The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) Vanuatu Aviation Investment Project (P154149) EAST ASIA AND PACIFIC | Vanuatu | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 10 | ARCHIVED on 26-Dec-2019 | ISR39941 | Implementing Agencies: Republic of Vanuatu, Ministry of Infrastructure and Public Utilities (MIPU), Ministry of Finance & Economic Management, Vanuatu Project Management Unit Key Dates Key Project Dates Bank Approval Date: 08-May-2015 Effectiveness Date: 03-Jun-2015 Planned Mid Term Review Date: 30-Mar-2018 Actual Mid-Term Review Date: 12-Feb-2018 Original Closing Date: 31-Dec-2019 Revised Closing Date: 31-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve operational safety and oversight of international air transport and associated infrastructure in Vanuatu. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: International Airport Infrastructure Investments:(Cost $64.52 M) Component B: Aviation Sector Reform and Training:(Cost $1.53 M) Component C: Strengthening of Airport Operations and Management Capacity:(Cost $1.14 M) Component D: Emergency Reconstruction:(Cost $3.88 M) Component E: Project Support:(Cost $2.83 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project will be closed on December 31, 2019 as planned. All project activities, except for the supply and installation of the navigation aids, have been successfully completed before the project closing date. These include: Component A: (i) improvement to runways at Bauerfield, Pekoa and Whitegrass airports; (ii) geometric improvements (widening of existing taxiways and expansion of turning bays) at Bauerfield airport to allow for larger aircraft to operate at the airport; and, (iii) improvements to the existing apron and a new apron at Bauerfield airport; (iv) construction of new taxiways and widening of the existing taxiway at Bauerfield International Airport; (iv) upgrading/installation of airport runway lighting and cabling at Bauerfield, Pekoa and Whitegrass International Airports; (v) provision and installation 12/26/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) of ‘Very Small Aperture Terminal’ (VSAT) communications systems at Bauerfield, Pekoa, and Whitegrass International Airports; (vi) provision and/or upgrading of fire safety equipment, including fire tender vehicles, and a fire tender shelter at Bauerfield and Whitegrass International Airports; Component B: (i) development of an Aviation Sector Strategy; (ii) provision of advisory services to assist the CAAV to: (a) review and update Vanuatu’s legislative framework applicable to the aviation sector; (b) address national and international regulatory requirements for the aviation sector; and (c) implement the Aviation Sector Strategy; (iii) provision of advisory services to assist MIPU with its management and oversight of Vanuatu’s aviation sector; (iv) training for capacity building; and (v) a Pacific Regional Infrastructure Facility (PRIF) grant of US$0.3 million provides funding to CAAV (a department within MIPU) for safety and security audit, oversight and advisory services provided by PASO in accordance with PICASST; Component C: (i) development of an Airport Master Plan; (ii) provision of technical assistance to improve the planning, financial viability, efficiency, safety and security of airport operations; and, (iii) training on aviation policy, operations and management. Component D: emergency reconstruction of Bauerfield airport damaged from cyclone Pam in 2015; and Component E: project implementation support provided to VPMU, AVL and TFSU. The Grand Opening Ceremony of the Bauerfield airport (now renamed as Port Vila airport) was held on December 7, 2019 with key remarks made by the GOV Prime Minister. The navigation aids package will be financed by the GOV budget. The procurement (under the GOV rules) is underway. The supply and installation of the navigation aids is planned for completion in September 2020. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies High Substantial Substantial Technical Design of Project or Program Substantial Low Low Institutional Capacity for Implementation and Sustainability High Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Low Substantial Substantial Stakeholders High High High Other -- -- -- Overall High Substantial Substantial Results PDO Indicators by Objectives / Outcomes to improve operational safety of international air transport and associated infrastructure IN00783835 ►Regulatory certification of safety and security at Bauerfield (VLI) maintained (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/26/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) Re-validation of certification of VLI in Value VLI certified Partially certified Certified accordance with CAR- Part 139. Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 30-Jun-2019 Achieved for VLI. This indicator has been successfully achieved. The Civil Aviation Authority Vanuatu confirmed that the last audit of Part 139 inspection was carried out by PASO in March 2019 and this Comments: resulted in a renewal of the Aerodrome certificate of VLI. IN00783877 ►Modernization of air traffic management achieved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target ADS-B and VSAT ADS-B operational/VSAT VSAT and ADS-B fully Value No VSAT or ADS-B installed and fully under implementation operational operational Date 05-Mar-2015 01-Feb-2018 20-Dec-2019 30-Jun-2018 Achieved. At the time of project closing the VSAT communications system and the ADS-B are operational at all three airports (Bauerfield, Santo Pekoa and Whitegrass) and key staff have been trained on its Comments: effective use. to improve oversight of international air transport and associated infrastructure IN00783876 ►State requirements for safety measured by Universal Safety Oversight Audit Programme (USOAP) reaches global ICAO average (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 47.51 47.51 19.73 41.38 Date 05-Mar-2015 01-Feb-2018 20-Dec-2019 30-Jun-2019 Achieved. Based on