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I have the great pleasure of presenting the 11th
edition of the World Bank Group (WBG) Air
Transport Annual Report, which summarizes the current activities of the air transport practice at
the WBG. Over the past sixty years, the WBG has financed numerous aviation related projects.
However, as you may notice, air transportation remains a small sub-sector of the transport prac-
tice at the WBG. Road investments continue to dominate our portfolio in terms of lending, fol-
lowed by urban and rail projects. Nevertheless, the impact of our investments in aviation should
be underscored. Aviation remains one of the leading modes of transportation for connecting
people and economies, and opening markets.
In particular, emerging and developing countries are benefiting most from increased connectivity
and greater affordability. For example, the rise of low cost carriers in Asia has not only facilitated
travel of business executives and migrant workers, but it has also significantly grown the tourism
industry. Tourism, together with aviation, is the world’s largest sector when all the economic im-
pacts are taken into account. In 2015, international tourist arrivals grew by 4.4% to reach 1.2 bil-
lion. According to the UN World Tourism Organization (UNWTO),
tourism generated close to US$1.5 trillion in exports, which in-
cludes many smaller landlocked and island developing countries
- focus areas for many of our investments. Aviation, a critical
component of the tourism industry, contributes greatly to the mul-
tiplier effect: according to ICAO, every $100 of revenue produced
by air transport triggers an additional US$325 in the economy,
and every 100 jobs generates on average 600 additional jobs in
other industries. It is therefore timely that the WBG is launching an integrated sustainable tour-
ism solutions working group to advance the WBG’s work in the sector.
The prospects for the aviation sector are encouraging. In 2015, the air transport industry has ex-
perienced one of its best years in history. Aided by lower oil prices, global demand for passen-
ger travel grew by 6.7%, and the industry forecasts total net profits of $36.3 billion. Only air car-
go, surprisingly, remained weak (at 1.9% growth), which points to sluggish development of glob-
al trade. However, there are significant regional differences in terms of growth. The Asia -Pacific
region continues to grow despite the slowdown of the Chinese
economy. The performance of Latin American carriers remains
weak given the deepening economic crisis in Brazil, weak com-
modity prices, and adverse currency fluctuations. The strongest
headwinds were faced by airlines in Africa, which lost $300 mil-
lion in 2015 due to political instability in North Africa, weak eco-
nomic growth, and stiff competition from international markets.
Recognizing the potential of air transportation to contribute to economic devel-
opment and shared prosperity, the WBG continues to make much-needed, se-
lective investments in the sector. Ultimately, our investments are directed to best
serve our clients and their needs. As this report highlights, with an overall portfo-
lio of US$1.47 billion, we remain actively engaged around the world on projects
related to air transport policy and regulation, safety, infrastructure rehabilitation,
institutional strengthening, and capacity building. Finally, supporting client coun-
tries in addressing the environmental challenges of aviation has become a top
priority for the WBG and we continue to cooperate with our strategic external
partners on this issue.
We look forward to building on our achievements in 2016 as we continue to
strive for safe, affordable, and sustainable air transport.
Dr. Charles E. Schlumberger
Lead Air Transport Specialist
The World Bank Group
ACI Airports Council International
ADS-B/C Automatic Dependent Surveillance – Broadcast/Contract
AGL Aeronautical Ground Lights
ATC Air Traffic Control
ATM Air Traffic Management
BOT Build-Operate-Transfer
BOO Build-Own-Operate
BOOT Build-Own-Operate-Transfer
BTO Build-Transfer-Operate
CAA Civil Aviation Authority
CES Charles E. Schlumberger, Lead Air Transport Specialist (WBG)
DME Distance Measuring Equipment
GNSS Global Navigation Satellite System
EASA European Aviation Safety Agency
EC European Commission
ESW Economic Sector Work
FAA Federal Aviation Administration (United States)
FY Fiscal Year
IATA International Air Transport Association
IASA International Aviation Safety Assessment (FAA)
IBRD International Bank for Reconstruction and Development (WBG)
ICAO International Civil Aviation Organization (UN Agency)
IDA International Development Association (WBG)
IFC International Finance Corporation (WBG)
ILS Instrument Landing System
IOSA IATA Operational Safety Audit
LCC Low-Cost Carrier
MIGA Multilateral Investment Guarantee Agency (WBG)
PPPA Public Private Partnership Agreement
PPP Public-Private Partnership
SARPS Standards and Recommended Practices
TA Technical Assistance
DOT Department of Transportation
USOAP Universal Safety and Security Oversight Audits Program (ICAO)
VOR VHF Omni-Directional Radio Range
VSAT Very Small Aperture Terminal
WBG World Bank Group
WRSS World Routes Strategy Summit
This report benefited from the contributions of a number of
staff members from across the World Bank Group.
We would like to thank Sabine Beddies, Heinrich Bofinger,
Carlo Bongianni, Nick Callender, Mohammed Dalil Essakali,
Chris De Serio, Adam Diehl, Donald Hill, Alexandre Leigh,
Negede Lewi, Yonas Mchomvu, Gylfi Palsson, Noro Rabefani-
raka, Amali Rajapaksa, Tojo Ramanankirahina, Binyam Reja,
Ariana Tiwari, and Vincent Vesin.
We would also like to thank Pierre Guislain, Senior Director
and Jose Luis Irigoyen, Director of the Transport and ICT
Global Practice for their continued guidance and support, and
Shruti Vijayakumar for research and preparation of this report.
The Mission
The World Bank Group (WBG) is a vital
source of financial and technical assis-
tance to developing countries around the
world through the provision of low-interest
loans, grants, credits, and advisory ser-
vices. The World Bank Group aims to
achieve two major goals by 2030:
End extreme poverty by decreasing the
percentage of people living on less than
$1.25 a day to no more than 3 percent.
Promote shared prosperity by boosting
the income of the bottom 40 percent of
the population in every country.
The World Bank Group aims to tackle
these challenges through financing, cutting
-edge solutions, cross-sectorial knowledge,
and partnerships with relevant public and
private sector actors, as well as civil socie-
ty. The organization’s investments span
across a number of sectors including edu-
cation, health, public administration, private
sector development, agriculture, and
transport and ICT.
The Institutions and New Structure
The International Development Association
(IDA) is the part of the World Bank that
helps the world’s poorest countries by
providing interest-free loans, or credits,
and grants. The World Bank’s original lend-
ing arm is the International Bank for Re-
construction and Development (IBRD),
which lends to governments of middle-
income and creditworthy low-income coun-
tries. The International Finance Corpora-
tion (IFC) provides loans, equity, and advi-
sory services to stimulate private sector
investment in developing countries. The
Multilateral Investment Guarantee Agency
(MIGA) provides political risk insurance or
guarantees to facilitate foreign direct in-
vestment in developing countries. The In-
ternational Centre for Settlement of Invest-
ment Disputes (ICSID) is also a part of the
WBG, but will not be covered in this report.
The WBG has recently undergone major
institutional change, and Transport and ICT
is now a Global Practice. The Bank’s new
nimble structure with Global Practices and
Cross-Cutting Solution Areas is designed
to strengthen collaboration and improve
knowledge sharing across the institution.
These changes are intended to improve
operational efficiency, financial sustainabil-
ity, and ultimately work toward meeting the
twin goals of ending extreme poverty and
boosting shared prosperity.
Enhancing Mobility and Connectivity
Transport is a critical driver of economic and
social development. Transport infrastructure
connects people to jobs, education, and
health services; it enables the supply of
goods and services around the world; and
allows people to interact and generate the
knowledge and solutions that foster long-term
growth. The World Bank’s transport invest-
ments have facilitated more efficient trade
and enhanced human development through
greater mobility.
As a multi-sectorial institution, the World
Bank Group is uniquely positioned to sup-
port large-scale transformational projects
and deliver innovative cross-cutting solu-
tions for greater connectivity. The World
Bank’s strategy in the transport sector,
adopted in 2008, envisioned mobility solu-
tions for developing countries that would
be safer, cleaner and more affordable.
These three principles guide the Bank’s
infrastructure investments and policy work.
The WBG is the largest provider of devel-
opment finance for transport globally, with
an active portfolio of around US$45 billion.
Air transport plays an important role in fos-
tering development, particularly in facilitat-
ing economic integration, generating trade,
promoting tourism, and creating employ-
ment opportunities. It facilitates integration
into the global economy and provides vital
connectivity on a national, regional, and-
international scale. However, in many countries
the air transport equipment and infrastructure, reg-
ulatory frameworks, and safety and security over-
sight systems are inefficient or inadequate.
In view of these challenges and to assist clients in
establishing a safe, secure, cost efficient, accessi-
ble and reliable air transport network, the Bank is
mandated to undertake the following major activi-
ties:
Operational work through projects and tech-
nical assistance.
Economic sector work, research, and
knowledge dissemination on air transport relat-
ed issues.
External relations and collaboration with part-
ner organizations.
Internal services (such as the airline advisory
service for WBG staff travel).
Portfolio and Project Highlights
In Fiscal Year 2015 (FY15), WBG’s Air Transport
Portfolio amounted to US$1.47 billion, an increase
of 2% from Fiscal Year 2014 (FY14). The Air
Transport segment makes up around 3% of the
WBG’s US$45 billion Transport portfolio. The
WBG’s FY15 Transport portfolio consists approxi-
mately 19% of the WBG’s active portfolio of
US$248 billion (excluding MIGA).
The Air Transport portfolio includes around 26 pro-
jects or project components through the Interna-
tional Bank for Reconstruction and Development
(IBRD) and International Development Association
(IDA), as well as the International Finance Corpo-
ration (IFC)’s portfolio of lending and investment
advisories in the aviation sector.
Project highlights in 2015 include the approval of
the $52 million DRC Goma Airport Safety Improve-
ment Project and $59.2 million IDA credit for the
Vanuatu Aviation Investment Project as part of the
Pacific Aviation Investment Program (PAIP). PAIP
is currently being implemented in Kiribati, Tonga,
Tuvalu, and Samoa. Current IBRD projects in air
transport include the Cairo Airport Development
Project, which is being funded through a US$280
million loan and the Shangrao Sanquingshan Air-
port, which is being funded through a US$50 mil-
lion loan.
The International Finance Corporation (IFC) did
not make any new commitments in the air
transport sector in FY15. New commitments made
in 2014 including ASECNA in Africa, Queen Alia II
in Jordan, and Zagreb Airport in Croatia. IFC Advi-
sory Services were also initiated in Brazil (Galeão
and Confins Airports) and in Saudi Arabia (Jeddah
Airport and Taif Airport) in 2014. MIGA has been
involved in the air transport sector in the past
through the issuance of guarantees for two airport
projects in Ecuador and Peru.
Research and External Relations
World Bank staff members continue to represent
the organization externally at various air transport
conferences and events, notably the inaugural ACI
-WBG Aviation Symposium in London, UK. Re-
search and knowledge dissemination also continue
to be critical functions of the WBG’s Air Transport
Community of Practice (ATCOP). Looking forward,
the practice maintains its strong commitment to
addressing the challenges of its client countries.
-
Note
: E
xclu
din
g th
e M
ultila
terial In
vestm
ent G
uara
nte
e A
ge
ncy (
MIG
A)
Th
e W
BG
is a
vita
l so
urc
e o
f fin
an
cia
l a
nd
te
chn
ica
l a
ssis
tance t
o d
eve
lopin
g c
ountr
ies t
hro
ug
h lo
w-in
tere
st
loan
s,
cre
dits,
an
d g
rants
. In
Fis
-
ca
l Y
ear
201
5,
the
World B
ank's
Air T
ransp
ort
Po
rtfo
lio is a
rou
nd U
S$
1.4
7 b
illio
n.
Th
is in
clu
de
d a
rou
nd 2
6 a
ctive
le
nd
ing
pro
jects
or
pro
ject
co
mp
on
en
ts t
hro
ug
h t
he I
nte
rnatio
na
l B
ank f
or
Re
con
str
uctio
n a
nd D
eve
lopm
ent
(IB
RD
) a
nd I
nte
rnatio
na
l D
eve
lopm
ent
Asso
cia
tion
(ID
A),
as w
ell
as t
he In
tern
atio
na
l F
inan
ce C
orp
ora
tio
n (
IFC
)’s p
ort
folio
of
lend
ing a
nd
inve
stm
ent a
dvis
ories in
th
e a
via
tion
se
cto
r.
Ac
tive
Po
rtfo
lio
IBR
D
IDA
IF
C
TO
TA
L
(in
milli
on
s U
SD
) F
Y1
5
FY
14
Ch
an
ge
FY
15
FY
14
Ch
an
ge
FY
15
FY
14
Ch
an
ge
F
Y1
5
FY
14
Ch
an
ge
WB
Gro
up
To
tal
Ac
-
tive
Po
rtfo
lio
9
9,5
74
109
,87
8
-9.3
8%
9
2,3
34
86,6
01
6.6
2%
5
0,4
02
51,7
35
-2.5
8%
2
42
,31
0
248
,21
4
-2.3
8%
WB
Gro
up
Ac
tive
Po
rtfo
lio
-Tra
nsp
ort
2
6,8
17
28,6
76
-6.4
8%
1
6,0
78
15,5
35
3.5
0%
2
,93
0
3,0
03
-2.4
1%
4
5,8
26
47,2
13
-2.9
4%
Tra
nsp
ort
% o
f T
ota
l
Ac
tive
Po
rtfo
lio
2
6.9
3%
2
6.1
0%
0
.83
%
17.4
1%
1
7.9
4%
-0
.52%
5
.81
%
5.8
0%
0
.01
%
18.9
1%
1
9.0
2%
-0
.57%
Air
Tra
nsp
ort
Ac
tive
Pro
jects
3
25
.20
328
.92
-1.1
3%
5
06
.55
456
.79
10.8
9%
6
35
.50
647
.11
-1.7
9%
1
,46
7.2
5 1
,43
2.8
2
2.4
0%
% o
f T
ota
l A
cti
ve
Po
rtfo
lio
0
.33
%
0.3
0%
0
.03
%
0.5
5%
0
.53
%
0.0
2%
1
.26
%
1.2
5%
0
.01
%
0.6
1%
0
.58
%
4.9
0%
% o
f T
ota
l T
ran
sp
ort
Po
rtfo
lio
1
.21
%
1.1
5%
0
.07
%
3.1
5%
2
.94
%
0.2
1%
2
1.6
9%
2
1.5
5%
0
.14
%
3.2
0%
3
.03
%
5.5
0%
Active Air Transport Projects in FY15: IBRD and IDA invest in a number of
air transport projects worldwide focusing on regulatory reform, capacity build-
ing and infrastructure investments, as well as technical assistance and analyt-
ic/advisory services.
