 million swap swap million $3.8 and swap million $2.8 and

$109.4 million Parallel Parallel million $109.4

Loan and $71.3 million million $71.3 Loanand

$72.65 million for IFC for million $72.65

$253 million; $184 mil- $184 million; $253

(Commitment in Euros) in (Commitment Euros) in (Commitment

IFC PROJECTS IFC

DESCRIPTION

the existing facilities. existing the

upgrade at 7 airports) at 7 upgrade

Ravinala: Upgrade and expansion expansion and Upgrade Ravinala:

Africa Infrastructure Fund. Infrastructure Africa

-

bilitation of the airport in Monastir in airport the of bilitation

ditional airports in key Greek islands) Greek key in airports ditional

Zagreb Air Hedge: Interest RateSwap Interest Hedge: Air Zagreb

Greek Airports (Infrastructure services services (Infrastructure Airports Greek

country, with the help of the Emerging Emerging the of the help with country,

TAV Tunisia: Construction of a newair- a of Construction Tunisia: TAV of the airports international two ofthe

7 million passengers per year, and reha- and year, per passengers million 7

Zagreb Airport: Construction and and opera- Construction Airport: Zagreb

tion of a new passenger terminal and re- and terminal passenger new a tion of

FCS RE FCS

Greek Airports B (Modernization of 7 ad- 7 of B (Modernization Airports Greek

port in Enfidha, with an initial capacity of of capacity initial an with Enfidha, port in

lated infrastructure at Zagreb Airport and and Airport Zagreb at infrastructure lated

37655 38905 36882

CODE

PROJECT PROJECT

26913, 28076 26913, 34380 31969,

Tunisia

Greece

Croatia

Madagascar COUNTRY

KROATIA ger volume risks, enabling the country to upgrade ZAGREB AIRPORT (31969) essential infrastructure without adding a burden to state finances.

The IFC is supporting the development of a terminal MADAGASCAR at Zagreb International Airport as part of a Public Pri- vate Partnership (PPP). The new USD 450 million AIRPORTS IN NOSY BE AND ANTANANA- terminal, built by a consortium supported by IFC, is RIVO (36882) expected to contribute to economic growth and tour- ist activity. Tourism is a major driver of employment In FY17, IFC approved the project for airports in Madagascar. The project consists in a 28-year De- in Croatia, and improved infrastructure will develop sign, Build, Finance, Operate and Transfer (“DBFO”) the sector and boost GDP. IFC is committing USD concession to rehabilitate, upgrade, expand, operate 72.65 million to the project, including a loan of up to and maintain the two largest airports in Madagascar: USD 47 million and an equity investment of nearly Ivato Airport, serving the capital city Antananarivo, USD 26 million. The concession includes financing, and Fascene Airport, located on the island of Nosy design, and construction of the terminal, along with Be, the country’s busiest tourist destination. The con- airport operation until 2042. cession was awarded through an international com- petitive tender to Ravinala Airports. The Project The new terminal is 65,000 square meters and has Company’s shares will be owned by four reputable welcomed 5 million travelers per year since it opened investors, three of whom are existing IFC clients. It in March 2017, compared to its previous capacity of represented an opportunity for IFC to invest in one of two million. An average of 400 new jobs were creat- the poorest countries in the world. The investment ed during construction, and up to 700 at peak. For aimed to expand the airports’ capacity while they re- the first time in Croatia private firms involved in a mained operational. transport concession project have assumed passen-

PERU TUNISIA LIMA AIRPORT (24489) ENFIDHA AIRPORT CONSTRUCTION (26913) In FY07, IFC approved the Lima Airport equity invest- ment. It was for a 19.99 percent stake for USD 20 In FY08, IFC arranged a full financing package of million. At the time IFC considered the investment, €135 million from IFC’s own account and a €255 mil- Lima Airport Partners S.L.R. (LAP) had a 30-year lion syndicated loan, underwritten by ABN, Société concession to operate the Jorge Chavez Int'l Airport Générale, and Standard Bank. This was for a new in Lima, Peru. Concession term can be extended to airport at Enfidha, in central Tunisia, which would 40 years at LAP’s option and to 60 years by mutual have an initial capacity of seven million passengers agreement between LAP and the government of Pe- per year. This was also to rehabilitate the existing ru. JCIA is the only commercial airport serving Lima airport at Monastir and operate both under a 40-year and is Peru’s primary international airport, operating concession. The airports were set to serve major on a 24-hour schedule. It was, and remains, the prin- tourism cipal hub for domestic routes in Peru. IFC’s invest- areas around the towns of Monastir, Sousse and ment intended to support the private operation of an Hammamet on the Mediterranean Coast. This was international airport hub in one of Latin America’s the first PPP in the air transport sector in Tunisia and best performing economies and enabled the transfer more broadly, in North Africa. of control from a shareholder (Singapore Airport/ Bechtel) to a strategic investor and airport operator Contact person for all IFC Investment projects is (Fraport AG), committed to the airport’s expansion Maria Lopez Conde at [email protected] and increased efficiency. Fraport AG Frankfurt Airport Services Worldwide (“Fraport”) owns and operates the Frankfurt Airport in Germany, the seventh largest airport in the world and second largest airport in Europe. Fraport’s manage- ment was meant to add airport operation and man- agement know-how and result in an upgrading of skills of the local workforce. MIGA also provided Fraport with a guarantee for USD 11.5 million, to cov- er its USD 12.8 million counter guarantee for a per- formance bond posted for the privatization of Lima's airport.

