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Appendices Vol 1 APPENDICES – VOLUME 1 St Helena Access Feasibility Study Final Report ___________________________________________________________________ CONTENTS ___________________________________________________________________ Appendix A: Terms of Reference for the Feasibility Study..………………………. Appendix B: Demographic Developments..……………………………………………. Appendix C: Assumptions – General…….…………………………………………….... Appendix D: Options Paper………....…………………………………………………….. Appendix E: Proxy Islands Study……………....………………………………………... Appendix F: Survey of St Helenians……………..………………………………………. Appendix G: Survey of St Helenians (Aspirations)….………………………………... St Helena Access Feasibility Study Final Report APPENDIX A: TERMS OF REFERENCE FOR THE FEASIBILITY STUDY St Helena Access 1 Public Domain Appendix A - Terms of Reference for Feasibility Study St Helena Access Feasibility Study Final Report ST HELENA Terms of Reference for a Feasibility Study into Access Options 1. Background General 1.1 The island of St Helena, an overseas territory of the United Kingdom (UK) is of volcanic origin and covers 47 square miles in the South Atlantic Ocean. St Helena is over 4,000 miles from the UK, 700 miles southeast of Ascension Island, and 1,700 miles from South Africa. The Island’s total population is around 5,000 persons, of whom 1,300 live in the capital, Jamestown. The climate is kept mild and equable by the southeast trade winds and temperatures range from 14-32 degrees centigrade in the summer and 14-26 degrees centigrade in winter. The economy is small and is mainly based on offshore employment, agriculture, fishing and more recently a small but growing volume of tourism. Most commodities are imported and St Helena relies heavily on UK Aid to support the standard of living of the population. 1.2 The UK Government, through the Governor, is responsible for St. Helena’s external affairs, internal security and safety, and defence. The St Helena Government operates through an Executive Council (ExCo), which takes decisions on operational and policy matters, and a Legislative Council (LegCo), which reviews and approves laws. The St Helena Government has responsibility for providing a wide range of publicly-funded services, including: health, education, social welfare, housing, lands and agriculture, transport, road maintenance etc. Constitutional reform is currently taking place, with the view of moving the St Helena Government to a two-tier ministerial government, headed by an elected Chief Minister. The next elections are due in July 2005, and it is envisaged that the new constitution will be in place by then. 1.3 St Helena has no airfield and the only regular mode of access to the Island is via the Royal Mail Ship (RMS) St Helena. The RMS St Helena has in recent years made four round voyages from the UK and South Africa per year and also makes shuttle sailings between St Helena, South Africa and Ascension Island. Voyages currently take a minimum of two days from Ascension Island or five days from South Africa. Imminent changes in the schedule will see the ship operating a shuttle service between St Helena, Ascension, Cape Town and Walvis Bay, with no voyages to the UK. These may be reinstated in future if there is demand. 1.4 All goods and equipment are transported by sea and the maximum size and weight of any single component are limited by the ship’s cargo space and capacity of its cranes. St Helena’s steep narrow roads, combined with a lack of heavy transport, limit the size and weight of equipment that can be transported on the island. DFID assistance 1.5 The shared goals of the St Helena and UK Governments are sustainable improvements in social and economic well-being for 'Saints' and reduced aid dependence. However the opportunities for increased economic self-sufficiency are St Helena Access 2 Public Domain Appendix A - Terms of Reference for Feasibility Study limited due to St Helena's isolation, lack of natural and other resources and its small domestic market. 1.6 The DFID programme in St Helena is wide-ranging, providing budgetary aid (about £5 million annually to meet the recurrent budget deficit), approximately £1.5million per annum for shipping costs, development assistance for education, health, governance and infrastructure and the provision of key technical and management staff for key posts in the St Helena Government. DFID’s annual spending over the last decade has averaged £8-£10 million. Air Access 1.7 As early as the 1940’s investigations were carried out into the possibility of air access for St Helena. In the 1950’s, 1970’s and 1980’s different parties have investigated this possibility, to no effect. As a result the island remains one of the few very remote places in today’s global village, with a minimum of five days travel from London or Cape Town required to reach St Helena. The possibility of economically viable air access and associated economic developments came closer in 1999 with technology change associated with long-haul business jet travel. A report by High Point Rendel on air access to St Helena, prepared in 2000, highlighted the changes that had taken place in this arena and the possibilities for St Helena. 