IBR
D A
ND
ID
A L
EN
DIN
G P
RO
JE
CT
S
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
Afr
ica
B
urk
ina
Faso
P
1209
60
Bu
rkin
o F
aso
Do
nsi
n
Tran
spo
rt In
fras
tru
c-tu
re P
roje
ct
Tech
nic
al a
ssis
tan
ce f
or
new
Ou
agad
ou
gou
A
irp
ort
8
5.0
1
.7
IDA
Cre
dit
A
ctive
Afr
ica
C
ape
Ver
de
P12
6516
C
ape
Ver
de
-Tra
nsp
ort
Se
cto
r R
efo
rm P
roje
ct
Insti
tuti
on
al c
apac
ity
bu
ildin
g, t
ech
nic
al a
s-si
stan
ce, a
nd
su
pp
ort
of
nati
on
al a
irlin
e 1
9.0
2
.1
IDA
Cre
dit
A
ctive
Afr
ica
Dem
ocr
atic
Rep
ub
lic o
f C
on
go
P15
3085
G
om
a A
irp
ort
Saf
ety
Imp
rove
men
t P
roje
ct
Imp
rove
th
e sa
fety
, sec
uri
ty, a
nd
op
erati
on
s o
f G
om
a In
tern
atio
nal
Air
po
rt t
hro
ugh
infr
a-st
ruct
ure
inve
stm
ents
an
d c
apac
ity
bu
ildin
g.
52
.0
45
.2
IDA
Gra
nt
Acti
ve
Afr
ica
D
emo
crati
c R
epu
blic
of
Co
ngo
P
0925
37
Mu
lti-M
od
al
Tran
spo
rt
Imp
rove
tra
nsp
ort
co
nn
ecti
vity
an
d s
up
po
rt
eco
no
mic
inte
grati
on
in t
he
regi
on
2
55
.0
25
.5
IDA
Gra
nt
Acti
ve
Afr
ica
D
emo
crati
c R
epu
blic
of
Co
ngo
P
1295
94
Mu
lti-M
od
al
Tran
spo
rt -
Ad
diti
on
al
Fin
anci
ng
Imp
rove
tra
nsp
ort
co
nn
ecti
vity
an
d s
up
po
rt
eco
no
mic
inte
grati
on
in t
he
regi
on
1
80
.0
9.0
ID
A G
ran
t A
ctive
Afr
ica
K
en
ya
P12
4109
Tr
ansp
ort
Sec
tor
Sup
-p
ort
Pro
ject
En
han
ce a
viati
on
sec
uri
ty a
nd
saf
ety
, an
d
imp
rove
insti
tuti
on
al c
apac
ity
30
0.0
2
7.0
ID
A C
red
it
Acti
ve
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
Afr
ica
K
en
ya
P14
6630
Tr
ansp
ort
Sec
t Su
p-
po
rt P
roje
ct -
Ad
di-
tio
nal
Fin
anci
ng
Enh
ance
avi
atio
n s
ecu
rity
an
d s
afe
ty, a
nd
im
pro
ve in
stitu
tio
nal
cap
acit
y 2
00
.0
30
.0
IDA
Cre
dit
A
ctive
Afr
ica
K
en
ya
P08
2615
N
ort
her
n C
orr
ido
r Tr
ansp
ort
Imp
rove
-m
ent
Pro
ject
Enh
ance
avi
atio
n s
ecu
rity
an
d s
afe
ty, a
nd
im
pro
ve in
stitu
tio
nal
cap
acit
y 2
07
.0
31
.1
IDA
Cre
dit
A
ctive
Afr
ica
K
en
ya
P10
6200
No
rth
ern
Co
rrid
or
Tran
spo
rt Im
pro
ve-
men
t P
roje
ct -
Ad
di-
tio
nal
Fin
anci
ng
Enh
ance
avi
atio
n s
ecu
rity
an
d s
afe
ty, a
nd
im
pro
ve in
stitu
tio
nal
cap
acit
y 2
53
.0
48
.1
IDA
Cre
dit
A
ctive
Afr
ica
Ta
nza
nia
P
0551
20
Tran
spo
rt S
ecto
r Su
p-
po
rt P
roje
ct
Reh
abili
tati
on
an
d e
xten
sio
n o
f re
gio
nal
air
-p
ort
s 2
70
.0
56
.7
IDA
Cre
dit
A
ctive
Afr
ica
Ta
nza
nia
P
1262
06
Tran
spo
rt S
ecto
r Su
p-
po
rt -
Ad
diti
on
al F
i-n
anci
ng
Exp
and
cap
acit
y o
f re
gio
nal
air
po
rts;
imp
rove
o
per
atio
nal
saf
ety
59
.0
57
.2
IDA
Cre
dit
A
ctive
Afr
ica
Ta
nza
nia
P
1036
33
Seco
nd
Cen
tral
Tr
ansp
ort
Co
rrid
or
Imp
rove
Zan
zib
ar A
irp
ort
fac
iliti
es a
nd
bu
ild
cap
acit
y 1
90
.0
17
.1
IDA
Cre
dit
A
ctive
IBR
D A
ND
ID
A L
EN
DIN
G P
RO
JE
CT
S (
co
nti
nu
ed
)
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
East
Asi
a an
d P
acifi
c C
hin
a P
1237
29
Ch
ina
- Sh
angr
ao S
an-
qin
gsh
an A
irp
ort
Pro
-je
ct
Imp
rove
air
line
con
nec
tivi
ty a
nd
en
viro
n-
men
tal s
ust
ain
abili
ty o
f d
evel
op
men
t an
d
op
erati
on
of
the
Shan
grao
San
qin
gsh
an A
ir-
po
rt
50
.0
48
.0
IBR
D L
oan
A
ctive
East
Asi
a an
d P
acifi
c K
irib
ati
P12
8938
P
acifi
c A
viati
on
Inve
st-
men
t -
Kir
ibati
Infr
astr
uct
ure
inve
stm
ent,
sec
tor
refo
rm a
nd
tr
ain
ing,
an
d s
tren
gth
enin
g ai
rpo
rt o
per
a-ti
on
s an
d m
anag
emen
t ca
pac
ity
22
.9
19
.5
IDA
Gra
nt
Acti
ve
East
Asi
a an
d P
acifi
c P
acifi
c Is
-la
nd
s P
1450
57
Pac
ific
Avi
atio
n S
afet
y O
ffice
Ref
orm
St
ren
gth
en t
he
Pac
ific
Avi
atio
n S
afet
y O
ffice
’s t
ech
nic
al a
nd
co
ord
inati
on
cap
acit
y 2
.2
2.2
ID
A G
ran
t A
ctive
East
Asi
a an
d P
acifi
c Sa
mo
a P
1434
08
Sam
oa
Avi
atio
n In
-ve
stm
ent
Pro
ject
Im
pro
ve o
per
atio
nal
saf
ety
and
ove
rsig
ht
25
.0
23
.0
IDA
Gra
nt
Acti
ve
East
Asi
a an
d P
acifi
c To
nga
P
1289
39
Pac
ific
Avi
atio
n In
vest
-m
ent
- To
nga
Infr
astr
uct
ure
inve
stm
ent,
sec
tor
refo
rm a
nd
tr
ain
ing,
an
d s
tren
gth
enin
g ai
rpo
rt o
per
a-ti
on
s an
d m
anag
emen
t ca
pac
ity
27
.2
21
.0
IDA
Gra
nt
Acti
ve
East
Asi
a an
d P
acifi
c To
nga
P
0969
31
Ton
ga T
ran
spo
rt S
ec-
tor
Co
nso
lidati
on
Pro
-je
ct
Imp
rove
saf
ety
and
sec
uri
ty c
om
plia
nce
; pro
-vi
de
tech
nic
al a
ssis
tan
ce t
o C
AA
5
.4
2.4
ID
A G
ran
t A
ctive
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
East
Asi
a an
d P
acifi
c Tu
valu
P
1289
40
Pac
ific
Avi
atio
n In
vest
-m
ent
- Tu
valu
Infr
astr
uct
ure
inve
stm
ent,
sec
tor
refo
rm a
nd
tr
ain
ing,
an
d s
tren
gth
enin
g ai
rpo
rt o
per
a-ti
on
s an
d m
anag
emen
t ca
pac
ity
11
.9
10
.3
IDA
Gra
nt
Acti
ve
East
Asi
a an
d P
acifi
c Tu
valu
P
1453
10
Pac
ific
Avi
atio
n In
vest
-m
ent
- Tu
valu
- A
dd
i-ti
on
al F
inan
cin
g
Infr
astr
uct
ure
inve
stm
ent,
sec
tor
refo
rm a
nd
tr
ain
ing
6.1
3
.0
IDA
Gra
nt
Acti
ve
East
Asi
a an
d P
acifi
c V
anu
atu
P
1541
49
Pac
ific
Avi
atio
n In
vest
-m
ent
-Van
uat
u
Imp
rove
op
erati
on
al s
afet
y an
d o
vers
igh
t o
f in
tern
atio
nal
air
tra
nsp
ort
an
d a
sso
ciat
ed
in
fras
tru
ctu
re
59
.5
54
.7
IDA
Cre
dit
A
ctive
Lati
n A
mer
-ic
a an
d C
ar-
ibb
ean
B
oliv
ia
P12
2007
N
atio
nal
Ro
ads
and
A
irp
ort
Infr
astr
uct
ure
P
roje
ct
Infr
astr
uct
ure
dev
elo
pm
ent;
imp
rove
saf
ety
, se
curi
ty a
nd
op
erati
on
al r
elia
bili
ty o
f th
e R
urr
enab
aqu
e A
irp
ort
1
09
.5
5.5
ID
A C
red
it
Acti
ve
Lati
n A
mer
-ic
a an
d C
ar-
ibb
ean
Gre
nad
a, S
t.
Vin
cen
t, t
he
Gre
nad
ines
P
1178
71
Reg
ion
al D
isas
ter
Vu
l-n
erab
ility
Red
ucti
on
P
roje
ct (
AP
L1)
Imp
rove
em
erge
ncy
res
po
nse
cap
abili
ty
20
.9
5.0
ID
A C
red
it
Acti
ve
Lati
n A
mer
-ic
a an
d C
ar-
ibb
ean
St. V
ince
nt
and
th
e G
ren
adin
es
P14
6768
Reg
ion
al D
isas
ter
Vu
l-n
erab
ility
Red
ucti
on
P
roje
ct -
Ad
diti
on
al
Fin
anci
ng
Imp
rove
em
erge
ncy
res
po
nse
cap
abili
ty
16
.6
3.3
ID
A C
red
it
Acti
ve
IBR
D A
ND
ID
A L
EN
DIN
G P
RO
JE
CT
S (
co
nti
nu
ed
)
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
Mid
dle
Eas
t an
d N
ort
h
Afr
ica
Egyp
t P
1012
01
Cai
ro A
irp
ort
Dev
elo
p-
men
t P
roje
ct-T
B2
Bu
ild c
apac
ity
of
Cai
ro In
tern
atio
nal
Air
po
rt;
reh
abili
tati
on
an
d e
xpan
sio
n o
f Te
rmin
al
Bu
ildin
g 2
; saf
ety
and
se
curi
ty
28
0.0
2
77
.2
IBR
D L
oan
A
ctive
Mid
dle
Eas
t an
d N
ort
h
Afr
ica
Yem
en
P08
8435
P
ort
Citi
es D
evel
op
-m
ent
II P
roje
ct
Imp
rove
effi
cien
cy, a
nd
reh
abili
tati
on
an
d
exte
nsi
on
of
Mu
kalla
Air
po
rt
35
.0
6.0
ID
A G
ran
t
Acti
ve
IBR
D A
ND
ID
A P
IPE
LIN
E P
RO
JE
CT
S
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
Afr
ica
Cam
ero
on
P
1509
99
Cam
ero
on
Tra
nsp
ort
Se
cto
r Su
pp
ort
Pro
ject
To
imp
rove
saf
ety
and
se
curi
ty a
t C
ame-
roo
n’s
fo
ur
inte
rnati
on
al a
irp
ort
s 1
92
.0
28
.8
IBR
D
Pip
elin
e
Afr
ica
Ke
nya
P
1569
71
Air
po
rt M
od
ern
izati
on
P
roje
ct
The
pro
po
sed
pro
ject
invo
lves
am
on
gst
oth
-er
s m
od
ern
izati
on
of
Ken
yan
maj
or
airp
ort
s in
clu
din
g e
nh
anci
ng
secu
rity
to
mee
t in
tern
a-ti
on
al s
tan
dar
ds
- -
IDA
Gra
nt
Pip
elin
e
Afr
ica
Leso
tho
P
1552
29
Leso
tho
Tra
nsp
ort
In
fras
tru
ctu
re a
nd
C
on
nec
tivi
ty P
roje
ct
Res
tru
ctu
rin
g o
f av
iati
on
sec
tor
30
.0
6.0
ID
A G
ran
t P
ipel
ine
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
Afr
ica
Rw
and
a P
1510
83
Gre
at L
akes
Tra
de
Fa-
cilit
atio
n
Inve
stm
ent
in K
amem
be
Air
po
rt in
Rw
and
a 6
1.0
1
4.2
ID
A G
ran
t P
ipel
ine
East
Asi
a an
d P
acifi
c K
irib
ati
P15
3381
P
acifi
c A
viati
on
Inve
st-
men
t -
Kir
ibati
- A
dd
i-ti
on
al F
inan
cin
g
Ad
diti
on
al fi
nan
cin
g fo
r th
e K
irib
ati A
viati
on
In
vest
men
t P
roje
ct t
o c
ove
r a
fin
anci
ng
gap
7
.1
5.8
ID
A G
ran
t P
ipel
ine
East
Asi
a an
d P
acifi
c Sa
mo
a P
1572
41
Pac
ific
Avi
atio
n In
vest
-m
ent
- Sa
mo
a -
Ad
di-
tio
nal
Fin
anci
ng
Ad
diti
on
al fi
nan
cin
g fo
r th
e Sa
mo
a A
viati
on
In
vest
men
t P
roje
ct
16
.6
15
.3
IDA
Gra
nt
Pip
elin
e
East
Asi
a an
d P
acifi
c To
nga
P
1560
18
Pac
ific
Avi
atio
n In
vest
-m
ent
- To
nga
- A
dd
i-ti
on
al F
inan
cin
g
Ad
diti
on
al fi
nan
cin
g fo
r th
e To
nga
Avi
atio
n
Inve
stm
ent
Pro
ject
7
.3
7.3
ID
A G
ran
t P
ipel
ine
East
Asi
a an
d P
acifi
c Tu
valu
P
1577
79
Pac
ific
Avi
atio
n In
vest
-m
ent
- Tu
valu
- A
dd
i-ti
on
al F
inan
cin
g II
Ad
diti
on
al fi
nan
cin
g fo
r th
e Tu
valu
Avi
atio
n
Inve
stm
ent
Pro
ject
2
.9
1.4
ID
A G
ran
t P
ipel
ine
East
an
d
Cen
tral
A
sia
Tajik
stan
P
1262
72
Tajik
ista
n D
PF-
1 Th
e o
vera
ll o
bje
ctive
of
this
op
erati
on
is t
o
sup
po
rt jo
bs
crea
tio
n t
hro
ugh
gro
wth
en
-ch
anci
ng
refo
rms
30
.0
3.6
ID
A
Pip
elin
e
East
an
d
Cen
tral
A
sia
Tajik
stan
P
1262
73
Tajik
ista
n D
PO
-2
This
op
erati
on
is t
o c
on
tin
ue
to h
elp
th
e go
v-er
nm
en
t m
ain
tain
hig
h g
row
th
30
.0
7.2
ID
A
Pip
elin
e
IBR
D A
ND
ID
A N
ON
-LE
ND
ING
PR
OJE
CT
S
Re
gio
n
Co
un
try
Pro
ject
ID
Co
de
Pro
ject
Fu
ll N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
nen
t A
viati
on
C
om
po
-n
en
t Ty
pe
St
atu
s as
o
f En
d o
f FY
20
15
Afr
ica
Gab
on
P
1304
27
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on
Tra
nsp
ort
Sec
tor
Tech
nic
al S
up
po
rt
Sup
po
rt t
he
Go
vern
men
t in
ad
dre
ssin
g se
lect
ed
is
sues
in t
he
tran
spo
rt s
ecto
r, in
clu
din
g re
du
ctio
n
of
the
cost
s o
f m
ariti
me
and
air
tra
nsp
ort
1
5%
TA
C
lose
d
Afr
ica
Reg
ion
al
P14
932
8
Air
Tra
nsp
ort
in W
est
and
Ce
ntr
al A
fric
a P
olic
y re
form
ro
adm
ap t
o d
evel
op
air
tra
nsp
ort
as
a m
ean
s to
reg
ion
al e
con
om
ic in
tegr
atio
n
10
0%
ES
W
Acti
ve
Afr
ica
Zim
bab
we
P15
7125
Tr
ansp
ort
Sec
tor
Sup
po
rt
to Z
IMR
EF
Ass
ist
in t
he
refo
rm o
f C
ivil
Avi
atio
n Z
imb
abw
e (C
AZ)
th
rou
gh s
up
po
rt t
o c
apit
al b
ud
get
TA
20
%
TA
Acti
ve
East
Asi
a an
d
Pac
ific
Mal
aysi
a P
1449
10
Mal
aysi
a N
atio
nal
Tr
ansp
ort
Str
ateg
y D
evel
op
men
t o
f n
atio
nal
tra
nsp
ort
str
ate
gy
10
%
TA
Clo
sed
East
Asi
a an
d
Pac
ific
Pac
ific
Isla
nd
s P
1555
15
Ho
st t
o t
he
Wo
rld
- P
a-ci
fic
Po
ssib
le
Sup
po
rt t
ou
rism
dev
elo
pm
ent
in s
elec
ted
So
uth
P
acifi
c ec
on
om
ies
as a
co
nd
uit
fo
r ec
on
om
ic
gro
wth
, jo
b c
reati
on
an
d t
rad
e b
y fo
ster
ing
air
trav
el c
on
nec
tivi
ty b
etw
een
th
e P
acifi
c Is
lan
ds
and
C
hin
a
65
%
ESW
A
ctive
East
Asi
a an
d
Pac
ific
Ph
ilip
pin
es
P14
5329
Tr
ansp
ort
Dev
elo
pm
ent
Fram
ewo
rk P
lan
TA
The
ob
jecti
ve in
clu
des
hel
pin
g th
e go
vern
men
t in
d
evel
op
ing
op
tio
ns
and
str
ate
gies
to
imp
rove
co
n-
nec
tivi
ty in
th
e d
iffer
ent
regi
on
s o
f th
e co
un
try
esp
ecia
lly in
ru
ral a
reas
20
%
TA
Clo
sed
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
15
T
ota
l A
viati
on
C
om
po
ne
nt
Re
gio
n
Co
un
try
Pro
ject
ID
Co
de
Pro
ject
Fu
ll N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
nen
t A
viati
on
C
om
po
-n
en
t Ty
pe
St
atu
s as
o
f En
d o
f FY
20
15
East
an
d
Cen
tral
Asi
a Tu
rkm
enis
tan
P
1523
86
Enga
gem
ent
in T
ran
spo
rt
Sect
or
To s
ho
wca
se a
nd
sh
are
inte
rnati
on
