The global air transport industry continues to grow well over twice of Gross Domestic Product. For 2017, growth of passengers was over 7 %, topping 4 billion worldwide passengers. Airlines are profitable in most regions of the world, reaching an expected global combined net profit of $31.4 billion. Many emerging and developing countries benefit from this positive development, as affordable and reliable air travel fosters economic growth by supporting trade, tourism and foreign direct investments. This continued growth, however, puts high demand on some of the World Bank Group ’s (WBG) client countries in terms of developing and maintaining required in- frastructure, and complying with international standards and best practice. For over seven decades, the WBG has financed various types of infrastructure, including in air transportation, such as airports or air traffic control systems. However, given the worldwide huge requirements for infrastructure financing on the one hand, and the generally solid and abundant liquidity of the private sector on the other hand, the WBG has embarked on an effort to help countries maximize finance for development without pushing the public sector into unsustainable levels of debt and contingent liabilities. By applying the so called “Cascade Approach", the WBG helps countries maximize their development resources by drawing on private financing and sustainable private sector solutions to pro- vide value for money and meet the highest environmental, social, and fiscal responsibility standards, and reserve scarce public fi- nancing for those areas where private sector engagement is not optimal or available. This means that WBG teams are consistently testing—and advising clients on—whether a project is best deliv- ered through sustainable private sector solutions while limiting public liabilities, and if not, whether WBG support for an improved investment environment or risk mitigation could help achieve such solutions. In air transport, especially the financing of airport infrastructure, private funding in the form or Public Private Partnerships (PPP) for airports is the preferred way of mobilizing finance. The 13th edition of the World Bank Group (WBG) Air Transport Annual Report, outlines the sup- port that is given to emerging and developing countries in air transportation. It summarizes the current portfolio of the air transport practice at the WBG, and highlights some of the pro- jects in more detail. The above described new approach of fi- nancing infrastructure by involving the private sector has al- ready shown it effect on the air transport portfolio. Given that no new major airport infrastructure projects have been initiated, the overall portfolio has declined to about US$ 1 billion. The decline is especially significant in IBRD projects, which is con- sistent as middle income countries have easier access to pri- vate funding. This annual report summarizes the WBG air transport development activities, which includes an overall portfolio of US$1.03 billion, and several analytical and technical research products. With these activities we remain actively engaged around the world on air transport development, by addressing policy and regula- tion, safety, infrastructure rehabilitation, institutional strengthening, and capacity building in client countries. Finally, environmental challenges of aviation, and how to mitigate them in emerging markets, continue to be a top priority for the WBG, which we address in cooperation with strategic partners. We look forward to continue addressing the challenges and opportunities of the sector in 2018 to help achieving safe, affordable, and sustainable air transporta- tion for all. Dr. Charles E. Schlumberger Lead Air Transport Specialist The World Bank ACI Airports Council International ADS-B/C Automatic Dependent Surveillance – Broadcast/Contract AGL Aeronautical Ground Lights ATC Air Traffic Control ATM Air Traffic Management BOT Build-Operate-Transfer BOO Build-Own-Operate BOOT Build-Own-Operate-Transfer BTO Build-Transfer-Operate CAA Civil Aviation Authority CES Charles E. Schlumberger, Lead Air Transport Specialist (WBG) DME Distance Measuring Equipment GNSS Global Navigation Satellite System EASA European Aviation Safety Agency EC European Commission ESW Economic Sector Work FAA Federal Aviation Administration (United States) FY Fiscal Year IATA International Air Transport Association IASA International Aviation Safety Assessment (FAA) IBRD International Bank for Reconstruction and Development (WBG) ICAO International Civil Aviation Organization (UN Agency) ICSID International Centre for Settlement of Investment Disputes IDA International Development Association (WBG) IFC International Finance Corporation (WBG) ILS Instrument Landing System IOSA IATA Operational Safety Audit LCC Low-Cost Carrier MIGA Multilateral Investment Guarantee Agency (WBG) PASO Pacific Aviation Safety Office PPPA Public Private Partnership Agreement PPP Public-Private Partnership SARPS Standards and Recommended Practices TA Technical Assistance DOT Department of Transportation USOAP Universal Safety and Security Oversight Audits Program (ICAO) VOR VHF Omni-Directional Radio Range VSAT Very Small Aperture Terminal WB World Bank WBG World Bank Group This report benefited from the contributions of a number of staff members from across the World Bank Group. We would like to thank Shruti Vijayakumar, Adam Diehl, Christo- pher J. De Serio, Christopher Bennet, Nora Weisskopf; To- joarofenitra Ramanankirahina, Weimin Zhou, Sami Ali, Olivier Le Ber, Paula Pardo Pachon, Carlo Bongianni, Ramatou Magagi and Alexandre Leigh for their input to this report. We would also like to thank Jose Luis Irigoyen, Senior Director, and Franz R. Drees-Gross, Director of the Transport and Digital Development Global Practice for the continued guidance and support, as well as Aldo Giovannitti for the research and prepa- ration of this report. The Mission tice. The Bank ’s new nimble structure with The World Bank Group (WBG) is a vital Global Practices and Cross -Cutting Solu- source of financial and technical assis- tion Areas is designed to strengthen collab- tance to developing countries around the oration and improve knowledge sharing world through the provision of low -interest across the institution. These changes are loans, grants, credits, guarantees and advi- intended to improve operational efficiency, sory services. The World Bank Group aims financial sustainability, and ultimately work to achieve two major goals by 2030: toward meeting the twin goals of ending extreme poverty and boosting shared pros-  End extreme poverty by decreasing the perity. percentage of people living on less than $1.25 a day to no more than 3 percent. Enhancing Mobility and Connectivity  Promote shared prosperity by boosting Transport is a critical driver of economic and the income of the bottom 40 percent of social development. Transport infrastructure the population in every country. connects people to jobs, education, and health services; it enables the supply of The World Bank Group aims to tackle goods and services around the world; and these challenges through financing, cutting allows people to interact and generate the -edge solutions, cross -sectorial knowledge, knowledge and solutions that foster long-term and partnerships with relevant public and growth. The World Bank’s transport invest- private sector actors, as well as civil socie- ments have facilitated more efficient trade ty. The organization ’s investments span and enhanced human development through across a number of sectors including edu- greater mobility. cation, health, public administration, private sector development, agriculture, and As a multi-sectorial institution, the World transport and digital development. Bank Group is uniquely positioned to sup- port large-scale transformational projects The Institutions and New Structure and deliver innovative cross -cutting solu- The International Development Association tions for greater connectivity. The World (IDA) is the part of the World Bank that Bank ’s strategy in the transport sector, helps the world ’s poorest countries by adopted in 2008, envisioned mobility solu- providing interest -free loans, or credits, tions for developing countries that would and grants. The World Bank ’s original lend- be safer, cleaner and more affordable. ing arm is the International Bank for Re- These three principles guide the Bank ’s construction and Development (IBRD), infrastructure investments and policy work. which lends to governments of middle - The WBG is the largest provider of devel- income and creditworthy low -income coun- opment finance for transport globally, with tries. The International Finance Corpora- an active portfolio of around US$46.7 bil- tion (IFC) provides loans, equity, and advi- lion. sory services to stimulate private sector investment in developing countries. The Air transport plays an important role in fos- Multilateral Investment Guarantee Agency tering development, particularly in facilitat- (MIGA) provides political risk insurance or ing economic integration, generating trade, guarantees to facilitate foreign direct in- promoting tourism, and creating employ- vestment in developing countries. The In- ment opportunities. It facilitates integration ternational Centre for Settlement of Invest- into the global economy and provides vital ment Disputes (ICSID) is also a part of the connectivity on a national, regional, and WBG, but will not be covered in this report. international scale. However, in many countries air transport equipment and infra- The WBG has recently undergone major structure, regulatory frameworks, and safe- institutional change, and Transport and Digital Development is now a Global Prac- ty and security oversight systems are inefficient or Additional current projects in air transport include inadequate. the Shangrao Sanquingshan Airport, which is be- In view of these challenges and to assist clients in ing funded through a US$50 million loan, and the establishing a safe, secure, cost efficient, accessi- US$52 million DRC Goma Airport Safety Improve- ble and reliable air transport network, the Bank is ment Project. mandated to undertake the following major activi- ties: Major current commitments by the International  Operational work through projects and tech- Finance Corporation (IFC) include nical assistance. ASECNA in Africa, Queen Alia II in Jordan, the Za-  Economic sector work, research, and knowledge dissemination on air transport relat- greb Airport in Croatia, the Enfidha airport con- ed issues. struction in Tunisia and the Pulkovo Airport in the  External relations and collaboration with part- Russian Federation. IFC is active through Advisory ner organizations. Services in Jamaica, Saudi Arabia and Santa Lu-  Internal services (such as the airline advisory cia. MIGA has been involved in the air transport service for WBG staff travel). sector in the past through the issuance of guaran- tees for two airport projects in Ecuador and Peru. Portfolio and Project Highlights In Fiscal Year 2017 (FY17), WBG ’s Air Transport Research and External Relations Portfolio amounted to US$1.03 billion, a decrease World Bank staff members continue to represent of 17% from Fiscal Year 2016 (FY16), which was the organization externally at various air transport due to the completion and closing of larger airport conferences and events, notably the ACI -WBG infrastructure projects. The Air Transport segment Aviation Symposium in London, UK. Research and makes up around 2.2% of the WBG ’s US$46.7 bil- knowledge dissemination also continue to consti- lion Transport portfolio. The WBG ’s FY17 tute critical functions of the WBG ’s Air Transport Transport portfolio consists approximately 16.7% Community of Practice (ATCOP). Looking forward, of the WBG ’s active portfolio of US$279.5 billion the practice maintains its strong commitment to (excluding MIGA). addressing the challenges of its client countries . The Air Transport portfolio includes 45 projects or project components through the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), as well as the International Finance Corporation (IFC) ’s portfolio of lending and non -lending prod- ucts in the aviation sector. Project highlights in 2017 include the preparation of a US$285 million Aviation Modernization Pro- ject in Kenya and the additional financing for the Aviation Investment Projects in Vanuatu, Tuvalu and the Pacific Aviation Safety Office (PASO), which are part of the Pacific Aviation Investment Program (PAIP). PAIP is currently being imple- mented in Vanuatu, Kiribati, Tonga, Tuvalu, and Samoa. The WBG is a vital source of financial and technical assistance to developing countries through low-interest loans, credits, and grants. In Fis- cal Year 2017, the World Bank's Air Transport Portfolio is around US$1.03 billion. This included a total of 45 lending and non-lending projects or project components through