The Infrastructure Advisory Services Department 2) IFC Public-Private Partnerships (PPP) Advi- of the IFC provides advisory assistance to govern- sory Mandates in Airlines ments on structuring and implementing (tendering) Public-Private-Partnerships (PPPs) in infrastruc- As the airline industry has proceeded along this ture. IFC has undertaken more than 100 advisory privatization path over the last 30 years, IFC has transactions in over 67 countries over the last 20 participated in nearly a dozen airline transactions. years. IFC/World Bank's reputation for compe- Unfortunately, many have proved to be difficult tence, transparency, and fairness allows it to play projects due to important sector-specific structural the role of neutral partner to balance each party's reasons: interest, thus reassuring foreign investors, local partners, other creditors, and government authori- • Fixed-cost structure: Airlines tend to build up a ties. The two main domains in air transportation legacy-costs base (staff and fleet) that is diffi- advisory services are private sector participation in cult for a new owner to manage. In addition, airports and air carriers. fuel costs are beyond management’s control. During the period of higher oil price in 2011- 1) IFC Public-Private Partnerships (PPP) Advi- 2014, they accounted for as much as 30 per- sory Mandates in Airports cent of the cost base (up from 15-20 percent in 2009), and have since dropped with declining Only a fraction of the world’s commercial airports oil prices (variations according to individual air- are managed or owned by private sector entities. line hedging strategies). However, as passengers carried by air transport • Price-sensitive product: Demand for travel is has neared 4.1 billion in 2017, and more than one- highly elastic, especially in tourist markets. In third in value of all merchandise and goods were recessions, people forgo vacations for other air freighted – Public-Private-Partnerships (PPPs) consumer goods. Conversely, price reductions in airport infrastructure will grow to meet invest- increase passenger numbers dramatically. ment and required service standards. Airport PPPs • Complicated demand chain: Customers often are useful approaches to meet both private and purchase tickets through travel agents, fre- public sector objectives. quently in a package with hotel accommoda- Of the various airport PPP models available, expe- tions. Since airlines rely on these other actors rience shows that concessions and full divestiture for their sales, if there are bottlenecks else- are most effective: where the aviation sector suffers. • Concession Contracts (BOT, BOO, BOOT, • Overregulation: Bilateral agreements between BTO, etc.): State retains ownership of airport governments, still prevalent in many parts of but transfers investment as well as operations the world, prevent competition from functioning and management responsibilities to the private normally. Open skies are being adopted, but sector not in all countries. • Full Divestiture: Ownership, operations, and investment responsibilities are fully transferred 3) IFC Air Transportation Experience to the private sector. • In certain cases, a blend of first-phase BOT When undertaking a transaction advisory man- followed by public offering can maximize bene- date, IFC provides a one-stop solution to govern- fits ments covering all aspects of the proposed trans- action. One of the distinguishing features of IFC’s In certain cases, a blend of first-phase BOT fol- value addition is its ability to balance private and lowed by public offering can maximize benefits. public sector interests and take into account sus- tainable long term economic and social effects.

Selected IFC Advisory Mandates in Airports

PROJECT NAME COUNTRY YEAR MANDATE/RESULT Montenegro Airports Montenegro 2018-ongoing Due Diligence / Project Structuring

Beirut Airport Lebanon 2018-ongoing Due Diligence / Project Structuring

Sofia Airport Bulgaria 2017-ongoing RFP process ongoing

Nepal Airports Nepal 2016-ongoing Strategic Assessment Ongoing

Clark Airport Philippines 2018 Awarded

Norman Manley Airport Jamaica 2018 Commercial Close

Samoa Airline JV Samoa 2017 JV Options Analysis

Jacksons Airport Papua New Guinea 2017 Strategic Options Analysis Due Diligence / Project Structuring / Tender pro- Jeddah Airport Saudi Arabia 2016 cess Taif Airport Saudi Arabia 2016 Due Diligence / Project Structuring

Saint Lucia Airport Saint Lucia 2016 Due Diligence / Project Structuring

Croatia Airlines Croatia 2015 Strategic Partnership analysis

Galeao and Confins Airports success-fully award- Brazilian Airports Brazil 2014 ed to Changi and Zurich Airport led consortiums respectively