al e
xper
ien
ces
and
bes
t p
racti
ces
of
imp
rove
d c
on
nec
tivi
ty a
nd
it
s b
enefi
ts t
o p
rom
ote
co
mp
etiti
ven
ess
of
nati
on
-al
eco
no
mie
s w
ith
po
licy-
leve
l an
d t
ech
nic
al-l
evel
go
vern
men
t o
ffici
als
in T
urk
men
ista
n
10
%
TA
Clo
sed
Lati
n A
mer
i-ca
an
d C
arib
-b
ean
G
uat
emal
a P
1453
25
Gu
atem
ala
Tran
spo
rt
and
Lo
gisti
cs
The
ove
rall
ob
jecti
ve is
to
co
ntr
ibu
te t
o t
he
im-
pro
vem
ent
of
the
PP
P e
nvi
ron
men
t in
Cen
tral
A
me
rica
th
rou
gh a
ttra
ctin
g p
riva
te s
ecto
r in
vest
-m
ent,
su
pp
orti
ng
the
dev
elo
pm
ent
of
infr
astr
uc-
ture
, an
d im
pro
vin
g d
eliv
ery
of
pu
blic
ser
vice
s
15
%
TA
Clo
sed
Lati
n A
mer
i-ca
an
d C
arib
-b
ean
La
tin
Am
eric
a P
1510
23
LCR
Co
nn
ecti
vity
an
d
Equ
ity:
Reg
ion
al S
tud
y
The
ob
jecti
ve is
to
inve
stiga
te t
he
effe
cts
of
tran
spo
rt c
on
nec
tivi
ty o
n a
LC
R s
ub
regi
on
, ho
w
con
nec
tivi
ty is
ch
arac
teri
zed
sp
atial
ly, a
nd
ho
w
vari
ou
s le
vels
of
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CABO VERDE
Cabo Verde Transport Sector Reform Pro-
ject (P126516)
The objective of the project, in the IDA amount of
US$19 million, is to improve efficiency and man-
agement of the national road assets and to lay the
groundwork for transport sector State Owned En-
terprise reform. Among the concerned transport
sector State Owned Enterprises is TACV, the na-
tional airline company, which is structurally in defi-
cit. Improving the efficiency of TACV requires
strong political will and leadership given the sensi-
tivity of the company in Cabo Verde. An amount of
about US$475,000 has been allocated to the air
transport subsector in the project.
As of today, three studies have been completed to
inform decision makers and Government officials
on the possible way forward to improve the air
transport subsector. The first one is an analysis of
the impacts of air transport agreements; the sec-
ond one is the prefeasibility study of an MRO in
Cabo Verde; and the last one is the study on the
different models of public service obligation for the
archipelago. Recently, the Government has in-
formed the World Bank that they would hire a
transaction advisor via the project to assist them in
privatizing TACV. Finally, a performance agree-
ment between TACV and both the Ministry of Fi-
nance and the Ministry of Infrastructure has been
signed for the period 2014 to 2016 but the different
performance indicators would need to be moni-
tored.
Contact person is Tojoarofenitra Ramanankirahina
DEMOCRATIC REPUBLIC OF CONGO
Goma Airport Safety Improvement Project
(P153085)
In FY15, the World Bank’s Board approved a
US$52 million IDA grant to help improve the safe-
ty, security, and operations of Goma International
Airport, the main international gateway of Eastern
Democratic Republic of Congo (DRC) and repair
the infrastructure. The airport is a vital link to con-
necting the area to the rest of the country and sup-
porting ongoing peace consolidation efforts. In ad-
dition to decades of conflict, the most significant
damage to the airport’s sole runway and taxiway
resulted from the 2002 Mount Nyiragongo volcano
eruption.
The lava flow from the volcano buried more than
one third of the 3,000-meter runway and isolated
the terminal and apron, constraining humanitarian
aid flows, UN operations, and passenger and car-
go transport. There have been seven recorded air
crashes since 2002 at the airport with dozens of
fatalities, many of them attributed to the condition
of the airport.
The project will rehabilitate the airport’s runway
and apron, existing passenger terminal, and elec-
trical system, as well as supply and install a new
mobile control tower and navigational equipment to
upgrade air navigation. The project will also in-
clude the construction of the airport’s security
fence and support airport rescue and firefighting
services.
The project will also support capacity building and
project implementation through the preparation of
a rehabilitation program and provision of technical
assistance, the monitoring of volcano risks and
strengthening preparedness of the airport and sur-
rounding communities, and the strengthening of
the economic and social fabric of the communities
around the airport.
The significance of the project is evident – DRC’s
landmass is almost as large as the whole of West-
ern Europe, therefore transport remains key to in-
creasing agriculture, improving trade, supporting
mining growth, overcoming the economic and so-
cial barriers that isolate communities, and provid-
ing security throughout the country.
Contact person is Mohammed Dalil Essakali at
DEMOCRATIC REPUBLIC OF CONGO
Multi-Modal Transport Project
(P092537, P129594)
The Bank approved a US$255 million IDA grant for
the Multi-Modal Transport Project in the Democrat-
ic Republic of Congo (DRC) in 2010 as well as a
US$180 million additional financing IDA grant in
2013. The project’s main objectives are to (i) im-
prove transport connectivity in the DRC, (ii) to re-
store Société Nationale des Chemins de Fer du
Congo (National Railway Company of DRC,
SNCC) financial and operational viability, and (iii)
to strengthen transport state-owned enterprises
(SOEs) operational performance.
The project’s four main components include: (1)
SNCC recovery plan, (2) operational performance
strengthening and improved governance of the
sector, (3) international trade procedures simplifi-
cation, and (4) project management.
All funds from the original grant have been fully
disbursed and commitments under the additional
financing are progressing. The funds dedicated to
aviation finance (i) the procurement and installa-
tion of ADS-B surveillance equipment by the Na-
tional Airways Management Agency/Regie des
Voies Aeriennes (RVA), the organization in charge
of airports, (ii) a new category II ILS/VOR/DME
system for the capital’s international airport Kin-
shasa/N’Djili (FIH), (iii) two studies on the develop-
ment of airports in the country (one on freight de-
velopment at FIH, and one on secondary airports),
(iv) training for RVA personnel in air traffic control,
airport rescue and firefighting services, and (v) the
strengthening of the National Civil Aviation Agen-
cy, which is in charge of overall regulation of the
sector.
Key activities related to aviation have already been
implemented, albeit with some delays in procure-
ment and reforms. The study on the cargo zone in
Djili airport is complete and the study on second-
ary airports has started. The procurement of the
navigation assistance systems (CNS/ATM and
ADS-B) and of the landing assistance systems
(ILS/DME and DVOR/DME) is complete. Their in-
stallation on-site is being coordinated with the con-
struction of the new control tower in Njili Airport.
There still remain areas of improvement for the
reform of governance in the aviation sector. Five of
the largest airlines in DRC seeking recertification
initially failed to provide the requested documenta-
tion. The government is currently refining a sector-
wide strategy that confirms some needs, such as
direct technical assistance from ICAO. The World
Bank is coordinating with other donors, including
the African Development Bank and ICAO, on this
matter.
Contact person is Mohammed Dalil Essakali at
KENYA
Transport Sector Support Project (P124109,
P146630) and Northern Corridor Transport
Improvement Project (P082615, P106200)
A $300 million IDA commitment was approved in
2011 for the Transport Sector Support Project in
Kenya. The project’s objective is to increase the
efficiency of road transport, raise aviation safety
and security at Kenya’s airports to international
standards, and improve the institutional arrange-
ments and capacity of the transport sector.
Following the fire tragedy at Jomo Kenyatta Inter-
national Airport (JKIA) in August 2013 that de-
stroyed the only international arrival building, the
Bank provided an additional financing component
of $60 million to help finance activities to restore
the capacity of the international passenger termi-
nal destroyed in a fire at JKIA, strengthen KAA in
disaster preparedness and responsiveness at Ken-
yan airports, and fill any unanticipated financing
gaps. Most of the emergency activities at JKIA fol-
lowing the fire incident have either been completed
or are nearing completion. The outstanding emer-
gency activities are expected to be completed by
end of October 2015.
The aviation component of the project entails
providing support to the Kenya Civil Aviation Au-
thority (KCAA) in regulatory capacity building and
through specific investments in navigation aids
and training equipment. In addition, support to
Kenya Airports Authority (KAA) will include provi-
sion of a new baggage-handling system at Jomo
Kenyatta International Airport (JKIA), and capacity
building and training of manpower in safety, secu-
rity, and airports management.
As planned under the project, the Government of
Kenya agreed to the restructuring of the KCAA by
separating the oversight function from its service
provision responsibilities to improve effectiveness
of oversight services and contribute to enhanced
efficiency among service providers. Both KAA and
KCAA have been given financial autonomy and
now retain revenues generated. As part of this pro-
cess, KCAA has increased the pay packages for
key flight safety operations staff, which is critical
for carrying out its oversight function. Furthermore,
KAA has taken over the responsibility of screening
passengers and baggage from the Kenyan police.
A consultant has been selected and is assisting in
the restructuring process.
Constructing an office block to house KCAA is ex-
pected to be completed by end of October 2015
including the access road. Otherwise the rest of
the activities under this component are completed
including the supply of air navigation equipment for
enhancing the safety of the Kenyan airspace.
KAA has to conclude the procurement of several
outstanding contracts including reconstructing the
runway at MIA Mombasa, design for upgrading
power supply at MIA, design for augmenting water
supply at JKIA, MIA and Kisumu airport, and sup-
ply of apron buses at JKIA.
Implementation on the Northern Corridor Transport
Improvement Project is on track as well, despite
some delays. The expansion of apron at JKIA and
taxiways has increased the capacity of parking
space for aircrafts by 50 percent, and expanded
the capacity of the runway. The selection of a con-
sultant to update the detailed designs on the re-
modeling, renovation and expansion of Units 1, 2,
and 3 at JKIA is nearing completion but with modi-
fied scope of the assignment that has to take into
account the impact of the fire incident. The con-
struction of Terminal 4 (renamed T 1A) is complet-
ed except for two supply and install contracts that
will be completed by April 2015. Nevertheless the
terminal is in use.
