PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB6195. Tonga Aviation Infrastructure Investment Project Region

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1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB6195 (The report # is automatically generated by IDU and should not be changed) Project Name Tonga Aviation Infrastructure Investment Project Region East Asia Pacific Country Kingdom of Tonga Sector Aviation (100%) Lending Instrument IDA Credit/Grant Project ID P Borrower(s) Government of the Kingdom of Tonga Implementing Agency Ministry of Public Enterprises Environmental Screening [ ]A [ ]B [ ]C [ ]FI [ ]TBD (to be determined) Category Date PID Prepared December 21, 2010 Estimated Date of Appraisal April 1, 2011 Completion Estimated Date of Board May 17, 2011 Approval Concept Review Decision Following the review of the concept, the decision was taken to proceed with the preparation of the operation. I. Introduction and Contet Country Contet With its remote location, small size and dispersed islands setting, Tonga faces many challenges in developing and maintaining sustainable internal, regional and international transport and communication linkages, all of which are crucial to the economic development and social well-being of its estimated 105,000 population. The country is faced with limited capital resources, asset deterioration due to neglect of maintenance, and financial and administrative constraints, that have been eacerbated by both the recent global financial crisis and increasingly rigorous international security requirements. Recognizing the key place of transport in the economic and social fabric of the country, the Government of Tonga (GoT), with IDA ESW support, undertook a series of reviews from 2004 through 2006, including a comprehensive analysis of the multi-modal transport sector and options for rationalizing the aviation sector. Many of the recommendations arising from this work were adopted by GoT through the national Strategic Development Plan. In March 2006, the Ministries of Civil Aviation and Marine and Ports were merged under a Ministry of Transport (MoT) with additional responsibilities for some aspects of land transport. In July 2007, the regulator and operator functions in the aviation sector were formally separated the regulatory

2 functions remaining in the Department of Civil Aviation, MoT and the operator being corporatized as Tonga Airports Ltd (TAL). On December 12, 2008, the Tonga Transport Sector Consolidation Project (TSCP) (Grant No. H416-TO) for SDR3.4m (~ US$5.44m) became effective. The development objective of TSCP was: (i) to establish and consolidate the operations of the newly-created MoT as a unified transport sectorpolicy, planning and regulatory ministry; and, (ii) to improve the level of compliance of the civil aviation and maritime subsector entities with international safety and security standards. Sectoral and Institutional Contet The aviation components 1 of the TSCP have been highly successful and the GoT has requested the Bank to finance a number of additional high priority safety and security requirements at the three main airports Tongatapu Fua amotu International (TBU), Vava u (VAV) and Ha apai (HPA). These investments are required to meet ICAO standards and recommended practices, as well as airline safety standards, ensuring that Tonga s access to international markets and tourism can be maintained. Moreover, the proposed investments will preserve and etend the service life of eisting infrastructure assets as well as reduce the energy consumption of the airports. Relationship to CAS The Tonga CAS presented to the Bank s Board on October 19, 2010, points to the need to mainstream disaster risk reduction and climate change adaptation into infrastructure planning and management. Addressing climate change by providing carbon-neutral airport facilities are part of this investment program, as are investments in alternative and sustainable energy efficient technologies. This will help ensure that the airports are operated in an environmentally sustainable manner. II. Proposed Development Objective(s) Proposed PDO The proposed development objective is: to provide safe and secure air transport operations and environmentally sustainable and efficient airports. Key Results Monitoring Indicators: It is proposed that the success of the project will be monitored through three indicators: (i) Certification of the main three airports in accordance with 1 The TSCP investments consisted of: (i) Aviation Sector Strategic Development Plan; (ii) TAL Airports future investment study; (iii) Aviation sector regulatory surveillance and compliance obligations review and support; (iv) TBU PAPI navigational aid, supply installation and commissioning; (v) provision of a TBU fire tender; (vi) TBU hand-baggage screening X-ray machine; (vii) emergency power upgrades at TBU and VAV; (viii) new TBU rescue fire station; (i) TBU upgrade to passenger screening and transit facility; () TBU CCTV and access control.