Dili Airport East Timor 2014 Feasibility Study Completed Successfully awarded to TAV, Saudi Oger, Al Rajhi Madinah Airport Saudi Arabia 2012 consortium Male Airport Maldives 2010 Successfully awarded to MAHB —GMR Successfully awarded to Aéroports de Paris, ADIC, Queen Alia Airport Jordan 2007 J&P, Noor consortium Successfully awarded to Saudi Bin Laden Group, Hajj Terminal Saudi Arabia 2007 Aéroports de Paris con-sortium Successfully awarded to Abuja Gate-way consorti- Abuja Airport Nigeria 2006 um (Airport Authority and equity partners) Air Jamaica Jamaica 2009 Awarded to Caribbean Airlines

Drukair Bhutan 2008 Strategic analysis

JAT Yugoslavia 2006 Strategic analysis

Polynesian Airlines Samoa 2005 49% sold to Virgin Blue

Cameroon Airlines Cameroon 2005 Awarded but cancelled by Govt.

Air Tanzania Tanzania 2002 49% sold to SAA

Kenya Airways Kenya 1996 76% sold to KLM, financial investors

NORMAN MANLEY INTERNATIONAL AIRPORT

The Government of Jamaica (the "GOJ"), through the ports in Mexico, emerged ahead of two other bidders Ministry of Transport and Mining successfully con- comprising consortia of foreign and local investors. cluded the tender and award of a Public Private Part- The selection of a concessionaire was done through nership (“PPP” or the “Transaction”) to identify a pri- an open, transparent and competitive international vate sector operator with proven experience in the bidding process with key specific objectives includ- aviation sector to finance, develop, operate and ing: maintain the Norman Manley International Airport • Enhancing the competitive positioning of NMIA (“NMIA” or the “Airport”) under a long term conces- • Increasing service quality standards and improv- sion. The International Finance Corporation (“IFC”) ing operational efficiency in line with international was the Lead Advisor to GoJ on the Transaction. best practices • Leveraging private sector investment to improve The NMIA concession, is expected to deliver strong facilities and operation development impact for Jamaica, including improved • Monetizing the assets optimal value service and airport infrastructure to over 1.7 million passengers and mobilize more than USD $100M in This fits with the AAJ’s long term objectives for sus- investment over the 25-year term of the concession. taining NMIA as a world class airport that facilitates NMIA is owned by the Airports Authority of Jamaica private investment and the positioning of Jamaica’s airports as gateways to the Caribbean. (“AAJ”) and is one of the two major international air- ports in Jamaica. Contact persons for all IFC Advisory Services are The selection of Grupo Aeroportuario del Pacifico Ramatou Magagi at [email protected] and Alexandre S.A.B De C.V. (GAP) as the preferred bidder for the Leigh at [email protected] NMIA concession is being hailed as another suc- cessful Public Private Partnership (PPP) for Jamaica. GAP, a Mexican company with 50-year concessions to operate, maintain and develop 12 international air-

MIGA GUARANTEES ment with the Government of Jordan (GoJ) in 2007 to rehabilitate, expand and operate QAIA with the possibility to extend the con- Guarantees provided by the Multilateral In- cession by an additional 5 years (until 2037). vestment Guarantee Agency (MIGA) cover projects in a broad range of sectors, with MADAGASCAR: Ravinala Airports projects in infrastructure accounting for an important share of the agency’s portfolio. On 29 May 2017, MIGA issued an $85 mil- Infrastructure development is an important lion guarantee covering equity and share- priority for MIGA given the estimated need holder loan investments by Aéroports de for USD 230 billion a year solely for new in- Paris Management S.A, Bouygues Bâtiment vestment (maintenance needs are of a simi- International S.A.S., Colas S.A. and Meridi- lar magnitude) to deal with rapidly growing am Infrastructure Africa Fund, Meridiam In- urban centers and underserved rural popula- frastructure Africa Parallel Fund FIPS, Me- tions in developing countries. MIGA is cur- ridiam Infrastructure Africa Parallel Fund rently involved in three aviation projects: the SCsp into Ravinala Airports S.A. in Mada- Queen Alia International Airport in Jordan, gascar. The coverage is for a period of up to Jorge Chavez International Airport in Peru 15 years against the risks of transfer re- and the Ravinala Airports in Madagascar. striction, expropriation, war and civil disturb- ance, and breach of contract.

