AIRTRANSPORTANNUALREPORT2012 - Archive

AIRTRANSPORTANNUALREPORT2012 

THEWORLDBANKGROUP 

IBRD,IDA,IFCANDMIGA 

1

Coverpage:TheWorldBankfinancesavarietyofprojectsandstudiesacrossitsfiveregionsfocusingoninstuonal 

strengthening,capacitybuildingandinfrastructure. 

CoverPagePicture:ATR42flyingoverSouthPacificIslandswheretheWBGhasrecentlyapprovedaUS$125Miograntfor 

improvingAviaonSafetyandSecurity. OFV19FEB12

AIRTRANSPORTANNUALREPORT2012

ABBREVIATIONS 

ADSB/C AutomacDependentSurveillance–Broadcast/–Contract 

AGL AeronaucalGroundLights 

ATC AirTracControl 

ATM AirTracManagement 

BOT BuildOperateTransfer 

BOO BuildOwnOperate 

BOOT BuildOwnOperateTransfer 

BTO BuildTransferOperate 

CAA CivilAviaonAuthority 

CASDR IFCAdvisoryServicesDepartment(WBG) 

CES CharlesE.Schlumberger,LeadAirTransportSpecialist(WBG) 

CINTS IFCInfrastructureDepartment,TransportDivision(WBG) 

COCESNA CentralAmericanAirTracControlOrganizaon 

DME DistanceMeasuringEquipment 

GNSS GlobalNavigaonSatelliteSystem 

EASA EuropeanAviaonSafetyAgency(agencyoftheEuropeanUnion) 

EC EuropeanCommission 

ESW EconomicSectorWork 

FAA FederalAviaonAdministraonoftheUnitedStatesofAmerica 

IATA InternaonalAirTransportAssociaon 

IASA InternaonalAviaonSafetyAssessment(FAA) 

IBRD InternaonalBankforReconstruconandDevelopment(WBG) 

ICAO InternaonalCivilAviaonOrganizaon(UNAgency) 

IDA InternaonalDevelopmentAssociaon(WBG) 

IFC InternaonalFinanceCorporaon(WBG) 

ILS InstrumentLandingSystem 

IOSA IATAOperaonalSafetyAudit 

MIGA MullateralInvestmentGuaranteeAgency(WBG) 

PPPA PublicPrivatePartnershipAgreement 

PPP PublicPrivatePartnership 

SARPS StandardsandRecommendedPracces 

TA TechnicalAssistance 

TWITR TransportUnitoftheEnergyTransportWaterDepartment(WBG) 

USDOT USDepartmentofTransportaon 

USOAP UniversalSafetyandSecurityOversightAuditsProgram(ICAO) 

VOR VHFOmnidireconalRadioRange 

WBG WorldBankGroup 

WRDSS WorldRoutesDevelopmentStrategySummit

TABLEOFCONTENTS 

ExecuveSummary…………………………………………………………………………………………….. 1 

Acknowledgements…………………………………………………………………………………………….. 2 

Foreword……………………………………………………………………………………………………………... 3 

WorldBankGroupAirTransportPorolio………………………………………………………….. 4 

IBRDandIDA……………………………………………………………………………………………………... 5 

IBRDandIDAProjectOverview………………………………………………………………... 5 

IBRDandIDAProjectHighlights……………………………………………………………….. 12 

Africa…………………………………………………………………………………………………. 12 

MiddleEastandNorthAfrica…………………………………………………………….. 17 

LanAmericaandCaribbean………………………………………………………………. 18 

EastAsiaandPacific……………………………………………………………………………. 20 

SouthAsiaRegion……………………………………………………………………………….. 22 

EuropeandCentralAsia…………………………………………………………………….. 23 

IFC……………………………………………………………………………………………………………………….. 24 

IFCProjectOverview…………………………………………………………………………………. 24 

IFCProjectHighlights……………………………………………………………………………….. 27 

IFCAdvisoryServices(CASDR)…………………………………………………………………… 31 

MIGA……………………………………………………………………………………………………………………. 35 

ExternalRelaons……………………………………………………………………………………………….. 37 

InternalDisseminaon…………………………………………………………………………………………. 40 

ResearchandInternalServices……………………………………………………………………………. 41 

OutlookforFiscalYear2013………………………………………………………………………………… 43

EXECUTIVESUMMARY 

TheWorldBankGroup(WBG)fiscalyear2012 

AirTransportPorolioincludesnearly30pro 

jects or project components in all six World 

Bank regions, as well as 20 acve IFC invest 

mentsandseveraladvisorymandates. 

FY12 has been a successful year for air 

transportdespiteasmalldeclineintheacve 

air transport porolio volume of the WBG of 

4.5% from US$1,304.8 to $US1,245.6 due to 

thecompleonofseveralprojects.Aparcular 

highlightofthisyearhasbeentheapprovalof 

a US$125 million regional aviaon project in 

theSouthPacific. 

ThemajorityofprojectsintheIDAandIBRDAir 

Transport Porolio are being implemented in 

the Africa Region, with new and addional 

commitmentsinTanzaniaandSierraLeoneap 

provedthisyear.Thefocusoftheseprojectsis 

parcularly on infrastructure rehabilitaon, in 

stuonalstrengthening,andcapacitybuilding. 

Most new acvity has been recorded in the 

EastAsiaandPacificRegionwiththelaunchof 

thePacificAviaonInvestmentProgram(PAIP). 

TheimplementaonofIBRDandIDAfinanced 

projects in Lan America and the Caribbean 

and the Middle East and North Africa 

progressedsasfactorilyinFY12. 

 

The IFC Air Transport Porolio decreased 

slightlyinFY12,by7.7%percentinacvepro 

jectcommitmentstoUS$632.9million.IFCAd 

visoryexpandeditsporolioserviceshowever, 

having iniated several airport mandates dur 

ingFY11withfollowupinFY12. 

MIGA has been involved in air transport with 

theissuanceofguaranteesfortwoairportpro 

jectsinEcuadorandPeru. 

Safety and Security and Environmental Chal 

lengesremainthecorefocusofExternalRela 

onswith the Internaonal Civil Aviaon Or 

ganizaon(ICAO).TheWBG,ICAO,andRoutes 

(represenng the airline industry) also held 

their 7 th Global Aviaon Strategy Summit in 

Berlin,GermanyinOctober2011. 

In line with the objecve of its external rela 

ons,thefocusinternallyhasalsobeonenvi 

ronmentalissues.TheAirTransportUnitthere 

foreorganizedaBrownBagLunchthisyearon 

thecontroversialinclusionofaviaonintothe 

EUEmissionTradingScheme(ETS)witharep 

resentaveoftheEUinvitedasapresenter. 

Finally,industryrelevantResearchbytheWBG 

thisyearwasfocusedonlowcostairlinesana 

lyzing opportunies and impact of business 

modelindevelopingcountries.Thisresearchis 

plannedtobecompletedinFY13. 

1

Thisreportbenefitedfromtheknowledgeandexperseofairtransportstaacross 

theWorldBankGroup. 

We especially wish to acknowledge the contribuons of Chris Benne, Fernando 

Blanco,SylviaMicheleDiez,IbouDiouf,AmerZafarDurrani,FabioGalli,HarshGupta, 

LayneHill,NegedeLewi,JusnTaylorLocke,YoansElisikiaMchovu,GylfiePalsson, 

Noroarisoa Rabefaniraka, Jusn Runji, Kavitah Sethi, Evelina Stanoeva and Adam 

StoneDiehl. 

WewouldalsoliketothankJoseLuisIrigoyen,DirectorofTransport,Water,andIn 

formaon and Communicaons Technology, and Marc Juhel, Sector Manager, 

Transport, for their connued guidance and support, and Nora Weisskopf for her 

assistancewiththeresearchandcompilaonofthisreport. 

 

AKNOWLEDGEMENTS 

2

FOREWORD 

Airtransportaonaroundtheglobeconnuedtore 

coverinfiscalyear2012,whichresultedintheairline 

sectorexpecngacollecveprofitfor2012.However, 

profitsfor2012areexpectedtobelessthanhalfthe 

US$8.4 billion that the industry earned in 2011. 

Growth,nevertheless,variesgreatlybetweenregions. 

Negaveorflatgrowth,resulnginlossesforairlines, 

hasbeenexperiencedinEurope,whileNorthAmeri 

canshowssignsofrecovery.Inemergingmarkets,the 

Middle East and Lan America connue their solid 

expansion,followedbyagooddevelopmentinChina, 

andoverallAsiaPacific.Africarecoveredfromitsde 

cline in 2009, and shows modest but sustained 

growth.Themainchallengesoftheindustryconnue 

to be the high oil price and a slow global recovery. 

Airlinesarefocusingonreducingcostsandincreasing 

eciency. Air cargo experienced connued declining 

freight volumes, suggesng a slowdown in global 

tradepairedwithsomepossiblemodalshiintrans 

portaonservices. 

Theoutlookfortheindustry,ontheotherhand,con 

nues to remain posive for the medium and long 

term. The air transport industry collecvely sees 

strong connued growth over the next two decades 

resulng in a doubling of passenger trac by 2030. 

Worldpassengertracisforecasttogrowbyabout 

4.5percentinthatperiod,whichiswellovertheex 

pectedgrowthinworldGDPofanaverage3percent. 

Thestrongestdevelopmentisforecasttooccurinthe 

emerging markets of China and India, where 

passengertracisexpectedtogrowby78percent 

peryear. 

Despitethe posiveoutlook,growingconcernabout 

thesustainabledevelopmentoftheindustryisbeing 

voiced due to its dependence on aordable fuel 

costs, its challenge to reduce greenhouse gas emis 

sions,anditsvulnerabilitytorecessionsthathamper 

global trade. Behind this uncertainty, many large in 

frastructureinvestmentsinairportsorairtraccon 

trol systems must be launched early to meet an un 

certain future demand. If necessary investments are 

notmade,futureeconomicdevelopmentmaybeim 

pacted. 

The World Bank Group (WBG) will connue to sup 

portitsclientcountriesindevelopingasustainableair 

transportsector.Thedevelopmentfocuswillremain 

on the provision of safe, secure, and aordable air 

transport services, which secure global sustainability 

oftheindustrythroughgreengrowthofaviaon.The 

instruments of the WBG to support this growth are 

investmentprojectsinpublicorprivateairtransport 

projects, investments guarantees, policy advice to 

governments, advisory services and technical assis 

tance,andresearchprojects. 

 

Dr.CharlesE.Schlumberger 

LeadAirTransportSpecialist 

3

WORLDBANKAIRTRANSPORTPORTFOLIO 

 

AirTransportPorolio 

TheWBGFY12airtransportporolioiscomposedofvariouslendingandnonlending(TechnicalassistanceandEconomicSector 

Work)projectsinthesixregionsasdefinedbytheWorldBank(IDAandIBRD).Inaddion,theIFChasacurrentporolioofpro 

posedandacvelendingorinvestmentfinancingthroughouttheaviaonsector. 

AcveProjects IBRD IDA IFC TOTAL 

(inmillionsUSD) FY12 FY11 change FY12 FY11 change FY12 FY11 change FY12 FY11 change 

WBGroupTotal 

AcvePorolio 

WBGroupAcve 

PorolioTransport 

%ofTotalAcve 

Porolio 

AirTransportAcve 

Projects 

%ofTotalAcve 

Porolio 

%ofTotalTransport 

Porolio 

105,134 102,305 2.8% 68,573 69,450 1.3% 45,275 42,777 5.8% 218,981 214,532 2.1% 

26,755 26,005 2.9% 11,718 13,156 10.9% 2690 2,695 0.2% 41,163 41,856 1.7% 

25.4% 25.4% 0.0% 17.09% 18.9% 1.9% 5.9% 6.3% 0.4% 18.8% 19.5% 0.7% 

277.2 285.0 2.8% 335.5 334.2 0.4% 632.9 685.5 7.7% 1,245.6 1,304.8 4.5% 

0.3% 0.3% 0.5% 0.5% 1.4% 1.6% 0.2% 0.57% 0.6% 

1.0% 1.1% 2.9% 2.5% 23.5% 25.4% 1.9% 3.03% 3.1% 

TheoverviewabovesummarizestheWBG’smostimportantprojectsWBG.Severalsmallerscaleprojects,projectcomponentsor 

projectsinearlystagesofdevelopmentarenotincluded. 

