iji, ~"'~ '1'1'~7' 4f:tttyo - 0 ~ INTERNATIONAL CIVIL AVIATION ORGANIZATION ASSEMBLY- 33RD SESSION EXECUTIVE COMMITTEE
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1 ~"'~ iji, '1'1'~7' 4f:tttyo - 0 ~ INTERNATIONAL CIVIL AVIATION ORGANIZATION 3/10/0 I ASSEMBLY- 33RD SESSION EXECUTIVE COMMITTEE DRAFT TEXT FOR THE REPORT ON AGENDA ITEM 17 The attached material on Agenda Item 17 is submitted for consideration by the Executive Committee_ (6 pages)
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3 17-1 Agenda Item 17: Mobilization of funds for civil aviation 17:1 The Executive Committee considered the subject of mobilization of funds for civil aviation on the basis ofwp/42 and its Addendum No. 1, submitted by the Council, and papers presented by African States (WP/124), the 21 States of the Latin American Civil Aviation Commission (LACAC) (WP/243), Asociaci6n Latino Americana de Derecho Aeronautico Espacial (ALADA) (WP/118) and Uganda (WP/145 and Corrigendum). 17:2 In WP/42 the Council addressed funding for airports and air navigatiop in general and for safety-related projects in particular. In an Addendum to WP/42, the Secretariat elaborated on a proposal to create an International Financial Facility for Aviation Safety (IFF AS) with the objective of financing safetyrelated projects for which States cannot otherwise provide or obtain the necessary resources. In order to facilitate discussion and provide additional, relevant infonnation, the Secretary General briefed the Committee on the evolution, features and objectives of an IFF AS and the related draft Resolution contained in Appendix C to WP/42. 17:3 An IFF AS would be initially linked to the ICAO Global Aviation Safety Plan (GASP) through ICAO's Universal Safety Oversight Audit Programme (USOAP). The principal area of IFF AS' application would lie in implementing safety-related projects and correcting deficiencies identified through the USOAP. An IFF AS mech.:mism would be driven by voluntary participation of each State or contributing party concerned, such participation being determined by contributions received. The means of raising funds for an IFF AS would not necessarily be limited to the single State contributor but may be open to contributions made by groups of States and by other contributors within and beyond the aviation community. Conunon guidelines and operating rules would ensure application at the global level, while implementation could be at the regional or sub-regional level. Administration of the facility or other service provision by ICAO would be on a costrecovery basis upon request of participating States. Addendum No. 1 provides a deeper understanding of the evolution and concept of an IFF AS by drawing on information contained in a Secretariat study completed in 1999 and responses to a questionnaire based on the study as well as recommendations from the ICAO Council. 17:4 In WP I 124, African States called for the effective creation of an IFF AS as a funding mechanism aimed at enhancing aviation safety within the USOAP framework, global implementation of CNS/ A TM systems components and improving safety deficiencies and shortcomings related to airport and air navigation infrastructure. They underscored that, in order to ensure financing of action plans subsequent to USOAP audits, IFF AS would need to be universal and mandatory as far as funding is concerned. In WP/243, LACAC States supported the creation of an IFF AS aimed at financing safety oversight projects to rectify deficiencies identified through USOAP. In WP/118, ALAOA, supported the initiative to set up an IFF AS to improve operational safety in international air transport according to the project proposal by the Council; through financing measures introduced by an IFF AS, the civil aviation system could be further strengthened particularly by incorporation of new teclmologies, personnel training and upgrading of standards and procedures. In WP/145, Uganda supported the establislunent of an IFF AS, considering a global application of an IFF AS mechanism advantageous to facilitate the transfer of technology from developed to developing countries. 17:5 The Conm1ittce readily endorsed the Council's proposal for an IFF AS. There was widespread acceptance for an IFF AS to be based on voluntary contributions. Several delegations while reiterating the
4 compelling need to mobilize funding from sources other than those traditionally available for financing safetyrelated infrastructure projects, supported the establishment of an IFF AS as a matter of priority early in the triennium. LACAC States in particular emphasized the need for voluntary participation, a global framework of transparent administrative guidelines and operating rules that would ensure consistency in application and independence from the ICAO budget. 17:6 The Committee noted the position taken by African States with regard to the request for mandatory nature of participation by States in an IFF AS, and broadening of the scope of IFF AS. While acknowledging the need to mobilize financial resources for the improvement of international civil aviation safety and security, the Committee was ofthc view that at this early stage ofiffas' evolution, the idea of expanding the IFF AS mandate should be referred to the Council for its consideration during the next triennium. 17:7 The Committee noted the pivotal role of the Council in entering, initiating and sustaining a dialogue with Contracting States and other parties concemed, in order to encourage their contributions both towards establishing and for ongoing support of an IFF AS. 17:8 In conclusion, the Conunittee unanimously agreed to recommend to the Plenary the adoption ofthe draft Resolution on the establishment of an IFF AS as proposed by the Council in WP/42. Resolution 17/1 RESOLUTION FRAMED BY THE EXECUTIVE COMMITTEE AND RECOMMENDED FOR ADOPTlON BY THE ASSEMBLY Establishment of an International Financial Facility for Aviation Safety (IFF AS) Whereas under Article 44 ofthe Chicago Convention the aims and objectives oficao inter alia are to foster planning and development of international air transport so as to ensure the safe and orderly growth of intemational civil aviation, meet the needs of the people of the world for safe, regular and economical air transport, and promote safety of flight in international air navigation; Whereas under Article 69 of the Chicago Convention, if the Council is of the opinion that the airports and air navigation facilities of a Contracting State are not reasonably adequate for the safe, regular, efficient and economical operation of intemational air services, the Council shall consult with the State directly concerned, and other States affected, with a view to finding means by which the situation may be remedied, and may make recommendations for that purpose; Whereas in pursuance of Resolution A32-ll, the Council has brought into effect, from l January 1999, a Universal Safety Oversight Audit Programme, and the results of the initial audits of almost all Contracting States under that Programme have been received;