JORDAN: Queen Alia International The project consists of the financing, rehabil- Airport itation/ expansion, operation and mainte- nance of the Ivato airport in Antananarivo On 30 March 2018, MIGA agreed to issue and the Fascene airport in Nosy Be, current- guarantees of up to USD 195,154,839 to ly being managed by the state-owned enter- Meridiam Eastern Europe Investments 2 prise Aéroports De Madagascar (ADEMA). SAS (Meridiam) of France for its equity/ Works include (i) works at Ivato in prepara- quasi-equity investment into Airport Interna- tion of the Francophonie summit (expansion tional Group (AIG), the current concession- of apron and presidential pavilion as well as aire of the Queen Alia International Airport establishment of a dedicated process path in (QAIA) in Jordan. The guarantees are is- the existing terminal for arriving/departing sued for a period of up to 15 years against delegations), to be held in Antananarivo (the the risks of Transfer Restriction, Expropria- country’s capital) at the end of November; tion, War and Civil Disturbance and Breach (ii) construction of a new passenger terminal of Contract. at Ivato airport and limited refurbishment works in the existing terminal; (iii) renovation The project consists of the acquisition by of the runway and Tarmac II to host aircrafts Meridiam of a 32 percent stake in AIG, Code E and one Code F at Ivato; (iv) reno- which entered a 25-year concession agree- vation of the runway and limited expansion

of the current passenger terminal at Fascene airport; facility to serve as Peru's gateway to the world, and and (v) rehabilitation of landside facilities at both air- for the enhancement of tourism, an industry that the ports, including the construction of new wastewater government is actively trying to expand. treatment plants, improvement of the existing inciner- ator at Fascene airport to meet emission standards, The airport's privatization is expected to provide the improvement of surface water drainage, construction government with additional revenues through in- of a new waste water treatment plant and installation creased income tax, custom duties, and concession of an oil water separator at Ivato airport. fees. During the first four years of the concession, the consortium is expected to invest more than USD 130 PERU: Jorge Chavez International Airport million in new infrastructure, including upgrades to the current terminal, construction of a new passenger (JCIA) concourse, expansion and addition of new aircraft aprons and taxiways, and creation of a hotel and MIGA has provided Fraport AG, of Germany, with a world-class retail center within the existing airport pe- guarantee for USD 11.5 million, to cover its USD 12.8 rimeter. Upgrades in the technology and services at million counter guarantee for a performance bond the airport will create approximately 49 additional po- posted for the privatization of Lima's airport, Jorge sitions, mostly for expert technicians and service op- Chavez International Airport (JCIA). The coverage is erators. The sponsors have instituted an employee against the risk of expropriation (the wrongful call of profit-sharing plan. The majority of the goods and ser- the performance bond), and extends for eight years. vices required by the airport refurbishment will be sourced locally, and most ongoing capital expendi- Peru depends greatly on its airport network because tures foreseen, amounting to USD 1 billion over the of the country's geography, and because ground han- entire life of the concession, will be sourced locally. dling transportation infrastructure has not been fully Furthermore, the government will benefit from im- developed. JCIA is especially important to the coun- provements in JCIA's operation, through a revenue- try, since it is Peru's main operating international air- sharing agreement as well as a landing and take-off port, accounting for 97 percent of international traffic, fee-sharing agreement. as well some 58 percent of national traffic. JCIA also functions as a regional hub for all cargo traffic. The Contact persons for MIGA portfolio information are airport privatization is considered by the government Moritz Nikolaus Nebe at [email protected] and as a key factor in the expansion of employment op- Susan Josefina Vasquez at portunities, the creation of a modern transportation [email protected]

GHANA - WORKSHOP ON PPIAF ing, in particular airlines, also showed a very STUDY ON FEES, CHARGES, AND high interest in these findings as they directly determine their operating environment in TAXES OF THE AVIATION SECTOR West Africa. After engaged discussions, while recognizing the situation, ECOWAS member A World Bank mission travelled to Accra, states took a critical position about some of Ghana in June 2018. The mission held, in the proposals of the ECOWAS Commission cooperation with the ECOWAS Commission, to reduce royalties by 25 percent, to abolition a validation workshop on the PPIAF financed taxes, and to strengthen regional oversight study on fees, charges, and taxes of the avia- through an ECOWAS supervision authority tion sector. The main objective was to identify and a supplementary ECOWAS law. Rather, and prepare concrete policy recommenda- they prefer to reflect on their respective air- tions, which could be included in a West Afri- ports’ situation, and clarify the domestic gov- ca Air Transport Policy Reform Project. Fur- ernance of the air transport sector and the thermore, the workshop included the African fees charged airlines and passengers. Development Bank, which presented and dis- cussed supporting studies on air transport As next steps, the World Bank team will con- infrastructure, the financing of the aviation tinue this reform dialogue, which will include sector, and on safety and security. a more detailed review of the theme of ac- cess (liberalization) in the region. For this, Outcome: The participants of the workshop and to follow-up on the study on fees, charg- recognized that West Africa is by far the most es, and taxes of the aviation sector, an addi- expensive region in Africa for private sector tional workshop with ECOWAS and AFDB is airlines to operate in terms of fees and taxes planned for fall 2018 in Abidjan. Furthermore, applied. Representatives reflected in the de- a proposed future regional programme (IDA) tail on the nature of these charges and if and is in preparation where policy issues will be how much they can be justified under ICAO addressed.

