The global air transport industry continues to grow well over twice of Gross Domestic Product.
For 2017, growth of passengers was over 7 %, topping 4 billion worldwide passengers. Airlines
are profitable in most regions of the world, reaching an expected global combined net profit of
$31.4 billion. Many emerging and developing countries benefit from this positive development,
as affordable and reliable air travel fosters economic growth by supporting trade, tourism and
foreign direct investments. This continued growth, however, puts high demand on some of the
World Bank Group’s (WBG) client countries in terms of developing and maintaining required in-
frastructure, and complying with international standards and best practice.
For over seven decades, the WBG has financed various types of infrastructure, including in air
transportation, such as airports or air traffic control systems. However, given the worldwide huge
requirements for infrastructure financing on the one hand, and the generally solid and abundant
liquidity of the private sector on the other hand, the WBG has embarked on an effort to help
countries maximize finance for development without pushing the public sector into unsustainable
levels of debt and contingent liabilities.
By applying the so called “Cascade Approach", the WBG helps
countries maximize their development resources by drawing on
private financing and sustainable private sector solutions to pro-
vide value for money and meet the highest environmental, social,
and fiscal responsibility standards, and reserve scarce public fi-
nancing for those areas where private sector engagement is not
optimal or available. This means that WBG teams are consistently
testing—and advising clients on—whether a project is best deliv-
ered through sustainable private sector solutions while limiting
public liabilities, and if not, whether WBG support for an improved
investment environment or risk mitigation could help achieve such
solutions. In air transport, especially the financing of airport infrastructure, private funding in the
form or Public Private Partnerships (PPP) for airports is the preferred way of mobilizing finance.
The 13th edition of the World Bank Group (WBG) Air Transport Annual Report, outlines the sup-
port that is given to emerging and developing countries in air
transportation. It summarizes the current portfolio of the air
transport practice at the WBG, and highlights some of the pro-
jects in more detail. The above described new approach of fi-
nancing infrastructure by involving the private sector has al-
ready shown it effect on the air transport portfolio. Given that
no new major airport infrastructure projects have been initiated,
the overall portfolio has declined to about US$ 1 billion. The
decline is especially significant in IBRD projects, which is con-
sistent as middle income countries have easier access to pri-
vate funding.
This annual report summarizes the WBG air transport development activities,
which includes an overall portfolio of US$1.03 billion, and several analytical and
technical research products. With these activities we remain actively engaged
around the world on air transport development, by addressing policy and regula-
tion, safety, infrastructure rehabilitation, institutional strengthening, and capacity
building in client countries. Finally, environmental challenges of aviation, and
how to mitigate them in emerging markets, continue to be a top priority for the
WBG, which we address in cooperation with strategic partners.
We look forward to continue addressing the challenges and opportunities of the
sector in 2018 to help achieving safe, affordable, and sustainable air transporta-
tion for all.
Dr. Charles E. Schlumberger
Lead Air Transport Specialist
The World Bank
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)
ICSID International Centre for Settlement of Investment Disputes
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)
PASO Pacific Aviation Safety Office
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
WB World Bank
WBG World Bank Group
This report benefited from the contributions of a number of staff
members from across the World Bank Group.
We would like to thank Shruti Vijayakumar, Adam Diehl, Christo-
pher J. De Serio, Christopher Bennet, Nora Weisskopf; To-
joarofenitra Ramanankirahina, Weimin Zhou, Sami Ali, Olivier Le
Ber, Paula Pardo Pachon, Carlo Bongianni, Ramatou Magagi
and Alexandre Leigh for their input to this report.
We would also like to thank Jose Luis Irigoyen, Senior Director,
and Franz R. Drees-Gross, Director of the Transport and Digital
Development Global Practice for the continued guidance and
support, as well as Aldo Giovannitti for the research and prepa-
ration 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, guarantees and advi-
sory services. 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 digital development.
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
Digital Development is now a Global Prac-
tice. The Bank’s new nimble structure with
Global Practices and Cross-Cutting Solu-
tion Areas is designed to strengthen collab-
oration and improve knowledge sharing
across the institution. These changes are
intended to improve operational efficiency,
financial sustainability, and ultimately work
toward meeting the twin goals of ending
extreme poverty and boosting shared pros-
perity.
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$46.7 bil-
lion.
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 air transport equipment and infra-
structure, regulatory frameworks, and safe-
ty and security oversight 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 2017 (FY17), WBG’s Air Transport
Portfolio amounted to US$1.03 billion, a decrease
of 17% from Fiscal Year 2016 (FY16), which was
due to the completion and closing of larger airport
infrastructure projects. The Air Transport segment
makes up around 2.2% of the WBG’s US$46.7 bil-
lion Transport portfolio. The WBG’s FY17
Transport portfolio consists approximately 16.7%
of the WBG’s active portfolio of US$279.5 billion
(excluding MIGA).
The Air Transport portfolio includes 45 projects or
project components through the International Bank
for Reconstruction and Development (IBRD) and
International Development Association (IDA), as
well as the International Finance Corporation
(IFC)’s portfolio of lending and non-lending prod-
ucts in the aviation sector.
Project highlights in 2017 include the preparation
of a US$285 million Aviation Modernization Pro-
ject in Kenya and the additional financing for the
Aviation Investment Projects in Vanuatu, Tuvalu
and the Pacific Aviation Safety Office (PASO),
which are part of the Pacific Aviation Investment
Program (PAIP). PAIP is currently being imple-
mented in Vanuatu, Kiribati, Tonga, Tuvalu, and
Samoa.
Additional current projects in air transport include
the Shangrao Sanquingshan Airport, which is be-
ing funded through a US$50 million loan, and the
US$52 million DRC Goma Airport Safety Improve-
ment Project.
Major current commitments by the International
Finance Corporation (IFC) include
ASECNA in Africa, Queen Alia II in Jordan, the Za-
greb Airport in Croatia, the Enfidha airport con-
struction in Tunisia and the Pulkovo Airport in the
Russian Federation. IFC is active through Advisory
Services in Jamaica, Saudi Arabia and Santa Lu-
cia. MIGA has been involved in the air transport
sector in the past through the issuance of guaran-
tees 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 ACI-WBG
Aviation Symposium in London, UK. Research and
knowledge dissemination also continue to consti-
tute 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
tera
l 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
-
cal Y
ear
2017,
the W
orld B
ank's
Air T
ransport
Port
folio
is a
round U
S$1.0
3 b
illio
n.
This
inclu
ded a
tota
l of
45 lendin
g a
nd n
on-lendin
g p
roje
cts
or
pro
ject
com
pon
en
ts t
hro
ug
h t
he I
nte
rnatio
na
l B
ank f
or
Re
con
str
uction a
nd
De
ve
lopm
ent
(IB
RD
) a
nd I
nte
rnatio
na
l D
eve
lopm
ent
Asso
cia
-
tio
n (
IDA
), a
s w
ell
as t
he In
tern
atio
na
l F
inan
ce C
orp
ora
tio
n (
IFC
)’s p
ort
folio
of
lend
ing
an
d in
ve
stm
en
t a
dvis
ories in
th
e a
via
tion
se
cto
r.
