ASIAN DEVELOPMENT BANK

Transcription

1 RESTRICTED TAR:CAM ASIAN DEVELOPMENT BANK This Report has been prepared for the exclusive use of the Bank TECHNICAL ASSISTANCE TO THE KINGDOM OF CAMBODIA FOR ThE AIRPORTS IMPROVEMENT PROJECT November 1994

2 CURRENCY EQUIVALENTS (as of 26 October 1994) Currency Unit = Riel (KR) KR 1.00 = $ $1.00 = KR ABBREVIATIONS AMP CAAKC ICAO MPST SEC TA UN UNDP - Airport Master Plan - Civil Aviation Authority of the Kingdom of Cambodia - International Civil Aviation Organization - Ministry of Public Services and Transport - Subregional Economic Cooperation - Technical Assistance - United Nations - United Nations Development Programme NOTES (i) (ii) The fiscal year (FY) of the Government ends on 31 December. In this Report, $ refers to US dollars.

3 SI I. INTRODUCTION 1. During the Country Programming Mission in January 1994, the Government requested the Bank to provide technical assistance (TA) to prepare a project to improve facilities at Siem Reap Airport and Kang Keng Airport (formerly Sihanoukville). A Bank Mission visited Cambodia from 7-20 June 1994 and reached an understanding with the Government on the scope of the TA for the feasibility study for the project.1 II. BACKGROUND AND RATIONALE 2. The Kingdom of Cambodia has a land area of approximately 181,000 square kilometers and an estimated population of 12 million. The country has been troubled by internal strife for many decades. This environment of political unrest has restricted the development of basic infrastructure in many areas such as water supply, electricity supply, sewerage, roads, and transport. The civil aviation sector has been hampered by the lack of funds for development work and a serious shortage of trained personnel. In Cambodia, land transport is unreliable, tedious and slow because of the poor road conditions and is sometimes dangerous. An alternative that has high priority is reliable and safe air transport and facilities that can be provided relatively quickly and at a minimum cost. These facilities are needed to support the re-establishment of Government administrative services, the promotion of regional economic integration and political stability and the ongoing and planned initiatives in urban development, and tourism. In addition, the Third Conference on Subregional Economic Cooperation (SEC)2, agreed on the importance of maintaining a continuous exchange of information on airport and civil aviation projects in the light of subregional and global systems. One of the projects selected as having significant subregional importance and in need of immediate study is Kang Keng Airport. The Siem Reap Airport is also important because it is the main domestic airport in the northwest part of the country. 3. The country's air transport network comprises an international airport (Pochentong International Airport), in Phnom Penh; two major domestic airports, Siem Reap and Kang Keng; and six minor airports Stung Treng, Rattanak Kin, Preah Vihear, Koh Kong, Mondol Kin and Battambang. Presently, air travel to Siem Reap and Kang Keng is quite risky because of the limited landing and navigational facilities available. The existing equipment at these airports is old and not reliable and spare parts are difficult to obtain. In addition, the existing parking aprons, fire services, and runways are in need of urgent repairs. With the expected rise in air travel, the demand on these airports will increase and the probability of a serious accident also increases. An immediate concern of the Government is to improve the operating safety levels and to ensure compliance with the operational standards set by the International Civil Aviation Organization (ICAO). The two major domestic airports, Siem Reap and Kang Keng are also major gateways to recognized international tourist destinations. The Siem Reap Airport serves as the entry point by air for Angkor Wat (a historical site included in the World Heritage List) and the Kang Keng Airport supports trade and commercial development and the recreational seaside resorts in the sourthwest part of the country. Both sites served by the two airports are considered to be major tourist destinations and the improved accessibility provided by the This TA first appeared in ADB Business Opportunities in August RETA No 5535: Promoting Subregional Cooperation Among Cambodia, the Peoples's Republic of China, Lao People's Democratic Republic, Myanmar, Thailand, and Viet Nam, for $600,000, approved on 1 June 1993.