standards. Private sector participants attend-

LEBANON - PPP WORKSHOP FOR and (iii) regulatory oversight over the aviation sector. FINANCING INFRASTRUCTURE As next steps, for the finalizing of the scope and out- line of PPP study on Iraqi airports, the World Bank Team and IFC agreed to conduct a join Mission to In April 2018, the Bank’s Lead Air Transport Special- Baghdad to visit Baghdad International Airport with ist participated in the Beirut Airport PPP workshop to Iraqi MOT and Civil Aviation Authorities on between discuss various funding mechanism for financing air- in May 2018. port infrastructure, as well as policy issues on access of air transport (e.g. liberalization). The Bank, in co- operation with IFC, presented to the Transport Com- mission of the Lebanese Parliament aspects of Civil Aviation Reforms and Global Trends in Aviation. The focus of his presentation was on SOE’s and PPP so- lutions in air transport. IFC, which was in the final steps of signing an advisory agreement with the GoL for support on airport PPP, presented on airport PPP solutions, including the successful Queen Alia Inter- national Airport project.

After the signing of the IFC Advisory Agreement for airport PPP in Lebanon, the terms-of-reference for a feasibility study for the commercialization (PPP) of Kleia’at airport in the north of the country must be prepared. Furthermore, in order to support a PPP ini- tiative for Beirut’s International Airport, an analysis of necessary sector reforms concerning regulatory over- sight, and economic regulation must be prepared. Finally, the possibility of introducing measures to ad- dress environmental issues, including Climate Change (Green Airport), will be considered.

In addition, during the workshop the Bank met with representatives concerning Iraq airport projects and discussed airport development and PPP issues for Iraq. The following three matters were discussed dur- ing the mission: (i) Baghdad Airport; (ii) Mosul Airport;

ATCOP KNOWLEDGE SHARING EVENT: ensure adequate allocation of resources. See the at- SUMMARY OF PLANNING FOR AIRPORTS tached presentation. IN A CONNECTED AND SUSTAINABLE Irene Zubcevic of the United Nations Department of WORLD Economic and Social Affairs (UNDESA) highlighted The Aviation Partnerships for Sustainable Develop- the fundamental role of transport in fighting Climate ment (APSD) with the World Bank’s Air Transport Change, promoting economic development, trade, and Community of Practice (ATCOP) organized a lunch- tourism, as well as in humanitarian relief. There is a eon event during the 2018 Transforming Transporta- need to increase investment in infrastructure, as well tion event which took place on 11 January 2018, at as leverage the private sector and innovation in sus- the World Bank headquarters. The five presenters of- tainable transport going forward. She highlighted the fered diverse perspectives on the sector and the role it need for safe, gender-responsive, affordable, and ac- plays in promoting sustainable transport and develop- cessible transport. Zubcevic also reminded the audi- ment. ence that the UN Secretary General’s invitation to host another conference on sustainable transport presents Henry Gourdji from the International Civil Aviation Or- an opportunity to take stock of the progress made and ganization (ICAO) described the aviation sector as an build on new developments. important enabler for development, and highlighted the alignment of ICAO’s work with the achievement of Sandagdorj Erdenebileg of the United Nations Office the Sustainable Development Goals (SDGs). The or- of the High Representative for the Least Developed ganization is helping to address 15 of the 17 SDGs. Countries, Landlocked Developing Countries and For example, to achieve SDG11 on Sustainable Cities Small Island Developing States (OHRLLS) highlighted and Communities and to “make cities and human set- the key challenges faced by these vulnerable groups tlements inclusive, safe, resilient and sustainable,” of countries. Notably, the high scale of investment adequate airport planning and urban development are needed for infrastructure development, maintenance essential. ICAO has signed an MOU with UN Habitat and replacement of fleet, and upgrading of terminals. to further this objective. Gourdji underlined the need to At the same time, there is a trend in many of these feature air transport in national development plans to countries towards increasing passenger growth that

has led to positive modernization projects. The gap dyke also highlighted that although the conversation between these vulnerable countries and the rest of thus far has been largely dominated by land transport, the world remains. It is necessary for the international going forward, we need to think across all modes of community to recognize that the SDGs can only be transport – and aviation is a key part of this. achieved if the most vulnerable countries succeed. Haldane Dodd of Air Transport Action Group (ATAG) Secondly, more resources need to be devoted to avi- presented the wider benefits of the aviation sector ation, and initiatives such as Sum4All are essential for and given its contribution to the SDGs, it should be this. seen as an imperative by governments and aviation Nancy Vandyke of the World Bank highlighted the im- businesses world over. He drew on the notion of air- portance of air transport under the Sustainable Mobili- port influence contours, the idea that airports can ty for All (Sum4All) initiative, with the aim to make mo- strongly influence surrounding businesses, communi- bility equitable, efficient, safe, and clean. Thus far, the ties, cities, and countries across a range of sustaina- transport sector broadly did not have a unifying voice ble advancements and initiatives. on what it wanted to achieve (there is no dedicated