Active Air Transport Projects in FY17: IBRD and IDA invest in a number of
air transport projects worldwide focusing on regulatory reform, capacity build-
ing and infrastructure investments, as well as technical assistance and analyt-
ic/advisory services.
IB
RD
AN
D I
DA
LE
ND
ING
PR
OJ
EC
TS
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
17
T
ota
l A
viati
on
C
om
po
ne
nt
Afr
ica
Dem
ocr
atic
Rep
ub
lic o
f C
on
go
P15
30
85
Go
ma
Air
po
rt S
afet
y Im
pro
vem
ent
Pro
ject
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
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
44
.2
IBR
D
Acti
ve
Afr
ica
Tan
zan
ia
P05
5120
Tr
ansp
ort
Sec
tor
Sup
-p
ort
Pro
ject
R
ehab
ilita
tio
n a
nd
ext
ensi
on
of
regi
on
al a
ir-
po
rts
27
0.0
5
6.7
ID
A C
red
it
Clo
sed
Afr
ica
Tan
zan
ia
P10
3633
Se
con
d C
en
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
C
lose
d
Afr
ica
Ke
nya
P
1241
09
Tran
spo
rt S
ecto
r Su
p-
po
rt P
roje
ct
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 3
00
.0
27
.0
IDA
Cre
dit
A
ctive
Afr
ica
Ke
nya
P
1466
30
Tran
spo
rt S
ect
Sup
-p
ort
Pro
ject
- A
dd
i-ti
on
al F
inan
cin
g
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
65
.1
IDA
Cre
dit
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$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
17
T
ota
l A
viati
on
C
om
po
ne
nt
Afr
ica
Dem
ocr
atic
Rep
ub
lic o
f C
on
go
P09
25
37
Mu
lti-M
od
al
Tran
spo
rt
Imp
rove
tra
nsp
ort
co
nn
ecti
vity
an
d s
up
po
rt
eco
no
mic
inte
grati
on
in t
he
regi
on
2
55
.0
25
.5
IDA
Gra
nt
Acti
ve
Afr
ica
Cap
e V
erd
e P
1265
16
Cap
e V
erd
e -T
ran
spo
rt
Sect
or
Re
form
Pro
ject
In
stitu
tio
nal
cap
acit
y b
uild
ing,
tec
hn
ical
as-
sist
ance
, an
d s
up
po
rt o
f n
atio
nal
air
line
27
.0
2.1
ID
A C
red
it
Acti
ve
Afr
ica
Bu
rkin
a Fa
so
P12
0960
B
urk
ina
Faso
Do
nsi
n
Tran
spo
rt In
fras
tru
c-tu
re P
roje
ct
Tech
nic
al a
ssis
tan
ce f
or
new
Ou
agad
ou
gou
A
irp
ort
8
5.0
1
.7
IDA
Cre
dit
A
ctive
East
Asi
a an
d P
acifi
c V
anu
atu
P
1541
49
Pac
ific
Avi
atio
n In
vest
-m
ent
- V
anu
atu
Imp
rove
op
erati
on
al s
afet
y an
d o
vers
igh
t o
f in
tern
atio
nal
air
tra
nsp
ort
an
d a
sso
ciat
ed
in
fras
tru
ctu
re
59
.5
54
.7
IDA
Cre
dit
A
ctive
East
Asi
a an
d P
acifi
c V
anu
atu
P
1614
54
Pac
ific
Avi
atio
n In
vest
-m
ent
- V
anu
atu
Ad
di-
tio
nal
Fin
ance
Imp
rove
op
erati
on
al s
afet
y an
d o
vers
igh
t o
f in
tern
atio
nal
air
tra
nsp
ort
an
d a
sso
ciat
ed
in
fras
tru
ctu
re
14
.1
14
.1
IDA
Cre
dit
A
ctive
East
Asi
a an
d P
acifi
c Tu
valu
P
1289
40
Pac
ific
Avi
atio
n In
vest
-m
en
t -
Tuva
lu
Infr
astr
uct
ure
inve
stm
ent,
sec
tor
refo
rm a
nd
tr
ain
ing,
an
d s
tren
gth
enin
g ai
rpo
rt o
per
a-ti
on
s an
d m
anag
emen
t ca
pac
ity
11
.9
10
.3
IDA
Gra
nt
Acti
ve
IB
RD
AN
D I
DA
LE
ND
ING
PR
OJ
EC
TS
(c
on
tin
ue
d)
Re
gio
n
Co
un
try
Pro
ject
C
od
e P
roje
ct N
ame
De
scri
pti
on
of
Avi
atio
n C
om
po
-n
en
t
WG
B C
om
mit
men
t (M
illio
n U
S$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
17
T
ota
l A
viati
on
C
om
po
ne
nt
East
Asi
a
and
Pac
ific
Tuva
lu
P14
5310
P
acifi
c A
viati
on
Inve
st-
men
t -
Tuva
lu -
Ad
di-
tio
nal
Fin
anci
ng
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
and
Pac
ific
Tuva
lu
P15
7779
P
acifi
c A
viati
on
Inve
st-
men
t -
Tuva
lu -
Ad
di-
tio
nal
Fin
anci
ng
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
1.7
ID
A G
ran
t A
ctive
East
Asi
a
and
Pac
ific
Ton
ga
P12
8939
P
acifi
c A
viati
on
Inve
st-
me
nt
- 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
20
.9
IDA
Gra
nt
Acti
ve
East
Asi
a
and
Pac
ific
Ton
ga
P15
6018
P
acifi
c A
viati
on
Inve
st-
men
t -
Ton
ga -
Ad
di-
tio
nal
Fin
anci
ng
Ad
diti
on
al fi
nan
cin
g fo
r th
e To
nga
Avi
atio
n
Inve
stm
ent
Pro
ject
7
.3
5.7
ID
A G
ran
t A
ctive
East
Asi
a
and
Pac
ific
Ton
ga
P09
6931
To
nga
Tra
nsp
ort
Sec
-to
r C
on
solid
atio
n P
ro-
ject
Imp
rove
saf
ety
and
sec
uri
ty c
om
plia
nce
; p
rovi
de
tech
nic
al a
ssis
tan
ce t
o C
AA
5
.4
2.4
ID
A G
ran
t A
ctive
East
Asi
a
and
Pac
ific
Sam
oa
P14
3408
Sa
mo
a A
viati
on
In-
vest
men
t P
roje
ct
Imp
rove
op
erati
on
al s
afet
y an
d o
vers
igh
t 2
5.0
2
3.0
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$)
Typ
e
Stat
us
as o
f En
d o
f FY
20
17
T
ota
l A
viati
on
C
om
po
ne
nt
East
Asi
a an
d P
acifi
c Sa
mo
a P
157
24
1 P
acifi
c A
viati
on
Inve
st-
men
t -
Sam
oa
- A
dd
i-ti
on
al F
inan
cin
g
Ad
diti
on
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CABO VERDE
Cabo Verde Transport Sector Reform Pro-
ject (P126516)
The objective of the project, in the IDA amount of
US$ million, is to improve efficiency and manage-
ment 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. Making the right decision on TACV requires
strong political will and leadership given the sensi-
tivity of the company in Cabo Verde. Following a
request from the new Government, the World Bank
has conducted a mission to analyze the situation
of TACV in order to recommend the appropriate
way forward. The mission has developed several
restructuring options concerning domestic traffic
and international traffic. Follow-up activities are
underway to allow the Government to make an in-
formed decision on the future of TACV.
