Document of The World Bank FOR OFFICIAL USE ONLY
Public Disclosure Authorized Report No: ICR00005473
IMPLEMENTATION COMPLETION AND RESULTS REPORT
IDA‐H9140 TF‐17019 IDA‐58050 IDA‐D4570
ON A
Public Disclosure Authorized CREDIT/GRANT
IN THE AMOUNT OF SDR 30.63 MILLION
(US$ 44.12 MILLION EQUIVALENT)
TO THE
Public Disclosure Authorized INDEPENDENT STATE OF SAMOA
FOR THE
SAMOA AVIATION INVESTMENT PROJECT June 28, 2021
Transport Global Practice Public Disclosure Authorized East Asia And Pacific Region
CURRENCY EQUIVALENTS
Exchange Rate Effective, December 31, 2020
Currency Unit = Samoan Tala (WST) WST 2.59 = US$1 US$ 1.44 = SDR 1
FISCAL YEAR July 1 ‐ June 30
Regional Vice President: Victoria Kwakwa Country Director: (Acting) Paul Vallely Regional Director: Ranjit J. Lamech Practice Manager: Almud Weitz Task Team Leader(s): Noroarisoa Rabefaniraka, Nana S R H Soetantri ICR Main Contributor: Nana S R H Soetantri
ABBREVIATIONS AND ACRONYMS
AF Additional Financing AGL Airfield Ground Lighting AGO Attorney General’s Office APW Faleolo International Airport ARFF Airfield Rescue and Fire Fighting ATC Air Traffic Control Equipment CAD Civil Aviation Division CASA Civil Aviation Safety Authority CBA Cost‐benefit analysis (CBA) CEMP Contractor’s Environmental Management Plan CESMP Contractor’s Environmental and Social Management Plan China EXIM Bank Export‐Import Bank of China CMA Continuous Monitoring Approach CPS Country Partnership Strategy CoC Codes of Conduct COVID‐19 Coronavirus Disease 2019 D&S Design and Supervision DA Designated Account DSA Debt Sustainability Analysis EI Effective Implementation EIB European Investment Bank EIRR Economic Rate of Return EMP Environmental Management Plan GBV Gender‐Based Violence GDP Gross Domestic Product GoS Government of Samoa GRM Grievance Redress Mechanism HIV Human Immunodeficiency Virus IA Implementing Agency IAM Infrastructure Assets Management Project ICAO International Civil Aviation Organization IDA International Development Association IESMP Integrated Environmental and Social Management Plan IPSAS International Public Sector Accounting Standard M&E Monitoring and Evaluation MALIAT Multilateral Agreements on the Liberalization of International Air Transport MNRE Ministry of Natural Resources and Environment MOF Ministry of Finance MWTI Ministry of Works, Transport and Infrastructure NPV Net Present Value NZCAA New Zealand Civil Aviation Authority PAIP Pacific Aviation Investment Program PASO Pacific Aviation Safety Office PDO Project Development Objective PESMP Project Environmental and Social Management Plan PIASA Pacific Islands Air Services Agreement PICASST Pacific Islands Civil Aviation Safety and Security Treaty PICs Pacific Island Countries PRIF Pacific Regional Infrastructure Facility PUMA Planning and Urban Management Agency PST Project Support Team SAA Samoa Airport Authority SAIP Samoa Aviation Investment Project SCG Shanghai Construction Group SDR Special Drawing Rights SDS Strategy for the Development of Samoa STEP Systematic Tracking and Exchanges in Procurement TAL Tonga Airport Limited TFSU Technical and Fiduciary Services Unit TISCD Transport and Infrastructure Sector Coordination Division ToC Theory of Change USOAP Universal Safety Oversight Audit Program VAC Violence Against Children VFR Visiting Friends and Relatives VSAT Very Small Aperture Terminal WST Samoan Tala
TABLE OF CONTENTS
DATA SHEET ...... 1
I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ...... 7
A. CONTEXT AT APPRAISAL ...... 7
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION ...... 14
II. OUTCOME ...... 16
A. RELEVANCE OF PDOs ...... 16
B. ACHIEVEMENT OF PDOs (EFFICACY) ...... 17
C. EFFICIENCY ...... 20
D. JUSTIFICATION OF OVERALL OUTCOME RATING ...... 23
E. OTHER OUTCOMES AND IMPACTS (IF ANY) ...... 23
III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ...... 25
A. KEY FACTORS DURING PREPARATION...... 25
B. KEY FACTORS DURING IMPLEMENTATION ...... 25
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME 26
A. QUALITY OF MONITORING AND EVALUATION (M&E) ...... 26
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ...... 27
C. BANK PERFORMANCE ...... 29
D. RISK TO DEVELOPMENT OUTCOME ...... 30
V. LESSONS AND RECOMMENDATIONS ...... 30
ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ...... 34
ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ...... 43
ANNEX 3. PROJECT COST BY COMPONENT ...... 46
ANNEX 4. EFFICIENCY ANALYSIS ...... 47
ANNEX 5. BORROWER, CO‐FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS49
ANNEX 6. SUPPORTING DOCUMENTS ...... 81
The World Bank Samoa Aviation Investment Project (P143408)
DATA SHEET
BASIC INFORMATION
Product Information Project ID Project Name
P143408 Samoa Aviation Investment Project
Country Financing Instrument
Samoa Investment Project Financing
Original EA Category Revised EA Category
Partial Assessment (B) Partial Assessment (B)
Organizations
Borrower Implementing Agency
Independent State of Samoa Samoa Airport Authority, Ministry of Finance
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The World Bank Samoa Aviation Investment Project (P143408)
Project Development Objective (PDO)
Original PDO The project development objective is to improve operational safety and oversight of international air transport and associated infrastructure.
FINANCING
Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing
25,000,000 25,000,000 22,708,906 IDA‐H9140
300,000 299,100 299,100 TF‐17019
16,620,000 16,620,000 16,935,370 IDA‐58050
2,200,000 2,199,865 2,198,325 IDA‐D4570 Total 44,120,000 44,118,965 42,141,701
Non‐World Bank Financing 0 0 0 Borrower/Recipient 6,250,000 0 0 Total 6,250,000 0 0 Total Project Cost 50,370,000 44,118,965 42,141,702
KEY DATES
Approval Effectiveness MTR Review Original Closing Actual Closing 06‐Mar‐2014 08‐May‐2014 28‐Apr‐2017 30‐Jun‐2019 31‐Dec‐2020
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The World Bank Samoa Aviation Investment Project (P143408)
RESTRUCTURING AND/OR ADDITIONAL FINANCING
Date(s) Amount Disbursed (US$M) Key Revisions 06‐Jun‐2016 1.77 Additional Financing Change in Results Framework Change in Components and Cost Change in Financing Plan Change in Legal Covenants Change in Implementation Schedule 18‐Apr‐2019 26.50 Additional Financing Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Change in Institutional Arrangements Change in Procurement 22‐Mar‐2020 39.49 Change in Loan Closing Date(s)
KEY RATINGS
Outcome Bank Performance M&E Quality Highly Satisfactory Satisfactory Modest
RATINGS OF PROJECT PERFORMANCE IN ISRs
Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 09‐May‐2014 Satisfactory Satisfactory .10 02 16‐Dec‐2014 Satisfactory Moderately Satisfactory .24 03 30‐Apr‐2015 Satisfactory Moderately Satisfactory .57 04 10‐Aug‐2015 Satisfactory Moderately Satisfactory 1.02
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The World Bank Samoa Aviation Investment Project (P143408)
05 25‐Jan‐2016 Satisfactory Moderately Satisfactory 1.54 06 13‐Aug‐2016 Moderately Satisfactory Moderately Satisfactory 1.77 07 21‐Feb‐2017 Moderately Satisfactory Moderately Satisfactory 2.76 08 23‐Jun‐2017 Moderately Satisfactory Moderately Satisfactory 3.18 09 30‐Nov‐2017 Satisfactory Satisfactory 4.71 10 19‐Apr‐2018 Satisfactory Satisfactory 10.85 11 02‐Nov‐2018 Satisfactory Satisfactory 15.45 12 04‐May‐2019 Satisfactory Satisfactory 26.50 13 23‐Jul‐2019 Satisfactory Satisfactory 27.65 14 19‐Dec‐2019 Satisfactory Satisfactory 38.25 15 22‐Jun‐2020 Satisfactory Moderately Satisfactory 39.91 16 07‐Jan‐2021 Satisfactory Moderately Satisfactory 41.84
SECTORS AND THEMES
Sectors Major Sector/Sector (%)
Transportation 100 Public Administration ‐ Transportation 8 Aviation 92
Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%)
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The World Bank Samoa Aviation Investment Project (P143408)
Economic Policy 46
Trade 46
Trade Facilitation 46
Private Sector Development 46
Regional Integration 46
Finance 1
Finance for Development 1
Disaster Risk Finance 1
Public Sector Management 6
Public Administration 6
Transparency, Accountability and Good 6 Governance
Urban and Rural Development 3
Disaster Risk Management 3
Disaster Response and Recovery 1
Disaster Risk Reduction 1
Disaster Preparedness 1
ADM STAFF
Role At Approval At ICR
Regional Vice President: Axel van Trotsenburg Victoria Kwakwa
Country Director: Franz R. Drees‐Gross Paul Vallely
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The World Bank Samoa Aviation Investment Project (P143408)
Director: John A. Roome Ranjit J. Lamech
Practice Manager: Michel Kerf Almud Weitz Noroarisoa Rabefaniraka, Nana Task Team Leader(s): Christopher J. De Serio S R H Soetantri ICR Contributing Author: Nana S R H Soetantri
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The World Bank Samoa Aviation Investment Project (P143408)
I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES
A. CONTEXT AT APPRAISAL Context
1. Samoa is a small South Pacific country comprised of the islands of Upolu – which hosts the capital Apia – Savai’i, and seven smaller islands. More than 75 percent of its population of 186,000 lives on Upolu with 20 percent in Apia. Samoa’s inhabitants are 90 percent Polynesian, around seven percent Euronesian, and the balance European or of mixed Asian‐Polynesian descent.
2. Samoa is located in the “cyclone belt” near the earthquake generating “Tonga Trench”. Most of the population (some 80 percent) live on a narrow coastal strip surrounding the two main islands. Since 1990, there have been five extreme cyclone events (hurricane strength), four of which caused massive damage, and one major tsunami. Samoa’s small and compact surface area (total of 2,820 sq. km) makes it particularly vulnerable to natural disasters and the impact of each event is likely to affect a large proportion of the country and population.
3. Per capita GDP in 2019 was US$4,324. The service sector contributed some 68 percent of GDP; the primary sector, for its part, contributed some 10 percent of GDP. Despite its small size relative to GDP, one third of Samoa’s employment base is in agriculture. Although it has the smallest Pacific exclusive economic zone, fishing is also an important source of employment and livelihood. Remittances, averaging around 24 percent of GDP over the last 10 years, are a key contributor to economic livelihoods.
4. At 25 percent of GDP, tourism makes a significant contribution to Samoa’s economy. The vast majority of these visitors arrive by air. In 2019, accommodation and restaurant services directly engaged almost six percent of the employed population in the island of Upolu, and almost four percent in Savai’i. Visitor demand for agricultural, fishing and other food products, crafts, internal transport and other services underline the importance of tourism to the country and its people, and thus of efficient and functional aviation services to facilitate tourism.
5. COVID‐19 has hit Samoa’s tourism sector hard, just as it was recovering from a measles outbreak. In November 2019, a measles outbreak claimed 83 lives, infected around 2 percent of the population, and had a severe economic impact on tourism and services. In March 2020, the Government acted quickly to declare a state of emergency in response to COVID‐19, locking down its international borders, and imposing social distancing measures and internal travel restrictions. On November 19, 2020, Samoa recorded its first potential case of COVID‐19. The case was detected at the border and isolated while test samples were sent to New Zealand for confirmation. At present, Samoa still has no recorded community transmission of COVID‐19.
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The World Bank Samoa Aviation Investment Project (P143408)
Sectoral and Institutional Context
6. Aviation plays a vital economic and social role in Samoa’s development. Most visitors, tourists and the crucial visiting friends and relatives (VFR) segment, rely on air transport. Furthermore, air connectivity is essential in meeting Samoa’s educational and medical needs which also enables effective regional integration with its Pacific neighbors. Its geographic distance from main markets means that efficient air services are integral to the Government of Samoa’s (GoS) drive to increase exports, especially for low volume and high value items that depend on fast delivery.
7. Samoa’s remoteness, limited size, coastal settlement patterns and susceptibility to a host of natural disasters, makes aviation crucial for effective disaster risk management, particularly in the delivery of relief aid. In emergency situations, air transport can effectively and efficiently bring in humanitarian cargo and aid workers to reach cut‐off communities. Aircraft and helicopters also have the advantage of being able to survey large areas, scan affected zones for victims and assess damage on the ground. Ensuring the availability of resilient and appropriate air transport infrastructure is therefore critical.
8. The Samoa Airport Authority (SAA) operates Faleolo International Airport, the main international gateway and the Asau and Maota airports on the island of Savai’i. Another small international airport, Fagali’i, is operated by the state‐owned airline Polynesian Airlines and services primarily the short‐distance international connection with American Samoa, in addition to limited domestic flights. Aerodrome upgrades at Faleolo International Airport were completed in 2000 under IDA Samoa Infrastructure Assets Management Project (IAM, P052293) to comply with International Civil Aviation Organization (ICAO) operational standards. The level of IAM investment was anticipated to meet a 10‐year service life before further rehabilitation would be required.
9. Prior to the COVID‐19 pandemic there were three national airlines that operated scheduled and non‐scheduled domestic and international air services: Polynesian Airlines; Virgin Samoa, which is a joint venture between the GoS, Virgin Blue, Aggie Grey’s Hotel, and Virgin Australia; and privately‐owned Samoa Air. In addition, Air New Zealand, Fiji Air (Air Pacific) and Air Caledonia have been granted Foreign Air Operator Certificates for flights to and from Samoa.
10. Air transport in Samoa suffers from the challenges facing all smaller Pacific island countries (PICs): long routes with thin traffic and low freight levels constrain airline and airport profitability and place high demand on professional management and regulations in an environment where highly specialized human resources are not readily available.
11. The aviation sector regulatory oversight is carried out by the Civil Aviation Division (CAD) of the Ministry of Works, Transport and Infrastructure (MWTI). Though Samoa does not have an independent Civil Aviation Authority, it has been at the forefront of PICs in introducing sector reforms in the aviation sector that aim to strengthen aviation safety and security:
(i) As a signatory to the Pacific Islands Air Services Agreement (PIASA), Samoa’s decision to ratify the agreement in 2007 demonstrated a commitment to fostering an enabling environment that can promote regional market competition through potential new service routes. Samoa is also a party to the Multilateral Agreements on the Liberalization of International Air Transport (MALIAT) and the Pacific Islands Civil Aviation
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The World Bank Samoa Aviation Investment Project (P143408)
Safety and Security Treaty (PICASST). Samoa has accepted the 2009 amendment to PICASST expanding the Pacific Aviation Safety Office (PASO) functional jurisdiction.
(ii) Pursuant to PICASST in 2008, Samoa entered into a Service Level Agreement with PASO for safety and security oversight, in addition to the agreement with New Zealand Civil Aviation Authority (NZCAA) signed in 2006.
(iii) Airport regulation and airport management were separated in 1984, with CAD in MWTI and SAA performing these functions respectively. A comprehensive Airport Authority Act was enacted in 2012, which confirms the separation of airport operations, air traffic control and aviation security provided by SAA from safety and security regulatory functions performed by CAD. This act grants SAA the right to impose and collect fees, charges and levies for the provision of services.
(iv) Airport operations have been commercialized under SAA with strengthened financial management, business planning and accounting systems. Despite an unfunded public service obligation to maintain and operate two domestic airports, SAA has finally been able to turn a modest profit in 2012.
12. The Samoa Aviation Investment Project (SAIP) was part of the Pacific Aviation Investment Program (PAIP)1,. a regional series of projects designed to support PICs to address commonly shared challenges in their aviation sectors. PAIP aims to provide an impetus for harmonization of aviation policy and standards, as well as safety and security infrastructure to all participating countries and thereby benefiting the Oceania region. Samoa’s participation in PAIP was upon the Government’s commitment to meet the following program criteria:
(a) Implement PASO’s recommended minimum regular scheduled safety and security oversight program for the country
(b) Implement the separation of the policy and regulatory functions from airport operations
(c) Implement at least an AU$5 equivalent ‘safety and security levy’ for departing international passenger by September 30, 2014.