the International Bank for Reconstruction and Development (IBRD) and International Development Associa- tion (IDA), as well as the International Finance Corporation (IFC)’s portfolio of lending and investment advisories in the aviation sector. Note: Excluding the Multilateral Investment Guarantee Agency (MIGA) Active Air Transport Projects in FY17: IBRD and IDA invest in a number of air transport projects worldwide focusing on regulatory reform, capacity build- ing and infrastructure investments, as well as technical assistance and analyt- ic/advisory services. IBRD AND IDA LENDING PROJECTS WGB Commitment Status as of Project Description of Aviation Compo- (Million US$) Region Country Project Name Type End of Code nent Aviation Total FY2017 Component Democratic Improve the safety, security, and operations Goma Airport Safety Africa Republic of P153085 of Goma International Airport through infra- 52.0 45.2 IDA Grant Active Improvement Project Congo structure investments and capacity building. Cameroon Transport To improve safety and security at Came- Africa Cameroon P150999 192.0 44.2 IBRD Active Sector Support Project roon’s four international airports Transport Sector Sup- Rehabilitation and extension of regional air- Africa Tanzania P055120 270.0 56.7 IDA Credit Closed port Project ports Second Central Improve Zanzibar Airport facilities and build Africa Tanzania P103633 190.0 17.1 IDA Credit Closed Transport Corridor capacity Transport Sector Sup- Enhance aviation security and safety, and Africa Kenya P124109 300.0 27.0 IDA Credit Active port Project improve institutional capacity Transport Sect Sup- Enhance aviation security and safety, and Africa Kenya P146630 port Project - Addi- 200.0 65.1 IDA Credit Active improve institutional capacity tional Financing WGB Commitment Status as of Project Description of Aviation Compo- (Million US$) Region Country Project Name Type End of Code nent Aviation Total FY2017 Component Democratic Multi-Modal Improve transport connectivity and support Africa Republic of P092537 255.0 25.5 IDA Grant Active Transport economic integration in the region Congo Cape Verde -Transport Institutional capacity building, technical as- Africa Cape Verde P126516 27.0 2.1 IDA Credit Active Sector Reform Project sistance, and support of national airline Burkina Faso Donsin Technical assistance for new Ouagadougou Africa Burkina Faso P120960 Transport Infrastruc- 85.0 1.7 IDA Credit Active Airport ture Project Improve operational safety and oversight of East Asia Pacific Aviation Invest- Vanuatu P154149 international air transport and associated 59.5 54.7 IDA Credit Active and Pacific ment - Vanuatu infrastructure Pacific Aviation Invest- Improve operational safety and oversight of East Asia Vanuatu P161454 ment - Vanuatu Addi- international air transport and associated 14.1 14.1 IDA Credit Active and Pacific tional Finance infrastructure Infrastructure investment, sector reform and East Asia Pacific Aviation Invest- Tuvalu P128940 training, and strengthening airport opera- 11.9 10.3 IDA Grant Active and Pacific ment - Tuvalu tions and management capacity IBRD AND IDA LENDING PROJECTS (continued) WGB Commitment Status as of Project Description of Aviation Compo- (Million US$) Region Country Project Name Type End of Code nent Aviation Total FY2017 Component East Asia Pacific Aviation Invest- Infrastructure investment, sector reform and Tuvalu P145310 ment - Tuvalu - Addi- 6.1 3.0 IDA Grant Active and Pacific training tional Financing East Asia Pacific Aviation Invest- Additional financing for the Tuvalu Aviation Tuvalu P157779 ment - Tuvalu - Addi- 2.9 1.7 IDA Grant Active and Pacific Investment Project tional Financing II East Asia Infrastructure investment, sector reform and Pacific Aviation Invest- Tonga P128939 training, and strengthening airport opera- 27.2 20.9 IDA Grant Active and Pacific ment - Tonga tions and management capacity East Asia Pacific Aviation Invest- Additional financing for the Tonga Aviation Tonga P156018 ment - Tonga - Addi- 7.3 5.7 IDA Grant Active and Pacific Investment Project tional Financing East Asia Tonga Transport Sec- Improve safety and security compliance; Tonga P096931 tor Consolidation Pro- 5.4 2.4 IDA Grant Active and Pacific provide technical assistance to CAA ject East Asia Samoa Aviation In- Samoa P143408 Improve operational safety and oversight 25.0 23.0 IDA Grant Active and Pacific vestment Project WGB Commitment Status as of Project Description of Aviation Compo- (Million US$) Region Country Project Name Type End of Code nent Aviation Total FY2017 Component Pacific Aviation Invest- East Asia Additional financing for the Samoa Aviation Samoa P157241 ment - Samoa - Addi- 16.6 15.3 IDA Grant Active and Pacific Investment Project tional Financing East Asia Pacific Is- Pacific Aviation Safety Strengthen the Pacific Aviation Safety P145057 2.2 2.2 IDA Grant Active and Pacific lands Office Reform Office’s technical and coordination capacity Infrastructure investment, sector reform and East Asia Pacific Aviation Invest- Kiribati P128938 training, and strengthening airport opera- 22.9 19.5 IDA Grant Active and Pacific ment - Kiribati tions and management capacity Pacific Aviation Invest- East Asia Additional financing for the Kiribati Aviation Kiribati P153381 ment - Kiribati - Addi- 7.1 5.5 IDA Grant Active and Pacific Investment Project to cover a financing gap tional Financing Improve airline connectivity and environ- China - Shangrao San- East Asia mental sustainability of development and China P123729 qingshan Airport Pro- 50.0 48.0 IBRD Loan Active and Pacific operation of the Shangrao Sanqingshan Air- ject port Latin Amer- National Roads and Infrastructure development; improve safety, ica and Car- Bolivia P122007 Airport Infrastructure security and operational reliability of the 109.5 5.5 IDA Credit Active ibbean Project Rurrenabaque Airport IBRD AND IDA LENDING PROJECTS (continued) WGB Commitment Status as of Project Description of Aviation Compo- (Million US$) Region Country Project Name Type End of Code nent Aviation Total FY2017 Component Middle East Build capacity of Cairo International Airport; Cairo Airport Develop- and North Egypt P101201 rehabilitation and expansion of Terminal 280.0 277.2 IBRD Loan Closed ment Project-TB2 Africa Building 2; safety and security IBRD AND IDA PIPELINE PROJECTS Aviation Status as of Project Region Country Project Name Description of Aviation Component Compo- Type End of Code nent FY2017 The proposed project involves amongst others moderni- Airport Modernization Africa Kenya P156971 zation of Kenyan major airports including enhancing se- 285.0 IBRD Loan Pipeline Project curity to meet international standards Central Asia Regional Central Kyrgyz Re- Increase regional connectivity and support safe P159220 Links Program - Phase 105.0 IDA Pipeline Asia public transport and sustainable tourism 3 IBRD AND IDA NON-LENDING PROJECTS Aviation Status as Project Region Country Project Full Name Description of Aviation Component Compo- Type of End of ID Code nent FY2017 Modernizing Hydro-met Enhance country and regional capacities to better Africa Africa P154343 20% TA Pipeline services in Africa manage climate and disaster risks Assist public transport sector institutions to lay Zimbabwe Capital Budg- Africa Zimbabwe P157125 foundation for improved efficiency and effective- 20% TA Pipeline et TA - Transport ness Multi- Multi- Knowledge Management P156927 Development of weather dependent sectors 10% TA Pipeline Regional Regional and Partnerships Multi- Multi- Global Hydromet System P156930 Development of weather dependent sectors 10% TA Pipeline Regional Regional - Investment Latin Amer- PPP for Transport Infra- Bring to market infrastructure concessions under ica and Brazil P157817 10% TA Pipeline structure Service the Investment Partnership Program Caribbean CABO VERDE fatalities, many of them attributed to the condition Cabo Verde Transport Sector Reform Pro- of the airport. ject (P126516) The project will restore the airport ’s runway origi- The objective of the project, in the IDA amount of nal length, rehabilitate the apron, existing passen- US$ million, is to improve efficiency and manage- ger and cargo terminals, and electrical system, as ment of the national road assets and to lay the well as supply a new low -cost control tower and groundwork for transport sector State Owned En- navigational equipment to upgrade air navigation. terprise reform. Among the concerned transport The project will also include the construction of the sector State Owned Enterprises is TACV, the na- airport ’s security fence and support airport rescue tional airline company, which is structurally in defi- and firefighting services. cit. Making the right decision on TACV requires strong political will and leadership given the sensi- The project will support the valorization of the tivity of the company in Cabo Verde. Following a large quantity of lava rock removed from the air- request from the new Government, the World Bank port through labor -intensive activities targeted to has conducted a mission to analyze the situation communities living close to the airport. The project of TACV in order to recommend the appropriate will also complement a Japan -GFDRR grant sup- way forward. The mission has developed several porting the monitoring of volcano risks and restructuring options concerning domestic traffic strengthening preparedness of the airport and sur- and international traffic. Follow -up activities are rounding communities. The significance of the pro- underway to allow the Government to make an in- ject is evident – DRC’s landmass is almost as formed decision on the future of TACV. large as the whole of Western Europe, therefore transport remains key to in - creasing agriculture, Contact person is Tojoarofenitra Ramanankirahina improving trade, supporting mining growth, over- at tramanankirahina@worldbank.org coming the economic and social barriers that iso- late communities, and providing security through- out the country. DEMOCRATIC REPUBLIC OF CONGO Contact person is Mustapha Benmaamar mbenmaamar@worldbank.org Goma Airport Safety Improvement Project (P153085) In FY15, the World Bank ’s Board approved a DEMOCRATIC REPUBLIC OF CONGO US$52 million IDA grant to help improve the safe - ty, security, and operations of Goma International Multi -Modal Transport Project Airport, the main international gateway of Eastern (P092537) Democratic Republic of Congo (DRC) and repair the infrastructure. The airport is a vital link to con- The Bank approved a US$255 million IDA grant for necting the area to the rest of the country and sup - the Multi -Modal Transport Project in the Democrat- porting ongoing peace consolidation efforts. In ad- ic Republic of Congo (DRC) in 2010 as well as a dition to decades of conflict, the most significant US$180 million additional financing IDA grant in damage to the airport ’s sole runway and taxiway 2013. The project ’s main objectives are to (i) im- resulted from the 2002 Mount Nyiragongo volcano prove transport connectivity in the DRC, (ii) to re - eruption. store Société Nationale des Chemins de Fer du Congo (National Railway Company of DRC, The lava flow from the volcano buried more than SNCC) financial and operational viability, and (iii) one third of the 3,000 -meter runway and isolated to strengthen transport state -owned enterprises the terminal and apron, constraining humanitarian (SOEs) operational performance. aid flows, UN operations, and passenger and car - go transport. There have been seven recorded air The project ’s four main components include: (1) crashes since 2002 at the airport with dozens of SNCC recovery plan, (2) operational performance strengthening and improved governance of the sector, (3) international trade procedures simplifi- KENYA cation, and (4) project management. Most of the Transport Sector Support Project (P124109) project financing (85%) go to the railway compo- nent. The sub-component dedicated to aviation will A US$300 million IDA commitment was approved help DRC move towards compliance with interna- in 2011 for the Transport Sector Support Project in tional safety and security standards through the Kenya. The project ’s objective is to increase the supply and installation of critical equipment for air efficiency of road transport, raise aviation safety traffic control and airspace control. The sub - and security at Kenya ’s airports to international component is financing (US$ 15 million): (i) the standards, and improve the institutional arrange- procurement and installation of ADS -B surveillance ments and capacity of the transport sector. equipment by the National Airways Management Agency/Regie des Voies Aeriennes in five airports Following the fire at Jomo Kenyatta International (RVA), the organization in charge of airports, (ii) a Airport (JKIA) in August 2013 that destroyed the new category II ILS/VOR/DME system for the capi- only international arrival building, the Bank