AIR TRANSPORT ANNUAL REPORT 2021 Transport Global Practice                 TABLE OF CONTENTS FOREWORD 2 ABBREVIATIONS 3 ACKNOWLEDGEMENTS 4 OVERVIEW 5 PORTFOLIO 7 IBRD & IDA PROJECTS 9 IFC PROJECTS 63 MIGA PROJECTS 75 KNOWLEDGE 77 INTERNAL SERVICES 85 EXTERNAL RELATIONS 86 COMMUNITY SERVICE 87 OUTLOOK 88     FINANCING SAFE, AFFORDABLE, AND SUSTAINABLE AIR TRANSPORT WITH PRIVATE SECTOR PARTICIPATION After the devastating impact of the COVID-19 pandemic during FY20, air transportation initiated in FY21 the process of a slow, but uneven recovery around the world. However, international passenger demand in 2021 remained 75.5% below 2019 levels, while capacity (ASK) declined to 65.3% and the global load factor fell 24.0 percentage points to 58.0% compared to 2019. The domestic markets experienced the strongest improvements in 2021 resulting in a recovery to only 28.2% below their 2019 level, primarily in the US and in China. In terms of regional differences, international traffic in the Asia-Pacific shrank 93.2% in 2021 compared to 2019, which was the deepest decline for any region. In comparison to 2019, ca- pacity was down 84.9%, and the load factor fell 44.3 percentage points to 36.5%. This was fol- lowed by the passenger volumes in the Middle East in 2021, which remained 71.6% below 2019. Their annual capacity fell 57.7%, and their load factor dropped 25.1 percentage points to 51.1%. European markets suffered a 67.6% traffic decline in 2021 versus 2019, while capacity was reduced to 57.4% with a load factor decrease of 20.6 percentage points to 65.0%. Latin American airlines experienced a 66.9% traffic decline compared to 2019 and capacity fell 62.2%, with a load factor dropping 10.2 percentage points to 72.6%, albeit the highest among all regions. North American airlines’ traffic declined by 65.6% compared to 2019, capacity dropped 52.0%, and their load factor sank 23.8 percentage points to 60.2%. Finally, the best performance among all regions was achieved by African carriers, which experienced a drop in international traffic of 65.2% compared to 2019, while capacity was reduced by 56.7%, with load factors shrinking by 14.1 percentage points to 57.3%. However, in terms of passenger traffic market shares by region, North America leads with 32.6%, followed by Asia-Pacific at 27.5%, Europe at 24.9%, the Middle East at 6.5%, Latin America at 6.5%, and Africa at 1.9%. In con- clusion, the impact of COVID-19 resulted in a 40% decline in airline capacity in 2021, with 2.2 billion fewer passengers flown than in 2019, creating revenue losses of USD 324 billion and a net loss of USD 51.8 billion .  The prolonged impact of the pandemic drove many airlines into a difficult financial situation and, without state aid, to bankruptcy and possible liquidation. By 2021, over USD 200 billion have been provided to airlines in 87 countries. While the largest share went to US carriers (USD 93 billion), followed by Europe (USD 55 billion), and Asia-Pacific (USD 43 billion), many operators in developing countries received little or no support. However, some developing countries, which provided aid to their airlines, often did this at a high public expense. For example, Fiji granted financial aid in 2021 representing 7.27% of its GDP, followed by Cape Verde (7.04%), Mauritius (4.63%), and Vanuatu (2.47%). Of state aid provided globally since the start of the pandemic, 48% consisted of debt and 52% of grants and capital injections. After a sharp drop in cargo ton-kilometers (CTKs) in the first quarter of 2020, the global air car- go market recovered well in 2021, with CTKs approximately 5% higher than the pre-crisis peak in August 2018. The demand for air cargo was initially driven by protective personal equipment and medications, followed by challenges in the ocean-shipping supply chain and a strong growth in e-commerce sales. Furthermore, capacity of air cargo fell with the number of ground- ed passenger planes, which belly cargo typically accounts for 54% of world air cargo capacity. Finally, the gap between supply and demand resulted in air cargo yields rising by 40% in 2020 and 15% in 2021. While cargo yields may drop over the next few years, they will remain above 2019 levels due to a continuing gap between supply and demand, as long as the global econo- my and world trade recover. 1 | AIR TRANSPORT ANNUAL REPORT     Due to the COVID –19 The prolonged impact of the COVID-19 pandem- ic continues to pose a serious challenge for pandemic, passenger FOREWORD many WBG client countries, which are facing demand in 2021 re- continued economic hardship in many sectors of their economy. However, in many regions, con- mained 75.5% below nectivity by air remains key for economic devel- opment and social integration, as land or sea 2019 levels […] over transportation is not suitable, especially over USD 200 billion have longer distances. This has encouraged some governments in developing countries to heavily been provided to air- support their national airlines, and in some cas- es, even create new state-owned airlines. This is lines in 87 countries. somewhat understandable, given the strong sup- port by developed countries to their airlines and the fact that well over 90% of state aid went to carriers in developed countries. However, public finances in many developing and emerging states face many basic demands, such as health or education, which should be served as a priority, while investment needs in aviation can consume considerable funds. Participation of the private sector in aviation must therefore be supported and fostered to an even greater extent. However, given that there are currently many sectors that would wel- come investors, the private sector may be more selective as aviation has tradi- tionally represented a higher risk than other sectors. Given this difficult backdrop, states in emerging and developing economies should strive to rebuild better air transportation sectors. This means that their aviation industry should hinge on a sustainable framework, which includes safe- ty, security, the environment, affordability, and good governance in terms of ad- hering to international standards and principles. Only this will enable the sector to provide a positive economic and social impact by establishing and maintain- ing domestic, regional, and global connectivity. The 17 th edition of the World Bank Group (WBG) Air Transport Annual Report summarizes the current portfolio of activities being provided to support emerg- ing and developing countries in the development of air transportation, highlight- ing some of the initiatives in greater detail. After several years of a slightly de- clining portfolio, which was primarily due to the fact that many client countries profited from a favorable investment climate for the private sector, the overall air transport portfolio increased by nearly 10% in FY21 to USD 934 million. The strongest increase of 12.8% to USD 561 million was achieved by IFC, which represents a strong case of increased private sector engagement in air trans- portation supported by the WBG. The portfolio of IDA increased by 6.14% to 329 million, while the exposure at IBRD remained the same. The WBG will continue to support our clients in rebuilding their air transport sectors by responding with investment projects where warranted and by provid- ing non-lending technical assistance, such as adviso- ry services and efforts to facilitate the mobilization of private capital for air transport development. Dr. Charles E. Schlumberger  We look forward to supporting our clients in 2022 in Lead Air Transport Specialist   addressing their current development challenges. The World Bank  2 | AIR TRANSPORT ANNUAL REPORT     ABBREVIATIONS ACI ADS-B/C AF AGL AOC ARFF ATC Airports Council International Automatic Dependent Surveillance – Broadcast/Contract Additional Financing Airfield Ground Lighting Air Operator Certificate Airfield Rescue and Fire Fighting Air Traffic Control MOIID MOTCA MPA Ministry of Infrastructure Development, Public Utilities, Energy, Transportation and Implementation Ministry of Tourism and Civil Aviation Multiphase Programmatic Approach ATM Air Traffic Management MWTI Ministry of Works, Transport and AVSA Aviation Solutions Area Infrastructure BOT Build-Operate-Transfer NCHM Center for Hydrology and Meteorology BOO Build-Own-Operate NDMA National Disaster Management Authority BOOT Build-Own-Operate-Transfer OFNAC National Office of Civil Aviation BTO Build-Transfer-Operate OHS Occupational Health and Safety CAA Civil Aviation Authority OPS Flight Operations CAD Canadian Dollar OROA Ouadi Rime and Ouadi Achim Faunal CAP Corrective Action Plan Reserve CARs Central Asia Regional Links PA Protected Areas Program PASO Pacific Aviation Safety Office CEM Country Economic Memorandum PAIP Pacific Aviation Investment Program CERC Contingent Emergency Response PDM Pakistan Meteorological Department Component PDO Project Development Objectives CES Charles E. Schlumberger, Lead PIU Project Implementation Unit Air Transport Specialist (WBG) PJIA Princess Juliana International Airport DDM Department of Disaster PJIAE Princess Juliana International Airport Management Operating Company N.V. DRC Democratic Republic of Congo PPP Public-Private Partnership GA General Aviation PRG Pesticide Resource Group GACA General Authority of Civil Aviation PwC PricewaterhouseCoopers GDP Gross Domestic Product QAIA Queen Alia International Airport GEF Global Environmental Facility QMS Quality Management System GIS Geographic Information System RAS Reimbursable Advisory Service GNSS Global Navigation Satellite System RESAs Runway End Safety Areas GPS Global Positioning System ROI Register of Inspectors EASA European Aviation Safety Agency RPA Remotely Piloted Aircraft EIP European Investment Bank RPK Revenue Passenger Kilometer ELRP Emergency Locust response RSOO Regional Safety Oversight Organization Program SAA Samoa Airport Authority EUR Euro SAF Sustainable Aviation Fuels FY2021 Fiscal Year 2021 (01 July 2020 to SARP Standards and Recommended Practices 30 June 2021) SIACL Solomon Islands Airport Corporation GLTFP Great Lakes Trade Facilitation Limited Project SIRAP Solomon Islands Roads and Aviation IATA International Air Transport Project Association SMART Spatial Monitoring and Reporting IBRD International Bank for SOE State Owned Enterprises Reconstruction and Development SSL Safety and Security Levy ICAO International Civil Aviation STP Sao Tome and Principe Organization (UN Agency) TA Technical Assistance ICT Information and Communication TCRTP Tonga Climate Resilient Transport Project Technologies TF Trust Fund IDA International Development TP Tender Package Association (WBG) TSCP Transport Sector Consolidation Project IFC International Finance Corporation TSRP Transport Sector Reform Project ILS Instrument Landing System UAS Unmanned Aircraft Systems KAI Kyrgyz Aviation Institute UAT Uzbekistan Airways Technics KEP Knowledge-Exchange Platform UHY Uzbekistan Airways LAIA La Aurora International airport UN United Nations LCC Low Cost Carrier USD United States Dollar MACE Malta Aviation Conference & Expo USOAP Universal Safety Oversight Audit MBIA Maurice Bishop International Programme Airport VSAT Very Small Aperture Terminal MIGA Multilateral Investment Guarantee WB(G) World Bank (Group) Agency (WBG) WEF World Economic Forum MMIA Mundo Maya International Airport 3 | AIR TRANSPORT ANNUAL REPORT     ACKNOWLEDGEMENTS This report benefited from the contributions of a number of staff members from across the World Bank Group. We would like to thank Ahsan Tehsin, Alexandre Leigh, Arati Belle, Christian Vang Eghoff, Cornelius Fleischhaker, Fabian Hinojosa, Kavita Sethi, Keren Charles, Malaika Becoulet, Maria Lopez Conde, Nicolas De Leon, Nana Soetantri, Noro- arisoa Rabefaniraka, Papa Mamadou Fall, Satoshi Ogita, Shruti Vijayakumar, Su- san Vasquez, Tatsuo Harada, Tojoarofenitra Ramanankirahina, and Vikram Cutta- ree. We would also like to thank Binyam Reja, Acting Director Transport for his contin- ued guidance and support, as well as Sandy Belle Habchi for the research and preparation of this report. 4 | AIR TRANSPORT ANNUAL REPORT     The Mission intended to improve operational efficiency, financial sustainability, and ultimately work The World Bank Group (WBG) is a vital toward meeting the twin goals of ending source of financial and technical assis- extreme poverty and boosting shared pros- tance to developing countries around the perity. world through the provision of low-interest loans, grants, credits, guarantees, and ad- Enhancing Mobility and Connectivity visory services. The World Bank Group aims to achieve two major goals by 2030: Transport is a critical driver of economic and social development. Transport infrastructure OVERVIEW  End extreme poverty by decreasing the connects people to jobs, education, and percentage of people living on less than health services; it enables the supply of USD1.25 a day to no more than 3%. goods and services around the world; and  Promote shared prosperity by boosting allows people to interact and generate the the income of the bottom 40% of the knowledge and solutions that foster long-term population in every country. growth. The World Bank’s transport invest- ments have facilitated more efficient trade The World Bank Group aims to tackle and enhanced human development through these challenges through financing, cutting greater mobility. -edge solutions, cross-sectorial knowledge, and partnerships with relevant public and As a multi-sectorial institution, the World private sector actors, as well as civil socie- Bank Group is uniquely positioned to sup- ty. The organization’s investments span port large-scale transformational projects across a number of sectors, including edu- and deliver innovative cross-cutting solu- cation, health, public administration, private tions for greater connectivity. The World sector development, agriculture, and Bank’s strategy in the transport sector, transport and digital development. adopted in 2008, envisioned mobility solu- tions for developing countries that would The Institutions and New Structure be safer, cleaner, and more affordable. These three principles guide the Bank’s The International Development Association infrastructure investments and policy work. (IDA) is the part of the World Bank that The WBG is the largest provider of devel- helps the world’s poorest countries by opment finance for transport globally, with providing concessional loans, or credits, an active portfolio of around USD 48.2 bil- and grants. The World Bank’s original lend- lion. ing arm is the International Bank for Re- construction and Development (IBRD), Air transport plays an important role in fos- which lends to governments of middle- tering development, particularly in facilitat- income and creditworthy low-income coun- ing economic integration, generating trade, tries. The International Finance Corpora- promoting tourism, and creating employ- tion (IFC) provides loans, equity, and advi- ment opportunities. It facilitates integration sory services to stimulate private sector into the global economy and provides vital investment in developing countries. The connectivity on a national, regional, and Multilateral Investment Guarantee Agency international scale. However, in many (MIGA) provides political risk insurance or countries, air transport equipment and in- guarantees to facilitate foreign direct in- frastructure, regulatory frameworks, and vestment in developing countries. The In- safety and security oversight systems are ternational Centre for Settlement of Invest- inefficient or inadequate. ment Disputes (ICSID) is also a part of the WBG, but will not be covered in this report. In view of these challenges and to assist clients in establishing a safe, secure, cost The WBG has recently undergone major efficient, accessible and reliable air institutional change, and Transport and transport network, the Bank is mandated to Digital Development is now a Global Prac- undertake the following major activities: tice. The Bank’s new nimble structure with Global Practices and Cross-Cutting Solu-  Operational work through projects and tion Areas is designed to strengthen collab- technical assistance. oration and improve knowledge sharing  Economic sector work, research, and across the institution. These changes are knowledge dissemination on air 5 | AIR TRANSPORT ANNUAL REPORT     transport related issues. It is also worthwhile to highlight that under the sec-  External relations and collaboration with part- ond aviation Reimbursable Advisory Services in ner organizations. Central Asia, which will assist Uzbekistan in the  Internal services (such as the airline advisory implementation of the ongoing aviation sector re- service for WBG staff travel). structuring, three virtual missions have been con- ducted with promising outcomes. Also in FY2021, Portfolio and Project Highlights (i) a new project was put forward for approval with regards Transport and Connectivity Support in the In Fiscal Year 2021 (FY2021), WBG’s Air Transport DRC, (ii) an operation was proposed in Sao Tome Portfolio amounted to USD 934 million, an increase and Principe as a second operation in a program- of 10 percent from FY2020. The Air Transport seg- matic series of three COVID-19 Human and Eco- ment makes up around 2.84 percent of the WBG’s nomic Response, Recovery and Resilience Devel- USD 32.871 million Transport portfolio. The WBG’s opment Policy Financings, (iii) a new project in Sa- FY2021 Transport portfolio consisted of approximate- moa is in the works, and (iv) the World Bank ap- ly 10 percent of the WBG’s active portfolio of USD proved a second Tonga Climate Resilient Project. 331 million (excluding MIGA). Major active projects financed by the International In FY2021, the Air Transport portfolio included a Finance Corporation (IFC) include Sofia Airport in total of 28 lending and non-lending projects or pro- Bulgaria, Queen Alia Airport in Jordan, the Zagreb ject components through the International Bank for Airport in Croatia, the Enfidha Airport construction in Reconstruction and Development (IBRD) and In- Tunisia, and Belgrade Airport in Serbia. In addition, ternational Development Association (IDA), includ- the IFC investment portfolio also includes Lima Air- ing active and completed projects. The Internation- port in Peru and the 14 Regional Airports in Greece. al Finance Corporation (IFC)’s included 11 active operations in its Investment portfolio and support- In addition, the IFC is active through the provision of ed 6 Advisory Mandates. MIGA provided two Advisory Services for Kingston Airport (Jamaica), the Guarantees for the Air Transport Sector. Saudi Airports (26 in total), Sofia Airport (Bulgaria), Podgorica and Tivat (Montenegro), Beirut Airport One IBRD/IDA lending project implemented in Sa- (Lebanon) and Clark Airport (Philippines). moa closed in FY2021 with satisfactory outcomes. Key achievements include, (i) regulatory certification MIGA has been involved in the air transport sector of safety and security at project airports, measured in the past through the issuance of guarantees for through compliance of the project’s airport in accord- two airport projects in Jordan and Madagascar . ance with ICAO standards, through infrastructure in- vestments, capacity building and policy updates and Research and External Relations (ii) modernization of air traffic management through two elements (a) Very Small Aperture Terminal World Bank staff members continue to represent (VSAT) to enable regional Civil Aviation Authorities the organization externally at various air transport and air transport organizations to communicate es- conferences and events, notably the Second Malta sential safety and security communications in a relia- Aviation Conference & Expo (MACE) held virtually ble, secure and timely manner, and (b) Automatic in November 2020, and the High-Level Ministerial Dependent Surveillance Broadcast (ADS-B) to en- Meeting on Enhancing Air Transport Connectivity hance safety by making aircraft visible, in real time, and Growth in West Africa held virtually 17-18 to air traffic control and other appropriately equipped March 2021 by the Federal Ministry of Aviation, ADS-B aircraft. Further accomplishments include: (i) Nigeria in cooperation with the International Part- the supply and installation of Navigational Aids, Air- field Ground Lighting (AGL), and Power Systems and ners for Aviation Development, Innovations and Air Traffic Control Equipment (ATC), (ii) two refur- Sustainability (iPADIS). Research and knowledge bished fire rescue vehicles being commissioned, (iii) dissemination also continue to constitute critical Faleolo Airport complies as an Airfield Rescue and functions of the WBG’s Air Transport Community Fire Fighting (ARFF) Category 10 airport, (iv) installa- of Practice (ATCOP). Looking forward, the practice tion of Safety screening equipment, (v) the rehabilita- maintains its strong commitment to addressing the tion of airport runways, taxiways, and aprons, (vi) the challenges of its client countries. development of an Aviation Sector Strategy for Sa- moa, and (vii) a Master Plan and business Strategy for Samoa Airport Authority (SAA). 6 | AIR TRANSPORT ANNUAL REPORT       PORTFOLIO USD934M FY21 WBG AIR TRANSPORT PORTFOLIO 7 | AIR TRANSPORT ANNUAL REPORT TEN YEAR TREND - AIR TRANSPORT PORTFOLIO FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 IBRD $ 285 $ 277 $ 325 $ 329 $ 325 $ 325 $ 92 $ 92 $ 44 $ 44 $ 44 IDA $ 334 $ 336 $ 447 $ 457 $ 507 $ 420 $ 341 $ 311 $ 309 $ 310` $ 329 IFC $ 686 $ 633 $ 593 $ 647 $ 535 $ 496 $ 596 $ 576 $ 575 $ 497 $ 561 Growth 5% -5% 10% 5% -5% -9% -17% -4% -5% -8% 10% $ $ $ $ $ $ $ Total 1,305 1,246 1,365 1,433 1,367 1,241 1,029 $ 979 $ 928 $ 851 $ 934   The WBG is a vital source of financial and technical assistance to developing countries through low-interest loans, credits, and grants. In Fiscal Year 2020, the World Bank's Air Transport Portfolio was around USD 851 million. This included a total of 31 lending and non- lending projects or project components through the International Bank for Reconstruction and Development (IBRD) and International De- velopment Association (IDA), as well as the International Finance Corporation (IFC)’s Investment portfolio. In addition, IFC is supporting 28 Advisory Mandates and MIGA is providing 3 Guarantees for the Air Transport Sector. Active Portfolio IBRD IDA IFC TOTAL (in millions USD) FY21 FY20 Change FY21 FY20 Change FY21 FY20 Change FY21 FY20 Change WB Group Total Active Port- 133,984 133,679 0.23% 132,813 136,856 -2.95% 64,092 58,650 9.28% 330,889 329,185 0.52% folio WB Group Active Portfolio- 8| AIR TRANSPORT 16,325 23,593 -30.81% 14,644 13,873 5.56% 1,902 2,026 -6.12% 32,871 39,492 -16.77% Transport Transport % of Total Active 12.18% 17.65% -5.47 pp 11.03% 10.14% 0.89 pp 2.97% 3.45% -0.49 pp 9.93% 12.00% -2.07 pp Portfolio   ANNUAL REPORT Air Transport Active Projects 44.16 44.16 0.00% 328.73 309.72 6.14% 560.81 497.15 12.80% 933.70 851.03 9.71% % of Total Active Portfolio 0.03% 0.03% -0.01 pp 0.25% 0.23% 0.03 pp 0.88% 0.85% 0.04 pp 0.28% 0.26% 0.03 pp % of Total Transport Portfo- 0.27% 0.19% 0.09 pp 2.24% 2.23% 0.02 pp 24.49% 24.54% -0.05 pp 2.84% 2.15% 0.69 pp lio pp=percentage points Note: Excluding the Multilateral Investment Guarantee Agency (MIGA) For IFC, outstanding balances across all product categories (loans, quasi loans, equity at acquisition cost, quasi-equity, risk management and guarantees)   Active Air Transport Projects in FY19: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- IBRD & IDA PRO- ic/advisory services. 9 | AIR TRANSPORT ANNUAL REPORT     World Bank Commitment (Lending) 10 | AIR TRANSPORT ANNUAL REPORT       IBRD AND IDA LENDING PROJECTS WBG Commit- ment (USD M) Status Project Description of Aviation as of Region Country Project Name Type Code Component (s) Total Aviation End of (USD Compo- FY2021 M) nent Institutional capacity building, tech- Cabo Verde - Transport   Africa Cabo Verde P126516 nical assistance, and support of 58.0 6.92 IDA Credit Active Sector Reform   national airline. To improve safety and security at CMR Transport Sector Africa Cameroon P150999 Cameroon’s four international air- 206.7 48.7 IBRD Active Development Project ports. To support the improved manage- ment of OROA as well as support Chad Local Develop- national efforts to fight against Africa Chad P171611 ment and Adaptation poaching and promote conserva- 54.5 13 IDA Grant Active Project tion of biodiversity in line with Chad's engagement in the GEF-7 11 | AIR TRANSPORT ANNUAL REPORT Global Wildlife Program. Improve the safety, security, and Democratic Re- DRC-Goma Airport operations of Goma International Africa P153085 52.0 45.24 IDA Grant Active public of Congo Project Airport through infra-structure in- vestments and capacity building. Institutional and regulatory strengthening, capacity building and implementation support, as Democratic Re- Africa P159217 DRC Hydromet well as modernization of equip- 8.0 0.87 IBRD Active public of Congo ment, facilities and infrastructure for basic observation and meteoro- logical forecasting.   WBG Commit- Status Project Description of Aviation as of Region Country Project Name Total Aviation Type Code Component (s) End of (USD Compo- FY2021 M) nent The program supports the Ministry of Infrastructure's Directive (no. 9/2021) to overhaul STP's aviation security program (PNSAC). The Directive directs relevant govern- ment agencies (INAC and ENASA) to revise the aviation security pro- Second STP COVID-19 Democratic Re- gram in order to bring it in line with Recovery and Resili- Africa public of São To- P174274 EU cargo export requirements. The 12 1.0 IDA Grant Active ence Development Poli- mé and Principe policy reforms envisioned in the cy Operation third DPO3 trigger aim to bring   STP's airport security regulations up to EU standards by defining the necessary security procedures as well as auditing requirements by STP's aviation security oversight 12 | AIR TRANSPORT ANNUAL REPORT body. To limit the growth of existing de- sert locust populations and curb their spread while mitigating the risks associated with control IDA Grant Eastern and Emergency Locust Re- Africa P173702 measures and their impacts on hu- 160.0 72.37 & IDA Active Southern Africa sponse Program man health and the environment Credit through continuous surveillance, control measures, and risk reduc- tion management. Rehabilitation of Kamembe Inter- Great Lakes Trade Fa- IDA Cred- Africa Rwanda P151083 national Airport by Lake Kivu in 79 14.2 Active cilitation Project it Southwestern Rwanda.     WBG Commit- Status ment (USD M) Project Description of Aviation as of Region Country Project Name Total Aviation Type Code Component (s) End of (USD Compo- FY2021 M) nent Strengthen the Pacific Aviation East Asia Pacific Aviation Safety Pacific Islands P145057 Safety Office’s technical and coor- 6.7 1.93 IDA Grant Active Pacific Office Reform dination capacity. East Asia Samoa Aviation Invest- Improve operational safety and Samoa P143408 41.6 38.3 IDA Grant Closed Pacific ment Project oversight. Samoa Aviation and To support investments to improve East Asia Samoa P176272 Roads Investment Pro- the climate resilience and safety of 66.0 29 IDA Grant Active Pacific ject aviation in Samoa. 13 | AIR TRANSPORT ANNUAL REPORT Honiara and Munda Airports Infra- structure Investments to improve operational safety and overall in- frastructure resilience to climate change at Honiara, enable Munda Solomon Islands IDA Credit East Asia to receive international flights with Solomon Islands P166622 Roads and Aviation 51.0 35.39 & IDA Active Pacific an enhanced resilience to climatic Project Grant disasters, and UXO surveys. It will also provide institutional strength- ening to the aviation sector and prepare for Auki Gwaunaru'u Air- port Infrastructure Investments.   WBG Commit- ment (USD M) Status Project Description of Aviation as of Region Country Project Name Total Aviation Type Code Component (s) End of (USD Compo- FY2021 M) nent East Asia Tonga Climate Resili- Support the aviation sector infra- IDA Tonga P161539 26.0 2.0 Active Pacific ent Transport Project structure rehabilitation. Grant Feasibility studies, detailed design, East Asia Tonga Climate Resili- and physical works for identified IDA Tonga P176208 38.0 8.35 Active Pacific ent Transport Project II aviation infrastructure to improve Grant their climate resilience and safety.   East Asia Tuvalu Pacific Aviation Infrastructure investment, sector IDA Tuvalu P128940 35.7 25.7 Active Pacific Investment reform and training. Grant Strengthening of the aviation sec- 14 | AIR TRANSPORT ANNUAL REPORT tor’s safety and service provision. Addressing aviation safety and service provision would help the Civil Aviation Agency (CAA) to reach ICAO’s international safety IDA Central Asia Regional standards and recommended prac- Europe & Grant & Kyrgyz Republic P159220 Links Program - Phase tices, as well as to overcome the 55 4.5 Active Central Asia IDA 3 current blacklist of Kyrgyz carriers Credit by the EU, enhance local carriers’ growth opportunities and ultimately increase the country’s level of con- nectivity, a result that would benefit both local residents and interna- tional visitors. WBG Commit-     Status ment (USD M) Project Description of Aviation as of Region Country Project Name Code Component (s) Total Aviation Type End of (USD Compo- FY2021 M) nent Infrastructure development; im- Latin America & BO National Roads & prove safety, security and opera- IDA Bolivia P122007 109.5 5.48 Active the Caribbean Airport Infrastructure tional reliability of the Credit Rurrenabaque Airport To enhance the safety and resili- ence of Dominica’s existing two airports, support Dominica’s ef- Dominica - Caribbean forts to comply with ICAO SARPs Latin America & IDA Dominica P171224 Regional Air Transport and abide by the POS Declaration, 13.0 12 Active the Caribbean Credit Connectivity Project and support Dominica’s air transport sector through regional and Dominica- specific technical assistance. 