1 PAIP included projects in Kiribati, Tonga, and Tuvalu (2011); Samoa (2014); Vanuatu (2015); and Solomon Islands (2018).
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The World Bank Samoa Aviation Investment Project (P143408)
Figure 1: Pacific Aviation Investment Program (PAIP)
13. Most Pacific island countries are small with limited human capacity and no experience in implementing major infrastructure projects. As these countries faced similar challenges in their aviation sectors, a regional approach was adopted to create momentum for harmonization of aviation policy and standards, as well as safety and security infrastructure with clear benefits to participating countries and the region as a whole. As a regional program, PAIP was able to leverage significant regional IDA. Through PAIP, the World Bank, other donor partners, and participating PICs would have invested over US$300 million between 2012 and 2024 to improve the infrastructure at twelve airports in six countries across the region (see Figure 1). For the successful delivery of the program, the PAIP Technical and Fiduciary Services Unit (TFSU) was established to act as the central team leading all aspects of fiduciary processes (procurement and financial management) and overall PAIP implementation supported by Project Support Teams (PST) at national level (see Figure 2).
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The World Bank Samoa Aviation Investment Project (P143408)
Figure 2 Technical and Fiduciary Services Unit (TFSU) structure and relationship to other PAIP projects
TAL Technical Program Director Support (FT, remote)
Program Manager (FT, HQ) TAIP Project Manager
Lead Procurement Finance Manager Specialist Contracts Manager Team Assistant Specialist Consultants (FT, HQ) (PT, remote) (FT, HQ) (FT, HQ)
PASO Project Snr Project Procurement Contracts Infrastructure / Coordinator Accountant Specialist Administrator Construction (FT, HQ) (FT, HQ) (FT, HQ) Technical Specialist
Periodic Procurement Specialist ADS-B Technical Specialist (PT, remote) TvAIP Project Procurement Manager Officer (FT, HQ) Policy/Regulatory Contracts/Finance Administrative Procurement Manager Assistant Officer (FT, HQ) Others programmed as necessary (safeguards, procurement, technical needs)
SAIP Project KAIP Project Manager Manager
Project Administrative Snr Project Accountant Team Assistant Assistant Officer
14. PAIP, and SAIP as part of it, was the first regional investment in the Pacific and, as highlighted in the World Bank’s Regional Partnership Framework for nine Pacific Island Countries for FY17‐21 (Report# 100997‐EAP) (PIC9 RPF)2, regional approaches allow Pacific Island countries to “benefit from economies of scale through bulk procurement, centralized implementation arrangements, and WBG resources can effectively be deployed to support multiple countries”. Spill‐over benefits were also created such as south‐south learning opportunities, safer and more connected aviation sectors across participating countries, and the creation of a project structure and framework, into which new countries could join.
Theory of Change (Results Chain)
15. At the time of project appraisal, there was no Theory of Change (ToC) in the Project Appraisal Document. However, a ToC was constructed as part of the second Additional Financing (AF2) and was used to assess the project outcome at closing, as shown in Figure 3.
2 The nine countries covered under the PIC9 RPF include Federated States of Micronesia, Kiribati, Nauru, Palau, Republic of the Marshall Islands, Samoa, Tuvalu, Tonga and Vanuatu.
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The World Bank Samoa Aviation Investment Project (P143408)
Figure 3: SAIP Theory of Change
Component Activities Output PDOs/Outcome Impact
Installation of new navigation aids International airport Navigation and safety infrastructure Provision of Very Small aids fully operational Modernization of air investments Aperture Terminal traffic management (VSAT) secure communications system Rehabilitation of APW Aviation sector reform Rehabilitation of airport pavements State requirement for safety measured Improved economic and training runways, taxiways, and growth and reduced aprons by USOAP reaches global ICAO average poverty through Acquisition of safety and Achievement of fire improved international security equipment safety standards at APW air transport in: Strengthening airport •Operations operation and Installation of energy Regulatory management efficient equipment certification of the •Oversight capacity Safety and security Successful Arport •Infrastructure oversight audits implementation of agreed training plan Development of Implementation of strategic business plan regional safety and for SAA SAA publishes periodic Project management security levy for report on GRM departing international Training for SAA and resolution rates CAD staff passenger
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Project Development Objectives (PDOs)
16. The PDO, as stated in the Financing Agreement, was to improve operational safety and oversight of international air transport and associated infrastructure.
Key Expected Outcomes and Outcome Indicators
17. At appraisal, the PDO was measured through four outcome indicators, which were applied across all PAIP projects: i) regulatory certification of safety and security at project airports; ii) state requirements for safety and security to reach global ICAO3 average; iii) modernization of air traffic management; and iv) implementation of a regional safety and security levy for departing international passengers.
Components
18. The total project cost at appraisal was estimated to be US$38.64 million, including contingencies. This was financed by: a. A grant of US$25 million equivalent from the International Development Association (IDA)4, b. A European Investment Bank (EIB) concessional lending of US$8.34 million equivalent5 c. A Pacific Regional Infrastructure Facility (PRIF) grant contribution of US$0.3 million for purchase of PASO oversight services; and d. Counterpart contribution from GoS in the form of forgone taxed equivalent to approximately US$5 million. See Annex 3 for estimated and actual costs by component.
19. Consistent with the other PAIP projects, SAIP had four components:
20. Component A: Aviation Infrastructure Investments (estimated cost at appraisal US$32.52 million – IDA US$20.76 million; EIB US$7.52 million, GoS US$4.24 million – including contingencies). This component invested in the aviation infrastructure at Faleolo Airport. Activities included i) rehabilitation of airport runways, taxiways, and aprons; (ii) installation of new navigation aids, automatic weather monitoring, safety and security equipment, and air traffic control equipment; (iii) upgrading of generator capacity and installation of energy efficient equipment such as terminal lighting; (iv) provision of water storage tanks; (v) security improvements such as closed circuit television; (vi) upgrading of runway lighting; (viii) provision or upgrading of fire safety equipment; (viii) provision of the VSAT secure communications system; and (viii) provision of the design and supervision consulting services required for implementation of the infrastructure investments.
3 In Samoa an audit was conducted in 2010, which yielded 59 findings and a resulting lack of compliance of 56.43%. At appraisal, it was determined that Samoa was to reach the current global ICAO average of 41.38% under the project 4 Regional IDA accounted for 80 percent of IDA financing. 5 EIB loans were to be complemented by a European Union (EU) Investment Facility for the Pacific (IFP) grant to ensure that the effective interest rate meets IDA non‐concessional borrowing terms. The loan consisted of (a) a loan amount of US$7.52 million applied towards the runway and apron civil works under Component A, and (b) an additional EIB Grant for technical assistance in an amount of US$0.82 million.
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21. Component B: Strengthening Policy and Regulatory Capacity (estimated cost at appraisal US$1.57 million – IDA US$0.69 million; EIB US$0.41 million; PRIF Grant US$0.30 million; GoS US$0.17 million ‐ including contingencies). This component included the provision of technical assistance to SAA and MWTI. The technical assistance included: i) strengthening capabilities for aviation sector management, policy, safety and security oversight; and ii) development of a national aviation policy, and safety and security oversights audit.
22. Component C: Strengthening Airport Operations and Management Capacity (estimated cost at appraisal US$1.58 million – IDA US$0.97 million; EIB US$0.41 million; GoS US$0.21 million ‐ including contingencies). This component was to support activities that will strengthen airport operations and management capacity including: (i) studies to assess the conditions of aviation sectors and airports; (ii) development of a strategic business plan; and (iii) training on aviation policy, management, and operations.
23. Component D: Project Support (estimated cost at appraisal US$2.97 million – IDA US$2.58 million; GoS US$0.39 million ‐ including contingencies). This component was for support required by Samoa. It included technical, advisory and administrative support to SAA, including the PAIP TFSU (a regional project implementation support team), line ministries and associated operation costs and implementation staff costs.
B. SIGNIFICANT CHANGES DURING IMPLEMENTATION
Revised PDOs and Outcome Targets
24. The PDO and PDO level outcome targets were not revised throughout the project.
Revised Components
25. Changes were introduced to project components and intermediate result indicators through two additional financings of US$16.62 million and US$2.2 million, approved by IDA on June 3, 2016 and May 9, 2019, respectively. The first Additional Financing (AF1) was approved primarily due to (i) the need to increase scope of civil works for the terminal and airside’s pavement interface as a result of the Government’s airport terminal expansion project (financed by another donor); and (ii) the Government’s decision to replace EIB financing (about US$8.34 million) with IDA due to more favorable borrowing terms.
26. The second Additional Financing (AF2) was to close the financing gap due to cost overruns to ensure that the project met its PDOs.
27. The end target dates for PDO and intermediate level indicators were also extended twice, with a cumulative extension of 18 months.
Other Changes
28. In 2016, AF1 of US$16.62 million equivalent was approved for the project. The closing dates were not extended as it was anticipated that the grants will be fully disbursed as scheduled. In May 2019, a second AF2 of USD$2.2 million was approved for the project and the closing dates for IDA Grant IDA‐H914‐WS and IDA‐5805‐WS were extended from
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June 30, 2019 to March 31, 2020. In March 2020, the Government requested, and the World Bank approved a further extension to the project closing date to allow additional training program for SAA (under Component C) and CAD staff (under Component B) to be completed. The implementation of this training program was suspended following the declaration of travel restrictions by the Government of Samoa on January 24, 2020 due to the coronavirus (COVID‐ 19) outbreak. As the originally planned training program had been completed, the Government opted to cancel the additional training and focus on addressing policy gaps identified during State Audit in 2010. The training funds were reallocated to contingency and utilized to purchase additional equipment from local suppliers.
Rationale for Changes and Their Implication on the Original Theory of Change
29. The major change to the project was related to the scope of civil works and did not affect the intended result chain. Table 1 below summarizes respective rationale for each component revision.
Table 1. Revised Activities through the Restructuring and Underpinning Rationale
Additional Financing Rationale Costs
AF 1 a. Increase the The GoS decision to construct a new airport terminal building, which US$16.62 million scope of air side pavement included new airbridges, required expansion and strengthening of the works, and accommodate apron and taxiways, reconfiguration of the fuel hydrant infrastructure, an incremental increase to and modifications to airfield drainage. (US$8.28 million) project management costs due to the increase in activities b. Replace the co‐ The GoS decision to replace EIB financing with IDA due to more financing originally favorable borrowing terms. (US$8.34 million) envisaged from EIB
c. Inclusion of Include the requirement of an Integrated Environmental and Social Integrated Environmental Management Plan (IESMP) related to the safeguard association and Social Management between SAIP and the new terminal development project financed by Plan (IESMP) another donor.
AF 2 To cover financial gap due To provide supplemental funds to cover the financing gap resulting US$2.2 million to cost overrun. from the decision to finance the Variation Order 1 (VO1) for apron/runway works using the existing IDA funding sources (original grant and AF I). As a result of using some of the original IDA resources for VO1, other ongoing and planned activities no longer fit into the financing envelope. Total Additional Financing: US$16.82 million
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II. OUTCOME A. RELEVANCE OF PDOs
Assessment of Relevance of PDOs and Rating
30. The economy of Samoa, like other remote and sparsely populated PICs, is highly dependent on air‐transport. Airline services are regular in terms of frequency but limited in terms of numbers. Tourism continues to be a critical economic sector in the country, providing the largest single source of export earnings, approximately five times that of agriculture and fisheries combined, and an estimated 18 percent of employment.6 International airports also provide critical access to health care, education as well as import and export markets in the region. With increasing frequency and severity of natural disasters, having air connectivity is also essential for post‐disaster recovery and support. Given these characteristics, air transport and connectivity are vital for Samoa’s economy and its people and contribute towards the World Bank Group’s twin goals of reducing extreme poverty and boosting shared prosperity in a sustainable way.
31. At the time of preparation, the project was aligned with the Government of Samoa’s Development of Samoa (2012‐2016) and the Bank’s Country Partnership Strategy (CPS) (2013‐2016). At the time of the project’s closing date, the project was still relevant to both country and World Bank strategic documents. The PIC9 RPF highlighted the importance of the aviation sector under Objective 4.2: Increased access to basic services and improved connective infrastructure. It noted that airport infrastructure in many PICs required upgrading to ensure passenger safety, maintain regional connectivity, and promote tourism, and that improving the “operational safety and oversight of international air transport infrastructure…would directly support the development of tourism in the participating PICs”.
32. The Strategy for the Development of Samoa identified four priority areas and fourteen key outcomes to be achieved between the four‐year period from FY2017 to FY2020. In addition, Samoa 2040, which looks at the longer‐ term development agenda for Samoa also discusses the aviation sector and its contribution to inclusive and sustainable growth. It notes the importance of balancing the high cost of investments with the dispersed nature of communities, and that being strategic about airports will be important. The project objectives are aligned with the Strategy for Development of Samoa and Samoa 2040 outcome: to accelerate sustainable development and to broaden opportunities for all and to transform Samoa towards a higher growth path in the next 20 years.
33. Rating. Based on the above, the overall relevance of the project is rated High.
6 Tourism: Pacific Possible Background Paper No. 4 (http://www.worldbank.org/pacificpossible)
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B. ACHIEVEMENT OF PDOs (EFFICACY)
Assessment of Achievement of Each Objective/Outcome
34. As stated above, the Project’s development objective was to improve the operational safety and oversight of international air transport and associated infrastructure. Throughout the project, PDO‐level indicators remained unchanged and will form the basis for this assessment. In this section, the PDO has been broken into its two objectives, however it should be noted that several activities and investments contributed to both safety and oversight.
PDO (i): Improve the operational safety of international air transport and associated infrastructure.
35. The project’s objective of improving the operational safety of international air transport infrastructure was substantially achieved. The relevant PDO indicators for this objective were achieved, including i) Regulatory certification of safety and security at project airports, measured through compliance of the project’s airport in accordance with ICAO standards, and ii) Modernization of Air Traffic Management.
36. Safety and security of Faleolo airport has improved through infrastructure investments, capacity building and policy updates undertaken through the project. The Faleolo Airport, Samoa’s main aviation gateway, is currently certified. This indicates that the aerodrome design and operations at Faleolo, based on the inspection carried out by SAA with support from PASO, are now compliant with the safety and security standards required by Samoa Civil Aviation Rules (part 139 and part 172) and applicable portions of ICAO Annex 14. One of the most significant safety improvements came through the rehabilitation of the runways, taxiways and apron. At project appraisal Faleolo runway had not been resurfaced in 14 years. Although pavement works were done to a high standard, some fatigue cracking was beginning to emerge and there was a loss of structural capacity which impacted on the size and weight of aircraft operating into the airport. Given future air traffic demands, this was also important to allow wide‐bodied aircraft to land.
37. The runways, taxiways and apron were successfully upgraded through the project. Part of this work involved the apron expansion at Faleolo airport of approximately 9,500 square meters, creating a total surface area of approximately 41,500 square meters and the construction of a new base and asphaltic surface. This allowed larger (Code E) aircraft, such as Air New Zealand's B777 and B787 to safely park on the apron while still allowing other aircrafts to enter, park and exit. The paving contract for Faleolo Airport was the first major Design and Build contract undertaken under the PAIP; it was considered a risky decision to go with this approach, but the contractor successfully completed the works on time and with no cost overrun. The pavement grooving works to meet the runway friction requirement (a design and build performance standard) was carried out at no additional cost, whereas under a traditional contract, this would have most likely required a contract variation. The high‐quality performance of the supervision consultant has also been a major factor in the timely and successful completion of the runway paving works and in correcting flaws in the apron works.
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38. The modernization of Air Traffic Management included two elements which also had regional benefits: (i) Very Small Aperture Terminal (VSAT) which is a two‐way secure satellite communications system that enables regional Civil Aviation Authorities and air transport organizations to communicate essential safety and security communications in a reliable, secure and timely manner; and (ii) Automatic Dependent Surveillance Broadcast (ADS‐B) which is a satellite‐ based technology for aircraft monitoring which enhances safety by making aircraft visible, in real time, to air traffic control and other appropriately equipped ADS‐B aircraft.