SDG for transport). Since COP21, Sum4All has sought to bring all stakeholders and evidence togeth- er, culminating in a recently published a report. Van-

WORLD BANK STAFF AIR TRAVEL The Bank has maintained an evaluation by American Express for Bank staff in Fis- tool for assessing risks associated with air cal Year 2017 (from HQ), representing a travel for mission travel since 2008. The decrease in traveling by 0.4 percent com- air carrier advisory system developed by pared to Fiscal Year 2016. The majority of the Bank’s General Services Department flights booked were with airlines consid- and Air Transport team was launched in ered to be “Good to fly”. This data does FY2011. Airline ratings/risk are based on not capture trips arranged in the regions. the following criteria: Risk Criteria: Travelers should be aware that surface 1. Serious accident in the last 3 years transportation may not always be possible (defined as any incident that results in in- or may represent more risks than air travel jury or death of a passenger, or substan- tial damage to the aircraft) in some client countries. The advisory 2. Registered in a country with poor over- team continues to provide on-demand as- sight (based on ICAO safety audit) sessments and safety advice for opera- 3. A flag of convenience airline (an airline tional staff. that is registered and maintained in a Contact persons are Shruti Vijayakumar at country other than where it operates) 4. Use of aircraft over 20 years old [email protected] and Ndeye Overall there were 193,686 flights booked Anna Ba at [email protected]

All airlines that are industry certi- fied by having passed an IATA Good to fly. The Bank has no objection to using IOSA audit, unless subsequent 1 these airlines. safety experience indicates a safe- ty problem.

All airlines that though they are not industry certified are either li- censed by a country with an FAA Good to fly. The Bank has no objection to using 2 IASA rating of Category 1, or are these airlines. known to the Bank as safe carri- ers.

3a. Airlines that do not qualify for Category 1 or 2, but have been reviewed by the Bank’s air transport specialist and considered good to fly. 3b. Airlines that have 1 of the 4 risk criteria listed below, or some other safety factor that has been raised by the Bank's air transport specialist. Check All airlines that are not in (1) or (2) to see if there are any viable and safer transport above, or are on any blacklists, or alternatives before selecting this airline for mission 3 are deemed to be unsafe for other travel. reasons. 3c. Airlines with significantly elevated risk and 2 or more of the 4 risk criteria listed below, or some other safety factor that has been raised by the Bank's air transport specialist. Use only for essen- tial missions and only if no viable and safer

transport alternatives are available.

ACI-WBG ANNUAL AVIATION PPPs may provide the necessary financial means for an airport to realize its potential SYMPOSIUM and optimize the efficiency of its infrastructure and operations; potential projects, however, In April 2018, the Bank Air Transport Team should be carefully assessed and the terms of organized the 4th ACI WB Aviation Symposi- returns- and risk-sharing among the parties um on airport PPP, which included a concrete involved should be clear and sustainable in airport PPP discussion on Windhoek airport in the longer run. Session two then focused on Namibia. The event took Place in London, airport traffic forecasting in an uncertain busi- United Kingdom and was the only major Air ness environment. Demand- and supply- Transport Community of Practice (ATCOP) driven forecasts were discussed by the panel- event of FY 2018 and has been co-organized ists who agreed that despite its quantitative with ACI for several years. ACI covers staff methods, forecasting is essentially an art; travel and accommodation cost, and ATCOP moreover, scenario-based forecasts are bet- organizes and moderates the event, including ter fit than point ones in the prevailing sto- the preparation of a Symposium/Conference chastic conditions. Finally, session three en- White Paper. The ACI-WB Aviation Symposi- gaged participants into a Practical Exercise. um recorded 135 participants affiliated primar- Further to a short presentation of real-life air- ily to airport operators and advisory firms; reg- port cases, attendees were grouped in five ulators, financial institutions and other compa- teams to undertake an airport PPP action nies were also represented. Interactive polls plan. Points to address were set by the Mas- were undertaken to capture the audience’s ter of Exercise and teams were assisted and opinion on the main topics of Public Private guided by specialists to prepare and subse- Partnerships (PPPs), global economy, air quent present the action plan for their respec- transport industry and geopolitical instability. tive airport in a “shark tank” context. The ex- Decoupling was apparent in the results of the ercise was much appreciated by the partici- polls, i.e. the audience expressed its expecta- pants, who also voted for the best presenta- tion for solid sectoral growth despite the vari- tion. ous threats emerging at a macro level. The overall feedback of the event was very A wide range of topics were discussed over positive. In particular, the participants felt that three sessions in the Symposium. As in the the topics for next time should include again past, airport PPPs constituted a subject of PPP (theory and practice), but also cover central importance and the theory behind more financial issues. The roundtable layout them was explored in session one from differ- of the Symposium and audience polling fea-