4 2 airport is in line with the recommendations made for promoting the subregion as a tourist destination in the SEC study. 4. In Cambodia, several international agencies have been active in the development of civil aviation. In the past, technical assistance has been provided by the United Nations (UN), the United Nations Development Programme (UNDP), ICAO, and the Governments of France, Malaysia, the People's Republic of China (PRC) and the former Soviet Union. The UN supplied navigational and communication equipment that was used during its peacekeeping mission associated with the 1993 UN sponsored elections. The UNDP and ICAO have provided assistance to airport operation training subsequent to the withdrawal of the UN peacekeeping forces. The Governments of France and Malaysia have provided navigational, communication and fire fighting equipment. The PRC and the former Soviet Union have provided assistance in the construction of airport infrastructure. In addition, to the assistance already provided by the various aid agencies, the Government of France is currently in the process of providing assistance for the preparation of a feasibility study for Pochentong International Airport. The proposed TA will be coordinated with the French assistance through liaison by the Bank, the Ministry of Public Transport (MPST) and potential co-financiers. 5. The civil aviation sector is managed by the Civil Aviation Authority of the Kingdom of Cambodia (CAAKC), which is temporarily a line agency in the Secretariat of the Prime Minister's Office. However, MPST is responsible for all Government civil engineering construction works including airports. CAAKC concentrates on the operations of the airports and regulatory requirements of the civil aviation sector. 6. Air transportation is a key component in the development of the country's economy and is closely linked to the development of the tourism industry. The project is justified because of the urgent requirement (i) to improve the conditions of the existing civil aviation facilities and to establish safe operating procedures that conform with ICAO standards, (ii) to provide a safe and reliable mode of transport, and (iii) to support the Government's strategy to stimulate the country's economic growth by providing air transportation to facilitate the mobilization of social, economic, and administrative resources. 7. The volume of air traffic through Siem Reap and Kang Keng airports is low, not because of the lack of demand, but because the two airports are not safe. With minimal improvements to bring them up to basic ICAO standards, it is expected that traffic will increase significantly. Nevertheless, the viability of the proposed projects need to be carefully assessed. Accordingly, the TA is designed to produce a staged development plan that will be implemented over time and in line with the project's revenue generating capacity. The principal outputs of the TA will be detailed airport master plans (AMPs) for physical infrastructure for for the Siem Reap Airprrarrd the Kang Keng Airport, with a prioritized schedule of suitable developments, outline designs and feasibility studies for the more urgent of these, and the development of a suitable financing and implementation plan. A. Objectives Ill. TECHNICAL ASSISTANCE 8. The project preparatory technical assistance (PPTA) will address the priority of infrastructure development for Siem Reap Airport and Kang Keng Airport and will review

5 ciration n1 nni,tii iit, I _TTT.TZT ml 3 institutional and policy issues associated with the civil aviation sector. The PPTA will assist the Government and CAAKC to identify priority areas for further investment and to prepare one or more project(s) suitable for Bank assistance. In doing this, it will address the feasibility and immediate requirements for upgrading the airports to ICAO appropriate Code C operational standards and produce an AMP for the staging of development in line with forecast demand up to the airports' ultimate capacity. B. Scope 9. Specifically, the objectives of the PPTA are to assist CAAKC to: develop AMPs that will provide a sound basis for the future development and investment in airport related facilities. The AMPs will include a costed and staged development plan which will be consistent with ICAO Annex 14 standards. The AMPs will cover airspace and navigation facilities; ii. iii. iv. develop a time-based schedule of development in line with forecast demand and at an appropriate level of service to operators and users; prepare detailed feasibility plans including broad designs (which would take into consideration among others, environmental and social issues), for the proposed airport improvements and from them develop estimates of cost; prepare a feasibility analysis for the proposed airport improvements in a manner and form suitable for assessment by the Bank and other external agencies, v. make recommendations on institutional and policy matters, including among others, operations and maintenance procedures, pricing policies, cost recovery; and, vi. develop suitable procurement procedures to facilitate project implementation. C. Cost Estimate and Financing Plan 10. The total cost of the TA is estimated to be $520,000 (see Appendix 1). The Bank will provide $500,000 initially as a grant. The TA will be charged to the Bank-funded technical assistance program. The Government will provide the remaining $20,000 in the form of counterpart staff, office space, some local transportation, and administrative support. The Government has been informed that approval of the TA does not necessarily commit the Bank to finance any ensuing project. D. Implementation Arrangements 11. The services under the TA are scheduled to commence in February 1995 and expected to be completed by May The principal output will be a prioritized schedule of infrastructure improvements and a recommendation on a staged development plan. Prior to the formulation of the staged development plan, a tripartite meeting of staff from the Bank, CAAKC