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 restore the airport’s runway origi-
nal length, rehabilitate the apron, existing passen-
ger and cargo terminals, and electrical system, as
well as supply a new low-cost control tower and
navigational equipment to upgrade air navigation.
The project will also include the construction of the
airport’s security fence and support airport rescue
and firefighting services.
The project will support the valorization of the
large quantity of lava rock removed from the air-
port through labor-intensive activities targeted to
communities living close to the airport. The project
will also complement a Japan-GFDRR grant sup-
porting the monitoring of volcano risks and
strengthening preparedness of the airport and sur-
rounding communities. The significance of the pro-
ject is evident – DRC’s landmass is almost as
large as the whole of Western Europe, therefore
transport remains key to in- creasing agriculture,
improving trade, supporting mining growth, over-
coming the economic and social barriers that iso-
late communities, and providing security through-
out the country.
Contact person is Mustapha Benmaamar
DEMOCRATIC REPUBLIC OF CONGO
Multi-Modal Transport Project
(P092537)
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$180 million additional financing IDA grant in
2013. The project’s main objectives are to (i) im-
prove transport connectivity in the DRC, (ii) to re-
store Société Nationale des Chemins de Fer du
Congo (National Railway Company of DRC,
SNCC) financial and operational viability, and (iii)
to strengthen transport state-owned enterprises
(SOEs) operational performance.
The project’s four main components include: (1)
SNCC recovery plan, (2) operational performance
strengthening and improved governance of the
sector, (3) international trade procedures simplifi-
cation, and (4) project management. Most of the
project financing (85%) go to the railway compo-
nent. The sub-component dedicated to aviation will
help DRC move towards compliance with interna-
tional safety and security standards through the
supply and installation of critical equipment for air
traffic control and airspace control. The sub-
component is financing (US$ 15 million): (i) the
procurement and installation of ADS-B surveillance
equipment by the National Airways Management
Agency/Regie des Voies Aeriennes in five airports
(RVA), the organization in charge of airports, (ii) a
new category II ILS/VOR/DME system for the capi-
tal’s international airport Kinshasa/N’Djili (FIH), (iii)
two studies on the development of airports in the
country (one on freight development 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 Agency, which is in
charge of overall regulation of the sector. (vi) a
recertification campaign for the five largest air-
lines.
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 and the study on secondary airports
are complete. The installation of the navigation as-
sistance systems (CNS/ATM and 5 ADS-B) is pro-
gressing. Landing assistance systems (ILS/DME)
are installed at N’Djili airport while the DVOR/
DME initially procured for Kinshasa airport will
eventually be installed at Kalemie airport. There
still remain areas of improvement for the reform of
governance in the aviation sector. Five of the larg-
est airlines in DRC seeking recertification initially
failed to provide the requested documentation.
Contact person is Mustapha Benmaamar
KENYA
Transport Sector Support Project (P124109)
A US$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 at Jomo Kenyatta International
Airport (JKIA) in August 2013 that destroyed the
only international arrival building, the Bank provid-
ed an additional financing component of US$60
million to help finance activities to restore the ca-
pacity of the international passenger terminal de-
stroyed in a fire at JKIA, strengthen KAA in disas-
ter preparedness and responsiveness at Kenyan
airports, and fill any unanticipated financing gaps.
Most of the emergency activities at JKIA following
the fire incident have either been completed or are
nearing completion.
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.
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.
The expansion of apron at JKIA and taxiways has
increased the capacity of parking space for air-
crafts by 50 percent, and expanded the capacity of
the runway. The construction of Terminal 4
(renamed T 1A) is completed and 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
TANZANIA
Transport Sector Support Project
(P055120)
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 also completed.
The feasibility study and detailed engineering de-
sign of eleven regional airports as well as the
preparation of the Civil Aviation Master Plan have
also been completed under the project.
Contact Person is Yonas Mchomvu at [email protected]
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 2,462 me-
ters to 3,022 meters long. Other works included
runway marking, the construction of a perimeter
access road, repair and provision of new aeronau-
tical 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 [email protected]
CHINA
Shangrao Sanquingshan Airport Project
(P123729)
A US$50 million IBRD commitment for the Shan-
grao Sanqingshan Airport Project was approved in
May 2013. The overall objective of the project is to
improve 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.
Component 1: The first component of the project
covers the airport infrastructure development and
includes the construction and installation of the
following: (a) airfield, runway, taxiway; (b) terminal
building; (c) air traffic control; (d) freight facility; (e)
supporting infrastructure facility, including fuel
storage farm, water supply, water supply, power
supply, fire stations, heating, storm/water manage-
ment, parking, fence; (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. The construction of the whole
airport is approaching to the end and the overall
acceptance by the Civil Aviation Administration of
China (CAAC) will follow. It is planned that the
Shangrao airport will allow several commercial air-
lines to connect to different domestic large cities.
Airport Acceptance: The regional bureau of CAAC
had the acceptance inspection for the completed
air-related infrastructure in Aug 2016. The Shan-
grao municipal construction had the acceptance
inspection on the non-airfield buildings and munici-
pal engineering works in Sep 2016. Certain recom-
mendations were provided by the inspections, and
the contractors are finalizing the civil works and
installation. Between 6 and 11 October 2016 the
flight inspection center of CAAC conducted an in-
spection for navigation equipment and flight proce-
dures. During the testing flight, the control tower
equipment was fully tested, as well as the runway
and lighting system. The testing result met the
CAAC’s standard and regulation.
Airport Operational Arrangement: The operational
arrangement for the airport has now been final-
ized, and the Jiangxi Airport Group, which is a sub
-company of the Beijing Capital Airport Group, has
signed an operating concession agreement with
the Shangrao Municipality to operate the Shangrao
airport. Jiangxi Airport Group established a sub-
company in Dec 2015, Shangrao Airport Operation
Company, to take over the operations of Shangrao
airport once the overall acceptance is completed.
Currently there are about 60 employees hired for
Shangrao Airport Operation Company, and they
are taking relevant trainings in the Shangrao air-
port. In addition to operating the airport, the Jiang-
xi Airport Group will assist Shangrao municipal
government and the PMO to obtain the necessary
approval and clearance from the civil aviation ad-
ministration authorities before the airport is ready
for operation.