ExcludingtheMullateralInvestmentGuaranteeAgency(MIGA) 

4

IBRD&IDAPROJECTSOVERVIEW 

 

IBRDandIDAcontributetoalmost30projectsworldwidefocusingonregulatoryreform,capacitybuildingandsomeinfrastructure 

investments. 

5

Country 

ProjectID 

Code 

ProjectFullName 

BurkinaFaso,Ca 

meroon,Guinea, 

Mali 

P083751 

WestandCentralAfrica 

AirTransportSafety& 

SecurityProject 

Congo,Democrac 

Republicof 

P092537 

DRCMulmodal 

Transport 

Congo,Democrac 

Republicof 

 

P129594 

DRCMulModal 

TransportAddionalFi 

nancing 

BurkinaFaso P114911 DonsinAirport 

BurkinaFaso P120960 

BurkinaFasoDonsin 

TransportInfrastructure 

Project 

RepublicofCape 

Verde 

P127411 

7 th PovertyReducon 

SupportCredit 

Descripon 

(AviaonComponent) 

Instuoncapacitybuilding, 

safetyandsecurityImprove 

mentsatmaininternaonal 

airport 

Transportconnecvityim 

provementandnaonaleco 

nomicintegraon 

Transportconnecvityim 

provementandnaonaleco 

nomicintegraon 

Feasibilitystudyofanewair 

port 

TechnicalAssistancesfornew 

OuagadougouAirport 

Operaonal,financialandca 

pacityimprovementsofCape 

VerdeAirlines 

WGBCommitment(MillionUS$) 

Project 

Total 

AviaonCom 

ponent 

ProductLine 

Statusas 

ofend 

June2012 

35.76 31.6 

IDAgrant,IDA 

credit 

Acve 

255 25.5 IDAgrant Acve 

180 9 IDAGrant Pipeline 

0.307 0.307 

TA(Non 

lending) 

Acve 

65 6.5 

IDASpecific 

Investment 

Loan 

Pipeline 

12 1.2 IDAcredit Acve 

AFRICA 

6

Country ProjectIDCode 

ProjectFull 

Name 

Kenya P082615 NorthernCorri 

dorTransport 

Improvement 

Project 

Kenya P106200 NorthernCorri 

dorTransport 

Improvement 

Project 

(AddionalFi 

nancing) 

Kenya P124109 KenyaTransport 

SectorSupport 

Project 

Madagascar P082806 TransportInfra 

structureInvest 

mentProject 

Mauritania P089672 

TransportSector 

Inst.Dev.And 

TechnicalAssis 

tanceProject 

Descripon(Aviaon 

Component) 

Enhanceaviaonsafety 

andsecurity,Inst. 

StrengtheningandCapaci 

tyBuilding 

CargoHandlingatNairobi 

Airport,KenyaAirways 

Privazaon 

Inst.Strengtheningand 

CapacityBuilding 

AirportSafetyandSecurity 

Improvements,TAtothe 

EstablishmentofPPPsin 

theAirportSector 

AirportMasterPlan,ins 

tuoncapacityplan 

AFRICA 

WBGCommitment(MillionUS$) 

Project 

Total 

AviaonCompo 

nent 

Product 

Line 

Statusas 

ofend 

June2012 

207 41.5 IDACredit Acve 


300 27 IDAcredit Acve 

150 8.3 IDAcredit Closed 

4.5 0.65 IDAcredit Closed 

7

Country ProjectIDCode ProjectFullName 

Nigeria P100785 



SecurityProject(Phase 

II) 

SierraLeone P078389 

InfrastructureDevelop 

mentProject 

SierraLeone P110968 

InfrastructureDevelop 

mentProject(Addional 

financing) 

Tanzania P055120 

TransportSectorSupport 

Project 


TransportSectorSupport 

Project(Addionalfi 

nancing) 


SecondCentralTransport 

Corridor 

Benin,Maurita 

nia,Senegal 

P108583 



SecurityProject(PhaseII 

B) 

Descripon 



ProjectTotal 

AviaonCom 

ponent 

ProductLine 

Statusas 

ofend 

June2011 

Inst.Strengthening,Safetyand 

SecurityImprovementsat 

MainAirports 

46.65 46.65 IDAcredit Acve 

InfrastructureRehabilitaonat 

FreetownAirport 


InfrastructureRehabilitaonat 

FreetownAirport 

11 2.75 

IDAcredit,IDA 

grant 

Acve 

Rehabilitaonandextensionof 

regionalairports 


Rehabilitaonandextensionof 

thetaxiwaysandapronatthe 

Zanzibarairport 


ZanzibarAirportimprovement 190 17.1 IDAcredit Acve 

AviaonSafetyandSecurity 

Improvements 

16.57 16.57 

IDAgrant,IDA 

credit 

Acve 

AFRICA 

8

MIDDLEEASTANDNORTHAFRICA&LATINAMERICAANDCARIBBEAN 


Descripon 



ProjectTotal 

AviaonCom 

ponent 

Product 

Line 

Statusasof 

endJune2011 

Egypt P101201 

CairoAirportDevelop 

mentProjectTB2 

Rehabilitaonandexpansionof 

TerminalBuilding2 

280 280 

IBRD 

loan 

Acve 

Yemen P088435 

PortCiesDevelopment 

IIProject 

Rehabilitaon/extensionof 

Mukallaairport 

35 6 

IDA 

Grant 

Acve 


Descripon 



ProjectTotal 

AviaonCom 

ponent 

Product 

Line 

Statusasof 

endJune 

2011 

Bolivia P122007 

NaonalRoadsandAir 

portInfrastructurePro 

ject 

Regionalintegraonstrength 

eningandairportinfrastruc 

turedevelopment 

109.5 6.0 IDAcredit Acve 

Grenada, 

St.Vincent& 

Grenadines 

P117871 

RegionalDisasterVulner 

abilityReduconAPL1 

Improvementofemergency 

responsecapability 

20.92 5 IDAloan Acve 

Hai P120895 

InfrastructureandInstu 

onsEmergencyRecov 

eryProject 

RepairofPortauPrinceair 

port’sdepartureterminal 

65 3 IDAgrant Acve 

9


Tonga P096931 

TransportSectorConsoli 

daonProject 

Tonga P128939 

PacificAviaonInvest 

mentProgram(Phase1) 

Kiriba P128938 



Tuvalu P128940 

 



Samoa,Vanuatu 

andSolomon 

Islands 

 

P143408, 

P133454, 

P143906 

 


mentProgram(Phase2 

and3) 

China P123729 

JiangxiShangraoSan 

qingshanAirportProject 

Descripon(AviaonCompo 

nent) 


ProjectTotal 

AviaonCom 

ponent 

ProductLine 

Statusas 

ofend 

June2011 

TechnicalAssistancetoCAA 5.4 2.4 IDAgrant Acve 

InfrastructureInvestment,Sec 

torReformandTraining, 

StrengtheningAirportOpera 

onsandManagementCapacity 

27.21 27.21 IDAgrant Acve 















TBD TBD 

 

IDAgrant/loan 

Pipeline 

Developmentandoperaonof 

theShangraoSanqingshan 

Airport 

50 50 

IBRDloan 

Pipeline 

EASTASIAPACIFIC 

10

SOUTHASIAREGION,EUROPEANDCENTRALASIA&GLOBAL 

Country 

ProjectID 

Code 

ProjectFullName 

Descripon(AviaonCom 

ponent) 


ProjectTotal 

AviaonCompo 

nent 

Product 

Line 

Statusas 

ofend 

June2011 

Pakistan P101684 

TradeandTransport 

FacilitaonII 

Restructuringandmoderniza 

on 

25 2 IDAcredit Acve 


Descripon(AviaonCompo 

nent) 


Project 

Total 

AviaonCompo 

nent 

Product 

Line 

Statusas 

ofend 

June2011 

Tajikistan P126042 

ProgrammacDevelop 

mentPolicyGrant6 

ModernizingAviaonServices 20 4.8 IDAgrant Pipeline 

 

Country 

Global P132939 

ProjectIDCode ProjectFullName 

LowCostCarriers:Oppor 

tuniesandImpactinDe 

velopingCountries 

Descripon 



ProjectTotal 

AviaonCompo 

nent 

Product 

Line 

Statusas 

ofend 

June2012 

LowCostAirlinesAnalysis 0.02 0.02 ESW Acve 

11

AFRICA 

WestandCentralAfricaSafetyProject(P108583,P083751,P100785) 

PROJECTHIGHLIGHTS 

In FY12 the implementaon of the Air 

TransportSafetyandSecurityProjectinWest 

and Central Africa progressed successfully. 

The project’s objecve is to (i) improve the 

Civil Aviaon Authority's (CAA) compliance 

with Internaonal Civil Aviaon Organizaon 

(ICAO) safety standards; (ii) increase CAA's 

compliancewithICAO'ssecuritystandard;and 

(iii) enhance the main internaonal airports' 

compliancewithICAO'ssecuritystandards. 

Theprogramfocusesonavarietyofacvies, 

from capacity building to procurement of 

safety and security equipment. Due to the 

smallsizeoftheairtransportindustryandthe 

limited resources in each country, regional 

cooperaon is key. The establishment of Re 

gional Aviaon Safety Oversight Agencies 

(RASOAs) has therefore been an important 

enablerforairportstoreachcompliance.The 

project team is also monitoring progress un 

derICAO’sCooperaveDevelopmentofOper 

aonal Safety and Connued Airworthiness 

Program(COSCAP)withsubregionalorganiza 

ons (the UEMOA countries, the Banjul Ac 

cordcountries,thatis,NonUEMOAcountries 

withinECOWAS,andtheCEMACcountries). 

Withtheprogram’sstructurebeingahorizon 

tal Adaptable Program Loan (APL), any 

WesternorCentralAfricancountrynotinclud 

ed in the inial phase is able to join during 

subsequentphases,underthesameeligibility 

criteria.PhaseIincludedBurkinaFaso,Came 

roon,GuineaandMali,withanoverallalloca 

onofUS$35.67million.PhaseIIAofthePro 

gram was iniated in FY08 and included Ni 

geria’s parcipaon in the program for an 

amount of US$46.65 million. In FY09 and 

FY10, Benin and Senegal joined the Program 

under Phase IIB, and were allocated a total 

amountofUS$16.57million. 

Throughsustainedtrainingoftechnicalstain 

air transport safety and security issues, ins 

tuonal reforms and regulatory framework 

updates, Phase I countries have already 

achievedorevensurpassedtheproject'smost 

significant monitoring indicators (e.g. compli 

ancewithICAOsafetyandsecuritystandards; 

numberoftechnicalstatrained). 

Even Guinea’s air transport sector, despite 

polical turmoil, has improved significantly: 

theycompletedastudytocreateanautono 

mous CAA and are implemenng a plan to 

complete their instuonal reform.The se 

condphaseoftheproject,APL2A,helpedNi 

geriadramacallyimproveitssafetystandard. 

12

PROJECT HIGHLIGHTS 

The country has also made noceable progress 

in their compliance with ICAO safety and secu-‐ 

rity standards through an update of their regu-‐ 

latory framework, and training of their tech-‐ 

nical staff. The APL1’s closing date has just 

been extended from end December 2011 to 

end June, 2013, to allow the full compleon of 

on-going and a few scheduled acvies, to en-‐ 

sure that the project’s implementaon is fully 

sasfactory. 