39. By project completion, the regional VSAT network was fully operational, and the airport equipped with ADS‐B. The project also financed the installation of ADS‐B transmitters in all aircraft on the Samoa domestic registry to ensure that they could be effectively monitored.7 The ADS‐B technology has enabled Samoa to essentially bypass radars, providing the country with a more advanced technology at one tenth of the cost.8 It also facilitates better communications with other airports in the region, more efficient flight routing, which saves fuel and reduces greenhouse gases. As part of the training SAA training plan, relevant staff were trained in the effective use of this technology and equipment.
Figure 4 (L‐R clockwise): Fire Rescue Tender R3 in Action, Depiction of ADS‐B Traffic at APW, VHF Console for the Tower, and Completed runway pavement
7 Most new international aircraft have ADS‐B installed already. 8Connections leaflet: http://documents.worldbank.org/curated/en/172501488864629403/pdf/113199‐BRI‐ TransportICTNewsletter‐PUBLIC.pdf
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40. The supply and installation of Navigation Aids, Airfield Ground Lighting (AGL), Power Systems and Air Traffic Control Equipment (ATC) were completed in March 2020, allowing for modernized communication services that improves operational safety. Two refurbished fire rescue vehicles were commissioned in April 2018. Faleolo airport now complies as an Airfield Rescue and Fire Fighting (ARFF) Category 10 airport, as required based on aircraft type and operational requirements. The upgrade of the AGL included replacement of low intensity runway lighting with high intensity energy efficient LED runway lights to improve operational safety for night operations. Safety screening equipment such as closed‐circuit TV (CCTV) was also installed at all parts of the Faleolo terminal building, thereby increasing the level of security. These provided greater controls for arriving and departing passengers, as well as security controls for terminal access and management.
41. A Training Needs Assessment was undertaken. Many of these trainings were related to safety and security such as fire fighter training, air traffic controllers and maintenance staff. SAA staff were able to benefit from training provided by the Tonga Airport Limited (TAL) with TAL staff travelling to Samoa to train SAA staff on safety aspects. This regional approach promoted the ability of countries to share knowledge and expertise, supporting the wider sustainability of the investments.
PDO (ii): Improve the oversight of international air transport infrastructure.
42. The project’s objective of improving the oversight of international air transport infrastructure was substantially achieved. A key investment in sustainable oversight that provides regional benefits was the development of an Aviation Sector Strategy for Samoa as well as a Master Plan and business strategy for SAA. The Aviation Sector Strategy provided an overview of the regulatory environment in Samoa, the role of air transportation, the current state of aviation infrastructure as well as challenges of regulatory oversight faced in‐country. The Master Plan and business strategy focused on SAA’s operations and management capacity including: a 30 year planning horizon; travel demand forecasting for passenger/freight aircraft movements for both international and domestic services; location of critical operational infrastructure that meets international service standards and regulatory compliance requirements (such as future aerodromes, terminal design and capacity requirements, aircraft operator requirements); and recurrent expenditures for airport operation (e.g. utilities such as water, sewer, power, communications). This single, shared aviation sector development plan is to align long‐term infrastructure action with national priorities, and guide decisions on the timing, location and system elements requiring investment.
43. The PDO level indicator ‘Implementation of a regional Safety and Security Levy (SSL) for departing international passengers’ was fully achieved. By project closure WST11 (about AUD5.60) was collected from each departing passenger. Revenue from the SSL is allocated to MWTI and Ministry of Finance (MOF) (59 percent), SAA (39 percent), and airlines as their administrative fees (2 percent). Since being initiated in October 2015, more than WST6 million (approx. US$2.4 million) has been received by the Government. Collected funds provide key resources for ongoing oversight of the aviation sector’s safety and security investments. Revenue is used for the maintenance and upgrading of safety and security equipment, and other related activities. CAD is responsible for MWTI’s portion of the SSL and fees have been used for the technical assistance and preparation of manuals and reports necessary for ICAO audits; implementation of ICAO’s standard and recommended practices; and Samoa’s payments to PASO. SAA have used their
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portion for maintaining the equipment, remunerating the staff who run it and implementing training plans. A key strength of the Samoa SSL system is the strict procedural process that has been put in place to protect these funds from being used for other purposes beyond what they are intended for.
44. PDO level indicator: State requirements for safety and security reaching global ICAO average was substantially achieved. This indicator was measured through the ICAO Universal Safety Oversight Audit Program (USOAP), where countries are given an ‘Effective Implementation’ (EI) score out of 100. USOAP audits focus on a country’s capability in providing safety oversight by assessing whether they have effectively and consistently implemented the critical elements of a safety oversight system. The audit usually covers eight areas.9
45. The PDO indicator was designed to measure evidence in “lack of effective implementation”. The lower the score the better. The findings baseline in Samoa was set at 56.3 percent, and the findings target was set at 41.38 percent. At the time of appraisal regional projects required consistent PDO‐level indicators, which was the reason this was selected as a way to harmonize the results framework.
46. Based on the ICAO USOAP Continuous Monitoring Approach (CMA) Online Framework, which was measured in September 2020, Samoa now has an Effective Implementation (EI) Score of 47.8 percent.10 Even though this score is slightly below the intended target, it is still a significant improvement, considering the current travel restrictions that are in place requiring the majority of the updates to be done offline. The actual EI percentage on the USOAP CMA for Samoa and every member state of ICAO can only be changed when it has undergone a Validation Mission by ICAO (scheduled for 2022 for Samoa). Samoa is the only PAIP country to have updated their USOAP scores, even on a temporary basis, after cross‐checking with autonomous third‐party assessments. The USOAP consultants worked remotely with CAD with the support of PASO between May and August 2020 (Annex 8). They also benefited from technical assistance received from Civil Aviation Safety Authority (CASA) PNG in January 2020.
Justification of Overall Efficacy Rating
47. The overall efficacy rating is High. As described above, most of the PDO‐level indicators have been met. The one outstanding indicator (ICAO Effective Implementation) has been delayed and is outside of the project’s ability to control.
C. EFFICIENCY
48. An ex‐post economic analysis was conducted using a cost‐benefit analysis (CBA) approach to evaluate the economic internal rates of return (EIRR) of the activities completed at project closure. It follows the same methodology used at the appraisal stage and focuses on the economic appraisal of Component A11, for which investments amounted to 84.1 percent of project costs at appraisal. Estimated costs at appraisal, additional costs at Additional Financing, and actual costs by component are compared in Table 2 below.
9 These include: Legislation; Organization; Licensing; Operations; Airworthiness; Accident Investigation; Air Navigation Services, and Aerodromes. 10 ICAO OLF EVIDENCE SEPT 2020 11 Civil works.
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Table 2: Estimated vs Actual Costs, by Component
Original AF1 +AF2 Actual Estimated Estimated Cost Components Cost (US$m) Cost (US$m) (US$m) Component A: International Airport Infrastructure 32.52 11.55 44.07 Investments Component B: Aviation Sector Reform and 1.57 0.15 1.72 Training Component C: Strengthening Airport Operations 1.58 0.08 1.66 and Management Capacity Component D: Project Support 2.97 1.1 4.07 Total 38.64 12.88 51.52
49. The project achieved the level of economic returns anticipated at appraisal. Total EIRR at appraisal, including the additional financing and increased scope of works, was estimated as 22.2 percent with a net present value (NPV) of US$143.3 million, using a discount rate of 6 percent.12 The economic analysis was based on the project financing aviation infrastructure Faleolo airport to ensure ICAO safety and security standards are met, and that jet services continue without disruption. Without the project, it was expected that the jet services may not be able to continue, and similar investment would be needed around 2018. Without such disruption, the project achieved the expected efficiency from avoided jet services disruption which would limit the number of incoming tourists and their contribution to the country’s GDP.
50. The efficiency analysis covers the time horizon of 12 years (2014‐2026). Key assumptions include (i) the estimated contribution of travel and tourism to GDP by the World Travel and Tourism Council (WTTC), which is about US$144 million or 22 percent of GDP in 2014, growing at an average of 3.6 percent per annum; and (ii) 25% reduction of tourists with estimated impact of US$48 million due to disruption of jet services in 2014.
51. The economic internal rate of return (EIRR) at completion is estimated at 31.9 percent with an NPV of US$76 million.1314 The project’s EIRR is slightly lower than the level envisioned at appraisal (33.6 percent). Because the comparison involves counterfactual scenarios, a sensitivity analysis was also conducted for different timing of the potential disruption, as well as the size of disruption (i.e. percentage of demand loss), to test the robustness of the result. Details of the economic analysis and related sensitivity analysis are presented in Annex 4.
12 A 6 percent discount rate was used considering that the GDP per capita in Samoa has increased on average at 3 percent per year from 2010 to 2018, which follows the World Bank’s Guidance Note on Discounting Costs and Benefits in Economic Analysis of World Bank Projects (May 2016). 13 Using the same 6 percent discount rate as was used at AF2 appraisal. 14 A parallel analysis was undertaken with an assumption that 90% of tourism GDP will be lost in 2020 and 2021 due to COVID19 pandemic and returns to the original trajectory in 2022. Under this assumption, the estimated EIRR at completion is 30.8 percent with an NPV of US$ 71.06 million.
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52. The project’s efficiency had been challenged by several factors: complex project management structure, changes in donor financing, procurement delays, natural disasters, measles outbreak and COVID‐19 pandemic – which resulted in some funding shortfalls and an extended project implementation period.
53. During early days of project implementation, the Government requested to change the co‐financing arrangements with EIB with IDA due to more favorable borrowing terms. In addition, the Government also decided to construct a new airport building financed by another donor, which necessitated an expanded scope of work to ensure that the terminal and airside pavement interfaces could accommodate the additional load. Despite the extended scope and changes in donor funding the project was expected to be completed as planned.
54. In March 2019, the project was faced with unforeseen circumstances which necessitated an Additional Financing of US$2.2 million to the apron and runway contract in June 2018 to address two major issues: (i) The specifications of the apron pavement were changed from a flexible to a rigid pavement (concrete), to avoid damages to the underground services whose location were not known at the time of contract tendering, because no as‐built documents were available regarding their layout and specifications15; and, (ii) The terminal building, which was constructed in parallel by another contractor outside this project had a lower level than the apron. As a result, the construction of a retaining wall around the terminal building became necessary to remove the risk of water and oil spills on the apron inundating the terminal. In order to complete these key activities, the project closing date was extended by nine months from June 30, 2019, to March 31, 2020.
55. On March 11, 2020, the Government requested further extension to the project closing date by another nine months, from March 31, 2020 to December 31, 2020. The main reason for the request was to allow for the completion of training programs for SAA and CAD staff. The implementation of the training program has been suspended following the declaration of travel restrictions by the Government of Samoa on January 24, 2020 due to the coronavirus (COVID‐ 19) outbreak. Overall, the project implementation period was extended by 18 months.
56. Taking into consideration that the main component of the project was able to be completed during challenging circumstances, and that the overall size of the funding shortfall for the whole project was within acceptable range – approximately US$12.8 million (or about 33 percent increase), these challenges had a small impact on the project’s efficiency.
57. These results do not consider the impacts of the strengthening of the regulatory framework through the project, as well as the major long‐term financial sustainability which will be supported by the safety and security levy. In a qualitative way, these impacts are positive and supportive of the efficiency of the project, leaving the aviation sector with sector strategies, investment plans, and reform programs, including some that were delivered during the project implementation. The project also trained Government officials and airport personnel to enhance the capacity to plan and operate more efficiently and in accordance to the safety and security standards.
15 This surfacing change has the additional benefit of making the pavement able to support heavy load of tugs and airbridge wheels
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Assessment of Efficiency and Rating
58. The Efficiency Rating is High. Despite the delays and increased costs which slightly bring down the EIRR, the project was able to achieve its planned outputs in an exceptionally difficult implementation environment – a similarity shared among the Pacific Islands Countries.
D. JUSTIFICATION OF OVERALL OUTCOME RATING
59. Based on the above, the overall outcome rating is Highly Satisfactory.
E. OTHER OUTCOMES AND IMPACTS (IF ANY)
Gender/GBV
60. At the time of appraisal gender was not identified as an issue although several initiatives were started around addressing gender‐based violence (GBV), violence against children (VAC) and human immunodeficiency virus (HIV) awareness. During project implementation, SAIP was instrumental in supporting gender advancement in Samoa by supporting a transformational leadership program with ongoing mentorship for 22 female SAA staff. The project was also instrumental in developing technical aviation capacity resulting in the recruitment of the only qualified female Air Traffic Controller. Starting in 2017, the SAIP project implemented ‘Codes of Conduct’ (CoC) to address the risk of GBV, VAC and HIV. This was done in close consultation with the Australian Department of Foreign Affair and Trade who assisted the TFSU in preparing CoC. All consultants, contractors and suppliers were required to sign the CoC which outlined behavioral expectations, as well as consequences. The project implemented a grievance redress mechanism which had special channels for GBV, including referring survivors to support services. Training on HIV/AIDs, GBV, VAC was required for all workers on the project. This approach was rolled out by the TFSU to all PAIP countries. This work predated the transport GP’s focus on GBV and formed key elements of the World Bank’s ‘Good Practice Note’ for addressing GBV on investment projects.16
Institutional Strengthening
61. A Training Needs Assessment was carried out and planned to be implemented under the project through provision of local and international knowledge transfer. In addition, building on previous World Bank‐supported projects in the transport sector, this project also contributed to the Government’s aviation sector reform. SAIP improved the institutional capacity of the Samoa’s aviation authority, CAD, and airport operator, SAA. The most significant investment under this project includes: (a) the development and endorsement of the Aviation Sector Strategy for Samoa; (b) the development of Master Plan and Business Strategy for SAA; and (c) the development of the training needs assessment report for CAD and SAA.
16 Working together to prevent sexual exploitation and abuse: recommendations for World Bank investment projects. World Bank Group, 2017
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Mobilizing Private Sector Financing
62. The project did not use guarantees and did not mobilize private sector financing.
Poverty Reduction and Shared Prosperity
63. Two main aspects of the project design supported poverty reduction and shared prosperity. Mainstreaming disaster risk reduction and climate adaptation into infrastructure planning and management was identified in the Samoa Country Partnership Strategy (CPS) (2013‐2016) as a primary outcome objective. Having functioning and sustainable airports and related infrastructure provide access during times of natural disasters and emergencies, which is critical for immediate response, particularly for remote countries such as Samoa.
64. The second aspect is tourism, which was identified as a pathway to reduced poverty and shared prosperity under the Systematic Country Diagnostic (January 2016) of Eight Pacific Island countries17, including Samoa. For Samoa in particular, tourism represents a very high priority solution area. It also noted that “the tourism sector is important to allow the poor to take advantage of employment opportunities”.
Other Unintended Outcomes and Impacts
65. Following the completion of the runway infrastructure upgrade under SAIP, the GoS, CAD and SAA have adopted a more strategic approach towards their investments in the aviation sectors. GoS is in discussions with the World Bank on potential investment opportunities to rehabilitate the seawall, upgrade the terminal’s drainage system and potentially extend the runway at Faleolo Airport.
17 World Bank Group. 2016. Systematic Country Diagnostic for the Eight Small Pacific Island Countries : Priorities for Ending Poverty and Boosting Shared Prosperity. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/23952
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III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME
A. KEY FACTORS DURING PREPARATION
66. The project’s design was clear and well‐aligned with the other three projects that were prepared as part of PAIP phase 1 (Kiribati, Tonga and Tuvalu). The continued use of the project design in this project, under PAIP, suggests that it is appropriate for the context and transferable to other countries in the region. As touched on above, the establishment of the TFSU provided a clear plan for how the project would be monitored.
67. The background analyses undertaken for the project were sound. Assessments of the aviation sector in the South Pacific have found many of the countries lack the proper policy, regulatory and infrastructure to comply with ICAO requirements, which justified the need for safety and security improvements.