6O Regional Disaster Regional Platforms for Hazard and Latin America & Eastern Caribbe- IDA P117871 Vulnerability Reduction Risk Evaluation, and Applications 20.9 5.01 Active the Caribbean an Sub-Region Credit Projects for Improved Decision Making. To improve MBIA operational 15 | AIR TRANSPORT ANNUAL REPORT safety and resilience as well as support Grenada’s efforts to com- ply with ICAO’s SARP and abide by the POS Declaration. The pro- ject also aims to strengthen the institutional capacity of GAA and Grenada - Caribbean Civil Aviation Division through a Latin America & IDA Grenada P172951 Regional Air Transport combination of regional and Gre- 17.0 15 Active the Caribbean Credit Connectivity nada-specific technical assistance and capacity building activities with a focus on enhancing aircraft operational safety, air transport sector regulatory oversight, airport management capability, climate/ disaster resilience, and gender diversity in the workplace.   WBG Commit- Status ment (USD M) Project Description of Aviation as of Region Country Project Name Total Aviation Type Code Component (s) End of (USD Compo- FY2021 M) nent To improve operational safety and navigation efficiency of air Caribbean Regional Air transport in the Recipient’s territo- Latin America & IDA Haiti P170907 Transport Connectivity ry and increase the climate and 84.0 84 Active the Caribbean Grant Project - Haiti disaster resilience of associated infrastructure at the Recipient’s international airports. To improve operational safety and Saint Lucia - Caribbe- navigation efficiency of air Latin America & an Regional Air IDA Saint Lucia P170860 transport, and enhance resilience 45.0 41 Active the Caribbean Transport Connectivity Credit of Saint Lucia’s airport infrastruc- Project ture to natural disasters. The development objective to re-   store the passenger capacity of Sint Maarten Airport Latin America & Princess Juliana International Air- IDA Sint Maarten P167974 Terminal Reconstruc- 72.0 72 Active the Caribbean port to pre- Hurricane Irma levels Grant tion Project with improved resilience towards hurricanes. 16 | AIR TRANSPORT ANNUAL REPORT The financing of aviation meteorol- Hydromet Services and ogy equipment, hardware and South Asia Bhutan P154477 Disaster Resilience 3.8 0.8 IBRD Active software to enhance aviation safe- Regional Project ty at Paro International Airport. Upgrading of the monitoring and forecasting system at airports to Pakistan Hydromet & improve aviation services, and the IDA South Asia Pakistan P163924 188.0 11.28 Active DRM Services Project installation of an Aircraft Meteoro- Grant logical Data Relay system at 10 international airports. IBRD AND IDA PIPELINE PROJECTS     WBG Commit- Status ment (USD M) Project Description of Aviation as of Region Country Project Name Type Code Component (s) Total Aviation End of (USD Compo- FY2021 To improve the governance, cli- mate resilience, and private fi- nancing attractiveness of the avia- tion sector. The project will also DRC Transport and IDA finance drainage development for Democratic Re- Connectivity Support Credit & Pipeline Africa P161877 DRC’s primary international gate- 500 36 public of Congo Project IDA FY2022 way airport, Goma Airport, and its Grant surrounding informal urban settle- ments in response to existing and increasing flooding risks from cli- mate change. To finance the rehabilitation and upgrading of three priority regional airports that are exposed and vul- nerable to climate change im- pacts, out of the eleven airports identified for upgrading under the 17| AIR TRANSPORT ANNUAL REPORT TSSP. The interventions include addressing asset damage caused by climatic events and the further enhancement of climate resilience, energy efficiency, and safety of Transport Integration IDA Pipeline Africa Tanzania P165660 the airports. The capacity of the 550 86.53 Project Credit FY2022 airports will also be enhanced to be able to address the demand projected for the medium to long terms, in climate resilient airports that offer international standards of safety. It will also support (i) air navigation facilities, (ii) meteoro- logical facilities, (iii) the associated construction supervision consult- ants, and (iv) land acquisition, and resettlement and rehabilitation. IBRD AND IDA PIPELINE PROJECTS   WBG Commit- ment (USD M) Status Project Description of Aviation as of Region Country Project Name Type Code Component (s) End of Total Aviation FY2021 (USD Compo- M) nent   Improvement of aviation safety, security and strengthening of air transport institutions. This will be achieved through the installa- tion of an integrated security sys- 18 | AIR TRANSPORT ANNUAL REPORT tems at major airports; automa- Kenya Aviation Sys- tion of regulatory functions at Pipeline Africa Kenya P167734 tems Improvement 100.0 100 IDA KCAA; installation of air naviga- FY2022 Project tion system; construction of an air accident investigation work- shop at JKIA and strengthening the capacity of KCAA, KAA and the State Department of Transport.   AFRICA Project Highlights 19 | AIR TRANSPORT ANNUAL REPORT     CABO VERDE transport efficiency and safety on the Babadjou- Cabo Verde Transport Sector Reform Bamenda section of the Yaoundé-Bamenda transport Project (P126516) corridor (about 364 km), and (iii) enhance safety and In FY2013, the World Bank approved a USD 19 mil- security at selected airports. lion International Development Association (IDA) The project has four components: (i) Transport Plan- Credit for the Cabo Verde Transport Sector Reform ning and Capacity Building, (ii) Road Transport Effi- Project (TSRP), as well as a USD 27 million IDA ciency Improvements, (iii) Air Transport Safety and Credit Additional Financing (AF) in FY2017. The Pro- Security Improvement, and (iv) Support to Project ject Development Objective (PDO) is to improve the Implementation Management and Monitoring. The efficiency and management of national road infra- third component is primarily concerned with facilitat- structure, as well as to lay the groundwork for ing the International Civil Aviation Organization’s transport sector State Owned Enterprise (SOE) re- (ICAO) effective implementation rating of Aerodrome   form. The project’s fourth component (Inter-Island and Ground Assistance at project airports (Yaoundé, Transport Strategy) aims to improve the quality of Douala, Garoua, and Maroua), as well as the Interna- inter-island sea and air transport services, as well as tional Civil Aviation Organization (ICAO) rating of port and airport management and the efficiency of Cameroon’s security oversight system. It has three transport SOEs. The project is expected to close in subcomponents: (i) strengthening airport safety and June 2022, following an extension of the closing security infrastructure, (ii) strengthening air transport date. safety and security oversight, and (iii) strengthening With the extension of the project’s closing date, the air transport planning capacity. government took advantage of the opportunity to As of FY2021, the aviation component is on track to reprioritize technical assistance activities in the avia- meet its goals for air safety and security: (i) the tion sector and prioritize those they believed would Nsimalen Airport bypass road has been completed, have a direct and immediate impact on the sector (ii) the Yaoundé Emergency Operations Center and aid in the post-COVID recovery. These include (CDOU) has also been complete, (iii) the CDOUs of the assessment of the civil aviation legal and regula- Maroua and Garoua have made significant progress tory framework, support to improve the statistical despite COVID-19 constraints, and (iv) the same is center within the Civil Aviation Authority, and the de- true for the works of the patrol road and the security velopment of a training plan for the civil aviation sec- wall of the Nsimalen Airport. The Cameroon Civil Avi- tor. ation Authority (CCAA) has included the construction It should be noted that the government still intends to of the Yaoundé-Nsimalen airport security wall in the privatize Airports and Air Safety (ASA) through a con- project in order to consolidate and scale up the im- cession, although the process is delayed. The privati- pacts of the air component on the Nsimalen airport zation processes of ASA and CV Handling are being platform. Certain technical assistance activities in managed by a working group led by the Secretary of safety and security that were originally planned for State for Finance. The World Bank’s SOE Project the project have been funded by the CCAA from its funds advisory services to the government. own budget. The project’s closing date has been ex- tended to 30 June 2024 to enable completion of all Contact persons are Vincent Vesin at activities including the activities of the air component. vvesin@worldbank.org and Shruti Vijayakumar at svijayakumar@worldbank.org. Contact person is Papa Mamadou Fall at pfall@worldbank.org. CAMEROON CMR Transport Sector Development CHAD Project (P150999) Albia - Chad Local Development and The World Bank approved a USD 192 million loan for Adaption Project (P171611) the Cameroon Transport Sector Development Project The World Bank approved a USD 50 million IDA in FY2016. The Project Development Objective is (i) Grant and a USD 4.45 million Global Environmental to strengthen transport planning, (ii) improve Facility (GEF) Trust Fund in FY2020 for the Albia - 20 | AIR TRANSPORT ANNUAL REPORT     Chad Local Development and Adaption Project. The The subcomponent will support the management of Project Development Objective of the project is to the OROA Reserve for enhanced monitoring of wild- improve the management of natural resources and life, enforcement of protection, and fire control and the livelihoods of populations in selected climate vul- prevention, as well as for raising the Reserve’s profile nerable areas in and around the Ouadi Rime and and maximizing economic opportunities. Activities, Ouadi Achim (OROA) reserves in Chad. The project which will contribute to the implementation of the Re- has four components: (i) Sustainable Natural Re- serve’s upcoming management plan (currently under sources Management and Protected Areas, (ii) Pro- development, with finalization expected in 2020), in- moting Diversified, Resilient, Sustainable Livelihoods, clude the purchase of equipment to facilitate (iii) Project Management, Coordination, and Monitor- transport and communication throughout the Re- ing and (iv) Contingency Emergency Response Com- serve’s territory, including vehicles, a small plane (4- 6 seats), Information and Communication Technolo- gies (ICT) equipment (e.g., Global Positioning Sys- tem (GPS) and Geographic Information System (GIS) software, solar chargers, binoculars, camera, cyber- tracker/Spatial Monitoring and Reporting (SMART) tablets, walkie-talkies, for all patrols, Good Very High Frequency radio network for office areas, vehicles, aircraft), and disruptive technology for monitoring ani- mal populations (e.g., drones for vultures, support for innovation in gazelle GPS collars, satellite tracking, etc.). Contact persons are Taibou Adamou Maiga at tmaiga@worldbank.org, Aurelie Rossignol at aros- signol@worldbank.org, and Taoufiq Bennouna at tbennouna@worldbank.org. ponent. The first component aims to support the improved DEMOCRATIC REPUBLIC OF CONGO management of OROA as well as support national Goma Airport Safety Improvement efforts to fight against poaching and promote conser- Project (P153085) vation of biodiversity in line with the country’s en- The World Bank approved a USD 52 million IDA gagement in the GEF-7 Global Wildlife Program. Grant in FY2015 to help improve the safety, security, Main activities include developing basic infrastructure and operations of Goma International Airport, the and strengthening capacity, management as well as main international gateway of the Eastern Democrat- regional dialogue to protect biodiversity and ecosys- ic Republic of Congo (DRC), and to repair damaged tem services. Under this component, the Project also infrastructure. The eruption of Mount Nyiragongo in supports community participation in sustainable natu- 2002 caused significant damage to the airport’s sole ral resource management, including the establish- runway and taxiway and meant a significant risk to ment of local community management committees to the peace consolidation efforts in the region. create the minimal necessary conditions to sustaina- bly manage natural resources and their fair access. The project was organized by two components: (i) Main activities include citizen engagement, capacity Airport Infrastructure Investments, and (ii) Capacity building, participatory processes for use of natural Building and Project Implementation Support. The resources as well as inclusive local development. first component was aimed at investments necessary to urgently enable the airport to meet international Subcomponent 1.1 - Improved Management of Pro- safety and security standards, and to bring its capaci- tected Areas (PA) aims to support biodiversity con- ty back to the level proper to the volcanic eruption. servation and strengthen the capacity of key conser- The second component’s objectives were to support vation institutions. It will combine activities centered the institutional development of Goma airport, share on the OROA as well as activities at national level. lessons learned with other key airports in the DRC, 21 | AIR TRANSPORT ANNUAL REPORT       and mitigate the risks associated with the volcanic strip. The wall made it possible to delimit the air- activities in the area. It is also intended to promote port area, and access is now controlled. interventions to provide social dividends to surround- (v) Securing the electricity supply. The project invest- ing communities in this conflict-affected area, and ed in a new building and new and modern equip- ensure proper project implementation. ment. Currently, the electricity is provided 24/7 At project closure in October 2021, the project objec- and the electricity for the new control tower is tives had been substantially achieved. Today, the supplied from the airport power plant. airport is operational at its original capacity, and op- (vi) Improving the capacity of intervention of the ser- erations at the airport have significantly improved. vice of rescue and firefighting services. The res- The most significant safety and security improve- cue and firefighting services were equipped with ments include: tools, parts, supplies, and a four-wheel drive vehi- (i) Repair of the runway. The project removed the cle to enhance their capacity for intervention and remaining lava rocks at the northern end of the to improve the safety of the airport. runway and reconstructed the runway at its origi- (vii) Improving the drainage network inside the air- nal length. port. The construction of drainage pipes contribut- (ii) Improving safety at the runway. Two runway end ed to the removal of rainwater from the airport safety areas were constructed to reduce the risk premises to Lake Kivu. of damage to an aircraft, improve aircraft deceler- Contact persons are Tojoarofenitra Ramanankirahina ation, and facilitate the movement of rescue and at tramanankirahina@worldbank.org and Bertram firefighting vehicles. Boie at bboie@worldbank.org (iii) Safe and adequate air traffic control. The brand new control tower has been operational since 30 DEMOCRATIC REPUBLIC OF CONGO November and its equipment is up-to-date. Strengthening Hydro-Meteorological and (iv) Securing the airport by enclosure. The construc- Climate Services (P159217) tion of the fence surrounding the airport ensures The Bank approved a USD 8 million IBRD loan for a the protection of restricted areas and the runway Global Environment Project for the Democratic Re- 22 | AIR TRANSPORT ANNUAL REPORT     public of the Congo (DRC) in FY2017, with the goal DRC. The latter program is ongoing and it is ex- of improving and strengthening the country’s hydro- pected that all airports will have synoptic stations by meteorological and climate services. Understanding 16 June 2022. All of the stations and software were hydro-meteorological and climate risks would aid in delivered to MettleSat in Kinshasa as part of the ac- assessing social and economic impacts and develop- quisition of meteorological and hydrological equip- ing appropriate policy responses to support the coun- ment and the flood Early Warning System is set to go try’s long-term development. More accurate, relevant, live in March 2022. and timely hydro-meteorological information, warn- Contact persons are Christian Vang Eghoff at ings, and services could benefit a number of eco- ceghoff@worldbank.org and Koffi Hounkpe at nomic sectors in the DRC, including airfreight and khounkpe@worldbank.org. aviation. The project has four components: (i) Institutional and DEMOCRATIC REPUBLIC OF CONGO Regulatory Strengthening, (ii) Modernization of DRC Transport and Connectivity Support Equipment, Facilities and Infrastructure for Basic Ob- Project (P161877) servation and Forecasting, (iii) Improvement of Hy- The World Bank approved a USD 750 million IBRD/ dromet Information Service Delivery, and (iv) Project IDA financing for the Transport and Connectivity Sup- Management. The first component invests in the hu- port Project for the Democratic Republic of Congo man and institutional resources needed to implement (DRC) on 31 May 2022. The Project Development and sustain hydromet observation and forecasting, Objective (PDO) is to provide resilient, safe, and sus- including conducting an institutional diagnosis that tainable connectivity to and within selected geo- includes a comparative review of the roles and man- graphic areas in the Eastern and Kasai regions of the dates of the various government agencies involved, DRC. The PDO will be achieved via three compo- such as Regies des Voies Aeriennes S.A. (RVA) and nents: (i) Sectoral Governance for Improved Connec- the National Agency for Meteorology and Remote tivity, (ii) Roads Connectivity Improvement, and (iii) Sensing (MettleSat), to help identify the main actions Environment and Social Measures. needed to increase efficiency. The second compo- nent assists in the reinforcement and rebuilding of The first component will seek to improve the govern- basic observation and forecasting networks, as well ance of the road, digital, and aviation sectors. Sub- as infrastructure required for MettleSat service provi- component 1.2 - Technical Assistance to Aviation sion. Sector Governance will seek to improve the govern- ance, the climate-resilience, and private financing Following a COVID-19 related setback, the project attractiveness of the aviation sector. It will finance the implementation is largely back on track as of following activities: (i) developing external and inde- FY2021. The implementation of a Quality Manage- pendent financial and organizational audits of the Air- ment System (QMS) is on track, and expected to port Authority (RVA) and the Civil Aviation Authority raise standards and quality control/verification proce- (AAC), and support in the implementation of a time- dures across civil aviation institutions. Although the bound corrective action plan following these audits, entire QMS certification process was scheduled to be (ii) conducting a climate vulnerability assessment for complete by December 2021, there are ongoing is- key airports in the DRC, and preparing a prioritized sues and conversations related to the revenue shar- work plan to address identified vulnerabilities, (iii) ing between the civil aviation authority and MettleSat preparing of a short-term sustainable strategy for pri- with regards releasing funds in return to services pro- vate sector participation in airport investments and vided by MettleSat to the civil aviation authority. A the identification of opportunities for financially sus- Memorandum of Understanding has been signed be- tainable PPP in the aviation sector, and (iv) technical tween MettleSat and the civil aviation authority and a assistance to AAC to reinforce their regulatory func- national framework of meteorological services has tion. been established. The project is also supporting (i) the drafting of the Meteorological Law which is ex- The second component will finance selected physical pected to be accomplished by June 2022, and (ii) the (road and air) and digital connectivity infrastructure. installation of hydromet stations at 12 airports in the Subcomponent 2.2 - Aviation Infrastructure Improve- ment will finance drainage development for DRC’s 23| AIR TRANSPORT ANNUAL REPORT     primary international gateway airport, Goma Airport, in responding to the human and economic impact of and its surrounding informal urban settlements in re- the COVID-19 pandemic, as well as to support econo- sponse to existing and increasing flooding risks from my-wide and sectoral reforms for a stronger and longer climate change. It will also finance the remaining con- -lasting recovery. Following a first DPF focused on struction work of a new control tower at Goma Airport STP response to the pandemic, this proposed second from the previous Goma Airport Safety Improvement DPF of USD 12 million supports both crisis response Project (P153085). It might also finance some addition- and key structural reforms that underpin inclusive al infrastructure measures to enhance the climate resil- growth and poverty reduction. ience of other key airports in the Eastern and Kasai The GoSTP has taken steps to ensure the safe reo- regions of the DRC. pening of the tourism industry as well as opportunities Contact persons are Tojoarofenitra Ramanankirahina in other promising sectors such as high-value-added at tramanankirahina@worldbank.org, Julie Babinard at agricultural and fishing exports (e.g., cocoa, coffee, jbabinard@worldbank.org, and Marc Jean Yves Lixi at vanilla and seafood). To that end, the Ministry of Tour- mlixi@worldbank.org. ism, Culture, Industry, and Trade established a public- private commission to develop COVID-19 health ad DEMOCRATIC REPUBLIC OF SAO TOME hygiene guidelines and protocols for tourism operators, AND PRINCIPE which have been formalized in the “clean and safe” Second COVID-19 Recovery and Resilience seal. The program also supports the Ministry of Infra- structure's Directive (no. 9/2021) to overhaul STP’s Development Policy Financing aviation security program (PNSAC). The Directive di- Project (P174274) rects relevant government agencies (INAC and By the end of FY2021, an operation was proposed in ENASA) to revise the aviation security program in or- Sao Tome and Principe (STP) as the second operation der to bring it in line with EU cargo export require- in a programmatic series of three COVID-19 Human ments. The policy reforms envisioned in the third De- and Economic Response, Recovery and Resilience velopment Policy Operations (DPO3) trigger aim to Development Policy Financings (DPFs). The series’ bring STP’s airport security regulations up to EU stand- objective is to assist the Government of STP (GoSTP) ards by defining the necessary security procedures 24 | AIR TRANSPORT ANNUAL REPORT     (e.g., cargo screening) as well as auditing require- components of the ELRP Multiphase Programmatic ments by STP’s aviation security oversight body. The Approach (MPA): program covers airport security rules and procedures,  Monitoring and controlling locust population growth as well as the requirements for National Civil Aviation and curbing the spread of swarms while mitigating Safety Training. These define not only competencies, the risks associated with control measures; but also the requirements that oversight auditors must meet and are subject to in order to carry out their safe-  Protecting and rehabilitating locust-affected house- ty oversight responsibilities (e.g., background checks, holds’ livelihood in order to prevent human capital competence). Although not sufficient, these regulatory and asset loss, ensure food security, and return actions are required in order to achieve the ultimate them to productivity; and goal of air cargo (ACC3) certification. The World Bank  Preventing future locust upsurges by strengthening hence provides technical assistance to the govern- capacity for ex ante surveillance and control opera- ment in revising these aviation security regulations. tions to facilitate national and regional early warn- Contact persons are Cornelius Fleischhaker at ing systems. cfleischhaker@worldbank.org and Mazen Bouri at In Djibouti, the first component would support the Re- mbouri@worldbank.org. public of Djibouti in strengthening its regulatory frame- work and institutional capacity for the management of EASTERN AND SOUTHERN AFRICA climate change-induced Desert Locust crises and set- Emergency Locust Response Program ting up a sound legal basis for the management of (P173702) pesticides used in Desert Locust control activities. The The Emergency Locust Response Program (ELRP) objective of subcomponent 1.2 - Support for Control received USD 160 million in IDA funding on 20 May Measures, consists of developing the public sector 2020. The Project Development Objective is to re- and community capacity to control desert locust popu- spond to the threat posed by the locust outbreak and lations and to prevent their spread into new areas. Un- to strengthen systems for preparedness in the Repub- der this subcomponent, the project will (i) procure the lic of Djibouti, the Federal Democratic Republic of Ethi- necessary ground equipment, (ii) procure a small agri- opia, the Republic of Uganda, and the Republic of culture single-seat and single-engine sprayer aircraft Kenya. The program has four components: (i) Surveil- designed for pesticide application during aerial control lance and Control Measures, (ii) Livelihoods Protection operations with the associated service package for its and Rehabilitation, (iii) Coordination and Early Warn- operation, training, and maintenance, (iii) finance the ing Preparedness, and (iv) Project Management. The operating costs associated with ground and aerial con- components apply to each project phase under the trol operations, (iv) procure ULV formulations of bio program. pesticides, (v) set-up of a harmonized registration sys- tem with the desert locust-affected neighboring coun- The Program objectives will be achieved by supporting tries, and (vi) organize the appropriate training on investments across three pillars that form the technical maintenance of ULV sprayers and pesticide stock 25| AIR TRANSPORT ANNUAL REPORT     management, taking into account FAO Directives and detection, surveillance including heavy duty drones, PRG recommendations and FAO guidelines on Good GIS/Remote sensing consultancy services, vehicles to Practice for Aerial Application of Pesticides. All pro- support field surveillance, reporting and mapping Desert cured equipment, including the small agriculture single- Locust spread, and provision of regular technical sup- seat and single-engine sprayer aircraft, will remain un- port to district. As with the other projects under the der government ownership, which will ensure the avail- ELRP, under subcomponent 1.2 - Control Measures, ability of the equipment when it is needed. appropriate control measures will be undertaken to re- duce locust populations and prevent their spread to new The Ethiopia project will adopt a two pronged approach areas mainly through targeted ground and aerial opera- for locust monitoring and control under the first compo- tions. Key activities will include procurement of pesti- nent: (i) direct support to improving surveillance and cides, approved by the Pesticide Resource Group assessment of locusts’ situation, habitat conditions, and (PRG), and spray equipment, including manual and mo- geographic exposure as well as targeted aerial and torized pumps, vehicle mounted spray equipment, ground spraying, and (ii) capacity building for relevant adapted spray vehicles, hire and leasing of required national institutions and communities prone to climate aircrafts to supplement aircraft to be accessed through change-induced locust breeding and infestation. Under a revamped DLCO-EA, and personal protective gear. subcomponent 1.1 - Continuous Surveillance, the pro- ject will finance procurement of equipment and opera- As of 2021, Djibouti has finalized the purchase and pay- tional costs to deploy expert teams and drones for the ment of an agricultural aircraft as well as the related collection of data at strategic locations, reporting occur- contracting of an aircraft operator. Aerial spraying oper- rences and possible occurrences of outbreaks, and as- ations were set to start as early as September 2021, if sessing geographic exposure to locusts. Under sub- needed. component 1.2 - Control Measures, activities will focus Contact persons are Melissa Williams at on effective climate-smart locust management practices mwilliams@worldbank.org, Imtiaz Alvi at and include procurement and/or rental of equipment ialvi@worldbank.org, and Welela Ketema at (sprayers, vehicles, drones, aircraft) and support to field wketema@worldbank.org. operations (aerial and ground