Nigeria, as the only country in the region, has 

received a US Federal Aviaon Administraon 

(FAA) Internaonal Aviaon Safety Assess-ments 

(IASA) Category 1 rang in August 2010. 

This means that the Nigerian Civil Aviaon Au-thority, 

is capable of enforcing internaonal air 

safety standards set by ICAO for aircras oper-aon 

and maintenance, and that the country 

has the laws and regulaons necessary to 

oversee air carriers in accordance with mini-mum 

internaonal standards. As a result, Ni-geria’s 

registered carriers, such as Arik Air, can 

now offer direct flights to the USA for the first 

me in nearly 30 years. 

Despite improvements in safety and security 

oversight of the aviaon sector however, cri-‐ 

cal reforms are sll needed regarding the over-all 

instuonal arrangements and governance 

in the sector. An in-depth study on instuon-al 

reform is in its last version providing some 

insight into the development of a beer over-all 

strategy and financial management. A 

roadmap and a discussion of the study’s rec-ommendaons 

will be presented at a work-shop 

organized by the Ministry of Aviaon 

next year. The recerficaon process of Nigeri-an 

air carriers has been sasfactorily estab-lished, 

and contributed to air transport safety 

improvement by strengthening NCAA’s tech-nical 

staff capacity. Some airlines sll remain 

to be re-cerfied in line with the new revised 

guidelines, include Dana Air that has been in-volved 

in a fatal accident last year in Lagos. 

Despite slower comparave progress, Benin 

has also shown some significant achievements 

in the last year. Compliance with ICAO safety 

standards has increased from 19.2% 2007 to 

42.9% in 2012. Senegal’s audit is sll outstand-ing 

but the internal audit carried out by the 

CAA concluded that compliance with ICAO's 

standards is 85% and 89% for safety and secu-rity 

respecvely. 

Contact Person is Noroarisoa Rabefaniraka at 

nrabefaniraka@worldbank.org 

Tanzania Transport Sector Support Project (P055120, P126206) 

In May 2010, the Bank approved a credit of 

US$270 million for the Transport Sector Sup-port 

Project (TSSP) in Tanzania. In support of 

the Transport Sector Investment Program 

(TSIP), the project’s goal is the rehabilitaon 

and preparaon of designs for part of the 

paved naonal road network, and the rehabili-taon 

and/or upgrading of regional airports. 

The three works contracts, namely; (i) the 

paving and rehabilitaon of the runway at Kig-oma 

airport (ii) the rehabilitaon of the main 

runway at Tabora airport, as well as (iii) the 

extension, rehabilitaon and paving of the run-way 

and the replacement of the apron, termi-nal 

and car parking at Bukoba airport, were 

signed in FY12. 

The project received addional funding (AF) of 

US$59 million on 30 of June 2011. This prompt-ed 

the revision of the project development ob-jecves 

and the expansion of the scope of the 

aviaon component. As menoned above the 

AF will finance the works and the associated 

supervision services to rehabilitate, expand 

and/or extend the exisng taxiways and apron 

of Zanzibar Airport. The Revoluonary Govern-ment 

of Zanzibar (GoZ) has also secured a loan 

from the China Exim Bank to finance a new ter-minal 

building. 

Contact person is Negede Lewi at 

nlewi@worldbank.org 

13

TanzaniaSecondCentralTransportCorridorProject(P103633) 

ApprovedforacreditofUS$190millionon 

May27,2008,theSecondCentralTransport 

CorridorProject(CTCP2)inTanzaniaaimsto 

supportTanzania'seconomicgrowthby 

providingenhancedtransportfaciliesthat 

arereliableandcosteecve,inlinewiththe 

NaonalTransportPolicyandStrategy.This 

includestheestablishmentoftheBusRapid 

Transit(BRT)systeminDaresSalaamandthe 

rehabilitaonandextensionofZanzibarair 

portrunway. 

The Zanzibar airport component was imple 

mented successfully between April 2009 and 

July2010andwascompletedociallyonAu 

gust3,2010.Theairport’srunwaywasrehabil 

itatedandextendedfrom2462metersby560 

meters to 3022 meters long. Other works in 

cludedrunwaymarking,theconstruconofa 

perimeteraccessroad,repairandprovisionof 

newaeronaucalgroundlights(AGL),andpro 

visionofanewfilterdrainagesystemoneach 

sideoftherunwayforthefulllength. 

The project also financed the detailed design 

for rehabilitaon and extension of Zanzibar 

airport taxiways and apron. The subsequent 

worksarebeingfinancedundertheaddional 

financingcreditofIDA’sTransportSectorSup 

port project (TSSP) with an allocaon of 

US$57.23 million for works and supervision. 

The project improved safety and customer 

sasfaconandhasenabledanincreaseinthe 

number of commercial regular flights to 

Zanzibar. 

Contact person is Yonas Mchomvu at 

ymchomvu@worldbank.org 


SierreLeone–InfrastructureDevelopmentProject(P078389,P110968) 

InsupportofSierraLeone’sNaonalTransport 

Strategy and Investment Plan (20032007) 

(SLNTP), the World Bank approved a US$44 

million credit for the Infrastructure Develop 

ment Project. The project’s objecve is to re 

habilitateselectedpriorityroads,port,andair 

port facilies in Sierra Leone, while also sup 

porngregulatoryandinstuonalreformsto 

ensureeecvemanagementofthecountry's 

road,port,andairportsectors. 

Thefocusofitsaviaoncomponentisonthe 

rehabilitaon of Freetown Internaonal Air 

portandcapacitybuildingforitsmanagement. 

Thisincludesamongotherthingstherehabili 

taon and strengthening of the runway, with 

upgrading of turning loops and taxiway en 

trances to safely accommodate modern air 

craworks.Through the project the govern 

menthasprocuredandinstalledpowergener 

atorsandindependentwatersupplyaswellas 

an Instrument Landing System (ILS) and Air/ 

GroundCommunicaonsSystem. 

The navigaon installaon and tower equip 

mentareintheprocessofbeinginstalledand 

operaonal training for airport employees is 

ongoing. Over the course of the year there 

have been some delays with regards to this 

installaon; compleon is now scheduled for 

January2013. 

TWITR provided technical advice throughout 

the preparaon of design and bidding docu 

mentsfortheairportinfrastructurerehabilita 

on.Civilworksareunderwayandgoodsare 

nowbeingprocured. 

Contact person is Kavita Sethi at 

ksethi@worldbank.org 

14


 

Kenya–NorthernCorridorTransportImprovementProjectand 

TransportSectorSupportProject(P082615,P106200,P124109) 

In 2003, the World Bank approved the first 

majorAfricanairtransportinfrastructureand 

regulatorycapacitybuildingprojectinKenya. 

Thefocusofthisongoingproject,isto(i)sup 

port the Kenya Airports Authority (KAA) in 

airport infrastructure improvements and en 

hancing security at Kenyan airports, and (ii) 

support theKenya Civil Aviaon Authority 

(KCAA) in regulatory capacity building and 

specific investments in navigaon aids and 

trainingequipment.Duetothesuccessofthe 

projectandahighgrowthinpassengerflows 

resulngfromasuddeneconomicupturn,an 

addional credit of US$253 was approved in 

April2009.Theaddionalfinancingsupports 

the building of a new passenger terminal at 

KenyaaInternaonalAirport(JKIA). 

In FY12 works have progressed successfully. 

At the request of its stakeholders, the new 

terminal at JKIA is being converted into an 

internaonal terminal. The apron has been 

expandedandthetaxiwaysextendedincreas 

ingtheaircraparkingspacecapacityby50%. 

TheremodelingandrenovaonofUnits1,2 

and 3 of the airport are experiencing some 

delays.Duetotheconnuousimprovements 

JKIAhasobtainedsecurityclearancefromthe 

US Transport Security Administraon and is 

onagoodtracktoachieveFAAIASACategory 

1Cerficaon.ThegovernmentofKenyahas 

alsoendorsedtherestructuringofKCAAand 

bothKAAandKCAAhavebeengivenfinancial 

autonomyandnowretaintherevenuesgen 

erated.Aspartofthisprocess,KCAAhasbeen 

raisingthepaypackagesforkeyflightsafety 

operaons sta, crical for carrying out its 

oversightfuncon.FurthermoreKAAhastak 

en over the responsibility of screening pas 

sengersandbaggagefromtheKenyanpolice. 

Aconsultantfortheseparaonoftheservice 

provision from its regulatory funcon has 

beenselectedtoassistKCAA. 

ExpansionofKisumuairporthasbeencom 

pletedandisfullyoperaonal.TheGovern 

mentofKenya(GoK)hasawardedacontract 

forfurtherexpansionoftheairport,which 

involvestheconstruconofanapronfora 

cargohandlingfacility;theconstruconof 

taxiwaysandexpansionofthenewterminal 

building.Trachasincreasedfrom70,000 

passengersin2005toabout300,000in2010. 

Withtheopeningupofandgrowthprospects 

inWesternKenya,afurtherincreaseistobe 

expected.TheGoKwillalsofocusonthere 

habilitaonoftherunwayatMombasaInter 

naonalAirportinFY13. 

Contact person is Josphat O. Sasia at 

jsasia@worldbank.org 

15

Democrac Republic of Congo MulModal Transport Project 

(P092537,P129594) 

In2010,theBankapprovedanIDAgrantof 

US$255millionforthefirsttransportproject 

inDemocracRepublicofCongosincethe 

endofthecivilwar.TheobjecveoftheMul 

modalTransportProject's(MTP)isto(i)to 

improvetransportconnecvityinthe 

DemocraccRepublicofCongo(DRC)soasto 

supportnaonaleconomicintegraon,(ii)to 

restoreSociétéNaonaledesCheminsdeFer 

duCongo’s(NaonalRailwayCompanyof 

DRCSNCC)financialandoperaonalviabil 

ity,and(iii)toimplementasectorwidegov 

ernanceplanandstrengthentransportstate 

ownedenterprises(SOEs)operaonalperfor 

mances. 

US$10 million of the grant are dedicated to 

theaviaonsector.Thefundsfinance(i)the 

procurement and installaon of ADSB sur 

veillanceequipmentbytheNaonalAirways 

Management Agency (RVA), (ii) a new 

categoryIIILS/VOR/DMEsystemforthecapi 

tal’s internaonal airport Kinshasa/N’Djili 

(FIH),(iii)twostudiesonthedevelopmentof 

airportsinthecountry(oneonfreightdevel 

opment at FIH, and one on secondary air 

ports),and(iv)trainingforRVApersonnelin 

airtraccontrol,andairportrescueandfire 

fighngservices. 

Based on the Bank’s aviaon component in 

DRCwhichincludesaSOEreformcomponent, 

the African Development Bank (ADB) pre 

pared an airport/air transport project of 

US$180 million, which provides complemen 

tary investments to the RVA modernizaon 

plan. 

Asignificantreduconinaverageannual 

numberofAirTracSystem(ATS)incidents 

relatedtofailedcommunicaonshasbeen 

achieved. 

 

Contact person is Jean Charles Crochet at 

jcrochet@worldbank.org 


16


The air transport sector is highly strategic for 

Egypt’s economic development, generang sig 

nificant employment and supporng its tourism 

sector. Tourism accounts for 3.5% of Egypt’s 

GDP,with12.4millionoftouristsandatotalrev 

enue of US$10.5 billion in FY09. Around 80% of 

touristtraccomesthroughEgypt’sairportsand 

tourismcountsforhalfofthepassengerinterna 

onaltracatCairoInternaonalAirport(CAI). 

Air transport is progressively being liberalized. 

Twenty years ago, the Government of Egypt 

(GoE) realized the growing importance of air 

transport as a driver of growth in its own right. 