6 4 and the consultants will be held to review the schedule of improvements and to finalize the immediate infrastructure improvements before the preparation of the staged development plan. The consultant will produce an inception report within one month of commencing the services, an interim report prior to the preparation of the staged development plan and a draft final report at the end of the study. A final report will be prepared within one month of receiving comments from CAAKC and the Bank on the draft final report. The terms of reference for consulting services are given in Appendix It is envisaged that international staffing inputs will be about 16 person months of international specialists with expertise in airport planning, civil engineering, communication and navigational aids, environment, transport economics, and financial analysis. The domestic consultant input will be about three person months in the fields of civil engineering and cost estimating. The consultants will be recruited by the Bank in accordance with the Guidelines on the Use of Consultants. 13. The Executing Agency for the proposed TA will be MPST. The Minister of MPST will appoint the Under Secretary of State for CAAKC to have overall responsibility for the TA and to provide day-to-day coordination. A steering committee comprising representatives from MPST, CAAKC, users and operators, and the consultant will be established. The steering committee will coordinate discussions with interested organizations, including CAAKC's other operational divisions, airline operators, customs, and concessionaires. This committee will also review the plans and other documents prepared by the consultants and provide comments and inputs as necessary. IV. THE PRESIDENT'S DECISION 14. The President, acting under the authority delegated to him by the Board, has approved the provision of technical assistance to the Government of the Kingdom of Cambodia in an amount not exceeding the equivalent of $500,000 for the purpose of the Airports Improvement Project, and hereby reports his action to the Board. This technical assistance will be made available initially as a grant, but will be subject to the reimbursement arrangements set forth in the relevant Board papers on Technical Assistance Operations (DOC. R51-77, dated 20 May 1977 and Streamlining of Technical Assistance Operations Doc R44-8, dated 21 March 1988) including the provision that in the event of the technical assistance resulting in a loan from the Bank, the Bank may charge against, and recover from, such portion of the grant that exceeds $250,000.

7 .. II ILdLALJI.r.t.%IIafl t..e.tti.t I Appendix 1 ESTIMATED COST OF THE TECHNICAL ASSISTANCE FOR THE PREPARATION OF THE AIRPORTS IMPROVEMENT PROJECT FOR THE KINGDOM OF CAMBODIA Financed by the Bank Amount in US$ A. Foreign Exchange Costs International Consultants Equipment Studies, Surveys and Reports Contract Negotiations Contingencies 375,000 11,000 9,000 5,000 60,000 Sub Total (A) 460,000 B. Local Currency Costs Domestic Consultants Surveys, Studies and Reports Miscellaneous TA Administration and Support Costs Contingencies 6,000 6,000 22,000 6,000 Sub Total (B) Total (I) 40, ,000 Financed by Government (Local Currency Costs) Office accommodation and utilities Counterpart Staff (salary and per diem) Contingencies 8,000 10,000 2,000 Total (II) 20,000 Grand Total (1+11) 520OOO (Reference in text: page 3; para. 10)

8 Appendix 2 Page 1 CAMBODIA : AIRPORTS IMPROVEMENT PROJECT TERMS OF REFERENCE FOR CONSULTING SERVICES A. Tasks The proposed study phases and tasks to be undertaken are as follows: 1. Siem Reap and Kang Keng Airports 2. The specific tasks are as follows; Phase 1 (I) Assess the availability of topographic survey information and prepare survey and geotechnical investigation briefs for the Ministry of Public Services and Transport survey and geotechnical departments to carry out any additional work as required. (ii) (iii) (iv) (v) (vi) Review all existing data, plans, documentation and reports relating to Kang Keng Airport (KKA) and for Siem Reap Airport (SRA) it's impact on the Angkor Wat's archaeological sites; Review the traffic forecasts prepared as part of the Siem Reap Tourism Development Plan (which is proposed to commence August,1994), the Pochentong International Airport feasibility study (proposed to commence in September, 1994) and determine appropriate planning horizons for the existing SRA; Review existing and develop traffic forecasts for KKA taking into consideration the Pochentong International Airport feasibility study (proposed to commence in September, 1994), the UNDP Civil Aviation Master Plan (proposed commencement date is not established because funding approval is being processed at UNDP Headquarters) and determine appropriate planning horizons. Prepare a brief geotechnical report covering construction and strength of existing pavements, sources and quality of select fill, pavement materials in the region and assessment of the costs of the various construction materials required for the upgrading works; For SRA, investigate the feasibility of extending the existing runway by some 1000 meters (m) to the southwest at the 05 end to displace the existing Runway 23 threshold further from the archaeological sites, and any other methods to mitigate the impact of aircraft operations on Angkor (Reference in text: page 4, para. 11)