3 ICAO standards and recommended practices; (ii) Implementation of the corrective action plan following ICAO s safety and security audits; and, (iii) Energy consumption at project airport terminals reduced by at least 30%. Intermediate outcome indicators, separately reported for each airport, are proposed to include: (i) Specific runways, taiways, and apron areas rehabilitated (ii) Eisting runway lights replaced with energy efficient lights; (iii) Percentage of TBU power supplied by renewable energy; (iv) Recommended air traffic navigation, surveillance and weather reporting equipment installed; (v) Percentage of airports water needs met through rain water harvesting; (vi) Percentage reduction in annual airport terminal power consumption; and, (vi) Civil Aviation Agency training and equipment needs assessment recommendations satisfactorily implemented. Beneficiaries: The project will benefit the population of Tonga by ensuring that its international air travel connections are not reduced due to the failure to provide services in accordance with ICAO requirements. Individual travelers will benefit through the provision of safer international and domestic air travel, and more efficient operations in the airport terminals. TAL will benefit by having significant reductions in their operating costs for the terminals through more energy efficient and environmentally sustainable terminals. III. Preliminary Description Component A: Aviation Infrastructure Investments: This component will invest in the aviation infrastructure at the three project airports so that they are able to meet the ICAO standards, while preserving and etending the service life of eisting airport assets. The activities include: Rehabilitation of airport pavements: The project will rehabilitate the runways, taiways and aprons and at all three airports. This will see the eisting surfaces milled (if needed) and replaced with asphalt concrete, cement concrete and/or interlocking concrete/stone pavers as appropriate, with proper attention to airfield drainage to prevent ponding on shoulders, aprons and other critical areas. Provision of renewable power: Implementation of discrete photovoltaic power source for generation of on-site power that is carbon-neutral during operation. This will not only significantly reduce airport operating costs, but do so using a non-polluting, renewable, and importantly, reliable energy source. Potentially, ecess energy could be supplied to the national grid, thereby reducing the diesel fuel demands and their related CO2 effects. Energy optimization of terminals: Improvements to terminals to reduce electrical consumption through both passive and technological means. Upgrading of runway lighting: The eisting lighting and cabling will be replaced with low power consumption LED fitures, reducing the energy demand by 90%. Security improvements: Improved fencing, access control, building management system, FIDS and CCTV for Fua amotu airport; X-ray equipment for hand baggage at Vava u airport;

4 Rain water harvesting and improved efficiency: Facilities will be provided to collect and store rain water from roof areas to significantly reduce the potable water demand and preserve natural water resources. The water will be used to service all sanitary demands and provide required collections for fire water for Crash Fire Rescue demands, and ground vehicle maintenance. Water consumption will be reduced by utilizing fitures and valves within the terminal buildings that are high efficiency/low consumption. Control tower: Construction of a new control tower at TBU, along with the necessary communication and surveillance equipment, for eample an ADS-B for Vava u and Fua amotu airports; PAPI and NDB for Fua amoto and Ha apai airports. Fire safety: Provision of a fire tender for Vava u airport; provision of fire equipment for firemen (jackets, oygen, etc.). Weather monitoring: Automatic Weather Observation Stations for all three airports. Consulting services: (i) Procurement of design and supervision consultant; and, (ii) Specialists for preparation of technical specifications on aviation equipment. Component B: Aviation Sector Reform: The TSCP has contributed towards major sector reform. The reform will continue through the project providing support to the Civil Aviation Department (CAD) to adopt and implement the new Civil Aviation Regulations as well as the agreed corrective action plan following the ICAO safety and security audits. This support will likely include a civil aviation advisor to CAD. Component C: Project Support and Training: (i) Support to the Project Implementation Unit (PIU); and, (ii) training program for staff of the MoT and CAD to address needs to carry-out regulatory oversight, and project support as necessary. IV. Safeguard Policies that might apply Safeguard Policies Triggered by the Project Yes No TBD Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Involuntary Resettlement (OP/BP 4.12) Indigenous Peoples ( OP/BP 4.10) Forests (OP/BP 4.36) Safety of Dams (OP/BP 4.37) Projects in Disputed Areas (OP/BP 7.60) * Projects on International Waterways (OP/BP 7.50) V. Tentative financing Source: ($m.) * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties claims on the disputed areas

5 Borrower/Recipient IBRD IDA Others (specify) VI. Contact point World Bank Contact: Mr. Christopher R. Bennett Title: Senior Transport Specialist Tel: cbennett2@worldbank.org Total Borrower/Client/Recipient Contact: Mr Tiofilusi Tiueti Title: Acting Secretary for Finance Tel: (676) ttiueti@finance.gov.to Implementing Agencies Contact: Mr. Inoke Vala Title: Secretary for Public Enterprises, Ministry of Public Enterprises Tel: ifvala@mpei.gov.to VII. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C Telephone: (202) Fa: (202) Web:

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