B. KEY FACTORS DURING IMPLEMENTATION
68. SAIP was able to leverage the PAIP TFSU to provide additional capacity support on project management, procurement and financial management, including expertise in the areas of planning and budgeting, engineering and equipment specification, contract management, World Bank safeguards policies, monitoring and evaluation, and reporting requirements. However, it was not without its challenges. In leading the regional program, regional resourcing from TFSU to support SAIP investments has been challenged, with a prioritization towards Vanuatu in 2016, to address emergent critical issues, which has also been compounded by under‐resourcing of procurement and contract management within the TFSU team. While noting there is some room and need for improvements, program implementation arrangements have been effective.
69. The impact of the Government’s decision to finance and construct a new terminal building with other donors, a major development that was not part of the original project design, and its implications on project timelines, was substantial. It was a major adjustment resulting in an Additional Financing to the major civil works activities, as well as the substitution of EIB parallel financing for IDA Credit.
70. Change in Implementation Strategy. Delays in finalizing cost‐effective and climate resilient detailed designs for the airfield pavement and drainage works impacted the procurement timelines and commencement of the civil works. At the direction of SAA, the contract for the design and supervision (D&S) consultant was terminated in December 2016 due to non‐performance, noting a lack of technical responsiveness and/or an unwillingness to address client requirements. To help expedite project execution, a change in implementation strategy was introduced. It involved the use of a design and build contract for the major airfield pavement and drainage works based on the available design. This change in approach to utilize a design and build contract offered opportunities to improve implementation efficiency, but also represented a challenge in that it was a new procurement method previously not used under PAIP. This approached proved to be successful as the contractor completed the works on time and with no cost overrun, and with design enhancements.
71. There were delays of about 17 months in contracting for the civil works, which stemmed primarily from issues related to the D&S consultancy assignment: (i) the procurement cycle for the D&S consultant took an extended period; (ii) key inputs necessary for the design were either overlooked in the technical proposal, or thought to be available but were not which necessitated additional preparation studies; (iii) once the consultant contract was signed, there
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was an immediate need to modify the scope of services due to the GoS terminal investment decision; and (iv) eventual termination of the design consultant in December 2016.
72. Implementation support was adequate. Implementation Support Missions were carried out on a regular basis and the project’s Task Team was proactive in addressing challenges throughout the project’s life.
IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME
A. QUALITY OF MONITORING AND EVALUATION (M&E)
M&E Design
73. The project was part of the regional PAIP and thus the M&E design was harmonized across the program as part of the requirement for Regional IDA financing. This meant consistent indicators were required for all countries. A benefit of this approach was to provide comparable measurement across all projects in the series and to help future projects be prepared in a more streamlined fashion, taking advantage of the Series of Projects structure.
74. As highlighted by other projects under the series, Indicator two (State requirements for safety and security reaches global ICAO average) was dependent on an external agency. While funding for this was included in the project, the actual activity was largely out of the project’s control in terms of getting the completed audit in time for project closure. While ICAO scores should ideally be updated as countries respond to ICAO audit findings, upload their mitigations and when ICAO does follow up visits, this rarely happens in a timely fashion and the lag time for score update is years not months. Further, since the indicator is an aggregate, it could only capture the measurable aspect of the USOAP but not the attributable aspect18. Thus, the project’s achievements were not able to be fully captured in this indicator. An external expert assessment may have been an alternate indicator as this would have been more in the control of the World Bank and Implementing Agency. Samoa was the only project in the series that was able to substantially achieve this indicator by using remote and virtual audits verified through an independent Third‐Party assessment.
M&E Implementation
75. Even though SAIP was part of PAIP, it was responsible for its own M&E, which was then funneled to the TFSU for overall reporting. This allowed for a more standardized approach in terms of measurement and data collection. During the first part of project implementation not all achievements were captured in the Results Framework, however these were all updated during the life of the project and were accurate at completion.
18 The eight audit areas of a member state’s aviation system that the program monitors are: (i) Primary Aviation Legislation and associated civil aviation regulations, (ii) Civil Aviation Organizational structure, (iii) Personnel Licencing activities, (iv) Aircraft Operations, (v) Airworthiness of civil aircraft, (vi) Aerodromes, (vii) Air Navigation Services, and (viii) Accident and Serious incident investigations, ICAO https://www.icao.int/safety/CMAForum/Pages/FAQ.aspx accessed May 7, 2021
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76. The project’s quarterly reporting was occasionally delayed, largely due to delay in data transfer between SAA/PST and TFSU. Because TFSU was not based in Samoa, it had limited means to effectively help PST overcome challenges in timely data collection and transfer. However, this occasional reporting delay did not hinder the overall project implementation.
77. Several approaches were trialed during implementation to improve the monitoring, evaluation and learning of the project such as spider graphics and new processes for collecting data. In addition to the Results Framework, other M&E activities were carried out for procurement and works. Metrics such as ‘Key Performance Indicators’ on procurement were included and SAIP implemented ‘Open Contracting’ with the project website reporting on award and progress of contracts (http://www.saip.ws/). This also provided news, information on procurement training and reports.
M&E Utilization
78. The Results Framework was used to measure project progress, particularly towards the end of the project life. As a result of Additional Financing received by the project, the Results Framework was updated to include a new indicator on period reporting on Grievance Redress Mechanism (GRM). The SAIP website also provided transparent access to procurement information throughout the project life and could be used to track timelines and project implementation progress.
Justification of Overall Rating of Quality of M&E
79. Based on the above, the overall rating of Quality of M&E is Modest.
B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE
80. Environmental and Social Safeguards. The project was rated with an Environmental Assessment of Category B and adhered to World Bank requirements for environmental and social safeguards. The project originally designed an Environmental and Social Management Framework. However because contemporaneous construction of a new terminal would be introduced during implementation of SAIP, SAA/TFSU designed an Integrated Environmental and Social Management Plan (“IESMP”)” at the time of project restructuring to ensure all investment activities (including the terminal project) were adequately monitored to address real or potential environmental and social risks. As implementation of the SAIP works were substantially delayed while the terminal works progressed, a stand‐alone project’s Environmental and Social Management Plan (ESMP) for the SAIP works was prepared which superseded the IESMP. The PESMP formed the basis for the Contractor’s Environmental and Social Management Plan (CESMP) for the construction works. The documents including the PAIP Environmental and Social Management Framework, the contractor’s Environmental and Social Management Plan and project information documents (in Samoan language and English) were available on the SAIP website.
81. A Grievance and Complaint Logging system was also set up and available on the SAIP website, allowing stakeholders to not only log potential issues, but also to see anonymous information about other grievances. This included statistics on time taken to resolve and the level of priority. Thirteen complaints were shown to be received during the project life.
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Eleven were low priority, with two resolved within the standard service of 28 days, while the rest, including the two that were medium priority, took up to 85 days to resolve.
82. Financial Management. SAIP was able to successfully transition its annual project financial statements to International Public Sector Accounting Standard (IPSAS) Financial Reporting Under the Cash Basis of Accounting for the year ended 30 June 2016, to be consistent with GoS reporting requirements. Financial management (FM) was rated Satisfactory for majority of the project’s life. It was downgraded to Moderately Satisfactory in December 2019.
83. A major issue cutting across the IDA portfolio and affecting SAIP was the handling of contract tax liabilities. The application of taxes to project contracts previously caused delays or an inability to complete procurement for multiple contracts. GoS confirmed in April 2017, during the project’s mid‐term mission, that all contracts should be inclusive of all taxes (direct and indirect), with SAA deducting tax liabilities from contract payment obligations to the Ministry of Revenue. To avoid issues and delays at contract negotiations, it was agreed that SAA would involve Attorney General’s Office (AGO) and the Tax unit of the Revenue Division in early review of Request for Proposals and Bidding Documents (including draft contract documents) to ensure consistency of language on taxes (including withholding tax).
84. Procurement. A regional procurement approach was used for projects under PAIP, with procurement centralized through the TFSU. This mitigated the high risk of procurement issues in capacity‐constrained countries and increased the attractiveness of works, given the small and remote nature of countries under the program. Procurement was rated as Moderately Satisfactory for the majority of the project, with a downgrading to Moderately Unsatisfactory in June 2020.
85. The downgrading in the final year of the project life was largely due to the delay in implementation and delivery of supplies and equipment for airfield lighting, power system and air traffic control equipment (ATC package). The contract for ATC package was signed in June 2018 with the equipment scheduled for installation in April 2019. However, the installation was only able to be completed in March 2020, representing an 11 months delay from the original schedule. Further, some spare parts supplies were only arriving in December 31, 2020. At the time of the writing of this ICR, one container of spare parts has yet to arrive in Samoa. SAA confirmed that it will cover the cost of the spare parts contained in this final container (approx. US$12,525). The delays were due an underestimate in the amount of works required and poor planning by the contractor, which led to multiple shipment delays. SAA eventually applied liquidated damages to this contract because of the lengthy delays. It was noted that not all the planned contracts under SAIP were completed by the project closing date. SAA advised that these were additional activities intended to make use of available contingency funds, which SAA opted not to execute as they were not essential to the project.
86. Towards the end of the project, Samoa created the Centralized Technical Support Services Unit (CTSSU) within Ministry of Finance (MoF) and the Transport and Infrastructure Sector Coordination Division (TISCD) within MWTI. CTSSU and TISCD were created to facilitate transport sector projects (mainly road sector), SAIP was included at the Government’s request, resulting in these new entities taking over the technical and fiduciary duties from TFSU. As with any new entities, there were some adjustment and handover period required. In this instance, the handover period contributed to the delays in procurement, especially challenges in the use of World Bank’s Systematic Tracking and Exchanges in Procurement (STEP). CTSSU and TISCD were not able to access STEP, and not trained in STEP, resulting in delay in procurement processes. This delay together with logistical challenges for activities that were already under implementation resulted in delays in implementation.
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C. BANK PERFORMANCE
Quality at Entry
87. The project was strategically relevant to both the Government of Samoa and aligned with World Bank guiding documents at the time of preparation. Considering the challenging context, the project’s technical, financial, and economic appraisal was robust. The project also leveraged lessons from previous PAIP project designs, including the design of the Result Framework which was fully synchronized with PAIP. It should be highlighted that at the time of appraisal, all projects under a regional IDA program were required to have the same set of result indicators, hence allowing limited flexibility to tailor the Result Framework based on specific country circumstances.19
88. Risks were identified and satisfactorily addressed using an Operations Risk Assessment Framework. A risk which was not identified during preparation was the potential for changes in donor funding and the expansion of the terminal. This was, however, addressed during implementation, as part of the restructure and Additional Financing in 2016 (see Quality of Supervision section below).
Quality of Supervision
89. At least two formal implementation support missions per year were carried out throughout the project, with additional technical missions taking place, as necessary. Weekly meetings were held with the implementation team to monitor progress and provide support between missions. Additional support was also provided through capacity building and training carried out by the task team and Pacific Country Management Unit through World Bank workshops and additional visits from Procurement, Safeguards and FM colleagues.
90. As referenced above, a risk that was not foreseen during appraisal, but which did eventuate, was the Government’s decision to expand and construct the new terminal building. This decision to finance and construct a new terminal building with other donor was a major development that was not part of the original project design, which required integration of terminal facilities with the apron and aircraft parking positions. This resulted in a significant change in project scope, related consultancy services, changes in donor, and ultimately the total financing requirements.
91. Three restructurings (two additional financing and one project extension), were carried out during implementation in order to respond to the needs of the project and requests from the Government. The project had four Task Team Leaders (TTL) and several changes in key project teams (Safeguards and Financial Management) during its six and a half years of implementation. While changes in TTL and team members are not uncommon, it would have meant some losses of ‘institutional knowledge’ or history of the project. The project also underwent changes in key personnel in the PST during its most critical time, and together with the changes of team members and TTL from the World Bank, resulted in the need for a period of adjustment. This was mitigated through co‐TTL‐ship or a handover period where the incumbent worked with the new TTL/team member for a period of time.
19 IDA regional programs nowadays allow more flexibility in this regard.
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Justification of Overall Rating of Bank Performance
92. Based on the above, the overall rating for World Bank Performance is Satisfactory.
D. RISK TO DEVELOPMENT OUTCOME
93. At project completion, the risk to the development outcome is Substantial. The measles outbreak in December 2019, the COVID‐19 pandemic since March 2020 and the flash floods as a result of Cyclone Zazu in December 2020 have severely impacted the sustainability of project achievements:
a. The SSL revenue shrank because of the decline of international travels since March 201920, and risks SAA’s financial capacity to continue subscribing to PASO’s technical service on aviation safety oversight.
b. The reduced air traffic has led to a decrease in SAA’s revenue from landing fees, putting the maintenance of the airport infrastructure invested under SAIP at risk once the Defect Liability Period expires in September 2021.
94. Extreme climatic disasters continue to pose threats to the airport infrastructure improved under SAIP. The torrential rainfall and gusty winds that Samoa experienced in December 2020 were caused by active bands of convections associated with Tropical Cyclone Zazu which also impacted Tonga and Niue. The new terminal building was severely impacted, with the ground floor flooded, damaging electronic components within the terminal including the escalators, elevators, check‐in service computers, security x‐ray systems, and baggage conveyors.
V. LESSONS AND RECOMMENDATIONS
95. As the first large aviation infrastructure project financed by IDA in Samoa and a project under a regional IDA program, SAIP provided several key lessons learned for future projects of similar nature. This section summarizes key lessons revolving around (a) Regional approach and its impact; (b) Remoteness and capacity constraints; (c) Infrastructure investment; and (e) Leveraging partnership.
Lessons on Regional Approach and its Impacts
96. The regional approach is an ideal option for countries with limited IDA country allocation and/or are in urgent need for developing a complex large‐scale investment. Being part of an IDA regional program allows countries like Samoa with a limited IDA country allocation to access additional regional IDA resources that could be used for critical large‐scale investment like SAIP. Further discussions on the efficacy of the regional approach should be consider when the all projects under PAIP has been closed.
20 International passenger arrivals have decreased from 11,163 passengers in March 2019 to 4,164 in March 2020 (post measles outbreak, and pre‐COVID‐19 pandemic) to 0 in March 2021. Central Bank of Samoa, Visitors Earnings and Remittance, on https://www.cbs.gov.ws/index.php/statistics/tourism‐earnings‐and‐remittance/ Accessed April 29, 2021
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97. The regional design benefited from one country (Implementing Agency) taking the lead in coordination and risk. SAIP and other projects under the program benefitted from a collective pool of technical, procurement and financial management experts which would have been more costly had each project done it individually.
98. Regional procurement harmonization and technical expertise can be effective. Given the technically complex and sizable civil works investments for runways, navigation aids and other specialized equipment, the regional approach to central procurement proved to be effective and innovative. Procurement was made more efficient through the central procurement team which generated time savings and encouraged coordination of activities. Procurement of the same goods for several countries in one tender helped to reduce cost (compared to procuring specialized equipment for each country separately) and facilitate future support and maintenance of harmonized equipment. Moreover, harmonized procedures such as the use of a single Project Operations Manual in all participating countries simplified fiduciary oversight. Developing regional networks between airport operators is an approach that could be replicated in other parts of the world with small individual states facing similar constraints in terms of limited capacities and resources to sustain aviation safety and security investments.
99. While maintaining the benefit of using harmonized solutions across participating countries, regional programs need to allow certain flexibility for each country to tailor its project design based on specific country context. When PAIP was conceptualized, there were two requirements for developing an IDA regional program21: (a) using the same set of result indicators for all projects under the regional program; and (b) setting up a regional central service unit to provide technical and fiduciary support to all participating countries. These requirements made the program preparation for PAIP challenging. For instance, since there were no regional agencies in the Pacific that had suitable setup to play the role of a regional central service unit for an aviation program, PAIP created the TFSU based in Tonga Airport Limited to fulfil this requirement. While SAIP was able to achieve the requirements of the results indicator, it was the only project in the series that was able to do this. The requirements on result indicators in regional program needs to take into consideration each country’s context and be more fit‐for‐purpose to be able to offset some shortcomings in the PAIP M&E framework. It should also consider identifying good practices and concrete actions to strengthen M&E design in individual operations.
100. TFSU was a key feature of PAIP, and while acknowledging trade‐offs between a regional model and a country‐based model, it generally worked well. Some key lessons became evident under SAIP in terms of the benefits and trade‐offs of the TFSU arrangement:
Benefits:
a) Having a central regional fiduciary support unit such as TFSU promotes rapid implementation under the constrained capacity, especially in terms of technical expertise, procurement, and contract execution. b) SAIP benefited from having a strong technical support and knowledge transfer from TFSU. Towards the end of the project, Samoa created the Centralized Technical Support Services Unit (CTSSU) within Ministry of Finance
21 IDA regional programs now allows more flexibility in this regard.
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(MoF) and the Transport and Infrastructure Sector Coordination Division (TISCD) within MWTI. TFSU was instrumental in supporting and developing knowledge within these two new entities.
