Company Air-Afrique Reinforcement Project
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AFRICAN DEVELOPMENT BANK MULTINATIONAL MULTINATIONAL COMPANY AIR-AFRIQUE REINFORCEMENT PROJECT PROJECT COMPLETION REPORT COUNTRY DEPARTMENT OCDW WEST REGION November 1999 TABLE OF CONTENTS Pages EQUIVALENTS, UNITS OF MEASURES, ACRONYMS AND ABBREVIATIONS ...................................................................................................(i) BASIC DATA ..............................................................................................................(ii)-(v) EXECUTIVE SUMMARY ...............................................................................................(vi) PROJECT MATRIX ........................................................................................................(vii) 1 INTRODUCTION..................................................................................................................1 2 PROJECT OBJECTIVES ......................................................................................................2 3 PROJECT FORMULATION AND DESCRIPTION ...........................................................2 Project Formulation ...............................................................................................................2 Project Description ................................................................................................................2 4 PROJECT IMPLEMENTATION .........................................................................................4 Effectiveness, Start-up and Implementation Schedule...........................................................4 Modifications..........................................................................................................................5 Impacts of Modifications on Project Objectives ..................................................................5 Procurement of Goods and Services ......................................................................................6 Reporting ................................................................................................................................6 Project Outputs ......................................................................................................................6 Costs, Financing and Disbursements .....................................................................................7 Performance of Suppliers and Contractors ............................................................................8 5 PROJECT PERFORMANCE.................................................................................................8 Institutional Performance ......................................................................................................8 Operational Performance .......................................................................................................9 Economic Performance ........................................................................................................10 Financial Performance .........................................................................................................11 6 SOCIAL AND ENVIRONMENTAL IMPACT ..................................................................13 Social Impact .......................................................................................................................13 Environmental Impact ..........................................................................................................13 7 PROJECT SUSTAINABILITY ..........................................................................................13 Sustainability Factors ..........................................................................................................14 Technical Sustainability ......................................................................................................14 Financial Sustainability .......................................................................................................14 8 PERFORMANCE OF THE BANK AND THE BORROWER ...........................................15 Bank Performance ...............................................................................................................15 Performance of the Borrower ..............................................................................................15 9 ASSESSMENT OF THE OVERALL PERFORMANCE OF THE PROJECT..................16 Achievement of Project Objectives ....................................................................................16 Project Costs ........................................................................................................................16 Duration of Project Implementation ...................................................................................16 Social and Environmental Impacts ......................................................................................16 Sustainability of the Project .................................................................................................17 Internal Rate of Return of the Project ..................................................................................17 Assessment of Project Overall Performance .......................................................................17 10 CONCLUSIONS, LESSONS AND RECOMMENDATIONS ...........................................17 Conclusions ..........................................................................................................................17 Lessons ................................................................................................................................18 Recommendations ................................................................................................................18 LIST OF ANNEXES No. of pages Annex 1 : Air Afrique Organizational Chart 1 Annex 2 : List of Shareholders of Air Afrique 1 Annex 3 : Air Afrique Fleet 1 Annex 4 : Status of Air Afrique's Debt 1 Annex 5 : Project Cost and Financing 1 Annex 6 : Disbursements Schedule by Source of Finance 1 Annex 7 : Summary Table of Modifications 1 Annex 8 : Summary Table of the Financial Trends 1 Annex 9 :Implementation Performance 1 Annex 10 : Bank Performance 1 Annex 11 : Development Impact 2 Annex 12 : Matrix of recommendations and Follow-up Actions 1 Annex 13 : Conditions Precedent to First Disbursement 1 This Project Completion Report was prepared by Mr. J.B. NGUEMA-OLLO, Electrical Engineer, OCDW.6 and a Consultant Civil Aviation Engineer, following their mission in the project area in December 1998. Contributions were received from Mr. M. LEKE, Transport Economist, OCDW.6 on the economic performance and from Mr. H. KAMOUN, Financial Analyst, OCDW.6 on Financial Performance. Further inquiries should be addressed to : Messrs. C.R. SPENCER Ag. Director OCDW Ext. 4041 M.L.B. ASKOFARE Ag. Division Manager OCDW.6 Ext. 4683 J.B. NGUEMA-OLLO Electrical Engineer, OCDW.6 Ext. 5276 i EQUIVALENTS, UNITS OF MEASUREMENT, ACRONYMS AND ABBREVIATIONS * Monetary Equivalents At appraisal At the PCR date Monetary Unit : CFAF CFAF 1 UA : 405.4120 CFAF 800.932 CFAF * Measurement Unit 1 kilometer (km) = 0.62 mil 1 meter (m) = 3.28 ft 1 centimeter (cm)= 0.394 inch 1 square kilometer (km2) = 0.384 square miles 1 hectare (ha) = 2.47 acres 1 litre (l) = 0.264 gal 1 kilogram (kg) = 2.204 lbs 1 ton (t) = 1000 kg * Acronyms and Abbreviations AC : Afrique Centrale (Central Africa) ADB : African Development Bank AFRAA : African Airlines Association ALPHA 3 : Logiciel pour système informatisé de vente des billets AOC : Afrique occidentale (West Africa) ATAF : Association des transporteurs aériens francophones (Association of Francophone Airlines) ATLAS : (Air France - IBERIA - LUFTHANSA - ALITALIA - SABENA) CID : Centre Industriel de Dakar (Dakar Industrial Centre) CMA : Centre de Maintenance d’Abidjan (Abidjan Maintenance Centre) CMAB : Centre de Maintenance de Brazzaville (Brazzaville Maintenance Centre) DAC : Civil Aviation Directorate FAA : Federal Aviation Administration (USA) GAETAN : Gestion automatique de l'enregistrement et du traitement des passagers IATA : International Air Transport Association ICAO : International Civil Aviation Organization JAR 145 : Joint Aviation Requirement KSSU : (KLM - SWISSAIR - SAS - UTA) PCB : Personnel commercial de bord PKT : Passager au kilomètre transporté PNT : Personnel navigant technique SEN : Sénégal SKO : Siège Kilomètre Offert SOC : Coefficient d'occupation des sièges (Seat Occupancy Coefficient) SODETRAF : Société pour le développement du transport aérien en Afrique SOGERMA : Société girondine d'entretien et de réparation de matériel aéronautique UTA : Union des transporteurs aériens Fiscal year 1st January - 31 December ii AIR AFRIQUE PROJECT FOR THE REINFORCEMENT OF THE MULTINATIONAL COMPANY AIR AFRIQUE A) BASIC DATA 1) Country : MULTINATIONAL 2) Project : Reinforcement of the Multinational Co. Air Afrique 3) Loan Number : B/AIR AFRIQUE/BEN/90/2 4) Borrower : Multinational Co. Air Afrique 5) Guarantors : * Republic of Côte d’Ivoire * Republic of Senegal 6) Beneficiary : Multinational Co. Air Afrique 7) Executing Agency : Multinational Co. Air Afrique B) PROJECT DATA N° Data Appraisal Actual Loan Amount in Gap 37 600 000.00 37 576 789.07 23 210.93 UA 7.41% per year on the amount disbursed None Interest rate No change and outstanding 1% per year on the undisbursed amount, Commitment charges starting forty five (45) days following No change None the signature of the loan agreement; Terms Fourteen (14) years, with a