9 Appendix 2 Page 2 Wat. In addressing this aspect of the study, consideration may need to be given to the diversion of portion of Highway 6 adjacent to the airport (vii) Prepare AMP to establish airport land use requirements and capacity constraints for the development of airport capacity in line with the forecast traffic and the requirements of ICAO Annex 14. The planning horizon for AMP should be for the period The AMP should determine the optimum sites and respective site area requirements for all significant airport functions including among others, runway lengths, taxiway and apron configurations, terminals, navigation aids, control tower and fire/rescue services, aircraft maintenance facilities, air freight facilities, flight catering, airline support facilities, airport administration and maintenance, commercial development, carparking, and road layout. For KKA, the AMP in addition should address the approach constraints of the existing runway and investigate the requirement for reorientation of the runway for future development. Phase 2 (viii) (ix) (x) (xi) Prepare designs for the rehabilitation and upgrading development works in sufficient detail to allow costs to be estimated to within 20 per cent accuracy. The details to be provided will include functional descriptions, floor areas of major facilities, standard busy hour rates (SBR5) and peak hour passenger rates (PHPs) or other design criteria, facility requirements and limitations. Customs and airline requirements, operational procedures, aircraft operations and concession areas should also be taken into account. In preparing the designs, the consultants will take into account the need to maximize the use of local materials and skilled and unskilled labor, minimum future maintenance requirements to the extent possible, and to keep the cost of the proposed development to a level commensurate with the available finance; For KKA, undertake a preliminary hydrological assessment of the airport site to assess any flood-related problems which may need to be addressed at the detail design stage. Establish design criteria and a concept plan for the airport drainage system; Prepare a preliminary drainage study to establish design criteria and a concept plan for the airport drainage system; Prepare an airways facilities plan that establishes the sites and development programme for airport air traffic control systems, including communication systems, navigation aids, meteorological equipment, and any other significant facility.

10 Appendix 2 Page 3 (xii) (xiii) (xiv) (xv) (xvi) (xvii) (xviii) Prepare an airport services plan that establishes the requirements and conceptual design of potable water, sewerage, and electricity supply systems for airport development, Based on the above designs, prepare cost estimates for the upgrading works broken down into foreign exchange cost, local currency cost, and tax; Undertake an environmental impact assessment (EIA) of the upgrading of SRA and KKA with respect to the physical and social environment of the area in accordance with the Bank's Environmental Guidelines for Selected Infrastructure Projects. This assessment should address all significant impacts of the development, assess their relative impact with respect to established assessment criteria and propose any environmental safeguards and mitigation measures necessary to reduce the impact of the development. The EIA should take into consideration, among others, the impact of noise, vibration and air pollutants on the Angkor 'A'at archeological ruins; Prepare a detailed feasibility report, to include economic and financial analysis for the project. The economic internal rate of Return (EiRR) and the financial internal rate of return (FIRR) to be calculated taking into account capital, operating, periodic and routine maintenance costs, etc. Traffic forecast are to be based on appropriate market research in addition to those developed under the tourism study. The economic feasibiity study is to include among others: (a) an analysis of the expected travel cost savings in relation to the impact of the airports on the economies of their influence areas, (b) pricing of airport services, and (c) an analysis of the effect of service pricing on the distribution of project benefits between the Government, nationals, and nonnationals. The financial analysis to include, among others, projected income and expenditure statement (in current prices), balance sheet and funds flow statement for Civil Aviation Authority of the Kingdom of Cambodia (CAAKC) for the duration of the project implementation period and three years after project completion; Within the context of the Bank's Guidelines on Procurement, study alternative approaches to detailed design and construction of the selected improvements. Approaches to be studied will include (a) an initial detailed design process prior to selection of contractors; and (b) design/construct contract based on outline designs and specifications. Prepare sample commercial contract documentation (specifications and other technical documentation are not required), based on the Bank's sample bidding documents; Prepare draft terms of reference for subsequent project management consulting services which will implement the design and construction of ri - ;JI -u-,

11 Appendix 2 Page 4 the proposed improvement works to be procured under the Bank's international competitive bidding procedures. (xix) If Phase 1 of the study has identified a requirement for additional land acquisition, and if this will require resettlement of existing occupants, prepare a resettlement plan (incorporating time bound actions and payment schedule) in accordance with the guidelines set out in the World Bank's Operational Directive Phase 3 (xx) (xxi) For SRA, prepare a preliminary site evaluation of the identified alternative site 30 km to the west of the existing airport to determine the feasibility of developing the site. The investigation should make a preliminary evaluation of at least the following aspects, among others, runway alignment, length requirements, approach gradients and an assessment of any operational constraints on the site, physical conditions on the site which may effect the cost of development such as landform, flood mitigation or drainage measures, geotechnical conditions, road access and resident resettlement requirements. For SRA, preparation of a preliminary staged development plan to assess the airport development requirements of the Siem Reap region over the next 15 years ( ) in line with forecast demand. 2. Civil Aviation Sector Institutional Analysis 3. Analyze the role played by domestic air transport in the development of the country's civil aviation sector. Specifically, (i) (ii) evaluate operations and maintenance (O&M) procedures and budgets in CAAKC and determine weaknesses that undermine the growth of domestic air transport, establish principles for assessing O&M needs on a full cost recovery basis, and recommend modified O&M arrangements to sustain the proposed investments in airport improvements, review current civil aviation pricing policies and practices, including the formulation of landing charges, parking, maintenance and terminal charges and determine their adequacy; assess revised types and levels of charges needed to fully recover costs of improvement and to provide for periodic overhaul and renewal of equipment and other airport facilities; recommend a revised airport tariff policy for time bound adoption by the Government in the context of the proposed project, review the current legal framework and institutional arrangements under which the civil aviation authority is operating, and