1.8 Since then various approaches have been considered around the concept of using other private sector development on the island to subsidise the construction of an aerodrome and commencement of air services. Following exhaustive investigations, the St Helena Government and DFID have concluded that this approach presents unacceptable levels of risk and uncertainty, and now wish to carry out full feasibility work. 1.9 These terms of reference set out the requirements for a multi-disciplinary team (hereafter referred to as “the Consultant”) to undertake a feasibility study to look at options for maintaining access to St Helena following the withdrawal from service of the current RMS St Helena, expected in 2010. 2. Purpose of the consultancy 2.1 The purpose of the consultancy is to carry out a full feasibility study to determine the options for maintaining access to St Helena, assess their value for money in relation to the joint aspirations of the St Helena Government and DFID of promoting social and economic development and reducing aid dependency. The study will clearly recommend a preferred option to St Helena and Her Majesty’s Government. 2.2 The consultancy will:- · Identify options for maintaining access to St Helena, and agree a short list for detailed analysis; St Helena Access 3 Public Domain Appendix A - Terms of Reference for Feasibility Study · confirm the technical feasibility of access options, and provide robust cost estimates for short listed options; · estimate the maximum annual budgetary aid cost to DFID of continuing with sea access, and establish the level of budgetary support required following the implementation of any air access project; · determine the likely level of economic development that would result from providing access by air, and from continuing to provide access by sea; and on the basis of this to what extent there is a clear economic justification for air access over sea access; · outline the management and institutional structure and capacity needed to sustain each of the short listed options; · list the environmental issues associated with each option and comment on whether it is possible to adequately mitigate against any negative impacts; and · assess the likely social impacts of each option; · agree with the St Helena Government and DFID a preferred option for maintaining access to St Helena, and advise on procurement for that option. 3. Outputs of the consultancy 3.1 The consultants will prepare:- · a Full Feasibility Report with clear recommendations including a clearly identified preferred option for maintaining access to St Helena; and following agreement to the preferred option by the St Helena Government and DFID:- · a Draft Project Memorandum; and · documentation to support the Gateway Review process, including a Business Case, Project Governance Framework, Communications Strategy, Procurement Strategy. 4. Scope of Work 4.1 Sections 4.2 to 4.9 below set out the scope of work to be carried out in the feasibility study to develop the options, and address the key technical, financial, economic, institutional, social and environmental issues. Development of Options St Helena Access 4 Public Domain Appendix A - Terms of Reference for Feasibility Study 4.2 The Consultants will be required to identify all practical options for maintaining access to St Helena by sea and by air. All options must address take into account both passenger and freight requirements. 4.3 The Consultant will carry out an initial qualitative comparison of these options against the key technical, financial, institutional, environmental and social issues detailed in Sections 4.5 to 4.9 below, drawing where appropriate on the work of others, and agree with the St Helena Government and DFID a shortlist of up to four options for more detailed analysis. 4.4 Following agreement with the St Helena Government and DFID, the Consultant will carry out a detailed analysis of the short-listed options as set out in Sections 4.5 to 4.9 below. Technical Analysis 4.5 The technical analysis will:- · identify viable technical solutions to address access to St Helena · provide cost estimates, including any premium associated with working in a remote location, for use in economic and financial analysis Economic Analysis 4.6 The economic analysis will:- · provide considered analyses of future population numbers and structure under each option · develop a critical assessment of potential tourism demand to St Helena for air and sea access options, detailing supply and demand issues; · provide a robust and considered financial analysis of air and sea access options; · derive and model the maximum budgetary aid cost for air and sea access options, highlighting the main assumptions; · estimate the level of confidence that air access will deliver the estimated increases in tourism numbers. · assess the skills in St Helena to deliver on tourism development on a sustainable basis.
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