provid- tal’s international airport Kinshasa/N ’Djili (FIH), (iii) ed an additional financing component of US$60 two studies on the development of airports in the million to help finance activities to restore the ca- country (one on freight development at FIH, and pacity of the international passenger terminal de- one on secondary airports), (iv) training for RVA stroyed in a fire at JKIA, strengthen KAA in disas- personnel in air traffic control, airport rescue and ter preparedness and responsiveness at Kenyan firefighting services, and (v) the strengthening of airports, and fill any unanticipated financing gaps. the National Civil Aviation Agency, which is in Most of the emergency activities at JKIA following charge of overall regulation of the sector. (vi) a the fire incident have either been completed or are recertification campaign for the five largest air- nearing completion. lines. The aviation component of the project entails Key activities related to aviation have already been providing support to the Kenya Civil Aviation Au- implemented, albeit with some delays in procure- thority (KCAA) in regulatory capacity building and ment and reforms. The study on the cargo zone in through specific investments in navigation aids Djili airport and the study on secondary airports and training equipment. In addition, support to are complete. The installation of the navigation as- Kenya Airports Authority (KAA) will include provi- sistance systems (CNS/ATM and 5 ADS -B) is pro- sion of a new baggage -handling system at Jomo gressing. Landing assistance systems (ILS/DME) Kenyatta International Airport (JKIA), and capacity are installed at N ’Djili airport while the DVOR/ building and training of manpower in safety, secu- DME initially procured for Kinshasa airport will rity, and airports management. eventually be installed at Kalemie airport. There still remain areas of improvement for the reform of As planned under the project, the Government of governance in the aviation sector. Five of the larg- Kenya agreed to the restructuring of the KCAA by est airlines in DRC seeking recertification initially separating the oversight function from its service failed to provide the requested documentation. provision responsibilities to improve effectiveness of oversight services and contribute to enhanced Contact person is Mustapha Benmaamar efficiency among service providers. Both KAA and mbenmaamar@worldbank.org KCAA have been given financial autonomy and now retain revenues generated. As part of this pro- cess, KCAA has increased the pay packages for key flight safety operations staff, which is critical for carrying out its oversight function. Furthermore, KAA has taken over the responsibility of screening passengers and baggage from the Kenyan police. A consultant has been selected and is assisting in the restructuring process. KAA has to conclude the procurement of several Expansion and improvements at Kisumu airport is outstanding contracts including reconstructing the now complete, and has contributed to the stimula- runway at MIA Mombasa, design for upgrading tion of economic activities in Western Kenya. Traf- power supply at MIA, design for augmenting water fic at the airport has grown from 40,000 passen- supply at JKIA, MIA and Kisumu airport, and sup- gers at the time of appraisal to 400,000 in the year ply of apron buses at JKIA. 2013. The expansion of apron at JKIA and taxiways has Contact person is Josphat O. Sasia at increased the capacity of parking space for air- jsasia@worldbank.org. crafts by 50 percent, and expanded the capacity of the runway. The construction of Terminal 4 (renamed T 1A) is completed and the terminal is in use. TANZANIA TANZANIA Transport Sector Support Project Second Central Transport Corridor Project (P055120) (P103633) In May 2010, the Bank approved a credit of Approved for a credit of US$190 million on 27 May US$270 million for the Transport Sector Support 2008, and additional financing of US$100 million Project (TSSP) in Tanzania. In support of the on 15 January 2013, the Second Central Transport Transport Sector Investment Program (TSIP), the Corridor Project (CTCP2) in Tanzania aims to sup- project ’s goal is the rehabilitation and preparation port the country’s economic growth by providing of designs for part of the paved national road net - enhanced transport facilities that are reliable and work, and the rehabilitation and/or upgrading of cost effective, in line with the National Transport regional airports. Policy and Strategy. This includes the establish- ment of the Bus Rapid Transit (BRT) system in Dar The project received additional funding (AF) of es Salaam and the rehabilitation and extension of US$59 million on 30 June 2011. This prompted the Zanzibar airport runway. revision of the project development objectives and expanded the scope of the aviation component. The Zanzibar airport component (US$39.3 million) The component for airport upgrades and rehabilita- was implemented successfully between April 2009 tion includes (i) the paving and rehabilitation of the and July 2010 and was completed officially on 3 runway at Kigoma airport (ii) the rehabilitation of August 2010. The airport ’s runway was rehabilitat- the main runway at Tabora airport, as well as (iii) ed and extended by 560 meters, from 2,462 me- the extension, rehabilitation and paving of the run- ters to 3,022 meters long. Other works included way and the replacement of the apron, terminal runway marking, the construction of a perimeter and car parking at Bukoba airport, which were access road, repair and provision of new aeronau- signed in FY12. tical ground lights (AGL), and provision of a new filter drainage system on each side of the runway The works at Kigoma and Tabora Airports has for the full length. been completed and final acceptance was done in June 2014. The Bukoba airport runway, and apron The project also financed the detailed design for were also completed and final acceptance was the rehabilitation and extension of Zanzibar airport done in December 2014. The construction of Buko- taxiways and apron and technical assistance to the ba airport terminal building was completed and Zanzibar Ministry of Infrastructure and Communi- provisionally accepted in September 2015. The cation. The apron and taxiway rehabilitation works extension, and rehabilitation and widening works were implemented under the additional financing of the main taxiway (taxiway C), and the construc- credit of IDA ’s Transport Sector Support project tion of the new apron, taxi way D, and a new link (TSSP), with an allocation of US$57.23 million for taxiway in the Zanzibar airport are also completed. works and supervision. The project improved safe - The feasibility study and detailed engineering de - ty and customer satisfaction and has enabled an sign of eleven regional airports as well as the increase in the number of commercial regular preparation of the Civil Aviation Master Plan have flights to Zanzibar. also been completed under the project. Contact Person is Yonas Mchomvu at Contact Person is Yonas Mchomvu at ymchomvu@worldbank.org ymchomvu@worldbank.org CHINA China (CAAC) will follow. It is planned that the Shangrao Sanquingshan Airport Project Shangrao airport will allow several commercial air- (P123729) lines to connect to different domestic large cities. A US$50 million IBRD commitment for the Shan- Airport Acceptance: The regional bureau of CAAC grao Sanqingshan Airport Project was approved in had the acceptance inspection for the completed May 2013. The overall objective of the project is to air-related infrastructure in Aug 2016. The Shan- improve airline connectivity in the northeastern grao municipal construction had the acceptance Jiangxi province, as well as demonstrate the envi- inspection on the non -airfield buildings and munici- ronmental sustainability of the development and pal engineering works in Sep 2016. Certain recom- operation of the Shangrao Sanqingshan Airport. mendations were provided by the inspections, and the contractors are finalizing the civil works and Component 1: The first component of the project installation. Between 6 and 11 October 2016 the covers the airport infrastructure development and flight inspection center of CAAC conducted an in- includes the construction and installation of the spection for navigation equipment and flight proce- following: (a) airfield, runway, taxiway; (b) terminal dures. During the testing flight, the control tower building; (c) air traffic control; (d) freight facility; (e) equipment was fully tested, as well as the runway supporting infrastructure facility, including fuel and lighting system. The testing result met the storage farm, water supply, water supply, power CAAC’s standard and regulation. supply, fire stations, heating, storm/water manage- ment, parking, fence; (f) environmental manage- Airport Operational Arrangement: The operational ment plan; (g) land acquisition and rehabilitation; arrangement for the airport has now been final- (h) auxiliary facility; (i) service vehicles; and (j) ized, and the Jiangxi Airport Group, which is a sub storm water reuse system and ground aircraft aux- -company of the Beijing Capital Airport Group, has iliary power unit. The project is well on track to signed an operating concession agreement with achieve its PDO. The construction of the whole the Shangrao Municipality to operate the Shangrao airport is approaching to the end and the overall airport. Jiangxi Airport Group established a sub - acceptance by the Civil Aviation Administration of company in Dec 2015, Shangrao Airport Operation Company, to take over the operations of Shangrao the Shangrao city circumstances, in terms of sav- airport once the overall acceptance is completed. ing energy, improving efficiency, tourism develop- Currently there are about 60 employees hired for ment and local transport plan. Shangrao Airport Operation Company, and they are taking relevant trainings in the Shangrao air- The project is well on track to achieve its project port. In addition to operating the airport, the Jiang- development objectives. With the construction xi Airport Group will assist Shangrao municipal largely completed, the focus of the project supervi- government and the PMO to obtain the necessary sion has turned to operation arrangement, obtain- approval and clearance from the civil aviation ad- ing the green building certificate and sharing of ministration authorities before the airport is ready green airport design experience more widely. for operation. Contact person is Weimin Zhou at Airline Service Agreement: The Shangrao Munici- wzhou4@worldbank.org pality paid much effort on the establishment of air- lines connecting Shangrao with other major cities in China. The regional bureaus of the Civil Aviation PACIFIC AVIATION INVESTMENT Administration of China (CAAC) have been con- PROGRAM tacted, and the major airline companies have been communicated. To date, Shangrao Municipality In December 2011 IDA approved the Pacific Avia- has signed strategic cooperation agreements with tion Investment Program (PAIP), a series of pro- the Sichuan Airline and the China United Airline, to jects designed to ensure that critical aviation infra- create airlines connecting to Chengdu, Chongqing, structure meets operational safety requirements, Beijing and Foshan. The official service contracts as well as to measures to strengthen regulatory will be signed after the final acceptance of the compliance of international air transport of the par- Shangrao Airport. At the same time, the PMO ticipating Pacific Island Countries. Major elements plans to contact the Shenzhen Airline in the near of the US$220 million program focus on the up- future to secure the connection to Shenzhen, be- grading of and maintenance of critical airport infra- cause there are already many existing travel de- structure, including runway and apron rehabilita- mands between Shangrao and Shenzhen due to tions, improvements to airport terminals, aeronau- the economic activities between two cities. tical equipment (navigation aids, runway lighting), fire and rescue equipment, as well as technical Component 2: The second project component fi- assistance with strengthening of policy and regula- nances consultancy services, studies and training, tory capacity through master planning, reviewing including advisory services to support the Project air services agreements and developing aviation Management Office (PMO) and Shangrao San- sector strategies. qingshan Airport Company Limited (SSAC) on pro- ject coordination and monitoring activities. Other Phase I of PAIP includes projects in Kiribati, Ton- activities will include consultancy services to de- ga and Tuvalu. Samoa entered the program in velop airport operation model for SSAC and com- April 2014 as Phase 2, and IDA has since ap- pliance with regulations and international practic- proved Phase 3 with Vanuatu in March 2015. Solo- es. mon Islands remains an eligible