ent angles, i.e. legal, financial and regulatory. tured seemed to work well and generated a

good amount of debate. In order to improve business THE LAKE VICTORIA CHALLENGE development and networking opportunities for dele- gates, other meeting formats should be explored for the following year. For example, a mobile app can be Unmanned aircraft systems (UAS), commonly re- used to prearrange one-to-one sessions, e.g. be- ferred to as drones, are a prime example of emerging tween potential investors and airport/government rep- technologies of this new industrial era. Characterized resentatives seeking a PPP. by significantly lower costs and complexity of prior manned systems, these flying robots have the poten- THE GLOBAL SUSTAINABLE tial to unlocking the lower skies as a mobility re- source. The immediate opportunity for cargo drones AVIATION SUMMIT is to speed up deliveries and connect the excluded; for similar payloads drones can deliver at costs com- From 02 to 06 October 2017, Charles E. Schlum- petitive with motorbikes -- but faster, more direct, less berger (CES), Lead Air Transport Specialist, repre- polluting, and day and night. The medium-term po- sented the Bank as speaker at the Global Sustaina- tential is that the shift to electric drone technology will ble Aviation Summit (GSAS), which was organized by enable a greener transportation alternative with costs the Air Transport Action Group (ATAG) of IATA and reducing to 1 cent per kilo per kilometer and zero op- took place In Geneva, Switzerland. ATAG released a erating emissions. new report at the GSAS which was called “Flying in The Lake Victoria Challenge (LVC) is envisioned to Formation”. The report is a guide for the air transport be a multi-stakeholder engagement program on UAS industry to help understand the United Nations’ Sus- technologies and services that meet the needs of tainable Development Goals in an aviation context. emerging East African markets. The LVC will demon- The objective of the report is to provide ideas for how strate how a future influenced by UAS will look by companies and partners across the aviation sector showcasing the broader categories of potential use- can build the Sustainable Development Goals cases through a series of flying challenges. The pro- (SDGs) into their own corporate strategies. Notable is gram will include a series of activities leading up to that the aviation sector can address 15 of the 17 and following the main event to create the right ena- SDGs if pursued as a corporate priority. For details bling environment including addressing regulatory, on the report please visit: www.aviationbenefits.org/ infrastructure and traffic management systems SDGs. needs. The program will culminate in the first of its During the GSAS, CES spoke at the ICAO Workshop kind event in Africa, with potential to evolve into a of Aviation Partnerships for Sustainable Develop- regular forum on the state-of-the-art technologies and ment, and addressed aviation related matters of land- services for UAS service provision in Africa. The locked developing countries and small island devel- event aims to catalyze industrial policy and innova- oping states. The WB participation and presentation tion strategy and connect international investment marked the continued cooperation with ICAO of elab- with local innovation in the East Africa region to in- orating on the sustainable development goals of avia- crease rural connectivity through a new mobility and tion, which is the main focus of the WBGs engage- delivery paradigm for African markets. ment in the air transport sector.

about USD 150,000 The Bank’s expected spending for this program in FY 2019 is estimated at USD 350,000 to cover several major events such as the aforementioned October 2018 Trials, After-Action review workshops, user-centric use case definitions, UTM workshop and LVC 2019 planning and Opera- tions Manual development. The World Bank is supporting the regional Govern- ment of Mwanza, Tanzania to design and organize the event in collaboration with international robot- icists, drone industry professionals, aviation regula- tors, air safety experts, supply chain logistics, health and transport specialists. World Bank program deliv- ery is supported by the Korean Green Growth Part- nership under the Climate Technology Innovation Program. As of the end of FY2018, the World Bank The World Bank supported the setting of preparatory had provided Technical Assistance for the carrying actions, design, and to test both the demand from out of the LVC TRIAL & SYMPOSIUM 2018 planned user agencies as well as readiness of authorities to to take place in October of 2018, with the objective to support such an event. This included establishing the run it as a proof concept and technical test in Mwan- Organizing Committee of local authorities and part- za, Tanzania. At least 150 participants are expected ners, conducting site safety assessments and draft- to attend this event. ing of an operation manual, consultation with supply chain and disaster risk management clients on use Contact person is Edward Charles Anderson at case definitions, and outreach to partners to mobilize [email protected] additional support in areas of logistics, health sector, heavy lift, innovation, and regulatory environment. The total financial support from WB in FY 2018 was

Several World Bank staff members are licensed flight to transport two year old Adeline suffering and active pilots, certified by the US FAA and/or from short gut syndrome and her parents from European Aviation Authorities EASA. To remain Carroll County Regional Airport at Westminster, current on their pilot qualifications, they regularly MD, to Boston-Logan International Airport, MA, for fly and undergo required refresher training. The treatment at Boston Children's Hospital. most rewarding way of keeping current is to en- gage in community service by providing free air The WBG’s contribution, in accordance to Staff transportation to people of all ages whose medical Manual 9.10, consisted of one day of administra- needs – evaluation, diagnosis, and treatment – tive leave to carry out this rewarding community can only be met by health care facilities far from service. their homes. Contact person is Charles E. Schlumberger at In the US, the not-for-profit organization Angel [email protected] Flight provides timely travel to patients who cannot withstand traveling long distances by automobile, For more information visit: rail, or bus, or who do not have the financial www.angelflighteast.org means to use suitable alternative transportation. Oftentimes, transport in smaller, private aircraft can better accommodate patients whose condi- tions could worsen if exposed to the re-circulated air on commercial flights, or who need efficient point-to-point transport.