operations). Kenya’s first component of the project aims to limit the RWANDA growth of existing climate-change-induced Desert Lo- Great Lakes Trade Facilitation cust populations and curb their spread, while mitigating Project (P151083) the risks associated with control measures and their The Great Lakes Trade Facilitation Project (GLTFP) impacts on human health and the environment. Sub- was approved by the World Bank on 25 September component 1 - Continuous Surveillance will finance the 2015 and became effective in Rwanda on 25 January surveillance activities, including both aerial and ground 2016 following a USD 79 million IDA Credit. The Project surveillance. Subcomponent 2 - Control Measures will Development Objective is to facilitate cross-border be- reduce locust populations and prevent their spread to tween Rwanda and the Democratic Republic of Congo new areas through a range of targeted ground and aeri- by increasing the capacity for commerce and reducing al control operations. This subcomponent would finance costs, time, and harassment faced by traders, especial- the spraying equipment, protective gear, approved pes- ly small-scale and women traders, at targeted border- ticides, and safety and awareness training for spraying land locations in the Great Lakes Region (GLR). The teams and other locust control personnel. aviation aspect of the project includes improvement of The first component of the Uganda project has four sub- Kamembe airport that will rehabilitate priority facilities, components that support pest surveillance for informed in particular: (i) acquisition and installation of essential decision making, mounting and conduct of the desert navigational aids such as GNSS designed to support locust. The first component of the Uganda project has enhanced safety during approach and landing and ap- four sub-components what support pest surveillance for propriate aeronautical ground lighting, (ii) acquisition informed decision making, mounting and conduct of and installation of essential meteorological and commu- control activities, early warning systems and risk reduc- nication systems consisting of an Aeronautical Message tion and management investments. Key investments Handling System, and automatic weather station and a under subcomponent 1.1 - Pest Surveillance include the Digital Aeronautical Information Management, (iii) con- procurement of necessary equipment for migratory pest struction of an airport perimeter fence consistent with 26 | AIR TRANSPORT ANNUAL REPORT     ICAO standards, and (iv) installation of CCTV security 2022. the remaining tasks are (i) finishing structured system throughout the airfield. The aim is to connect to cable system and acceptance and (ii) determining a Eastern DRC to the GLR and beyond through permanent solution for the AGL control system’s fail- Rwanda’s main gateway Kigali International Airport. safe operation. In regards TP2 - Security-perimeter fencing and CCTV, RAC had stated during the Novem- Improvements to Kamembe Airport are the single larg- ber 2019 mission that they would fund the CCTV, but est sub-component of the project, accounting for more their income had been damaged by the COVID-19 pan- than half of the project proceeds in Rwanda. The first demic. During the mission, three options were pro- activity under the sub-component, fencing of the airport, posed to RAC: a limited tender, a nationwide competi- was completed in November 2017. A World Bank team tive tender, and a single source selection of the firm conducted a mission between 14-17 November 2021 to that worked on the TP1 (the firm that installed the pil- support the implementation of the project. The mis- lars and cables for the CCTV system). RAC opted to go sion’s objectives were to (i) review progress on all pro- forward with a sole sources contract that the Bank ap- ject components and activities that needed to be com- proved shortly after the mission. The tender package pleted before the project’s deadline of 30 June 2022, (ii) under TP3 - AWOS & ATIS systems had been fully im- consult with project beneficiaries on project impacts, plemented. The contract under TP4 - AMHS & D-AIM and (iii) visit sites where the project interventions had systems was complete with the following pending been completed in the previous year. The mission also items: (i) factory training of RAC staff was underway; paid visits to Kamembe Airport, Bugarama, and Nyam- commissioning documentation was pending from the asheke, all of which are locations where the project is design consultant, (ii) contractor clarification of cartog- supporting physical initiatives. raphy software, and (iii) replacement of damaged radio The mission concluded that the majority of the project antenna and TV monitor, both of which had been ap- interventions at Kamembe airport had been accom- proved. plished. Tender Package (TP) 1 - Airfield lighting, pow- The mission also noted that an agreement had been er, fence lighting, communications and civil works was reached with the DRC on airspace management in the completed, except for a few minor faults and defects event of missed approaches at Kamembe Airport, and that the contractor was working on. The civil works con- that the two countries’ civil aviation authorities will sign tract required to be extended to the end of January 27| AIR TRANSPORT ANNUAL REPORT     a Memorandum of Understanding in December 2021. exposed and vulnerable to climate change impacts, out The arrangement was comparable to one already in of the eleven airports identified for upgrading under the place at the Goma/Gisenyi airports for cooperation be- TSSP. The interventions include addressing asset dam- tween Rwanda and the Democratic Republic of the age caused by climatic events and the further enhance- Congo. ment of climate resilience, energy efficiency, and safety of the airports. The capacity of the airports will also be Contact person is Charles Kunaka at cku- enhanced to be able to address the demand projected naka@worldbank.org. for the medium to long terms, in climate resilient airport that offer international standards of safety. The designs TANZANIA and feasibility studies of all the eleven airports were Transport Integration carried out and the most feasible airports that could pro- Project (P165660) vide medium to long term climate resilient services have A new project is currently in the pipeline awaiting ap- been chosen for upgrading. The three regional airports praisal and approval by the World Bank for a 550 IDA proposed for rehabilitation and upgrading are Lake Credit is the Transport Integration Project in Tanzania. Manyara, Iringa and Tanga Airports and the objective is The Project Development Objective is to improve the to meet the air traffic demands for the design life of 20 safety, climate resilience, and capacity of key road cor- years to address the potential demand from tourism and ridors and regional airports, as well as to improve the commerce activities. This component will also support capacity of relevant transport sector institutions to plan (i) air navigation facilities, (ii) meteorological facilities, for and manage the sector. The project has four compo- (iii) the associated construction supervision consultants, nents: (i) Upgrading and Rehabilitation of Trunk and and (iv) land acquisition, and resettlement and rehabili- Regional Roads, (ii) Upgrading and Rehabilitation of tation. Regional Airports, (iii) Institutional Support and Capacity Building in the Transport Sector, and (iv) Contingent Contact persons are Gylfi Palsson at gpals- Emergency Response. son@worldbank.org, Pratap Tvgssshrk at ptygssshrk@worldbank.org, and Allen David Natai at The second component will finance the rehabilitation anatai@worldbank.org. and upgrading of three priority regional airports that are 28| AIR TRANSPORT ANNUAL REPORT     EAST ASIA & PACIFIC Project Highlights 29 | AIR TRANSPORT ANNUAL REPORT     PACIFIC ISLANDS an Annual Work Program implemented by PASO Pacific Aviation Safety Office Reform Members. The implementation of the latter is the core Project (P145057) indicator of PASO’s success as it shows how much The Bank approved a USD 2.15 million IDA Grant for effort and work PASO has completed in each state. the Pacific Aviation Safety Office Reform (PASO) in The consultancies funded by the World Bank have all FY2014 as well as an Additional Funding (AF) of USD contributed to this success, with a critical consultancy 0.95 million in FY2017 and a second Additional Fund- being the Aviation specialist that produced the ability ing (AF2) of USD 3.55 million in FY2018. The project for remote auditing to occur. Remote auditing is now closing date has been extended to the end of Decem- the primary way that PASO is completing its work ber 2022. The revised Project Development Objective plans with each of its Members until COVID-19 travel (PDO) is to strengthen the Pacific Aviation Safety Of- restrictions are lifted. fice to deliver regional aviation safety and security oversight, and technical and advisory services to the Pacific Island countries. There are four components to the project: (i) Transitional Management and Support, (ii) Establishment of a Pool of Regional Aviation In- spectors, (iii) Quality Management, and (iv) Supporting Regional Aviation Infrastructure. Within a six-month preparation period, the original pro- ject design was completed in 2013. Member states re- quested IDA support for an agreed-upon reform agen- da after recognizing that PASO’s short-term cash flow forecast and upcoming liabilities projected an impend- ing insolvency. The AF2 will enable PASO to move closer to completing the reform activities, ensuring the continued effective and efficient delivery of safety and security oversight functions to its Pacific State Mem- The ICAO Regional Safety Oversight Organization bers. The most important result of the AF, along with (RSOO) service level PDO was developed as part of the three-year extension of its closing date, will be that AF2 in 2018 in response to ICAO turning its attention PASO will become more financially viable. The AF2 to RSOO as a mechanism for supporting states with will specifically fund the implementation of a new fund- their aviation safety and security needs. There are ing mode, Capacity Development for the Regional In- three levels of the RSOO status. PASO is currently at spectorate Program, Quality Management Systems, Level 1 and working towards becoming a Level 2 and Regional Aviation Infrastructure. RSOO. Since 2021, PASO has been steadily improv- ing with the completion of work. Most project activities had been completed by the end of FY2020, but some planned training activities had Contact persons are Noroarisoa Rabefaniraka at nrab- been halted due to travel restrictions caused by the efaniraka@worldbank.org and Dung Anh Hoang at COVID-19 pandemic. Two of the PDO indicators have dhoang1@worldbank.org. already been achieved, and PASO is working towards achieving the other two. The extension of the project SAMOA closing date will help PASO achieve these PDO indica- Samoa Aviation Investment tors as the system has been updated to adapt to the Project (P143408) situation following the pandemic. The project (i) suc- In FY2014, an IDA Grant of USD 25 million was ap- cessfully recruited a General Manager, Operations proved for the Samoa Aviation Investment Project, fol- Manager, and Corporate Services Manager, (ii) estab- lowed by an Additional Funding (AF) of USD 16.62 mil- lished a Register of Inspectors (ROI) comprising quali- lion in FY2016. The AF was designed to scale up the fied technical experts across multiple specializations, apron pavement expansions and fuel hydrant exten- including aerodromes, airworthiness, air navigation sions needed to integrate a new terminal building. The services, and flight operations, and (iii) recommended Bank approved a second additional financing (AF2) of 30 | AIR TRANSPORT ANNUAL REPORT     USD 2.2 million from IDA in May 2019, as well as a improve operational safety. In April 2018, two refur- nine-month extension of the project closing date. The bished fire rescue vehicles were commissioned, and Samoa project was the second phase of the regional Faleolo Airport is now an Airfield Rescue and Fire Pacific Aviation Investment Program (PAIP). The Fighting (ARFF) Category 10 airport. Safety screen- Project Development Objective is to (i) improve the ing equipment such as CCTV was also installed at all operational safety of international air transport and parts of the airport terminal building, increasing the associated infrastructure, and (ii) to improve the op- level of security, and providing greater control for ar- erational oversight of international air transport and riving and departing passengers as well as security associated infrastructure. controls for terminal access and management. Further achievements of the project include, the re- habilitation of airport runways, taxiways, and aprons, the development of an Aviation Sector Strategy for Samoa, and the development of a Master Plan and business Strategy for Samoa Airport Authority (SAA). The Strategy provided an overview of the regulatory environment in Samoa, the role of air transportation, the current state of aviation infrastructure, and the challenges of regulatory oversight faced in-country. The Master Plan and business strategy focused on SAA’s operations and management capacity, includ- ing (i) a thirty-year planning horizon, (ii) travel de- The project had four components: (i) Aviation Infra- mand forecasting for passenger/freight aircraft move- structure Investments, (ii) Strengthening Policy and ments for both international and domestic services, Regulatory Capacity, (iii) Strengthening Airport Oper- (iii) location of critical operational infrastructure that ations and Management Capacity, and (iv) Project meets international service standards and regulatory Support. Key achievements include, (i) regulatory compliance requirements, and (iv) recurrent expendi- certification of safety and security at project airports, tures for airport operations. Implementation of a re- measured through compliance of the project’s airport gional Safety and Security Levy (SSL) for departing in accordance with ICAO standards, through infra- international passengers was also fully achieved. The structure investments, capacity building and policy government imposed a regional safety and security updates and (ii) modernization of air traffic manage- levy of 11 Samoan Tala (WST) on each departing ment through two elements: (a) Very Small Aperture international passenger. The Ministry of Works, Terminal (VSAT) to enable regional Civil Aviation Au- Transport and Infrastructure (MWTI) receives 59 per- thorities and air transport organizations to communi- cent of the revenue from this levy, SAA receives 39 cate essential safety and security communications in percent, and airlines receive 2 percent as an admin- a reliable, secure and timely manner, and (b) Auto- istration fee. Since the levy’s inception in October matic Dependent Surveillance Broadcast (ADS-B) to 2015, over WST 6 million (approximately USD 2.4 enhance safety by making aircraft visible, in real million) has been collected. These funds are used to time, to air traffic control and other appropriately monitor the aviation industry. The Civil Aviation Divi- equipped ADS-B aircraft. The latter also facilitates sion (CAD) oversaw the collection of the MWT1 por- better communication with other airports in the region tion of the levy, and the fees collected by CAD are and provides a more efficient flight routing, which used to prepare manuals and reports for ICAO au- saves fuel and reduces greenhouse gases. Relevant dits, to implement ICAO’s SARPs, and to pay Sa- staff were trained in the effective use of this technolo- moa’s payments to the Pacific Union Safety Office gy and equipment. The supply and installation of (PASO). The funds allocated to SAA are used to Navigational Aids, Airfield Ground Lighting (AGL), maintain the equipment and pay the employees. and Power Systems and Air Traffic Control Equip- Contact person is Noroarisoa Rabefaniraka at nrabe- ment (ATC) were also completed in March 2020, al- faniraka@worldbank.org. lowing for modernized communication services that 31 | AIR TRANSPORT ANNUAL REPORT     SAMOA management, as well as technical assistance to SAA Samoa Aviation and Roads Investment in updating the Masterplan and Business Strategy to Project (SARIP) (P176272) ensure resilient airport management. Under technical A new project in Samoa is in the works, with approval assistance to SAA, the project will (i) assist in improv- for a USD 66 million IBRD/IDA grant expected in ing SAA’s emergency/contingency and evacuation FY2022. The Project Development Goal is to improve planning through updated plans, standard operating the climate resilience and safety of Samoa’s aviation procedures, and stakeholder training, (ii) develop a and road sectors, and to respond promptly and effec- business continuity plan to maintain critical services tively in the event of an Eligible Crisis or Emergency. during disruptions and shocks, and (iii) collaborate The project has four components: (i) Climate Resili- with Samoa Meteorology Services to develop impact- ence and Safety Investments in the Aviation Sector, based early warnings for the air transport sub-sector. (ii) Climate Resilience and Safety Investments in the The project will also entail (i) a feasibility study, de-   Road Sector, (iii) Strengthening the Enabling Envi- sign and supervision for seawall rehabilitation, (ii) a ronment, and (iv) Contingent Emergency Response feasibility study for extending the Faleolo Internation- Component (CERC). al Airport runway, (iii) consultancy services for design and supervision for drainage/resilience improvement The first component, which will be implemented by at the airport, and (iv) consultancy services for design the Samoa Airport Authority (SAA), will support in- and supervision for a boundary fence at the airport. vestments to improve climate resilience and aviation safety in Samoa. The project will provide technical The first component will also include the following: assistance through a site options study and detailed (i) the supply and installation of new navigation sys- designs for climate resilience and safety investments tems to improve operational safety (including a at Faleolo International Airport, including: a site-level new Doppler Very High-Frequency Omni- flooding resilience strategy, a floor hazard assess- directional Radio and Instrument Landing System ment, integrated structural and non-structural flood (ILS)), a 12-month calibration flight for the ILS to resilience investment options, and phased prioritiza- ensure it remains operational, and a WGS84 sur- tion of potential resilience investments. It will also vey; provide technical assistance to the Ministry of Works, (ii) the provision and installation of a new Automatic Transport, and Infrastructure's Civil Aviation Depart- Weather Station; ment in updating the Samoa Aviation Sector Strategy to ensure resilient aviation sector investment and (iii) implementation of airport infrastructure upgrades 32 | AIR TRANSPORT ANNUAL REPORT     and improvements, as well as the installation of SOLOMON ISLANDS signage, early warning devices, and other Solomon Islands Roads and Aviation measures to improve the airport’s resilience to Project (P166622) climate-related hazards and/or events; In March 2019, the Solomon Islands Roads and Avia- (iv) seawall rehabilitation works to mitigate the effects tion Project (SIRAP) received a USD 30.5 million IDA of rising sea levels and increasing storm surges; Credit and a USD 20.5 million IDA Grant to be sup- plemented by a USD 3.6 million counterpart funding (v) construction of a boundary fence; and contribution from the Solomon Islands Government (vi) the establishment of a Regional Airport Asset (SIG). The Project Development Objective (PDO) is Maintenance Contract to help improve the sus- (i) to improve the operational safety and oversight of tainability and resilience of airport assets through air transport and associated infrastructure, (ii) a five-year performance-based contract to main- strengthen the sustainability and dilate the resilience   tain critical mechanical and electrical assets of the Project Roads, and (iii) in the event of an Eligi- whose failure would jeopardize airport safety or ble Crisis or Emergency, to provide an immediate disrupt operations. response to the Eligible Crisis or Emergency. The PDO is to be achieved through five components: (i) The third component’s aviation element will provide Honiara and Munda Airports Infrastructure Invest- technical and operational management and imple- ments, (ii) Malaita Road Improvement and Mainte- mentation to assist the SAA in implementing SARIP. nance Program, (iii) Institutional Strengthening, (iv) It will offer technical assistance to SAA in areas such Project Implementation Support, and (v) Contingent as project management, capacity building and train- Emergency Response. ing, and annual operating costs. It will also provide occupational health and safety (OHS) training to SAA In terms of aviation, the project is assisting Honiara and contractors, as well as assistance with environ- and Munda Airports Infrastructure Investments (i) to mental and social consultation and supervision. It will improve operational safety and overall infrastructure also include gender and Sexual Exploitation and resilience to climate change at Honiara, allowing Abuse (SEA) and Sexual Harassment (SH) activities. Munda airport to receive international flights with en- hanced resilience to climatic disasters, and (ii) Despite the project’s planned implementation of resil- through contracts for survey, removal, and clearance ience building activities, Samoa’s increasing vulnera- of unexploded ordnance from the Second World War bility to climate change and severe weather events at both airports. Moreover, the project facilitates the means that access to contingent financing is a critical institutional strengthening of the aviation sector component of its disaster risk financing policy, which through (i) training needs analysis, (ii) airport opera- is currently being developed. Therefore, the fourth tional training, (iii) airport regulatory training, (iv) de- component is intended to provide a rapid response in velopment of a strategic plan for long-term viability of the event of an Eligible Crisis or Emergency by allow- Solomon Airlines (that is, airline strategy review), (v) ing Samoa to request that project funds be allocated airport master planning studies for both Honiara and to support emergency response and reconstruction. Munda airports, (vi) development of an aviation sec- Given the lessons learned from the COVID-19 pan- tor strategy, (vii) technical assistance to the Civil Avi- demic, the CERC under SARIP, like the CERC under ation Authority of Solomon Islands (CAASI) to im- the Samoa Climate Resilient Transport Project, will prove safety and security oversight, and (viii) tech- allow flexibility to support health-related response as nical assistance to the Solomon Islands Airport Cor- well as broader reconstruction or rehabilitation needs poration Limited (SIACL) to strengthen airport man- following an eligible event. agement and operation capabilities. Contact persons are Nana Soetantri at nsoetan- SIRAP reached the third year of a six-year implemen- tri@worldbank.org, Keelye Hanmer at khan- tation period as of the end of FY2021. Although travel mer@worldbank.org, and Hongye Fan at restrictions associated with the COVID-19 pandemic hfan@worldbank.ord. hampered the mobilization of international consult- ants and contractors, significant aviation activities 33 | AIR TRANSPORT ANNUAL REPORT     have progressed. The key achievements in relation The Strategic Options Analysis was conducted to to infrastructure investments include the completion guide the government in managing the impacts of of the (i) concept design for Munda terminal building COVID-19 on the aviation and tourism sectors in the in October 2019, (ii) Honiara Airport control tower short and medium term. It included Solomon Airlines renovation works in March 2020, with the upgraded route analysis, traffic forecast for 2021-2040, finan- tower being operational since July 2020, (iii) detailed cial analysis, and COVID-19 aviation and tourism design for Munda Airport runway, taxiway, and apron sector recovery scenarios and strategies. The analy- resurfacing in September 2020, and that for Honiara sis led to the ongoing SIRAP support for Solomon Airport runway resurfacing and airfield ground lighting Airlines to develop its Strategic Plan 2022-2024. in January 2021, (iv) unexploded ordnance clearance Contact persons are Dung Anh Hoang at dhoan- at the project sites in October 2020, and (v) installa- g1@worldbank.org and Naoki Kakuta at nkaku- tion of automatic dependence surveillance-broadcast ta@worldbank.org. (ADS-B) ground stations at Honiara and Munda in May 2021. In addition, progress has been made on TONGA the (i) design and build of Munda terminal building Climate Resilient Transport with the detailed design completed in December 2021, (ii) Munda runway, taxiway and apron resurfac- Project (P161539) ing with the contract for the works signed in Decem- In November 2018, the World Bank approved a USD ber 2021, (iii) very small aperture terminal (VSAT) 26 million IDA Grant for the Tonga Climate Resilient communications system with the installation at Honi- Transport Project. The Project Development Objec- ara completed (awaiting commissioning) and that at tive (PDO) is to improve the climate resilience of Munda underway, and (iv) ADS-B equipage for air- Tonga’s transport sector, and to provide an immedi- craft on the Solomon Islands’ registry with the pro- ate response in the event of an Eligible Crisis or curement ongoing. Emergency. The following key PDO indicators will be used to evaluate the PDO’s success: (i) identified cli- The key achievements in institutional strengthening mate resilience planning tools in use, (ii) identified include the completion of the (i) Solomon Airlines climate resilient investments constructed/rehabilitated strategy review in October 2019, (ii) Honiara and and in use in the aviation and maritime sectors, (iii) Munda Airports master plans in March 2020, (iii) Avi- identified enabling environment solutions implement- ation Sector Strategy in October 2020, and (iv) Solo- ed, (iv) length of roads constructed or rehabilitated mon Airlines Strategic Options Analysis in May 2021. with climate resilience measures, and (v) identified 34| AIR TRANSPORT ANNUAL REPORT     climate resilient routine maintenance contracts in Tonga has six airports, two of which serve both do- place and being implemented. The project’s second mestic and international flights, and the other four component supports the aviation sector’s infrastruc- serve only domestic travel. All airports in Tonga are ture rehabilitation (Climate Resilient Infrastructure operated and managed by the state-owned Tonga Solutions). The project will fund (i) feasibility studies, Airports Limited. The Civil Aviation Department, un- design, and physical works of identified aviation as- der the Ministry of Infrastructure, oversees civil avia- sets to improve their resilience to climate-related haz- tion safety and security. Real Tonga Limited was the ards and/or events, and (ii) urgent resurfacing of the domestic service provider but ceased operations in runway and apron at Salote Pilolevu Airport, Ha’apai, May 2020 amid issues related to the COVID-19 pan- which will include reconstruction of pavement layers demic. The government of Tonga (GoT) granted an at localized soft spots, subsoil drainage as needed, air operator’s certificate for a new airline, Lulutai Air- and full line marking. lines, in September 2020, and it began domestic flight operations. The airline is fully owned and oper- By the end of 2020, the project had made reasonable ated by the GoT. The World Bank was involved in the progress, despite the fact that most procurement pro- completed improvement of Lupepau’u International cesses were running behind schedule. International Airport (Vava’u) and Fua’amotu International Airport travel restrictions due to COVID-19 have been in ef- (Tongatapu) through the 2011-2019 Tonga Aviation fect since March 2020, preventing international con- Investment Project (TAIP) and the impending resur- tractors and consultants from entering the country facing of the runway at Salote Pilolevu Airport in and causing project implementation to be hampered. Ha’apai through the Tonga Climate Resilient The contract for resurfacing the runway at Ha’apai Transport Project (TCRTP). Over the last decade, the Salote Pilolevu Airport was signed and amended to airport infrastructure has been rehabilitated and up- accommodate COVID-19 restrictions and quarantine graded, but safety and resilience improvement to the requirements. The contract is on hold and will be re- airports are still needed. sumed once the border is open. In addition, an avia- tion advisor is currently being hired to assist the civil TCRTP II focuses on the improvement of the safety aviation department in renewing an airport safety cer- and resilience of transport infrastructure in Tonga. tification. TCRTP II will build on the achievements and lessons Contact persons are Satoshi Ogita at sogi- of the previous Transport Sector Consolidation Pro- ta@worldbank.org, Pierre Graftieaux at pgraft- ject (TSCP) and TAIP, and the ongoing TCRTP. ieaux@worldbank.org, and Sean Michaels at TCRTP II will include (i) some of the TCRTP activities smichaels@worldbank.org. that were planned but could not be implemented due TONGA to budget constraints, (ii) expanded TCRTP activities, Climate Resilient Transport and (iii) newly introduced activities. Aviation related activities under the project will include (i) regional air- Project II (P176208) port asset maintenance to improve safety and climate In December 2021, the World Bank approved a USD resilience of airport operations at international air- 38 million IDA Grant for a second Tonga Climate Re- ports in Tongatapu and Vava’u through a multi-year silient Project. The Project Development Objective is performance-based contract to maintain critical me- to improve the climate resilience and safety of chanical and electrical assets, (ii) acquisition of safe- Tonga’s transport sector, and, in the event of an Eli- ty equipment and facilities such as rescue fire trucks gible Crisis or Emergency, respond promptly and ef- and bird strike risk mitigation equipment for interna- fectively to it. The project has four components: (i) tional airports, (iii) detailed design and resurfacing of Capacity Building on Transport Planning and Poli- the runway at the Kaufana Airport in ‘Eua, and (iv) cies, (ii) Climate Resilient and Safe Infrastructure So- acquisition of safety equipment and facilities such as lutions, (iii) Project Management, and (iv) Contingen- rescue fire trucks, construction of a storage facility, cy Emergency Response. The second component and provision of ancillary equipment and goods at the entails feasibility studies, detailed design, and civil domestic airports. works for identified road, aviation, and maritime infra- structure in order to improve climate resilience and Contact person is Satoshi Ogita at sogi- safety. ta@worldbank.org. 35| AIR TRANSPORT ANNUAL REPORT      The third AF in 2017 was to find the best solution to TUVALU repair the damages as a result of the water pressure Pacific Aviation Investment under the resurfaced runway and finance (i) associ- Project (P128940) ated supervision cost of remediation works, (ii) Tu- The Tuvalu Aviation Investment Project (TvAIP), which valu’s participation in the ICAO, (iii) activities related is part of the Pacific Aviation Investment Program to Gender-Based Violence (GBV) and Violence (PAIP), was approved on 13 December 2011 and be- Against Children Occupational Health and (iv) Safe- came effective on 20 March 2012. The original ap- ty (OHS) and Environmental Social Management proved funding was USD 12.02 million, of which USD Plan (ESMP) monitoring tools and training for civil 11.85 million was financed by IDA and USD 0.17 million works contractors. from the Pacific Regional Infrastructure Facility (PRIF).  