TheGoE’sobjecvethereforebecametoensure 

thattheliberalizaonoftheindustrywouldcon 

tribute posively to the development of the 

Egypanaviaonsector.Consequently,Egypthas 

embarked on the gradual liberalizaon of inter 

naonalairservicesonabilateralbasiswithsev 

eralcountriesintheMiddleEast,Africa,andEu 

rope.It has also significantly improved airport 

servicesthrougharangeofcapacityinvestments 

andthestrengtheningofairportoperaons. 

However,Egyptneedstoconnueexpandingair 

port infrastructure and improve airport services 

to meet the growing demand, especially at CAI 

the main gate to Egypt. It also has to connue 

strengtheningairtraccontrol(ATC)infrastruc 

tureandairtracmanagement(ATM). 

 

MIDDLEEASTANDNORTHAFRICA 

EgyptCairoAirportDevelopmentProjectTB2(P101201) 

17 

The Egypt Cairo Airport Development Project, 

approved in 2010, is supporng the Egypan 

Government to (i) enhance the quality of air 

transport services in Egypt by increasing trac 

handlingcapaciesatCAI,and(ii)strengthening 

Egypt’s air transport in the context ofinterna 

onal compeon. The principal target benefi 

ciaries include: (i) business and tourism passen 

gers, who will benefit from beer airport infra 

structureandservices,(ii)businesses,whichwill 

benefitfromextendedairtransportservicesand 

a more aracve CAI’s area, and (iii) workers, 

who will benefit from job creaon during con 

strucon, which would contribute to Egypt’s 

smulus package in response to the economic 

crisis,andaerconstruconthroughairportac 

viesaswellasacviesofindustriesandser 

vicesaractedtotheCAIarea. 

In FY12 the two project components moved 

aheadatagoodpace.Theprocurementofthe 

workscontractfortherehabilitaonandexpan 

sionoftheTerminalBuilding2atCairoInterna 

onal Airportwas awarded to a JointVenture 

betweenLimakandCMR.Thesecondcomponent 

finances the development of five studies. To 

date, two studies have been completed, two 

studiesareunderpreparaon,andtheprocure 

mentofthelastfihstudyiscurrentlyongoing. 

Contact person is Olivier Le Ber at 

oleber@worldbank.org

LATINAMERICAANDCARIBBEAN 

GrenadaRegionalDisasterVulnerabilityReduconAPL1(P117871) 


The small island states of the Eastern Carib 

bean(EC)regularlysuerdisastersrelatedto 

natural events such as earthquakes, hurri 

canes, landslides, rains and droughts. These 

natural hazards have caused significant and 

recurrentdamagestonaonalinfrastructure 

including housing, road networks, schools, 

hospitalsandotherfacilies. 

Grenada’s Maurice Bishop Internaonal Air 

port(MBIA)funconsasanimportantregion 

alinfrastructuresiteintheregion’semergen 

cy response capacity. It is the alternate air 

portforTrinidadandTobago,Barbados,and 

St.VincentandtheGrenadines,andprovides 

airtracsupportinemergencysituaonsto 

the island of Saint Vincent.The connued 

operaonoftheairportisthereforecricalto 

theregionaswellastoGrenada. 

Severalcricalinvestmentsareneededatthe 

airport to maintain an adequate emergency 

responsecapabilityandtocomplywithoper 

aonalstandardsasrequiredbytheInterna 

onal Civil Aviaon Organizaon (ICAO). In 

absence of these investments, Grenada and 

the region risk a downgrading of its airport 

cerficaon.Thiswouldleadtoahaltofmost 

commercial air acvity severely aecng 

communicaonsandtourism. 

In order to address these deficiencies, the 

Regional Disaster Vulnerability Reducon 

Program will support the aviaon sector 

throughtheprovisionofworks,technicalad 

visory services, training, and acquision of 

goods. This includes training on open water 

rescueoperaons,construconofanewwa 

tertankandemergencycoordinaoncenter, 

aswellasacquisionofrescueboats,firede 

tecon and alarm systems, runway fricon 

measuringequipmentandradiocommunica 

ons equipment. A contract for the produc 

onanddeliveryof3ARFFtruckswassigned 

in August 2012, with expected delivery in 

2013. These investments will allow the air 

porttocomplywithICAOrequirements,and 

improving operaonal resilience and re 

sponsecapacitytodisasterimpacts. 

Contact person is Jusn T. Locke at 

jlocke@worldbank.org 

18


 

Bolivia–NaonalRoadsandAirportInfrastructure(P122007) 

TheBoliviaNaonalRoadsandAirportInfra 

structure Project (P122007) supports road 

infrastructure improvement in the depart 

mentofLaPazandandupgradingofairport 

infrastructureandequipmentinthetownof 

RurrenabaqueinthedepartmentofBeni. 

The investment is being used for the con 

strucon of a new taxiway, apron, control 

tower, operaons building, rescue and fire 

fighng buildings, an access road, and a 

19 

passengerterminal;andtheacquisionand 

installaon of aviaon control, rescue and 

firefighng equipment.The client, AASANA 

(Administracion de Aeropuertos y Servicios 

Auxiliares a la Navegacion Area), is in the 

processofengagingasupervisionconsultant 

and civil works will be bid before end of 

2012. 

Contact Person is Gylfi Palsson at 

gpalsson@worldbank.org 

HaiInfrastructureandInstuonsEmergencyRecovery(P120895) 

OnJanuary12,2010,Haiwasshakenbya 

7.0magnitudeearthquake,atadepthof10 

km, which was followed by several aer 

shocks,someasstrongas6.1and5.9magni 

tudes. 

Global relief eorts followed immediately 

aer the earthquake with the World Bank 

announcingsupportofUS$100millionon13 

January2010.Astheonlyoperaonalentry 

point, PortauPrince (PAP) proved to be a 

vital in conducng humanitarian relief 

eorts. The airport was also severely dam 

agedhowever.Majorstructuraldamageoc 

curred to the terminal building and to the 

control tower. In addion, the lighng sys 

tems and power supply are insucient for 

night operaons, and navigaonal aids (ILS/ 

VOR)donothaveabackupsystem.Although 

notseverelyaectedbytheearthquakethe 

airport’s runway and apron also had pre 

exisng cracks and damages which repre 

sentedadangertoaircra. 

The Bank’s board approved the Hai Infra 

structureandInstuonsEmergencyRecov 

eryProjecton09March2010,consisngofa 

US$65 million grant. Its objecve is to sup 

port Hai in its early recovery eorts, 

through selected intervenons aiming at 

helpingtorebuildkeyinstuonsandinfra 

structure. The project is financing the reha 

bilitaonofkeyaviaoninfrastructurebyan 

inialgrantofUS$3million,whichincludes(i) 

reconstrucon of groundair communica 

onstower,(ii)repairand/orreplacementof 

two VORs, and verificaon of ILS (IMG), (iii) 

repairofrunwaylightsatPAP,(iv)financing 

of associated cost for air trac controllers 

training, and (v) construcon of a runway 

endsafetyareaonRWY10atPAP. 

InFY12GoHrequestedanaddionalfinanc 

ing which has been prepared and approved 

bytheboardofdirectoron27Sept2012for 

an amount of US$35 million with US$5 mil 

lion dedicated to the air transport sector. 

Thisaddionalfinancingwillsupport(i)gov 

ernanceandcapacitybuilding(ii)equipment 

forairsafetynavigaonsystem(iii)connui 

ty of operaon from treatment of debris o 

the earthquake (iv) roads to support devel 

opmentoftourisminthenorth(vi)support 

toMinistryofPWtohandlethereconstruc 

onprocess.TheTechnicalCooperaonBu 

reau(TCB)finalizedtheHaïSiteSurveyRe 

port,idenfyingequipmentneedandprovid 

ing terms of referencefor the various com 

ponents. 

 

Contact person is Pierre Bonneau at 

pbonneau@worldbank.org

EASTASIAANDPACIFIC 

PacificAviaonInvestmentProgram(P128939,P128938,P128940) 


Based on the successful implementaon of the 

aviaoncomponentoftheTongaTransportSec 

tor Consolidaon Project, the World Bank ap 

proved a grant of US$ 125 Million in Dec 2011 

forthePacificAviaonInvestmentProgram.The 

objecveoftheregionalprogramincludingTon 

ga, Kiriba and Tuvalu in a first and Vanuatu, 

SamoaandSolomonIslandsinsubsequentphas 

es, is to improve operaonal safety and over 

sightofinternaonalairtransportinfrastructure 

inthePacific. 

Themaincomponentsoftheprojectinclude:(i) 

Aviaon Infrastructure Improvements in order 

tomeetICAOstandards(ii)AviaonSectorRe 

formsupporngtheCivilAviaonDepartments/ 

Authories of each country to strengthen 

State’scivilaviaonsystemandtoassistinthe 

capacity and eciency of the regional safety 

oversight agency, the Pacific Aviaon Safety 

Oce (PASO) (iii) Strengthening Airport Opera 

ons and Management Capacity; and (iv) Pro 

gramSupportandTrainingtotheTechnicaland 

FiduciaryServicesUnit(TFSU)toimplementthe 

Program and Implemenng Agent (Tonga Air 

ports Limited) to support the project as 

necessary. 

 

InFY12theprogramhasalreadyachievedcon 

siderableprogress.ICAOauditsoftherespecve 

airports have been conducted idenfying the 

deficienciesthatneedtobeaddressedinorder 

tomakeairportscompliantwithICAOStandards 

and Recommended Pracces (SARPs).The De 

signandSupervision(D&S)Consultantforinfra 

structurehasbeenappointedandaremobilizing 

staandequipmenttocommencethedetailed 

designworkforeachrunway,withtheobjecve 

ofbiddingbyJune2013. 

AspartoftheprojectthePacificAviaonSafety 

Oceistoberestructuredtoprovidemoree 

cient and costeecve services to its member 

states.Aconsultanthasbeenappointedtopre 

parethePASObusinessplan.Thedraplanwas 

presented to the PASO Council at the PASO 

Meeng on October 3031 in Tonga. In the 

event that the PASO Council agrees to imple 

mentthisplan,theprojectwillthen:(i)finance 

the costs of restructuring PASO to implement 

thebusinessplan;and,(ii)Tongawillbeableto 

use the project funds to finance PASO services 

toTonga. 

 

 

20


 

Determined in the legal covenants of the 

Project, a Safety and Security Levy is to be 

introducedinordertocoversafetyandsecu 

ritycostincurredbytheairportoperatorand 

the CAA. This also includes future fees that 

willpaidtothePacificAviaonSafetyOce 

for regional safety oversight and cerfica 

on. The introducon and mechanism for 

collecon of the tax has progressed 

considerably in FY12 with Air New Zealand 

agreeingtosupportwithIATAthecollecon 

ofthesafetyandsecuritylevyaspartofthe 

cketprice. 

Contact person is Christopher Benne at 

cbenne2@worldbank.org 

TongaTransportSectorConsolidaonProject(P096931) 

With its remote locaon, small size, dis 

persedislandssengandothergeographical 

factors, Tonga faces many challenges in de 

veloping and maintaining sustainable inter 

nal,regionalandinternaonaltransportand 

communicaonlinkages,allofwhicharecru 

cialtotheeconomicdevelopmentandsocial 

wellbeing of its esmated 105,000 popula 

on.Recognizingthekeyroleoftransportin 

the economy and the social fabric of the 

country,GovernmentofTonga(GoT)iscom 

miedtoimprovingtheeciencyofthesec 

tor,aprocessitcommencedin2004follow 

ingarequesttoIDAtosupportajointreview 

ofTonga’senretransportsectorandformu 

late recommendaons for improving sector 

performance. The Tonga Transport Sector 

Review (TTSR) was completed in 2005 and 

many of its recommendaons subsequently 

were adopted by Government as policy. 

Among some of the acons already have 

been,forexample,thecreaonoftheTonga 

AirportsLtd(TAL)inJuly2007asacorpora 

zed airport company under the Public En 

terprisesAct. 