Expansion and improvements at Kisumu airport is
now complete, and has contributed to the stimula-
tion of economic activities in Western Kenya. Traf-
fic at the airport has grown from 40,000 passen-
gers at the time of appraisal to 400,000 in the year
2013.
Contact person is Josphat O. Sasia at
RWANDA
Great Lakes Trade Facilitation: Kamembe
Airport (P155329)
As part of the Great Lakes Trade Facilitation Pro-
ject, the Bank is investing US$ 14.2 million in
Kamembe Airport in Rwanda, East Africa. Kamem-
be is the closest operational air gateway for
Bukavu, a city of 1 million people in DRC in the
southern tip of Lake Kivu, which is only 7km away.
While Bukavu has Kavumu as a local airport, there
are only limited domestic flights at that airport.
Kamembe, in contrast, has a comparative ad-
vantage over other airports in the region: both
Goma (DRC) and Bujumbura (Burundi) airports are
more than 100km from Bukavu while Kamembe is
25 minutes flying time from Kigali, through which
travelers can connect to the rest of the world.
The majority of passengers passing through
Kamembe are Congolese (about 90 percent), a
significant proportion of whom source tradeable
goods from the Middle East and ship them through
Rwanda. The airport has great potential, with pas-
senger traffic growing at an average of 15 percent
per annum between 2006 and 2013, and at an av-
erage of 19 percent between 2010 and 2013.
The RCAA will soon complete rehabilitation of the
60 year old runway which was in poor condition
and posed a safety risk to passengers and in-
creased costs for airlines. The project will comple-
ment the government investment in the runway
and finance new navigational aids and weather
equipment, aeronautical ground lighting, airport
perimeter fencing and lighting and a transit cargo
facility. The improvements to the airport are a pri-
ority of the government and are part of the coun-
try’s Strategic Transport Master Plan, which was
elaborated in September 2012.
Contact person is Charles Kunaka at
TANZANIA
Transport Sector Support Project
(P055120, P126206)
In May 2010, the Bank approved a credit of
US$270 million for the Transport Sector Support
Project (TSSP) in Tanzania. In support of the
Transport Sector Investment Program (TSIP), the
project’s goal is the rehabilitation and preparation
of designs for part of the paved national road net-
work, and the rehabilitation and/or upgrading of
regional airports.
The project received additional funding (AF) of
US$59 million on 30 June 2011. This prompted the
revision of the project development objectives and
expanded the scope of the aviation component.
The component for airport upgrades and rehabilita-
tion includes (i) the paving and rehabilitation of the
runway at Kigoma airport (ii) the rehabilitation of
the main runway at Tabora airport, as well as (iii)
the extension, rehabilitation and paving of the run-
way and the replacement of the apron, terminal
and car parking at Bukoba airport, which were
signed in FY12.
The works at Kigoma and Tabora Airports has
been completed and final acceptance was done in
June 2014. The Bukoba airport runway, and apron
were also completed and final acceptance was
done in December 2014. The construction of Buko-
ba airport terminal building was completed and
provisionally accepted in September 2015. The
extension, and rehabilitation and widening works
of the main taxiway (taxiway C), and the construc-
tion of the new apron, taxi way D, and a new link
taxiway in the Zanzibar airport are completed and
final acceptance is expected within January 2016.
The feasibility study and detailed engineering de-
sign of 11 regional airports as well as the prepara-
tion of the Civil Aviation Master Plan have also
been completed under the project.
Contact person is Negede Lewi at
TANZANIA
Second Central Transport Corridor Project
(P103633)
Approved for a credit of US$190 million on 27 May
2008, and additional financing of US$100 million
on 15 January 2013, the Second Central Transport
Corridor Project (CTCP2) in Tanzania aims to sup-
port the country’s economic growth by providing
enhanced transport facilities that are reliable and
cost effective, in line with the National Transport
Policy and Strategy. This includes the establish-
ment of the Bus Rapid Transit (BRT) system in Dar
es Salaam and the rehabilitation and extension of
Zanzibar airport runway.
The Zanzibar airport component (US$39.3 million)
was implemented successfully between April 2009
and July 2010 and was completed officially on 3
August 2010. The airport’s runway was rehabilitat-
ed and extended by 560 meters, from 2462 meters
to 3022 meters long. Other works included runway
marking, the construction of a perimeter access
road, repair and provision of new aeronautical
ground lights (AGL), and provision of a new filter
drainage system on each side of the runway for
the full length.
The project also financed the detailed design for
the rehabilitation and extension of Zanzibar airport
taxiways and apron and technical assistance to the
Zanzibar Ministry of Infrastructure and Communi-
cation. The apron and taxiway rehabilitation works
were implemented under the additional financing
credit of IDA’s Transport Sector Support project
(TSSP), with an allocation of US$57.23 million for
works and supervision. The project improved safe-
ty and customer satisfaction and has enabled an
increase in the number of commercial regular
flights to Zanzibar.
Contact Person is Yonas Mchomvu at
CHINA
Shangrao Sanquingshan Airport Project
(P123729)
A $50 million IBRD commitment for the Shangrao
Sanqingshan Airport Project was approved in May
2013. The overall objective of the project is to im-
prove airline connectivity in the northeastern
Jiangxi province, as well as demonstrate the envi-
ronmental sustainability of the development and
operation of the Shangrao Sanqingshan Airport.
The first component of the project covers the air-
port infrastructure development and includes the
construction and installation of the following: (a)
airfield, runway, taxiway, etc.; (b) terminal building;
(c) air traffic control; (d) freight facility; (e) support-
ing infrastructure facility, including fuel storage
farm, water supply, water supply, power supply,
fire stations, heating, storm/water management,
parking, fence, etc.; (f) environmental manage-
ment plan; (g) land acquisition and rehabilitation;
(h) auxiliary facility; (i) service vehicles; and (j)
storm water reuse system and ground aircraft aux-
iliary power unit.
The project is well on track to achieve its PDO.
With 2.5 years into implementation, the loan has
disbursed 57%, which is ahead of the disburse-
ment schedule. On the airfield construction side,
the major earthwork, taxiway, and runway have
been completed. The terminal building is in ad-
vanced stages of construction, and is following the
green airport design agreed during project prepa-
ration. Once completed, the airport will go through
evaluation and certification of the design.
The second project component finances consultan-
cy services, studies and training, including adviso-
ry services to support the Project Management Of-
fice (PMO) and Shangrao Sanqingshan Airport
Company Limited (SSAC) on project coordination
and monitoring activities. Other activities will in-
clude consultancy services to develop airport oper-
ation model for SSAC and compliance with regula-
tions and international practices.
The project management consultant was hired and
has been on board since January 2015 to assist
the PMO. To improve PMO's technical and man-
agement capacity, six trainings have been con-
ducted since January 2014. The trainings cover
the following topics: project management, contract
management, procurement for Civil Works and
Goods, procurement for consultancy service, and
financial management.
The project remains well on track to achieve its
PDO. With the construction well advanced, the fo-
cus of the project supervision has turned to opera-
tional arrangements, securing airline service
agreements, and sharing of green airport design
practices more widely.
Contact person is Binyam Reja at
PACIFIC AVIATION INVESTMENT
PROGRAM
In December 2011 IDA approved the Pacific Avia-
tion Investment Program (PAIP), a series of pro-
jects designed to ensure that critical aviation infra-
structure meets operational safety requirements,
as well as to measures to strengthen regulatory
compliance of international air transport of the par-
ticipating Pacific Island Countries. Major elements
of the US$155 million program focus on the up-
grading of and maintenance of critical airport infra-
structure, including runway and apron rehabilita-
tions, improvements to airport terminals, aeronau-
tical equipment (navigation aids, runway lighting),
fire and rescue equipment, as well as technical
assistance with strengthening of policy and regula-
tory capacity through master planning, reviewing
air services agreements and developing aviation
sector strategies.
Phase I of PAIP includes projects in Kiribati, Ton-
ga and Tuvalu. Samoa entered the program in
April 2014 as Phase 2, and IDA has since ap-
proved Phase 3 with Vanuatu in March 2015. Solo-
mon Islands remains an eligible entrant to the IDA
regional program. IDA also approved a Pacific Avi-
ation Safety Office Reform Project in September
2013 in support of the regional entity’s regulatory
advisory mandates.
The Pacific Region Infrastructure Facility (PRIF), a
multi-donor trust fund, has supported PAIP with
resources to enable the continuation of on-going
regional aviation safety and security oversight in
participating States during a restructuring and tran-
sition of the Pacific Aviation Safety Office (PASO)
through the IDA-financed PASO Reform Project.
The funding allows grant recipients to purchase
regulatory oversight advisory services in fulfilling
safety inspection requirements for international
aviation, while also supporting their obligations as
a signatory to the Pacific Islands Civil Aviation
Safety and Security Treaty.
KIRIBATI
Kiribati Aviation Investment Program
(P128938)
With an original IDA Grant commitment of
US$22.91 million, the project is entering its fourth
year in implementation. The AU$5 Safety and Se-
curity Levy on departing international passengers
has been successfully implemented and is being
collected, which represents a major policy
achievement that will result in increased fiscal re-
sources towards safer and more secure air
transport operations. Progress to date includes: (i)
construction of the security fence around Bonriki
airport to improve the safety of operations; (ii) de-
velopment of a Kiribati Transport Sector Plan, and
completion of an Air Service Agreement Study; (iii)
completion of a Training Needs Analysis with
budget available to the State for implementation.
Navigational aids and communications equipment
are expected to be installed at CXI and TRW air-
ports in 2016. Contracts for the VSAT design, sup-
ply and installation are in place and it is expected
that this will be completed in 2016, which was pro-
cured as a regional good. Also completed is the
assessment and specifications of rescue fire ser-
vice vehicles; upgrading of the airfield rescue and
fire-fighting compliance category will be achieved
after a regional procurement for vehicles is ten-
dered. An ADS-B Implementation Coordinator is
supporting equipment and equipage needs, in
preparation of a regional rollout of ADS-B, to be
procured as a regional activity. An increased use
of PASO services has been facilitated through
PRIF. Additional Financing (IDA Grant) is currently
under preparation to meet funding shortfalls on the
original project and to improve coastal protection.
Contact person is Pierre Graftieaux at
[email protected] or Christopher Bennett
SAMOA
Samoa Aviation Investment Program
(P143408)
With an original IDA Grant contribution totaling
US$25.0 million, the project is in the second year
of a five year implementation schedule. The AU$5
Safety and Security Levy was approved and began
revenue collection in late 2015, representing a ma-
jor policy achievement early in the project that will
enable increased fiscal resources towards safe
and secure air transport. Multiple activities are cur-
rently underway, and key achievements including
the completion of pavement coring and deflection
testing, and topographical surveys, which are to
inform the on-going design services for airfield
pavements. Key technical assistance activities in-
clude an Air Transport Sector Strategy and an Air-
port Development Plan and Business Strategy for
Samoa Airport Authority, the tendering of which is
expected to commence in early 2016. Contracts
for the VSAT design, supply and installation are in
place and it is expected that this will be completed
in 2016, which was procured as a regional good.
The procurement of goods and services is under-
way for modernization of air traffic communica-
tions. Also completed is the assessment and spec-
ifications of rescue fire service vehicles; upgrading
of the airfield rescue and fire-fighting compliance
category will be achieved after a regional procure-
ment for vehicles is tendered. An ADS-B Imple-
mentation Coordinator is supporting equipment
and equipage needs, in preparation of a regional
rollout of ADS-B, to be procured as a regional ac-
tivity. Other activities underway include the Train-
ing Needs Analysis, and development of a Person-
nel Licensing System. An increased use of PASO
services has been facilitated through PRIF. An Ad-
ditional Finance (IDA Credit) is under considera-
tion to substitute the European Investment Bank
contribution and to scale up apron pavement ex-
pansions and fuel hydrant extensions that result
from GoS decisions to construct of a new terminal
building.
Contact person is Christopher De Serio at
[email protected] or Christopher Bennett at
TONGA
Tonga Aviation Investment Program
(P128939)
With an original IDA Grant contribution of
US$27.21 million, the project is in the fourth year
of a five-year implementation schedule. The AU$5
Safety and Security Levy on departing internation-
al passengers has been successfully implemented
and is being collected, which represents a major
policy achievement that will result in increased fis-
cal resources towards safer and more secure air
transport operations. Upgrading and rehabilitation
of runway pavements at both the Fua’amotu Inter-
national Airport (TBU) and the Vava’u International
Airport (VAV) have commenced and are to be
completed in 2016. Several other key activities
have been completed: (i) terminal upgrade, and
commissioning of requisite security equipment on
site at Vava’u to support regional operations; (ii)
fencing repairs at Fua’amotu; and (iii) a Training
Needs Analysis with budget available to the State
for implementation. Navigational aids and commu-
nications contract is in place and the supply and
installation is planned in the first quarter of 2016.
Contracts for the VSAT design, supply and instal-
lation are in place and it is expected that this will
be completed in 2016, which was procured as a
regional good. The terminal renovation for Fu-
a’amotu International airport and the tanktainer to
support refueling operations in Vava’u for regional
flights are also planned for 2016. Also completed
is the assessment and specifications of rescue fire
service vehicles; upgrading of the airfield rescue
and fire-fighting compliance category will be
achieved after a regional procurement for vehicles
is tendered. An ADS-B Implementation Coordina-
tor is supporting equipment and equipage needs,
in preparation of a regional rollout of ADS-B, to be
procured as a regional activity. Ministry of Infra-
structure and Tourism has contracted an Aviation
Advisor to support with regulatory and policy guid-
ance.
A Regional study to develop the PASO Business
Development Plan and organizational re-structure
has been completed, financed by PRIF, and an
increased use of PASO services has been -
facilitated through the allocated PRIF budget. The
regional study on the Flight Information Region and
Upper Airspace management, financed by PRIF, has
been completed. An increased use of PASO services
has been facilitated through PRIF. An Additional Fi-
nancing (IDA Credit) is currently under consideration
and will focus on construction of a new Air Traffic
Control Tower (2017/18).