entrant to the IDA regional program. IDA also approved a Pacific Avi- The Shangrao PMO plans to organize a workshop ation Safety Office Reform Project in September in Beijing/Shangrao on the topic of the experienc- 2013 in support of the regional entity ’s regulatory es and lessons learnt during the design and con- advisory mandates. struction of Green Airport covering planning, de- sign, construction and operation. A new study on The Pacific Region Infrastructure Facility (PRIF), a the Shangrao Airport operational manual review multi-donor trust fund, has supported PAIP with and optimization is newly added under the TA resources to enable the continuation of on -going component as to assist the Jiangxi Airport Group regional aviation safety and security oversight in to customize the standard operational manual to participating States during a restructuring and tran- sition of the Pacific Aviation Safety Office (PASO) SAMOA through the IDA-financed PASO Reform Project. Samoa Aviation Investment Program The funding allows grant recipients to purchase (P143408) regulatory oversight advisory services in fulfilling safety inspection requirements for international The project development objective (PDO), which is aviation, while also supporting their obligations as to improve operational safety and oversight of in- a signatory to the Pacific Islands Civil Aviation ternational air transport and associated infrastruc- Safety and Security Treaty. ture, remains achievable. Faleolo International Air- port has maintained all regulatory compliance re- Program contact person is Christopher Bennett at quirements throughout the project. cbennett2@worldbank.org Subsequent to an initial IDA Grant of US$25.0 mil- lion, the World Bank approved in June 2016 Addi- KIRIBATI tional Financing (IDA Credit US$16.62 million Kiribati Aviation Investment Program equivalent), to scale up apron pavement expan- (P128938) sions and fuel hydrant extensions necessary to integrate a new terminal building currently under With an original IDA Grant commitment of construction. The project is completing the third US$22.91 million, the project is entering its fifth year of implementation and is making reasonable year in implementation. The AU$5 Safety and Se- progress towards the development objectives. curity Levy on departing international passengers has been successfully implemented and is being Implementation of the AU$5 regional safety and collected, which represents a major policy security levy for departing international passen- achievement that will result in increased fiscal re- gers has been achieved, representing a major poli- sources towards safer and more secure air cy achievement that will enable increased fiscal transport operations. The project is making good resources towards safe and secure air transport. progress in several areas. The contracts for the Modernization of air traffic communications is un- terminal works and the associated supervision ser- derway. Airfield Rescue and Fire Fighting (ARFF) vices have been signed and respective contractors Category 9 outcomes will be exceeded, as the two have mobilized. Specifications for the replacement additional vehicles will enable Samoa Airport Au- of the airport perimeter fence have now been thority (SAA) to now meet Category 10 status. The agreed upon and it is expected that the contractor pavement rehabilitation works, and airfield ground will mobilize before the end of the year. The re- lighting and navigation aid packages are currently quest for bids for the London -CXI road has now scheduled to be completed one month prior to the been launched. The only remaining major invest- project closing date. ment left to procure is the seawall to protect the eastern end of the runway. The contract of the avi- Contact person is Christopher De Serio at ation advisor has been concluded with considera- cdeserio@worldbank.org ble progress achieved with regards to the develop- ment of air service agreements, the CXI -Nadi sub- sidy and upper air space issues and capacity building activities with the Civil Aviation Authority (CAA). The GoK is now receiving regular revenue from the Safety and Security Levy collected by air- lines such as Fiji Airways as part of the ticket price. Contact person is Pierre Graftieaux at pgraftieaux@worldbank.org and Nora Weisskopf at nweisskopf @worldbank.org TONGA has been completed, financed by PRIF, and an Tonga Aviation Investment Program increased use of PASO services has been facilitat- (P128939) ed through the allocated PRIF budget. The regional study on the Flight Information Region and Upper Subsequent to an original IDA Grant contribution Airspace management, financed by PRIF, has been of US$27.21 million, the World Bank approved in completed. An increased use of PASO services has 2016 a US$7.3 million Additional Finance. The been facilitated through PRIF. project is in the sixth year of implementation schedule. The AU$5 Safety and Security Levy on Contact person is Julie Babinard at departing international passengers has been suc- jbabinard@worldbank.org and Pierre Graftieaux at cessfully implemented and is being collected, pgraftieaux@worldbank.org. which represents a major policy achievement that will result in increased fiscal resources towards safer and more secure air transport operations. TUVALU Upgrading and rehabilitation of runway pavements Tuvalu Aviation Investment Program at both the Fua ’amotu International Airport (TBU) (P128940) and the Vava ’u International Airport (VAV) have been completed in 2016. With an IDA Grant contributions of US$11.85 mil- lion, US$6.06 million and US$2.89 million, the pro- The project continues to progress well, it is on ject is in the sixth year of implementation, with a track to achieve its current development objec- revised closing date of June 2018. The AU$5 tives. The Tonga Airports Limited (TAL) is pro- Safety and Security Levy on departing internation- gressing with procurement of multiple investments al passengers has been successfully implemented including Ha ’apai terminal repairs (funded by TAL), and is being collected, which represents a major Vava ’u terminal extension (funded by TAIP) and policy achievement that will result in increased fis- Fua’amotu International Airport (TBU) control tow- cal resources towards safer and more secure air er and terminal upgrades (funded by TAIP). No transport operations. major issues with the investments were outlined by TAL. The construction of the control tower is ex- Further, Tuvalu has taken the necessary institu- pected to take approximately 12 months. tional steps for restructuring government depart- ments with the separation of regulatory oversight Several other key activities have been completed: from airport management within the Ministry of (i) terminal upgrade, and commissioning of requi- Communications and Transport. site security equipment on site at Vava ’u to sup- port regional operations; (ii) fencing repairs at Fu- The project is progressing well and is almost cer- a’amotu; and (iii) a Training Needs Analysis with tain to achieve a satisfactory outcome and its pro- budget available to the State for implementation. ject development objectives. The runway and road Navigational aids and communications contract is civil works are completed, fuel truck and fire tender in place and the supply and installation is currently have been delivered and are in use, and naviga- ongoing. The contracts for the VSAT design, sup- tion aids have been installed. There have been ply and installation are also in place and procured some delays with the construction of the terminal as a regional good, with the installation of VSAT works due to shipping delays and inclement equipment is not yet completed. A coordinator has weather, resulting in a revised expected comple- been supporting equipment and equipage needs, tion date for the terminal. The GoTv is now receiv- in preparation of a regional rollout of ADS -B, also ing regular revenue from the Safety and Security procured as a regional activity, with the ADS -B in- Levy as well as the higher departure tax, both col- stallation is completed and awaiting commission- lected by Fiji Airways as part of the ticket price. ing. However, there have been a number of challenges affecting the project, particularly with regards to A Regional study to develop the PASO Business the runway and apron resurfacing. Since comple- Development Plan and organizational restructure tion of the works, the newly resurfaced runway has experienced a number of visible failures. An inde- Contact person is Nora Weisskopf at nweisskopf pendent investigation has identified that these fail- @worldbank.org ures are due to pressure build up under the run- way caused by water infiltration exacerbated by tidal and sea level impacts. A design consultancy has been engaged to pilot a number of different potential design solutions on the runway to test the efficacy of the options in alleviating the pressure under the runway. The outcome of the pilots will inform the final designs. VANUATU ments for future aircraft operating types. Procure- Vanuatu Aviation Investment Program ment of two airfield rescue and firefighting (ARFF) (P154149) vehicles is awarded which will lead to upgrading the capability of the ARFF compliance to achieve Airport The project is nearing the midpoint of the implemen- Category 8. ADS-B ground stations have been pro- tation cycle, and is now in the third year of implemen- cured and the VSAT design completed; VSAT hard- tation, with an original IDA Credit contribution of ware contract being finalized. The design of the reha- US$59.5 million. A first Additional Finance for bilitation of Bauerfield is completed, and PRIF funds US$14.1 million has been approved in 2017, and a have been made available to the state in order to fa- second Additional Finance is currently under prepa- cilitate the use of PASO services. ration. The safety and security levy for international departing passengers went into effect on 1 Septem- Contact person is Christopher Bennett at cben- ber 2017. With the mobilization of the contractor to nett2@worldbank.org and Christopher De Serio at repair the runways at Bauerfield, Pekoa and White- cdeserio@worldbank.org grass airports, the project implementation will be ac- celerating. The key studies on the Aviation Sector Plan and the Airports Master Plan are progressing and will provide guidance to the sector. PACIFIC ISLANDS The project Completed activities include the pave- Pacific Aviation Safety Office (PASO) ment coring and deflection testing, as well as tempo- Reform Project (P145057) rary remedial works to the runway realized in order to ensure safe operations at Bauerfield international air- The PASO Reform project, which is entering its port, in Port Vila. A desktop review has been com- fifth year of the original implementation timeline, pleted to confirm the relevancy of the project invest- continues to successfully support aviation safety and security oversight in the Pacific. The project is focused around three components, namely: (i) B. The register of inspectors continues to provide transitional management and support for PASO, expert advice to regulatory authorities, with the comprising technical assistance activities that fa- technical specialists on the registry implement- cilitate implementation of its newly adopted busi- ing State’s agreed annual work plans. ness plan; (ii) the establishment of a pool of re- gional aviation experts available to PASO member C. The Quality Management activity has devel- states to advise on aviation safety and security oped key policies and procedures related to regulatory matters; and (iii) the establishment of organizational staffing and operational direc- appropriate quality assurance and information tives. management systems. D. A new Component was approved in a January Key achievements are: 2017 project restructuring and additional fi- nancing from the Pacific Region Infrastructure A. The PASO Council has endorsed the recom- Facility was approved for Very Small Aperture mendation of the Financial Management and Terminal (VSAT) installations in Cook Islands Sustainability Analysis and are seeking Minis- and Niue. Implementation of the related activi- terial approval to implement the proposed re- ties is underway and is expected to be com- gional levy. An institutional specialist familiar pleted in 2018. with executive management and the aviation sector has evaluated the organizational gov- Contact person is Christopher De Serio at ernance structure and PASO management will cdeserio@worldbank.org begin to implement key recommendations. Dia- logue with Vanuatu the Host State Agreement continues with PASO management. BOLIVIA National Roads and Airport Infrastructure The current state of the project progress is that Project (P122007) civil works were procured and the contract signed in 2017. The supervision selection was launched The Bolivia National Roads and Airport