The fourth AF in 2021 was to cover a cost overrun The project received four Additional Financings (AF): in and to ensure that the project meets its PDO. 2013, 2016, 2017, and 2021 additional IDA Grants of USD 6.06 million, USD 2.88 million, USD 8.75 million, While key project activities have been completed, the and USD 6 million were provided respectively and the project has encountered several challenges. Construc- total approved funding for the project is USD 35.71 mil- tion of major infrastructures, i.e., the terminal building lion. The Project Development Objective (PDO) is to and the traffic control tower, as well as remedial works improve the safety and security of air transport and as- to address defects on the apron, were completed in De- sociated infrastructure. The project has three compo- cember 2019. Detailed designs and specifications for nents: (i) Aviation Infrastructure Investments, (ii) Avia- pavement rehabilitation were also completed in 2019 tion Sector Reform and Training, and (iii) Strengthening and the bidding process of the rehabilitation was Airport Operations. launched. After an unsuccessful bidding process, GoTv reassessed their approach to runway remediation The project is now in its ninth year of a twelve-year im- works. In August 2020, GoTv advised that its preferred plementation schedule. The objectives of the four Afs course of action is to re-tender the rehabilitation of the are summarized as follows: 600m of the most deteriorated section of the runway. To  The first AF in 2013 was to scale up the ongoing ensure that the project will have sufficient time and TvAIP to support the resurfacing of roads which pro- funds to complete the rehabilitation works, GoTv re- vide access to Funafuti Airport, and the building of a quested an extension of the closing date of the project water cistern under the new terminal. to 15 December 2022, and additional financing of USD 6 million to fill the financial gap of the runway rehabilita-  The second AF in 2016 was to address a funding ga tion work. The extension of the closing date was pro- under the project and extend the closing dates for all cesses through the project restructuring in October. funding sources. Under the assumption that the travel ban was lifted in November 2021, the proposed work can be completed 36 | AIR TRANSPORT ANNUAL REPORT     before the current closing date. While some of the pro- curement activities such as pre-bid meetings can be done virtually, it would take about 12 weeks to complete a 600m runway rehabilitation work in Tuvalu, consider- ing the need for importing materials, equipment, and labor internationally as well as Tuvalu’s unstable weath- er conditions, and the need to create an alternative flight schedule due to restrictions on landing and take- off during the civil works period. Contact persons are Nana Soetantri at nsoetan- tri@worldbank.org and Satoshi Ogita at sogi- ta@worldbank.org. 37 | AIR TRANSPORT ANNUAL REPORT     EUROPE & CENTRAL ASIA Project Highlights 38 | AIR TRANSPORT ANNUAL REPORT     KYRGYZ REPUBLIC A World Bank team conducted a virtual implementa- tion support mission for the Third Phase of the Central Central Asia Regional Links Program - Asia Regional Links Program from 2-9 June 2021. The Phase 3 (P159220) main objectives of the mission were to (i) review the The World Bank approved a USD 27.50 million IDA status of the project activities under Component 1, Grant and a USD 27.50 million Credit for the Central Component 2 and Component 3, (ii) review the time- Asia Regional Links Program - Phase 3 (CARs - 3) in line of implementation and discuss Bank support to October 2018. The Project Development Objective is expedite progress of various activities, (iii) review fi- to improve regional connectivity and support long-term nancial management and disbursements, as well as tourism development in Issyk-Kul Oblast. The project procurement issues, (iv) review social and environ- has three components: (i) Regional Connection, Asso- mental safeguards, (v) review monitoring and evalua- ciated Facilities and Equipment, (ii) Aviation Safety tion data collection and Results Framework, and (vi) and Service Provision, and (iii) Sustainable Tourism agree on an update action plan to expedite the imple- Development. Under its second component, the pro- mentation progress. ject helps to strengthen the aviation sector’s safety The team discussed the aviation safety and service and service provision, which would assist the Civil Avi- provision component of the project during the mission ation Agency (CAA) in meeting ICAO’s international and noted that progress was made only in the prepa- safety standards and recommended practices, as well ration of the various Terms of References but not in as overcoming the EU’s current blacklist of Kyrgyz procurement since the previous mission. Compliance carriers, enhancing local carriers’ growth opportuni- with aviation safety standards and recommended ties, and ultimately increasing the country’s level of practices measured by USOAP has been achieved connectivity, benefiting both local residents and inter- based on the results of the latest ICAO audit conduct- national visitors. ed 8-12 April 2019. While the overall indicator had 39 | AIR TRANSPORT ANNUAL REPORT     been achieved, it was agreed that the focus should be hancement and development of an Aviation State Safe- on improving the indicators of three critical elements, ty Program (SSP), (iii) provision of training safety in- which were rated the lowest in the ICAO audit (those spectors and other staff of CAA, (iv) procurement of being, (i) the qualified technical personnel with a com- software and equipment to upgrade CAA’s record- pliance level of 35.71 percent, (ii) surveillance obliga- keeping capabilities, and (v) a review of the educational tions (53.95 percent), and (iii) resolution of safety issues program of the Kyrgyz Aviation Institute (KAI), capacity (54.35 percent)). All three indicators are expected to be building, and acquisition of testing software for aviation improved by the project’s closing date. The mission personnel and a flight training device, as well as mod- stressed the point that the CAA must perform a gap ernization of KAI facilities where deemed necessary. analysis in order to determine the training needs As for next steps, the Bank confirmed that the focus throughout the organization regardless of their USOAP should be on a Needs Assessment (CAA Gap Analy- score. sis), which would justify the implementation of capacity The mission elaborated on the set objectives for the building and procurement of hardware and software. sector’s development and confirmed the way forward This would be followed by the elaboration of the Avia- for implementation, which includes: (i) elaboration of an tion Masterplan, and the review of the educational pro- Air Transport Masterplan for the Kyrgyz Republic, which gram of the KAI. Despite the low disbursement rate, the includes policy elements in regards to fostering the de- project has made significant progress since the last velopment of air transportation, facilitating market ac- mission, and key technical studies under the Aviation cess and competition, as well as environmental and and Tourism components are in procurement process- governance issues (the Masterplan may be issued as a es, and design for five tourist service centers and au- formal White Paper to be formally adopted by the Gov- thor supervision has commenced as of November 2021. ernment), (ii) a review of the institutional set-up of the Contact person is Muhammad Zulfiqar Ahmed at governmental regulatory and economic oversight and zulfiqar@worldbank.org. governance of the sector, and (iii) an in-depth analysis of the current state of aviation safety and security. The latter includes the following sub-components: (i) an as- sessment of the regulatory oversight by the Kyrgyz Civil Aviation Agency (CAA), including a gap analysis in terms of personal skills and training needs, (ii) the en- 40 | AIR TRANSPORT ANNUAL REPORT     LATIN AMERICA & CARIBBEAN Project Highlights 41 | AIR TRANSPORT ANNUAL REPORT     BOLIVIA reallocation of funds from the first to the second com- National Roads and Airport Infrastructure ponent in order to finance (i) additional civil works not Project (P122007) previously contemplated in the parent project prepa- A USD 109.5 million IDA Credit was approved by the ration, including paved fire truck access, secure air- World Bank in FY2011 and became effective in port perimeter fencing works, platform construction, FY2012 for the Bolivia National Roads and Airport taxiway, and drainage system, (ii) safety, meteorolog- Infrastructure Project. The project has been extended ical, medical, and security equipment necessary for three times, the latest extension was approved in Oc- the modern, safe, and efficient operation of the com- tober 2018, with a new closing date of 7 August pleted airport, and (iii) support to the Project Imple- 2022. The current amount of credit awarded for the mentation Unit (PIU) within AASANA. The corre- project is USD 91.7 million. The Project Development sponding amendment to the financing agreement Objective is to improve (i) year-round transit ability of was approved in December 2019. On 1 December the San Buenaventura-Ixiamas, and (ii) the safety, 2021, the GoB dissolved AASANA and a new agen- security, and operational reliability of the cy, Navegacion Aerea y Aeropuertos Bolivianos Rurrenabaque Airport. The project has three compo- (NAABOL), was created to replace it. NAABOL as- nents: (i) Improving the San Buenaventura-Ixiamas sumed the contracts, licenses, agreements, credits, National Road, (ii) Improving the Rurrenabaque Air- and any other administrative tasks that were signed port, and (iii) Institutional strengthening of the road by AASANA. agency, Administradora Boliviana de Carreteras Overall, the first phase of the project was completed, (ABC), the airport authority, Administracion de Aero- and the World Bank team participated in the inaugu- puertos y Servicios Auxiliares a la Navegacion Aerea ration on 21 March. The second phase should re- (AASANA), and other relevant entities. sume soon once the restructuring is complete. Contact persons are Felipe Targa Rodriguez at ftarga@worldbank.org, Tatsuo Harada at tharada1@worldbank.org and Fabian Hinojosa Couleau at fhinojosa@worldbank.org. DOMINICA Caribbean Regional Air Transport Connectivity Project (P171224) The World Bank approved a USD 13 million IDA Credit in May 2020 for a Caribbean Regional Air Transport Connectivity Project in Dominica. The Pro- ject Development Objective was to (i) improve opera- tional safety and resilience readiness to natural dis- asters in air transportation and (ii) strengthen the ca- pacity of key agencies in air transportation operations The second component has been executed by the and airport investment planning. The project had four airport agency, AASANA, which was responsible for components: (i) DOM and DCF Safety and Resili- most airports in Bolivia. The scope of the component ence Improvements, (ii) Technical Assistance and is the upgrading and modernization of a small region- Institutional Strengthening, (iii) Project Management, al airport in Rurrenabaque, with the construction of a and (iv) Contingent Emergency Response. The first terminal building, control tower, technical building, component aimed to enhance the safety and resili- access road, taxiway, and apron. All civil works and ence of Dominica’s existing two airports and support supervision started in May 2018. According to AA- Dominica’s efforts to comply with ICAO SARPs and SANA, the physical progress of the works contract abide by the Port of Spain Declaration. The second stood at 85 percent as of October 2021, with the con- component aimed to provide regional and Dominica- tract finalization date set for 20 January 2022. In specific technical assistance to Dominica’s air 2019, the Government of Bolivia (GoB) requested a transport sector. The third component was designed 42 | AIR TRANSPORT ANNUAL REPORT     to assist the Prime Minister’s Office in its project Project in June 2011. The Project Development ob- management activities, specifically the dedicated jective aims at measurably reducing vulnerability to Project Implementation Unit (PIU), which was in natural hazards and climate change impacts in the charge of overall project management, supervision, Eastern Caribbean Sub-region (Grenada, Saint Vin- fiduciary control, monitoring, and evaluation. While cent, and the Grenadines). The Project has four the last component aimed to provide an immediate components: (i) Prevention and Adaptation Invest- response to an eligible emergency. ments, (ii) Regional Platforms for Hazard and Risk Evaluation, and Applications for Improved Decision Making, (iii) Natural Disaster Response Investments, and (iv) Project Management and Implementation Support. The second component supports building the region- al capacity for assessment of natural risks and inte- gration of such assessment into policy and decision making process for the development of investments, disaster risk mitigation, and disaster response across sectors, through the provision of technical advisory services, training, and acquisition of goods by (i) fa- cilitating regional collaboration, including knowledge sharing and learning processes to develop and apply construction standards and methods for critical pub- lic infrastructure and urban flood mitigation, and to strengthen regional collaboration for urban and flood Implementation actions were initiated, including the risk reduction, reducing the risk of regional intercon- identification/appointment of the head of the PIU, Fi- nectivity and carrying out related supporting studies, nancial Management and procurement specialist. including improving the international airport to main- The Project Operations Manual and CERC were also tain an adequate emergency response capability and finalized and the Terms of References for the (i) to comply with the international operational stand- COVID response strategy, (ii) International technical ards. specialist, (iii) International procurement Consultant, The third component will finance emergency recov- and (iv) Environmental/Social specialists, were draft- ery and reconstruction subprojects under an agreed ed. A remote supervision mission was also undertak- action plan of activities designed as a mechanism to en in September 2020. However, in October 2020, implement the recipient’s rapid response to an emer- the project was cancelled at the request of the gov- gency. Under this component, expenditures on criti- ernment of Dominica. cal imports and reconstruction/rehabilitation of dam- Contact persons are Kavita Sethi at aged infrastructure will be financed (inclusive of air ksethi@worldbank.org, Vikram Cuttaree at vcutta- transport equipment). ree@worldbank.org, and Charles Schlumberger at As of FY2021, (i) Saint Vincent and the Grenadines’ cschlumberger@worldbank.org. project has been critical in supporting the emergency response following the La Soufriere volcano erup- EASTERN CARRIBBEAN SUB-REGION tion, and (ii) Grenada’s project has contributed to- Regional Disaster Vulnerability Reduction wards building resilience to disaster and climate risks Project (P117871) by strengthening infrastructure and building technical The World Bank approved a USD 7 million PPCR and institutional capacity. Grant, USD 3 million SCF Loan, and 10.92 million Contact person is Keren Carla Charles at IDA Credit, amounting to USD 20.92 million, for an kcharles@worldbank.org. Eastern Caribbean Regional Disaster Vulnerability 43 | AIR TRANSPORT ANNUAL REPORT     GRENADA nical assistance and capacity building activities with Caribbean Regional Air Transport a focus on enhancing aircraft operational safety, air Connectivity Project (P172951) transport sector regulator oversight, airport manage- On 28 May 2020, the World Bank approved the Gre- ment capability, climate/disaster resilience, and gen- nada Caribbean Regional Air Transport Connectivity der diversity in the workspace. The project would be Project with a USD 17 million IDA Credit. The Project implemented by the Ministry of Infrastructure Devel- Development Objective is to (i) improve operational opment, Public Utilities, Energy, Transportation and safety and navigation efficiency of air transportation, Implementation (MOIID) with close coordination and (ii) increase the climate and disaster resilience of participation from lineage agencies, including the Maurice Bishop International Airport (MBIA), and (iii) Ministry of Tourism and Civil Aviation (MOTCA), and strengthen Grenada’s capacity in civil aviation and the GAA responsible for MBIA. Furthermore, the airport management. The project has four compo- fourth component will provide immediate response to nents: (i) Operational Safety and Resilience En- an eligible emergency. hancement, (ii) Technical Assistance and Capacity The project is effective from November 2020. The Building, (iii) Project Management, and (iv) Contin- implementation arrangement is almost complete. In gent Emergency Response. The first component addition, the procurement process for priority activi- would improve MBIA’s operational safety and resili- ties (consultancy services) is underway. A World ence and support Grenada’s efforts to comply with Bank virtual mission was conducted on 1-4 February ICAO SARPs and abide by the Port of Spain Decla- 2021, with the objectives of (i) confirming the plan- ration. The second component aims to strengthen ning and prioritization of activities, (ii) initiating the the institutional capacity of the Grenada Airports Au- preparation of Terms of Reference for the activities thority (GAA) and Civil Aviation Division through a to be procured in the 6 following months, (iii) agree- combination of regional and Grenada-specific tech- ing on the scope of COVID-19 response activities 44 | AIR TRANSPORT ANNUAL REPORT     (strategy study, health screening equipment, drone quirements of the ICAO SARPs and National Office study), (iv) confirming the project implementation of Civil Aviation (OFNAC) (Annex 6) and improving staffing arrangement and reviewing of agreements navigation/taxiing efficiency to better accommodate between the government and Grenada Airport Au- existing traffic volumes and air traffic surges associ- thority, (v) confirming progress on actions listed in ated with post-disaster relief flights. Thus, it aims to the Environmental and Social Framework instru- (i) rehabilitate the CAP runway, (ii) expand PAP taxi- ments and planning for virtual consultation, (vi) final- way and aircraft parking, (iii) construct ICAO- izing the Operations Manual, and (vii) discussing re- required runway end safety areas for both PAP run- gionally-coordinated training activities and ICAO way ends, (iv) construct a CAP air traffic control tow- compliance screening. er as well as replace and install communication and surveillance technology, and (v) implement ADS-B The mission recognized the progress made since ef- for PAP and CAP. fectiveness and during the mission: (i) the priority activities for the first year of implementation were The investments under the second component seek agreed, (ii) several Terms of Reference and one set to reduce the risk of airfield flooding associated with of bidding document are at an advanced stage of the annual rainy season, hurricanes, and climate preparation, (iii) the virtual safeguards consultation change at PAP and CAP by increasing the drainage plan was prepared with agreed dates for implementa- capacity at both airfields and thus improving their cli- tion, (iv) the core implementation team on Govern- mate/disaster resilience. The third component aims ment side was confirmed by MOIID, (v) the opera- to strengthen the institutional capacity of the Ministry tions manual is almost completed (pending the of Public Works, Transportation and Communication, CERC annex). The team also discussed the possibil- National Airport Authority (AAN), and OFNAC to ity of including Grenada in a grant-funded technical manage, operate, and oversee airport operations and assistance program for all CATCOP countries on air their development through a combination of Tech- transport resilience. nical Assistance (TA) activities and training. It also aims to provide TA to assess the capabilities, needs, Contact person is Tatsuo Harada at and opportunities for the use of Unmanned Aircraft tharada1@worldbank.org. Systems (UAS) in Haiti to define the associated legal framework, as well as to support the government of HAITI Haiti (GoH) in the identification and development of Caribbean Regional Air Transport potential logistic and supply chains. And lastly, to fi- Connectivity Project (P170907) nance project implementation support. With respect On 28 May 2020, the World Bank approved a USD to institutional capacity, the focus would be on en- 84 million IDA Grant for the Haiti Caribbean Regional hancing (i) aircraft operational safety and associated Air Transport Connectivity Project. The Project De- air transport sector regulatory oversight, (ii) the quali- velopment Objective is to (i) improve operational ty of airport management, operations, and mainte- safety and navigation efficiency of air transport, and nance, and (iii) capacity for improving climate/ (ii) increase the climate and disaster resilience of as- disaster resilience and gender diversity in the avia- sociated infrastructure at Haiti’s international air- tion sector. ports. A world bank team conducted a virtual supervision The project includes four components: (i) Port-au- mission on 24-25 February 2021, as well as a review Prince’s Toussaint Louverture Airport (PAP) and Cap session 16 March 2021 of the Regional Air Transport -Haitien International Airport (CAP) operational safe- Connectivity Project in the Caribbean - Haiti compo- ty and navigation efficiency investments, (ii) PAP and nent (HT-CATCOP). The mission focused on (i) the CAP airfield drainage system improvements, (iii) In- review of the Terms of Reference being prepared stitutional strengthening and project management , and finalized, (ii) the development of the action plan and (iv) Contingent Emergency Response. The first for the next three months, (iii) preparation of the component would support infrastructure and equip- training plan and identification of priorities relating to ment in Haiti’s two international airports aimed at im- technical assistance, and (iv) review of conditions proving aircraft operating conditions in compliance attached to financial management, procurement, and with international safety standards as per the re- environmental and social safeguard instruments. The 45 | AIR TRANSPORT ANNUAL REPORT     mission agreed on priority actions as follows: (i) final-In regards to the AAN and OFNAC, the discussions izing the Terms of Reference for the Project Manage- focused on the reinforcement activities to be priori- ment Assistance (AMO) and launching of the selec- tized for the next six months by both institutions. tion process for the AMO, which would support the Longer-term strengthening activities will be specified Central Execution Unit, (ii) review and finalization of through the launch of an institutional diagnostic study the Terms of Reference attached to the activity relat- aimed at identifying the needs for each entity with ing to unmanned aircraft systems (UAS), (iii) recruit- regard to their mandate and constraints. The mission ment of technical specialists, and (iv) submission of also noted with satisfaction that the environmental a training plan for the next 6 months for AAN and safeguard specialist attached to CATCOP has been OFNAC staff. recruited, as well as the communication specialist. The accountant attached to the project as well as a The discussion held during the mission made it pos- financial management specialist were also recruited. sible to define the outlines of the service for the de- velopment of UAS systems in Haiti under the tech- Contact person is Malaika Becoulet at mbecou- nical assistance program. The mission identified two let@worldbank.org. areas of work for the implementation of this activity: SAINT LUCIA (i) in the short term, the definition and implementa- Caribbean Regional Air Transport tion of a UAS pilot project, and (ii) in the medium Connectivity Project (P170860) term, technical assistance for strengthening the regu- On 28 May 2020, the World Bank approved a USD 45 latory framework of UAS activities in Haiti. The mis- million IDA Credit for the Saint Lucia Caribbean Region- sion also noted that the number of air routes has al Air Transport Connectivity Project. The Project Devel- been reduced due to reduced demand or border con- opment Objective is to (i) improve operational safety trols and quarantine requirements implemented to and navigation efficiency of air transport and (ii) en- limit the spread of COVID-19. Thus, the possibility of hance the resilience of Saint Lucia’s airport infrastruc- the project funding a COVID-19 response strategy ture to natural disasters. The project has five compo- study was discussed. This study should quickly iden- nents: (i) Improvement of UVF Runway Safety and Re- tify (i) additional health control and protection silience, (ii) Modernization of Air Navigation Systems, measures for passengers and staff and (ii) a plan to (iii) Institutional Strengthening, (iv) Project Manage- mitigate the negative organizational and financial im- ment, and (v) Contingent Emergency Response. pacts of the pandemic on the AAN and the OFNAC. With regard to organizational and financial resilience, The first component seeks to improve the operational the study will identify (i) the immediate organizational safety and flood disaster resilience of Saint Lucia’s UVF and financial challenges posed by the reduction in air runway, and supports Saint Lucia efforts to comply with traffic and revenues and (ii) the longer-term post- ICAO SARPs through a series of priority civil works and pandemic challenges with regard to a future resump- related activities. The civil works include (i) runway re- tion of activities. habilitation, upgrading, marking and LED lighting sys- tem installation, (ii) paved stopways and Runway End Safety Areas (RESAs) construction, (iii) airfield drain- age and flood protection improvements, and (iv) Crash Fire Rescue improvements. Technical assistance would be provided for corresponding design and supervision, environmental and social safeguards activities, and works under the first component. The second compo- nent seeks to improve air traffic safety and efficiency through the modernization of air navigation systems through (i) the acquisition of Instrument Landing System (ILS) and ADS-B equipment, including one or more ground stations, a receiver antenna, air traffic control tower monitors, and onboard transmitters for Saint Lu- cia-based aircraft, and (ii) the provision of technical as- sistance. 