Trade‐offs:
a) A regional service unit will always have limited onsite presence except for its hosting country. As most support to the other countries is provided through emails, calls and other remote‐based communication, managing competing demands from different countries could at times be challenging and be perceived as unequal access to these services. Ensuring responsiveness and knowledge transfer to national entities are thus key for the success of the regional service unit. b) The financing mechanism to pay for the services from a central region service unit such as TFSU needs to be carefully designed. Compared with allocating the overall service cost among participating countries based on the size of the project in each country, it would be better to have a standalone IDA regional financing allocated specifically to cover such service.
Lessons on Remoteness and Capacity Constraints
101. Remoteness premiums need to be factored into project budgeting, especially when limited benchmark rates are available for a certain sector. For countries like Samoa, with substantial remoteness premiums, the costs of shipping, equipment, maintenance, and expert staff are usually two to three times higher than in less isolated countries. When the project is the first of its kind for the Implementing Agency in the Borrower’s country, cost estimates are often challenging and inaccurate because of the lack of benchmark rates. Higher cost contingencies should be factored into the project design at appraisal and updated continuously based on the latest available data from project implementation or emerging experience from other countries.
102. Lack of available technical expertise and remoteness of location require longer implementation periods. While there are arguments for and against longer implementation periods, it’s important to acknowledge that the standard five‐year period is unlikely to be sufficient in small island states, where capacity is limited and remoteness impacts cost, timeliness, and connectivity. SAIP was fortunate that it had a project manager with a strong technical project management skill in comparison to other PICs. Despite this strong presence, all contracts under SAIP required extensions. While some amount of time pressure is helpful to push the implementation along, the frequent extension of contract closing dates may reflect overly optimistic implementation plans not tailored to the specific circumstances of remote small islands.
103. The Government’s decision to finance and construct a new terminal building lead to significant changes in implementation strategy. The team’s agility in adjusting to changes in the Government’s priority lead to changes in implementation strategy, from design and supervision to design and build, with a separate supervision consultant. This resulted in the engagement of a higher quality Supervising Consultant/Resident Engineer. The superior performance of the supervision consultant has been a major factor in the timely and successful completion of the runway paving works and in correcting flaws in the apron works. This confirms the need for a higher caliber of Supervision Engineer who must be able to provide timely decision‐making onsite, especially on a large and complex project. The Borrower should aim to appoint a resident Engineer in country on a full‐time basis. If such arrangement is not possible, the Borrower should clearly state in the contract that the designated representatives of the Engineer must be authorized to make timely decisions onsite and stay accessible whenever the implementing entity is in need for consultation or services. In
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addition, both the Contractor and the Supervision Engineer must ensure staff on site are fluent in communicating in ruling language as specified in the contract.
Leveraging Partnership for Systematic and Continuous Support
104. Strengthening the aviation sector in Pacific countries requires substantial technical, legal, and financing resources, which makes it critical to leverage partnership with all development partners to form a long‐term coherent engagement with the targeted country. Supporting the airport operators and the aviation authority to develop a robust long‐term strategy for airport development and sectoral oversight is a good starting point. It helps entities identify key technical and institutional gaps, as well as financing needs to engage different development partners for coordinated support. Given the technical complexity of the aviation sector, countries need to plan for long‐term capacity building, especially in cultivating in‐country human resources through targeted education and training programs. .
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ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS
A. RESULTS INDICATORS
A.1 PDO Indicators
Objective/Outcome: Indicator one Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Regulatory certification of Text APW certified APW certified Re‐validation of safety and security at project certification of APW in airports accordance with CAR‐ Part 139/140.
01‐Jan‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Achieved ‐ APW continues to be certified and remains compliant
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Objective/Outcome: Indicator Two Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion State requirements for safety Percentage 56.43 41.38 47.80 measured by Universal Safety Oversight Audit Programme 31‐Dec‐2010 29‐May‐2020 31‐Dec‐2020 (USOAP) reaches global ICAO average
Comments (achievements against targets): A lower percentage is indicative of improved safety and security performance. CAD has continued to upload their works on the USOAP Online Framework (OLF). These works can only be validated during an ICAO Validation Mission. Unfortunately, Samoa has only been able to find a possible time for this mission in late 2022, which falls outside the current project closing date.
Objective/Outcome: Indicator Three Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Modernization of air traffic Text No VSAT or ADS‐B VSAT & ADS‐B VSAT & ADS‐B management operational operational
01‐Jul‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Achieved. VSAT & ADS‐B operational.
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Objective/Outcome: Indicator Four Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Implementation of a regional Text No levy AU$5 collected from AU$5 collected from safety and security levy for each departing each departing departing international international international passengers passenger. passenger.
01‐Jul‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Achieved.
SSL collection started in October 2015. The SSL is currently split as 2% to airlines, 39% to SAA, and 59% to CAD‐MWTI and MOF.
A.2 Intermediate Results Indicators
Component: Component A. Aviation Infrastructure Investments
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Navigation and safety aids Percentage 0.00 85.00 100.00
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fully operational 01‐Jul‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Achieved following the completion of the NAVAIDS works in March 2020
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Rehabilitation of APW Percentage 0.00 100.00 100.00 pavement 01‐Jul‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Achieved. Runway works completed in Sept 2019. Defects Liability Period ends September 27, 2021
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Achievement of Fire Text Category 8 Category 9 Category 10 Standards at APW 01‐Jul‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Achieved. Fire Rescue vehicles delivered and commissioned in April 2018. Category exceeds end target.
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Component: Component C: Strengthening Airport Operations and Management Capacity
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Successful implementation of Text No training plan Training underway Training plan agreed training plan completed
01‐Jul‐2014 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): All training plans were completed by December 2020. As a result of COVID‐19 and unavailability of some trainings online, CAD and TISCD closed their training in September 020. SAA completed their training plan in December 2020.
Component: Component D. Project Management
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion SAA publishes periodic Yes/No Yes Y Yes reports on GRM including resolution rates 31‐Dec‐2015 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Project publishes grievances on project website at www.saip.ws.
At the time of project completion, all registered grievances and complaints have been resolved.
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Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Women participants in Number 0.00 10.00 22.00 management training and career fast‐track support 26‐Jun‐2019 29‐May‐2020 31‐Dec‐2020 program
Comments (achievements against targets): Completed. A total of 22 Female SAA staff completed a Transformational Leadership Programme in Oct 2019 with ongoing mentorship provided by the trainers up to Mar 2020.
Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Registered grievances and Percentage 70.00 100.00 100.00 complaints responded to within 14 days 26‐Jun‐2019 29‐May‐2020 31‐Dec‐2020
Comments (achievements against targets): Completed All complaints were responded to within 14 days.
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B. KEY OUTPUTS BY COMPONENT
Objective/Outcome 1: Improve operational safety of international air transport and associated infrastructure
1. Regulatory certification of safety and security at Faleolo maintained; Outcome Indicators 2. Modernization of air traffic management achieved.
1. Component A: Rehabilitation of airport runways, taxiways, and aprons at APW; Intermediate Results Indicators 2. Component A: Navigation and safety aids in line with implementation schedule; 3. Component A: Fire Standards at APW achieved
Key Outputs under Component A: International Airport Infrastructure Investments
1. Rehabilitation of runway, aprons and related infrastructure for APW; 2. Supply and Installation of Satellite Communication Equipment (VSAT); 3. Supply and installation of ADS‐B ground stations at APW; Key Outputs by Component 4. Supply and installation of safety and security equipment at APW 5. Supply and installation of energy efficent equipment and lighting at APW (linked to the achievement of the Objective/Outcome 1) 6. Upgrading of generator capacity and installation of energy efficient equipment; 7. Upgrading of runway lighting at APW; 8. Supply and delivery of fire safety equipment;
Objective/Outcome 2: Improve oversight of international air transport infrastructure
1. State requirements for safety measured by Universal Safety Oversight Audit Programme Outcome Indicators (USOAP) reaches global ICAO average;
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2. Regional safety and security levy for departing international passengers implemented.
1. Component B: Aviation Sector Strategy in line with implementation schedule; 2. Component C: Airport Master Plan and Business Strategy in line with implementation Intermediate Results Indicators schedule; 3. Component C: Successful implementation of agreed training plan 4. Component C: Citizen Engagement
Key Outputs under Component B: Aviation Sector Reform and Training:
1. Aviation Sector Strategy; 2. Training Needs Assessment for CAD;
Key Outputs under Component C: Strengthening of Airport Operations and Key Outputs by Component Management Capacity:
(linked to the achievement of the Objective/Outcome 2) 1. Airport Master Plan for Samoa; 2. Training Needs Assessment for SAA; 3. Business Strategy for SAA; 4. Grievance Redress Mechanism developed and available
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ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Christopher J. De Serio Task Team Leader(s)
Stephen Paul Hartung Financial Management Specialist
Beverley Ann McLean Social Specialist
Penelope Ruth Ferguson Social Specialist
Supervision/ICR Noroarisoa Rabefaniraka, Nana S R H Soetantri Task Team Leader(s) Cristiano Costa e Silva Nunes Procurement Specialist(s) Janet Virginia Gamarra Rupa Financial Management Specialist Lorraine D. James Team Member Charles E. Schlumberger Team Member Wolfhart Pohl Environmental Specialist Thomas John Callander Social Specialist Antonia Wong Team Member Nicholas John Valentine Environmental Specialist Craig Andrew Clark Social Specialist Caroline Ruth Holo Team Member Nicholas Gerard Williams Procurement Team
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B. STAFF TIME AND COST
Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY13 8.749 81,633.60 FY14 12.904 74,769.52 FY15 4.014 21,751.95 FY16 0 ‐9,665.04
Total 25.67 168,490.03
Supervision/ICR FY14 1.850 6,188.63 FY15 8.770 58,435.22 FY16 15.268 106,283.91 FY17 12.177 114,046.61 FY18 13.164 141,281.28 FY19 10.111 104,652.82 FY20 15.242 86,953.01 Total 76.58 617,841.48
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ANNEX 3. PROJECT COST BY COMPONENT
Amount at Approval Actual at Project Percentage of Components (US$M) Closing (US$M) Approval (US$M) Component A. Aviation Infrastructure 32.52 44.07 135% Investments Component B. Aviation Sector Reform and 1.57 1.72 109% Training Component C: Strengthening Airport 1.58 .66 42% Operations and Management Capacity Component D: Project 2.97 4.07 137% Management Total 38.64 51.52 133%
1. While the total amount approved in the original and the two additional financing was equivalent to US$51.52 million, due to currency fluctuations the total amount available was US$44.12 million. At project close, SAIP had disbursed US$42.14 million, with US$ 58,954.30 undisbursed.
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ANNEX 4. EFFICIENCY ANALYSIS
1. The efficiency analysis for the ICR of the project is based on a cost‐benefit analysis (CBA) approach, which follows the same methodology at appraisal stage. The CBA focuses on Component A – international airport infrastructure investments. The analysis covers the time horizon of 12 years (2014‐2026), assuming the discount rate of 6%.22
2. The project financed aviation infrastructure at Faleolo Airports to ensure ICAO safety and security standards were met, and that jet services continued without disruption. Without the project, it was expected that the jet services may not be able to continue, and similar investment would be needed around 2023. Without such disruption, the project achieved the expected efficiency from avoided jet services disruption which would limit the number of incoming tourists (which contribute to country’s GDP). Figure 5 shows Samoa’s visitor arrivals and earnings trends.
Figure 5: Samoa’s Visitor Arrivals and Earnings (2004‐2018)
200,000 600 Total arrivals (persons) 178,564 180,000 Total earnings (tala million) 500 160,000 514 140,000 400 120,000 95,882 100,000 300 80,000 60,000 200 183 40,000 100 20,000 0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Central Bank of Samoa, Visitors Earnings and Remittance, on https://www.cbs.gov.ws/index.php/statistics/tourism‐earnings‐and‐remittance/
3. Key assumptions include: (a) the estimated contribution of travel and tourism to GDP based on the visitor’s data above, which is about US$144 million or 22% of GDP in 2014, growing at 3.6% per annum, and (b) 25% reduction of tourists with estimated impact of US$48 million due to disruption of jet services in 2014.
4. The economic internal rate of return (EIRR) at completion is estimated at 31.9% with net present value (NPV) of US$76 million. The project’s EIRR is slightly lower than the level envisioned at appraisal (which is 33.6%), but it is still at an acceptable level. Because the comparison involves counterfactual scenarios, a sensitivity analysis was also conducted for different timing of the potential disruption, as well as the size of disruption (i.e. percentage of demand
22 To be consistent with the discount rate at additional financing stage, which follows the World Bank’s Guidance Note on Discounting Costs and Benefits in Economic Analysis of World Bank Projects (May 2016) would have suggest a lower discount rate based on lower GDP per capita growth.
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loss), to test the robustness of the result (See Figure 6a below). Because different discount rates were used (i.e. 12% at appraisal, and 6% at additional financings), Figure 6b illustrates the sensitivity of the NPV to various discount rate.
Figure 6a: Sensitivity analysis conducted for different Figure 6b: Sensitivity analysis conducted for different timing of the potential disruption discount rates
90% 100 The year of The year of 80% 90 safety incident safety incicdent 80
70% million)
impact impact 70
Return 60%
(US$
2021 60 2020 of 50% 2022 50 2021
Rate 40% Value
2023 40 2022 30% 2024 30 2023 20% 20 Present Internal
10% 10 Net 0% 0 50% 60% 70% 80% 90% 5% 6% 7% 8% 9% 10% 11% 12% % of Tourism retained without the project Discount Rate
5. The project had several aspects in its design and implementation which impacted its efficiency. The project experienced a number of shortfalls within its activities due to complex management structure, changes in donor financing, procurement delays, natural disasters, measles outbreak, and COVID‐19 pandemic. The costs for infrastructure investments (Component A) increased due to the increased scope of the air side pavement works and additional activities. The delay of detailed designs for the airfield pavement and drainage works, the increased scope of investment, and the changes in financing sources resulted in the delay of the project implementation schedule for approximately 17 months. These changes were also the reason for project fund’s shortfall.
6. These results did not take into account the impacts of the strengthening of the regulatory framework and improvement of oversight of the international air transport through the project. In a qualitative way, those impacts are considered to be positive and supportive of the efficiency of the project, leaving the aviation sector with sector strategies, master plan and business strategy for SAA, reform programs, etc. including some that was delivered during the project implementation. The project also trained Government officials and airport personnel to enhance the capacity to plan and operate more efficiently and in accordance to the safety and security standards.
7. Despite the implementation delays and increased costs which slightly brings down the EIRR, the project was able to achieve its planned output in an exceptionally difficult implementation environment and through the global‐ scale pandemic. The overall efficiency for this project is rated Substantial.