Airline Service Agreement: The Shangrao Munici-
pality paid much effort on the establishment of air-
lines connecting Shangrao with other major cities
in China. The regional bureaus of the Civil Aviation
Administration of China (CAAC) have been con-
tacted, and the major airline companies have been
communicated. To date, Shangrao Municipality
has signed strategic cooperation agreements with
the Sichuan Airline and the China United Airline, to
create airlines connecting to Chengdu, Chongqing,
Beijing and Foshan. The official service contracts
will be signed after the final acceptance of the
Shangrao Airport. At the same time, the PMO
plans to contact the Shenzhen Airline in the near
future to secure the connection to Shenzhen, be-
cause there are already many existing travel de-
mands between Shangrao and Shenzhen due to
the economic activities between two cities.
Component 2: The second project component fi-
nances consultancy services, studies and training,
including advisory services to support the Project
Management Office (PMO) and Shangrao San-
qingshan Airport Company Limited (SSAC) on pro-
ject coordination and monitoring activities. Other
activities will include consultancy services to de-
velop airport operation model for SSAC and com-
pliance with regulations and international practic-
es.
The Shangrao PMO plans to organize a workshop
in Beijing/Shangrao on the topic of the experienc-
es and lessons learnt during the design and con-
struction of Green Airport covering planning, de-
sign, construction and operation. A new study on
the Shangrao Airport operational manual review
and optimization is newly added under the TA
component as to assist the Jiangxi Airport Group
to customize the standard operational manual to
the Shangrao city circumstances, in terms of sav-
ing energy, improving efficiency, tourism develop-
ment and local transport plan.
The project is well on track to achieve its project
development objectives. With the construction
largely completed, the focus of the project supervi-
sion has turned to operation arrangement, obtain-
ing the green building certificate and sharing of
green airport design experience more widely.
Contact person is Weimin Zhou 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$220 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.
Program contact person is Christopher Bennett at
KIRIBATI
Kiribati Aviation Investment Program
(P128938)
With an original IDA Grant commitment of
US$22.91 million, the project is entering its fifth
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. The project is making good
progress in several areas. The contracts for the
terminal works and the associated supervision ser-
vices have been signed and respective contractors
have mobilized. Specifications for the replacement
of the airport perimeter fence have now been
agreed upon and it is expected that the contractor
will mobilize before the end of the year. The re-
quest for bids for the London-CXI road has now
been launched. The only remaining major invest-
ment left to procure is the seawall to protect the
eastern end of the runway. The contract of the avi-
ation advisor has been concluded with considera-
ble progress achieved with regards to the develop-
ment of air service agreements, the CXI-Nadi sub-
sidy and upper air space issues and capacity
building activities with the Civil Aviation Authority
(CAA). The GoK is now receiving regular revenue
from the Safety and Security Levy collected by air-
lines such as Fiji Airways as part of the ticket
price.
Contact person is Pierre Graftieaux at
[email protected] and Nora Weisskopf at
nweisskopf @worldbank.org
SAMOA
Samoa Aviation Investment Program
(P143408)
The project development objective (PDO), which is
to improve operational safety and oversight of in-
ternational air transport and associated infrastruc-
ture, remains achievable. Faleolo International Air-
port has maintained all regulatory compliance re-
quirements throughout the project.
Subsequent to an initial IDA Grant of US$25.0 mil-
lion, the World Bank approved in June 2016 Addi-
tional Financing (IDA Credit US$16.62 million
equivalent), to scale up apron pavement expan-
sions and fuel hydrant extensions necessary to
integrate a new terminal building currently under
construction. The project is completing the third
year of implementation and is making reasonable
progress towards the development objectives.
Implementation of the AU$5 regional safety and
security levy for departing international passen-
gers has been achieved, representing a major poli-
cy achievement that will enable increased fiscal
resources towards safe and secure air transport.
Modernization of air traffic communications is un-
derway. Airfield Rescue and Fire Fighting (ARFF)
Category 9 outcomes will be exceeded, as the two
additional vehicles will enable Samoa Airport Au-
thority (SAA) to now meet Category 10 status. The
pavement rehabilitation works, and airfield ground
lighting and navigation aid packages are currently
scheduled to be completed one month prior to the
project closing date.
Contact person is Christopher De Serio at
TONGA
Tonga Aviation Investment Program
(P128939)
Subsequent to an original IDA Grant contribution
of US$27.21 million, the World Bank approved in
2016 a US$7.3 million Additional Finance. The
project is in the sixth year of implementation
schedule. The AU$5 Safety and Security Levy on
departing international passengers has been suc-
cessfully implemented and is being collected,
which represents a major policy achievement that
will result in increased fiscal resources towards
safer and more secure air transport operations.
Upgrading and rehabilitation of runway pavements
at both the Fua’amotu International Airport (TBU)
and the Vava’u International Airport (VAV) have
been completed in 2016.
The project continues to progress well, it is on
track to achieve its current development objec-
tives. The Tonga Airports Limited (TAL) is pro-
gressing with procurement of multiple investments
including Ha’apai terminal repairs (funded by TAL),
Vava’u terminal extension (funded by TAIP) and
Fua’amotu International Airport (TBU) control tow-
er and terminal upgrades (funded by TAIP). No
major issues with the investments were outlined by
TAL. The construction of the control tower is ex-
pected to take approximately 12 months.
Several other key activities have been completed:
(i) terminal upgrade, and commissioning of requi-
site security equipment on site at Vava’u to sup-
port regional operations; (ii) fencing repairs at Fu-
a’amotu; and (iii) a Training Needs Analysis with
budget available to the State for implementation.
Navigational aids and communications contract is
in place and the supply and installation is currently
ongoing. The contracts for the VSAT design, sup-
ply and installation are also in place and procured
as a regional good, with the installation of VSAT
equipment is not yet completed. A coordinator has
been supporting equipment and equipage needs,
in preparation of a regional rollout of ADS-B, also
procured as a regional activity, with the ADS-B in-
stallation is completed and awaiting commission-
ing.
A Regional study to develop the PASO Business
Development Plan and organizational restructure
has been completed, financed by PRIF, and an
increased use of PASO services has been facilitat-
ed 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.
Contact person is Julie Babinard at
[email protected] and Pierre Graftieaux at
TUVALU
Tuvalu Aviation Investment Program
(P128940)
With an IDA Grant contributions of US$11.85 mil-
lion, US$6.06 million and US$2.89 million, the pro-
ject is in the sixth year of implementation, with a
revised closing date of June 2018. 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.
Further, Tuvalu has taken the necessary institu-
tional steps for restructuring government depart-
ments with the separation of regulatory oversight
from airport management within the Ministry of
Communications and Transport.
The project is progressing well and is almost cer-
tain to achieve a satisfactory outcome and its pro-
ject development objectives. The runway and road
civil works are completed, fuel truck and fire tender
have been delivered and are in use, and naviga-
tion aids have been installed. There have been
some delays with the construction of the terminal
works due to shipping delays and inclement
weather, resulting in a revised expected comple-
tion date for the terminal. The GoTv is now receiv-
ing regular revenue from the Safety and Security
Levy as well as the higher departure tax, both col-
lected by Fiji Airways as part of the ticket price.