Consistent with the Government’s Strategic 

Development Plan (SPD8) and the recom 

mendaonsoftheTTSR,GoTrequestedIDA 

grant assistance to connue and accelerate 

the process of reforming and consolidang 

itstransportsectortobeerrespondtoboth 

current and future needs. An IDA grant of 

$US 5.4 million was approved in FY09 that 

focusesonachieving(i)strongerpolicy,plan 

ning, and regulatory instuons and frame 

work,(ii)improvedsafetyandsecurityfacili 

esandcompliancewithinternaonalsafety 

and security standards, and (iii) greater do 

mesc capacity for road rehabilitaon and 

maintenance. The project progressed suc 

cessfully in FY12. In the aviaon sector, all 

originally planned highpriority equipment 

andtechnicalacvieshavebeencompleted. 

 

Contact person is Christopher Benne at 

cbenne2@worldbank.org 

 

21

SOUTHASIAREGION 

Pakistan–SecondTradeandTransportFacilitaonProject(P101684) 


InsupportofitsNaonalTradeCorridorIm 

provement Program (NTCIP) the Govern 

ment of Pakistan requested technical assis 

tancelendingfromtheWorldBankin2006. 

Theobjecveoftheprojectisto(i)support 

enes directly concerned with the imple 

mentaonofNTCIPandestablishasustaina 

blemonitoringsystemincludingcommunica 

ons,(ii)supportimplementaonprocessof 

NTCIPthroughanalycalworkontradepro 

cedures and supporng infrastructure and 

services needs (including roads, railways, 

ports & shipping, aviaon, and energy sub 

sectors), and (iii) further strengthen parci 

paon oftheprivatesectoraiming tointer 

nalize publicprivate collaboraon on trade 

facilitaonthroughadedicatedprojectcom 

ponent. 

The aviaon component focuses on the de 

velopment of Air Transport Master Plan for 

Pakistanandanairsafetyimprovementcom 

ponent that aims to improve operaonal 

safety by financing several GNSSbased in 

strument approaches, and by assessing the 

regulatoryoversightbytheCAA.InFY12an 

successful audit of Pakistan’s CAA was con 

ducted by ICAO reporng a lack of compli 

ance of 16.4%, well below the global aver 

age. 

Contact person is Manzoor Ur Rehman at 

mrehman1@worldbank.org 

22


EUROPEANDCENTRALASIA 

Tajikistan – Programmac Development Policy Grant 6 (P117692, 

P126042) 

TheProgrammacDevelopmentPolicyGrant6 

(PDPG6) builds on a series of Programmac 

DevelopmentPolicyGrantsthatwereiniated 

in2006. 

ThefocusofPDPG13wastosupportastrate 

gic set of policy reforms in private sector de 

velopment,publicsectormanagementandso 

cial service delivery. The two main objecves 

of the PDPG46 are to: (a) migate the nega 

veimpactofthecrisisonpovertyandvulner 

ability in Tajikistan, and (b) pave the way for 

postcrisisrecoveryandsustainedgrowth.The 

PDPG 46 series seeks to (i) protect social 

spending and increase its eciency, (ii) im 

prove the climate for private sector develop 

ment and (iii) strengthen government eec 

veness.ThroughPDPG4support,thegovern 

mentapprovedthenaonalaviaonpolicyin 

2010,whichallowsprogressivelyincreasedac 

cesstointernaonalairlinesintermsofroutes 

andfrequency;removesanyrestriconsonair 

cargointermsofaircratypes,size,frequen 

cy, upli or discharge (as long as technically 

feasible); ensures equal treatment at the air 

portsforallcarriersintermsofpricing,fueling, 

and other services; and improves air safety 

through adequate funding and strengthened 

licensing cerficaon, monitoring compliance 

andinspecon. 

TheBankhasconnuedtomonitorimplemen 

taon of the new aviaon policy and assess 

the extent to which PDPGsupported reforms 

have helped expand access to cheaper, safer, 

and more frequent aviaon services. Under 

PDPG6thegovernmentwillconnuetofoster 

compeon in air transport to expand access 

andstrengthenaviaonsectoroperaons. 

Contact person is Salman Zaidi at 

szaidi@worldbank.org 

23

TheIFC,whichprovidesfinancingtoprivatesectorcompanies,hastradionallyfinancedaircarriersandairportinfrastruc 

tureprojects.Ithasseveralprojectsattheproposalstage,orinacvestatus. 

 

IFCPROJECTOVERVIEW 

24


Type 

IFC’sExposure 

ofJune30 

2012 

Descripon Amount 

Project 

No. 

Country 

US$25million US$25million ALoan 

AKFEDAviaon;Generalpurposeloantoaregional 

allianceofAfricanAirlines 

27048 

Africa(Mali, 

BurkinaFaso 

andUganda) 

Brazil 24609 GOLairline:financingforspareparts US$50million US$12.5million Corp.Loan 

Rev.Creditand 

Corp.Loan 

Nil 

US$50million 

TAMAirlines:predeliverypaymentsforthepurchase 

ofAirbusA320familyaircra;corporateloantosup 

portongoingoperaons 

Brazil 24384 

 

IFCALoanupto 

US$7.5million,IFC 

standbyupto 

US$10million 

US$5.26million 

UptoUS$17.5mil 

lion 

CambodiaAirportsII:privazaonofPhnomPenh 

InternaonalAirport–requiredcapitalandinvest 

mentsforexpansion 

Cambodia 25332 

US$10million US$3.76million ALoan 

CambodiaAirports:privazaonofPhnomPenhInter 

naonalAirport 

Cambodia 21363 

A&CLoans 

US$36.88mil 

lion 

Colombia 25899 Avianca:Financingoffleetrenewalprogram US$50million 

ALoan 

US$17.14mil 

lion 

27883 PuntaCanaAirport:Capacityexpansion US$20million 

Dominican 

Republic 

ALoan 

US$12.54mil 

lion 

Georgia 24628 TbilisiAirport:privazaon US$27million 

A&BLoans 

11353 

Crosscurrency 

swaps 

US$12.39mil 

lion 

US$45million; 

US$20millionfor 

IFC’sownaccount 

MBJPhase1–Newlandsideterminalrenovaonof 

exisngterminalforSangsterInternaonalAirport 

Jamaica 

24676 

A&Bloans 

US$16.92mil 

lion 

US$42million; 



MBJPhaseIIExpansionandredevelopmentofSang 

sterInternaonalAirport 

Jamaica 24306 

US$5million US$0.63million ALoan 

MBJ(CUTE)financingfornewCommonUseTerminal 

Equipment(CUTE)andBaggageHandlingandScreen 

ing(BHS)systemsforSangsterIntlAirport 

Jamaica 26202 

Exposureisdefinedasoutstandingbalancepluscommiedbutundisbursedamountsifany. 

25

Type 

IFC’sExposureof 

30June2012 

Country ProjectNr. Descripon Amount 

A,B,CLoansand 

riskmanagement 

products.IFCA 

LoanUS$80mil 

lion,SyndicatedB 

loanUS$175mil 

lion,IFCCUS$40 

million;CrossCur 

rencySwaps 

26182 


26864 

Jordan 

 

US$295million; 



QueenAliaInternaonalAirport:Rehabilitaonof 

bothairsideandlandsidefacilies 

26685 

 

US$25million US$23.12million Equity 

KQAirways:expansionprogramconsisngoftheac 

quisionof9Boeing787Dreamlineraircraand10 

Embraer190aircra. 

Kenya 31650 

US$40million US$10million Rev.Credit 

Vuela:Predeliveryfinancingofupto20A319air 

craforVolarisairline 

Mexico 24672 

US$10million US$7.58million Aloan 

BuddhaAir:purchaseofsmallaircraandlongterm 

workingcapitalrequirements 

Nepal 27247 

US$20million US$20.00million Equity 

LimaAirportsPartnership:FinancialRestructuringand 

assistanceinconjunconwithFraport. 

Peru 24489 

US$15million US$0.18million CLoan 

AirTransportSystems:Purchaseofsmallaircrafor 

airtaxioperaon 

24127 

RussianFed 

eraon 

US$88.06million A&BLoans 

US$236million; 

US$101.3millionfor 


28218 Pulkovoairport 

RussianFed 

eraon 

Tanzania 31878 PrecisionAir:AircraFinancing Pipeline 

IFCALoan,Subor 

dinatedLoan,Syn 

dicatedBLoan, 

Equity 

26913 


US$253million;US$ 

184millionforIFC’s 

ownaccount 

TAVTunisia:construconofanewairportinEnfidha, 

withaninialcapacityof7millionpassengersayear, 

andrehabilitaonoftheairportinMonasr 

Tunisia 

28076 


 

26

IFCPROJECTHIGLIGHTS 

Mexico—VuelaAircraFinancing 

Vuela (branded Volaris) commenced opera 

ons on 13 March 2006. It inially operated 

fiverouteswithfouraircrathroughoutMexi 

cofromitsbaseatAeropuertoInternacionalde 

Tolucabuthasplanstogrowsignificantlyover 

thenextdecade,withaplannedfleetof90air 

craincludingAirbus319,A320andA320Neo. 

Vuela will provide substanally discounted 

faresinamarkethistoricallymarkedbylimited 

compeonandhighfares.Thiswillsmulate 

demandandmakeairtransportaonaccessible 

for a larger share of the Mexican populaon, 

promoteconnecvity,andeconomicgrowth. 

The IFC investment is an IFC revolving credit 

lineof$30millionforthefinancingofaircra 

predeliverypaymentsanda$10million. 

Colombia—AviancaAirlineFleetRenewal 

Aerovias del Connente Americano S.A. 

(Avianca)isoneofthelargestairlinesinLan 

America and the largest in Colombia, oper 

angfromitsmainbaseatElDoradoInterna 

onal Airport in Bogota. The company pro 

vides scheduled services to 21 internaonal 

desnaons(inEuropeandtheAmericas)and 

21 domesc desnaons. Avianca has five 

code sharing agreements with internaonal 

carriers (Iberia, Mexicana, Delta, Air Canada 

andTaca). 

Aviancaisplanningtorenewitsfleetoverthe 

period 20082012 to reduce costs, improve 

eciencyandsafetyaswellasprovidebeer 

passengerservice.Thecompanyhasnegoat 

edthepurchaseof42aircraoverthenext5 

years(includingatleast12Boeing787sanda 

numberofAirbus319/320/330s)toreplaceits 

MD83 and Boeing757/767 aircra. IFC is to 

providefinancingofupto$50milliontoAvian 

ca and its subsidiaries, Sociedad Aeronauca 

de Medellin Consolidada S.A (SAM) and Avia 

on Leasing Services Investment S.A. (ALS) to 

help finance the implementaon of the 

company’sfleetrenewalprogram. 

27

Africa—AKFEDAviaon 

TheAgaKhanFundforEconomicDevelopment 

(“AKFED”), through its Aviaon Services divi 

sion,iscurrentlyexpandingitsacviesinboth 

EastandWestAfrica.Theaimofthedivisionis 

toassistinmaintainingthecricalaviaonin 

frastructure in support of economic develop 

mentandtoprovidemuchneededregionalair 

line services in Africa. IFC’s involvement with 

the organizaon includes a corporate loan of 

upto$25milliontoAKFEDforonlendingtoits 

three airlines: Air Burkina, Air Mali and Air 

Uganda.ThisallowsAKFEDtoconsolidateallof 

theDivision’sairlinesandaviaonacviesand 

opmize roung, synergies and overall eec 

venessacrossthegroup’sairlineoperaons. 