46 | AIR TRANSPORT ANNUAL REPORT     The third component aims to strengthen the institutional (v) The Project’s Chart of Accounts was developed. capacity of the government of Saint Lucia for managing, As of FY2021, the Project Implementation Unit is now developing, operating, and overseeing their airports and staffed, and key Terms of Reference are being final- air transport operations through a combination of re- ized. The procurement process for the elaboration of gional and Saint Lucia’s specific technical assistance key studies launched includes: (i) a COVID CRSS strat- activities. Under this component, activities include (i) egy, (ii) firefighter control room upgrade and airfield re- review and gap analysis on institutional and operational silience plan, and (iii) the design study for Hewanorra management of the airports in Saint Lucia, (ii) capacity International Airport’s airfield improvements. building in the areas of air traffic control and airport management, including natural disaster and climate Contact person is Malaika Becoulet at mbecou- change resilience and air traffic safety and security let@worldbank.org. oversight, (iii) promotion of female professionals’ oppor- tunities through a gap analysis, recruitment action plan, SINT MAARTEN and training specialized for potential female profession- Sint Maarten Airport Terminal als on airport operation and management such as air Reconstruction Project (P167974) traffic control, as well as professional development for On 18 September 2019, the World Bank approved a existing female staff, (iv) preparation of a medium-team USD 72 million IDA Grant for the Sint Maarten Air- recovery strategy from the COVID-19 crisis, and (v) an port Terminal Reconstruction Project. The Project assessment on the use of unmanned aircraft systems. Development Objective is to restore the passenger The Financing Agreement was signed on 31 July 2020 capacity of Princess Juliana International Airport to and the project was declared effective on 16 October pre-Hurricane Irma levels with improved resilience 2020. A World Bank virtual supervision mission was towards hurricanes. conducted over the period 17-19 February 2021 with The project will contribute to the reconstruction pro- the objectives of (i) reviewing the bidding document and gram of Princess Juliana International Airport (PJIA) Terms of References for the activities to be procured in through restoring the passenger terminal function the next 6 months, (ii) reviewing and agreeing on activi- with improved resilience to future hurricanes and ties to be launched in the next year, and (iii) agreeing safety of the airport. The program includes the recon- on the scope of COVID-response activities (strategy struction of the passenger terminal as well as other study), (iv) reviewing the disbursement and financial key airport facilities such as the air traffic tower, fire- management arrangements, (v) discussing regionally- fighter facilities, fuel farm relocation, and runway re- coordinated training activities and ICAO compliance habilitation. As requested by the Government of Sint screening, and (vi) confirming progress on actions listed Maarten (GoSM), the project will focus on the termi- in the Environmental and Social Framework instruments nal reconstruction, which is the most critical and the and plan for virtual consultations. Implementation pro- largest work, while keeping the existing building gress was achieved to enable the launch of key activi- structure. The project is a USD 129 million operation ties, including the following: financed by a USD 92 million World Bank managed (i) improvements, and the COVID-19 Response Strate- Trust Fund Grant (TF), USD 50 million European In- gy Study. vestment Bank (EIB) loan, and USD 7 million of counterpart funds. The Project has four components: (ii) The recruitment process is ongoing for four out of (i) Reconstruction of the PJIA terminal facilities, (ii) seven Project Implementation Unit personnel Capacity Building of and Project Management by (Project Manager, M&E Specialist, and Procure- PJIAE, (iii) Capacity Building of and Project Manage- ment Officer, E&S Specialist). ment by the Government of Sint Maarten, and (iv) (iii) The terms of reference are finalized for the remain- Support of PJIAE Operations. The first component ing three personnel (Air Navigation Specialist, Air- will support the reconstruction of the PJIA terminal port Structural Specialist, Short-term International facilities to restore airport function and improve its Procurement Consultant). resilience to hurricanes through terminal facility res- toration and equipment reinstallation (passenger (iv) An advanced draft o the Project Operations Manual boarding bridges, entrance doors, dry walls, furni- was developed. ture/counters, electrical and IT systems, baggage 47 | AIR TRANSPORT ANNUAL REPORT     handling systems, security installations, and firefight- the GoSM. This is needed to cover the total cost of er facilities). The second component will support, construction. The contract for terminal reconstruction among others, operating costs required for meeting was awarded in July 2021 and signed in August the Bank’s requirements on environmental and so- 2021. Contract commencement and handover of site cial safeguards and fiduciary. This component will took place in October 2021. The Project Implementa- also finance capacity building activities such as resil- tion Unit is fully staffed and mobilized. This compo- ience and air traffic safety management, based on nent also finances other specialists and project au- the need assessment during the implementation. dits. An evolution in the key indicators is expected in The third component will support, among others, the coming review period now that the main works training capacity building activities for the GoSM, in- are being launched, and this will be updated regular- cluding airport management and governance. The ly. fourth component will support the operations of Prin- Contact person is Shruti Vijayakumar at svijaya- cess Juliana International Airport Operating Compa- kumar@worldbank.org. ny N.V. (PJIAE) through the financing of Select PJI- AE Operating Expenditures so that PJIAE can con- tinue PJIA’s operations without interruption during the construction period. An additional financing of USD 20 million was ap- proved in December 2021 and is pending signing by 48 | AIR TRANSPORT ANNUAL REPORT     SOUTH ASIA Project Highlights 49 | AIR TRANSPORT ANNUAL REPORT     BHUTAN Center for Hydrology and Meteorology (NCHM) to Hydromet Services and Disaster Resilience improve hydromet monitoring, forecasting, and ser- Regional Project (P154477) vice delivery to priority sectors, and (ii) the third com- In FY2017, the Bank approved a USD 3.8 million IDA ponent, which focused on designing and piloting a Grant to the Royal Government of Bhutan for a Hy- decision support system for delivering agromet ser- dromet Services and Disaster Resilience Regional vices to farmers in selected districts of Bhutan. The Project. The Project Development Objective is to results reported are an improvement in the accuracy strengthen Bhutan’s capacity for hydromet services of 72-hour weather forecasting, development of a and disaster preparedness. The project included Flood Forecasting Decision Support System, im- three components: (i) Hydromet Services Improve- provement in aviation met services and that of the ment, (ii) Disaster Preparedness and Response Ca- Department of Agriculture through the development pacity Improvement, and (iii) Design of an Agromet of an Agromet Decision Support System. The second Decision Support System. outcome was achieved through the second compo- nent, which focused on strengthening the capacity for The project was signed on 21 September 2016 and disaster preparedness of the Department of Disaster became effective on 3 October 2016. The project Management (DDM) and relevant agencies. The pro- closed on 30 June 2021 with implementation over ject was instrumental in (i) strengthening emergency four years and eight months. The project was initially communications and developing a disaster manage- supported by three Trust Fund grants. Both Project ment information system for pre-crisis data by DDM, Development Objective outcomes were substantially (ii) strengthening emergency helicopter services achieved: (i) to strengthen Bhutan’s capacity for hy- through the establishment of four helipads, (iii) pro- dromet services, and (ii) to strengthen Bhutan’s ca- curement of two fueling stations, and (iv) trading of pacity for disaster preparedness. The first outcome four Bhutanese helicopter pilots and building the ca- was achieved through (i) the first component, which pacity of key agencies. focused on strengthening the capacity of the National Key achievements in the aviation related activities under the first outcome include strengthening of avia- tion meteorology. The aviation weather operation system of Paro International Airport was strength- ened through the installation of a ceilometer, AWOS, and a wind profiler, and that of Bumthang Domestic Airport through the installation of a ceilometer to im- prove the safety of flight operations. Hands-on train- ing was provided for operational staff to utilize this equipment. Key achievements in aviation related activities under the second outcome include the strengthening of emergency helicopter services:  Strengthening of helicopter operations for emer- gency services. The project built the institutional capacity of the Royal Bhutan Helicopter Services Limited for critical emergency services. Four heli- pads were constructed under the project, at Mon- gar, Samtse, Phobjkha, and Lunana, respectively. The project also financed two portable fueling sta- tions for the helicopters to increase the flight dis- tance of the helicopters for operations that are further away from the Thimphu and Paro fueling stations. 50 | AIR TRANSPORT ANNUAL REPORT      Training of pilots. Four helicopter pilots of the stan Civil Aviation Authority needs improved and Royal Bhutan Helicopter Services Limited were more automated hydromet services, including fore- trained. It is expected that as they accumulate casts for flight operations. flying hours and gain further experience in flying, The project has three main components. The first the pilots will participate in firefighting, lifting of component (Hydro-meteorological and Climate Ser- emergency patients, and dropping of emergency vices) includes four sub-components: (i) Institutional supplies such as vaccines, in support of the coun- Strengthening and Capacity Building, (ii) Moderniza- try’s emergency response. tion of the Observation Infrastructure, Data Manage- Contact person is Arati Belle at ment, and Forecasting Systems, (iii) Enhancing Paki- abelle@worldbank.org. stan Meteorological Department (PMD) Service De- livery and Building Partnerships with the Private Sec- PAKISTAN tor, and (iv) Project Management, Systems Integra- Hydromet and DRM Services tion, and Monitoring and Implementation Support of Project (P163924) PMD. The second component, DRM, consists of three subcomponents: (i) Legal Policy and Institution- In May 2018, The Bank approved a USD 188 million IDA Grant to the Government of Pakistan for Hydro- al Strengthening, (ii) Infrastructure for Resilience, and (iii) Project Management, Monitoring, and Implemen- Meteorological and Disaster Risk Management Ser- vices (DRM) Project (PHDSP), whose development tation Support of National Disaster Management Au- thority (NDMA). The third component (Contingent objective (PDO) is to strengthen Pakistan's public Emergency Response Component (CERC)) will sup- sector delivery of reliable and timely hydro- port preparedness for a rapid response to climate meteorological and disaster risk management ser- and natural disasters, emergency, and/or cata- vices. One of the main objectives is to provide mete- strophic event as needed. orological services for aviation, given that the Paki- At the end of FY2020, a major restructuring of the project was completed, and the project was signed and declared effective in May 2020, after almost two years of Board approval during which implementation could not move ahead. The restructuring responds to the government's new and ambitious priorities on ecosystem restoration, climate resilience, and en- hancing community resilience to pandemic shocks and address socio-economic disruptions caused by COVID-19 pandemic. Since the signing, a number of upstream actions are underway or have been com- pleted, albeit at a slow pace due to the COVID-19 restrictions. Activities to strengthen services for the aviation sector will be supported under Sub- component 1.2 - Modernization of the Observation Infrastructure, Data Management, Forecasting Sys- tems and Services. The project is currently undergo- ing restructuring. Contact persons are Ahsan Tehsin atehsin@worldbank.org and Takeaki Sato at tsato@worldbank.org. 51 | AIR TRANSPORT ANNUAL REPORT     IBRD/IDA: AIR TRANSPORT ADVISORY HAITI, GUATEMALA AND BRAZIL a similar way that was created in Africa. Currently, Support for Remotely Piloted Aircrafts the World Bank team is working with consultants on (Drones) Projects and Operations in Haiti, the definition of pilot-projects in the three countries. Guatemala and Brazil PwC was selected through a competitive and open Project (P176634) tender to carry out this work, which is divided into the The GIF is supporting the World Bank in financing a following phases: consultancy of PricewaterhouseCoopers (PwC) to (i) Phase I: the Latin American and the Caribbean undertake the development of innovative pilot activi- Region (LCR) drone ecosystem, international ex- ties for Remotely Piloted Aircraft (RPA) usable in the periences and best practices, and future planning LAC region, with a focus on three main pilot coun- – analyzing the current drone ecosystem in the tries: Haiti, Guatemala, and Brazil, due to their re- LCR and establishing benchmarks based on best spective governments' interest in exploring this inno- practices from around the world. vative initiative and their potential to benefit from fu- ture sector initiatives. The project will entail briefly (ii) Phase II: Drone Operations in LCR– business analyzing successful existing examples, such as the model analysis and market potential value and African Drone Forum (Lake Kivu Challenge) carried size assessment in LCR. out by the World Bank Transport GP under the Un- (iii) Phase III: Pilot Project Proposals and Report– locking Drones for Development Project (P171737), providing a strategic roadmap with recommenda- other previous drone applications done in LAC, and tions for changes/evolution of drone initiatives, the Zipline project experience in Rwanda and Ghana. drone regulation, and drone-related processes for The review aims to identify key drivers and market each of the proposed countries (Guatemala, To- fundamentals for commercial operations, as well as cantins State, and Haiti). to assess opportunities, regulatory frameworks, mar- The original scope of work included the following: ket players, and barriers to developing drone applica- tions in the LAC context. Although some countries (i) International experiences and future thinking: an are exploring the possibility of drone use for deliver- assessment of successful and commercially fea- ing medicine and goods, operations are still rare. The sible international cases of drone operations, overall objective is for the World Bank to learn about identification of key factors, and potential adapta- a developing sector and provide potential future sup- tion to the LAC context. port in operations by including drones’ subcompo- (ii) Understanding potential market players. nents in the future implementation in the Region, as (iii) Regulatory frameworks: understanding the regu- well as to create a Regional Forum and Challenge in latory requirements for launching a commercial drone operation, minimum security and infrastruc- ture requirements, necessary elements to unlock commercial drone operations in the region, and an assessment of minimal required regulations and existing applicable regulations in Guatemala, Brazil (primarily in the State of Tocantins), and Haiti. (iv) Business models: identification of the most favor- able and commercially appealing business mod- els (such as concessions) for developing viable drone operations in the LAC context, particularly in the pilot countries. (v) Preliminary assessment of potential investment 52 | AIR TRANSPORT ANNUAL REPORT     needs at pre-feasibility level. (vi) Government commitment: an assessment of the government’s involvement in the project (for the pilot countries). (vii) Citizen engagement: for potential project imple- mentation, business models should consider in- corporating a citizen engagement angle, such as technology development, fabrication of drones or components, pilot training, and maintenance of necessary infrastructure and drones. (viii) Contribute to the development of pilot drone initi- atives by the Guatemala, Tocantins, and Haiti Governments: supporting the preliminary activities associated with the implementation of pilots that can be replicated across the continent. This could sues in order to begin implementing the pilots in both include regulatory sandboxes and innovative tech- countries. In Guatemala, the team met with the Minis- niques for procuring drone equipment or services, try of Health, which expressed interest in promoting resulting in the incorporation of emerging technol- commercial drone operations to overcome barriers to ogies into their pool of development tools. the supply of priority goods such as medical supplies The project now includes an additional scope of work and other health facilities caused by difficult road in- as follows: frastructure and logistical issues. In the State of To- cantins, PwC met with local government institutions (i) Quality assurance: verification, analysis, and pro- for several months to determine the scope of the pilot vision of comments and recommendations for the activity, which was included as part of the Tocantins Government of Tocantins on the pilot project’s Integrated Sustainable Regional Development Project technical deliverables. (PDRIS), which was implemented with World Bank (ii) Defining the exact requirements for data parame- funds until the end of December 2021. It was agreed ters and required hardware. that the pilot would support three Tocantins govern- (iii) Analyzing scalability of the results and provision of ment agencies (Naturatins, SEAGRO, and SEMARH) recommendations for future drone projects on and would focus on environmental protection, moni- larger scales. toring deforestation activities, and wildfire prevention. PwC also assisted the State of Tocantins in planning (iv) Analyzing and recommending resources required the pilot, identifying the right technological provider, by the Government of Tocantins to implement the and assisting the local government in justifying the technology (e.g., human, software, IT infrastruc- hiring of a local drone company (Xmobots) to gather ture, etc.). and process drone data, testing different technologies (v) Summary of lessons learnt from the preparatory to allow a deeper analysis for future deployment and and procurement phase. scalability. (vi) Analyzing the applicability of the drone technology IRAQ for all selected scenarios, IRAQ InfraSap for Connectivity (Transport, (vii)Defining the next steps and the high-level imple- Digital Development & IPG) mentation roadmap. Project (P174852) The infraSAP for Connectivity Project features data- PwC has already delivered and presented Phase I based analysis of the state of transport and digital de- and II reports, incorporating World Bank comments, velopment institutional and physical infrastructure, while Phase III is being implemented. PwC also met including key challenges and opportunities towards with the governments of Guatemala and Haiti, and green, inclusive, integrated, and sustainable connec- conducted additional research on country-specific is- tivity in Iraq. This includes a review of the regulatory 53 | AIR TRANSPORT ANNUAL REPORT     framework, government decisions, the trend in budget and reflect on and address where possible the regu- allocations for transport and digital development sec- latory, security and other risks. The roadmap will set tors, and opportunities for private capital mobilization. out the combination and potential sequencing of in- vestment and institutional, regulatory, governance, The scope of the InfraSAP encompasses the following and capacity building actions to unlock those solu- tasks: tions. (i) Analysis of infrastructure performance and invest- (v) Consultation towards reaching key stakeholders’ ment needs considering the current status of ser- consensus and securing commitment and owner- vice delivery in terms of access and quality and esti- ship of the road map and associated institutional mates of demand. and regulatory reforms. (ii) Analysis of the institutional, regulatory and govern- The above tasks will draw, wherever possible, on exist- ance environment for infrastructure investment in ing or on-going analysis at the sector or cross-cutting terms of capacity and systems for infrastructure level as well as several investment projects in the rele- planning, regulation, budget allocation, contractual vant sectors. oversight, and broader public investment and pro- curement capacity. (iii) Scoping of the potential contribution of the private IRAQ sector or other non-state solutions to meeting infra- White Paper on the Iraqi Air Transport Sector structure needs. This will include reviewing the cur- Development Priorities rent role of the private sector in delivering infrastruc- The prime objective of the White Paper on the Iraqi Air ture services in the country and the conditions thatTransport Sector Development Priorities, delivered in constrain the effectiveness or efficiency of those February 2021, is to establish the long-term policy ob- enterprises, as well as the opportunities and poten-jectives for the air transport sector in Iraq. The White tial barriers or constraints on other forms of private Paper discussed the current situation and outlook of the sector investments. air transport sector in Iraq, its policy and institutional (iv) Roadmap for meeting priority infrastructure needs, framework, some regulatory issues; and a high-level emphasizing the potential for private sector or non- review of the challenges faced by airports, airlines and state solutions that are sustainable and scalable, air navigation services. Specific decisions and actions 54 | AIR TRANSPORT ANNUAL REPORT     regarding each subject have been proposed to create a Promote private sector participation for the operation of favorable enabling environment that would unleash the selected infrastructure and provision of services and potential of the sector, resulting in robust traffic growth, build a strong and competitive air transport value chain job creation, and increased private sector participation to support these. in the industry. (iii) Rebuild the air transport infrastructure and services All recommended actions can be organized into two Restructure Iraqi Airways to bridge the current safety main categories, further divided into activities that could gaps, enhance the services provided, and prepare the become a programmatic approach to air transport in carrier to compete successfully in the domestic, region- Iraq. al, and international markets. Identify and reopen the air 1. Social reforms transport infrastructure through effective and positive control of the aerodromes of the country as special de- The sectorial reforms will address the governance is- velopment tools. sues of the sector, strengthen the regulatory environ- ment, and ensure the sustainability of the services pro- The execution of the recommendations of the White vided. Paper to transform the Iraqi air transport sector along the lines presented can be carried out over a period of (i) Targeted and integrated institutional reform four years and would require an estimated budget of The institutional reform will provide sound governance USD 200 million. of the air transport sector, through a clear leadership UZBEKISTAN that addresses the needs of the various stakeholders. It Project (P171028) will encompass the creation of a Civil Aviation Board, The World Bank has been continuing its support to the the drafting and approval of a new civil aviation law, a government of Uzbekistan to reform the aviation sector strengthened Iraqi Civil Aviation Authority (ICAA), a under the second phase of the Reimbursable Advisory clear separation between service delivery and over- Services (RAS Phase 2) signed on 17 January 2020. sight, as well as removing private sector participation The second RAS focuses on developing aviation sector limitations. policies, improving the competitiveness of the national (ii) Strengthened regulatory environment and planning airline, the sustainability of air transport service provid- The reforms will unleash the potential for growth and ers, and institutional capacity building in the sector gov- inclusiveness of the sector, through targeted training ernance. Ultimately, the reform is expected to prepare and capacity building of authorities, and ensure sustain- the sector to meet growing tourism demand and stimu- ability through the implementation of clear and transpar- late increased competition. ent funding mechanisms, through fees and charges es- This work is a continuation of the first RAS (RAS Phase tablished in line with industry best practices and the re- 1) completed in 2019, under which the World Bank quirements of ICAO. Group (WBG) advised the Government of Uzbekistan 2. Infrastructure and service enhancement (GoU) on introducing a modernized organizational structure of the aviation sector in line with international In the short term, important investments are necessary practices, assessed all core business areas of the na- to bridge the current safety and capacity gaps in the tional airline company and recommended business airport infrastructure and operations and to restructure model options for the airline’s sustainability, and con- Iraqi Airways to meet international safety standards as ducted a preliminary assessment of airport PPP models well as to prepare it to compete in the domestic, region- in coordination with the IFC transaction advisory team. al, and international markets. The RAS support resulted in the GoU embarking on (i) Safety critical and capacity infrastructure works fundamental reform in the aviation sector through the enactment of the Presidential Decree 5584 on 27 No- Execute safety critical infrastructure works and short- vember 2018. This led to the unbundling of the previ- term capacity enhancement program (at Baghdad Air- ously vertically integrated monopoly National Air Com- port in particular), while promoting private sector partici- pany “Uzbekistan Airways”, the creation of policy- pation for longer term sustainability. making body - Ministry of Transport (MOT), and the (ii) Boost private investments and spillovers in the air separation of the airline from airport operations as well transport value chain as from policy-making and regulatory functions. The 55 | AIR TRANSPORT ANNUAL REPORT     reform also sent an important signal to the private sec- making functions in the newly established Ministry tor and opened PPP opportunities in Uzbekistan’s air- of Transport; and ports. Through an effective partnership with IFC and (ii) Component B: Support for strengthening the tech- GIF, a strategic advice was also provided on various nical regulatory oversight capacity of the Civil Avia- options for attracting the private sector into airport tion Agency (CAA). modernization and operations. II. Part 2 focuses on the implementation of unbun- The support under the second phase has been assist- dling activities and the restructuring of State ing the GoU in the implementation of the ongoing sec- Owned Enterprises (SOEs), covering the following tor restructuring by: (i) strengthening capacities in the areas: sector, including that of the policymaking and regulato- ry oversight, (ii) formulating a National Aviation Policy, (i) Component C: Support for establishing and com- (iii) enhancing the performance and sustainability of mencing operations of “Uzbekistan Airport” Joint- SOEs in the aviation sector in the context of the cur- Stock Company and its subsidiaries; rent unbundling efforts, and (vi) facilitating private sec- (ii) Component D: Support for the restructuring pro- tor investment in the sector. The RAS Phase 2 is struc- cess of “Uzbekistan Airways” Joint-Stock Company tured along the components presented below: and the preparation of a detailed Business Plan; I. Part 1 comprises required institutional and regula- and tory reform actions, including: (iii) Component E: Support to the restructuring of (i) Component A: Support for establishing policy- “Uzbekistan Airways Technics” (UAT) LLC. 56 | AIR TRANSPORT ANNUAL REPORT     The WB air transport team has been working through- mechanics service and the associated risks for the out the pandemic period on a remote basis, but during company. The team has revised the UAT Business June - December 2021, the team conducted three mis- Plan and Roadmap, taking into account the mission sions to Uzbekistan: discussions and additional findings, and has sub- 1. In June 2021, the team carried out the first mission mitted it to the GoU in June 2022. The revised to Uzbekistan post-pandemic to present to the Gov- Business Plan also reflects the potential impacts of ernment the draft Business Plan and a Roadmap the war in Ukraine and sanctions in Russia on the for restructuring Uzbekistan Airways (UHY) JSC MRO business in general. delivered by the RAS team to the GoU in April 3. This third technical mission in 2021 took place in 2021, and to provide hands on support to UHY on implementation of the Business Plan’s recommen- dations. During the mission, the team worked closely with the various technical departments and management of UHY to discuss the analysis and recommendations presented in the Business Plan and agree on the airline’s new organizational struc- ture in line with best international practice. The team also provided three training sessions to the various departments of UHY on the following: (i) training on route profitability analysis and fleet strat- December with the objective of finalizing the activi- egy to the commercial, finance, and strategy de- ties on Flights Operations (OPS) safety under the partments, (ii) training sessions on passenger han- Aviation Safety Component, which included hands- dling and passenger services for the ground opera- on support to the Civil Aviation Agency (CAA) staff tions staff of UHY, and (iii) training on customer ex- in charge of OPS certification and safety oversight perience to the flight attendants and pilots. Follow- to ensure compliance with ICAO requirements and ing the visit, in July 2021, the team submitted the recommendations of the last ICAO Audit. During revised UHY Business Plan and Roadmap, taking the mission, the RAS team visited the CAA facilities into account the mission discussions and findings, for training OPS Inspectors, reviewed the status of which were later accepted by the Ministry of implementation of the OPS Corrective Action Plan Transport and Uzbekistan Airways JSC. (CAP) for the elements in OPS that were non- 2. In September 2021, the WB team conducted anoth- compliant with the ICAO Safety Audit, and re- er technical visit to Uzbekistan, the objectives of viewed the implementation status of the new Flight which were to present to the Government the draft Operations Inspector Training Manual and Flight Business Plan and Roadmap for restructuring Uz- Operations Inspector Handbook, both prepared bekistan Airways Technics (UAT) LLC submitted to with RAS team support. The WB also provided the Ministry of Transport on 22 May 2021 and to hands-on training to the CAA OPS staff on the provide hands-on support to UHY and UAT on im- practice application of the Flight Operations Inspec- plementation of the Business Plan’s recommenda- tor Handbook and on mandatory oversight of air tions. During the mission, the team worked closely operator certificate (AOC) holders in line with the with the Technical Airworthiness Department of principles of the ICAO Universal Safety Oversight UHY and with technical personnel of UAT on align- Audit Program (USOAP). The main outcomes of ing aircraft maintenance practices and staffing re- the RAS team’s support include the following: (i) quirements with international standards. The team the progress achieved by the CAA in implementing also visited the maintenance facilities of UAT, the OPS CAP actions with almost all findings on which were found to be adequate and compliant non-compliance with ICAO Standards and Recom- with technical requirements. Following the visit, and mended Practices (SARPs) closed; and (ii) the at the request of the Government, the RAS team Flight Operations Inspector Training Manual and prepared a technical note on the best approach for Flight Operations Inspector Handbook adopted and implementing some of the recommended actions endorsed by the CAA in August and December with regard to the discontinuation of the on-board 2021, respectively. 