Contact person is Julie Babinard at
[email protected] or Pierre Graftieaux at
TUVALU
Tuvalu Aviation Investment Program
(P128940)
With IDA Grant contributions of US$11.85 million and
US$6.06 million, the project is in the fourth year of a
five-year implementation period. The AU$5 Safety
and Security Levy on departing international passen-
gers has been successfully implemented and is being
collected, which represents a major policy achieve-
ment that will result in increased fiscal resources to-
wards safer and more secure air transport opera-
tions. Further, Tuvalu has taken the necessary insti-
tutional steps for restructuring government depart-
ments with the separation of regulatory oversight
from airport management within the Ministry of Com-
munications and Transport. Key activities that have
been completed include: (i) the civil works to resur-
face the Funafuti runway and Funafuti roads; (ii) a
Training Needs Analysis, with the related budget in
place for State implementation and the tendering of
the new terminal, for which the construction has been
planned to commence in 2016. The navigational aids
and communications contract is in place, and the
supply and installation is planned for the first quarter
of 2016. Contracts for the VSAT design, supply and
installation are in place and it is expected that this will
be completed in 2016, which was procured as a re-
gional good. Also completed is the assessment and
specifications of rescue fire service vehicles; upgrad-
ing of the airfield rescue and fire-fighting compliance
category will be achieved after a regional procure-
ment for vehicles is tendered. An ADS-B Implemen-
tation Coordinator is supporting equipment and equi-
page needs, in preparation of a regional rollout of
ADS-B, to be procured as a regional activity. An in-
creased use of PASO services has been facilitated
through PRIF. Additional Financing, in the form of an
IDA Grant, is currently under consideration, with the
objective to accommodate cost overruns on the new
terminal design and fire rescue vehicle.
Contact person is Christopher Bennett at
[email protected] or Christopher De Serio
VANUATU
Vanuatu Aviation Investment Program
(P154149)
The project is in the first six months of implementa-
tion, having been prepared as an emergency opera-
tion, with an original IDA Credit contribution of
US$59.5 million. Completed activities include the
pavement coring and deflection testing, as well as
temporary remedial works to the runway realized in
order to ensure safe operations at Bauerfield interna-
tional airport, in Port Vila. A desktop review has been
completed to confirm the relevancy of the project in-
vestments for future aircraft operating types. The de-
sign of the Bauerfield runway rehabilitation has been
progressing and will be finalized in early 2016 on the
basis of the future needs assessment from the desk-
top review. The assessment of navigation aids and
communications requirements has been completed
and the preparation of the tender documents is
planned to start soon. Also completed is the assess-
ment and specifications of rescue fire service vehi-
cles; upgrading of the airfield rescue and fire-fighting
compliance category will be achieved after a regional
procurement for vehicles is tendered. An ADS-B Im-
plementation Coordinator is supporting equipment
and equipage needs, in preparation of a regional
rollout of ADS-B, to be procured as a regional activi-
ty. The Airport Master Plan and Aviation Sector Plan
TORs have been developed and tendering is ex-
pected to commence in early 2016. A National Pro-
ject Manager is under recruitment. The VSAT design,
management and equipment supply and installation
is planned to commence in 2016. PRIF funds have
been made available to the state in order to facilitate
the use of PASO services.
Contact person is Christopher Bennett at
[email protected] or Christopher De Serio at
PACIFIC ISLANDS
Pacific Aviation Safety Office (PASO)
Reform Project (P145057)
Complementary to major capital investments un-
dertaken through PAIP, the World Bank approved
a US$2.15 million Regional IDA Grant in Novem-
ber 2013 to support the implementation of new
business planning and processes at the Pacific
Aviation Safety Office (PASO). Established in 2004
through the Pacific Island Civil Aviation Safety and
Security Treaty, PASO supplements highly spe-
cialized expertise in aviation regulatory oversight
to ten Pacific Island Countries. However, the finan-
cial viability of the organization has been elusive.
By strengthening PASO's technical and coordina-
tion capacity, the project aims to ensure effective
delivery of aviation safety and security oversight,
and advisory services to PASO Member States.
The project is focused around three components,
namely: (i) transitional management and support
for PASO, comprising technical assistance activi-
ties that facilitate implementation of its newly
adopted business plan; (ii) the establishment of a
pool of regional aviation experts available to PASO
member states to advise on aviation safety and
security regulatory matters; and (iii) the establish-
ment of appropriate quality assurance and infor-
mation management systems.
Transitional arrangements to strengthen PASO’s
financial viability and effectiveness are underway.
An initial regional pool of inspectors with ap-
propriate credentials has been identified and
continues to offer available qualified personnel
as may be required by Member States. Senior
Regulatory Advisor has also been recruited to
(i) provide interim technical guidance in the de-
velopment of and adherence to the 2014 and
2015 Annual Work Program oversight regi-
mens, and (ii) further build upon the estab-
lished Register of Inspectors and focus on de-
veloping the Regional Program of Inspec-
torates.
A key technical assistance activity, the Finan-
cial Management and Sustainability Analysis, is
under development and will propose new
mechanisms to increase funding resources for
PASO oversight services.
An aviation legal expert is reviewing the PASO
Constitution to improve State accountabilities
and commitment to make possible recommen-
dations on amending the Pacific Islands Civil
Aviation Safety and Security Treaty
(PICASST).
An institutional specialist familiar with execu-
tive management and the aviation industry will
be developing recommendations that support a
new governance framework, which shall in-
clude a blueprint for implementation of the
agreed recommendations.
A Communications consultant has supported
the development of project elements related to
marketing and stakeholder engagement strate-
gies complete.
Contact person is Christopher De Serio at
[email protected] or Christopher Bennett at
BOLIVIA
National Roads and Airport Infrastructure
Project (P122007)
The Bolivia National Roads and Airport Infrastruc-
ture Project supports road infrastructure improve-
ment in the department of La Paz and the upgrad-
ing of airport infrastructure and equipment in the
town of Rurrenabaque in the department of Beni.
The investment is being used for the construction
of a new taxiway, apron, control tower, operations
building, rescue and firefighting buildings, an ac-
cess road, and a passenger terminal; and the ac-
quisition and installation of aviation control, rescue
and firefighting equipment.
Legacy resettlement issues have been resolved
and the client, AASANA (Administración de Aero-
puertos y Servicios Auxiliares a la Navegación
Área), is finalizing updating of technical designs
and specifications as well as of bid documents.
Procurement and consultant selection processes
are expected to be reinitiated in February 2016.
Contact person is Gylfi Palsson at
GRENADA
Regional Disaster Vulnerability Reduction
APL1 (P117871, P146768)
Grenada’s Maurice Bishop International Airport
(MBIA) functions as an important regional infra-
structure site in the region’s emergency response
capacity. It is the alternate airport for Trinidad and
Tobago, Barbados, and St. Vincent and the Grena-
dines, and provides air traffic support in emergen-
cy situations to the island of Saint Vincent. The
continued operation of the airport is therefore criti-
cal to the region as well as to Grenada. Under the
Regional Disaster Vulnerability Reduction Project,
critical investments will be financed at the airport
in order to comply with emergency response capa-
bility operational standards, as required by the In-
ternational Civil Aviation Organization (ICAO). In
the absence of these investments, Grenada and
the region risk a downgrading of its airport certifi-
cation.
Currently, the airport is in the process of installing
fire detection/ alarm system for the kitchen section
of the facility, using its own funding. This became
necessary in order to meet urgent ICAO compli-
ance requirements. The procurement of this activi-
ty is being conducted in accordance with WBG
procurement guidelines though administered and
managed by the MBIA. Outside of this there were
no other major aviation activities during FY15.
Contact person is Tiguist Fisseha at
EGYPT
Cairo Airport Development Project – TB2
(P101201)
Air transport is highly strategic for Egypt’s economic
development because it creates significant employ-
ment and supports the country’s tourism sector. In
FY09, tourism accounted for 3.5% of Egypt’s GDP
and generated US$10.5 billion in revenue and 12.4
million visitors. Around 80% of tourists came through
Egypt’s airports, and tourists represented half of the
international passenger traffic at Cairo International
Airport.
About twenty years ago, the Government of Egypt
realized the growing importance of air transport as a
driver of growth in its own right. The Government’s
objective therefore became to ensure that the liberali-
zation of air transport would contribute positively to
the development of the Egyptian aviation sector.
Thus, Egypt has embarked on the gradual liberaliza-
tion of international air services on a bilateral basis
with several countries in the Middle East, Africa, and
Europe. It has also significantly improved airport ser-
vices through a range of capacity investments and
the strengthening of airport operations.
Egypt needs to continue expanding airport infrastruc-
ture and improve airport services to meet growing
demand, especially at Cairo International Airport, the
main gateway to Egypt. It also needs to continue
strengthening air traffic control infrastructure and air
traffic management.
The Cairo Airport Development Project-TB2, ap-
proved in 2010 for an amount of US$280 million, is
primarily supporting the rehabilitation and expansion
of the Terminal Building 2 (TB2) at Cairo International
Airport, with a focus on enhancing the capacity and
the quality of services of the airport (component 1 of
the project). The component 2 consists of five studies
of technical assistance on various topics.
The project’s objectives are to (i) enhance the capac-
ity and the quality of services of the Cairo Internation-
al Airport, and (ii) improve the capacity of key stake-
holders (Ministry of Civil Aviation and the Egyptian
Holding Company for Airports and Air Navigation) in
the strategic planning of the air transport sector.
The project’s beneficiaries will be: (i) business and
tourism passengers, who will benefit from better
airport infrastructure and services, (ii) businesses,
which will benefit from extended air transport ser-
vices and a more attractive area around Cairo Air-
port International, and (iii) workers, who will benefit
from job creation through the construction phase
as well as after construction, through airport activi-
ties as well as activities of industries and services
in the area of Cairo International Airport.
In FY15, the two project components continued to
move forward, despite a challenging economic se-
curity environment. Component 1 (rehabilitation
and expansion of TB2) has progressed but is fac-
ing significant delay, partly due to the need to re-
vise the design of the building. As of June 2015,
completion of TB2 was expected for the first quar-
ter of 2016, which represents a delay of more than
a year compared to the originally scheduled com-
pletion date.
As of June 2015, four of the five studies forming
the Component 2 (technical assistance and stud-
ies) were completed, namely a review of air
transport policy of Egypt and other strategic op-
tions, a development strategy of air traffic control
infrastructure and management, an analysis of the
fee and tax structure of the air transport sector,
and a study on the spatial planning of Cairo’s air-
port area.
The fifth study, a review of civil aviation authority’s
compliance with ICAO standards and recommend-
ed practices concerning regulatory oversight of
safety and security remaining study, has been can-
celled and replaced by a safety peer-review of Cai-
ro airport. This review was funded by the Bank
loan and carried out by Airports Council Interna-
tional (ACI) in May 2015. An action plan in re-
sponse of the review was expected to be prepared
by Cairo Airport Company by the end of 2015.
Contact person is Olivier Le Ber at
YEMEN
Port Cities Development II Project
(P088435)
The primary development objective of the PCDP II
project is to improve the capacity of key transport in-
frastructure in the port cities of Mukalla and Hodei-
dah. The aviation component seeks to gain time sav-
ings for passengers landing and departing at Mukalla
International Airport.
The project closed on June 30, 2015. However, due
to the IDA disbursement suspension on March 11,
2015, the expansion of the Mukalla International Air-
port was only completed at 85%, and the airport re-
mains closed due to the ongoing conflict in Yemen.
Contact person is Sabine Beddies at
SRI LANKA
Development of Domestic Airports
(P146193)
In order to guide the Government of Sri Lanka
(GoSL) in the development of its domestic aviation
sector, and in order to determine the potential for in-
volvement by the private sector into the industry, an
“Options Study for Private Sector Participation in the
Development of the Domestic Airports Sector in Sri
Lanka” was commissioned by the Public-Private In-
frastructure Advisory Fund (PPIAF) of the World
Bank.
A key aim of the study is to provide elements to as-
sess whether a strong rationale for domestic airports
developments exists. Such rationale is meant to be
independent from availability of funds and from insti-
tutional and regulatory constraints or challenges in
the industry. Instead, it is to be based on market
analysis, including an estimate of demand for invest-
ments in domestic airports driven to support tourism
developments plans and on overall prospects for
contribution to tourism growth.
In this study, the review of the domestic aviation mar-
ket provides an understanding of existing challenges
and constraints for investments. The tourism market
study and the aviation traffic forecast for the coming
20 years provide the link between tourism growth and
airports’ development. On the basis of all the above,
opportunities for developments of domestic airports
are assessed.
In the context of a market-driven approach for airport
developments, the study reviews national airports to
identify and select some sites where the traffic fore-
cast would justify further investments, if any, also tak-
ing into account the integrated transport network
across the country. The analysis identifies whether or
not existing airport facilities are likely to be sufficient
to serve an unconstraint traffic demand in the future
and if not, which additional investments would be re-
quired.
As to private sector participation, the objective is to
develop considerations taking into account the do-
mestic aviation market, the market need for invest-
ments and key factors which impact appetite for in-
vestments from the private sector in particular. These
factors can be grouped into two areas: the first one is
the overall enabling environment for private sector
participation, in terms of institutional, legal frame-
work, and given the current role of Airport and Avia-
tion Services (Sri Lanka) Ltd (AASL) and Sri Lankan
Air Force (SLAF) in the aviation market, and the sec-
ond one is the financial viability of specific invest-
ments, which depends on project economics and dic-
tates opportunities for target investment returns. Both
areas are reviewed and implications on prospects for
private sector participations are outlined.
The last objective of the study is the review and ap-
praise the operations of AASL in order to determine
insights into the body’s competitiveness, and to iden-
tify potential options for operational or financial im-
provement.
Overall the study provides findings and recommenda-
tions based on both quantitative and qualitative anal-
ysis and reviews issues in domestic aviation in Sri
Lanka with the aim to support the GoSL in making
strategic decisions in the aviation sector to improve
efficiency and contribution to economic growth.
Some preliminary conclusions include:
Tourism growth shall drive international traffic to
21 million passengers by 2035
Demand for domestic aviation services expected
to grow from 135, 000 passengers to 337,472 by
2035 (CAGR 7%)
Low levels of demand for domestic aviation fore-
cast, compared to international air travel, signal a
small contribution to tourism development
Existing domestic airports do not constrain tour-
ism growth
No immediate infrastructure investments in do-
mestic airports is required
Financial viability of small airport operations is an
issue
Addressing market distortions and improving the
environment for the private sector is crucial for
development of domestic airports
Contact person is Amali Rajapaksa at
IFC Air Transport Projects: The IFC provides financing to private sector
companies and has traditionally financed air carriers and airport infrastructure
projects.