However, there have been a number of challenges
affecting the project, particularly with regards to
the runway and apron resurfacing. Since comple-
tion of the works, the newly resurfaced runway has
experienced a number of visible failures. An inde-
pendent investigation has identified that these fail-
ures are due to pressure build up under the run-
way caused by water infiltration exacerbated by
tidal and sea level impacts. A design consultancy
has been engaged to pilot a number of different
potential design solutions on the runway to test the
efficacy of the options in alleviating the pressure
under the runway. The outcome of the pilots will
inform the final designs.
Contact person is Nora Weisskopf at nweisskopf
@worldbank.org
VANUATU
Vanuatu Aviation Investment Program
(P154149)
The project is nearing the midpoint of the implemen-
tation cycle, and is now in the third year of implemen-
tation, with an original IDA Credit contribution of
US$59.5 million. A first Additional Finance for
US$14.1 million has been approved in 2017, and a
second Additional Finance is currently under prepa-
ration. The safety and security levy for international
departing passengers went into effect on 1 Septem-
ber 2017. With the mobilization of the contractor to
repair the runways at Bauerfield, Pekoa and White-
grass airports, the project implementation will be ac-
celerating. The key studies on the Aviation Sector
Plan and the Airports Master Plan are progressing
and will provide guidance to the sector.
The project Completed activities include the pave-
ment coring and deflection testing, as well as tempo-
rary remedial works to the runway realized in order to
ensure safe operations at Bauerfield international air-
port, in Port Vila. A desktop review has been com-
pleted to confirm the relevancy of the project invest-
ments for future aircraft operating types. Procure-
ment of two airfield rescue and firefighting (ARFF)
vehicles is awarded which will lead to upgrading the
capability of the ARFF compliance to achieve Airport
Category 8. ADS-B ground stations have been pro-
cured and the VSAT design completed; VSAT hard-
ware contract being finalized. The design of the reha-
bilitation of Bauerfield is completed, and PRIF funds
have been made available to the state in order to fa-
cilitate the use of PASO services.
Contact person is Christopher Bennett at cben-
[email protected] and Christopher De Serio at
PACIFIC ISLANDS
Pacific Aviation Safety Office (PASO)
Reform Project (P145057)
The PASO Reform project, which is entering its
fifth year of the original implementation timeline,
continues to successfully support aviation safety
and security oversight in the Pacific. The project is
focused around three components, namely: (i)
transitional management and support for PASO,
comprising technical assistance activities that fa-
cilitate implementation of its newly adopted busi-
ness plan; (ii) the establishment of a pool of re-
gional aviation experts available to PASO member
states to advise on aviation safety and security
regulatory matters; and (iii) the establishment of
appropriate quality assurance and information
management systems.
Key achievements are:
A. The PASO Council has endorsed the recom-
mendation of the Financial Management and
Sustainability Analysis and are seeking Minis-
terial approval to implement the proposed re-
gional levy. An institutional specialist familiar
with executive management and the aviation
sector has evaluated the organizational gov-
ernance structure and PASO management will
begin to implement key recommendations. Dia-
logue with Vanuatu the Host State Agreement
continues with PASO management.
B. The register of inspectors continues to provide
expert advice to regulatory authorities, with the
technical specialists on the registry implement-
ing State’s agreed annual work plans.
C. The Quality Management activity has devel-
oped key policies and procedures related to
organizational staffing and operational direc-
tives.
D. A new Component was approved in a January
2017 project restructuring and additional fi-
nancing from the Pacific Region Infrastructure
Facility was approved for Very Small Aperture
Terminal (VSAT) installations in Cook Islands
and Niue. Implementation of the related activi-
ties is underway and is expected to be com-
pleted in 2018.
Contact person is Christopher De Serio 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, a passenger terminal, and the acquisi-
tion and installation of aviation control, rescue and
firefighting equipment.
The current state of the project progress is that
civil works were procured and the contract signed
in 2017. The supervision selection was launched
resulting in the selection of a consulting firm which
is about to be contracted, with works beginning
once supervision is in place. Also, a firefighting
truck has been procured and contracted with deliv-
ery at the end of 2017.
The revised deadline of the project’s Bank financ-
ing is July 2018. The new 1,500 meter runway has
been inaugurated on 15 November 2016 by presi-
dent Evo Morales. Works were executed with a
direct financing of the Department’s Government.
Contact person is Gylfi Palsson 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, has
been primarily supporting the rehabilitation and ex-
pansion of the Terminal Building 2 (TB2) at Cairo In-
ternational Airport, with a focus on enhancing the ca-
pacity and the quality of services of the airport
(component 1 of the project). The component 2 con-
sists of five studies of technical assistance on various
topics. The project has been closed in FY17.
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.
The project has completed the construction and
testing of TB2. On 28 September 2016, the airport
operated two airlines in a soft opening. Munich Air-
port has been selected to be the terminal operator
for TB2 and the interfaces with TB3.
Contact person is Olivier Le Ber at
People’s Republic of China
A World Bank mission travelled to China from 3 to
12 April 2017. The World Bank has financed the
construction of the new Shangrao Sanquingshan
Airport in the northeastern Jiangxi province. The
objective was to improve airline connectivity,
which would support economic development also
through tourism. Furthermore, new airport at
Shangrao was designed to become a “green air-
port”, which is energy efficient and therefore ad-
dresses Climate Change. The mission’s objective
was to review the progress made in the imple-
mentation of the project, discuss and consider the
measures of rendering the airport a “green infra-
structure”, and to prepare the Green Airport Work-
shop and Carbon Accreditation process.
The project was originally approved in May 2013,
and the construction of the new Shangrao San-
quingshan Airport had well progressed, with the
completion reached recently. The airport design
contains several features to lower energy con-
sumption and thus implement a “green” airport,
i.e. energy efficient. For example, the design of
the main terminal allows natural daylight to illumi-
nate most of the building without energy con-
sumption. Furthermore, heating and cooling is
supported by a geothermal installation, which al-
lows lowering energy consumption for hearing by
40%, and for cooling by 30%. Airport is also
equipped with a water treatment system, and dur-
ing its construction, a special emphasize was
made on the usage of environmentally friendly
materials.
In order to capture and disseminate knowledge
and experiences with the construction and opera-
tion of a green airport, the World Bank project al-
so finances a study on the project. The dissemi-
nation of information about the Shangrao Airport
serves to communicate with other airports to ex-
change expertise and specific knowledge, with the
further objective of helping identifying future air-
port projects which aim to replicate the green air
port concept done at Shangrao Airport, which is
committed to attain Chinese energy efficiency cer-
tification for buildings.
Contact person is Charles Schlumberger at
Democratic Republic Of The Congo
A World Bank mission travelled to Kinshasa and
Goma, DRC, from 27 May to 17 June 2017. In
DRC the supervision mission focused on the pro-
gress of the Goma Airport Project, which in-
cludes including the CAA capacity building work-
shop of ICAO. In Goma, the construction phase
for the rehabilitation of the runway was formally
initiated on 02 May 2017.
