international civil aviation organization financial support from the world bank dr. charles e....
TRANSCRIPT
International Civil Aviation Organization
Financial Support from the World Bank
Dr. Charles E. SchlumbergerLead Air Transport Specialist
The World Bank
26. October 2011
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Outline
The World Bank Air Transport Portfolio
The Pacific Aviation Investment Program
Support for the Pacific Aviation Safety Office
Financial Support from the World Bank
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The World Bank Air Transport Portfolio
30 major projects in all regions of IBRD and IDA
28 active IFC investments and several advisory mandates
total active portfolio financed by loans or grants of IBRD and IDA is at US$569 million
IFC air transport investment portfolio is at US$ 679 million
Overall, the WBG air transport portfolio volume is at US$ 1.247 billion
Financial Support from the World Bank
4Project title (Insert, Header & Footer)
The Pacific Aviation Investment Program
• The Pacific Aviation Investment Program is a grant of US$ 147.47 million (US$ 73.66 million Phase 1; US$ 73.81 million Phase 2)
• It will focus on three main areas: (i) infrastructure investments; (ii) aviation sector reform; (iii) strengthening the operations and
management of regional airports.
5Project title (Insert, Header & Footer)
The Pacific Aviation Investment Program
Component A: Aviation Infrastructure Investments (US$ 118.42 million) – Airports, ATC to meet ICAO SARP
Component B: Aviation Sector Reform (US$ 12.10 million) – CAA, PASO (US$ 2.4 million)
Component C: Strengthening Airport Operations and Management Capacity (US$ 7.86 million)
Component D: Project Support (US$ 9.09 million)
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Support for the Pacific Aviation Safety Office – Regional Context
• the Pacific Island Countries are characterized by: small populations scattered over many islands in one of the most remote and geographically dispersed
countries in the world• Aviation plays a vital role in providing national, regional,
and international connectivity tourism is a high contributor to the national GDPs air transportation allows export of high-value, time-sensitive
products such as fresh fish, flowers, marine plants, etc. sea transportation is often not a viable alternative for
passenger transport
Financial Support from the World Bank
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Support for the Pacific Aviation Safety Office – Institutional Context
Financial Support from the World Bank
• PASO was established in 2004 to provide safety and security oversight in the aviation sector for all PIC countries, as individual states have limited resources PASO provides services in 5 areas: airworthiness, flight operations,
aerodromes, aviation security, and personnel licensing• For many states PASO is the link with ICAO and acts as the
only technical advisory body• Non-profit organization, services provided on a cost-recovery
basis Subscription fees cover fixed costs Variable fees cover costs associated with inspections and other
activities
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Support for the Pacific Aviation Safety Office - Options for PASO’s Scope
Financial Support from the World Bank
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Support for the Pacific Aviation Safety Office – Funding of the Organization
• Model 1 (current situation): membership fees + service fees paid by member countries Places a financial burden on the countries budgets, and hence
creates a disincentive to use PASO’s services For different reasons countries may fail to secure funding
• Model 2: safety levy paid by passengers PASO’s costs would be funded through implementation of a fee
per passenger, or safety levy Eliminates financial burden on member countries Creates incentive to engage PASO, as countries would not have
to make any payments Different implementation options
Financial Support from the World Bank
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Support for the Pacific Aviation Safety Office – Options for Restructuring
• Option 1: Front-office funded with membership fees• Option 2: Current situation• Option 3: Programmed oversight funded with safety
levyOption 3A: HQ in Port Vila, VanuatuOption 3B: HQ in Wellington, New ZealandOption 3C: HQ in Nuku’alofa, TongaOption 3D: HQ in Apia, Samoa
• Option 4: Full Technical Regulator funded with safety levy
Financial Support from the World Bank
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Support for the Pacific Aviation Safety Office – Assessing the Safety Levy
• Financial analysis carried out to determine alternative ways to implement a safety levy
• Projection of PASO’s full cost structure Direct operating expenses: technical team salaries, travel expenses Overhead: administrative team salaries, office expenses
• Current traffic volumes for first year, conservative projection of future traffic
• Resulting safety levy requirements per departing international passenger
• Safety levy requirements cover first year operating expenses, generates surplus to capitalize PASO in following years
Financial Support from the World Bank
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Support for the Pacific Aviation Safety Office – PASO Members’ Traffic Levels
Financial Support from the World Bank
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13Project title (Insert, Header & Footer)
Support for the Pacific Aviation Safety Office – Safety Levy 1st Year (AUD)
Option 1: Only international passengers pay the safety levy
14Project title (Insert, Header & Footer)
Support for the Pacific Aviation Safety Office – Safety Levy 1st Year (AUD)
Option 2: International and domestic passengers pay the same
15Project title (Insert, Header & Footer)
Support for the Pacific Aviation Safety Office – Safety Levy 1st Year (AUD)
Option 3: International passengers pay 2x than domestic passengers
16Project title (Insert, Header & Footer)
Support for the Pacific Aviation Safety Office – Safety Levy vs. Airport Charges