IFC
PR
OJE
CT
S
CO
UN
TRY
P
RO
JEC
T C
OD
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ESC
RIP
TIO
N
AM
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(USD
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C’S
EX
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20
15
) U
SD*
TYP
E
Afr
ica
(Mal
i, B
urk
ina
Faso
, Uga
nd
a)
270
48
AK
FED
Avi
atio
n: G
ener
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urp
ose
loan
to
a
regi
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llian
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fric
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$2
5 m
illio
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$1
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mill
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A
Lo
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Cam
bo
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2
1363
C
amb
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irp
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s: P
riva
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hn
om
Pen
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tern
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Air
po
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0 m
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Pro
ject
Clo
sed
A
Lo
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Cam
bo
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2
5332
Cam
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Air
po
rts
II: P
riva
tiza
tio
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f P
hn
om
Pen
h In
tern
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nal
Air
po
rt –
re-
qu
ired
cap
ital
an
d in
vest
men
ts f
or
ex-
pan
sio
n
Up
to
$1
7.5
mill
ion
$
2.9
mill
ion
IFC
A L
oan
up
to
$
7.5
mill
ion
, IFC
st
and
by
up
to
$
10
mill
ion
Co
te D
'Ivo
ire
320
61
IAS:
Acq
uis
itio
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f u
p t
o 3
sec
on
dh
and
D
aup
hin
N3
hel
ico
pte
rs t
o p
rovi
de
tran
spo
rt s
ervi
ces
to le
adin
g o
il an
d g
as
exp
lora
tio
n a
nd
pro
du
ctio
n c
om
pan
ies
$7
mill
ion
$
2.7
mill
ion
A
Lo
an
Do
min
ican
Rep
ub
lic
278
83
Pu
nta
Can
a A
irp
ort
: Cap
acit
y ex
pan
sio
n
$2
0 m
illio
n
Pro
ject
Clo
sed
A
Lo
an
IFC
PR
OJE
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S
CO
UN
TRY
P
RO
JEC
T C
OD
E D
ESC
RIP
TIO
N
AM
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NT
(USD
) IF
C’S
EX
PO
SUR
E (a
s o
f En
d-o
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20
15
) U
SD*
TYP
E
Jam
aica
1
1353
, 246
76,
243
06, 2
6202
, 3
1658
Mo
nte
go B
ay A
irp
ort
: Op
erati
on
an
d
exp
ansi
on
of
San
gste
r In
tern
atio
nal
Air
-p
ort
; im
pro
vem
ent
of
the
exis
tin
g te
rmi-
nal
an
d t
he
con
stru
ctio
n o
f a
new
co
n-
cou
rse
(11
35
3)
$2
0 m
illio
n (
11
35
3)
$1
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illio
n (
11
35
3)
A a
nd
B L
oan
s (1
13
53
)
MB
J P
has
e 1
Sw
ap: T
he
pro
po
sed
pro
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ct is
to
pro
vid
e a
USD
inte
rest
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ate
vola
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her
ent
in t
he
flo
atin
g ra
te IF
C P
has
e 1
lo
ans
(24
67
6)
$1
.2 m
illio
n (
246
76
) $
0.9
mill
ion
(2
46
76
)
Clie
nt
Ris
k M
an-
agem
ent
– In
ter-
med
iati
on
(2
46
76
)
MB
J P
has
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- Ex
pan
sio
n a
nd
re
dev
elo
p-
men
t o
f Sa
ngs
ter
Inte
rnati
on
al A
irp
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(2
43
06
)
$4
2 m
illio
n; $
20
mill
ion
fo
r IF
C’s
ow
n a
cco
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t (2
43
06
) $
13
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illio
n (
24
30
6)
A a
nd
B lo
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(24
30
6)
MB
J (C
UTE
): F
inan
cin
g fo
r n
ew C
om
mo
n
Use
Ter
min
al E
qu
ipm
ent
(CU
TE)
and
B
agga
ge H
and
ling
and
Scr
een
ing
(BH
S)
syst
ems
for
San
gste
r In
t'l A
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. P
ro-
ject
clo
sed
on
06
/12
/20
13
(2
62
02
)
$5
mill
ion
(2
62
02
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roje
ct c
lose
d
A L
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(2
62
02
)
MB
J R
OS:
Th
e p
rop
ose
d p
roje
ct c
on
sist
s o
f th
e ru
nw
ay o
verl
ay o
f Sa
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ter
Inte
r-n
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nal
Air
po
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SIA
) an
d o
ther
saf
ety
inve
stm
ents
(3
16
58
)
$7
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illio
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316
58
) $
6.8
mill
ion
(3
16
58
) A
an
d B
loan
s (3
16
58
)
IFC
PR
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CT
S
CO
UN
TRY
P
RO
JEC
T C
OD
E D
ESC
RIP
TIO
N
AM
OU
NT
(USD
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C’S
EX
PO
SUR
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s o
f En
d-o
f-FY
20
15
) U
SD*
TYP
E
Jord
an
261
82, 2
6864
, 2
6685
Qu
een
Alia
Inte
rnati
on
al A
irp
ort
: Re
ha-
bili
tati
on
of
bo
th a
irsi
de
and
lan
dsi
de
faci
lities
$2
95
mill
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; $12
0 m
il-lio
n f
or
IFC
’s o
wn
ac-
cou
nt
$1
13
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illio
n, $
21
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il-lio
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20
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n
IFC
A L
oan
$8
0
mill
ion
an
d S
yn-
dic
ated
B lo
an
$1
75
mill
ion
(2
61
82
)
IFC
C $
40
mill
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C
ross
Cu
rren
cy
Swap
s (2
68
64
, 2
66
85
)
Ke
nya
3
1650
KQ
Air
way
s: E
xpan
sio
n p
rogr
am c
on
-si
stin
g o
f th
e ac
qu
isiti
on
of
9 B
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ng
78
7
Dre
amlin
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ircr
afts
and
10
Em
bra
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90
ai
rcra
fts
$2
5 m
illio
n
$1
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mill
ion
Eq
uit
y
Nep
al
272
47, 3
1446
Bu
dd
ha
Air
: Pu
rch
ase
of
smal
l air
craft
an
d lo
ng
term
wo
rkin
g ca
pit
al r
equ
ire-
men
ts
$1
0 m
illio
n, $
6.9
mil-
lion
$
3.9
mill
ion
(2
72
47
) IF
C A
loan
B
ud
dh
a A
ir II
: Fin
anci
ng
to B
AP
L (B
ud
dh
a A
ir P
riva
te L
imit
ed)
to p
urc
has
e it
s se
c-o
nd
ATR
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air
craft
. In
vest
men
t fu
lly
rep
aid
Per
u
244
89
Lim
a A
irp
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s P
artn
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ip: F
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cial
re
-st
ruct
uri
ng
and
ass
ista
nce
in c
on
jun
ctio
n
wit
h F
rap
ort
$
20
mill
ion
$
16
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n
Equ
ity
IFC
PR
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S
CO
UN
TRY
P
RO
JEC
T C
OD
E D
ESC
RIP
TIO
N
AM
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(USD
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C’S
EX
PO
SUR
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s o
f En
d-o
f-FY
20
15
) U
SD*
TYP
E
Ru
ssia
n F
eder
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n
282
18
Pu
lko
vo A
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: Fin
anci
ng
to e
xpan
d,
dev
elo
p, o
per
ate
and
mai
nta
in a
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ort
$2
36
mill
ion
; $1
01
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ion
fo
r IF
C’s
ow
n
acco
un
t $
74
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illio
n
A &
B L
oan
s
Tun
isia
2
6913
, 280
76
TAV
Tu
nis
ia: C
on
stru
ctio
n o
f a
new
air
-p
ort
in E
nfi
dh
a, w
ith
an
initi
al c
apac
ity
of
7 m
illio
n p
asse
nge
rs p
er y
ear,
an
d r
eh
a-b
ilita
tio
n o
f th
e ai
rpo
rt in
Mo
nas
tir
$2
53
mill
ion
; $1
84
mil-
lion
fo
r IF
C’s
ow
n a
c-co
un
t $
10
8.4
mill
ion
(2
69
13
)
IFC
A L
oan
, Su
b-
ord
inat
ed
Lo
an,
Syn
dic
ated
B
Loan
, Eq
uit
y
Afr
ica
Reg
ion
3
2546
A
SEC
NA
: Fin
anci
ng
to
en
han
ce m
emb
er
cou
ntr
ies’
air
po
rt f
acili
ties
an
d t
o r
ein
-fo
rce
air
traffi
c se
curi
ty in
th
e re
gio
n.
$3
6.0
3 m
illio
n
$3
0.8
mill
ion
A
Lo
an
Jord
an
345
36
Qu
een
Alia
II: S
tage
2 o
f ex
pan
sio
n a
nd
re
hab
ilita
tio
n o
f Q
AIA
co
nsi
stin
g o
f d
e-m
olis
hin
g o
f th
e o
ld t
erm
inal
s an
d a
n
exte
nsi
on
of
the
pie
rs w
ith
ad
diti
on
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AFRICA: AKFED Aviation
The Aga Khan Fund for Economic Development
(“AKFED”), through its Aviation Services division,
is currently expanding its activities in both East
and West Africa. The aim of the division is to as-
sist in maintaining the critical aviation infrastruc-
ture in support of economic development and to
provide much needed regional airline services in
Africa. IFC’s involvement with the organization in-
cludes a corporate loan of up to $25 million to AK-
FED for on-lending to its three airlines: Air Burki-
na, Air Mali and Air Uganda. This allows AKFED to
consolidate all of the division’s airlines and avia-
tion activities and optimize routing, synergies and
overall effectiveness across the group’s airline op-
erations.
Loan proceeds will be used to fund fleet acquisi-
tion cost (introduction of 9 refurbished MD-87 and
2 MD-83 aircraft) and other airline development
costs including training of crews and engineers,
purchase of spare parts, and improving mainte-
nance facilities.
The project is expected to promote inter-regional
and international trade in the region. Additionally,
the project is also expected to provide a boost to
tourism. Continued trade and economic growth in
Africa is contingent on further investments and im-
provements in regional transport infrastructure and
services. The division’s operation will fill the ser-
vice gap that exists today and will result in in-
creased frequencies for existing destinations as
well as the addition of new destinations, better
passenger service and improved efficiency and
safety. Such improvements will increase the con-
nectivity, competitiveness and attractiveness of
these countries’ economies. Moreover, the project
will support regional integration by assisting the
development and expansion of a group of regional
airlines.
SUB-SAHARAN AFRICA: ASECNA
The Agence pour la Securite de la Navigation Aer-
ienne en Afrique et a Madagascar (ASECNA) is a
multi-state governmental agency. It was created in
1959 and is composed of 18 member countries
(Benin, Guinea Bissau, Burkina Faso, Cameroon,
Central African Republic, Chad, Comoros, Congo,
Cote d’Ivoire, Equatorial Guinea, France, Gabon,
Madagascar, Mali, Mauritania, Niger, Senegal,
and Togo).
ASECNA is responsible for the design, implemen-
tation and management of facilities and services
related to the transmission of messages and traffic
information, guiding aircrafts, air traffic control,
forecasting and reporting meteorological infor-
mation, for traffic route, approach and landing at
airports in African members countries. It is also in
charge of the maintenance of all facilities required
for the implementation of these services, including
the management of an airspace covering 16 mil-
lion square km, with a total of 32 airports.
IFC investment consist of an A loan of USD$38.98
million aimed at financing a list of specific infra-
structure refurbishment including purchase and
installation of back-up power equipment in a num-
ber of member countries in Africa. The loan is de-
signed to promote regional and integration and
improve air space management facilities, infra-
structure, and communications thus enhancing
member countries’ safety in the air transportation
sector.
COTE D’IVOIRE: International Aircraft
Services
The project, which was approved in March 2013,
provides financing of $7 million to International
Aircraft Services (IAS) for the acquisition of up to
three secondhand Dauphin N3 helicopters by IAS.
The helicopters will be used to provide transport
services to leading oil and gas exploration and
production companies in Cote d’Ivoire and the
Western African region. The project will enable
IAS to modernize its fleet with newer helicopters to
meet its client needs.
IAS is an aviation operator and maintenance com-
pany created in 2002 and registered with the Ivory
Coast Civil Aviation Authority. It provides mostly
helicopter transport services to the oil and gas in-
dustry in Cote d’Ivoire and to the mining industry
in West Africa. The company currently owns 13
helicopters and employs 25 pilots. IAS is based in
Felix Houphouet-Boigny International Airport,
which is approximately 16 km south east of Abid-
jan.
The expected development impact will be develop-
ing local know-how, and support the development
of exploration and production of natural gas activi-
ties by providing reasonably priced transportation
services. The project also hopes to create a
demonstration effect by providing financing to a
company in a post-conflict country to pave the way
for more investments in the future.
CROATIA: Zagreb International Airport
The IFC is supporting the development of a termi-
nal at Zagreb International Airport as part of a
Public Private Partnership (PPP). The new
USD$450 million terminal, built by a consortium
supported by IFC, is expected to contribute to eco-
nomic growth and tourist activity. Tourism is a ma-
jor driver of employment in Croatia, and improved
infrastructure will develop the sector and boost
GDP. IFC is committing as much as USD$73 mil-
lion to the project, including a loan of up to
USD$47 million and an equity investment of—
Zagreb International Airport
nearly USD$26 million. The concession includes
financing, design, and construction of the terminal,
along with airport operation until 2042.
The new terminal will be 65,000 square meters
and is expected to welcome 5 million travelers per
year when it opens in 2017, compared to the cur-
rent capacity of 2 million, a 150% capacity in-
crease. An average of 400 new jobs are expected
to be created during construction, and up to 700 at
peak. For the first time in Croatia, private firms
involved in a transport concession project have
assumed passenger volume risks, enabling the
country to upgrade essential infrastructure without
adding a burden to state finances.
KENYA: Kenya Airways Expansion Plan
Kenya Airways Ltd. (KQ) the national flag carrier
of Kenya and the third largest airline in Sub-
Saharan Africa (in terms of seat capacity offered)
is in the midst of implementing a strategic fleet
and network expansion plan. It is focused on
growing its passenger network and diversifying its
fleet to match the network needs, as well as
launching a dedicated freighter division. Having
reached a critical mass and achieved a solid finan-
cial position, KQ finds itself well positioned to capi-
talize on the growth prospects and opportunities
that the African region and the international mar-
ket present.
KQ’s strategic intent is to establish its brand and
its presence in the most important intra-African
markets as well as become a significant player in
long haul origin-destination city pairs that are ex-
pected to grow over the next few years. To imple-
ment the project, the company has placed firm or-
ders to aircraft manufacturers in connection with
the acquisition of nine Boeing 787 Dreamliner air-
craft and ten Embraer 190 aircraft.
IFC's support of Kenya Airways expansion plan is
expected to have significant development impact.
At the regional level of Sub Saharan Africa, the
launch of the freighter division coupled with the
opening of new intra-Africa destinations will con-
tribute to markets integration and will reduce the
transactional costs of trade, an aspect that is ex-
tremely important to promote the economic devel-
opment of the SSA economies.
KQ's entry into new international markets will also
promote competition as well as provide a key
transportation link between growing economies in
the Middle East and Northern Africa region and
Asia promoting international trade, South-South
Investments and tourism to and from Africa.