The proposed project is expected to promote 

interregional and internaonal trade in the 

region. Addionally, the Project is also ex 

pected to provide a boost to tourism. Conn 

ued trade and economic growth in Africa is 

conngent on further investments and im 

provementsinregionaltransportinfrastructure 

and services. The division’s operaon will fill 

theservicegapthatexiststodayandwillresult 

in increased frequencies for exisng desna 

ons as well as the addion of new desna 

ons, beer passenger service and improved 

eciency and safety. Such improvements will 

increasetheconnecvity,compevenessand 

aracveness of these countries’ economies. 

Moreover, the proposed project will support 

regional integraon by assisng the develop 

mentandexpansionofagroupofregionalair 

lines. 

 


Nepal—BuddhaAirPrivateLtdIandII 

Air connecvity is a key requirement in Nepal 

givenitsdicultterrainandpoorroadnetwork 

andstrongdomescairlinesareneededtopro 

videreliableandsafeairservices.Withtourist 

arrivalsinNepalgrowingat12%annuallysince 

2006,withNepalincreasinglyfocusingontour 

ismrevenuesandwithaGDPgrowingat~4.5% 

p.a.,therequirementfordomesc/touristair 

lineseatsisexpectedtogrowfurther. 

BuddhaAirPrivateLimitedisacloselyheldpri 

vate limited company providing air services 

since1997.BAPLcurrentlyhas357seatsacross 

a fleet of three Beechcras (18 seats), three 

ATR42s(47seats)andtwoATR72(72seats). 

The expansion to its current fleet had been 

parally financed by an IFC corporate loan of 

$US10MillioninFY09.BAPLhada42%market 

share by passengers in the first half of 2011, 

and was the first one to bring in larger 45 

seater turbo prop aircra for domesc routes 

inNepalandalsothefirsttoflytoBhutanand 

totownsacrosstheIndianborder. 

For the followup project Buddha Air II, IFC is 

providing financing of $6.9 million to BAPL to 

nowpurchaseitssecondATR72, whichithas 

takenonleasesinceSeptember2011,atacost 

of$8.6million.IFC'swillalsohelptheCompany 

enhance safety standards and undergo IATA 

IOSAaudit.financedwithaUS$6.9millionloan. 

 

28


 

Tanzania—PrecisionAirExpansion 

PrecisionAirServiceLimited.thelargestTanza 

niabasedairline,isundergoingagradualfleet 

expansionalongwithfinancingregularcompa 

ny’scapitalexpenditure.TheCompanyplansto 

increase its fleet with 5 addional aircras to 

comeby2015,2tobeownedandtheremain 

derthroughleases.Themajorpartofthefleet 

expansion will be with the turboprop ATRs to 

caterforshorthaulanddomescmarkets,but 

the company also plans to expand its narrow 

body fleet with an addional Boeing 737 300 

series for the medium haul and regional mar 

kets. 

PrecisionAiraimstotripleitscapacity(ASK)as 

wellastogrowthenumberoftransportedpas 

sengersfromcloseto1millionperyeartoover 

1.6millionanddoubleitsrevenuesby2016.To 

finance the resulng capital expenditure, the 

airlinehasraisedTZS11.84billion(orUS$7mil 

lion) through an IPO in November 2011. The 

Companyplanstocompleteitsfinancingneeds 

withinternalcashflowgeneraonandexternal 

debt. 

IFCiscontemplanganinvestmentofUS$4to 

US$6million,whichwillcontributetofinancing 

theCompany’scapitalexpenditure. 

Fromasocialandlaborpointofview,Precision 

Air'sproposedcapitalexpenditureisexpected 

tohelpcreangalilelessthan600newjobs 

inTanzania(currently771employees)mostof 

whichareofatechnical/qualifiedlabornature. 

Addionally, the opening of over 10 new re 

gional desnaons will contribute to a higher 

marketsintegraoninSubSaharanAfricaand, 

in parcular, in the fastgrowing East African 

region and foster tourism in a highpotenal 

touriscarea.Moreover,thiswillhelpremote 

Tanzanianregionsgetabeeraccesstoother 

countries of SubSaharan Africa in a region 

wherethereareoennolandtransportalter 

naves. Finally, the Project will contribute to 

improved safety and reliability of flights to/ 

fromTanzania. 

 

 

Brazil—GOLFinancing 

Aordableandecientairlineservicesarevital 

in Brazil, given the size of the country and its 

inadequate rail transportaon infrastructure. 

However,historicallyhighdomescfaresinBra 

zilhavereservedtheaviaonmarketforasmall 

segmentoftheBrazilianpopulaon. 

The entry of the first lowcost airline Gol into 

themarkethasloweredthecostsofairtravelin 

Braziltobothbusinessandleisuretravelers,and 

has thus made air transportaon accessible to 

the general populaon. Gol is now extending 

thebenefitsoflowcosttraveltootherregional 

desnaons including Argenna, Bolivia, Uru 

guay and Paraguay. Gol’s lowcost model will 

also contribute to making the industry more 

compeveandmoreecient. 

The company’s strategy is to grow its business 

by popularizing air travel, smulang and 

meengdemandsforaordableandconvenient 

airtravelinBrazilandbetweenBrazilandother 

South American desnaons for both business 

and leisure passengers. It currently oers over 

470dailyflightsto49majorbusinessandtravel 

desnaons in Brazil, Argenna, Bolivia, Para 

guay and Uruguay. GOL’s longterm business 

objecve is to bring aordable air travel to all 

significant desnaons in South America. 

TheIFCprojectisa$50millioncorporateloanto 

the company for the financing of spare parts 

andworkingcapital. 

29

Kenya—KenyaAirwaysExpansionPlan 

KenyaAirwaysLtd.(KQ)thenaonalflagcarrier 

of Kenya and the third largest airline in Sub 

SaharanAfricaintermsofseatcapacityoered, 

isinthemidstoftheimplementaonofastra 

tegicfleetandnetworkexpansionplanfocused 

ongrowingitspassengernetworkanddiversify 

ingitsfleettomatchthenetworkneedsaswell 

aslaunchingadedicatedfreighterdivision.Hav 

ingreachedacricalmassandachievedasolid 

financialposion,KQfindsitselfwellposioned 

to capitalize on the growth prospects and op 

portunies that the African region and the in 

ternaonal market presents. KQ’s strategic in 

tentistoestablishitsbrandanditspresencein 

the most important intra African markets as 

wellasbecomeasignificantplayerinlonghaul 

origindesnaon city pairs that are expected 

togrowoverthenextfewyears.Toimplement 

the project, the Company has placed firm or 

ders to aircra manufacturers in connecon 

withtheacquisionofnineBoeing787Dream 

lineraircraandtenEmbraer190aircra. 

Earlier this year, KQ iniated capital raising 

eortstosupporttheexpansion.InJune2012, 

IFCinvested$23milliondollarsofequityandis 

currentlyintheprocessofdocumenngan$80 

million predelivery payments (PDP) financing 

facility.TheinvestmentinKQisIFC’sfirstever 

equity investment in the airline sector and to 

getherwiththePDPfacilityitwillbethelargest 

investmentinthesectortodate. 

IFC'ssupportofKenyaAirways’expansionplan 

is expected to have significant development 

impact.At the regional level of Sub Saharan 

Africa,thelaunchofthefreighterdivisioncou 

pledwiththeopeningofnewintraAfricades 

naons will contribute to markets integraon 

andwillreducethetransaconalcostsoftrade, 

an aspect that is extremely important to pro 

mote the economic development of the SSA 

economies. KQ's entry into new internaonal 

markets will also promote compeon as well 

as provide a key transportaon link between 

growing economies in the Middle East and 

Northern Africa region and Asia promong in 

ternaonaltrade,SouthSouthInvestmentsand 

tourismtoandfromAfrica. 


 

ContactpersonsforallIFCairtransportprojectsareRavinderBuggaatrbugga@ifc.organdHarsh 

Guptaathgupta@ifc.org 

30

IFC ADVISORY SERVICES 

Air Transport Advisory Mandates 

The Infrastructure Advisory Services Depart-ment 

of the IFC provides advisory assistance 

to governments on structuring and imple-menng 

(tendering) Public-Private- 

Partnerships (PPPs) in infrastructure. IFC has 

undertaken more than 100 advisory transac-‐ 

ons in over 67 countries over the last 20 

years. IFC/World Bank's reputaon 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 authories 

The two main domains in air transportaon 

advisory services are private sector parcipa-‐ 

on in airports and air carriers. 

1) IFC Public-Private Partnerships (PPP) 

Advisory Mandates in Airports 

Only 2% of the world’s 10,000 commercial air-ports 

are managed or owned by private sector 

enes. However, as passengers carried by air 

transport has exceeded two billion since 2005, 

and that same year, 40% of all merchandise 

and goods (in value) were air freighted – Pub-lic-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 objecves. 

Of the various airport PPP models available, 

experience shows that concessions and full 

divesture are most effecve: 

 

 

 

Concession Contracts (BOT, BOO, BOOT, 

BTO, etc.): State retains ownership of air-port 

but transfers investment as well as 

operaons and management responsibili-‐ 

es to the private sector 

Full Divesture: Ownership, operaons, 

and investment responsibilies are fully 

transferred to the private sector. 

In certain cases, a blend of first-phase BOT 

followed by public offering can maximize 

benefits 

© Photo ADPI Designers and Planners 

31

In certain cases, a blend of firstphase BOT 

followedbypublicoeringcanmaximizeben 

efits 

2) IFC PublicPrivate Partnerships (PPP) Advi 

soryMandatesinAirlines 

As the airline industry has proceeded along 

thisprivazaonpathoverthelast20years, 

IFC has parcipated in nearly a dozen airline 

transacons. Unfortunately, many have 

proved to be dicult projects due to im 

portantsectorspecificstructuralreasons: 

 

 

 

Fixedcoststructure:Airlinestendtobuild 

up a legacycosts base (sta and fleet) 

that is dicult for a new owner to man 

age. In addion, fuel costs are beyond 

management’s control. During therecent 

oil price spike, they accounted for as 

muchas30%ofthecostbase. 

Pricesensiveproduct:Demandfortravel 

ishighlyelasc,especiallyintouristmar 

kets.Inrecessions,peopleforgovacaons 

for other consumer goods. Conversely, 

pricereduconsincreasepassengernum 

bersdramacally. 

Complicated demand chain: Customers 

oen purchase ckets through travel 

agents,frequentlyinapackagewithhotel 

 

accommodaons. Since airlines rely on 

theseotheractorsfortheirsales,ifthere 

are bolenecks elsewhere the aviaon 

sectorsuers. 

Overregulaon: Bilateral agreements be 

tween governments, sll prevalent in 

manypartsoftheworld,preventcompe 

on from funconing normally. Open 

skies are being adopted, but not in all 

countries. 

3.)IFCAirTransportaonExperience 

When undertaking a transacon advisory 

mandate,IFCprovidesaonestopsoluonto 

governmentscoveringallaspectsofthepro 

posed transacon. One of the disnguishing 

featuresofIFC’svalueaddionisitsabilityto 

balance private and public sector interests 

and take into account sustainable long term 

economicandsocialeects. 

