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State GovernmentProject Information Civil Aviation Development Investment Program - Tranche 2 $ 13 Cr $ 130 Mn
16-Aug-2017
PID : 11395 Not Classified-Papua New Guinea
Description

The proposed Tranche 2 will establish a sustainable civil aviation network to support the economic growth of the country. The outcome will be safer, more secure, and more efficient all-weather access to air transport services in the project areas. There are three outputs: (i) reformed institutions to strengthen and sustain the operation of the National Airports Corporation (NAC), Papua New Guinea Air Services Limited (PNGASL), and Civil Aviation Safety Authority of Papua New Guinea (CASAPNG), which were established by 2011 under Tranche 1; (ii) improved infrastructure to improve airport infrastructure; and (iii) improved operations to provide air traffic management and navigation services in accordance with international best practices to meet the commercial needs of its customers and comply with domestic and international regulations.

The executing agency (EA) for Tranche 2 will be NAC, which has experience in implementing the Investment Program, Tranche 1, and has been functioning efficiently in administering the current tranche. The EA will be responsible for design, supervision of civil works, and day-to-day implementation, financial management, and monitoring and evaluation. To complement EA's limited technical staff resources, consultants will be retained for these services. The government will form a project steering committee to oversee and monitor project implementation. The project implementation unit (PIU) will be integrated in the EA's management structure with NAC professional and technical staff as counterparts. The PIU continues its functionality in technical, procurement, financial, safeguards, monitoring, reporting. NAC has completed technical designs of civil works, including pavement rehabilitation and associated works, and security fencing and associated works, as part of advance action.

Project Rationale and Linkage to Country/Regional Strategy Civil aviation (i) supports the social and economic development of Papua New Guinea (PNG) by providing safe, efficient, reliable, sustainable, and affordable aviation services and infrastructure; (ii) gives all-weather access to the country and improves the mobility of communities; and (iii) provides access to noncommercial destinations, thereby meeting important service obligations to the community. Capacity constraints and deteriorating infrastructure, however, threaten the safety and security certification of airports and place these objectives at risk. The National Airports Corporation (NAC) has a well-articulated sector development plan for dealing with the risks but requires support to carry out the plan and meet its obligations. External funding to rehabilitate and upgrade the national airports and support their certification will advance the Medium Term Development Strategy objectives of economic growth, rural development, poverty reduction, and human resource development. Without the improvements, PNG's recent rapid economic growth may stall.
Impact Economic growth and poverty reduction in project areas

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