57 | AIR TRANSPORT ANNUAL REPORT     IATA tion Commission on critical market identification, mer- Guidance for Vaccine and Pharmaceutical ger control, and competition advocacy with regulators. Logistics and Distribution (ii) Collaboration with the Economic Development Edition 1 - 16 November 2020 Board on market access and FDI strategies. The World Bank contributed to the International Air (iii) Collaboration with the Ministry of Education on ear- Transport Association's Guidance for Vaccine and ly childhood education. Pharmaceutical Logistics and Distribution: a set of con- siderations and awareness on large-scale handling, (iv) Discussions at the Ministry of Finance on the de- transport, and distribution of vaccines, pharmaceuti- sign and implementation of a planning function. cals, life science, and medical products. A joint infor- (v) Development of a trade data dashboard, as well as mation sharing forum was established to facilitate and ongoing discussions with the Statistics Office to house ensure industry preparedness when vaccines for this dashboard permanently. COVID-19 were to be approved and available for distri- bution. It follows that the document revolves around (vi) Co-creation and presentation of CEM contributions planning, preparing, and looking at the global consid- to a new COVID-19 research platform in Mauritius that erations as well as drawing upon lessons learned dur- coordinates and facilitates exchange among academ- ing the crisis, setting a precedent for the future, and ics, development partners, and the private sector on identifying how the existing procedures can be effi- assessing COVID's impact. ciently adapted to ensure the fast and safe movement BRAZIL of products using a risk-based approach. The paper Brazil Infrastructure Policy Assessment acknowledged that although the set of considerations (P174544) are for the distribution of COVID-19 vaccines, the cur- The development objective of the Brazil Infrastructure rent capacity required for routine immunity immuniza- Policy Assessment is to develop innovative and tions must be protected and overall capacity expanded thought-provoking policy advice designed to stimulate to accommodate COVID-19 vaccines. The document infrastructure development in Brazil while supporting would be subject to regular review and revision as ad- the country’s COVID-19 recovery process and promot- ditional information and best practices are made avail- ing long-term sustainable and equitable growth. able by the various stakeholders. The ASA will apply cutting-edge innovative insights MAURITIUS and new knowledge on the policy reforms needed to Mauritius Country Economic Memorandum stimulate and sustain infrastructure development and (P171584) to strategically inform and scale up policy dialogue with The Mauritius Country Economic Memorandum (CEM) the Government of Brazil. Efforts will emphasize the was approved by the World Bank on September 6, importance of developing a resilient, sustainable, and 2019 and completed on 19 March 2021. Following a inclusive response to Brazil’s COVID-19 recovery pro- high-level dissemination event with the Minister of Fi- cess. Adopting a multi-year programmatic approach, nance, the Central Bank governor, and their teams, the this ASA will roll out a series of novel and thought- CEM report was shared with the government in its final provoking policy assessments underpinned by robust form in March 2021.This has led to the identification of quantitative and qualitative evaluations of Brazil’s infra- additional inputs requested by the Minister for the structure sector. To accurately identify key priority are- preparation of the 2021/22 budget, including on skills as for Brazil and to ensure options are creative yet formation, labor market policy, exchange rate manage- meaningful and effective, a knowledge-exchange plat- ment, and state support. Short thematic policy notes form (KEP) comprising external experts, government were already prepared in April 2020, and preliminary policy assessment and development process. Finally, results have been shared with key counterparts data resulting from these analyses will be made availa- throughout the process. This has led to a number of ble in a user-friendly, accessible format. technical follow-up engagements through which the The ASA will generate two key outputs: team provided policy advice and implementation sup- port, including the following: (i) A policy matrix to stimulate and sustain infrastruc- ture development while supporting Brazil’s COVID- (i) Continued collaboration with the Mauritius Competi- 58 | AIR TRANSPORT ANNUAL REPORT     19 recovery process and promoting medium-, to ings on (i) the air transport institutional framework in long-term, equitable, and sustainable growth. Brazil, (ii) Brazil’s score under the ICAO USOAP audit results with a focus on the country’s environmental re- (ii) A series of policy and research papers—and where mediation plan, (iii) sectoral context, connectivity, and practical, implementation strategies, tools, compar- competition in Brazil, (iv) private sector involvement, ative case studies and alternative analyses, and (v) an overview of infrastructure and service delivery in pilots—comprising deep fives into a select number the aviation sector, (vii) the impact of COVID-19, and of priority areas identified in the policy matrix. (viii) recent policy developments in Brazil. Activities will focus on: (i) informing the government’s strategic planning process for infrastructure, (ii) identi- South Africa fying investment challenges and service delivery short- The COVID-19 Pandemic and Air Transport falls, and (iii) assessing policy gaps and weaknesses in Southern Africa: Analyzing Airlines’ Re- in institutional strength and regulatory frameworks. A form and Policy Responses sequential, phased approach—whereby resources The objective of this Advisory Services and Analytics evolve and grow year after year, accompanied by con- (ASA) is to explore policy and operational strategies to tinual client dialogue—will be adopted. build back a safe and competitive air transport sector in the aftermath of the COVID-19 crisis in select South- In February 2021, a document was prepared by an ern African countries. It reviews the status of the sector independent air transport consultant with the supervi- in Botswana, Eswatini, Lesotho, Namibia, and South sion of the World Bank team to conduct background Africa by assessing the current and expected needs research on recently enacted policy reforms in Brazil’s and by exploring various strategies and policies to aviation sector (topics of interest include but are not guide the World Bank Group’s policy position and po- limited to (i) alignment with international standards, (ii) tential operational responses. The ASA mainly focuses connectivity, (iii) competitiveness, (iv) decarbonization, on the state-owned airlines in the region and explores (v) economic growth, (vi) private sector, (vii) productivi- airlines’ reform options and policy directions to re-build ty, and (viii) regulation), and prepare technical and pol- an air transport sector that meets international, region- icy briefs. The document represented preliminary find- al, and local demands. It builds on: (i) a recent World 59 | AIR TRANSPORT ANNUAL REPORT     Bank Policy Note which reviews pre-COVID-19 sector by the team and provided guidance on areas of discus- challenges in Africa and recommends operational and sion. The aim of the concept note was to assess the policy responses to mitigate the impact of the pandem- corporate governance arrangements, operations, and ic, and (ii) a technical paper on the impact of the pan- fiscal sustainability of the carrier to support the nation’s demic on air transport connectivity in the Southern Afri- economic development. The tasks involved (i) as- can Region. sessing the corporate governance arrangements of Lao Airlines, (ii) performing a cost-benefit analysis of its op- The study thus explores salient airline restructuring and erations, (iii) assessing the adequacy of the five-year regulatory reform challenges and opportunities in the recovery plan, and (iv) providing recommendations for Southern African region to distil operational and policy areas of improvement. The task will build on previous relevant insights for a sustainable recovery. Prior to the World Bank support to Lao Airline in 2020 during the COVID-19 pandemic crisis, the air transport sector in assets and liabilities restructuring. Africa faced multipronged challenges, including those related to economic regulation, profitability, safety, se- The first task will provide a brief overview of the legal curity, and sustainable financing of critical infrastruc- and regulatory framework, scope, activities and recent ture. While the pandemic has exacerbated these chal- developments in the airline industry which includes the lenges, it also presents opportunities to tackle some of status of the implementation of ASEAN open skies poli- them. cy and ASEAN air transport agreements. It will also an- alyze the strategic relevance of the airline to regional The main policy responses to the crisis and to the lega- aviation market and Lao economy in general, and the cy problems of the air transport sector in the region are implications for restructuring. It will include a detailed phased in two steps: (i) immediate policy actions for air assessment of the impact of COVID-19 on the country’s travel recovery, and (ii) a menu to short-to-medium term economy and passenger travel, along with an expected actions for a competitive and safe air transport sector. recovery trajectory. The three main immediate policy directions for a faster recovery of air travel are: facilitation of market accessThe fiscal risk assessment will provide a deep dive into for airlines, establishment of a common travel and cross the macro- fiscal impact of the airline, debt, contingent -border control for tourism restart, and provision of di-liabilities, arrears, etc. The assessment will focus on the fiscal and debt trajectories of Lao Airlines, debt compo- rect financial aid. The list of short-to-medium term policy responses spans in eight strategic directions, which in- sition, the elasticity of its revenues to macroeconomic clude: shocks from changes in commodity prices and COVID- 19, exchange rates, and domestic and international in- 1. Development of industrial policy for air transport terest rates, and their impacts on its balance sheets. 2. Promotion of private sector solutions Furthermore, it will include a detailed assessment of the 3. Liberalization of market access current and future expected liquidity position of the air- line and potential additional equity funding support from 4. Liberalization of foreign ownership and control the government to adapt to a post-COVID-19 recovery 5. Provision of essential/lifeline connectivity period. It will look at transfers in terms of subsidies from the government, dividends transferred to the govern- 6. Restructuring of state-owned carriers and routes ment, outstanding arrears, and to whom these arrears 7. Facilitation of market consolidation are owed (including creditors, private suppliers, inter- 8. Improvement of safety standards and oversight ca- SOE transactions, and Government of Lao contingent pacity. liabilities). The corporate governance assessment will analyze the LAOS governance and institutional framework, performance Support to Lao Airlines Corporate Govern- monitoring, procurement and contracting, value for ance and Fiscal Risk Review money, business process, transparency, and accounta- A Virtual Concept Note review meeting for Lao Airlines bility mechanisms of the airline. It will also assess the Corporate Governance and Fiscal Risks Assessment overall functioning of the Board of Directors as well as prepared under the Financial Management and Ac- their appointments process, and the effectiveness of the countability Umbrella was held on 24 June 2021. The state ownership and oversight functions. It will review meeting recognized the areas of agreement identified the financial management system, including, budgeting 60 | AIR TRANSPORT ANNUAL REPORT     and resource allocation, accounting system and records (iv) Prepare a men of policy and operational recommen- keeping, internal controls and audit, financial reporting dations for the World Bank Group n the air transport and compliance with international accounting stand- sector as part of recovery response. ards, and asset management. The assessment will also (v) Carry out consultation with key stakeholder in key evaluate the Human Resources management practices, CMU countries to provide just-in time support and policies including gender, inclusion and disability is- events (webinars) on the fast-changing impacts of sues, and performance management system. COVID-19 on the sector. The five-year recovery plan review will provide an inde- In sum, the ASA will explore strategies to build back a pendent review of the proposed Lao Airlines Recovery safe, secure, and competitive air transport sector, fo- Key plan and business process. This assessment will cusing on the following high level policy and operational include a detailed analysis of (i) strengths and weak- questions: nesses of the airline vs. competition with benchmarking of key metrics, (ii) fleet plan of the airline, including any (i) In the current environment, under what conditions planned renewal to newer, more fuel efficient aircraft as would the private sector consider it feasible to par- well as optimization of the overall fleet, especially given ticipate in different segments of the air transport the impact of COVID-19, (iii) suitability of fleet composi- market (international, regional, local) if relevant le- tion to the market and operating environment, (iv) re- gal regimes allowed such participation alongside or quirement and plan for employee optimizations, (v) in replacement of the purely public model (such as plans to update business model including systems & state-owned national carriers)? processes, technology, aircraft maintenance etc. it will (ii) What are the barriers to private sector participation also provide an in-depth operational profitability analy- in the aviation sector? sis of the carrier in the context of the current and ex- pected future realities of the airline industry and other (iii) Under what conditions can public funding of airlines local market conditions in Laos such as the develop- and airports be justified, in the context of fiscal pres- ment of the hi-speed railway. sure faced by countries in a post-COVID economic environment? In particular, where would public South Africa funding be more suitable across the value-chain COVID-19 and Air Transport: Analyzing (e.g., safety and security systems, cargo handling Policy and Operational Responses for infrastructure, etc.) in a constrained fiscal space? Quicker Economic Recovery in Selected SA (iv) What are alternative approaches that would safe- Countries (P176752) guard basic connectivity for isolated low-income The objective of this Advisory Services and Analytics countries? (ASA) is to review the status of the aviation sector in Namibia, Botswana, and South Africa by assessing the (v) Identify opportunities that could exist for regional co- current and expected needs and by exploring various operation and assess how such regional coopera- strategies and policies that ultimately guide the World tion could be structured. What roles can regional Bank Group’s policy position and potential operational entities (e.g., SADC, ECOWAS, COMESA, etc.) responses. The ASA will undertake the following five play for harmonization and optimization of air main activities: routes? (i) Analyze the air transport connectivity landscape in (vi) What potential aviation models could exist for re- Africa pre-COVID-19 crisis with a focus on challeng- gional cooperation? es affecting the sector such as connectivity gaps, (vii)What should be the role of development partners cost structures and the impediments of public / pri- like the World Bank Group? vate sector interventions. (ii) Assess the impact of the COVID-19 pandemic on air transport connectivity in the Southern African region. (iii) Proposes airlines restructuring options relevant for the Southern African region. 61 | AIR TRANSPORT ANNUAL REPORT     KENYA Kenya Aviation Outlook (P175686) The Government of Kenya (GoK) acknowledges the The ASA informed how the World Bank Group can ra- following top priorities to further develop air transport: tionalize its support to Kenya’s public service obliga- (i) the need for a national policy to guide the sector de- tions for safe and secure aviation systems, including velopment, (ii) validation of its National Airport Master relevant international airport investments constrained Plan capacity expansion requirements and implementa- by the disruption in sector revenues, while providing an tion strategy, (iii) strengthening and enhancing security engagement roadmap predicated on institutional ar- at major airports, and (iv) improving its aviation over- rangements that ensure a transparent and accountable sight capacity, including human capital. The scope of governance framework for the air transport sector. the analytical work was limited to examining the poten- The ASA enabled the World Bank to concurrently eval- tial implications of a proposed publicly owned Kenya uate and provide informed feedback on the implications Aviation Holding Company governance structure, ac- of the proposed policy positions expected to guide the countabilities, and debt management obligations as sector restructuring process, and the degree to which part of a sector-wide restructuring. This narrow focus public sector financing must be substituted for private was driven by the absence of an aviation policy for sector participation in the near-term due to current ex- Kenya and a 2020 proposal to Parliament for consoli- ceptional circumstances. The decision by Parliament on dating national aviation assets and financial interests, consolidating multiple operational aviation assets into including renationalization of a debt-ridden national air- one State-Owned Enterprise (SOE) faced serious op- line and merger with a commercially profitable SOE air- position form key sector political, business and union port operator. stakeholders thereby halting its implementation in 2021. 62 | AIR TRANSPORT ANNUAL REPORT     IFC AIR TRANSPORT PROJECTS: The IFC provides financing to private sector companies and has traditionally financed air carriers and airport infrastructure projects. IFC ACTIVE AVIATION PORTFOLIO: Major active projects financed by the Interna- tional Finance Corporation (IFC) include Sofia Airport in Bulgaria, Queen Alia Airport in Jordan, the Zagreb Airport in Croatia, the Enfidha Airport construction in Tunisia, as well IFC PROJECTS as Belgrade Airport in Serbia. In addition, the IFC investment portfolio also includes Li- ma Airport in Peru and the 14 Regional Airports in Greece. In addition, IFC is active through the provision of Advisory Services for Kingston Airport (Jamaica), the Saudi Airports (26 in total), Sofia Airport (Bulgaria), Podgorica and Tivat (Montenegro), Beirut Airport (Lebanon) and Clark Airport (Philippines). 63 | AIR TRANSPORT 65 | AIR TRANSPORT ANNUAL REPORT ANNUAL REPORT     12 | AIR TRANSPORT ANNUAL REPORT 64 | AIR TRANSPORT ANNUAL REPORT       IFC PROJECTS IFC’S EXPOSURE PROJECT COUNTRY DESCRIPTION AMOUNT (USD) (as of end of TYPE CODE FY2021) USD* IFC A Loan USD 141.2 mil- lion; USD 160 million B Loan Queen Alia International Airport: Re- USD 295 million; USD 107.3 million in (26182) and 26182, 34536, (34536) Jordan habilitation of both airside and land- USD 148.4 million for loans, and USD 6.6 mil- 26864, 26685 side facilities IFC’s own account lion in swaps IFC Client Risk Management - Cross Curren- cy Swaps (26864, 26685) KQ Airways: Expansion program con- sisting of the acquisition of 9 Boeing Kenya1 31650 USD 25 million USD 19.4 million Equity 787 Dreamliner aircrafts and 10 Em- 65 | AIR TRANSPORT ANNUAL REPORT braer 190 aircrafts Lima Airports Partnership: Financial Peru2 24489 restructuring and assistance in con- USD 20 million USD 13.4 million Equity junction with Fraport TAV Tunis Equity: Construction of a IFC A Loan, new airport in Enfidha, with an initial USD 253 million; Subordinated USD 34.6 million in Tunisia3 26913 capacity of 7 million passengers per USD 184 million for Loan, Syndi- loans year, and rehabilitation of the airport IFC’s own account cated B Loan, in Monastir Equity 1. Equity for all projects is expressed at the cost of acquisition. 2. Equity for all projects s expressed at the cost of acquisition. 3. Note that the equity portion was sold, so the only remaining balance is USD 34 million of dept.   IFC PROJECTS IFC’S EXPO- PROJECT COUNTRY DESCRIPTION AMOUNT (USD) SURE (as of end TYPE CODE of FY2020) USD* Zagreb Airport: Construction and op- USD 72.65 million for USD 3.4 million in A Loan, Equity, 4 eration of a new passenger terminal Croatia 31969, 34380 IFC’s own account loans and USD 14.4 and C Loan and related infrastructure at Zagreb (31969) million in equity (31969) Airport and the existing facilities. USD 97.4 million A Loan and USD 3.8 USD 101.8 million in A Loan and Cli- Greek Airports (Infrastructure services 37655 million swap loans and USD 7.5 ent Risk Man- upgrade at 7 airports) (Commitment in Eu- million in guarantees agement   ros) Greece USD 65.9 million A Greek Airports B (Modernization of 7 Loan and USD 2.8 USD 70.8 million in A Loan and Cli- 38905 additional airports in key Greek is- million swap loans and USD 5.0 ent Risk Man- lands) (Commitment in Eu- million in guarantees agement 66 | AIR TRANSPORT ANNUAL REPORT ros) FCS RE-Ravinala: Upgrade and ex- USD 43.5 million A pansion of the two international air- Loan, USD 109.4 mil- USD 27.8 million in A Loan, Parallel Madagascar 36882 ports of the country, with the help of lion Parallel Loan and loans and USD 7.7 Loan and MIGA the Emerging Africa Infrastructure USD 71.3 million MI- million in guarantees Guarantee Fund. GA Guarantee EUR 72 million A Belgrade Airport: Capacity increase Loan for IFC's own USD 66.3 million in A Loan and B Serbia 41123 and upfront concession fee for the air- account plus EUR loans Loan ports authority 110 million B Loan 4. Equity for all projects is expressed at the cost of acquisition.     IFC PROJECTS IFC’S EXPO- PROJECT COUNTRY DESCRIPTION AMOUNT (USD) SURE (as of end TYPE CODE of FY2020) USD* Sofia Airport: Financing capex for EUR 30 million A modernization and upgrade of air- USD 11.9 million in Bulgaria* 25713 Loan for IFC’s own A Loan port’s infrastructure, and concession loans account fees Agila (Cebu Pacific): The financing will USD 125 million for provide Cebu Pacific with a longer li- IFC and IFC AMC Quasi-loan quidity runway to help the company Emerging Asia Fund, USD 62.5 million in Philippines* 44179 (convertible 67 | AIR TRANSPORT ANNUAL REPORT withstand the effects of the COVID-19 Indigo Partners for quasi-loan bond) pandemic until economic activity and USD 125 million, for travel demand recover a USD 250 million *New Investment   IFC: PROJECT HIGHLIGHTS PHILIPPINES BULGARIA Agila - Cebu Pacific Sofia Airport Project (P44179) Project (P25713) A leading player in the Philippine aviation industry In 2020, SOF Connect signed a 35-year conces- for 25 years, Cebu Pacific is the largest airline in sion with Bulgaria’s Ministry of Transport, Infra- the country, providing low-cost air transport ser- structure, Information Technology and Comms to vices within the Philippines, as well as to the rest expand, operate and maintain Sofia Airport. The of Asia and the Middle East. In FY2021, IFC, the project company is owned by Meridiam and Stra- IFC Emerging Asia Fund, a private equity fund bag and supported by Munich Airport as a third- managed by the IFC AMC, and Indigo Partners, a party operator. private equity fund managed by the IFC AMS, and In FY2021, IFC committed a EUR 30 million loan Indigo Partners, a private equity firm focused on to modernize and upgrade the airport’s infrastruc- air transport investments, invested USD 250 mil- ture, including refurbishing and optimizing terminal lion in Cebu Pacific in the form of convertible facilities, as part of a total EUR 480 million project bonds. Affordable air travel is essential to contin- cost. As the lead advisor, IFC’s CTA department ued growth in the Philippines, an archipelago na- helped the government design a competitive, tion of over 7,000 islands, that is deeply depend- transparent tender for this Public-Private Partner- ent on tourism (~12.7 percent of GDP in 2019). ship (PPP) - the first major PPP in Bulgaria in a Closed in early 2021, the investment will provide decade. IFC’s funding will go towards the upfront Cebu Pacific with a longer liquidity runway to help concession fee, refurbishment and optimization of the company withstand the effects of the COVID- the existing terminal facilities and aircraft gates to 19 pandemic until economic activity and travel de- boost efficiency and provide quality passenger mand recover. IFC played a key role in mobilizing services and commercial offerings, among others. Indigo, a globally experienced third party investor Closed in early 2021, this project was one of the and strategic partner. first major airport sector transactions to close in the region since the onset of COVID-19. 