At the time of the mission the contractor did not
yet commence the works. The construction su-
pervision firm was present, and the mission dis-
cussed various elements of the works, including
the construction of the control tower, and the re-
habilitation of the tarmac. A central issue has
been the completion of the drainage system of
the airport, which the project is financing. The
challenge for the drainage system is to avoid that
it will become the sewer system of the surround-
ing buildings, and as such an environmental
challenge. Finally, the objective of certifying the
airport to ICAO standards has been discussed
with the ICAO’s expert. The challenge for
Goma’s certification is that it will need to be done
by filing several differences to ICAO Standards
and Recommended Practices. The World Bank’s
aviation team has been studying this issue in or-
der to identify which mitigation measures will be
necessary, and will work with ICAO to achieve
this important objective. Finally, the issue of a
possible PPP solution for the rehabilitation of the
airport terminal was not examined during this
mission, but was deferred to the next supervision
mission.
In Kinshasa the mission participated in the meeting
of the Steering Committee of the capacity building
component, which is executed by ICAO. Overall the
technical assistance has made good progress, with
a few areas deserving further fucus: (i) support was
provided to the AAC (Civil Aviation Authority) for
the certification of two operators (Congo Airways
and FlyCAA); (ii) the first phase of capacity building
needs assessment was completed; (iii) several in-
spectors were trained in Personnel Licensing, Air-
craft Operations, and Airworthiness; and (iv) a fol-
low-up mission to the recent USOAP audit support-
ed AAC in correcting several findings in various do-
mains.
Major next steps include (i) the follow-up with the
design and supervision consultants to track the
general progress and the final approved design of
the control tower and tarmac; (ii) discussion with
ICAO on the final report of the Steering Committee
meeting for the ICAO capacity building project com-
ponent; and (iii) Review of safeguards issues in
connection of the drainage system.
Contact person is Charles Schlumberger at
Kenya
A World Bank mission was held in Nairobi, Kenya,
from 27 May to 17 June 2017. In Nairobi the su-
pervision mission of the Aviation Modernization
Project (P156971) focused on airport infrastructure
issues, including the green airport strategy, a cru-
cial item in World Bank’s financed projects. The
mission met with the design consultant and dis-
cussed the implementation of the design consul-
tancy, which included various refinements to terms
-of-reference in order to include provisions for the
preparation of the Airport Carbon Certification.
In order the learn about Best Practice of Airport
Environmental Management and Airport Carbon
Certification, the World Bank has been coordinat-
ing a workshop for the Kenyan Airport Authorities
and Bank project staff at Athens International Air-
port (first airport to receive ACI Carbon Accredita-
tion). The workshop’s focus has been on climate
change-related issues, including Airport Carbon
Accreditation, noise, waste, water, air quality, wild-
life, Environmental Management System, commu-
nity relations, and among others, with the findings
directly relevant and applicable for the Carbon
Certification of Jomo Kenyatta International Air-
port.
Contact person is Charles Schlumberger at
IFC Air Transport Projects: The IFC provides financing to private sector
companies and has traditionally financed air carriers and airport infrastructure
projects.
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tern
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e
AFRICA: AKFED Aviation (27048)
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 US$25 million to
AKFED for on-lending to its three airlines: Air
Burkina, Air Mali and Air Uganda. This allows
AKFED to consolidate all of the division’s airlines
and aviation activities and optimize routing, syner-
gies and overall effectiveness across the group ’s
airline operations.
Loan proceeds will be used to fund fleet acquisi-
tion cost (introduction of nine refurbished MD-87
and two MD-83 aircraft) and other airline develop-
ment costs including training of crews and engi-
neers, purchase of spare parts, and improving
maintenance 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 (32546)
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$36.03
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 (32061)
The project, which was approved in March 2013,
provides financing of US$7 million to International
Aircraft Services (IAS) for the acquisition of up to
three secondhand Dauphin N3 helicopters by IAS.
The helicopters are to 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
(31969)
The IFC is supporting the development of a termi-
nal at Zagreb International Airport as part of a
Public Private Partnership (PPP). The new
US$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 US$72.65 million to the
project, including a loan of up to US$47 million
and an equity investment of nearly US$26 million.
The concession includes financing, design, and
construction of the terminal, along with airport op-
eration 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. An average of 400 new
jobs are expected to be created during construc-
tion, and up to 700 at peak. For the first time in
Croatia private firms involved in a transport con-
cession project have assumed passenger volume
risks, enabling the country to upgrade essential
infrastructure without adding a burden to state fi-
nances.
KENYA: Kenya Airways Expansion Plan
(31650)
Kenya Airways Ltd. (KQ), the national 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 net-
work 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 crit-
ical mass and achieved a solid financial position,
KQ finds itself well positioned to capitalize on the
growth prospects and opportunities that the Afri-
can region and the international market 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.
Contact person for all IFC Investment projects is
Pierre Pozzo di Borgo 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
advisory services are private sector participation in
airports 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 4.1 billion in 2017, and more than one-
third in value of all merchandise and goods were
air freighted – Public-Private-Partnerships (PPPs)
in airport infrastructure will grow to meet invest-
ment 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 Airports
PROJECT NAME COUNTRY YEAR MANDATE/RESULT
Samoa Airline JV Samoa 2017 JV Options Analysis
Jacksons Airport Papua New Guinea 2017 Strategic Options Analysis
Clark Airport Philippines 2016-ongoing Due Diligence ongoing
Nepal Airports Nepal 2016-ongoing Strategic Assessment Ongoing
Jamaica Airports Jamaica 2011-ongoing RFP Process Ongoing
Jeddah Airport Saudi Arabia 2016 Due Diligence / Project Structuring /
Tender process
Taif Airport Saudi Arabia 2016 Due Diligence / Project Structuring
Saint Lucia Airport Saint Lucia 2016 Due Diligence / Project Structuring
Croatia Airlines Croatia 2015 Strategic Partnership analysis
Brazilian Airports Brazil 2014
Galeao and Confins Airports success-
fully awarded to Changi and Zurich
Airport led consortiums respectively
Dili Airport East Timor 2014 Feasibility Study Completed
Madinah Airport Saudi Arabia 2012 Successfully awarded to TAV, Saudi
Oger, Al Rajhi consortium
Male Airport Maldives 2010 Successfully awarded to MAHB —
GMR
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)
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 Govt.
Air Tanzania Tanzania 2002 49% sold to SAA
Kenya Airways Kenya 1996 76% sold to KLM, financial investors
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
work stream. 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$7.9 billion, and US$ 2 billion 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$750 million, and US$1.2 billion will be invested
over the concession term.
Contact persons for all IFC air transport advisory
services projects are Ramatou Magagi at
[email protected] and Alexandre Leigh at
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 an important share 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 examples of projects
undertaken by MIGA 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
KNOWLEDGE SHARING:
THE GLOBAL MARKET-BASED
MEASURES FOR AVIATION
On 07 December 2016, the International
Aviation Day, the Air Transport Community
of Practice (ATCOP) hosted a Brown Bag
Lunch (BBL) in cooperation with the Cli-
mate Change Cross Cutting Solutions Area
(CCSA) on the topic of the Global Market-
Based Measure for Aviation (GMBM).
