Pacific Aviation Investment Program

US$125 m Adaptable Program Loan Phase 1 Phase 2, 3, 4 Objective: improve operational safety and oversight of international air transport infrastructure

Safety On Par With Sub- Saharan Africa

Dodgy Aircraft

Failed Runways

Inadequate Terminals

Inadequate Fire Safety Equipment

Inadequate Air Traffic Control

No Security

Scale of Phase 1 Component Cost by Project (US$ m) Total Cost (US$ m) KiribatiTongaTuvalu A – Aviation Infrastructure Investments$15.89$22.23$9.44$47.56 B – Aviation Sector Reform$1.45$1.55$0.58$3.58 C – Strengthening Airport Operations and Management Capacity$2.40$0.50$0.20$3.10 D – Project Support$1.78$1.69$0.88$4.35 Contingencies$1.72$2.56$0.92$5.21 Sub-Total$23.24$28.53$12.02$63.79 Taxes$3.49$4.28$1.80$9.57 Total Including Contingencies$26.72$32.81$13.82$73.35

PMU Based in Tonga at Tonga Airports Ltd. for Entire Program

Implementing Entities

Special Features Same equipment procured for all countries Airlines Providing Technical Reviews on Equipment ADS/B To Improve Navigation ‘Green’ Terminal Designs New Fire Tenders Salt Water Enabled All countries AU$ 5 ‘Safety and Security Levy’

Regional Benefits Harmonized Equipment Harmonized Regulations Improved Safety Oversight Improved Revenue for Aviation Safer and More Secure Travel

Tuvalu Aviation Investment Program

Roles World Bank –Ensure that grant funds are spent in accordance with purpose supplied Government –To implement project in accordance with grant agreements

Aviation Supports Travel for work Education Health Tourism Family Connections

Implications of Flight Disruptions on Economy

Investments Resurface Runway ($4.5 m) New Terminal / Control Tower ($2 m) Fire Tender Vehicle ($0.8 m) ADS-B Navigation ($0.4 m) Air Traffic Control ($0.25 m) PasNet Communications Network ($0.2 m)

… Investments Automatic Weather Station ($140,000) Security Screening Equipment ($120,000) Airfield Maintenance Equipment ($75,000) Laboratory/Testing Equipment ($50,000) Fire Crew Equipment ($30,000)

Other Design and Supervision ($710k) Support CAA/Line Ministries ($200k) Study Into Funafuti Operations ($200k) Safety and Security Oversight ($150k) Incremental Operating Costs ($150k) Training ($125k) Emergency Runway Repairs ($50k)

… Other Baseline Audit ($50k) Obstacle Limitation Survey ($40k)

Procurement Methods International Competitive Bidding –Terminals/Runways Shopping –Small Civil Works –Goods Force Account –Emergency Runway Repairs

Prior Review Thresholds

Procurement Packaging

Tentative Tuvalu Schedule

Project Support Team Assist Implementing Agency Manage Contract Implementation Report on Progress Manage Designated Account Expenditures

Flow of Funds

Reporting

… Reporting

AU$ 5 Passenger Safety and Security Levy

Next Steps Formally establish National Steering Committee Nominate member to Program Steering Committee Establish Project Support Team –PST Manager –Accountant –Assistant

Upcoming Early April –Complete recruitment of Design and Supervision Consultant –Signe contract Late April –Finance Manager to visit Tuvalu to train on Financial Management May –Launch workshop in Fiji

Questions