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ANNEX 5. BORROWER, CO‐FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS
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Samoa Aviation Investment Project (P143408) Implementation Completion & Results Report - Borrower’s Report (February 2021) Government of Samoa | Samoa Airport Authority | Samoa Aviation Investment Project| World Bank
Abbreviations
ADS‐B Automatic dependent surveillance – broadcast AF Additional Financing AMS Asset Management System APL Adaptable Program Loan APW Faleolo International Airport ARFF Aircraft Rescue & Firefighting ASA Air Services Agreement AUD Australian Dollar Currency CAD Civil Aviation Division in MWTI CAE Child Abuse & Exploitation CAP Corrective Action Plan CBS Central Bank of Samoa China EXIM Export‐Import Bank of China CMA Continuous Monitoring Approach CoC Samoa Chamber of Commerce CQS Consultant’s Qualification Selection D&B Design & Build D&S Design & Supervision DLP Defects Liability Period EIB European Investment Bank EMP Environmental Management Plan FOREX Foreign Exchange FWD Falling Weight Deflectometer Testing Method GBV Gender Based Violence GCLS Grievance & Complaints Logging System GoS Government of Samoa GRM Grievance Redress Mechanism HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome ICAO International Civil Aviation Organization ICB International Competitive Bidding ICS Individual Consulting Services IDA International Development Association IESMP Integrated Environmental & Social Management Plan KAIP Kiribati Aviation Investment Project LC Least Cost Selection MNRE Ministry of Natural Resources & Environment MOC Memorandum of Cooperation MOF Ministry of Finance MWCSD Ministry of Women, Community and Social Development MWTI Ministry of Works, Transport & Infrastructure NAVAIDS Navigational Aids NCS Non‐Consulting Services NO No Objection NOL No Objection Letter NSC National Steering Committee NTB National Tenders Board
i
NZ CAA Civil Aviation Authority of New Zealand NZD NZ Dollar Currency OAG Office of the Attorney General OLF Online Framework PA Project Accountant PAD Project Appraisal Document PAIP Pacific Aviation Investment Project PASO Pacific Aviation Safety Office PDO Project Development Objectives PE Protective Equipment PEL Personnel Licensing System PICASST The Pacific Islands Civil Aviation Safety and Security Treaty PRIF Pacific Region Infrastructure Facility PSC Program Steering Committee PST Project Support Team PUMA Planning & Urban Management Agency in MNRE QCBS Quality‐Cost Based Selection S&D Supply & Deliver S&I Supply & Install SAA Samoa Airport Authority SAIP Samoa Aviation Investment Project SAT Samoan Tala Currency SCG Shanghai Construction Group Ltd SDR Special Drawing Rights SHP Shopping SOE State‐owned Enterprise SSL Security & Safety Levy SSP State Safety Plan SSS Single Source Selection STEP Systematic Tracking of Exchanges in Procurement SUNGO Samoa Umbrella of Non‐Governmental Organizations TA Technical Advisor TAIP Tonga Aviation Investment Project TAL Tonga Airports Ltd TBC To be confirmed TFSU Technical Fiduciary Services Unit TISCD Transport & Infrastructure Sector Coordination Division in MWTI TNA Training Needs Analysis TOP Tongan Pa’anga Currency TUP Terminal Upgrade Project TvAIP Tuvalu Aviation Investment Project USD US Dollar Currency USOAP Universal Safety Oversight Audit Programme VAIP Vanuatu Aviation Investment Project VSAT Very Small Aperture Terminal WB World Bank
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Table of Contents
PROJECT STORYLINE AND RATIONALE FOR OPERATION ...... 1
ASSESSMENT OF THE OUTCOME OF THE OPERATION AGAINST THE AGREED OBJECTIVES 2
ASSESSMENT OF KEY FACTORS THAT AFFECTED PERFORMANCE AND OUTCOMES ...... 6
EVALUATION OF BORROWER’S PERFORMANCE AND LESSONS LEARNED ...... 10
PROPOSED ARRANGEMENTS FOR FUTURE OPERATION OF THE PROJECT ...... 11
Project Storyline and Rationale for Operation
1.0 Project Background ‐ The Samoa Aviation Investment Project (SAIP) forms part of the Pacific Aviation Investment Program (PAIP). PAIP is a US$214 million regional Adaptable Program Loan (APL) approved in December 2011, with the objective to increase compliance with safety and security standards at international airport operations and improve regulatory oversight. SAIP was approved by the World Bank (WB) Board of Executive Directors on April 8, 2014, with the Financing Agreement signed with the Government of Samoa (GoS) on May 8, 2014, and became effective on August 6, 2014. Originally, the project had four main components with the original financial commitment (from PAD given in brackets) Component A: International Airport Infrastructure Investments (approx. US$32.52 million – IDA US$20.76 million; EIB US$7.52 million; GoS US$4.24 million) Component B: Strengthening Policy and Regulatory Capacity, and Training (approx. US$1.57 million – IDA US$0.69 million; EIB US$41 million; PRIF Grant US$0.3 million; GoS US$0.17 million).
Component C: Strengthening Airport Operations and Management Capacity (US$1.58 million – IDA US$0.97 million; EIB US$0.41 million; GoS US$0.21 million). Component D: Project Support (approx. US$2.97 million – IDA US$2.58 million; GoS US$0.39 million).
2.0 Project Implementation Arrangements ‐ The Executing Agency (EA) for SAIP is the Ministry of Finance (MOF), whereas the Implementing Agency (IA) is the Samoa Airport Authority (SAA). A Project Support Team (PST) within the SAA was also established to manage the project. The project was part of the Regional Program Steering Committee (PSC) chaired by the PAIP Director, thus a National Steering Committee (NSC) was also established to oversee coordination and monitoring of the project implementation at the national level. SAIP also benefited from the Technical Fiduciary Services Unit’s (TFSU‐PAIP) team services across the project implementation up until December 2019. In January 2020, the Transport & Infrastructure Sector Coordination Division (TISCD) within the Ministry of Works, Transport & Infrastructure (MWTI), funded under the WB Samoa Climate Resilient Transport Project (SCRTP) took over these oversight roles.
3.0 Project Additional Financing 1 ‐ After the SAIP project commenced, GoS announced its commitment to upgrade the terminal buildings to be funded by People’s Republic of China (PRC). Part of the PRC loan assistance covered partial airside works particularly to the apron and refuel lines to which the other half was covered under WB assistance. To avoid future potential issues on contracting on this particular area the GoS and WB agreed that the full apron works will be funded under WB assistance. Thus, on June 3, 2016, the WB Board of Directors approved an Additional Financing (AF1) of SDR 12.1 million (US$16.62 million equivalent) for the SAIP and the decision to also replace all EIB financing with IDA funding due to favourable borrowing terms. The Amendment to the Original Financing Agreement (FA) became effective on October 28, 2016.
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4.0 Project Additional Financing 2 – In 2019, a request for a second additional finance (AF2) and project extension, was submitted to the WB. The request for project extension was in relation to two critical items ‐ the Faleolo Airport (APW) Pavement Works and the Navigational Aids and Lights (NAVAIDS) Installation Works completion dates falling outside the original June 2019 closing date. Both contracts were linked to two intermediate indicators and were critical to the successful completion of SAIP. The request for additional financing stemmed from a critical cost variation that was approved by the NSC and GoS for the APW Pavement works, amounting to US$2.8 million to account for unforeseen conditions onsite, for at which point in time, the Safety and Security Levy (SSL) was reserved to cover the potential financing gap. Despite this, the SSL could not fully cover all the project activities, and only US$36,909 remained as unallocated amounts as of December 31, 2018, putting the continuation of on‐going activities and the project’s management at stake. This AF2 for a value of USD2.2mil, with a project extension for nine (9) additional months from 30 June 2019 to 31 March 2020, became effective on June 26th, 2019. 5.0 Project Extension 2 ‐ Following a declaration of travel restrictions by the GoS on 24 January 2020 due to the coronavirus (COVID‐19) outbreak, GoS requested another nine (9) months extension from its current closing date of 31 March 2020, up to 31 December 2020. The main reason for the project’s closing date extension was to allow SAA and Civil Aviation Division (CAD) staff training program to be completed. This activity was among the critical activities to help SAIP to achieve its Project Development Objectives (PDOs) and meet all its indicators. This was approved on 26th March 2020. 6.0 Relevance of project objectives during preparation and at completion ‐ The project development objectives remained relevant throughout the project implementation period and was consistent with the activities that were implemented for SAIP. The overall objective to improve airport operations and regulatory oversight were the key themes throughout the implementation phase, with additional activities being added to support these objectives.
Assessment of the outcome of the operation against the agreed objectives 7.0 Achievement of the operation’s objectives – As of 31 December 2020, all indicators for the project are estimated to be achieved. Primary Indicator Two is believed to be achieved due to the ongoing works by the CAD to improve and address all the outstanding gaps that were identified in the USOAP Audit in 2010, with the exception of the Accident & Investigation Section (AIG). However, these results can only be verified when an ICAO Validation Mission is conducted. The closest time that Samoa is able to book a validation mission is late 2022. The remaining results indicators are summarized below:
Table 1: Indicator Results Summary
Indicator End Target Status on 31 Dec Indicator Evidence 20 Achieved Primary Indicator One: Regulatory APW certified APW certified Achieved Certification certification of safety and security under Part 139 under Part 139 Documents at project airports
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Indicator End Target Status on 31 Dec Indicator Evidence 20 Achieved Primary Indicator Two: State 41.38% 47.8% compliance Achieved Needs validation requirements for safety and compliance from ICAO USOAP security reaches global ICAO Audit average Primary Indicator Three: VSAT or ADS‐B VSAT and ADS‐B Achieved Both Modernization of air traffic operational operational infrastructure in management place Primary Indicator Four: AUD$5 collected AUD $5 (SAT$11) Achieved MOF collection Implementation of a regional from each collected from receipts safety and security levy for departing each departing departing international passengers international international passenger passenger
Intermediate Indicator One: 100% 100% Achieved Contract Navigation and safety aids fully documents, operational infrastructure in place and operational Intermediate Indicator Two: 100% 100% Achieved Contract Rehabilitation of APW documents, infrastructure in place and operational Intermediate Indicator Three: Category 9 Category 10 Achieved Contract Achievements of Fire Standards at documents, APW infrastructure in place and operational Intermediate Indicator Four: Training Plan Training Plan Achieved Completion Successful implementation of completed completed certificates of agreed training plan. trainees
Intermediate Indicator Five: SAA 100% 100% Achieved SAIP website and publishes periodic reports on GRM quarterly reports resolution rates
Intermediate Indicator Six: 10 10 22 Achieved Completion women participants in certificates of Management‐training and career trainees fast‐track support program Intermediate Indicator Seven: 100% 100% Achieved Quarterly reports Grievances are responded to within 14 days
8.0 Outcome of Primary Indicators
8.1 Regulatory certification of safety and security at project airports ‐ Faleolo International Airport (APW) is currently certified and remains compliant. APW is the only airport project. Samoa had adopted NZ Rules under its Civil Aviation Regulation 2000. With the recent upgrades for the pavement and new navigational aid, lights, air traffic control and power centre at APW, it is likely that these improvements have further solidified APW’s compliance of Pt. 139. Of significance is new placement of runway end indicator lights
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(REILs), pavement marking on taxi guidance and touchdown zone markings. Widening of the turning node has increased safe manoeuvring of larger Code E aircraft.
8.2 State requirements for safety and security reaches global ICAO average – There has been ongoing annual oversight by PASO noting that the oversight is the responsibility of the MWTI, and PASO under the PICASST carries out these functions on behalf of the Ministry. Under the MOC between PASO and NZ CAA, the MWTI CAD has received assistance in addressing USOAP 2010 issues. CAD has made good progress and have continued to upload their works on the USOAP Online Framework (OLF). These works can only be validated during an ICAO Validation Mission. Unfortunately, Samoa has only been able to find a possible time for this mission in late 2022, which falls outside the current project closing date.
8.3 Modernization of air traffic management – VSAT and ADS‐B are both operational now at APW, which has seen a major improvement in SAA’s services.
8.4 Implementation of a regional safety and security levy for departing international passengers – The collection of the SSL was one of the first indicators to be achieved. Collection started in October 2015. The SSL is currently split as 2% to airlines, 39% to SAA, and 59% to CAD‐MWTI and MOF.
9.0 Outcome of Intermediate Indicators
9.1 Intermediate Indicator One: Navigation and safety aids fully operational – The commissioning of an upgraded Power Centre was operational in November 2019, with new and upgraded Air Ground Lighting (AGL) installed in February 2020. By March 2020, the newly installed Air Traffic Control Equipment became fully operational. While SAA is currently awaiting the final shipment for spare parts for these AGL, this does not affect this indicator because all systems are now operational, and the spare parts were purchased using available contingency funds from the project.
9.2 Intermediate Indicator Two: Rehabilitation of APW – The rehabilitation of the apron and runway at APW was completed in September 2019. The rehabilitation has significantly improved APW’s pavement structure and airside drainage systems, making it more resilient to extreme weather.
9.3 Intermediate Indicator Three: Achievements of Fire Standards at APW – With APW originally at a Category 8 Fire Standard, the purchasing of two refurbished Aircraft Rescue and Fire‐fighting (ARFF) vehicles has upgraded their standard to a Category 10.
9.4 Intermediate Indicator Four: Successful implementation of agreed training plan. – All training plans by SAA, CAD and TISCD were completed by December 2020. Due to unavailability of some trainings online, CAD and TISCD closed their training programmes in mid‐2020, while SAA completed their training programme in December 2020.
9.5 Intermediate Indicator Five: SAA publishes periodic reports on GRM resolution rates – GRM resolution rates have continuously been published on the SAIP website since 2018. At the
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completion of the APW Pavement works in 2019, no new grievances from external sources were received by the project.
9.6 Intermediate Indicator Six: 10 women participants in Management‐training and career fast‐track support program – In October 2019, 22 female staff were enrolled in and completed a Leadership Programme to enhance their knowledge and skills in Management Training and help provide a career support program for their needs.
9.7 Intermediate Indicator Seven: Grievances are responded to within 14 days – All grievances received have been acknowledged and responded to within 14 days of receipt. It should be noted that some grievances took longer than 14 days to resolve, but SAA acknowledged their grievance within the 14‐day period requirement.
10.0 Financial Management – The Total Project Funds available at the completion was equivalent USD$46.85m of this ninety percent (90%) was provided by IDA in (Grants & Credit) with the remaining USD$4.65m being counterpart funds provided by the GoS.
At completion, the Project has disbursed a Total of USD$46.38m from both IDA and GOS funding sources. The project reached ninety‐nine (99%) disbursement rate with a remaining contingency estimated at US$ 470,854.1
Table 2: Financial Summary
COMPONENTS IDA GOS TOTAL FUNDED FUNDED PROJECT % (USD$m) (USD$m) EXPENDITURE (USD$m)
A Aviation Infrastructure Investment 37.38 4.61 41.98 91%
B Aviation Sector Reform and Training 1.01 1.01 2%
C Strengthening Airport Operations and 0.94 0.02 0.95 2% Management Capacity
D Project Implementation Support 2.41 0.03 2.44 5%
TOTAL 41.73 4.65 46.38 100%
1-NB: Based on Estimate at 28 Feb 21 (pending final payment processing & audit completion)
11.0 Contribution of supporting activities to the PDO’s – A range of supporting activities were also implemented under SAIP contributed to the achievement of the PDO’s for the project. These include the replacement of the existing water tanks that serviced the SAA Administration Building, the supply of new electronics for SAA staff to be in line with ongoing online services, supply of a range of maintenance tools and equipment, and the purchase of Covid‐19 related equipment such as thermal cameras and sanitary gates. These purchases have improved SAA’s operational services, and have placed them in a better position to respond to the changing aviation conditions worldwide due to the Covid‐19 pandemic.
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Assessment of key factors that affected performance and outcomes 12.0 Implementation Issues – There were a number of challenges faced throughout the implementation of the project. The main key implementation issues included the following:
i. Unrealistic timeframes set up in the planning phase of the project: When the project was initially set up, most, if not all activities had been planned to be signed by 2015 (one year after effectiveness). However, procurement challenges made it evident that these timeframes could not be achieved, and that both WB and GoS procurement processes took longer than planned. Contract durations were heavily underestimated, and this resulted in multiple variations to extend completion times for most contracts. Table 3 shows a summary of actual timeframes for different types of contract.
Table 3: Duration of different types of contracts
Type of Contract Duration (months) Average Min Max Consulting Services ‐ Individual 26 6 53 Consulting Services ‐ Lump Sum 10 2 24 Consulting Services ‐ Time Based 39 14 62 Goods ‐ ICB 18 6 33 Goods ‐ Shopping 2 0.2 10 Works ‐ ICB 23 23 23 Works ‐ Shopping 5 3 7 Non‐Consulting Services 0.3 0.3 0.3
While shopping (request for quotations) is usually faster in delivery times, larger contracts procured through International Competitive Bidding (ICB) and Consulting Services (mainly for design) usually took up to two (2) years to implement. Some specific examples are listed in Table 4 highlighting how design contracts duration tend to last on average about 20‐22 months. Some reasons that were encountered during these design phases is that review of designs take longer than planned, and most design contracts include the procurement phase of the installation or construction work. The procurement phase tends to take a lot longer, especially if the initial procurement is unsuccessful and needs to be re‐procured, as was the case with the Design Contract for the Air Navigation Aids, Air Traffic Control Equipment & AGL. Although the design documents were ready in early 2017, the initial procurement was cancelled in September 2017, and re‐launched in November 2017 with the installation contractor finally signed in June 2018, resulting in a year’s delay to this activity, and an additional 12 months’ extension required for the design contract.