Infrastruc- resulting in the selection of a consulting firm which ture Project supports road infrastructure improve- is about to be contracted, with works beginning ment in the department of La Paz and the upgrad- once supervision is in place. Also, a firefighting ing of airport infrastructure and equipment in the truck has been procured and contracted with deliv- town of Rurrenabaque in the department of Beni. ery at the end of 2017. The revised deadline of the project ’s Bank financ- ing is July 2018. The new 1,500 meter runway has been inaugurated on 15 November 2016 by presi- dent Evo Morales. Works were executed with a direct financing of the Department ’s Government. Contact person is Gylfi Palsson at gpalsson@worldbank.org The investment is being used for the construction of a new taxiway, apron, control tower, operations building, rescue and firefighting buildings, an ac- cess road, a passenger terminal, and the acquisi- tion and installation of aviation control, rescue and firefighting equipment. EGYPT the strengthening of airport operations. Cairo Airport Development Project – TB2 (P101201) Egypt needs to continue expanding airport infrastruc- ture and improve airport services to meet growing Air transport is highly strategic for Egypt’s economic demand, especially at Cairo International Airport, the development because it creates significant employ- main gateway to Egypt. It also needs to continue ment and supports the country’s tourism sector. In strengthening air traffic control infrastructure and air FY09, tourism accounted for 3.5% of Egypt’s GDP traffic management. and generated US$10.5 billion in revenue and 12.4 million visitors. Around 80% of tourists came through The Cairo Airport Development Project-TB2, ap- Egypt’s airports, and tourists represented half of the proved in 2010 for an amount of US$280 million, has international passenger traffic at Cairo International been primarily supporting the rehabilitation and ex- Airport. pansion of the Terminal Building 2 (TB2) at Cairo In- ternational Airport, with a focus on enhancing the ca- About twenty years ago, the Government of Egypt pacity and the quality of services of the airport realized the growing importance of air transport as a (component 1 of the project). The component 2 con- driver of growth in its own right. The Government’s sists of five studies of technical assistance on various objective therefore became to ensure that the liberali- topics. The project has been closed in FY17. zation of air transport would contribute positively to the development of the Egyptian aviation sector. The project’s objectives are to (i) enhance the capac- Thus, Egypt has embarked on the gradual liberaliza- ity and the quality of services of the Cairo Internation- tion of international air services on a bilateral basis al Airport, and (ii) improve the capacity of key stake- with several countries in the Middle East, Africa, and holders (Ministry of Civil Aviation and the Egyptian Europe. It has also significantly improved airport ser- Holding Company for Airports and Air Navigation) in vices through a range of capacity investments and the strategic planning of the air transport sector. The project ’s beneficiaries will be: (i) business and tourism passengers, who will benefit from better airport infrastructure and services, (ii) businesses, which will benefit from extended air transport ser- vices and a more attractive area around Cairo Air- port International, and (iii) workers, who will benefit from job creation through the construction phase as well as after construction, through airport activi- ties as well as activities of industries and services in the area of Cairo International Airport. The project has completed the construction and testing of TB2. On 28 September 2016, the airport operated two airlines in a soft opening. Munich Air- port has been selected to be the terminal operator for TB2 and the interfaces with TB3. Contact person is Olivier Le Ber at oleber@worldbank.org People’s Republic of China port concept done at Shangrao Airport, which is A World Bank mission travelled to China from 3 to committed to attain Chinese energy efficiency cer- 12 April 2017. The World Bank has financed the tification for buildings. construction of the new Shangrao Sanquingshan Airport in the northeastern Jiangxi province. The Contact person is Charles Schlumberger at objective was to improve airline connectivity, cschlumberger@worldbank.org which would support economic development also through tourism. Furthermore, new airport at Shangrao was designed to become a “green air- Democratic Republic Of The Congo port”, which is energy efficient and therefore ad- dresses Climate Change. The mission’s objective A World Bank mission travelled to Kinshasa and was to review the progress made in the imple- Goma, DRC, from 27 May to 17 June 2017. In mentation of the project, discuss and consider the DRC the supervision mission focused on the pro- measures of rendering the airport a “green infra- gress of the Goma Airport Project, which in- structure”, and to prepare the Green Airport Work- cludes including the CAA capacity building work- shop and Carbon Accreditation process. shop of ICAO. In Goma, the construction phase for the rehabilitation of the runway was formally The project was originally approved in May 2013, initiated on 02 May 2017. and the construction of the new Shangrao San- quingshan Airport had well progressed, with the At the time of the mission the contractor did not completion reached recently. The airport design yet commence the works. The construction su- contains several features to lower energy con- pervision firm was present, and the mission dis- sumption and thus implement a “green” airport, cussed various elements of the works, including i.e. energy efficient. For example, the design of the construction of the control tower, and the re- the main terminal allows natural daylight to illumi- habilitation of the tarmac. A central issue has nate most of the building without energy con- been the completion of the drainage system of sumption. Furthermore, heating and cooling is the airport, which the project is financing. The supported by a geothermal installation, which al- challenge for the drainage system is to avoid that lows lowering energy consumption for hearing by it will become the sewer system of the surround- 40%, and for cooling by 30%. Airport is also ing buildings, and as such an environmental equipped with a water treatment system, and dur- challenge. Finally, the objective of certifying the ing its construction, a special emphasize was airport to ICAO standards has been discussed made on the usage of environmentally friendly with the ICAO ’s expert. The challenge for materials. Goma’s certification is that it will need to be done by filing several differences to ICAO Standards In order to capture and disseminate knowledge and Recommended Practices. The World Bank ’s and experiences with the construction and opera- aviation team has been studying this issue in or- tion of a green airport, the World Bank project al- der to identify which mitigation measures will be so finances a study on the project. The dissemi- necessary, and will work with ICAO to achieve nation of information about the Shangrao Airport this important objective. Finally, the issue of a serves to communicate with other airports to ex- possible PPP solution for the rehabilitation of the change expertise and specific knowledge, with the airport terminal was not examined during this further objective of helping identifying future air- mission, but was deferred to the next supervision port projects which aim to replicate the green air mission. In Kinshasa the mission participated in the meeting tion). The workshop ’s focus has been on climate of the Steering Committee of the capacity building change-related issues, including Airport Carbon component, which is executed by ICAO. Overall the Accreditation, noise, waste, water, air quality, wild- technical assistance has made good progress, with life, Environmental Management System, commu- a few areas deserving further fucus: (i) support was nity relations, and among others, with the findings provided to the AAC (Civil Aviation Authority) for directly relevant and applicable for the Carbon the certification of two operators (Congo Airways Certification of Jomo Kenyatta International Air- and FlyCAA); (ii) the first phase of capacity building port. needs assessment was completed; (iii) several in- spectors were trained in Personnel Licensing, Air- Contact person is Charles Schlumberger at craft Operations, and Airworthiness; and (iv) a fol- cschlumberger@worldbank.org low-up mission to the recent USOAP audit support- ed AAC in correcting several findings in various do- mains. Major next steps include (i) the follow -up with the design and supervision consultants to track the general progress and the final approved design of the control tower and tarmac; (ii) discussion with ICAO on the final report of the Steering Committee meeting for the ICAO capacity building project com- ponent; and (iii) Review of safeguards issues in connection of the drainage system. Contact person is Charles Schlumberger at cschlumberger@worldbank.org Kenya A World Bank mission was held in Nairobi, Kenya, from 27 May to 17 June 2017. In Nairobi the su- pervision mission of the Aviation Modernization Project (P156971) focused on airport infrastructure issues, including the green airport strategy, a cru- cial item in World Bank ’s financed projects. The mission met with the design consultant and dis- cussed the implementation of the design consul- tancy, which included various refinements to terms -of-reference in order to include provisions for the preparation of the Airport Carbon Certification. In order the learn about Best Practice of Airport Environmental Management and Airport Carbon Certification, the World Bank has been coordinat- ing a workshop for the Kenyan Airport Authorities and Bank project staff at Athens International Air- port (first airport to receive ACI Carbon Accredita- IFC Air Transport Projects: The IFC provides financing to private sector companies and has traditionally financed air carriers and airport infrastructure projects. IFC PROJECTS IFC’S EXPOSURE (as PROJECT AMOUNT COUNTRY DESCRIPTION of End-of-FY2017) TYPE CODE (Million USD) (Million USD) Africa (Mali, Burkina AKFED Aviation: General purpose loan to 27048 25.0 3.1 A Loan Faso, Uganda) a regional alliance of African Airlines Cambodia Airports II: Privatization of IFC A Loan up to Phnom Penh International Airport – re- $7.5 million, IFC Cambodia 25332 17.5 1.1 quired capital and investments for expan- standby up to sion $10 million IAS: Acquisition of up to 3 secondhand Dauphin N3 helicopters to provide Cote D'Ivoire 32061 7.0 1.1 A Loan transport services to leading oil and gas exploration and production companies MBJ Phase 1 Swap: The proposed project Client Risk Man- is to provide a USD interest rate swap to No outstanding as of June Jamaica 24676 1.2 agement – Inter- hedge the interest rate volatility inherent 2017 mediation in the floating rate IFC Phase 1 loans MBJ Phase II - Expansion and redevelop- 42.0; 20.0 for IFC’s own Jamaica 24306 5.9 A and B loans ment of Sangster International Airport account IFC PROJECTS IFC’S EXPOSURE (as PROJECT AMOUNT COUNTRY DESCRIPTION of End-of-FY2017) TYPE CODE (Million USD) (Million USD) MBJ ROS: The proposed project consists of the runway overlay of Sangster Inter- Jamaica 31658 7.5 4.5 A and B loans national Airport (SIA) and other safety investments IFC A Loan 120.0; 160.0 B Loan Queen Alia International Airport: Rehabil- (26182); IFC Cli- 26182, 34539, 295.0; 120.0 for IFC’s 105.4 A Loan; 14.0 and Jordan itation of both airside and landside facili- ent Risk Manage- 26864 own account 13.3 of swaps ties ment - Cross Currency Swaps (26864, 26685) KQ Airways: Expansion program con- sisting of the acquisition of 9 Boeing 787 Kenya 31650 25.0 5.6 Equity Dreamliner aircrafts and 10 Embraer 190 aircrafts IFC PROJECTS IFC’S EXPOSURE (as PROJECT AMOUNT COUNTRY DESCRIPTION of End-of-FY2017) TYPE CODE (Million USD) (Million USD) Lima Airports Partnership: Financial re- Peru 24489 structuring and assistance in conjunction 20.0 13.4 Equity with Fraport Pulkovo Airport: Financing to expand, 236.0; 101.3 for IFC’s No exposure as of June Russian Federation 28218 A & B Loans develop, operate and maintain airport own account 2017 TAV Tunisia: Construction of a new air- IFC A Loan, Sub- port in Enfidha, with an initial capacity of 253.0; 184.0 for IFC’s ordinated Loan, Tunisia 26913, 28076 109.0 (26913) 7 million passengers per year, and reha- own account Syndicated B bilitation of the airport in Monastir Loan, Equity ASECNA: Financing to enhance member No exposure as of June Africa Region 32546 countries’ airport facilities and to rein- 36.0 A Loan 2017 force air traffic security in the region. Queen Alia II: Stage 2 of expansion and rehabilitation of