MEXICO: Vuela Aircraft Financing
Vuela (branded Volaris) commenced operations
on 13 March 2006. It initially operated five routes
with four aircraft throughout Mexico from its base
at Aeropuerto Internacional de Toluca but has
plans to grow significantly over the next decade,
with a planned fleet of 90 aircraft including Airbus
319, A320 and A320 Neo.
Vuela will provide substantially discounted fares in
a market historically marked by limited competition
and high fares. This is expected to help stimulate
demand and make air transportation more acces-
sible for a larger share of the Mexican population,
promote connectivity, and economic growth.
The IFC investment is an IFC revolving credit line
of $30 million for the financing of aircraft pre deliv-
ery payments and a $10 million loan to Con-
troladora Vuela Compañia de Aviación, S.A de
C.V. (Controladora) with Concesionaria Vuela
Compañia de Aviación, S.A de C.V. as the guaran-
tor (Vuela or the company), a newly established
low cost airline, branded as Volaris.
NEPAL: Buddha Air II
Air connectivity is a key requirement in Nepal giv-
en its difficult terrain and poor road network. Do-
mestic airlines are needed to provide reliable and
safe air services. With tourist arrivals in Nepal
growing at 12% annually since 2006, and a greater
focus on tourism revenues with GDP growing at
~4.5% p.a., the requirement for domestic tourist
airline seats is expected to grow even further.
Buddha Air Private Limited is a closely held private
limited company providing air services since 1997.
BAPL currently has 357 seats across a fleet of
three Beechcrafts (18 seats), three ATR-42s (47
seats) and two ATR-72 (72 seats). The expansion
to its current fleet had been partially financed by
an IFC corporate loan of $US10 Million in FY09.
BAPL had a 42% market share by passengers in
the first half of 2011, and was the first one to bring
in larger 45 seater turbo prop aircraft for domestic
routes in Nepal and also the first to fly to Bhutan
and to towns across the Indian border.
The project Buddha Air II addresses two pillars of
CSA strategy; (i) by facilitating passenger and car-
go transport between India and Nepal it supports
regional integration; (ii) by enhancing transport
and access across Nepal at reasonable cost, it
supports inclusion in Nepal. The project also fits
well with the FY11-13 WBG ISN which highlights
connectivity and private sector growth.
IFC is providing financing of $6.9 million to BAPL
for acquisition of a second ATR-72 aircraft which
BAPL is currently operating on a lease basis. IFC's
will also help the Company enhance safety stand-
ards and undergo IATA IOSA audit.
Contact persons for all IFC projects is
Harsh Gupta at [email protected].
The Infrastructure Advisory Services Department
of the IFC provides advisory assistance to govern-
ments on structuring and implementing (tendering)
Public-Private-Partnerships (PPPs) in infrastruc-
ture. IFC has undertaken more than 100 advisory
transactions in over 67 countries over the last 20
years. IFC/World Bank's reputation for compe-
tence, transparency, and fairness allows it to play
the role of neutral partner to balance each party's
interest, thus reassuring foreign investors, local
partners, other creditors, and government authori-
ties
The two main domains in air transportation adviso-
ry services are private sector participation in air-
ports and air carriers.
1) IFC Public-Private Partnerships (PPP) Advi-
sory Mandates in Airports
Only a fraction of the world’s commercial airports
are managed or owned by private sector entities.
However, as passengers carried by air transport
has neared seven billion in 2014, and that same
year, more than 1/3 of all merchandise and goods
(in value) were air freighted – Public-Private-
Partnerships (PPPs) in airport infrastructure will
grow to meet investment and required service
standards. Airport PPPs are useful approaches to
meet both private and public sector objectives.
Of the various airport PPP models available, expe-
rience shows that concessions and full divestiture
are most effective:
Concession Contracts (BOT, BOO, BOOT,
BTO, etc.): State retains ownership of airport
but transfers investment as well as operations
and management responsibilities to the private
sector
Full Divestiture: Ownership, operations, and
investment responsibilities are fully transferred
to the private sector.
In certain cases, a blend of first-phase BOT
followed by public offering can maximize bene-
fits
In certain cases, a blend of first-phase BOT fol-
lowed by public offering can maximize benefits.
2) IFC Public-Private Partnerships (PPP) Advi-
sory Mandates in Airlines
As the airline industry has proceeded along this
privatization path over the last 30 years, IFC has
participated in nearly a dozen airline transactions.
Unfortunately, many have proved to be difficult
projects due to important sector-specific structural
reasons:
Fixed-cost structure: Airlines tend to build up a
legacy-costs base (staff and fleet) that is diffi-
cult for a new owner to manage. In addition,
fuel costs are beyond management’s control.
During the period of higher oil price in 2011-
2014, they accounted for as much as 30% of
the cost base (up from 15-20% in 2009), and
have since dropped with declining oil prices
(variations according to individual airline hedg-
ing strategies).
Price-sensitive product: Demand for travel is
highly elastic, especially in tourist markets. In
recessions, people forgo vacations for other
consumer goods. Conversely, price reductions
increase passenger numbers dramatically.
Complicated demand chain: Customers often
purchase tickets through travel agents, fre-
quently in a package with hotel accommoda-
tions. Since airlines rely on these other actors
for their sales, if there are bottlenecks else-
where the aviation sector suffers.
Overregulation: Bilateral agreements between
governments, still prevalent in many parts of
the world, prevent competition from functioning
normally. Open skies are being adopted, but
not in all countries.
3) IFC Air Transportation Experience
When undertaking a transaction advisory man-
date, IFC provides a one-stop solution to govern-
ments covering all aspects of the proposed trans-
action. One of the distinguishing features of IFC’s
value addition is its ability to balance private and
public sector interests and take into account sus-
tainable long term economic and social effects.
Selected IFC Advisory Mandates in Airlines
PROJECT NAME COUNTRY YEAR MANDATE/RESULT
Air Jamaica Jamaica 2009 Awarded to Caribbean Airlines
Drukair Bhutan 2008 Strategic analysis
JAT Yugoslavia 2006 Strategic analysis
Polynesian Airlines Samoa 2005 49% sold to Virgin Blue
Cameroon Airlines Cameroon 2005 Awarded but cancelled by Govern-
ment
Air Tanzania Tanzania 2002 49% sold to SAA
Kenya Airways Kenya 1996 76% sold to KLM, financial investors
Selected IFC Advisory Mandates in Airports
PROJECT NAME COUNTRY YEAR MANDATE/RESULT
Jeddah Airport Saudi Arabia 2014-ongoing Project structuring being finalized
Taif Airport Saudi Arabia 2014-ongoing Initial due diligence is ongoing
Brazilian Airports Brazil 2014
Galeao and Confins Airports success-
fully awarded to Changi and Zurich
Airport led consortiums respectively
Saint Lucia Airport Saint Lucia 2013-ongoing Project structuring being finalized
Madinah Airport Saudi Arabia 2012 Successfully awarded to TAV, Saudi
Oger, Al Rajhi consortium
Dili Airport East Timor 2012-ongoing Project structuring finalized
Jamaica Airports Jamaica 2011-ongoing RFQ process initiated
Queen Alia Airport Jordan 2007 Successfully awarded to Aéroports de
Paris, ADIC, J&P, Noor consortium
Hajj Terminal Saudi Arabia 2007
Successfully awarded to Saudi Bin
Laden Group, Aéroports de Paris con-
sortium
Abuja Airport Nigeria 2006
Successfully awarded to Abuja Gate-
way consortium (Airport Authority
and equity partners)
Building on a previously completed round of con-
cessions from 2011, the Brazilian Development
Bank (BNDES) approached IFC in mid-2012 to as-
sist with the second round of airport concessions,
covering Galeão and Confins airports, in coopera-
tion with Estruturadora Brasileira de Projetos
(EBP). The National Aviation Secretary (SAC) au-
thorized EBP to develop the financial, engineering,
and environmental studies necessary for the two
airport projects. In order to undertake these activi-
ties, EBP and IFC signed a Cooperation Agree-
ment, with IFC focusing principally on the technical
workstream. Both projects closed in April 2014.
Galeão International Airport is located in the
southeast region of Brazil; the airport serves as a
major air transportation hub for the country and
region. The Galeão project was structured as a 25
-year concession, through which the operation and
management of assets is transferred to the con-
cessionaire. The concessionaire is responsible for
providing all necessary investments, including civil
works, to meet growing demand. Galeão airport
was awarded to the Aeroportos do Futuro consorti-
um, composed of Odebrecht, a leading Brazilian
engineering and construction company, and
Changi Airport Group. The winning bid was
US$7.9bn, and US$2bn will be invested over the
concession term.
Confins International Airport, is the main com-
mercial airport in the Belo Horizonte region, with a
population of approximately six million people.
The project was structured as a 30-year conces-
sion, through which the O&M of assets is trans-
ferred to the concessionaire. The concessionaire
has the responsibility to provide all the necessary
investments, including civil works, to meet growing
demand. Confins was awarded to the Aerobrasil
consortium, composed by CCR/SA, a large Brazili-
an engineering and construction company, and
Flughafen Zurich AG. The winning bid was
US$750m, and US$1.2bn will be invested over the
concession term.
Contact persons for all IFC air transport advisory
services projects are:
Ramatou Magagi at [email protected].
Alexandre Leigh at [email protected].
GALEÃO AND CONFINS AIRPORTS
Guarantees provided by the Multilateral
Investment Guarantee Agency (MIGA)
cover projects in a broad range of sectors,
with projects in infrastructure accounting
for the largest share (41%) of the agency’s
portfolio. Infrastructure development is an
important priority for MIGA given the esti-
mated need for US$230 billion a year
solely for new investment (maintenance
needs are of a similar magnitude) to deal
with rapidly growing urban centers and
underserved rural populations in develop-
ing countries. Two recent example pro-
jects of MIGA guarantees include Jorge
Chavez International Airport in Peru and
New Airport in Ecuador.
EQUADOR: New Airport at Quito
MIGA issued three guarantees of US$32.8
million, US$16.4 million, and US$16.4 mil-
lion to the Aecon Group INC. of Canada,
the HAS Development Corporation of the
United States, and ADC Management Ltd.
of the United Kingdom for their respective
shareholder loans to Corporacion Quiport
of Ecuador. In addition, MIGA also issued
guarantees of US$450,000, US$225,000,
and US$225,000 for the investors' respec-
tive equity investments in the project en-
terprise.
The Aecon Group and HAS Development
Corporation have coverage for a period of
14 years for their shareholder loans, while
the remaining four guarantees are for a
period of 15 years. Each guarantee pro-
vides coverage against the risks of Trans-
fer Restriction, War and Civil Disturbance,
and Breach of Contract.
The project involves the construction of a
new airport near Puembo, 24 km outside
the capital city of Quito. The project will be
a key economic driver for sustainable eco-
nomic development of the metropolitan
region of Quito. The airport replaces the
existing airport in the city of Quito, which
suffers from safety deficiencies as well as
capacity constraints.
PERU: Jorge Chavez International
Airport (JCIA)
MIGA provided Fraport AG, of Germany
with a guarantee of US$11.5 million to
cover its US$12.8 million counter guaran-
tee for a performance bond posted for the
privatization of Lima's airport, Jorge
Chavez International Airport (JCIA). The
coverage is against the risk of expropria-
tion (the wrongful call of the performance
bond), and extends for eight years.
The Peruvian government views airport
privatization as central to its efforts to ex-
pand employment opportunities, and cre-
ate a modern transportation facility to
serve as the country's gateway to the
world. It will also enhance and expand
tourism, another key government goal.
During the first four years of the conces-
sion, the consortium is expected to invest
over US$130 million in new infrastructure,
including upgrades to the current terminal,
construction of a new passenger con-
course, expansion and addition of new air-
craft aprons and taxiways, and creation of
a hotel and retail center within the existing
airport perimeter.
Contact person for all MIGA guarantees is
Carlo Bongianni at
AIR TRANSPORT AND TOURISM:
A FOCUS ON THE PACIFIC
The Tourism and Travel industry is one of
the largest in the world. The total economic
contribution from the sector represents 9
percent of global GDP, 6 percent of world
trade, and 1 out of every 11 jobs. Nearly
half of the one billion international tourist
arrivals are in emerging and developing
economies.
The World Bank Group (WBG) directly and
indirectly supports the industry through a
range of activities including financing for
airport development, urban regeneration,
and investment in leisure resorts and ho-
tels.
In May 2015, the Air Transport Community
of Practice (T&I GP) and the WBG’s newly
formed Sustainable Tourism Solutions
Group organized a workshop with the
theme of Air Transport and Tourism, focus-
ing on the Pacific Islands. As a remote re-
gion with small populations dispersed
across several islands and vast expanses
of ocean, safe and efficient air travel is crit-
ical to ensure connectivity to other markets
and to support tourism activities.
Three speakers presented on various as-
pects of WBG activities in the region: Chris
Bennett, Lead Transport Specialist, dis-
cussed the Pacific Aviation Investment Pro-
gram; John Perrottet, Senior Industry Spe-
cialist, provided an overview of tourism ini-
tiatives and investments; and Daniel
Saslavsky, Trade Specialist, described cur-
rent research being undertaken to spur de-
mand for tourism in the region. The presen-
tations stimulated an engaging discussion
on how to optimize the development impact
of aviation and tourism.
Aviation plays a fundamental role in Pacific
Island countries, supporting economic de-
velopment, travel for work, education,
health, tourism, and family connections.
The Pacific Aviation Investment Program
(PAIP) is a $180 million regional World
Bank program covering Kiribati, Tonga, Tu-
valu, Samoa, and Vanuatu. It is investing in
vital aviation infrastructure, management,
and operations.
Identified issues in the Pacific include inad-
equate equipment, terminals, fire safety
equipment, and Air Traffic Control. For ex-
ample, many of the runways in the region
were built in the 1960s-70s under colonial
times and are now failing, requiring much
needed investment. Strong efforts are also
being made to improve aviation safety and
security through the program.
Chris Bennett, Task Team Leader (TTL) of
PAIP, described some of the special fea-
tures of the program’s regional approach,
notably a centralized Technical and Fiduci-
ary Services Unit (TFSU) based in Tonga.
There are a number of benefits from shar-
ing critical functions (such as financial and
contract management, procurement, etc.),
including harmonized equipment and regu-
lations, improved safety oversight, and effi-
ciencies in costs across the region. Each
country’s contribution to the unit is propor-
tionate to the size of project investments in
the country.
