Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) Pacific Aviation Safety Office Reform (P145057) EAST ASIA AND PACIFIC | Pacific Islands | Transport & Digital Development Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 10 | ARCHIVED on 25-May-2018 | ISR31592 | Implementing Agencies: Pacific Aviation Safety Office, Pacific Aviation Safety Office Key Dates Key Project Dates Bank Approval Date:30-Sep-2013 Effectiveness Date:12-Dec-2013 Planned Mid Term Review Date:01-Jul-2016 Actual Mid-Term Review Date:20-Apr-2016 Original Closing Date:31-Dec-2018 Revised Closing Date:31-Dec-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) To ensure effective regional delivery of aviation safety and security oversight in Pacific Island Countries by strengthening thePacific Aviation Safety Office’s technical and coordination capacity. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)PHRPDODEL The project development objective is to strengthen the coordination capacity of the Pacific Aviation Safety Office to deliver regional aviation safety and security oversight, and technical and advisory services to the Pacific Island Countries. Components Name Component A: Transitional Management and Support:(Cost $1.75 M) Component B: Establishment of a Pool of Regional Aviation Inspectors:(Cost $0.27 M) Component C: Quality Management:(Cost $0.23 M) Component D: Safety Equipment and Infrastructure:(Cost $0.85 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory 5/25/2018 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The PASO Reform project, which is in its fifth year of the original implementation timeline, continues to successfully support aviation safety and security oversight in the Pacific. With the addition of an Operations Manager and Corporate Services Manager were appointed in April and May 2018, respectively, three core technical staff positions have been filled. The PASO Council has also endorsed the recommendation of the Financial Management and Sustainability Analysis and will be implementing a new 'total cost model'. There has been an increased uptake in PASO services, reflecting the improved level of confidence in PASO inspectorate knowledge and skills. With a target for undertaking 80 percent of the recommended Annual Work Programs implemented by PASO member states, implementation rates average 68.7% (2014); 49.9% (2015); 61.7% (2016), and 80.1% (2017), respectively, over the project period. More critical is the level of oversight days conducted, which has generally seen an increase from 272 days in 2014 to 426 days in 2017. Beyond the minimum scheduled oversight regimes, 2016 and 2017 witnessed additional expansion of advisory services related to addressing gaps in States’ regulatory frameworks undertaken by PASO through funding provided by New Zealand Ministry of Foreign Affairs and Trade (MFAT). The register of inspectors continues to provide expert advice to regulatory authorities, with the technical specialists on the registry implementing State’s agreed annual work plans. The PASO Council has adopted an updated set of new business materials, including: (i) PASO Employment Policy and Procedures Manual; (ii) PASO's Financial Management Policies and Procedures Manual; and (iii) Skills Development and Training Policy. A PASO Suite of Manuals have been also refined and accepted by Council. A PASONet IT Strategy was recently completed in January 2018. New Very Small Aperture Terminal (VSAT) installations in Cook Islands and Niue will provide regional aeronautical communication network upgrades. Implementation of the related activities that are underway are expected to be completed in early 2019. On May 23, 2018, the World Bank Board of Executive Directors approved an additional IDA regional grant in the amount of SDR 2.50 million (US$3.55 million equivalent). The second Additional Financing will allow PASO to meet cost overruns and support a scale-up of new activities. It will further enable PASO to progress towards the successful completion of the reform activities, thereby ensuring the continued effective and efficient delivery of safety and security oversight functions to its Member States. The project closing date has been extended three years to 31 December 2021. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Low Stakeholders  --  Moderate  Moderate 5/25/2018 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Indicator One: Successful recruitment of General Manager, Operations Manager, Corporate Services Manager (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target General General Manager General Manager Manager, appointed in October appointed in October Operations 2016. Technical 2016. Operations Manager, Value No positions filled specialists provided by Manager appointed in Corporate regional pool of April 2018. Corporate Services inspectors. Services Manager Manager in appointed in May 2018. place Date 01-Nov-2013 31-Oct-2017 23-May-2018 31-Dec-2019 Comments The reform project originally envisaged recruiting three technical staff to coordinate oversight areas (airworthiness, flight operations, and aerodromes/security). PASO Council endorsed a new organizational framework that was recommended as part of the “PASO Governance and Management” assignment, which sought to have a General Manager, Operations Manager, and a Corporate Services Manager rather than appointing technical experts as fulltime inspectorate staff. The indicator has been revised as part of a restructuring