68 | AIR TRANSPORT ANNUAL REPORT     IFC: PROJECT HIGHLIGHTS SERBIA CROATIA Belgrade Airport Zagreb Airport Project (P41123) Project (P31969) In 2018, Vinci Airports won a 25-year concession for The IFC is supporting the development of a terminal the upgrade, expansion, operation and maintenance at Zagreb International Airport as part of a Public Pri- of Belgrade’s Nikola Tesla Airport. In FY2019, IFC vate Partnership (PPP). The new USD 450 million committed a EUR 182 million financing package for terminal, built by a consortium supported by IFC, is the airport’s development, including a EUR 72 million expected to contribute to economic growth and tour- senior loan for its own account and EUR 110 million ist activity. Tourism is a major driver of employment in mobilized funds from six commercial banks as part in Croatia, and improved infrastructure will develop of a total EUR 420 million project cost. Well- the sector and boost GDP. IFC is committing USD managed airports are economic engines that connect 72.65 million to the project, including a loan of up to people and goods to spur regional growth. As Ser- USD 47 million and an equity investment of nearly bia’s main hub, Belgrade Airport received 5.6 million USD 26 million. The concession includes financing, passengers in 2018 and is set to nearly triple its ca- design, and construction of the terminal, along with pacity by the end of the concession. The airport’s airport operations until 2042. upgrades and operations are expected to generate The new terminal is 65,000 square meters and has ~41,000 indirect jobs, enhance regional economic welcomed 5 million travelers per year since it opened integration and unlock the country’s tourism potential. in March 2017, compared to its previous capacity of The concessionaire transferred a EUR 501 million 2 million. An average of 400 new jobs were created upfront concession fee to the government and will during construction, and up to 700 at its peak. For invest EUR 400 million to upgrade the airport. The the first time in Croatia, private firms involved in a fiscal benefit of the upfront fee would be equivalent transport concession project have assumed passen- to 1.4 percent of Serbia’s annual GDP in 2017. This ger volume risks, enabling the country to upgrade is Serbia’s first infrastructure PPP and the transac- essential infrastructure without adding a burden to tion has the potential for a strong demonstration ef- state finances. fect in the region. 69 | AIR TRANSPORT ANNUAL REPORT     IFC: PROJECT HIGHLIGHTS MADAGASCAR Lima Airport Partners S.L.R. (LAP) had a 30-year Airports in Nosy Be and Antananarivo concession to operate the Jorge Chavez International Project (P36882) Airport (JCIA) in Lima, Peru. The concession term In FY2017, IFC approved the project for airports in can be extended to 40 years at LAP’s option and to Madagascar. The project consists of a 28-year De- 60 years by mutual agreement between LAP and the sign, Build, Finance, Operate and Transfer (DBFO) government of Peru. JCIA is the only commercial air- concession to rehabilitate, upgrade, expand, operate port serving Lima and is Peru’s primary international and maintain the two largest airports in Madagascar: airport, operating on a 24-hour schedule. It was, and Ivato Airport, serving the capital city of Antananarivo, remains, the principal hub in one of Latin America’s and Fascene Airport, located on the island of Nosy best performing economies and enabled the transfer Be, the country’s busiest tourist destination. The con- of control from a shareholder (Singapore Airport/ cession was awarded through an international com- Bechtel) to a strategic investor and airport operator petitive tender to Ravinala Airports. The Project Com- (Fraport AG), committed to the airport’s expansion pany’s shares will be owned by four reputable inves- and increased efficiency. tors, three of whom are existing IFC clients. It repre- Fraport AG Frankfurt Airport Services Worldwide sented an opportunity for IFC to invest in one of the (Fraport) owns and operates Frankfurt Airport in Ger- poorest countries in the world. The investment aimed many, the seventh largest airport in the world and the to expand the airports’ capacity while they remained second largest airport in Europe. Fraport’s manage- operational. ment was meant to add airport operation and man- PERU agement know-how and result in an upgrading of the skills of the local workforce. MIGA also provided Lima Airport Fraport with a guarantee for USD 11.5 million, to cov- Project (P24489) er its USD 12.8 million counter guarantee for a per- In FY2017, IFC approved the Lima Airport equity in- formance bond posted for the privatization of Lima’s vestment. It was for a 19.99 percent stake for USD airport. 20 million. At the time IFC considered the investment, 70 | AIR TRANSPORT ANNUAL REPORT     IFC: PROJECT HIGHLIGHTS TUNISIA Enfidha Airport Construction Project (P26913) In FY2018, IFC arranged a full financing package of EURO 135 million from IFC’s own account and a EURO 255 million syndicated loan, underwritten by ABN, So- ciété Générale, and Standard Bank. This was also to rehabilitate the existing airport at Monastir and operate bot under a 40-year concession. The airports were set to serve major tourism areas around the towns of Mo- nastir, Sousse and Hammamet on the Mediterranean Coast. This was the first PPP in the air transport sector in Tunisia and more broadly, in North Africa. Contact persons for all IFC Investment projects is Maria Lopez Conde at mlopezconde@ifc.org. 71 | AIR TRANSPORT ANNUAL REPORT     IFC: AIR TRANSPORT ADVISORY MANDATES The Infrastructure Advisory Services Department privatization path over the last 30 years, IFC has of the IFC provides advisory assistance to govern- participated in nearly a dozen airline transactions. ments on structuring and implementing (tendering) Unfortunately, many have proved to be difficult Public-Private-Partnerships (PPPs) in infrastruc- projects due to important sector-specific structural ture. IFC has undertaken more than 100 advisory reasons: transactions in over 67 countries over the last 20  Fixed-cost structure: Airlines tend to build up a years. IFC/World Bank's reputation for compe- legacy-costs base (staff and fleet) that is diffi- tence, transparency, and fairness allows it to play cult for a new owner to manage. In addition, the role of neutral partner to balance each party's fuel costs are beyond management’s control. interest, thus reassuring foreign investors, local During the period of higher oil price in 2011- partners, other creditors, and government authori- 2014, they accounted for as much as 30 per- ties. The two main domains in air transportation cent of the cost base (up from 15-20 percent in advisory services are private sector participation in 2009), and have since dropped with declining airports and air carriers. oil prices (variations according to individual air- 1) IFC Public-Private Partnerships (PPP) Advi- line hedging strategies). sory Mandates in Airports  Price-sensitive product: Demand for travel is Only a fraction of the world’s commercial airports highly elastic, especially in tourist markets. In are managed or owned by private sector entities. recessions, people forgo vacations for other However, as passengers carried by air transport consumer goods. Conversely, price reductions has neared 4.1 billion in 2017, and more than one- increase passenger numbers dramatically. third in value of all merchandise and goods were  Complicated demand chain: Customers often air freighted – Public-Private-Partnerships (PPPs) purchase tickets through travel agents, fre- in airport infrastructure will grow to meet invest- quently in a package with hotel accommoda- ment and required service standards. Airport PPPs tions. Since airlines rely on these other actors are useful approaches to meet both private and for their sales, if there are bottlenecks else- public sector objectives. where the aviation sector suffers. Of the various airport PPP models available, expe-  Overregulation: Bilateral agreements between rience shows that concessions and full divestiture governments, still prevalent in many parts of are most effective: the world, prevent competition from functioning  Concession Contracts (BOT, BOO, BOOT, normally. Open skies are being adopted, but BTO, etc.): State retains ownership of airport not in all countries. but transfers investment as well as operations 3) IFC Air Transportation Experience and management responsibilities to the private sector When undertaking a transaction advisory man- date, IFC provides a one-stop solution to govern-  Full Divestiture: Ownership, operations, and ments covering all aspects of the proposed trans- investment responsibilities are fully transferred action. One of the distinguishing features of IFC’s to the private sector. value addition is its ability to balance private and  In certain cases, a blend of first-phase BOT public sector interests and take into account sus- followed by public offering can maximize bene- tainable long term economic and social effects. fits. 2) IFC Public-Private Partnerships (PPP) Advi- sory Mandates in Airlines As the airline industry has proceeded along this 72 | AIR TRANSPORT ANNUAL REPORT     Selected IFC Advisory Mandates in Airports PROJECT NAME  COUNTRY  YEAR  MANDATE/RESULT  Manas Airport Kyrgyzstan 2022-ongoing Due Diligence Jakarta Airport Indonesia 2020-ongoing Due Diligence Dili Airport East Timor 2020-ongoing Due Diligence Grantley Adams Airport Barbados 2019-ongoing RFQ completed Montenegro Airports Montenegro 2018-ongoing RFQ completed Beirut Airport Lebanon 2018-ongoing Government approval stage Madinah Airport Saudi Arabia 2021 Restructuring support completed Successfully awarded to Munich Airport, Sofia Airport Bulgaria 2017-2020 Meridiam and Strabag consortium Nepal Airports Nepal 2016-2019 Strategic Assessment Clark Airport Philippines 2018 Awarded to Changi led consortium Norman Manley Airport Jamaica 2018 Awarded to GAP led consortium Samoa Airline JV Samoa 2017 JV Options Analysis Jacksons Airport Papua New Guinea 2017 Strategic Options Analysis Due Diligence / Project Structuring / Tender Jeddah Airport Saudi Arabia 2016 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 Galeao and Confins Airports successfully Brazilian Airports Brazil 2014 awarded to Changi and Zurich Airport led consortiums respectively Dili Airports East Timor 2014 Feasibility Study Completed Successfully awarded to TAV, Saudi Oger, Madinah Airport Saudi Arabia 2012 Al Rajhi consortium Male Airport Maldives 2010 Successfully awarded to MAHB - GMR Successfully awarded to Aeroports de Paris, Queen Alia Airport Jordan 2007 ADIC, J&P, Noor consortium Successfully awarded to Saudi Bin Laden Hajj Terminal Saudi Arabia 2007 Group, Aeroports de Paris consortium Successfully awarded to Abuja Gate-way Abuja Airport Nigeria 2006 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 Air Tanzania Tanzania 2002 49% sold to SAA Kenya Airways Kenya 1996 76% sold to KLM, financial investors 73 | AIR TRANSPORT ANNUAL REPORT     ADVISORY MANDATE EXAMPLE: SAUDI ARABIA IFC PPP Transaction Advisory Services (IFC PPP Advisory) acted as Lead Transaction Advisor in 2009-2011 to introduce private sector participation at Madinah International Airport in the Kingdom of Saudi Arabia (Madinah Airport), and a 25-year Build-Transfer-Operate (BTO) concession agreement was signed in 2011 between the General Authority of Civil Aviation (GACA) and the winning consortium comprised of TAV Airports, Saudi Oger and Al Rajhi (together the “Tibah” consortium). Madinah Airport was the first airport outside the US to achieve top level environmental / sustainability design and operational certification (LEED Gold) with IFC driven require- ments, thanks to numerous sustainability measures incorporated into the design, in addition to the significant development impact through continued high level service provision to pilgrims. Since its completion, the PPP concession was operating successfully with both the concessionaire and GACA satisfied with its financial perfor- mance which provided close to 55 percent of gross annual revenue share to the Government of Saudi Arabia (GoS). In the context of the Covid-19 pandemic, the GoS imposed air traffic suspensions in March 2020, resulting in a significant drop in passenger throughput in all airports in the Kingdom. Madinah Airport suffered an extremely critical drop in passenger throughput of over 70 percent compared to 2019, which hindered the concessionaire’s ability to perform its obligations under the concession and financing agreements. In October 2021, GACA mandated IFC PPP Advisory support to restructure the Madinah Airport concession, and achieve a satisfactory rebalancing of the concession contract. This was based on IFC knowledge of the as- set, a strong track record in structuring airport PPPs globally and a longstanding strategic relationship. IFC’s advice enabled GACA to preserve the concession and a flagship PPP for the country by negotiating an agreement with the concessionaire which allows for a range of temporary and longer-term adjustments to the existing concession contract which relate to financial and operational matters. The rebalancing provided for a successful restructuring of debt amounting to SAR2.5 billion (CAD 680m) and a fresh equity injection of around SAR1.6 billion (CAD 430m), resulting in a total mobilization of CAD 1.1bn. This mandate was a first of its kind for IFC in terms of delivering targeted Covid 19-related advisory in a distressed situation, with a potential to be repli- cated in other markets. 74 | AIR TRANSPORT ANNUAL REPORT     MIGA GUARANTEES tered a 25-year concession agreement with the Government of Jordan (GoJ) in 2007 to reha- Guarantees provided by the Multilateral Invest- bilitate, expand and operate QAIA with the ment Guarantee Agency (MIGA) cover projects MIGA 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 estimated need for USD 230 billion a possibility to extend the concession by an ad- ditional 5 years (until 2037). The proposed investment by Meridiam will en- able capital expenditures to be directed to- wards optimizing the commercial activities of year solely for new investment (maintenance Jordan’s principal airport (e.g., duty free shop- needs are of a similar magnitude) to deal with rapidly growing urban centers and under- ping, specialty retail, food and beverages) served rural populations in developing coun- which is expected to lead to higher non- tries. MIGA is currently involved in two aviation aeronautical revenues, thereby generating ad- projects: the Queen Alia International Airport in ditional revenues for Jordan over the duration Jordan and the Ravinala Airports in Madagas- of the REOA while enhancing the passengers’ car. travel and retail shopping experience. The air- port is an important infrastructure asset for Jor- JORDAN: Queen Alia International Air- dan, used by over 7 million passengers in port 2017, supporting the country’s economic On 30 March 2018, MIGA agreed to issue growth and development, notably through the guarantees of up to USD 195,154,839 to Me- tourism sector. The acquisition is expected to ridiam Eastern Europe Investments 2 SAS reinforce the role of QAIA, consistent with the (Meridiam) of France for its equity/quasi-equity Jordan Economic Growth Plan spanning 2018- investment into Airport International Group 2022. The acquisition will support existing and (AIG), the current concessionaire of the Queen new direct employment opportunities at QAIA, Alia International Airport (QAIA) in Jordan. The as well as indirect employment by domestic guarantees are issued for a period of up to 15 suppliers and service providers. years against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance and MADAGASCAR: Ravinala Airports Breach of Contract. On 29 May 2017, MIGA issued a USD85 mil- The project consists of the acquisition by Me- lion guarantee covering equity and shareholder ridiam of a 32 percent stake in AIG, which en- loan investments by Aéroports de Paris Man- agement S.A, Bouygues Bâtiment International S.A.S., Colas S.A. and Meridiam Infrastructure Africa Fund, Meridiam Infrastructure Africa Parallel Fund FIPS, Meridiam Infrastructure Africa Parallel Fund SCsp into Ravinala Air- ports S.A. in Madagascar. The coverage is for a period of up to 15 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract. The project consists of the financing, rehabili- tation/ expansion, operation and maintenance of the Ivato airport in Antananarivo and the Fa- scene airport in Nosy Be, currently being man- aged by the state-owned enterprise Aéroports De Madagascar (ADEMA). Works include (i) works at Ivato in preparation of the Fran- cophonie summit (expansion of apron and presidential pavilion as well as establishment 75 | AIR TRANSPORT ANNUAL REPORT     of a dedicated process path in the existing terminal for have a significant demonstration effect for investors arriving/departing delegations), to be held in Antana- into the country, as well as providing a platform for narivo (the country’s capital) at the end of November, the implementation of further public-private partner- (ii) construction of a new passenger terminal at Ivato ships. airport and limited refurbishment works in the existing MIGA’s proposed support for this investment is terminal, (iii) renovation of the runway and Tarmac II aligned with the Agency’s priorities of supporting to host aircrafts Code E and one Code F at Ivato, (iv) investments into countries eligible for financing renovation of the runway and limited expansion of the from the International Development Association current passenger terminal at Fascene airport, and (v) (IDA) as well as conflict-affected states (FCS). It is rehabilitation of landside facilities at both airports. This also aligned with the 2015 World Bank Group Sys- includes the construction of new wastewater treatment tematic Country Diagnostic (SCD) for Madagascar, plants, improvement of the existing incinerator at Fa- which emphasizes the importance of unleashing scene airport to meet emission standards, improve- private sector potential and the financing of high ment of surface water drainage, construction of a new impact investments in the country. waste water treatment plant and installation of an oil Contact persons for MIGA portfolio information is Su- water separator at Ivato airport. san Josefina Vasquez at svasquezplas- The project’s major expected development impact enci@worldbank.org is to help upgrade and improve Madagascar’s most important international and local gateways by im- plementing much needed investment, delivering better services and offering more efficient air travel options. It will thus contribute to facilitate tourism, a key sector to unlock economic growth in the coun- try, as well as help develop linked economic activi- ties and create jobs. The project is also expected to 76 | AIR TRANSPORT ANNUAL REPORT     AIR TRANSPORT SOLUTIONS AREA (AVSA) CENTRAL AMERICA sis of fares and air cargo rates within the re- Facilitating the Movement of Goods gion and (v) performed market consultations KNOWLEDGE and Passengers by Air: Liberalization and Integration of Air Services in Cen- tral America with key stakeholders (e.g., airlines, airports, CAAs, hospitality industry, sippers and import- ers, infrastructure operators, and other govern- ment agencies, etc.). In February 2021, the World Bank team pro- duced a study titled Facilitating the Movement The study focused on identifying if airfare of Goods and Passengers by Air: Liberaliza- costs within the Central American Region are tion and Integration of Air Services in Central indeed higher than those of other regions. The America. The objective of the consultancy was rate comparison study validates the assump- to advise policy makers in Central America tion that the region suffers from a deficiency in about possible policy reform measures in order the economic accessibility of air services. The to increase connectivity, affordability, and ac- study is also intended to identify the causes of cessibility to intraregional air services for pas- these high costs that affect connectivity. An sengers and cargo, as a conduit to reignite analysis was carried out on the role that regu- economic activity in the region. Throughout the lations on access to markets could have as a study, the following countries were considered conditioning factor on the levels of competition. as "Region" or "Central America": Panama, An analysis of bilateral and multilateral air ser- Costa Rica, El Salvador, Guatemala, Hondu- vices agreements in force in the region was ras, Nicaragua, and the Dominican Republic. carried out to understand what traffic rights are granted between the countries of Central America and to determine if there are barriers that could restrict access to markets. A com- parative analysis of the costs for the use of the infrastructure in the main airports of the region was also carried out, the objective of which was to understand if airport charges are too high in Central America, compared to those charged at relevant airports in South America. Based on all the conducted analyses, the con- clusions on the different factors that could be affecting the region’s competitiveness were detailed at the end of the study, followed by policy recommendations aiming to improve the competitiveness of the sector in Central Ameri- can countries. In the production of the study, the consultancy (i) reviewed ASAs in the region and document From the comparison of average airfares on advances made in traffic rights liberalization the main international intra-regional routes in and air services market integration (including Central America with respect to the main ownership provisions in ASAs and national routes in South America, the study concluded legislation) in the region, for cargo and pas- that flying within Central America is effectively sengers, (ii) conducted a brief market analysis three times the cost of tickets in South Ameri- on the basis of supply and demand side ca. Over the last eight years, the yield analysis sources, (iii) conducted a benchmarking of in- (average revenue per passenger-kilometer) frastructure costs (e.g., airport charges) in the revealed that the values are up to 80% more region, (iv) conducted a benchmarking analy- expensive than in South America. Air service 77 | AIR TRANSPORT ANNUAL REPORT     agreements in the region were also analyzed to as- LCCs are not met. High airport fees and taxes, both sess the level of market access, seeking to identify for passengers and airlines, as well as high fuel pric- whether prices could be due to a lack of competition es, constitute the main disincentives for the entry of due to regulatory conditions. However, bilateral LCCs. agreements do not constitute a limitation on the entry The study then concludes that the cost of airport in- of new operators or on the increase in capacity of- frastructure and tax burdens, alongside fuel prices fered. The vast majority of routes (17 of the 20 most (which in themselves include taxes), are the main fac- important routes) are operated by no more than three tors that make air transport more expensive in the airlines (Copa and Avianca are present on 18 of the region. Demand elasticity levels within Central Ameri- 20 routes). On the other hand, there was a noticeable ca are expected to be significant, and the entry of lack of Low Cost Carriers (LCCs) operating these competitively priced LCCs, with the consequent reac- routes. The entry of LCCs into the region would imply tion of traditional airlines, would create a significant a substantial decrease in travel costs, which would increase in traffic volumes. The implementation of a generate a reaction from traditional airlines, driving special airport tax was proposed as part of the rec- the entire market towards a drop in airfare prices. ommendations for flights within the Central America The study also concluded that the restrictions to com- region. This would be a "regional tax," which would petition derive from high structural costs (fees and imply a significant discount with respect to the inter- taxes) in a limited market context, at the same time national tax that currently applies to all international fragmented into a large number of capitals with low flights. This measure would then be accompanied by volumes of demand per city and relatively low levels a reduction in the tax burden affecting the sector. of economic development. This implies few econo- Passenger charges are today taxed with all kinds of mies of scale in traffic volumes between pairs of cit- taxes. Outside the region, other countries, such as ies, with high operating costs that do not correspond Columbia reduced their VAT rates from 19 percent to to the purchasing power of a large part of the popula- 5 percent, as incentive measures for the sector, in- tion. In this scenario, the conditions for the entry of cluding aeronautical supplies. Measures of this na- ture would generate a significant reaction in demand levels, offsetting the drop in the tax rate. GUATEMALA Guatemala Transport Infrastructure Sector Assessment (P174971) The Guatemala and Transport Infrastructure Sector Assessment's development goal is to prepare an in- depth diagnostic of Guatemala's transportation sector to (i) inform government strategic planning for the sector, (ii) identify critical investment gaps and ser- vice delivery shortfalls, (iii) identify opportunities to optimize resource allocation and private financing, and (iv) pinpoint policy gaps and weaknesses in the institutional and regulatory framework. The study ex- amines the various ways in which transportation con- tributes to Guatemala's economic growth and devel- opment. First, it looks at the country's context, fol- lowed by an assessment of the different transport modes and their governance and financing issues. A chapter dedicated to Public-Private Partnerships pro- vides some recommendations as one of the options to mobilize private finance for development. It con- cludes with a roadmap of policy recommendations. 78 | AIR TRANSPORT ANNUAL REPORT     The analysis is based on the Infrastructure Sector As- plicable international regulations and standards, sessment Program 2.0 (InfraSAP 2.0). It follows a that may affect operational safety. standardized approach structured around a set of (ii) There is no civil aviation law that allows airport questions and quantitative indicators. The assess- autonomy and promotes self-sustainable manage- ment draws upon a global infrastructure database to ment. The sector does not have a plan to guide it allow cross-country benchmarking. The methodology either. The airport operations are managed by the uses spatial information on access and quality of General Directorate for Civil Aviation for the two transport infrastructure and services at the national international airports: La Aurora and Mundo Maya. and subnational levels to identify critical investment gaps and service delivery shortfalls; opportunities to Recommendations in the air transport sector empha- optimize resource allocation; and pinpoint policy gaps size the need to improve the efficiency of air transport and weaknesses in the institutional and regulatory services and the quality of infrastructure through: framework. It is supported by the best available infor- (i) Development of a comprehensive analysis of the mation, stakeholder consultations, and lessons sector that considers the possible interrelation and learned from World Bank operations and analytical complementarity between the different airports of reports, including other InfraSAPs. the national airport network of Guatemala. A series of high-level recommendations are presented (ii) Development of a general airport sector road map as a roadmap. They are gathered into three pillars that includes specific actions related to regulation, covering governance and funding, mode-specific, and safety, structural reforms, and management. cross-cutting issues. As much as possible, the recom- mendations are developed with some level of granu- (iii) Establishment of a specific road map for the de- larity, based on the literature review and the interna- velopment of infrastructure and improvement of tional experience. In other cases, the objective is to current services for each airport. identify areas where further analysis, beyond the (iv) Improvement of the infrastructure, level of ser- scope of InfraSAP 2.0, would be needed to develop vices, and operational safety conditions at La Au- customized solutions. rora International Airport. Studies carried out by Key findings regarding the air transport sector are as the National Agency of Alliances for the Develop- follows: ment of Economic Infrastructure (ANADIE) have identified some issues with the “airside” in relation (i) Guatemala has a higher airport connectivity level to the applicable international regulations and than some of its peers. Air transport services are standards and the “landside” that limit the poten- less efficient, as per the World Economic Forum tial for both passenger and cargo segments. (WEF) 2019. The National Airport Network in- cludes two international airports: La Aurora Inter- WORLD BANK WEBINAR national Airport (LAIA) located in Guatemala City The Role of General Aviation in Responding and Mundo Maya International Airport (MMIA) lo- to Natural Disasters cated in Santa Elena, Peten. They are comple- (17 December 2020) mented by a set of national aerodromes. The air- General Aviation (GA) is often associated with port network does not behave like a system as wealthy private or corporate operators, which do not there is no regular domestic interconnectivity. contribute significantly to economic development by LAIA caters to approximately 95 percent of the establishing connectivity. However, besides tradition- system’s passengers (about three million) and all ally playing an important role in providing new pilots cargo (54,000 tons in 2019). Tariffs and taxes col- that graduate to airlines, GA can also fulfill a crucial lected by the Customs Administration account for role following natural disasters. 