5 A33wWP/284 17w3 Whereas these audits have revealed that a number of Contracting States have to draw on scarce resources from other national priorities in order to implement effective safety oversight and that these States will require :various degrees of assistance to meet their safety oversight responsibilities; Whereas most developing States experience difficulties in gaining access to many financial market sources, particularly foreign capital markets, for fi.mding their airport and air navigation services infrastructure, including safetywrelated components ofthat infrastructure; Whereas the 31st Session of the Assembly requested the Council to study a proposal submitted by a group of States for the establishment of an international aeronautical monetary fund to finance investments in airports and air navigation services infrastructure under conditions that would be more flexible and less onerous than the conditions usually applicable in financial markets; Considering the study conducted in the present triermium on an International Financial Facility for Aviation Safety (IFF AS) and a survey of Contracting States on the results ofthis study, which demonstrated inter alia the existence of a real need for funding which may not, in many cases, be available from established sources and the strong support of Contracting States for the establishment of an IFF AS; Considering that an IFFAS would provide financial support towards achieving the objectives of improving aviation safety, through the implementation of the necessary corrective measures identified in the ICAO Universal Safety Oversight Audit Programme (USOAP); The Assembly: 1. Expresses appreciation to the Council for the progress made in studying and developing an International Financial Facility for Aviation Safety (IFF AS); 2. End[!rses the concept of an IFF AS with: a) the objective of financing safetywrelated projects for which States carmot otherwise provide or obtain the necessary financial resources, with the principal area of application being safetyw related deficiencies identified through the ICAO Universal Safety Oversight Audit Programme (USOAP) as an element of the Global Aviation Safety Plan (GASP); and b) application of the following principles with regard to development, establishment and operation: 1) voluntary participation by States; 2) eligibility for benefits by a State dependent on contributions or other participation by that State; 3) definition of a framework of conunon guidelines and operating rules at the global level to ensure consistency, with implementation left to the discretion and initiative of regional groups of States;
6 17-4 4) complete independence from ICAO's Programme Budget; and 5) provision of any administrative or other services by ICAO only upon request of participating States and on a cost-recovery basis. 3. Requests the Council to pursue the establishment of an IFF AS as a matter of priority early in the triennium, having regard to the applicable laws of Contracting States and on the basis of: a) an administrative charter or memorandum for signature by participating parties; b) a structure including: 1) a governing body incorporating adequate representation from amongst the States and other contributing parties; and 2) staffing to support this body and to cover daily executive and administrative functions; c) a management strategy developed on the principles of, and in conformity with, the existing ICAO legal regime; d) a transparent and simple management mechanism with special attention paid to: l) clear administrative guidelines; 2) clear guidance as to how overall financial requirements are to be estimated and budgeted for each year; 3) clear criteria and procedures for the granting of loans and conducting any other financial transactions, including: consistency with ICAO Standards and Reconunended Practices, Procedures for Air Navigation Services, Air Navigation Plans and ICAO's policies on charges and taxes; accounting system requirements; presentation of business cases; and prioritization of projects; 4) safeguards to ensure the proper, effective and efficient application of funds; 5) measures to assure quality control and to assess effectiveness and efficiency at all levels; and 6) provisions for the auditing of accounts; and e) initial implementation within the triennium; 4. Requests the Council to remain available to advise Member States with respect to proposals for financing their voluntary contributions to the IFF AS and to ensure that such proposals are in confonnity with the Chicago Convention and ICAO policies;
7 Encourages Contracting States to consider: a) voluntary contributions to finance the preparatory work in development of the IFF AS; b) voluntary participation in the IFFAS; and c) to the extent their national policy permits, contribution of capital to the IFF AS by crediting any amount oftheir share of any distributable surplus from the ICAO Programme Budget to the IFF AS account which will be held in trust by ICAO; 6. Encourages international organizations (private and public) having association with international aviation, airlines, airports, providers of air navigation services, manufacturers of airframes, engines and avionics, other members of the aerospace industry, and civil society, to make voluntary contributions to the IFF AS; and 7. Requests the Council to submit to the next ordinary session of the Assembly a report regarding IFF AS activities, including performance assessment and audited financial statements. -END-
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