under the Second Additional Finance. PHINDPDOTBL  Indicator Two: Establishment of a Register of Inspectors (ROI) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Target Met. Updated ROI in place. The register of inspectors Updated ROI in Value No ROI Updated ROI in place was established in June place 2014 and endorsed by Council. Date 01-Nov-2013 31-Oct-2017 01-May-2018 31-Dec-2018 Comments Indicator Two: The Establishment of a Pool of Regional Aviation Inspectors was achieved early in the project cycle (2014). The registry comprises qualified technical experts from Australia, New Zealand, Fiji, and Tonga across the following specializations; aerodromes, airworthiness, air navigation services, and flight operations. There are currently nine persons within the pool, including: two airworthiness 5/25/2018 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) inspectors; two flight operations inspectors; one aerodrome inspector; two air traffic inspectors; and two security inspectors. Additional personnel that are used based on the needs of the States and timing can vary, but have been as many as 10 other individuals. PHINDPDOTBL  Indicator Three: Recommended Annual Work Program Implemented by PASO Members (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.50 65.10 80.10 80.00 Date 01-Nov-2013 31-Oct-2017 01-May-2018 31-Dec-2021 Comments Indicator Three: Target achieved in 2017, but will be continually monitored over the project life cycle. The figure represents the average ‘planned versus actual’ scheduled minimum annual work program performed for all 10 PASO Member States. The calculation is determined as follows: (a) if the number of days performed for a Member State exceeds the planned work days due to additional, ad-hoc activity requests, a value of 100% is recorded for that State; and (b) If zero days were planned for a Member State, the country’s contribution is excluded from the average calculation, rather than accounting zero. This method avoids a misleading deflation or inflation of the average. With a target for undertaking 80 percent of the recommended Annual Work Programs implemented by PASO member states, implementation rates average 68.7% (2014); 49.9% (2015); 61.7% (2016), and 80.1% (2017), respectively, over the project period. More critical is the level of oversight days conducted, which has generally seen an increase from 272 days in 2014 to 426 days in 2017. Beyond the minimum scheduled oversight regimes, 2016 and 2017 witnessed additional expansion of advisory services related to addressing gaps in States’ regulatory frameworks undertaken by PASO through funding provided by New Zealand Ministry of Foreign Affairs and Trade (MFAT). PHINDPDOTBL  International Civil Aviation Organiziation evaluation of PASO's function within the Global Aviation Safety Oversight System (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Level 1 -- TBD Level 2 Date 01-Jun-2018 -- 01-May-2018 31-Dec-2021 Comments Indicator 4: Based on an International Civil Aviation Organization proposal to evaluate Regional Safety and Security Oversight Organizations (RSOO) through a tiered Global Aviation Safety Oversight System approach based on service classification, a new indicator would reflect an expansion of PASO’s likely classification as a Level 1 provider to achieve a Level 2 outcome at the end of the project. 5/25/2018 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) Overall Comments Intermediate Results Indicators PHINDIRITBL  Component A: Intermediate Results Indicator One: Revised governance structure (technical and financial committee composition), as per PASO Constitution (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Current PASO Constitution. Legal Current PASO Advisor has completed Constitution. Legal new draft Hosting Advisor has completed Agreement; new draft Hosting Institutional Specialist Agreement; Institutional has reviewed and Specialist has reviewed updated: (i) PASO and updated: (i) PASO Employment Policy and Employment Policy and Procedures Manual; (ii) Procedures Manual; (ii) PASO's Finance PASO's Finance Updated PASO Value PASO Constitution Policies and Policies and Procedures Constitution Procedures manual; manual; (iii) PASO (iii) PASO Governance Governance and and Restructuring Restructuring Finding Finding and and Recommendations/ Recommendations/ Governance and Governance and Procedures Manual; and Procedures Manual; (iv) Skills development and (iv) Skills and Training policy - development and Adopted by Council Training policy - Adopted by Council Date 01-Aug-2013 31-Oct-2017 01-May-2018 31-Dec-2019 5/25/2018 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) PHINDIRITBL  Component A: Intermediate Results Indicator Two: Revised financing mechanism for sustainability (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Final Report for the Financial Partially Achieved. The Sustainability Analysis Final Report for the is being refined, and Financial Sustainability Sustainable recommends a Existing funding Analysis accepted and Financing Value proposed new funding mechanism inadequate PASO Council, and a Mechansim in mechanism - a regional new 'total cost model' is place passenger levy. An t be made effective implementation plan is beginning January 2020. being developed for Council endorsement. Date 01-Aug-2013 31-Oct-2017 01-May-2018 01-Jan-2020 PHINDIRITBL  Component B: Intermediate Results Indicator One: Adherence to Agreed Annual Work Plans (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 01-Jan-2013 31-Oct-2017 01-May-2018 31-Dec-2021 Comments Sub-indicators below reflect each Member States' engagement of PASO in the planned annual work program. The average percentage across PASO is captured in PDO-level indicator three above. * Note: Solomon Islands opted not to engage PASO services between 2015-2017, but is expected to re-engage in 2018. PHINDIRITBL  Annual Work Plan Implemented - Kiribati (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 130.00 68.00 82.