A historic agreement was reached to miti-
gate international aviation emissions at the
39th Assembly of the International Civil Avi-
ation Organization (ICAO) on October 6,
2016. The GMBM known as Carbon Offset-
ting and Reduction Scheme for Internation-
al Aviation (CORSIA) is designed to com-
plement the basket of mitigation measures
the air transport community is already pur-
suing to reduce CO2 emissions from inter-
national aviation activities. Under the
agreement, countries (and/or airlines) will
have to purchase carbon offsets to com-
pensate for any increase in carbon emis-
sions from international flights starting in
2020. Aviation currently represents approx-
imately 2% of worldwide emissions - as
much as the 7th largest emitter - a number
anticipated to rise exponentially by 2050,
and today the sector is not regulated under
international climate agreements.
The Transport GP in collaboration with the
Climate Change CCSA has already started
discussions with the ICAO Secretariat to
build a partnership that would provide tech-
nical and financial assistance to World
Bank Group (WBG) client countries to build
the necessary carbon market infrastructure
to comply with the CORSIA. The BBL was
well-participated and generated a fruitful
discussion about the agreement, its poten-
tial implications and opportunities for WBG
engagement.
Jose Luis Irigoyen, Director of the
Transport & ICT Global Practice (T&I)
opened the BBL with a few words to high-
light the prioritization of the Transport sec-
tor in the context of Climate Change and a
renewed focus on policies. Tanguy de
Bienassis and Eduardo Ferreira of the Cli-
mate CCSA then provided an overview of
the historic agreement and presented the
World Bank’s proposed Capacity Building
Initiative to help WBG’s client countries to
get ready to comply with CORSIA and to
raise their climate ambitions and invest in
sustainable aviation.
The two guest speakers, Nancy Young of
Airlines for America and Carl Burleson of
the US Federal Aviation Administration,
shared their perspectives on the topic.
From the US regulator’s standpoint, Bur-
leson highlighted that underpinning the
agreement, both industry and regulators
share a mutual interest in having one ap-
proach to carbon offsetting and a system
that is simple to understand and can be
factored into business plans. He also ex-
pressed his support and the critical need
for providing capacity building to develop-
ing states and insisted that the World Bank
had a key role to play. Young emphasized
that CORSIA is a “gap filler” in the basket
of measures to keep aviation emissions at
the 2020 level. At the 2050 horizon, the
ambition is to reduce emissions through the
development of new aircraft technology,
sustainable alternative fuels and improve-
ment in infrastructure and operations.
Overall there is broad positive reception on
the ICAO outcome from the industry.
As part of the Transport and ICT Knowledge and
Learning Form 2017, an Air Transport Workshop was
held on 27 February 2017. The objective was to up-
date transport staff on three themes of the air
transport sector:
1. Air Transport Financing by the Bank: Charles E.
Schlumberger, outlined the current air transport port-
folio of the WBG, and talked about the kind of pro-
jects (investment, T/A, capacity building).
Pierre A. Pozzo di Borgo, outlined his experience in
private air transport sector projects (airports and air-
lines) in client countries, with a special focus on Afri-
ca. The challenge in Africa is the relatively small mar-
ket for air services, and the high associated cost of
the sector. In addition, several countries want to oper-
ate their state-owned carriers, and keep protecting
them against competition. Another issue is the fact
that several states are planning new airports with the
objective to become a hub, while there was no case
to justify this. There are therefore, even though the
need for better air services in Africa exists, not many
private sector air transport projects in Africa that
could bear fruits.
Lincoln Flor presented financing of airport Private-
Public Partnerships in Latin America. He explained
that several airport PPP projects were done in the
region in the past years, but the main partners are
regional MFIs. While the WBG had only participated
in eight small PPP deals in LAC between 1990 and
2015, there was still potential for IDRB or IDA to fill
some financing gap in pending airport PPP.
2. Climate Change and Aviation: Shomik Mehndiratta,
moderated the session on Climate Change and Avia-
tion, which was co-organized with the Carbon Fi-
nance Group of the WB.
Dr. Lourdes Maurice, Executive Director of the Office
of Environment & Energy, US FAA, outlined the
agreement reached at ICAO on the Carbon offsetting
and Reduction Scheme for International Aviation
(CORSIA). She explained that ICAO is working to de-
velop Standards And Recommended Practices
(SARPs) that the U.S. and other Member States will
need to implement into national law. The challenge is
timing, and the need for many emerging countries to
develop capacities to implement CORSIA. Here the
WBG can play an important role by supporting its cli-
ent countries on CORSIA.
Eduardo Ferreira acknowledged the need to support
client countries in capacity building. The objective
was to leverage existing initiatives from the World
Bank to provide capacity building and channel finan-
cial assistance to developing countries for a success-
ful and ambitious implementation of the CORSIA.
3. Unmanned Aerial Systems (UAS): Edward Ander-
son presented activities with UAS the Bank was con-
ducting in various projects. For the time being, these
were concentrated on mapping and visualization of
disaster areas, primarily in Africa. The Bank was also
providing technical assistance to client countries for
the application of UAS. Another application that the
Bank was considering is the project of the Rwanda
Drone Hubs, which allow the transportation of small
cargo, such as blood samples or medicine. There are
many more applications for potential Bank use, in-
cluding taking drones for preparation or supervision
of projects. Finally, GSURR has prepared the first
draft position paper for Unmanned Aerial Vehicles
(UAV) Technology. ATCOP and GSURR have
agreed to co-operate on the development of applica-
tions, technical support, and guidelines on UAS.
Christina Engh, UASolutions Group, provided an in-
teresting analysis on who the application of UAS can
support the WBG objectives to end extreme poverty,
promote shared prosperity, and to support the global
sustainable development agenda. These include (i)
the transportation of goods, (ii) improve the global
food supply chain, (iii) create opportunities for eco-
nomic growth and equity, and (iv) address the refu-
gee crisis by e.g. saving migrants at sea .
Mark Gibson, Senior Advisor UAS, FAA, outlined the
US efforts to regulate UAS. UAS needed to be regu-
lated for various reasons, such as safety and securi-
ty. Small recreational drones, for example, must now
be registered with the FAA. The regulation of com-
mercial UAS had initially well progress, but one of the
current challenges are security considerations. In
t6hat context it was important that countries coordi-
nate the regulatory efforts with international organiza-
tions . The US FAA can provide certain support, as its
regulation has progressed fairly well.
KNOWLEDGE SHARING: AIR TRANSPORT WORKSHOP AND LEARNING EVENT
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 193,686 flights booked
by American Express for Bank staff in Fis-
cal Year 2017 (from HQ), representing a
decrease in traveling by 0.4% compared
to Fiscal Year 2016. The majority of flights
booked were with airlines considered to
be “Good to fly”. Note: This data does not
capture trips arranged in the regions.
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
[email protected] and Ndeye
Anna Ba at [email protected]
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
ACI-WBG ANNUAL AVIATION
SYMPOSIUM
The WBG continues to strengthen its part-
nership with Airports Council International
(ACI). In April 2017, the two organizations
joined forces to host the third ACI-WBG
Aviation Symposium, held annually in Lon-
don prior to ACI’s Annual Finance and Eco-
nomics Conference, of which WBG is a
supporting partner going forward.