QAIA consisting of de- IFC A Loan, Syn- 93.8; 21.2 for IFC’s own Jordan 34536 molishing of the old terminals and an 21.2 dicated B Loan account extension of the piers with additional and Parallel Loan contact gates IFC PROJECTS IFC’S EXPOSURE (as PROJECT AMOUNT COUNTRY DESCRIPTION of End-of-FY2017) TYPE CODE (Million USD) (Million USD) Zagreb Airport: Construction and opera- tion of a new passenger terminal and 72.7 for IFC’s own ac- A Loan, Equity, 61.2 related infrastructure at Zagreb Airport count (31969) and C Loan and the existing facilities. Croatia 31969, 34380 1.2 for IFC’s own ac- Client Risk Man- Zagreb Air Hedge: Interest Rate Swap 5.2 count agement (34380) 97.4 A Loan and 3.8 A Loan and Cli- Greek Airports (Infrastructure services 37655 swap (Commitment in 106.2 ent Risk Manage- upgrade at 7 airports) Euros) ment Greece 65.9 A Loan and 2.8 A Loan and Cli- Greek Airports B (Modernization of 7 ad- 38905 swap (Commitment in 71.8 ent Risk Manage- ditional airports in key Greek islands) Euros) ment FCS RE-Ravinala: Upgrade and expansion 43.5 A Loan, 109.4 Par- A Loan, Parallel of the two international airports of the Madagascar 36882 allel Loan and 71.3 MI- 13.2 Loan and MIGA country, with the help of the Emerging GA Guarantee Guarantee Africa Infrastructure Fund. AFRICA: AKFED Aviation (27048) SUB-SAHARAN AFRICA: ASECNA (32546) The Aga Khan Fund for Economic Development The Agence pour la Securite de la Navigation Aer- (“AKFED”), through its Aviation Services division, ienne en Afrique et a Madagascar (ASECNA) is a is currently expanding its activities in both East multi-state governmental agency. It was created in and West Africa. The aim of the division is to as- 1959 and is composed of 18 member countries sist in maintaining the critical aviation infrastruc- (Benin, Guinea Bissau, Burkina Faso, Cameroon, ture in support of economic development and to Central African Republic, Chad, Comoros, Congo, provide much needed regional airline services in Cote d’Ivoire, Equatorial Guinea, France, Gabon, Africa. IFC ’s involvement with the organization in- Madagascar, Mali, Mauritania, Niger, Senegal, cludes a corporate loan of up to US$25 million to and Togo). AKFED for on-lending to its three airlines: Air Burkina, Air Mali and Air Uganda. This allows ASECNA is responsible for the design, implemen- AKFED to consolidate all of the division ’s airlines tation and management of facilities and services and aviation activities and optimize routing, syner- related to the transmission of messages and traffic gies and overall effectiveness across the group ’s information, guiding aircrafts, air traffic control, airline operations. forecasting and reporting meteorological infor- mation, for traffic route, approach and landing at Loan proceeds will be used to fund fleet acquisi- airports in African members countries. It is also in tion cost (introduction of nine refurbished MD -87 charge of the maintenance of all facilities required and two MD -83 aircraft) and other airline develop- for the implementation of these services, including ment costs including training of crews and engi- the management of an airspace covering 16 mil- neers, purchase of spare parts, and improving lion square km, with a total of 32 airports. maintenance facilities. IFC investment consist of an A loan of USD$36.03 The project is expected to promote inter -regional million aimed at financing a list of specific infra- and international trade in the region. Additionally, structure refurbishment including purchase and the project is also expected to provide a boost to installation of back -up power equipment in a num- tourism. Continued trade and economic growth in ber of member countries in Africa. The loan is de- Africa is contingent on further investments and im- signed to promote regional and integration and provements in regional transport infrastructure and improve air space management facilities, infra- services. The division ’s operation will fill the ser- structure, and communications thus enhancing vice gap that exists today and will result in in- member countries ’ safety in the air transportation creased frequencies for existing destinations as sector. well as the addition of new destinations, better passenger service and improved efficiency and safety. Such improvements will increase the con- nectivity, competitiveness and attractiveness of COTE D’IVOIRE: International Aircraft these countries ’ economies. Moreover, the project Services (32061) will support regional integration by assisting the development and expansion of a group of regional The project, which was approved in March 2013, airlines. provides financing of US$7 million to International Aircraft Services (IAS) for the acquisition of up to three secondhand Dauphin N3 helicopters by IAS. The helicopters are to be used to provide transport services to leading oil and gas exploration and production companies in Cote d ’Ivoire and the CROATIA: Zagreb International Airport Western African region. The project will enable (31969) IAS to modernize its fleet with newer helicopters to meet its client needs. The IFC is supporting the development of a termi- nal at Zagreb International Airport as part of a IAS is an aviation operator and maintenance com- Public Private Partnership (PPP). The new pany created in 2002 and registered with the Ivory US$450 million terminal, built by a consortium Coast Civil Aviation Authority. It provides mostly supported by IFC, is expected to contribute to eco- helicopter transport services to the oil and gas in- nomic growth and tourist activity. Tourism is a ma- dustry in Cote d ’Ivoire and to the mining industry jor driver of employment in Croatia, and improved in West Africa. The company currently owns 13 infrastructure will develop the sector and boost helicopters and employs 25 pilots. IAS is based in GDP. IFC is committing US$72.65 million to the Felix Houphouet -Boigny International Airport, project, including a loan of up to US$47 million which is approximately 16 km South -East of Abid- and an equity investment of nearly US$26 million. jan. The concession includes financing, design, and construction of the terminal, along with airport op- The expected development impact will be develop- eration until 2042. ing local know-how, and support the development of exploration and production of natural gas activi- The new terminal will be 65,000 square meters ties by providing reasonably priced transportation and is expected to welcome 5 million travelers per services. The project also hopes to create a year when it opens in 2017, compared to the cur- demonstration effect by providing financing to a rent capacity of 2 million. An average of 400 new company in a post -conflict country to pave the way jobs are expected to be created during construc- for more investments in the future. tion, and up to 700 at peak. For the first time in Croatia private firms involved in a transport con- cession project have assumed passenger volume risks, enabling the country to upgrade essential its presence in the most important intra -African infrastructure without adding a burden to state fi- markets as well as become a significant player in nances. long haul origin -destination city pairs that are ex- pected to grow over the next few years. To imple- ment the project, the company has placed firm or- KENYA: Kenya Airways Expansion Plan ders to aircraft manufacturers in connection with (31650) the acquisition of nine Boeing 787 Dreamliner air- craft and ten Embraer 190 aircraft. IFC's support of Kenya Airways expansion plan is expected to have significant development impact. At the regional level of Sub Saharan Africa, the launch of the freighter division coupled with the opening of new intra-Africa destinations will con- tribute to markets integration and will reduce the transactional costs of trade, an aspect that is ex- Kenya Airways Ltd. (KQ), the national carrier of tremely important to promote the economic devel- Kenya and the third largest airline in Sub -Saharan opment of the SSA economies. Africa (in terms of seat capacity offered), is in the midst of implementing a strategic fleet and net- KQ's entry into new international markets will also work expansion plan. It is focused on growing its promote competition as well as provide a key passenger network and diversifying its fleet to transportation link between growing economies in match the network needs, as well as launching a the Middle East and Northern Africa region and dedicated freighter division. Having reached a crit- Asia promoting international trade, South -South ical mass and achieved a solid financial position, Investments and tourism to and from Africa. KQ finds itself well positioned to capitalize on the growth prospects and opportunities that the Afri- Contact person for all IFC Investment projects is can region and the international market present. Pierre Pozzo di Borgo at ppozzodiborgo@ifc.org KQ’s strategic intent is to establish its brand and The Infrastructure Advisory Services Department 2) IFC Public-Private Partnerships (PPP) Advi- of the IFC provides advisory assistance to govern- sory Mandates in Airlines ments on structuring and implementing (tendering) Public -Private -Partnerships (PPPs) in infrastruc- As the airline industry has proceeded along this ture. IFC has undertaken more than 100 advisory privatization path over the last 30 years, IFC has transactions in over 67 countries over the last 20 participated in nearly a dozen airline transactions. years. IFC/World Bank's reputation for compe- Unfortunately, many have proved to be difficult tence, transparency, and fairness allows it to play projects due to important sector -specific structural the role of neutral partner to balance each party's reasons: interest, thus reassuring foreign investors, local partners, other creditors, and government authori- • Fixed -cost structure: Airlines tend to build up a ties. The two main domains in air transportation legacy-costs base (staff and fleet) that is diffi- advisory services are private sector participation in cult for a new owner to manage. In addition, airports and air carriers. fuel costs are beyond management ’s control. During the period of higher oil price in 2011 - 1) IFC Public-Private Partnerships (PPP) Advi- 2014, they accounted for as much as 30% of sory Mandates in Airports the cost base (up from 15 -20% in 2009), and have since dropped with declining oil prices Only a fraction of the world ’s commercial airports (variations according to individual airline hedg- are managed or owned by private sector entities. ing strategies). However, as passengers carried by air transport • Price-sensitive product: Demand for travel is has neared 4.1 billion in 2017, and more than one - highly elastic, especially in tourist markets. In third in value of all merchandise and goods were recessions, people forgo vacations for other air freighted – Public -Private -Partnerships (PPPs) consumer goods. Conversely, price reductions in airport infrastructure will grow to meet invest- increase passenger numbers dramatically. ment and required service standards. Airport PPPs • Complicated demand chain: Customers often are useful approaches to meet both private and purchase tickets through travel agents, fre- public sector objectives. quently in a package with hotel accommoda- Of the various airport PPP models available, expe- tions. Since airlines rely on these other actors rience shows that concessions and full divestiture for their sales, if there are bottlenecks else- are most effective: where the aviation sector suffers. • Concession Contracts (BOT, BOO, BOOT, • Overregulation: Bilateral agreements between BTO, etc.): State retains ownership of airport governments, still prevalent in many parts of but transfers investment as well as operations the world, prevent competition from functioning and management responsibilities to the private normally. Open skies are being adopted, but sector not in all countries. • Full Divestiture: Ownership, operations, and investment responsibilities are fully transferred 3) IFC Air Transportation Experience to the private sector. • In certain cases, a blend of first -phase BOT When undertaking a transaction advisory man- followed by public offering can maximize bene- date, IFC provides a one -stop solution to govern- fits ments covering all aspects of the proposed trans- action. One of the distinguishing features of IFC ’s In certain cases, a blend of first -phase BOT fol- value addition is its ability to balance private and lowed by public offering can maximize benefits. public sector interests and take into account sus- tainable long term economic and social effects. Selected IFC Advisory Mandates in Airports PROJECT NAME COUNTRY YEAR MANDATE/RESULT Samoa Airline JV Samoa 2017 JV Options Analysis Jacksons Airport Papua New Guinea 2017 Strategic Options Analysis Clark Airport Philippines 2016-ongoing Due Diligence ongoing Nepal Airports Nepal 2016-ongoing Strategic