The tourism and aviation industries in the
South Pacific are intrinsically linked given
the vast distances. With a collective 1.5
million visitors to the region per year
(compared to 8 million in Hawaii), the Pa-
cific still represents a developing tourism
market. John Perrottet described the tiered
structure of the visitor market in the Pacific
(around 700,000 visitors go to Fiji, the larg-
est market, followed by Vanuatu, Samoa
and Cook Islands in the 100,000 visitor
range). In terms of capacity, the Pacific Islands
have 2,000 hotels consisting of 35,000 rooms, and
44 internationally branded hotels operate in the
region.
There are a number of examples of WBG involve-
ment in the tourism sector, including the Fiji Out-
rigger Reef Resort and Samoa’s Sinalei Resort
and Spa. WBG has also advised Papua New Guin-
ea’s Office of Tourism and Palau to form the Sus-
tainable Tourism Unit within the President’s Office.
IFC was the lead transaction advisor for the partial
privatization of Samoa’s Polynesian Airlines. Other
ongoing work include a study assessing the eco-
nomic impact of the cruise tourism in Vanuatu and
exploring the feasibility of flight-cruise links.
There is a strong case to support new arrival mar-
kets, as data shows that smaller islands like Sa-
moa and Vanuatu have been stagnant for the past
5 years due to reduction in arrivals from core mar-
kets (Australia, New Zealand). The question is
how to access these markets for a larger impact.
Daniel Saslavsky described ongoing research fo-
cused on promoting the Pacific market in China,
now the world’s largest source market worth
US$129 billion yearly. China has doubled out-
bound tourism since 2007, with over 100 million
Chinese visitors currently traveling abroad. How-
ever in the Pacific, this segment still represents a
modest share of inbound tourism (around 3 per-
cent) but the market is expanding at a faster rate
than established source markets.
Some constraints identified by Chinese tour opera-
tors include flight connectivity, receiving capacity
of tourism operators, ICT connectivity, and aware-
ness and marketing in China. The Pacific com-
petes with other more established destinations
(e.g., Seychelles, Maldives) which already have
direct charter flights from China and varying price
points (e.g., the price point for Vanuatu/Samoa/Fiji
is at 20,000-25,000 CNY or US$3,000-4,000;
which is higher than comparable destinations).
The objective of the ongoing study is to support
tourism development in select Pacific economies
(primarily Samoa and Vanuatu); to understand the
mechanisms for increasing flight connectivity
(mainly through charters); and to understand the
potential impact and cost of such instruments and
types of investments needed to grow arrivals from
these markets.
A CONVERSATION WITH BRIAN PEARCE,
CHIEF ECONOMIST, IATA
The Air Transport Community of Practice (ATCOP)
hosted an event with Brian Pearce, Chief Econo-
mist of IATA in June 2015. A lively discussion at-
tracted colleagues from across the WBG including
Transport, Trade and Competitiveness, and Cli-
mate Change practices. A variety of topics were
discussed including potential areas of collabora-
tion on research, particularly WBG’s proposed
“Doing Air Transport” assessment tool, still in the
preliminary concept stage.
Pearce also shared some key takeaways from the
Annual General Meeting (AGM) in Miami, FL. In-
dustry support was reiterated for states to come to
an agreement at the 2016 Assembly for a growth
neutral mechanism. The general mood was very
positive – it was the first time the industry was
able to generate enough returns to meet the cost
of capital. The challenge for airlines remains con-
vincing policymaking they should be making re-
turns for investors. There is also a risk that the in-
dustry appears to be anti-consumer (e.g., in-
fighting over market access, Gulf Carriers). The
industry’s commitment to open skies and liberali-
zation was also reiterated, the problem remains
how to implement it.
Contact person for ATCOP is Charles E.
Schlumberger at [email protected].
The Bank has maintained an evaluation
tool for assessing risks associated with air
travel for mission travel since 2008. The
air carrier advisory system developed by
the Bank’s General Services Department
and Air Transport team was launched in
FY2011. Airline ratings/risk are based on
the following criteria:
Risk Criteria:
1. Serious accident in the last 3 years
(defined as any incident that results in in-
jury or death of a passenger, or substan-
tial damage to the aircraft)
2. Registered in a country with poor over-
sight (based on ICAO safety audit)
3. A flag of convenience airline (an airline
that is registered and maintained in a
country other than where it operates)
4. Use of aircraft over 20 years old
Overall there were 170,087 flights booked
by American Express for Bank staff in Fis-
cal Year 2015 (from HQ). The majority of
flights booked were with airlines consid-
ered to be “Good to fly”. Note: This data
does not capture trips arranged in the re-
gions.
Travelers should be aware that surface
transportation may not always be possible
or may represent more risks than air travel
in some client countries. The advisory
team continues to provide on-demand as-
sessments and safety advice for opera-
tional staff.
Contact person is Shruti Vijayakumar at
1
All airlines that are industry certi-fied by having passed an IATA IOSA audit, unless subsequent safety experience indicates a safe-ty problem.
Good to fly. The Bank has no objection to using these airlines.
2
All airlines that though they are not industry certified are either li-censed by a country with an FAA IASA rating of Category 1, or are known to the Bank as safe carri-ers.
Good to fly. The Bank has no objection to using these airlines.
3
All airlines that are not in (1) or (2) above, or are on any blacklists, or are deemed to be unsafe for other reasons.
3a. Airlines that do not qualify for Category 1 or 2, but have been reviewed by the Bank’s air transport specialist and considered good to fly.
3b. Airlines that have 1 of the 4 risk criteria listed below, or some other safety factor that has been raised by the Bank's air transport specialist. Check to see if there are any viable and safer transport alternatives before selecting this airline for mission travel.
3c. Airlines with significantly elevated risk and 2 or more of the 4 risk criteria listed below, or some other safety factor that has been raised by the Bank's air transport specialist. Use only for essen-tial missions and only if no viable and safer transport alternatives are available.
WORLD BANK STAFF AIR TRAVEL
WORLD ROUTES
STRATEGY SUMMIT
The World Routes Strategy Summit was
held on 21-22 September 2014 in Chica-
go, IL. This annual event, held in partner-
ship with Routes and The World Bank,
provides a global meeting place for air-
lines, airports, tourism authorities, and
other government stakeholders. Chicago
was the ideal host city and backdrop for
this year’s event given it was the birth-
place of the International Civil Aviation
Organization 70 years ago. The city con-
tinues to be an important driver of the
American economy and a major hub for
three US carriers (United, Southwest,
and American). This year’s Routes event
attracted over 3,000 people from 90
countries including around 300 airlines,
800 airports, and 200 tourism authorities.
The event provided an opportunity for the
aviation world to come together to delib-
erate the most pertinent issues in the
sector including security, sustainability,
regulatory hurdles, and passenger needs.
Notable speakers this year included Jim
Compton, Vice Chairman and Chief Rev-
enue Officer for United Airlines, Sir Tim
Clark, President and CEO of Emirates
Airlines, Susan Kurland, Assistant Secre-
tary for Aviation and International Affairs
at the Department of Transportation, and
Kevin Knight, Chief Strategy and Plan-
ning Officer, Etihad Airways. A new fea-
ture in this year’s summit was audience
polling, which gave participants the op-
portunity to weigh in on the discussions.
As in previous years, the takeaways from
the sessions were captured in the WBG’s
Post-Conference Report. The report has
served as guidance for the WBG for air
transport projects and activities, by deter-
mining major air transport development
issues and priorities of the industry and
sector.
ACI-WBG ANNUAL AVIATION
SYMPOSIUM
The WBG continues to strengthen its
partnership with Airports Council Interna-
tional (ACI). In February 2015, the two
organizations joined forces to host the
inaugural ACI-WBG Aviation Symposium,
to be held annually in London prior to
ACI’s Annual Finance and Economics
Conference, of which WBG will be a sup-
porting partner going forward.
The WBG delegation was led by Pierre
Guislain, Senior Director of the Transport
and ICT Global Practice and included
strong IFC participation. Guislain’s key-
note speech at the Finance and Econom-
ics Conference focused on the priority of
improving air transport in/to small island
nations, landlocked developing countries
and many parts of Africa (especially West
Africa), including needed policy and regu-
latory reforms and facilitation of private
investments.
The objective of this annual event with
the air transport industry is to take stock
of the main issues, challenges, and op-
portunities the industry is facing. In addi-
tion, the event will aim to highlight a par-
ticular development topic. This year’s
symposium focused on Private-Public
Partnerships (PPPs) in airport develop-
ment. The symposium provided an oppor-
tunity for several developing country air-
ports to present their cases for private
investment.
A post-conference report on Airport De-
velopment and PPPs was prepared by
Shruti Vijayakumar of the World Bank in
cooperation with Professor Paul Demp-
sey. It summarizes discussions that took
place during the ACI-World Bank Aviation
Symposium (25 February 2015) and the
7th ACI Airport Economics & Finance
Conference (26-27 February 2015).
COOPERATION WITH INTERNATIONAL
CIVIL AVIATION ORGANIZATION (ICAO)
ICAO is the specialized air transport agency of
the United Nations. The WBG and ICAO have a
long history of cooperation in the development of
the air transport sector in emerging and develop-
ing countries. The field of cooperation includes
air transport policy, safety and security, facilita-
tion, airport and air traffic control infrastructure,
and the environment.
While the WGB cannot directly finance activities
of ICAO, it is able to include technical staff of the
secretariat on missions and project work. In ad-
dition, the WBG can fund support services by
the Technical Cooperation Bureau (TCB) of
ICAO if these are procured in accordance with
the credit or grant agreement between the WGB
and the client.
The WBG and ICAO have been working closely
together on various air transport project issues.
For example, in the past, ICAO has provided
safety and security audits and supervisory ser-
vices for WBG projects in West and Central Afri-
ca and the South Pacific. ICAO has also assist-
ed in identifying needs and priorities of air
transport projects in a number of other countries.
Finally, the WBG continues to foster relations
with other international partners, such as Re-
gional Development Banks (e.g. Inter-American
Development Bank, African Development Bank
or Asian Development Bank) or Regional Eco-
nomic Communities (e.g. European Union, Afri-
can Union or the Association of Southeast Asian
Nations) to engage in WBG funded air transport
projects.
Several World Bank staff members are licensed
and active pilots, certified by the US FAA and/or
European Aviation Authorities EASA. To remain
current on their pilot qualifications, they regularly
fly and undergo required refresher training. The
most rewarding way of keeping current is to en-
gage in community service by providing free air
transportation to people of all ages whose medical
needs – evaluation, diagnosis, and treatment –
can only be met by health care facilities far from
their homes.
In the US, the not-for-profit organization Angel
Flight provides timely travel to patients who cannot
withstand traveling long distances by automobile,
rail, or bus, or who do not have the financial
means to use suitable alternative transportation.
Oftentimes, transport in smaller, private aircraft
can better accommodate patients whose condi-
tions could worsen if exposed to the re-circulated
air on commercial flights, or who need efficient
point-to-point transport.
In 2015, an Angel Flight mission was carried out
by Charles E. Schlumberger, Lead Air Transport
Specialist and Aldo Giovannitti, Air Transport Spe-
cialist at the World Bank to transport a cancer pa-
tient from her treatment in Atlanta, Georgia,
Clarksville, to her home in the Washington D.C
area.
The WBG’s contribution, in accordance to Staff
Manual 9.10, consisted of one day of administra-
tive leave to carry out this rewarding community
service.
Contact person is Charles E. Schlumberger at
For more information visit:
www.angelflighteast.org.
The global outlook for air transport for
Fiscal Year 2016 is positive. According to
IATA, the demand for air travel is accel-
erating, with an expected growth of 6.9%,
the most optimistic forecast since 2010
and well above the 5.5% trend of the past
20 years. The key driving factor is contin-
uously declining air fares (which on aver-
age is US$375 in 2016 before surcharges
and tax), currently 61% lower than 20
years earlier. Globally, about 1% of world
GDP will be spent on air transport in
2016, totaling almost $750 billion.
Governments around the world will bene-
fit from $118 billion in tax revenues.
Global connectivity will increase signifi-
cantly as the number of unique city-pair
connections is expected to reach more
than 17,000 in 2016, double the air con-
nectivity compared to 20 years ago. This
will continue to support economic devel-
opment around the globe, especially in
countries that are remote and heavily de-
pendent on aviation.
Nevertheless, the outlook for 2016 is var-
ied among the different regions. The
strongest financial performance is ex-
pected in North America, while the
strongest traffic growth is forecasted in
the Middle East (about 12%). Traffic in
Asia-Pacific will continue to grow (about
6.8%), but at a slower pace than in the
past. Latin America is slowly recovering
(about 4.4% growth), while Africa contin-
ues to struggle at growth rates around
1.5%. While the oil price is expected to
remain at low levels, the cost of infra-
structure continues to rise, which is a
challenge for many developing countries.
This also results in a sharp increase of
user cost of airport and air navigation
services.
To address the needs in aviation infra-
structure in client countries, a continued
effort will be made to foster the creation
of Public Private Partnerships (PPP).
Typically, the WGB can support PPPs on
the public side on regulation and policy
matters (IDRB/IDA), and on the private
side with advisory services and financing
(IFC), as well as through the provision of
risk guarantees (MIGA). Recognizing the
importance of air transportation for eco-
nomic development, the WBG will contin-
ue to finance air transport development
projects in select client countries. These
projects will include investments in avia-
tion infrastructure, such as airports and
air traffic control systems, financing of
private air carriers and related entities,
policy advice and capacity building for
regulatory oversight, and strengthening
wider governmental responsibilities, such
as addressing environmental challenges.
Aviation is the strongest growing emitter
of greenhouse gases. This is significant,
despite the fact that aviation is only re-
sponsible for around 2% of all green-
house gas emissions, and the average
traveler consumes less fuel per distance
in an airliner than driving a small car. Ad-
dressing the challenge of Climate
Change is a declared objective of the in-
dustry. The recent outcome of the COP21
conference in Paris makes it more likely
that ICAO will develop emission stand-
ards for new aircraft and agree on global
market-based measures for aviation to
commence in 2020. The WBG is working
with ICAO, ACI and IATA in the develop-
ment and implementation of these
measures. In addition, a renewed focus is
placed on green infrastructure, such as
airports or improved air service provision.
Finally, establishing productive partner-
ships with the air transport industry, as
well as with bilateral and international
partners, is essential for achieving our
set development objectives. The WBG
will continue to work with ICAO, ACI,
IATA and other relevant partners on pro-
jects, including providing policy advice
and technical capacity building. In addi-
tion, the WGB will cooperate with other
multinational and regional development
banks, and bilateral partners to enhance
investments in aviation.
Photography Credits:
Front Cover, Table of Contents, Page 4, 21, 23, and 68 Vincent Tremeau/World Bank - Goma Airport, DRC
Inside Cover, Simone D. McCourtie/World Bank - World Bank Flags, 2009 Annual Meetings Opening Plenary Ses-
sion
All other images belong to WBG or contributors to this report.