IFCADVISORYSERVICES 

32


SelectedIFCAdvisoryMandatesinAirports 

ProjectName Country Year Mandate/Result 

MadinahAirport SaudiArabia 2012 

VanuatuAirport Vanuatu 2012 

SuccessfullyawardedtoTAV/ 

SaudiOger/AlRajhiconsorum 

DueDiligence/ProjectStructur 

ingcompleted 

JamaicaAirports Jamaica 2011ongoing InialDueDiligenceOngoing 

DiliAirport EastTimor 2012ongoing InialDueDiligenceOngoing 

MaldivesAirports Maldives 2010 

QueenAliaAirport Jordan 2007 

HajjTerminal SaudiArabia 2007 

NigeriaAirports Nigeria 2006 

SuccessfullyawardedtoGMR 

MAHBconsorum 

SuccessfullyawardedtoAéro 

portsdeParis/ADIC/J&P/ 

Noorconsorum 

SuccessfullyawardedtoSaudi 

BinLadenGroup/Aéroportsde 

Parisconsorum 

SuccessfullyawardedtoAbuja 

GatewayConsorum(Airport 

Authority+equitypartners) 

SelectedIFCAdvisoryMandatesinAirlines 

ProjectName Country Year Mandate/Result 

AirJamaica Jamaica 2009 AwardedtoCaribbeanAirlines 

Drukair Buthan 2008 Strategicanalysis 

JAT Yugoslavia 2006 Strategicanalysis 

PolynesianAirlines Samoa 2005 49%soldtoVirginBlue 

CameroonAirlines Cameroon 2005 

AwardedbutCancelledbyGov 

ernment 

AirTanzania Tanzania 2002 49%soldtoSAA 

KenyaAirways Kenya 1996 

76%soldtoKLM,financialinves 

tors 

33

IFCAdvisoryProject:ConcessionofMaléAirport,Maldives 

Malé Internaonal Airport (MIA) services 

nearly80%ofthetractotheMaldives.The 

airporthasauniqueintermodalprocesswith 

interchangebetweenconvenonalaircrato 

domesc convenonal aircra, seaplanes 

(that ensure connecons with islandresorts 

scaeredthroughouttheMaldivianarchipela 

go)orboats.Astourismisasignificantcom 

ponentoftheMaldivianeconomy,theavaila 

bility of adequate airport infrastructure is 

key. The lack of available land, limited inter 

naonalbestmanagementpracceoftheair 

portandavailablefinancingfornecessaryim 

provements to terminal capacity as well as 

internaonal safety standard compliance 

have however been proving to be major ob 

staclesinensuringthis. 

Consequently, the Government of Maldives 

(GoM) invited private sector parcipaon to 

expandandrehabilitatetheairport,andbuild 

a new terminal. This decision was part of a 

broaderstrategybythegovernmenttoliber 

alizeairtransportpolicies,improvethecom 

peveness of Maldives’ airports and boost 

an economy that is heavily dependent on 

tourismrelatedacvies. 

InAugust2009,thegovernmentrecruitedIFC 

astheLeadTransaconAdvisortoassistwith 

theimplementaonofthePPP.InJune2010, 

IFC completed its mandate and, following a 

compeve bidding process, Malé Airport 

wassuccessfullyawardedtoaconsorumof 

GMRInfrastructureLimited(GMR)fromIndia 

and Malaysia Airports Holdings Berhad 

(MAHB) from Malaysia as a 25year conces 

sion. The project included rehabilitang ex 

isng facilies, construcng a new terminal 

withacapacityoffivemillionpassengersper 

year,andoperangtheairport. 

The winning bid comprised a US$78 million 

upfront fees component and a revenue per 

centage share that represents nearly US$1 

billion(calculatedonNPVbasis)offiscalben 

efits for the government over the length of 

the concession. The proposed investment of 

US$400millionbyGMRMAHBinMIArepre 

sentsnearlyathirdofMaldives’US$1.3bil 

lionGDP(2009figures). 

Theprojectwasimplementedinarecordnine 

months. This is the first successful public 

private partnership project in the Maldives 

andmarksaflagshipdealfortheGovernment 

of Maldives’ privazaon program. It is al 

ready serving the Maldives as a model for 

launching a fullscale public private partner 

shipin infrastructure. 


ContactpersonsforallIFCairtransportadvisoryservicesareRamatouMagagiatrmagagi@ifc.org 

andAlexandreLeighataleigh@ifc.org 

34

MULTILATERALINVESTMENTGUARANTEEAGENCY 

GuaranteesprovidedbytheMullateralInvestmentGuaranteeAgency(MIGA)coverprojectsina 

broadrangeofsectors,withprojectsininfrastructureaccounngforthelargestshare(41%)ofthe 

agency’soutstandingporolio.InfrastructuredevelopmentisanimportantpriorityforMIGA,given 

theesmatedneedforUS$230billionayearsolelyfornewinvestment(maintenanceneedsareof 

asimilarmagnitude).Thisistodealwiththerapidlygrowingurbancentersandunderservedrural 

populaonsindevelopingcountries.TworecentexampleprojectsofMIGAguaranteesareJorge 

ChavezInternaonalAirportprojectinPeruandNewAirportprojectinQuito,Ecuador. 

PeruJorgeChavezInternaonalAirport(JCIA) 

MIGAprovidedFraportAG,ofGermanywitha 

guarantee for US$11.5 million, to cover its 

US$12.8millioncounterguaranteeforaperfor 

mance bond posted for the privazaon of 

Lima's airport, Jorge Chavez Internaonal Air 

port(JCIA).Thecoverageisagainsttheriskof 

expropriaon (the wrongful call of the perfor 

mancebond),andextendsforeightyears. 

The Peruvian government sees airport priva 

zaonasakeyfactorinitseorttoexpandem 

ployment opportunies, and create a modern 

transportaonfacilitytoserveasthecountry's 

gatewaytotheworld.Itwillalsoenhanceand 

expand tourism, another government goal. 

During the first four years of the concession, 

the consorum is expected to invest over 

US$130millioninnewinfrastructure,including 

upgradestothecurrentterminal,construcon 

ofanewpassengerconcourse,expansionand 

addion of new aircra aprons and taxiways, 

and creaon of a hotel and worldclass retail 

centerwithintheexisngairportperimeter 

35 

©PhotoPeruTourismBureau

Ecuador–NewAirportatQuito 

MIGA issued three guarantees of US$32.8 

million,US$16.4million,andUS$16.4million 

totheAeconGroupINC.ofCanada,theHAS 

Development Corporaon of the United 

States, and ADC Management Ltd. of the 

United Kingdom for their respecve share 

holderloanstoCorporacionQuiportofEcua 

dor. In addion, MIGA also issued guaran 

tees of US$450,000, US$225,000, and 

US$225,000fortheinvestors'respecveeq 

uity investments in the project enterprise. 

The Aecon Group and HAS Development 

Corporaon have coverage for a period of 

fourteen years for their shareholder loans 

whiletheremainingfourguaranteesarefor 

a period for fieen years. Each guarantee 

providescoverageagainsttherisksofTrans 

fer Restricon, War and Civil Disturbance, 

andBreachofContract. 

The project involves the construcon of a 

new airport near Puembo, 24 km. outside 

thecapitalcityofQuito.Theprojectwillbea 

keyeconomicdriverforsustainableeconom 

ic development of the metropolitan region 

ofQuito.Theairportisexpectedtobeoper 

aonalbyearly2008toreplacetheexisng 

airport in the city of Quito, which suers 

from safety deficiencies as well as capacity 

constraints. 

ContactpersonforallMIGAguaranteesisMargaretA.Walshatmwalsh@worldbank.org 

 

MULTILATERALINVESTMENTGUARANTEEAGENCY 

36

EXTERNALRELATIONS 

InternaonalCivilAviaonOrganisaon(ICAO) 

The Internaonal Civil Aviaon Organizaon 

(ICAO) is the specialized air transport agency 

of the United Naons. The WBG and ICAO 

have been working closely together on vari 

ousairtransportissues.ICAOhasamongoth 

er things provided safety and security audits 

and supervision services for the Bank’s pro 

jects in West and Central Africa and in the 

South Pacific and has assisted in idenfying 

needs and priories of air transport projects 

invariouscountries. 

InApril2012CharlesSchlumbergerrepresent 

edtheWorldBankGroup(WBG)attheInter 

naonalAirTransportSymposiumasspeaker 

on the Panel: Financing Air Transport: Chal 

lenges and Prospects (hp://www.icao.int/ 

Meengs/iats/Pages/default.aspx). On the 

panel of financing air transportaon, he pre 

sented the WBG air transport porolio, and 

outlinedchallengesandopportunies. 

In addion, the Bank maintained regular 

contactandmeengswithICAOocialsdur 

ing FY12.A parcularly prominent topic in 

thesemeengshasbeentheongoingdebated 

on environmental sustainability of aviaon. 

With regards to this, ICAO, IATA, ATAG and 

the WBG have been engaged in discussion 

throughout the year with regards to a possi 

blecooperaononthesengupofaglobal 

schemeaddressinginternaonalaviaonCO2 

emissions. 

 

37

GlobalAviaonStrategySummit(Berlin,Germany,2—4October2011) 

As in previous years ICAO, the World Bank, 

and Routes jointly held the Global Aviaon 

Strategy Summit (GASS) in Berlin, Germany 

between2Octoberand4October2011.This 

annual event serves as a plaorm for ex 

changebetweentheBank,ICAOandtheavi 

aon community including airlines, airports 

and service providers. The conference, the 

seventhofitskind,wascolocatedwiththe 

17th World Route Development Forum at 

theMesseBerlin.Inaseriesofpaneldiscus 

sions the industry’s most prominent issues 

werediscussingincludingtopicssuchasthe 

aviaon industry today, the environmental 

challengesandopportuniesfortheaviaon 

industry, aviaon as an economic develop 

mentcatalyst,andtheroleofalliancesand 

new aircra in the development of airport 

infrastructure.Thesuccessfulevent,moder 

ated by BBC reporter Aaron Heslehurst, re 

sulted in dynamic interacons between the 

speakers,industryleaders,andotherparci 

pants. As last year a report was prepared 

highlighngthemainconclusionsandtrends 

(see hp://legacy.icao.int/WRDSS2011/ 

SummaryDiscussions.pdf) 

CharlesSchlumbergermoderatedthepanels 

“Constraints to growth and sustainability: 

Analysingtheimpactofpolicyonthedevel 

opment of the aviaon industry” and“Air 

transportpolicies–lessonslearntinliberali 

zaonandopenskiesandthepotenalchal 

lengesthatmayarise.“ 

The next GASS took place during the 18th 

World Route Development Forum in Abu 

Dhabi, United Arab Emirates on September 

30—October2,2012. 


ChinaCivilAviaonDevelopmentForum(Beijing,China,23–24May2012) 

Charles Schlumberger parcipated as 

speakerrepresenngtheWBGintheChina 

Civil Aviaon Development Forum 2012 in 

Beijing, presenng "Air Transportaon: Im 

portant Foundaon of Naonal Compe 

veness”. The presentaon focused on air 

connecvity and explained the Bank's re 

cent publicaon of the Air Connecvity In 

dexwhereChinawasranked46among211 

countriesandterritoriesexamined.Charles 

Schlumberger concluded that the develop 

mentofairservicesandtheirnecessaryin 

frastructure was of great importance for 

China's economic development. He also 

menonedtheBank'sfirstairportprojectin 

Shagroa,JiangxiProvince,asanexampleof 

asmallinfrastructureproject,whichfocus 

ses on becoming a "green airport". 

Thehighlevelconferencefurtherdiscussed 

several key topics on China's future air 

transport development agenda, which in 

cluded (i) CAAC plans for invesng for de 

velopmentinthenext5years,(ii)Futureof 

ATC System and Airspace modernizaon, 

(iii)Chineseairlineleadersonfuturedirec 

ons,(iv)Chineseairportleadersonfuture 

direcons(v)ShanghaiIntegratedTranspor 

taon Hub as a model for future develop 

ment,(vi)Increasingsystemsafety,capaci 

ty, and eciency (vii) General Aviaon de 

velopmentandfuturegrowth,(viii)Interna 

onal cooperaon, and (ix) Cooperaon 

with Chinese provincial and city govern 

ments 

ContactpersonisCharlesE.Schlumbergeratcschlumberger@worldbank.org 

38


CommunityService 

SeveralWorldBankstamembersattheBank 

arelicensedandacvepilots,cerfiedbythe 

USFAAand/orEuropeanAviaonAuthories 

EASA.Toremaincurrentontheirpilot’squali 

ficaons, they regularly fly and undergo re 

quiredrefreshertraining. 