Assessment Ongoing Jamaica Airports Jamaica 2011-ongoing RFP Process Ongoing Due Diligence / Project Structuring / Jeddah Airport Saudi Arabia 2016 Tender process Taif Airport Saudi Arabia 2016 Due Diligence / Project Structuring Saint Lucia Airport Saint Lucia 2016 Due Diligence / Project Structuring Croatia Airlines Croatia 2015 Strategic Partnership analysis Galeao and Confins Airports success- Brazilian Airports Brazil 2014 fully awarded to Changi and Zurich Airport led consortiums respectively Dili Airport East Timor 2014 Feasibility Study Completed Successfully awarded to TAV, Saudi Madinah Airport Saudi Arabia 2012 Oger, Al Rajhi consortium Successfully awarded to MAHB — Male Airport Maldives 2010 GMR Successfully awarded to Aéroports de Queen Alia Airport Jordan 2007 Paris, ADIC, J&P, Noor consortium Successfully awarded to Saudi Bin Hajj Terminal Saudi Arabia 2007 Laden Group, Aéroports de Paris con- sortium Successfully awarded to Abuja Gate- Abuja Airport Nigeria 2006 way consortium (Airport Authority and equity partners) Air Jamaica Jamaica 2009 Awarded to Caribbean Airlines Drukair Bhutan 2008 Strategic analysis JAT Yugoslavia 2006 Strategic analysis Polynesian Airlines Samoa 2005 49% sold to Virgin Blue Cameroon Airlines Cameroon 2005 Awarded but cancelled by Govt. Air Tanzania Tanzania 2002 49% sold to SAA Kenya Airways Kenya 1996 76% sold to KLM, financial investors GALEÃO AND CONFINS AIRPORTS Building on a previously completed round of con- Changi Airport Group. The winning bid was cessions from 2011, the Brazilian Development US$7.9 billion, and US$ 2 billion will be invested Bank (BNDES) approached IFC in mid -2012 to as- over the concession term. sist with the second round of airport concessions, covering Galeão and Confins airports, in coopera- Confins International Airport , is the main com- tion with Estruturadora Brasileira de Projetos mercial airport in the Belo Horizonte region, with a (EBP). The National Aviation Secretary (SAC) au- population of approximately six million people. thorized EBP to develop the financial, engineering, The project was structured as a 30 -year conces- and environmental studies necessary for the two sion, through which the O&M of assets is trans- airport projects. In order to undertake these activi- ferred to the concessionaire. The concessionaire ties, EBP and IFC signed a Cooperation Agree- has the responsibility to provide all the necessary ment, with IFC focusing principally on the technical investments, including civil works, to meet growing work stream. Both projects closed in April 2014. demand. Confins was awarded to the Aerobrasil consortium, composed by CCR/SA, a large Brazili- Galeão International Airport is located in the an engineering and construction company, and southeast region of Brazil; the airport serves as a Flughafen Zurich AG. The winning bid was major air transportation hub for the country and US$750 million, and US$1.2 billion will be invested region. The Galeão project was structured as a 25 over the concession term. -year concession, through which the operation and management of assets is transferred to the con- Contact persons for all IFC air transport advisory cessionaire. The concessionaire is responsible for services projects are Ramatou Magagi at providing all necessary investments, including civil rmagagi@ifc.org and Alexandre Leigh at works, to meet growing demand. Galeão airport aleigh@ifc.org was awarded to the Aeroportos do Futuro consorti- um, composed of Odebrecht, a leading Brazilian engineering and construction company, and region of Quito. The airport replaces the existing airport in the city of Quito, which Guarantees provided by the Multilateral suffers from safety deficiencies as well as Investment Guarantee Agency (MIGA) capacity constraints . cover projects in a broad range of sectors, with projects in infrastructure accounting for an important share of the agency ’s PERU: Jorge Chavez International portfolio. Infrastructure development is an Airport (JCIA) important priority for MIGA given the esti- mated need for US$230 billion a year MIGA provided Fraport AG of Germany solely for new investment (maintenance with a guarantee of US$11.5 million to needs are of a similar magnitude) to deal cover its US$12.8 million counter guaran- with rapidly growing urban centers and tee for a performance bond posted for the underserved rural populations in develop- privatization of Lima's airport, Jorge ing countries. Two examples of projects Chavez International Airport (JCIA). The undertaken by MIGA include Jorge coverage is against the risk of expropria- Chavez International Airport in Peru and tion (the wrongful call of the performance New Airport in Ecuador. bond), and extends for eight years. The Peruvian government views airport EQUADOR: New Airport at Quito privatization as central to its efforts to ex- pand employment opportunities, and cre- MIGA issued three guarantees of US$32.8 ate a modern transportation facility to million, US$16.4 million, and US$16.4 mil- serve as the country's gateway to the lion to the Aecon Group INC. of Canada, world. It will also enhance and expand the HAS Development Corporation of the tourism, another key government goal. United States, and ADC Management Ltd. of the United Kingdom for their respective During the first four years of the conces- shareholder loans to Corporacion Quiport sion, the consortium is expected to invest of Ecuador. In addition, MIGA also issued over US$130 million in new infrastructure, guarantees of US$450,000, US$225,000, including upgrades to the current terminal, and US$225,000 for the investors' respec- construction of a new passenger con- tive equity investments in the project en- course, expansion and addition of new air- terprise. craft aprons and taxiways, and creation of a hotel and retail center within the existing The Aecon Group and HAS Development airport perimeter. Corporation have coverage for a period of 14 years for their shareholder loans, while Contact person for all MIGA guarantees is the remaining four guarantees are for a Carlo Bongianni at period of 15 years. Each guarantee pro- cbongianni@worldbank.org vides coverage against the risks of Trans- fer Restriction, War and Civil Disturbance, and Breach of Contract. The project involves the construction of a new airport near Puembo, 24 km outside the capital city of Quito. The project will be a key economic driver for sustainable eco- nomic development of the metropolitan KNOWLEDGE SHARING: build a partnership that would provide tech- THE GLOBAL MARKET -BASED nical and financial assistance to World MEASURES FOR AVIATION Bank Group (WBG) client countries to build the necessary carbon market infrastructure On 07 December 2016, the International to comply with the CORSIA. The BBL was Aviation Day, the Air Transport Community well -participated and generated a fruitful of Practice (ATCOP) hosted a Brown Bag discussion about the agreement, its poten- Lunch (BBL) in cooperation with the Cli- tial implications and opportunities for WBG mate Change Cross Cutting Solutions Area engagement. (CCSA) on the topic of the Global Market - Jose Luis Irigoyen, Director of the Based Measure for Aviation (GMBM). Transport & ICT Global Practice (T&I) A historic agreement was reached to miti- opened the BBL with a few words to high- gate international aviation emissions at the light the prioritization of the Transport sec- 39th Assembly of the International Civil Avi- tor in the context of Climate Change and a ation Organization (ICAO) on October 6, renewed focus on policies. Tanguy de 2016. The GMBM known as Carbon Offset- Bienassis and Eduardo Ferreira of the Cli- ting and Reduction Scheme for Internation- mate CCSA then provided an overview of al Aviation (CORSIA) is designed to com- the historic agreement and presented the plement the basket of mitigation measures World Bank ’s proposed Capacity Building the air transport community is already pur- Initiative to help WBG ’s client countries to suing to reduce CO2 emissions from inter- get ready to comply with CORSIA and to national aviation activities. Under the raise their climate ambitions and invest in agreement, countries (and/or airlines) will sustainable aviation. have to purchase carbon offsets to com- The two guest speakers, Nancy Young of pensate for any increase in carbon emis- Airlines for America and Carl Burleson of sions from international flights starting in the US Federal Aviation Administration, 2020. Aviation currently represents approx- shared their perspectives on the topic. imately 2% of worldwide emissions - as From the US regulator ’s standpoint, Bur- much as the 7th largest emitter - a number leson highlighted that underpinning the anticipated to rise exponentially by 2050, agreement, both industry and regulators and today the sector is not regulated under share a mutual interest in having one ap- international climate agreements. proach to carbon offsetting and a system The Transport GP in collaboration with the that is simple to understand and can be Climate Change CCSA has already started factored into business plans. He also ex- discussions with the ICAO Secretariat to pressed his support and the critical need for providing capacity building to develop- ing states and insisted that the World Bank had a key role to play. Young emphasized that CORSIA is a “gap filler ” in the basket of measures to keep aviation emissions at the 2020 level. At the 2050 horizon, the ambition is to reduce emissions through the development of new aircraft technology, sustainable alternative fuels and improve- ment in infrastructure and operations. Overall there is broad positive reception on the ICAO outcome from the industry. KNOWLEDGE SHARING: AIR TRANSPORT WORKSHOP AND LEARNING EVENT As part of the Transport and ICT Knowledge and WBG can play an important role by supporting its cli- Learning Form 2017, an Air Transport Workshop was ent countries on CORSIA. held on 27 February 2017. The objective was to up- Eduardo Ferreira acknowledged the need to support date transport staff on three themes of the air client countries in capacity building. The objective transport sector: was to leverage existing initiatives from the World 1. Air Transport Financing by the Bank: Charles E. Bank to provide capacity building and channel finan- Schlumberger, outlined the current air transport port- cial assistance to developing countries for a success- folio of the WBG, and talked about the kind of pro- ful and ambitious implementation of the CORSIA. jects (investment, T/A, capacity building). 3. Unmanned Aerial Systems (UAS): Edward Ander- Pierre A. Pozzo di Borgo, outlined his experience in son presented activities with UAS the Bank was con- private air transport sector projects (airports and air- ducting in various projects. For the time being, these lines) in client countries, with a special focus on Afri- were concentrated on mapping and visualization of ca. The challenge in Africa is the relatively small mar- disaster areas, primarily in Africa. The Bank was also ket for air services, and the high associated cost of providing technical assistance to client countries for the sector. In addition, several countries want to oper- the application of UAS. Another application that the ate their state-owned carriers, and keep protecting Bank was considering is the project of the Rwanda them against competition. Another issue is the fact Drone Hubs, which allow the transportation of small that several states are planning new airports with the cargo, such as blood samples or medicine. There are objective to become a hub, while there was no case many more applications for potential Bank use, in- to justify this. There are therefore, even though the cluding taking drones for preparation or supervision need for better air services in Africa exists, not many of projects. Finally, GSURR has prepared the first private sector air transport projects in Africa that draft position paper for Unmanned Aerial Vehicles could bear fruits. (UAV) Technology. ATCOP and GSURR have agreed to co-operate on the development of applica- Lincoln Flor presented financing of airport Private- tions, technical support, and guidelines on UAS. Public Partnerships in Latin America. He explained that several airport PPP projects were done in the Christina Engh, UASolutions Group, provided an in- region in the past years, but the main partners are teresting analysis on who the application of UAS can regional MFIs. While the WBG had only participated support the WBG objectives to end extreme poverty, in eight small PPP deals in LAC between 1990 and promote shared prosperity, and to support the global 2015, there was still potential for IDRB or IDA to fill sustainable development agenda. These include (i) some financing gap in pending airport PPP. the transportation of goods, (ii) improve the global 2. Climate Change and Aviation: Shomik Mehndiratta, food supply chain, (iii) create opportunities for eco- moderated