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 5/25/2018 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) PHINDIRITBL  Annual Work Plan Implemented - Cook Islands (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 76.00 100.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Annual Work Plan Implemented - Nauru (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Annual Work Plan Implemented - Niue (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Annual Work Plan Implemented - Papua New Guinea (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 42.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 5/25/2018 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) PHINDIRITBL  Annual Work Plan Implemented - Samoa (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 54.00 100.00 100.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Annual Work Plan Implemented - Solomon Islands (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 24.00 0.00 0.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Annual Work Plan Implemented - Tonga (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 62.00 100.00 100.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Annual Work Plan Implemented - Tuvalu (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 54.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 5/25/2018 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) PHINDIRITBL  Annual Work Plan Implemented - Vanuatu (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 27.00 100.00 100.00 80.00 Date 01-Jan-2013 31-Oct-2017 01-Jan-2018 31-Dec-2021 PHINDIRITBL  Component C: Intermediate Results Indicator One: Establishment of Quality Assurance System (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The QA system has Achieved: The QA been completed, and system has been Quality No Quality Assurance Value will be reviewed for completed, and Assurance System endorsement in Nov endorsed by PASO System in Use 2017 Council in Nov 2017. Date 01-Aug-2013 31-Oct-2017 01-May-2018 31-Dec-2018 PHINDIRITBL  Component C: Intermediate Results Indicator Two: Modernization of communication technology (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Internet bandwidth PASO IT server upgraded. IT Strategy updated; internet and Implementation Inadequate ICT system in bandwidth upgraded. Plan completed. New Upgraded ICT Value use IT Strategy and website is under System in use Implementation Plan development. Rollout of under way IT System to be funded by Additional Financing. Date 01-Aug-2013 31-Oct-2017 14-Feb-2018 31-Dec-2020 PHINDIRITBL  Component D: Supporting Regional Aviation Infrastructure (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Selection of Design services completed/ Value No VSAT -- VSAT operating goods acquisition under procurement Date 02-Jan-2017 -- 01-May-2018 01-Jul-2019 Comments 5/25/2018 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) Regional aeronautical data and communication network through the acquisition and installation of very small aperture terminal (VSAT) equipment for the Cook Islands and Niue PHINDIRITBL  Beneficiaries of job-focused interventions (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 01-Jun-2018 -- 01-May-2018 31-Dec-2021 Comments The project will aim to expand the register of inspectors to include at least two female candidate inspectors for requisite training programs under PASO’s Pacific Inspector Development Program. PHINDIRITBL  Beneficiaries of job-focused interventions - Female (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2.00 PHINDIRITBL  Project-supported organization(s) publish reports on effect of collaboration on project/program/policies (Yes/No) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 01-Jun-2018 -- 01-May-2018 31-Dec-2021 Comments PASO has made a commitment to improve public access to information through on-line publication of relevant organizational documents 5/25/2018 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) and records (such as the Strategic Plan, the Annual Business Plan, Annual Reports, Quarterly Reports, etc.) as part of a planned website update. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P145057 IDA-H8830 Effective USD 2.15 2.15 0.00 2.17 0.00 100% P145057 TF-A3687 Effective USD 0.95 0.95 0.00 0.06 0.89 6.7% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P145057 IDA-H8830 Effective 30-Sep-2013 01-Nov-2013 12-Dec-2013 31-Dec-2018 31-Dec-2018 P145057 TF-A3687 Effective 02-Feb-2017 02-Feb-2017 13-Feb-2017 31-Dec-2018 31-Dec-2018 Cumulative Disbursements 5/25/2018 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Pacific Aviation Safety Office Reform (P145057) Restructuring History There has been no restructuring to date. Related Project(s) P157635- Pacific Aviation Safety Office Reform Project Additional Financing ,P164468-Pacific Aviation Safety Office Reform Project Additional Financing II 5/25/2018 Page 12 of 12 Public Disclosure Copy