Table 4: Examples of contracts exceeding original timeframe
Duration Description Type Company Currency Amount (months) Design, Supervision and Airways Consulting Services System Administration for the Corporation of NZD 101,920.00 24 ‐ Lump Sum VSAT New Zealand
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AirBiz Aviation Consulting Services Airport Master Plan for Samoa Strategies USD 326,849.00 21 ‐ Lump Sum Limited Design, Procurement & Airways Supervision of Air Navigation Consulting Services Corporation of USD 316,711.00 21 Aids, Air Traffic Control ‐ Lump Sum New Zealand Equipment & AGL (APW) Design and Supervision JV INECO Consulting Services Services Faleolo Airport (Spain) & SMEC USD 396,374.99 20 ‐ Lump Sum Pavement (Australia) Airfield Lighting, Power Indra Australia Systems and Air Traffic Goods ‐ ICB AUD 4,966,778.16 33 Pty LTD Control Equipment Supply and Delivery of Aircraft Firetrucks Goods ‐ ICB USD 1,049,133.30 24 Rescue Fire‐Fighting Vehicles Unlimited Physical Works for Airport Downer New Pavements, Drainage and Works ‐ ICB Zealand USD 34,236,615.50 23 Service Infrastructure, Faleolo Limited International Airport, Samoa
i. Cost Estimates and Awarded Amounts exceeding allocated budgets: In 2017, the cost estimate for APW Pavement Works taken from the Design & Supervision Consultant (D&S) cost estimate and value‐engineered by the TFSU, was in excess of the available allocated budget, risking going out to market with no firm commitment of available funds. This caused a delay in kick starting the tenders for these works and multiple discussions were held between the GoS, SAA and WB to overcome this issue. Fortunately, the Contractor that was awarded the work, came within the allocated budget for the works.
This same issue also came up during the NAVAIDS design contract, where multiple revisions of their final design had to be made in efforts to reduce the cost estimate for the works. What was originally planned to be advertised in December 2016, was only released for tender in March 2017; a three‐month delay due to revisions of final designs. Unfortunately, the first procurement launch was unsuccessful and re‐launched in November 2017. When the bids were received, all successful bid was above the available budget. The contract was awarded as there was contingency in the project. However, with the full use of the contingency, when a critical variation for APW Pavement works was needed, the rest of the planned activities lost funding, and GoS had to seek an additional financing (AF2) from the WB to complete the remaining activities.
ii. Procurement Challenges – There have been multiple procurement delays for various reasons. Some of these are highlighted below. a. STEP system ‐ At its initiation in late 2016, the introduction of the WB’s new STEP system (Systematic Tracking of Exchanges in Procurement) created major delays in the implementation of some activities. An example is the PST PA which has taken two months to be given the all clear from STEP in 2017. With the introduction of the STEP, the Bank’s usual 7‐day turnaround period turned into weeks for a response and sometimes even months for an NOL (such as the SAIP Project Accountant).
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b. Regional vs. National Procurement – Mid‐way through the project, there was still some confusion on the correct procurement processes to be followed at the national level. In April 2017, these processes were finally clarified, and the National Tenders Board (NTB) articulated their involvement in all tender awards, whether it be locally or regionally procured, and subsequent Cabinet Approval should the threshold exceed the NTB’s Approval threshold, despite the agreement at the inception of the SAIP, that regionally procured contracts would go to NTB for “Information Papers” only. This was accepted, and procurement approval processes started to improve since then. However, this initial confusion still contributed to delays in the implementation of some contracts such as the Aviation Sector Strategy. c. OAG prolonged review periods ‐ The Office of the Attorney General (OAG) also clarified during the Mid‐Term review in 2017, that all contracts must be cleared by their office before execution. However, their prolonged reviews have had impacts on some of the contracts such as the Interim Repair Works and the Aviation Sector Strategy. Earlier involvement of the OAG as well as the engagement of the MOF has helped improve their turnaround times for contracts that were implemented later. d. Evaluation criteria and award of contracts – Contract management of major contracts have had to combat delays and challenges due to evaluation criteria of tenders and resulting in the selection of consultants and contractors. For example, although the initial D&S Consultant for the APW Pavement Works scored the highest in evaluations, part of the termination of their contract was also due to communication problems between SAIP/SAA and the Consultant. With a 12‐hour time difference of the two parties, holding meetings became an inconvenience, and the slow responses to queries also affected this contract negatively. In addition, there have been cases where the consultant or contractor has had a completely different interpretation of the services or works required. This includes contracts like the SAIP PA with BDO Samoa, which had to be terminated due to disagreement on the contractual terms. The Interim Repair works is another example of where the contractor did not understand the magnitude of the works required, and as a result, the project suffered major delays in the implementation of these “emergency” repair works. This was a problem for SAA at the time, as it could compromise their certification under Part 139, if they could not provide a safe runway and apron for operation.
As a way forward, the Tender Documents need to be closely reviewed in terms of clearly worded Terms of References and for Bid Evaluations, the weighting assigned to regional experiences of consultants and contractors needs to be higher/prioritized. At the same time, it was proposed for the contract management team (TFSU Contracts Team + SAIP Project Manager) to be involved in the negotiations of contracts to ensure that the consultant/contractor/supplier have a clearer understanding of the requirements of the Terms of Reference/Works and expectations of the Client in the execution of the contract are clearly understood. These worked well in later contracts when there were negotiations for a new contractor for the Apron Emergency Repair Works, and negotiations for a Supervision Consultant for the Pavement works. e. Misinterpretation of Tax Laws by Consultants – Initiated due to the many other local projects experiencing the same tax issues in Samoa, a workshop hosted by MOF inviting Ministry for Revenue (MfR) staff, was held in September 2016 in efforts to clarify how taxes are correctly applied and consultant’s/contractor’s tax obligations under Samoan Laws. By mid‐2017, the MfR still had yet to release a confirmation of how the tax laws are applied for consultancy and civil works contracts, and as such,
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left the issue open for interpretation. This had affected the implementation progress in that it prolonged negotiations (such as the Aviation Sector Strategy Contract) and in some cases, resulted in the termination of negotiations (such as the negotiations with BECA for the TA & Supervision Consultancy Services) due to disagreements on the interpretation of tax laws. Currently in the RFPs, it is the Consultants/Contractors’ responsibility to find out how the tax laws are applied, but at the same time, still results in different interpretations by different parties. However, in later contracts, signed in 2019, during evaluations, the panel consulted MfR to confirm the correct taxes that would apply to each specific contract. MfR were able to clarify this for all contracts and this greatly helped in resolving this issue that was encountered in the beginning stages of the project implementation. iii. Capacity challenges of staff (in fully understanding the procurement and GoS processes): Capacity challenges of the project staff in fully understanding Government processes had also contributed to some delays, by bypassing MOF, OAG & NTB for previous contracts. This has since been reprimanded during the Mid‐term and corrected going forward.
iv. Major contract delays due to poor contractor planning and shipment delays: The acquisition of ATC package took a total of 20 months to complete, and was the slowest activity to be completed, with a total of eight‐months delay. This activity was initially scheduled to be completed by April 2019, but an extension was granted up to July 2019. However, further delays occurred, and the activity was only completed in March 2020, which was eight months after the granted extension, but 11 months after the original completion date). Spare parts were expected in February 2020 but the last shipment has yet to arrive as at 31 December 2020. The delays in this contract was due to the contractor’s underestimation of the works required, and their poor planning led to multiple shipment delays throughout their contract period. Liquidated damages were eventually applied to this contract due to the lengthy delays, but this negatively impacted the projects’ implementation, as it was the last major activity that needed to be completed.
v. Impact of Measles outbreak in 2019: In October 2019, the outbreak of the measles virus in Samoa claimed the lives of more than 80 people mainly children. The Head of State declared a State of Emergency (SOE), restricting local movement and international travel, limiting working hours for Government staff and in the private sector employment. Public servants were advised to stay home if they fall under the high risk categories, including staff with young children and with certain medical conditions. These restrictions impacted on the project directly and indirectly mainly the delays in ongoing activities at the time. Some of the SAA and project related staff stayed home during the SOE, while other SAA staff prioritized the assistance to the frontline essential services to monitor activities at the airport and ensure compliance of travel with the SOE restrictions. During and after the measles epidemic, the virtual means of meetings and communications was slowly introduced and utilized, to ensure discussions and updates on progress of project’s remaining activities were ongoing. vi. The COVID‐19 pandemic affecting shipment and delivery times: In March 2020, there was a surplus contingency in the project due to overseas trainings being cancelled because of the COVID‐19 pandemic. With the contingency, SAA opted to purchase goods to help improve their operational services and to be in line with the changing aviation conditions. With everyone turning to online services, SAA opted to purchase new laptops, PCs, smart boards and related electronics to improve their accessibility to online services. They also purchased
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maintenance equipment to continue maintaining their aerodromes to be in line with Part 139 conditions. Some of these equipment however, experienced some delays in shipment due to COVID‐19 restrictions, with some ports returning the shipments if a positive case was found. This affected three shipments for activities under SAIP, of which could not be completed by 31 December 2020. The remaining payments on these contracts, will now be paid by the GoS and SAA. Evaluation of Borrower’s Performance and Lessons Learned 10. Borrower’s Performance: Despite the numerous implementation issues that arose throughout the project implementation period, the GoS and the SAA have been able to work alongside the WB and different stakeholders to overcome the challenges faced. SAA in particular, have had to deal with hard decisions such as terminating contracts due to non‐performance, terminating negotiations during bid evaluations, and applying liquidated damages for delayed delivery. Although not all the contracts under SAIP were completed by the project closing date, this has not affected the successful closure of SAIP because these were additional activities implemented to make use of the contingency funds. A list of completed contracts is found in Annex 1.
Overall, the project has seen the following achievements: Successful completion of 61 contracts as of 31 December 2020; Successful completion of trainings for SAA, CAD & TISCD; No cost overruns for the project; and Achievement of all project indicators (both primary and intermediate).
11. Recommendations/Proposed Way Forward: With the numerous implementation issues outlined above, it is proposed that lessons learned from these issues will be used moving forward for future projects. Lessons learned include the following:
Setting realistic timeframes for procurement and contract durations – This will help to improve indicator performances when comparing planned vs. actual times for implementation. Having realistic contract duration times will also minimize contract variations and time extensions; Earlier engagement of OAG with regards to pre‐clear contracts before releasing for tender – This will assist in speeding up the procurement process; Engagement of OAG, MOF, MfR & PST during negotiations of contracts – the involvement of all Government agencies that play a direct role in contracts will help alleviate further complications and potential variations during contract implementation; Earlier establishment of evaluation committees – this will improve procurement timelines; Earlier engagement of MOF upon receipt of cost estimates, so they are aware of any cost implications to the project – this will help avoid surprises and keep the EA informed of budgetary constraints; Re‐assessing evaluation criteria to suit Client’s needs; and Continuous capacity building for staff in terms of procurement, contract management and financial management – Since there is always the issue of staff turnover, it is
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recommended that continuous capacity building is offered for staff working on the project.
Despite the slow start in the beginning of the project, good progress was seen after the signing of the APW Pavement works, with the financial disbursement rate increasing rapidly and the project closing at a 99% disbursement rate.
Proposed arrangements for future operation of the project
For future projects, it is highly recommended that lessons learnt from SAIP be considered and used to improve the planning phase of a new project. The success and rating of a project is highly dependent on how the actual performance of the Borrower fairs against the planned outcomes. The current structure of MOF as EA, SAA as IA and a separate PST to manage the project, with TISCD providing oversight, has worked relatively well for SAIP. There has been strong coordination most times, and all parties have always come together to find solutions to challenges and issues that arose for the project.
In moving forward, the outcomes need to have realistic timeframes, and need to acknowledge the current capacity of the staff that will be implementing the project. Lessons learned from procurement and contract management challenges must also be taken into account, so that Bidding Documents, Terms of References and Scope of Works are clearly defined in order to avoid ambiguous wording which could complicate and lead to multiple variations in contracts.
Overall, SAIP has been a challenging development with multiple issues, however, the coordination between the different stakeholders, and the effort put in by all parties, has helped bring this project to a successful completion.