the session on Climate Change and Avia- nomic growth and equity, and (iv) address the refu- tion, which was co-organized with the Carbon Fi- gee crisis by e.g. saving migrants at sea . nance Group of the WB. Mark Gibson, Senior Advisor UAS, FAA, outlined the Dr. Lourdes Maurice, Executive Director of the Office US efforts to regulate UAS. UAS needed to be regu- of Environment & Energy, US FAA, outlined the lated for various reasons, such as safety and securi- agreement reached at ICAO on the Carbon offsetting ty. Small recreational drones, for example, must now and Reduction Scheme for International Aviation be registered with the FAA. The regulation of com- (CORSIA). She explained that ICAO is working to de- mercial UAS had initially well progress, but one of the velop Standards And Recommended Practices current challenges are security considerations. In (SARPs) that the U.S. and other Member States will t6hat context it was important that countries coordi- need to implement into national law. The challenge is nate the regulatory efforts with international organiza- timing, and the need for many emerging countries to tions . The US FAA can provide certain support, as its develop capacities to implement CORSIA. Here the regulation has progressed fairly well. WORLD BANK STAFF AIR TRAVEL The Bank has maintained an evaluation by American Express for Bank staff in Fis- tool for assessing risks associated with air cal Year 2017 (from HQ), representing a travel for mission travel since 2008. The decrease in traveling by 0.4% compared air carrier advisory system developed by to Fiscal Year 2016. The majority of flights the Bank ’s General Services Department booked were with airlines considered to and Air Transport team was launched in be “Good to fly”. Note: This data does not FY2011. Airline ratings/risk are based on capture trips arranged in the regions. the following criteria: Risk Criteria: Travelers should be aware that surface 1. Serious accident in the last 3 years transportation may not always be possible (defined as any incident that results in in- jury or death of a passenger, or substan- or may represent more risks than air travel tial damage to the aircraft) in some client countries. The advisory 2. Registered in a country with poor over- team continues to provide on -demand as- sight (based on ICAO safety audit) sessments and safety advice for opera- 3. A flag of convenience airline (an airline tional staff. that is registered and maintained in a Contact person is Shruti Vijayakumar at country other than where it operates) 4. Use of aircraft over 20 years old svijayakumar@worldbank.org and Ndeye Overall there were 193,686 flights booked Anna Ba at nba@worldbank.org 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 are deemed to be unsafe for other alternatives before selecting this airline for mission 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. ACI -WBG ANNUAL AVIATION SYMPOSIUM The objective of this annual event with the The WBG continues to strengthen its part- air transport industry is to take stock of the nership with Airports Council International main issues, challenges and opportunities (ACI). In April 2017, the two organizations the industry is facing. With participants ’ af- joined forces to host the third ACI -WBG filiations ranging from airport operators, fi- Aviation Symposium, held annually in Lon- nancial institutions, regulators, rating agen- don prior to ACI ’s Annual Finance and Eco- cies and advisory firms, the ACI -World nomics Conference, of which WBG is a Bank Aviation Symposium and the ACI Air- supporting partner going forward. port Economics & Finance Conference & Exhibition has been again a unique occa- The WBG delegation was led by Dr. sion where the industry committed to sit to- Charles E. Schlumberger, Lead Air gether to exchange knowledge, network, Transport Specialist at The World Bank, share analyses and set the course for the supported by Aldo Giovannitti, Aviation upcoming years. Specialist at The World Bank, and included World Bank and IFC staff participation. Following the event, a White Paper was WBG staff highlighted the Bank ’s role in prepared by Aldo Giovannitti, Aviation Spe- aviation finance and development, focusing cialist at The World Bank. The paper sum- on the priority of improving air transport in marizes the discussions that took place small island nations, landlocked developing during the 3rd ACI -World Bank Aviation countries and many parts of Africa Symposium and the 9th ACI Airport Eco- (especially West Africa), including needed nomics & Finance Conference. policy and regulatory reforms and facilita- tion of private investments. COOPERATION WITH INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO) During the A39, the principle of Global Market- Based Measure (GMBM) was adopted The dur- ICAO is the specialized air transport agency of ing the preceding discussions, the WB presented the United Nations. The WBG and ICAO have a working paper WP/248 which urged States to long history of cooperation in the development of adopt the GMBM as described in WP/52. The the air transport sector in emerging and develop- Carbon Offsetting and Reduction Scheme for ing countries. The field of cooperation includes International Aviation (CORSIA) was subse- air transport policy, safety and security, facilita- quently adopted on 6 October 2016. tion, airport and air traffic control infrastructure, and the environment. During the seventh session of the Executive Committee, the World Bank’s working paper From 25 - 30 September 2016, CES led a mission WP/240 was presented. The paper outlines the to represent the WBG at the 39th Assembly of WBG’s support in the air transport sector and in ICAO “ A39”, and to attend the ICAO World Avi- the achievement of the SDGs. The paper recog- ation Forum (IWAF) which preceded the A39. nizes the importance of elevating the priority of The main objective of the IWAF was to discuss the aviation sector in the national development the Aviation Partnerships for Sustainable Devel- plans of Member States, and urges Member opment. The importance of safe, secure, and States to consider the inclusion of the air efficient air transport for sustainable develop- transport sector in their development strategies ment was underscored. CES participated as through their respective Country Partnership speaker and elaborated on the funding mecha- Frameworks (CPFs) with the WBG. nism for aviation development of the WBG. Several World Bank staff members are licensed was carried out by Charles E. Schlumberger, Lead and active pilots, certified by the US FAA and/or Air Transport Specialist and Daniel M. Saslavsky, European Aviation Authorities EASA. To remain Transport Economist at the World Bank, was a current on their pilot qualifications, they regularly flight to transport one year old Norien, who is suf- fly and undergo required refresher training. The fering from Arthrogryposis Mulitplex Congenita, most rewarding way of keeping current is to en- and his parents from her home in Lynchburg, Vir- gage in community service by providing free air ginia, to Philadelphia, Pennsylvania, for treatment transportation to people of all ages whose medical at the Shriner's Hospital for Children. needs – evaluation, diagnosis, and treatment – can only be met by health care facilities far from The WBG ’s contribution, in accordance to Staff their homes. Manual 9.10, consisted of one day of administra- tive leave to carry out this rewarding community In the US, the not -for-profit organization Angel service. Flight provides timely travel to patients who cannot withstand traveling long distances by automobile, Contact person is Charles E. Schlumberger at rail, or bus, or who do not have the financial cschlumberger@worldbank.org means to use suitable alternative transportation. For more information visit: Oftentimes, transport in smaller, private aircraft www.angelflighteast.org can better accommodate patients whose condi- tions could worsen if exposed to the re -circulated air on commercial flights, or who need efficient point -to-point transport. One example of an Angel Flight mission, which Air Transportation will continue its strong approach will primarily aim at policy and the growth over the coming years. According to mobilization of private funding for the ex- IATA, 7.8 billion passengers will travel in pansion of necessary infrastructure. By ap- 2036, a near doubling of the 4 billion air plying the principles of the “Cascade Ap- travelers expected that flew in 2017. IATA’s proach”, as discussed in the introduction of prediction is based on a 3.6% average this report, the WBG will help clients mobi- Compound Annual Growth Rate (CAGR) lizing the private sector, for example by es- over the next two decades. The biggest tablishing PPPs for major infrastructure pro- driver of demand will be the Asia-Pacific jects. This may continue decreasing the region, where more than half the new pas- WBG air transport portfolio decline on in sengers are sourced. Its growth rate of terms of IBRD/IDA financing, while IFC 4.6% will generate 2.1 billion annual pas- could increase its activities on advisory ser- sengers by 2036, creating an Asia-Pacific vices and investment financing of private market size of 3.5 billion. entities. In poorer countries, where PPPs are difficult or too early, the WBG will con- However, the strongest growth rates are tinue to support investments for selective air expected in Africa, which will grow by 5.9%. transport infrastructure. The main regional By 2036, Africa will need to accommodate focus continues to be on African countries, an additional 274 million passengers a year and on several Pacific Island States, which for a total market of 400 million passengers. are modernizing their aviation infrastructure. This is followed by the Middle East, which will grow by 5.0%, resulting in an additional To address the environmental challenges of 322 million passengers a year, reaching a aviation, given it is the strongest growing total market size of 517 million passengers. emitter of greenhouse gases, ICAO adopted Latin American markets, finally, will grow by two resolutions at its 39th Assembly. The 4.2%, serving 757 million passengers by first is an endorsement of a basket of 2036, an increase of 421 million passengers measures, including technology, operations, annually compared to today. and alternative fuels, the second concerns market-based measures, which include the The strong growth of air transportation in Carbon Offsetting and Reduction Scheme emerging and developing will serve as cata- for International Aviation. For implementa- lyst for economic development. However, tion of these measures, states need to pre- expansion of these markets will depend on pare action plans. The WBG is supporting several factors. First, many lesser devel- client countries in capacity building for the oped states must adjust their policies in implementation of these plans. Furthermore, terms of access to markets (liberalization), the WBG provides carbon off-set solutions taxation of the sector, and facilitation of pri- by its Carbon Finance unit. vate and/or foreign investment. Second, large improvements and expansion of air- The focus of research continues to be on air port and air traffic management infrastruc- transport development in Africa. An assess- ture will be necessary. In many poorer ment of infrastructure development needs, countries, this often requires non- as well as the question on how to best ad- governmental sources of financing, as pub- dress certain policy issues, such as high lic funding is limited. Third, the expansion of charges or taxes on the sector or restricting air services must be safe, secure, and sus- access to protect a struggling national carri- tainable. Complying with international stand- er, will be researched and discussed in co- ards in terms of safety and security are a operation with the African Development prerequisite for sustainable growth. In addi- Bank and ECOWAS. tion, environmental sustainability has be- Finally, maintaining or developing produc- come a global initiative, in which emerging tive partnerships with the air transport in- countries will need to participate. dustry, as well as with bilateral and interna- Given the above-mentioned growth and tional partners, as it is essential for achiev- economic opportunities for emerging coun- ing the development objectives. The WBG tries, but also given the stated challenges, has partnerships in air transportation with the WBG will continue to support the devel- ICAO, ACI, IATA, as well as with multina- opment of air transportation in selected cli- tional and regional development banks. ent countries. However, the development Photography Credits: • Page 33, JeppView Electronic Chart Viewer, in cooperation with Jeppesen a Boeing Company. • Page 47, Kenya Airway’s Dreamliner, Kenya Airways official website. • All other images belong to WBG or contributors to this report.