The WBG delegation was led by Dr.
Charles E. Schlumberger, Lead Air
Transport Specialist at The World Bank,
supported by Aldo Giovannitti, Aviation
Specialist at The World Bank, and included
World Bank and IFC staff participation.
WBG staff highlighted the Bank’s role in
aviation finance and development, focusing
on the priority of improving air transport in
small island nations, landlocked developing
countries and many parts of Africa
(especially West Africa), including needed
policy and regulatory reforms and facilita-
tion of private investments.
The objective of this annual event with the
air transport industry is to take stock of the
main issues, challenges and opportunities
the industry is facing. With participants ’ af-
filiations ranging from airport operators, fi-
nancial institutions, regulators, rating agen-
cies and advisory firms, the ACI-World
Bank Aviation Symposium and the ACI Air-
port Economics & Finance Conference &
Exhibition has been again a unique occa-
sion where the industry committed to sit to-
gether to exchange knowledge, network,
share analyses and set the course for the
upcoming years.
Following the event, a White Paper was
prepared by Aldo Giovannitti, Aviation Spe-
cialist at The World Bank. The paper sum-
marizes the discussions that took place
during the 3rd ACI-World Bank Aviation
Symposium and the 9th ACI Airport Eco-
nomics & Finance Conference.
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.
From 25 - 30 September 2016, CES led a mission
to represent the WBG at the 39th Assembly of
ICAO “A39”, and to attend the ICAO World Avi-
ation Forum (IWAF) which preceded the A39.
The main objective of the IWAF was to discuss
the Aviation Partnerships for Sustainable Devel-
opment. The importance of safe, secure, and
efficient air transport for sustainable develop-
ment was underscored. CES participated as
speaker and elaborated on the funding mecha-
nism for aviation development of the WBG.
During the A39, the principle of Global Market-
Based Measure (GMBM) was adopted The dur-
ing the preceding discussions, the WB presented
working paper WP/248 which urged States to
adopt the GMBM as described in WP/52. The
Carbon Offsetting and Reduction Scheme for
International Aviation (CORSIA) was subse-
quently adopted on 6 October 2016.
During the seventh session of the Executive
Committee, the World Bank’s working paper
WP/240 was presented. The paper outlines the
WBG’s support in the air transport sector and in
the achievement of the SDGs. The paper recog-
nizes the importance of elevating the priority of
the aviation sector in the national development
plans of Member States, and urges Member
States to consider the inclusion of the air
transport sector in their development strategies
through their respective Country Partnership
Frameworks (CPFs) with the WBG.
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.
One example of an Angel Flight mission, which
was carried out by Charles E. Schlumberger, Lead
Air Transport Specialist and Daniel M. Saslavsky,
Transport Economist at the World Bank, was a
flight to transport one year old Norien, who is suf-
fering from Arthrogryposis Mulitplex Congenita,
and his parents from her home in Lynchburg, Vir-
ginia, to Philadelphia, Pennsylvania, for treatment
at the Shriner's Hospital for Children.
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
Air Transportation will continue its strong
growth over the coming years. According to
IATA, 7.8 billion passengers will travel in
2036, a near doubling of the 4 billion air
travelers expected that flew in 2017. IATA’s
prediction is based on a 3.6% average
Compound Annual Growth Rate (CAGR)
over the next two decades. The biggest
driver of demand will be the Asia-Pacific
region, where more than half the new pas-
sengers are sourced. Its growth rate of
4.6% will generate 2.1 billion annual pas-
sengers by 2036, creating an Asia-Pacific
market size of 3.5 billion.
However, the strongest growth rates are
expected in Africa, which will grow by 5.9%.
By 2036, Africa will need to accommodate
an additional 274 million passengers a year
for a total market of 400 million passengers.
This is followed by the Middle East, which
will grow by 5.0%, resulting in an additional
322 million passengers a year, reaching a
total market size of 517 million passengers.
Latin American markets, finally, will grow by
4.2%, serving 757 million passengers by
2036, an increase of 421 million passengers
annually compared to today.
The strong growth of air transportation in
emerging and developing will serve as cata-
lyst for economic development. However,
expansion of these markets will depend on
several factors. First, many lesser devel-
oped states must adjust their policies in
terms of access to markets (liberalization),
taxation of the sector, and facilitation of pri-
vate and/or foreign investment. Second,
large improvements and expansion of air-
port and air traffic management infrastruc-
ture will be necessary. In many poorer
countries, this often requires non-
governmental sources of financing, as pub-
lic funding is limited. Third, the expansion of
air services must be safe, secure, and sus-
tainable. Complying with international stand-
ards in terms of safety and security are a
prerequisite for sustainable growth. In addi-
tion, environmental sustainability has be-
come a global initiative, in which emerging
countries will need to participate.
Given the above-mentioned growth and
economic opportunities for emerging coun-
tries, but also given the stated challenges,
the WBG will continue to support the devel-
opment of air transportation in selected cli-
ent countries. However, the development
approach will primarily aim at policy and the
mobilization of private funding for the ex-
pansion of necessary infrastructure. By ap-
plying the principles of the “Cascade Ap-
proach”, as discussed in the introduction of
this report, the WBG will help clients mobi-
lizing the private sector, for example by es-
tablishing PPPs for major infrastructure pro-
jects. This may continue decreasing the
WBG air transport portfolio decline on in
terms of IBRD/IDA financing, while IFC
could increase its activities on advisory ser-
vices and investment financing of private
entities. In poorer countries, where PPPs
are difficult or too early, the WBG will con-
tinue to support investments for selective air
transport infrastructure. The main regional
focus continues to be on African countries,
and on several Pacific Island States, which
are modernizing their aviation infrastructure.
To address the environmental challenges of
aviation, given it is the strongest growing
emitter of greenhouse gases, ICAO adopted
two resolutions at its 39th Assembly. The
first is an endorsement of a basket of
measures, including technology, operations,
and alternative fuels, the second concerns
market-based measures, which include the
Carbon Offsetting and Reduction Scheme
for International Aviation. For implementa-
tion of these measures, states need to pre-
pare action plans. The WBG is supporting
client countries in capacity building for the
implementation of these plans. Furthermore,
the WBG provides carbon off-set solutions
by its Carbon Finance unit.
The focus of research continues to be on air
transport development in Africa. An assess-
ment of infrastructure development needs,
as well as the question on how to best ad-
dress certain policy issues, such as high
charges or taxes on the sector or restricting
access to protect a struggling national carri-
er, will be researched and discussed in co-
operation with the African Development
Bank and ECOWAS.
Finally, maintaining or developing produc-
tive partnerships with the air transport in-
dustry, as well as with bilateral and interna-
tional partners, as it is essential for achiev-
ing the development objectives. The WBG
has partnerships in air transportation with
ICAO, ACI, IATA, as well as with multina-
tional and regional development banks.
Photography Credits:
• Page 33, JeppView Electronic Chart Viewer, in cooperation with Jeppesen a Boeing Company.
• Page 47, Kenya Airway’s Dreamliner, Kenya Airways official website.
• All other images belong to WBG or contributors to this report.
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