12 B. Outputs Appendix 2 Page 5 (iii) review current policies for determining air passenger fares and identify problems including subsidies; indicate the principles on which passenger fares should be developed and regulated to ensure a viable domestic air service program, and recommend options for relaxing Government control on fares; review the case for subsidies and indicate how affordable air transport services could be provided without abandoning market mechanisms; develop a timetable for introducing a modified system of passenger fares, and reducing Government intervention in the context of the proposed investments. 4 The outputs of the study for each airport will include: (i) (ii) (iii) (iv) (v) (vi) an airport master plan incorporating staged development requirements for the period reflecting capacity growth in line with forecast demand. The development plan shall identify predetermined "trigger points" for initiating each stage of development and shall present a folio of drawings representing each stage as well as ultimate development. Recommendations on the scope and extent of improvement works to be addressed in Phase 2 of the study. This is to be provided as part of the interim report. an environmental impact assessment for Siem Reap and initial environmental examination for Kang Keng identifying the direct and indirect impacts of the proposed airport improvements and measures required to mitigate such impacts with cost estimates and recommended implementation arrangements; economic and financial feasibility studies for the proposed airport improvements identified under AMP; a land use and zoning plan with a folio of drawings for the airport environs illustrating land requirements to support future development and a schedule of additional land acquisition requirements a report on alternative procurement procedures for a subsequent investment project, to include the required sample contract documentation, and terms of reference, manpower requirement and costs for subsequent project management, design and supervision consulting services. C. Reporting 5. The following reports, all in the English language, will be submitted by the consultants to CAAKC (ten copies) and the Bank (five copies) at least two working weeks prior fl.-r II

13 Appendix 2 Page 6 to the meetings convened to discuss them. In addition, the consultant will submit brief monthly reports to CAAKC (five copies) and Bank (two copies). (i) (ii) (iii) (iv) (v) Inception Report: To be submitted within one month of commencing the services. This report will be brief and will be based on the methodology and implementation schedule set out in the consultant's technical proposal. It will set out initial findings and will identify any changes in approach, scheduling or staffing which the consultant's work over the first month indicate are necessary or desirable to achieve the objectives of the project; Interim Report: To be submitted at the end of Phase 1 of the assignment, around two months after commencement; Draft Final Report: To be submitted on completion of the study, around three months after commencement. This report will incorporate all specified outputs including PEE and EIA reports in Bank format; Summary lee and EIA Reports: To be submitted on completion of the study and the reports to be in accordance with Bank format and requirements; and Final Report: To be submitted within one month of receiving comments on the draft final report from CAAKC. The final report is to reflect these comments. 6. The draft final report will require briefings and presentations to a steering committee which will be established by CAAKC to monitor and provide support to the consultants. The steering committee will be chaired by the Under Secretary of State in charge of Civil Aviation and will consist of representatives from CAAKC, the airline industry and other relevant groups. In addition, a tripartite meeting at which the Bank, CAAKC and the consultants will be held to discuss the draft final report. D. Implementation Schedule and Staffing 7. It is anticipated that the services will commence in February 1995 and be completed by May The consultant will propose a schedule to suit his approach to the assignment, but the overall duration should not be significantly longer than four months. 8. International staffing inputs will be around 16 person months of international specialists, with expertise in airport planning and civil engineering, communication and navigational aids, environmental, transport economics and financial analysis, Domestic consultant input will be around 5 person months in the fields of civil engineering and cost estimating. In preparing their proposals, consultants may offer alternative arrangements of staffing and expertise types, without significant variation in international and domestic inputs.

14 Appendix 2 Page 7 E. Support 9. CAAKC will provide office space, telephone facilities (but not the cost of communications), basic furniture and general administrative support. The consultants will include in their proposals a list of additional equipment and facilities that they consider necessary to undertake the assignment. 10. CAAKC will allocate counterpart staff to work with the consultants throughout the study. The consultants will include in their proposals an indication of the types and numbers of counterparts that will be necessary to facilitate the implementation of the assignment.