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Annex 1: Completed Contracts
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Assessment of Fire Consulting Tenders, Faleolo SAA/IC/S‐PP03 Services ‐ Ross Riddell 7‐Apr‐14 23‐May‐14 23‐May‐14 USD 27,172.00 ‐ International 27,172.00 27,172.00 Lump Sum Airport, Samoa
Testing (Coring) of Consulting Runway Pavement SAA/NCS/A‐PP01.1 Services ‐ Fulton Hogan Ltd 11‐Aug‐14 3‐Nov‐14 3‐Nov‐14 NZD 68,149.50 ‐ ‐ Faleolo Airport 68,149.50 68,149.50 Lump Sum Pavement
FWD Testing for Consulting Data Collection SAA/NCS/S‐PP01.2 Faleolo Airport, Services ‐ 5‐May‐14 24‐Nov‐14 24‐Nov‐14 USD 55,825.00 ‐ Limited 55,825.00 55,825.00 Samoa Lump Sum
Supply and Delivery of Twin Cab Utility Goods ‐ SAA/PST/S‐D46 Ford Samoa Ltd 24‐Nov‐14 16‐Feb‐15 16‐Feb‐15 WST 85,000.00 ‐ Vehicle for SAIP, Shopping 85,000.00 85,000.00 Samoa
Supply of Fire Goods ‐ PSL Fire & Safety SAA/SHP/S‐A09 Protective 24‐Jan‐15 30‐Jun‐15 30‐Jun‐15 NZD 95,315.00 ‐ Shopping Ltd, New Zealand 95,315.00 95,315.00 Equipment
Integrated Environmental and Consulting
SAA/IC/S‐B06.15 Social Services ‐ C B Group 31‐Jul‐15 26‐Oct‐15 26‐Oct‐15 USD 21,000.00 ‐ 21,000.00 21,000.00 Management Plan Lump Sum (IESMP)
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Topographical Survey Services ‐ Non‐ Sepulona
SAA/NCS/S‐A38 Faleolo Consulting Surveying 13‐Nov‐15 21‐Dec‐15 21‐Nov‐15 USD 51,300.00 ‐ 51,300.00 51,300.00 International Services Limited Airport, Samoa
Integrated Environmental and Social Consulting AECOM New SAA/SSS/S‐B06.15A Management Plan Services ‐ 18‐Nov‐15 24‐Feb‐16 24‐Feb‐16 NZD 16,537.00 ‐ Zealand Limited 16,537.00 16,537.00 (IESMP) ‐ Upgrade Lump Sum of Airport Terminal and Runway
Supply of VSAT Satellite Goods ‐ Hills Limited / SAA/SHPG/S‐A06.1 Communication 29‐Sep‐15 26‐Feb‐16 26‐Feb‐16 USD 135,506.00 ‐ Shopping Step Electronic 135,506.00 135,506.00 Equipment (SAMOA)
Training Needs Consulting Peet Aviation ‐ SAA/IC/S‐C08 Analysis for SAA Services ‐ 24‐Aug‐15 4‐Mar‐16 4‐Mar‐16 NZD 60,638.00 ‐ Brian Whelan 60,638.00 60,638.00 and MWTI (CAD) Individual
Geotechnical Investigation of Consulting
SAA/NCS/S‐A39 Apron Expansion ‐ Services ‐ Geosolve Limited 25‐Jan‐16 29‐Apr‐16 29‐Apr‐16 NZD 90,250.00 ‐ 90,250.00 90,250.00 Faleolo Airport Lump Sum Pavement, Samoa
Personnel Licensing Consulting System and ASPEQ Ltd, New SAA/ICS/S‐B06.16 Services ‐ 2‐Dec‐15 5‐May‐16 5‐May‐16 USD 39,780.00 ‐ Technical Manuals Zealand 39,780.00 39,780.00 Lump Sum MWTI (CAD)
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Consulting SAIP PST Project Honsol Chan SAA/PST/S‐D39 Services ‐ 24‐Apr‐15 30‐Jun‐16 30‐Jun‐16 WST 159,862.50 ‐ Accountant Tung 159,862.50 159,862.50 Individual
Installation of VSAT Works ‐ Kordia Ltd, New SAA/SHPW/S‐A06.3 Satellite Equipment 17‐May‐16 31‐Aug‐16 31‐Aug‐16 NZD 49,735.99 ‐ Shopping Zealand 49,735.99 49,735.99 (SAMOA)
Design and Consulting JV INECO (Spain) Supervision SAA/CF/S‐A14.1 Services ‐ & SMEC 30‐Apr‐15 16‐Dec‐16 16‐Dec‐16 USD 301,275.00 Services Faleolo 95,099.99 396,374.99 396,374.99 Lump Sum (Australia) Airport Pavement
Samoa Project Consulting Ioane Viliamu SAA/ICS/S‐D38 Support Team Services ‐ 11‐Jul‐14 14‐Jan‐17 14‐Jan‐17 WST 281,358.00 Punivalu 53,172.55 334,530.55 334,530.55 Project Manager Individual
Airways Design, Supervision Consulting Corporation of and System SAA/SSS/S‐A06.2LS Services ‐ New Zealand 26‐Feb‐15 28‐Feb‐17 28‐Feb‐17 NZD 101,920.00 ‐ Administration for 101,920.00 101,920.00 Lump Sum (Airways the VSAT International NZ)
JV of Shanghai Construction Interim Runway Group Samoa Co Repairs ‐ Crack SAA/SHPW/S‐ Works ‐ Ltd and Beijing Bandaging, Faleolo 20‐Oct‐16 31‐May‐17 27‐Mar‐17 USD 226,143.60 ‐ A15.4C Shopping Jingold 226,143.60 226,143.60 International Construction Airport China (SCG‐BJC JV)
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
JV of Shanghai Construction Interim Runway Group Samoa Co Repairs ‐ Apron SAA/SHPW/S‐ Works ‐ Ltd and Beijing Repair, Faleolo 20‐Oct‐16 10‐May‐17 10‐May‐17 USD 79,771.37 ‐ A15.4B Shopping Jingold 5,322.00 5,322.00 International Construction Airport China (SCG‐BJC JV)
Interim Apron SAA/SHPW/S‐ Repairs ‐ Faleolo Works ‐ Ott Constructors 18‐Aug‐17 8‐Dec‐17 22‐Nov‐17 USD 300,096.86 ‐ A15.4D International Shopping Ltd 300,096.86 300,096.86 Airport
Supply and Installation Automatic Dependent Indra Australia SAA/ICBG/S‐A03.1 Goods ‐ ICB 14‐Jul‐16 31‐Jan‐18 2‐Dec‐17 AUD 114,270.00 ‐ Surveillance Pty Limited 114,270.00 114,270.00 Broadcast (ADS‐B) Ground Stations (SAMOA)
Design, Procurement & Airways Supervision of Air Consulting Corporation of
SAA/CF/S‐A14.2.1 Navigation Aids, Air Services ‐ New Zealand 31‐May‐16 30‐Apr‐18 13‐Feb‐18 USD 316,711.00 ‐ 316,711.00 316,711.00 Traffic Control Lump Sum (Airways Equipment & AGL International NZ) (APW)
Consulting Aviation Sector SAA/CF/B03 Services ‐ IOS Partners Inc 21‐Apr‐17 31‐Mar‐18 27‐Mar‐18 USD 257,800.28 ‐ Strategy 257,800.28 257,800.28 Lump Sum
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Supply and Delivery
of Aircraft Rescue Firetrucks SAA/G/S‐A08 Goods ‐ ICB 15‐Jun‐16 21‐May‐18 21‐May‐18 USD ‐ 1,049,133.3 Fire‐Fighting Unlimited 1,049,133.30 1,049,133.30 0 Vehicles
Delivery, Installation, Testing, Calibration South Pacific SAA/SHPG/S‐A03.2 Goods ‐ ICB 18‐Jan‐18 17‐Jul‐18 10‐Jul‐18 USD 29,804.00 ‐ and Commissioning Avionics Ltd. 29,804.00 29,804.00 of ADS‐B Out Avionics, Samoa
GUANGZHOU SAA/ICBG/S‐A44.2 Supply of Goods ‐ TOPMEDI 5‐Apr‐18 12‐Jul‐18 11‐Jul‐18 USD 451.92 Item 3 stretchers Shopping COMPANY 118.08 570.00 570.00 LIMITED
AIRCRAFT PASSENGER UNIT EXPORT SAA/ICBG/S‐A44.1 BOARDING / Goods ‐ ICB 18‐Oct‐17 15‐Jul‐18 15‐Jul‐18 USD 62,736.76 ‐ LIMITED 62,736.76 62,736.76 DISEMBARKING GANGWAYS
Mercury SAA/ICBG/S‐A44.2 Supply of aisle Goods ‐ Products South 28‐Mar‐18 26‐Jul‐18 19‐Jul‐18 USD 3,050.00 ‐ Item 2 chairs Shopping 3,050.00 3,050.00 Ltd, UK
Consulting AirBiz Aviation Airport Master Plan SAA/CF/S‐C07 Services ‐ Strategies 1‐Nov‐16 31‐Jul‐18 26‐Jul‐18 USD 326,849.00 ‐ for Samoa 326,849.00 326,849.00 Lump Sum Limited
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Consulting SAIP Aviation SAA/ICS/S‐B06.2 Services ‐ Steve Douglas 4‐Nov‐16 30‐Nov‐18 30‐Nov‐18 USD 78,000.00 Adviser 40,900.00 118,900.00 118,900.00 Individual
Technical Advisory Services for Faleolo International Consulting SAA/QCBS/S‐ Airport Design and LYON Associates, Services ‐ 18‐Jan‐18 31‐Jul‐21 15‐Mar‐19 USD 1,064,187.2 A14.1A Build, Samoa Inc. 1,023,286.28 40,901.00 1,064,187.28 Time Based 8 RUNWAY, TAXIWAY AND APRON
SAA/SHPG/S‐ Supply of Goods ‐ Motivation 6‐Feb‐19 30‐Jun‐19 13‐Nov‐19 USD 4,904.25 ‐ A44.2a LOT 3 Wheelchairs Shopping Australia 4,904.25 4,904.25
Physical Works for Airport Pavements, Drainage and
Service Downer New SAA/ICBW/S‐A15.4 Works ‐ ICB 18‐Jan‐18 11‐Oct‐19 27‐Nov‐19 USD 2,835,865.5 34,236,615. Infrastructure, Zealand Limited 31,400,750.00 34,236,615.50 0 50 Faleolo International Airport, Samoa
Supply of Water Goods ‐ Samoa Superior SAA/SHPG/S‐A31.3 19‐Sep‐19 20‐Feb‐20 20‐Feb‐20 WST 118,450.00 ‐ Tanks Shopping Poly Products 118,450.00 118,450.00
Technical Support Airways for the VSAT Point Consulting Corporation of
SAA/SSS/S‐A06.2TB to Point Services ‐ New Zealand 25‐Feb‐15 25‐Feb‐17 31‐Mar‐20 NZD 20,656.00 ‐ 20,656.00 20,656.00 Aeronautical Time Based (Airways Network International NZ)
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Supply of SAA Goods ‐ SAA/SHPG/S‐C10 Comptech Xtra 19‐May‐20 17‐Aug‐20 26‐Jun‐20 WST 123,220.00 ‐ Electronics Shopping 123,220.00 123,220.00
Samoa Supply of Training Goods ‐ SAA/SHPG/S‐B10 Stationery & 8‐Jun‐20 7‐Aug‐20 1‐Jul‐20 WST 27,360.00 ‐ Resources Shopping 27,360.00 27,360.00 Books Ltd
Samoa Supply of Safety Goods ‐ SAA/SHPG/S‐C11 Stationery & 8‐Jun‐20 7‐Aug‐20 4‐Aug‐20 WST 9,847.50 ‐ Gear Shopping 9,847.50 9,847.50 Books Ltd
Supply of Thermal Cameras for Goods ‐ ConnectIT Co. SAA/SHPG/S‐A48 Faleolo 7‐Aug‐20 5‐Nov‐20 14‐Sep‐20 WST 39,198.00 ‐ Shopping Ltd 39,198.00 39,198.00 International Airport
Supply of Goods ‐ SAA/SHPG/S‐A51 Jacobs Digital 28‐Jul‐20 26‐Oct‐20 15‐Sep‐20 NZD 14,977.35 ‐ Binoculars for ATC Shopping 14,977.35 14,977.35
Supply of Smart Goods ‐ SAA/SHPG/S‐C12 Comptech Xtra 31‐Jul‐20 29‐Oct‐20 28‐Sep‐20 WST 103,437.00 ‐ Boards for SAA Shopping 103,437.00 103,437.00
Supply of RFS Goods ‐ SAA/SHPG/S‐A53 Styxmill Co. Ltd 30‐Jul‐20 26‐Oct‐20 26‐Oct‐20 NZD 47,100.00 ‐ Uniform Shopping 47,100.00 47,100.00
Supply of CCTV Goods ‐ SAA/SHPG/S‐A50 Comptech Xtra 7‐Aug‐20 27‐Oct‐20 27‐Oct‐20 WST 21,909.00 ‐ Cameras Shopping 21,909.00 21,909.00
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Supervision of Air Airways Navigation Aids, Air Consulting Corporation of
SAA/CF/S‐A14.2.2 Traffic Control Services ‐ New Zealand 31‐May‐16 30‐Dec‐20 27‐Nov‐20 USD 245,998.00 396,291.49 364,347.30 150,293.49 Equipment & AGL Time Based (Airways (APW) International NZ)
Samoa Supply of RFS Goods ‐ SAA/SHPG/S‐A49 Stationery & 7‐Aug‐20 21‐Dec‐20 21‐Dec‐20 WST 46,748.00 ‐ Equipment for SAA Shopping 46,748.00 46,748.00 Books Ltd
Supply of New Air‐ Samoa Goods ‐ SAA/SHPG/S‐A45.3 conditioning units Stationery & 17‐Dec‐20 31‐Dec‐20 23‐Dec‐20 WST 25,095.00 ‐ Shopping 25,095.00 25,095.00 for SAA x 6 Books Ltd
Supply of Mowers x Goods ‐ Bluebird Lumber SAA/SHPG/S‐A57 17‐Dec‐20 31‐Dec‐20 23‐Dec‐20 WST 7,992.00 ‐ 8 (Brushcutters) Shopping & Hardware 7,992.00 7,992.00
Supply of Rider Goods ‐ Bluebird Lumber SAA/SHPG/S‐A58 17‐Dec‐20 31‐Dec‐20 23‐Dec‐20 WST 29,430.00 ‐ Mowers x (3 pcs) Shopping & Hardware 29,430.00 29,430.00
Supply of Water Goods ‐ Bluebird Lumber SAA/SHPG/S‐A59 Pumps (x 10 small 17‐Dec‐20 31‐Dec‐20 23‐Dec‐20 WST 14,047.00 ‐ Shopping & Hardware 14,047.00 14,047.00 pumps)
Digital PCs Goods ‐ SAA/SHPG/S‐C13 (Digitalization of Comptech Xtra 17‐Dec‐20 31‐Dec‐20 23‐Dec‐20 WST 13,596.00 ‐ Shopping 13,596.00 13,596.00 SAA Records) x 4
Software License Goods ‐ Easy Data Access SAA/SHPG/S‐C15 for Digitalization of 17‐Dec‐20 31‐Dec‐20 25‐Dec‐20 USD 23,650.00 ‐ Shopping LLC 23,650.00 23,650.00 SAA Records
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Technical Advisory and Supervision Services for the Consulting
SAA/CQS/S‐A14.1C Physical Works at Services ‐ GHD 11‐Jun‐19 30‐Dec‐20 30‐Dec‐20 NZD 614,562.12 ‐ 614,562.12 543,554.26 Faleolo Time Based International Airport, Samoa
Supply of an Goods ‐ Grand Pacific SAA/SHPG/S‐A47 3‐Sep‐20 23‐Dec‐20 30‐Dec‐20 WST 122,337.00 ‐ Excavator for SAA Shopping Equipments Ltd 122,337.00 122,337.00
RFS Training & Drill Goods ‐ Bluebird Lumber SAA/SHPG/S‐A54 17‐Dec‐20 31‐Dec‐20 30‐Dec‐20 WST 20,265.20 ‐ Equipment Shopping & Hardware 20,265.20 20,265.20
Supply of Drones Goods ‐ SAA/SHPG/S‐A55 Greenology 17‐Dec‐20 31‐Dec‐20 30‐Dec‐20 WST 19,090.00 ‐ (2) Shopping 19,090.00 19,090.00
Supply of Fencing Goods ‐ Bluebird Lumber SAA/SHPG/S‐A56 17‐Dec‐20 31‐Dec‐20 30‐Dec‐20 WST 152,798.00 ‐ Materials Shopping & Hardware 152,798.00 152,798.00
Digital Printer Goods ‐ SAA/SHPG/S‐C14 (Digitalization of Ricoh Samoa 17‐Dec‐20 31‐Dec‐20 30‐Dec‐20 WST 28,865.00 ‐ Shopping 28,865.00 28,865.00 SAA Records) x 1 pc
Supply Interactive Goods ‐ SAA/SHPG/S‐C16 Ricoh Samoa 17‐Dec‐20 31‐Dec‐20 30‐Dec‐20 WST 74,619.92 ‐ Board x 1 Shopping 74,619.92 74,619.92
Goods ‐ SAA/SHPG/S‐C17 Supply Laptops x 5 Greenology 17‐Dec‐20 31‐Dec‐20 30‐Dec‐20 WST 28,025.00 ‐ Shopping 28,025.00 28,025.00
Type (Goods/Con Original Final Total Actual Curre Approved Contract Description sulting Company Signed Date Completion Contract Amount Completion Amount Completion Date ncy Variations Services/W Date Amount Paid orks)
Samoa Project Consulting Rusetaneti
SAA/ICS/S‐D38.1 Support Team Services ‐ Nerissa Suluvale 17‐Aug‐16 31‐Dec‐20 31‐Dec‐20 WST 260,652.00 315,516.97 576,168.97 576,168.97 Project Manager Individual Taaloga‐Kolia
Consulting SAIP Accounting SAA/SSS/D‐39.2A Services ‐ KVA Consult 12‐May‐17 31‐Dec‐20 31‐Dec‐20 WST 209,579.80 Support 95,397.44 304,977.24 304,977.24 Time Based
Supply of a Sanitary Gate for Faleolo Goods ‐ JAPS Group Pte SAA/SHPG/S‐A52 6‐Aug‐20 24‐Dec‐20 3‐Feb‐21 USD 39,800.00 ‐ International Shopping Ltd 39,800.00 37,810.00 Airport
Airfield Lighting,
SAA/ICBG/S‐ Power Systems and Indra Australia Goods ‐ ICB 29‐Jun‐18 15‐Dec‐20 24‐Mar‐21 AUD 4,480,938.8 A05/7/13 Air Traffic Control Pty LTD 4,750,008.09 216,770.07 4,966,778.16 5 Equipment
Goods ‐ JAPS Group Pte SAA/SHPG/S‐A46 Supply of Slashers 12‐Jun‐20 24‐Dec‐20 24‐Mar‐21 USD 45,000.00 ‐ Shopping Ltd 45,000.00 42,750.00
The World Bank Samoa Aviation Investment Project (P143408)
ANNEX 6. SUPPORTING DOCUMENTS
Government of Samoa: Strategy for the Development of Samoa (2012‐2016) Government of Samoa: Samoa 2040 Samoa Safety & Security Levy Fund Expenditure Framework, 2015 Samoa USOAP SATE ASSISTANCE REPORT Samoa ICAO USOAP OLF Evidence,2010 World Bank Country Partnership Strategy (CPS) (2013‐2016) World Bank: Tourism: Pacific Possible Background Paper No. 4 World Bank: Guidance Note on Discounting Costs and Benefits in Economic Analysis of World Bank Projects (May 2016) World Bank: Regional Partnership Framework for nine Pacific Island Countries for FY17‐21 (Report# 100997‐EAP) World Bank: Systematic Country Diagnostic (January 2016) of Eight Pacific Island countries
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