14 percent (on an annual basis) of total trade col- In October and November 2020, two devastating hur- lection. Modernization Project is to be developed ricanes, Eta and Iota, hit Central America. The relent- through a public-private partnership (PPP) less rain and winds of the hurricanes downed dozens scheme. The pre-feasibility studies identified of bridges and damaged more than 1,4000 roads in some issues on the "air side" in relation to the ap- the region. The hurricanes affected more than five 79 | AIR TRANSPORT ANNUAL REPORT     million people, at least 1.5 million of them children, tion activities, total CO2 emissions combustion in 2050 creating a humanitarian emergency. While the author- will be between 1340 and 1660 million ton of CO2 ities responded by mobilizing their Armed Forces, (and 1570 to 1945 million ton when accounting for jet most Central American countries lack sufficient air fuel lifecycle emissions). If no additional actions to transport capacity to rapidly deploy urgently needed decrease the carbon intensity of aviation beyond his- medical and food supplies. torical efficiency increases are taken, this will be an increase by 38 to 71 percent compared to 2019 level. In Guatemala, where there is a strong GA community with numerous private aircraft and helicopters, GA is Studies show that Sustainable Aviation Fuels (SAF) engaged to provide crucial support. Following the nat-are the most feasible option to decarbonize air travel ural disaster caused by the two hurricanes, the globally for the next 15-20 years. They will have to Aeroclub of Guatemala mobilized its members to fly play a major role if the aviation sector is to meet its hundreds of relief missions in Guatemala. This rapid climate goals. However, to date, commercialization response was well coordinated with the authorities, has been slow and current policies have proved inad- and the Aeroclub also identified key donors who sup- equate to accelerate widespread deployment of vari- ported the operation. ous technologies currently available. The webinar pro- vided an in-depth look at challenges and opportunities The objective of the webinar was to outline the key for commercialization of SAF technologies, as well as role that can be played by GA in developing or emerg- emerging trends in research and development. ing countries. Furthermore, planning for support by GA in the case of natural disasters, which includes The webinar was based on an ongoing research pa- coordination and agreement with the authorities, per which assesses and quantifies the decarboniza- should be included in disaster response planning. tion options for global aviation out to the year 2050, and it accounts for a basket of measures: (1) for tech- WORLD BANK WEBINAR nological improvements to the aircraft systems, (2) for The Role of Sustainable Aviation Fuel in De- improvements related to airline operations, ATM oper- carbonizing Aviation ations, and ground operations, (3) for measures that (23 November 2021) influence the demand for air transport, and (4) for sus- Despite the impact of COVID-19 Pandemic on avia- tainable aviation fuels (SAF). In this paper, a particu- 80 | AIR TRANSPORT ANNUAL REPORT     lar emphasis is placed on SAF as the only mitigation decades have seen increased flows of private capital option that can potentially realize high GHG emission into the industry, governments continue to play a criti- savings in the medium term. It estimates SAF produc- cal role in shaping market outcomes, either in the tion out to 2050 for a set of policy-informed scenarios, form of direct ownership of national carriers or calculates the associated GHG emission reduction for through the allocation of traffic rights and airline des- each scenario, as well as the required capital invest- ignations in air services agreements. There is a grow- ment. The SAF production potential for developing ing concern that the expansion of government capital countries and the opportunities and hurdles of SAF in the sector may crowd out private capital to the ex- deployment in these countries are also presented. tent that it may endanger or even reverse the privati- zation the industry has seen in recent decades. The webinar provided session viewers insights into (i) the efforts and strategies of the aviation industry to The webinar presented findings from an ongoing reduce its carbon footprint, (ii) the development and benchmarking exercise of about 250 global airlines, use of Sustainable Aviation fuels to date, (iii) the out- which explores how government holdings influence look towards the long-term goal of reducing emis- managerial incentives to reduce operational cost inef- sions in 2050, and (iv) the future for SAF and the ficiencies. The authors estimate their model using a pathways most likely to address the climate chal- stochastic frontier approach by exploiting a rich and lenge. original database. They show that the proportion of government holdings in an airline affects the optimal WORLD BANK WEBINAR managerial effort in a quadratic way, which implies How Will Increasing Government Owner- that neither a pre-private nor government ownership ship Affect the Efficiency of Airlines? is optimal for achieving cost efficiency. (15 December 2021) With the injection of close to USD 250 billion in state AVATION SOLUTIONS AREA (AVSA) financial aid in response to the COVID-19 pandemic Handbook for the Development of Air crisis, the aviation industry is primed to be dominated Transportation (P176540) by a heavy state presence in the years to come. The The World Bank Transport Global Practice intends to support has made the topic of airline ownership struc- produce a “Handbook for the Development of the Air ture more relevant than ever. Although the last three Transport Sector”. The overall objective of this 81 | AIR TRANSPORT ANNUAL REPORT     knowledge product is to build, expand and disseminate commitments. It will address civil aviation regulations core sector concepts and good practice fundamentals and oversight, including an introduction to international involved in the development of air transport. The ra- standards and recommended practices established by tionale for providing such a handbook, both internally the International Civil Aviation Organization (ICAO), re- and externally, is the current lack of understanding quirements for enabling legislation, the role of civil avia- around air transport sector challenges by many tion authorities as guided by national safety regulatory transport generalists, government and civil service pro- requirements, and expectations of State Safety and fessionals, at large. The target audience is develop- State Security Programs. The Handbook will address ment and sector professionals in government and the the finance and economics of air transport, including private sector, especially in developing and emerging competition policy (domestic air traffic) and access countries. rights (international air traffic), air service agreements The intermediate outcome will be the publication of a and open skies policies. An overview of demand fore- Handbook that aims to provide a concise yet compre- casting for both passengers and freight will be present- hensive guide to the foundational principles of air ed, along with airlines, airport and air navigation service transport by outlining the basic elements of the air providers’ revenue structures, including the setting of transport system, including the policy, regulatory, and fees and levies. Relevant chapters on air traffic man- operational considerations in the prospect of sustaina- agement, airports and airlines will cover aspects of their ble solutions in the provision of air transport. The Hand- respective corporate governance structures, oversight book will be relevant to both developing and advanced and compliance requirements, infrastructure and facili- economies by providing knowledge to practitioners and ties, business development, finance, economics, and policymakers around the world. It will be designed as a operational management considerations. The Hand- reference book to offer a high-level overview to be con- book will also cover regulatory and operational aspects versant on sector dynamics, as well as guide readers of measuring and managing environmental impacts re- for finding other technical resources, as may be neces- lated to noise, emissions, and water pollution, as well sary. It will also touch on key emerging issues, includ- as sector implications on climate change, such as the ing decarbonization of aviation and new technologies Carbon Offsetting and Reduction Scheme for Interna- such as unmanned aerial vehicles, seen from the per- tional Aviation (CORSIA), the Airports Council Interna- spective of developing client countries. tional Airport Carbon Accreditation program, and sector contributions to NDCs for reducing greenhouse gases. The Handbook is also intended as a staff resource to frame complex technical regulatory requirements, inter- WORLD BANK POLICY PAPER national and regional obligations, as well as competition The COVID-19 Pandemic and Air Transport in and access policy implications in the public-private pro- Southern Africa vision of infrastructure and services. The Handbook will The World Bank Policy Paper on “The COVID-19 Pan- build on lessons from the Bank’s recent and past sector demic and Air Transport in Southern Africa” explores engagements to provide an easy-to-read resource that policy and operational strategies to build back a safe introduces key institutions, critical infrastructure require- and competitive air transport sector in the aftermath of ments, oversight accountabilities, and the range of play- the COVID-19 crisis in select Southern African coun- ers in the aviation value and supply chains involved in tries. It specifically reviews the status of the sector in services and operations. External peer reviewers from Botswana, Eswatini, Lesotho, Namibia, and South Afri- partner organizations will be sought as part of a quality ca by assessing the current and expected needs and enhancement review, including other multi-lateral devel- by exploring various strategies and policies to guide the opment banks, Airports Council International, the Inter- World Bank Group’s policy position and potential opera- national Air Transport Association, and the International tional responses. The Policy Paper mainly focuses on Civil Aviation Organization. the state-owned airlines in the region and explores air- The Handbook will begin with an overview of the air lines’ reform options and policy directions to re-build an transport system. It will take a top-down approach to air transport sector that meets international, regional, core aspects of sector outlooks through the lens of Na- and local demands. It builds on: (i) a recent World Bank tional Aviation Policy settings, including air transport Policy Note which reviews pre-COVID-19 sector chal- development strategies, political-economy endorse- lenges in Africa and recommends operational and poli- ments, and state obligations in meeting international cy responses to mitigate the impact of the pandemic, 82 | AIR TRANSPORT ANNUAL REPORT     and (ii) a technical paper on the impact of the pandemic line. Because of the low level of pre-pandemic demand, on air transport connectivity in the Southern Africa Re- predominantly connecting to South Africa’s economic gion. points, allowing South African and Namibian airlines to According to the Policy Paper, the pandemic crisis operate cabotage services to/from Namibia would max- could bring much needed airline restructuring in Africa, imize the country’s potential to reestablish connectivity but their business models need to evolve fast to bal- on routes that make financial sense. To maintain do- ance costs with diminished revenues. Experts agree mestic connectivity, a public service obligation for those that the pandemic will not only have a long-lasting eco- routes where no operation is feasible but necessary nomic effect but that it will also change the shape of from an economic and security perspective can be eval- travel. The new realities brought by the pandemic uated and publicly tendered. should become catalysts for business model enhance- Botswana: An objective and fundamental assessment ments and substantial restructuring of unprofitable of Air Botswana’s viability based on realistic assump- routes and excess personnel, fleet, and debt. Instead of tions is necessary. Throughout the last decade, the running airlines, the newly vested role of the state government of Botswana has been searching for an should consist of ensuring the legislative framework equity partner from the industry to shape the perfor- and creating responsible governmental agencies to mance of Air Botswana. A regional carrier would be the control the implementation of regional aviation policies. ideal partner to benefit from the network scale and Specific country considerations are summarized below: spread of unitary costs. Similarly, a private majority in- Namibia: Further steps need to be taken to enable a vestor would reduce the SOE’s dependence on state non-Namibian airline FDI to cover demand adequately grants and foster the development of a cost-savvy envi- and facilitate sufficient capitalization of domestic air- ronment, ringfencing the airline from political influence. lines. With the liquidation of Air Namibia, the statutory With the promulgation of the airline transition legislation protection monopoly on international and domestic in 2022, there is a new momentum to implement a pri- routes was eliminated allowing for the initiation of vatization plan, but there appears to be limited prepara- scheduled services by FlyNamibia (previously named tory work to put the airline on the market. This calls for FlyWestair), the incumbent Namibian private sector air- a thorough due diligence on the airline to assess its via- bility and worth, including corporatization strategies that might result in its restructuring. South Africa: The pace and shape of market re- covery will determine South Africa’s state- owned airlines’ restruc- turing options and suc- cesses. The recovery is expected to last another two years. As of now, there is more capacity available than is required by demand in the coun- try. British Airways and Kulula.com (Comair) rec- ommend operations in September 2021, alt- hough they are still in Business rescue as of March 2022. The new SAA has also announced 83 | AIR TRANSPORT ANNUAL REPORT     the launch of domestic and regional operations with a (iii) Encourage more private sector participation; six aircraft fleet. Its low-cost subsidiary, Mango Air- (iv) Apply competition rules broadly; lines, is aiming to restart with an eight-aircraft opera- tion, putting it in direct competition with Lift Airlines, an (v) Improve safety regulation and standards. LCC owned by Global Aviation, a member of the pri- vate sector consortium in the process of purchasing SAA. This is contrary to the new SAA business plan, where Mango Airlines’ division would disappear and remain as a sub-brand fare category. The business plan supports the continuation of intercontinental flights through 2022, despite the fact that these were the routes that generated the most losses and had pre- pandemic load factors of only 70%. The transitionary SAA has relaunched flights from Jo- hannesburg to Cape Town, Accra, Kinshasa, Harare, and Lusaka, competing with Airlink on four of the desti- nations and likely resulting in overcapacity. Overcapac- ity can do more damage than good. The generation of excess capacity could trigger state financial aid to keep SAA operating. Additional factors play against the new SAA business plan, such as its image, which has been seriously damaged, especially among high-paying cor- porate travelers; and the larger aircraft size that will limit its capability to match Airlink’s high-frequency/ business travel friendly schedule. SAA has prepared an ambitious but risky business plan to re-enter the market, considering the re-establishment of loss- making long-haul flights as of the second and third years of operation. The initiation of long-haul flights in any economic environment should happen only with the support of a profitable domestic and regional net- work. While there has been an easing of market regulations, critical regulatory hurdles remain in the five countries and the broader SADC region to make the air transport sector truly competitive. Limited fifth freedom traffic rights for foreign carriers and unregulated state aid are preventing network development and diminishing con- sumer welfare. While the pandemic has exacerbated the region’s perennial regulatory challenges, it also presents opportunities to tackle some of them. Consid- ering the unique challenges of the African air transport sector as well as various state support given in re- sponse to the COVID-19 pandemic induced crisis glob- ally, policy options for sustainable recovery of the southern Africa include: (i) Further liberalization of the African market; (ii) More participation by non-African airlines; 84 | AIR TRANSPORT ANNUAL REPORT     AIRLINE ADVISORY SYSTEM WORLD BANK STAFF AIR TRAVEL INTERNAL SERVICES The Bank has maintained an evaluation tool for assessing risks associated with air travel for mission travel since 2008. The airline advisory system developed by In 2021, the airline advisory system con- tained a total of 811 carriers. Of these, 386 were classified category 1 and 233 as category 3, both representing 619 or the Bank’s General Services Department 76 percent as Good to fly. Three airlines and Air Transport team was launched in underwent a special review and were FY2011. classified 3a (Good to Fly), 136 were Airline ratings/risk are based on the fol- considered 3b, representing some risk, lowing risk criteria: and 56 were ranked 3c, with serious risk. 1. Serious accident in the last 3 years Travelers are reminded that surface (defined as any incident that results in transportation may not always be possi- injury or death of a passenger, or sub- stantial damage to the aircraft) ble or may represent more risks than air 2. Registered in a country with poor over- travel in some client countries. The advi- sight (based on ICAO safety audit) sory team continues to provide on- 3. A flag of convenience airline (an airline demand assessments and safety advice that is registered and maintained in a for operational staff. country other than where it operates) 4. Use of aircraft over 20 years old DESCRIPTION RECOMMENDATION FOR STAFF All airlines that are industry certi- fied by having passed an IATA Good to fly. The Bank has no objection to using 1 IOSA audit, unless subsequent these airlines. safety experience indicates a safe- ty problem. All airlines that though they are not industry certified are either li- censed by a country with an FAA Good to fly. The Bank has no objection to using 2 IASA rating of Category 1, or are these airlines. known to the Bank as safe carri- ers. 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 All airlines that are not in (1) or (2) to see if there are any viable and safer transport above, or are on any blacklists, or 3 alternatives before selecting this airline for mission are deemed to be unsafe for other travel. reasons. 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. 85 | AIR TRANSPORT ANNUAL REPORT     Second Malta Aviation Confer- a special focus on the effects of the COVID- 19 pandemic on the airline industry. ence & Expo (MACE) 2020 The conclusion of the presentation and the EXTERNAL RELATIONS Between 18-20 November 2020, the World following discussion was that the global econ- Bank Air Transport Team participated in the omy is not only slowing, recession is on the 2nd Malta Aviation Conference & Expo rise, and the impact of aviation industry is (MACE) focusing on A Sustainable Aviation clearly immense as illustrated in the 60% de- Industry through Finance, Regulation & Oper- cline in world total passengers in 2020. ations. Dr. Charles E. Schlumberger delivered the closing key note on the fist day online fo- cusing on Aviation Post COVID-19. High-Level Ministerial Meeting Due to COVID-19 restrictions, the conference on Enhancing Air Transport was held online, and featured live keynote Connectivity and Growth in speakers, a virtual expo, virtual networking opportunities, live meeting rooms, and more. West Africa 2021 The objective of the event was to create an A High-Level Ministerial Meeting on enhanc- environment of collaboration and cooperation ing Air Transport Connectivity and Growth in for aviation leaders to come together and aid West Africa was held virtually on 17 and 18 each other during the COVID-19 period, but March 2021, by the Federal Ministry of Avia- also with a keen view towards the future of tion, Nigeria in cooperation with the Interna- the industry. tional Partners for Aviation Development, In- Delegates had the opportunity to participate in novation and Sustainability (iPADIS). The live panel debates, meet industry suppliers meeting conclude with a 15-point post-COVID and discuss the themes of the event with reg- recovery plan for air transport in the region, ulatory officials, industry professionals and including strategies for the long-term sustain- subject matter experts. MACE 2020 included able development of the industry. local and international policy makers, opera- The WB presentation focused on the effects tors, aviation industry professionals, legal and of COVID-19 on the airline industry, State regulatory consultants and global users. The support for airlines during the crisis, and the WB presentation focused on the global econ- COVID-19 related analytical works at the omy, the current stage of the airline industry, World Bank. the risk the aviation sector is facing, and gave 86 | AIR TRANSPORT ANNUAL REPORT     COMMUNITY SERVICE Several World Bank staff members are licensed One example of such an Angel Flight mission, and active pilots, certified by the US FAA and/or which was carried out by Charles E. Schlumberg- European Aviation Authorities (EASA). To remain er, Lead Air Transport Specialist and Megersa current on their pilot qualifications, they regularly Abera Abate, Transport Economist, was a flight to fly and undergo required refresher training. The transport baby Isabel, who spent several months most rewarding way of keeping current is to en- at Children's Hospital of Philadelphia, and her gage in community service by providing free air mother Isabel Collier, home to Summerville, SC. transportation to people of all ages whose medical The WBG’s contribution, in accordance to Staff needs – evaluation, diagnosis, and treatment – Manual 9.10, consisted of one day of administra- can only be met by health care facilities far from tive leave to carry out this rewarding community their homes. service. 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. In many cases, transport in smaller, private aircraft can better accommodate patients whose condi- Contact person is Charles E. Schlumberger at tions could worsen if exposed to the re-circulated cschlumberger@worldbank.org air on commercial flights, or who need efficient point-to-point transport. For more information visit: www.angelflighteast.org 87 | AIR TRANSPORT ANNUAL REPORT     The initial optimism that the global pandemic The focus on the recovery of the air transport would ease and air transportation would re- industry must be on its long-term sustainabil- cover well in 2021 was hampered by the fact ity, primarily in terms of the financial burden that the COVID-19 pandemic continued to and affordability, and the environment. The reemerge with new variants, which triggered short-term survival of the industry continues to continued travel restrictions in many parts of be supported by governments. However, es- the world. This was met with increasing infla- pecially in developing countries where public tion, which manifested itself in 2021 in a dou- funds are scarce, support must be conditioned bling of the oil price and the cost of jet fuel. on two facts: (i) the demise of a carrier would This negative impact on the economy, which negatively impact connectivity and there are affects demand for air travel, is increasingly no other operators to take over the markets, OUTLOOK enhanced in many parts of the world by the and (ii) the carrier was profitable before the recognition that climate change may pose an impact of the pandemic. The restoration of air existential threat and that air transportation services must be further enhanced by the im- was an increasing contributor in terms of plementation of an aviation sector policy that greenhouse gas emissions. adheres to the principles of safety and securi- Behind this background, global passenger traf- ty, financial sustainability, and a competitive fic recovered modestly in 2021, with the num- environment allowing the participation of the ber of passengers worldwide increasing to 2.3 private sector. billion. For 2022, the outlook for the global air Addressing climate change, however, is the transport industry remains uncertain. ICAO greatest challenge for all sectors and humanity initially predicted that passenger numbers at large. The transition away from fossil fuels would be 26 to 31 percent lower in 2022 than is by far the most pressing global necessity, as before the pandemic, with seat capacity falling fossil fuel use accounts for nearly 34 percent by 20 to 23 percent. In their optimistic scenar- of CO2 emissions. After energy use in build- io, passenger traffic was expected to recover ings and industry, transport is the third emitter, to 86 percent of its 2018 levels by December accounting for 16%, and of this, aviation for 2022, based on 73 percent international traffic 2% of global greenhouse gases. Nevertheless, recovery and 95 percent domestic recovery, the international air transport sector’s commit- and 75 percent in their pessimistic scenario, ment to net-zero CO2 emissions by 2050 is based on 58 percent international and 86 per- the first commitment of any industry, and im- cent domestic recoveries. The recovery of the plementation of measures has started with the sector, however, will experience significant Carbon Offsetting and Reduction Scheme for regional differences. North America is ex- International Aviation (CORSIA) scheme, pected to recover strongest and to be the only which was adopted by ICAO in 2016. By the region to return to profitability in 2022. The end of 2021, 107 ICAO Member States an- large US domestic market and additional mar- nounced their participation in CORSIA. An ad- kets worldwide, including the North Atlantic, ditional measure, which can be introduced ra- forecast a net profit of USD 8.8 billion in 2022. ther quickly, is the deployment of Sustainable The recovery in Europe is slower, with re- Aviation Fuels (SAF) for the aviation sector. duced forecasted losses of USD 3.9 in 2022. SAF are already certified for a 50/50 drop-in In the Asia /Pacific region, given continued blend for aircraft, and they represent a major strict and enduring travel restrictions, net loss- opportunity for the industry to reach the 2050 es in 2022 are forecasted to decline to USD goal. Furthermore, the production of SAF cre- 8.9 billion. Traffic in Latin America has well ates economic opportunities in many develop- recovered in 2021, but the financial outlook for ing countries, as SAF production will become some carriers remains fragile, and the region a global deployed industry. To further examine forecasts a net loss of USD 3.2 billion. The this, the WB is preparing a Flagship Report on Middle East region has reopened many of its Transport Decarbonization, which assesses international long-haul routes and is expected and quantifies the decarbonization options for to reduce its net losses to USD 1.9 billion. Afri- global aviation, including SAF. can airlines are forecasted to double their rev- Given these challenges, but also the opportu- enues in 2022 and reduce their net losses to nities of air transportation in developing coun- USD 0.7 billion. Global connectivity is also re- tries, the WBG will continue to provide support covering. City pairs are forecasted to increase for the development of sustainable, safe, and from 85% in 2021 to 92% of their 2019 peak. affordable air transport services. 88 | AIR TRANSPORT ANNUAL REPORT       89 | AIR TRANSPORT ANNUAL REPORT   Photography Credits:  Page 70: Ivato International Airport, www.airport-technology.com/projects/ivato-international-airports-new- terminal-antananarivo-madagascar/  Page 71: Enfidha International Airport, SIKA GCC, gcc.sika.com/en/reference-projects/enfidha-airport.html  Page 74: Prince Mohammed Bin Abdul Aziz Madinah International Airport, www.berksan.com/en/prince- mohammed-bin-abdulaziz-madinah-international-airport-210-000-m2-t  Page 75: Queen Alia International Airport, www.dezeen.com/2013/03/22/queen-alia-international-airport-by- foster-partners/  Page 76: Fascene International Airport, www.eways-aviation.com/blog/flight-off-the-african-coast-the- aviation-network-of-madagascar  Page 80: The Role of General Aviation in Responding to Natural Disasters, Jorge Mario Castellanos Palaez, Aeroclub de Guatemala  All other images belong to the WBG or contributors to this report    ANNUAL REPORT 90 | AIR TRANSPORT