The most rewarding way of maintaining cur 

rency is to provide community service by 

providing free air transportaon to people of 

all ages whose medical needs – evaluaon, 

diagnosis,andtreatment–canonlybemetby 

health care facilies far from their homes. In 

the US, the notforprofit organizaon Angel 

Flight providesmely travel to paents who 

can'twithstandtravelinglongdistancesbyau 

tomobile, rail, or bus, and who do not have 

thefinancialmeanstopurchasesuitablealter 

navetransportaon.Inaddion,transportin 

smaller private aircra can beer accommo 

date those paents whose condion could 

worsen if exposed to the recirculated air on 

commercial flights, and who need ecient 

pointtopointtransport. 

wasaflightfromGreensboro,SouthCarolina, 

to Balmore, Maryland, to transport baby 

PrinceOjongandhismotherCatherine,aci 

zen from Cameroon. Prince was recovering 

from emergency surgery in Greensboro, and 

the young immigrant family was grateful to 

havebeentransportedcomfortablyandsafely 

in a private aircra, which they never could 

haveaordedgiventheirlimitedmeans. 

TheflightwasconductedbyCharlesE.Schlum 

bergerandhisBankcolleagueNoraWeisskopf 

who both bore all cost for the mission. The 

Bank’s contribuon, in accordance to Sta 

Manual9.10,consistedofonedayadministra 

veleavetocarryoutthisrewardingcommu 

nityservice. 

Formoreinformaonvisit 

www.angelflighteast.org 

 

One example of such an Angel Flight Mission 


39

Air Transport Brown Bag Luncheon—A Dog Fight in the Air: The bale 

over inclusion of Aviaon in the EU ETS 

On 8 March 2012, the Transport Unit 

(TWITR) and the Carbon Finance Unit 

(ENVCF) jointly organized a Brown Bag 

Lunch on the developments and challeng-es 

of the inclusion of aviaon in the Euro-pean 

Union emission trading scheme (EU 

ETS). The event was moderated by Charles 

Schlumberger and started with a presenta-‐ 

on by Dr. Guenther Hoermandinger, 

Counselor of Environment of the European 

Union’s Delegaon to Washington. 

Dr. Hoermandinger outlined the different 

events as well as the factors leading to the 

inclusion of aviaon in the EU ETS, which 

has been implemented this January. He 

explained that due to an unfortunately 

slow development of a global aviaon 

framework for the reducon of carbon 

emissions at the Internaonal Civil Avia-‐ 

on Organisaon (ICAO) and significant 

growth projecons in the industry, the in-‐ 

clusion of aviaon in the EU ETS was cur-rently 

unavoidable. In fact, the EU took 

this decision aer ICAO confirmed in 2004 

that it would not be in a posion to devel-op 

a global ETS, and it encouraged the de-velopment 

of regional schemes. 

The presentaon was followed by an inter-acve 

session touching on various issues 

and arguments that have been brought 

forward in opposion to this move by the 

European Union. These discussions will 

hopefully smulate a connued dialogue 

on the subject of emissions trading 

schemes and carbon finance in the 

transport sector, and lead to various fol-low-up 

events. 

INTERNAL DISSEMINATION 

Contact person is Charles E. Schlumberger at cschlumberger@worldbank.org 

© Photo: Universal Weather and Aviaon 

40

RESEARCHANDINTERNALSERVICES 

AirTransportandEnergyEciency 

The well being of the airline industry hinges 

significantly on the price fluctuaons of the 

price of crude oil. Consequently in July of 

2008,whenthepriceforcrudeoilreachedan 

historicalhighlevelof147dollarsperbarrel, 

theindustrysueredtremendously.Although 

priceshavedeclinedsubstanallysincethen, 

about 50 percent, many airlines are con 

cerned about future price spikes that might 

occurwhenglobaldemandforcrudeoilisre 

stored.Energysecurity,withreliableandade 

quatesupplyofenergyatareasonablecost,is 

anincreasingworryforairlines. 

In face of these challenges, the Internaonal 

CivilAviaonOrganizaon(ICAO)emphasized 

atits36thSessionoftheAssemblyin2007,a 

proacve approach relang to alternave 

fuels, by recognizing “the importance of re 

searchanddevelopmentinfueleciencyand 

alternave fuels for aviaon that will enable 

internaonal air transport operaons with a 

lowerenvironmentalimpact”. Inthesummer 

of2009,theindustryannouncedattheAnnu 

al General Meeng the Internaonal Air 

Transport Associaon (IATA) that the air 

transportindustrywouldaimfor"carbonneu 

tralgrowth"from2020,withanetreducon 

inemissionsof50percentby2050compared 

to 2005 emissions. The achievement of this 

goalrequiresasteadyincreaseinfuelecien 

cy, which will be achieved with several 

measuresincludingtheapplicaonofbiofuels 

injetengines.Achieving‘CNG2005’through 

out2020to2030,withoutbiofuels,wouldre 

quirefueleciencytoimprove43percentin 

2020 over 2005. With biofuels (17 billion li 

ters, 6 percent of fuel use by 2020) the fuel 

eciencyrequiredtohit‘CNG2005’wouldbe 

substanallyless,becauseofloweremissions 

fromfuelburn. 

Complemenngresearchintooilsecurityand 

climatechange,theinternaonalairlinecom 

munity has also begun to push the research 

andtheeventualdevelopmentof alternave 

fuelsforairtransportaonwithparcularfo 

cusonthecerficaonandproduconbiofu 

els.TheStudy‘AirTransportandEnergyE 

ciencyfocusesonmeasuresofimprovingen 

ergy eciency of the air transport industry 

including cleaner aircra technology, airport 

infrastructureandAirTracControl. 


41

Air Carrier Advisory System for World Bank Staff Air Travel 

The Bank has been developing an evaluaon tool for assessment of the risks associated with air travel by Bank 

staff since FY 2008. The air carrier advisory system developed by the Bank’s General Service Department and 

TWITR was tested during FY10, and is ready for launch in FY11. The advisory service is based on the following 

criteria with three categories of airlines: 

Category Descripon Recommendaon 

1 All airlines that are industry cerfied by having 

passed an IATA IOSA audit, unless subsequent 

safety experience indicates a safety problem. 

2 All airlines that though they are not industry cer-‐ 

fied are either licensed by a country with an 

FAA IASA rang of Category 1, or are known to 

the Bank as safe carriers. 

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. 

Good to fly. The Bank has no objecon to 

using these airlines. 

Good to fly. The Bank has no objecon to 

using these airlines. 

3a. Airlines that do not qualify for category 1 

or 2, but there is no informaon known about 

them that would increase the risk factor. 

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 alternaves before se-lecng 

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. 

RESEARCH AND INTERNAL SERVICES 

Risk Criteria: 

Use only for essenal missions and only if no 

viable and safer transport alternaves are 

available. 

 

 

 

Serious accident in the last 3 years (defined as any incident that results in injury or death of a passen-ger 

or substanal damage to the aircra) 

Registered in a country with poor oversight (based solely on ICAO safety audit) 

A flag of convenience airline (an airline that is registered and maintained in a country other than 

where it operates) 

 

Use of aircra over 20 years old 

Overall there were 182’843 flights booked by American Express for Bank Staff in FY 2012. Most of the 

flights booked by Bank staff are with airlines that considered to be Good to fly. Less than one percent 

(1,215 flights) of the flights were on airlines considered Category 3, (There may have been many more, as 

the data did not capture trip arranged in the regions.) Travelers should be aware that surface transporta-‐ 

on may be impossible or may represent more risk than air travel in some client countries. TWITR will 

connue to provide ongoing assessments and safety advice for air travel of Bank staff. 

Contact Person is Nora Weisskopf at nweisskopf@worldbank.org 

42

OUTLOOKFISCALYEAR2013 

FinancingofAirTransportrelated 

Projects 

Air Transportaon has become the key infrastruc 

ture for global economic development. Despite un 

certaines and potenal challenges that may slow 

down growth, air transport services must connue 

toexpandinasafe,secure,andsustainablemanner. 

This entails substanal investments for rapidly 

emerging markets such as China or India with ex 

pectedpassengergrowthtoaveragebetween7and 

8percentannually.However,evenlessrapidlygrow 

ingcountriesmustinvestinmodernairportandair 

trac management and surveillance infrastructure. 

Operatorsaroundtheglobecanonlysecuresustain 

ableandprofitableairserviceswhenachievinghigh 

energy eciency through modern aircra and e 

cientoperaons. 

The WGB will focus on a few air transport invest 

ment projects in FY13, which include for example 

the preparaon and implementaon of airport fi 

nancing projects in Egypt, Kenya, and China. Such 

projects do also include smaller Bank clients states 

and are increasingly launched on a regional 

plaorm. The current regional aviaon infrastruc 

ture project if the Pacific Aviaon Investment Pro 

ject,whichplanstosupportsixPacificislandstates 

by financing needed infrastructure investments. In 

addion, the WBG will be financing modern air 

trac control systems that allow more direct 

roungs and increase safety. However,given the 

limitaons of public funding in many developing 

countries for the aviaon sector, project financing 

shouldbeprovidedincooperaonwiththeprivate 

sector, for example through publicprivate partner 

ships.TheWBGwillconnuetoadviseitsclientson 

suchmodelsinairtransportaon. 

The IFC is funding the private sector of the air 

transport industry with the same development fo 

cus, as long as projects meet commercial criteria. 

The range of expected projects include aircra fi 

nancing, project finance of private run airports or 

terminals, and air trac control enes which are 

not directly stateowned. Given the connued 

strong demand for air transport services in many 

emergingmarkets,newIFCairtransportprojectsare 

expectedinFY13. 

ResearchandPublicaons 

TheBank,asaleadingdevelopmentinstuon,will 

connuetomaintainhighstandardsinitsspecialized 

technical sectors by maintaining research, con 

ducnghighleveltechnicalexchanges,andfostering 

specificindustrycontacts.TheBankhaslauncheda 

newstudyontheroleandopportuniesoflowcost 

carriers in developing countries, which is expected 

tobepublishedinFY13. 

In addion, several economic and policy research 

pieces on air transport services and trade develop 

mentwillbecarriedoutandpublished. 

43

AbouttheWorldBankGroup 

TheWorldBankisavitalsourceoffinancialandtechnicalassistancetodevelopingcountriesaroundtheworld.Ourmis 

sionistofightpovertywithpassionandprofessionalismforlasngresultsandtohelppeoplehelpthemselvesandtheir 

environmentbyprovidingresources,sharingknowledge,buildingcapacityandforgingpartnershipsinthepublicand 

privatesectors. 

Wearenotabankinthecommonsense;wearemadeupoftwouniquedevelopmentinstuonsownedby187mem 

bercountries:theInternaonalBankforReconstruconandDevelopment(IBRD)andtheInternaonalDevelopment 

Associaon(IDA). 

Eachinstuonplaysadierentbutcollaboraveroleinadvancingthevisionofinclusiveandsustainableglobalizaon. 

TheIBRDaimstoreducepovertyinmiddleincomeandcreditworthypoorercountries,whileIDAfocusesontheworld's 

poorestcountries. 

TheirworkiscomplementedbythatoftheInternaonalFinanceCorporaon(IFC),MullateralInvestmentGuarantee 

Agency(MIGA)andtheInternaonalCentrefortheSelementofInvestmentDisputes(ICSID). 

Together,weprovidelowinterestloans,interestfreecreditsandgrantstodevelopingcountriesforawidearrayofpur 

posesthatincludeinvestmentsineducaon,health,publicadministraon,infrastructure,financialandprivatesector 

development,agricultureandenvironmentalandnaturalresourcemanagement. 

TheWorldBank,establishedin1944,isheadquarteredinWashington,D.C.Wehavemorethan10,000employeesin 

morethan100ocesworldwide.

Transport,WaterandInformaon&CommunicaonTechnologiesDepartment 

TheWorldBankGroup 

1818HStreet,NW 

Washington,DC20433USA 

www.worldbank.org/transport

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