One example of an Angel Flight mission, which was carried out by Charles E. Schlumberger, Lead Air Transport Specialist and Daniel M. Saslavsky, Transport Economist at the World Bank, was a

The Air Transport Sector is expected to This focus may continue decreasing the continue its strong growth in the future WBG air transport portfolio decline on in years. The global spend by consumers and terms of IBRD/IDA financing, while IFC businesses on air transport is expected to could increase its activities on advisory reach USD 919 billion in 2019, up 7.6 per- services and investment financing of pri- cent on 2018 and equivalent to 1.0 percent vate entities. In poorer countries, where of global GDP. Airlines are expected to PPPs are difficult or too early, the WBG will contribute USD 136 billion to government continue to support investments for selec- treasuries in tax revenues in 2019, which tive air transport infrastructure. The main represents a 5.8 percent increase over regional focus continues to be on African 2018. countries, and on several Pacific Island States, which are modernizing their avia- On the long-term, IATA stated that trends tion infrastructure. in air transport suggest passenger numbers could double to 8.2 billion in 2037. The lat- The WBG will continue to address the envi- est update to IATA’s 20-Year Air Passen- ronmental challenges of aviation, given it is ger Forecast anticipates a 3.5% CAGR, the strongest growing emitter of green- resulting in a doubling in passenger num- house gases. The focus of research contin- bers from today’s levels. The short-term ues to be on air transport development in growth forecast is expected to be the Africa. An assessment of infrastructure de- strongest in Asia Pacific and Middle East velopment needs, as well as the question (7.1%), followed by Europe (6.1%) and Lat- on how to best address certain policy is- in America (5.9%). Africa is expected to sues, such as high charges or taxes on the rebound (4.9%), albeit still from a quite low sector or restricting access to protect a base. struggling national carrier, was researched and discussed in cooperation with the Afri- Looking at emerging markets, by 2037, can Development Bank and ECOWAS in Asia-Pacific will see an additional 2.35 bil- FY 2018. lion annual passengers by 2037, resulting in a total market size of 3.9 billion passen- The WB will further develop its policy dis- gers. Its CAGR of 4.8 percent is the high- cussion on air transport liberalization in Af- est, followed by Africa and the Middle East. rica, including on the initiative of the Afri- Africa (CAGR 4.6%) will see an additional can Union of African countries to establish 199 million passengers for a total market of single air transport market. 334 million passengers. This is followed by Finally, maintaining or developing produc- the Middle East, which will grow by 4.4 per- tive partnerships with the air transport in- cent, extra 290 million passengers by 2037 dustry, as well as with bilateral and interna- resulting in a total market size of 501 mil- tional partners, as it is essential for achiev- lion passengers. Latin American markets, ing the development objectives. The WBG finally, will grow 3.6 percent, serving a total has partnerships in air transportation with of 731 million passengers, which is an ad- ICAO, ACI, IATA, as well as with multina- ditional 371 million passengers annually. tional and regional development banks. Given the above-mentioned expected growth of the air transport sector, including its economic opportunities for emerging countries, but also given some expected challenges, the WBG will continue to sup- port the development of air transportation in selected client countries. However, the development approach increasingly fo- cused at policy measures that facilitate the development of the sector by the participa- tion of the private sector, and to a lesser extent, direct investments by the WBG. This should be achieved by applying the principles of the “Cascade Approach” which facilitates the mobilization of private fund- ing for the expansion of necessary infra- structure, for example by establishing PPPs for major airport infrastructure pro-

jects.

Photography Credits:

• Page 26, Courtesy of Heinrich C. Bofinger • Page 52, World Airport Codes, photo of Fascene by Moti Dolev • Page 53, Lima Airport’s Official Website • Page 54 top picture, Enfidha Airport’s Official Website, Photo Gallery • Page 54 bottom picture, Enfidha Airport’s Official Website, Photo Gallery • Page 57, Norman Manley International Airport’s Official Website, Photo Gallery • Page 58, Official Website of the firm that designed the Norman Manley International Airport’s signage and wayfinding, http://entro.com/project/norman-manley-international-airport/ • Page 59, Queen Alia International Airport’s Official Website • All other images belong to WBG or contributors to this report