the inception report dated December 2019 prepared by an international consultant to the Pacific Aviation Safety Office advising on the ICAO continuous monitoring approach, the provisional level of Effective Implementation rating for Vanuatu is 80.27% (provisional means that, in the absence of an actual ICAO audit, the estimate is “an approximation of the EI the State could expect if an audit activity Comments: were to be conducted at that moment and all the claimed progress on corrective action plans was assessed as satisfactory”). This corresponds to a lack of compliance of 19.73%. As a result of this, the team is confident that when the ICAO audit takes place, it will confirm that this PDO indicator is met, and likely significantly exceeded. IN00783878 ►Regional safety and security levy for departing international passengers implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target AU$5 collected from Achieved. Levy being Achieved. Levy being each departing Value No levy collected as of 1 collected as of 1 international September 2017 September 2017 passenger. Date 05-Mar-2015 01-Feb-2018 20-Dec-2019 30-Jun-2016 Achieved. The implementation of the SSL is a dated legal covenant that was expected to be completed not later than 1 July 2016. The introduction of the levy was delayed due to issues associated with how the levy is earmarked for use only by CAAV and AVL. Collection began on 1 September 2017 and Comments: expenditures have been mainly for services from the PASO and expenditure to ensure effective safety oversight by the CAAV. 12/26/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) Overall Comments PDO The PDO was successfully achieved based on the assessment of each PDO indicator. It is however worth noting from the perspective of a broader assessment of the operational safety at Bauerfield airport that the safety-related PDO indicator can be better defined and measured if it is linked to the completion of the supply and installation of the navigation aids package. An Intermediate Results Indicator (IRI), “Navigation and safety aids in line with implementation schedule”, which was described as “Supply and installation of navigation and safety aids leading to improved operational safety” was already included in the project Results Framework to measure the completion of the supply and installation of the navigation aids package, but was not linked to the outcome indicator. Audit report pertaining to Part 171 which covers Aeronautical Technical Services under the provision of air navigation aids should have been required to measure this safety-related PDO indicator, in addition to Part 139. Intermediate Results Indicators by Components Component A: International Airport Infrastructure Investments IN00783879 ►Repairs to Bauerfield, Whitegrass and Pekoa Airport pavements in line with implementation schedule (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95.00 100.00 100.00 Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 28-Sep-2018 Completed. Repair works were completed at all three airports but with 9 month delayed at Bauerfield, 3 Comments: months delayed at Whitegrass and 1 month delayed at Pekoa. IN00783884 ►Navigation and safety aids in line with implementation schedule (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 13-Dec-2011 15-Apr-2019 20-Dec-2019 30-Jun-2017 Activity not implemented under project. There was shortfall of IDA funds for this package. The GOV decided to fund this package from its budget. The procurement is underway. Supply and installation of Comments: navigation aids is planned for completion and operations in September 2020. IN00783887 ►Fire Standards at VLI Achieved (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Category 6 Completed Completed Category 8 Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 30-Jun-2018 Completed. Aircraft Rescue and Fire Fighting (ARFF) upgrade from Category 6 to 8 was completed. Comments: Component B: Aviation Sector Reform and Training IN00783880 ►Aviation Sector Strategy in line with implementation schedule (Percentage, Custom) 12/26/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 30-Jun-2018 Achieved. Aviation Sector Strategy completed and endorsed by the GOV for implementation. Comments: Component C: Strengthening of Airport Operations and Management Capacity IN00783881 ►Airport Master Plan in line with implementation schedule (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 30-Jun-2018 Achieved. Airport Master Plan completed and endorsed by the GOV for implementation. New terminal at Bauerfield following recommendation from the Master Plan is under study for investment, probably under Comments: funding by the Government of Japan. IN00783885 ►Successful implementation of agreed training plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Training Plan Value No Training Plan Training delivered Training delivered completed Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 31-Dec-2017 Training was delivered to both CAAV and AVL and highly appreciated. Comments: Component D: Emergency Reconstruction IN00783882 ►Emergency Repairs to Bauerfieled and Whitegrass completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Three sets of Three sets of emergency emergency repairs at repairs at Bauerfield are Bauerfield runway No spot rehabilitations at Bauerfield are completed; Whitegrass remains Bauerfield/ Damages completed; Whitegrass Value repairs (fencing, building) operational/Whitegrass from Cyclone Pam at repairs (fencing, damaged by Cyclone meets safety Whitegrass not repaired building) damaged by repaired with 60% requirements Cyclone repaired with completed. 60% completed. Date 05-Mar-2015 15-Apr-2019 20-Dec-2019 01-Oct-2018 Completed. Comments: Component E: Project Support IN00783883 12/26/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) ►Grievance registered related to delivery of project benefits by gender that are actually addressed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 05-Mar-2015 01-Feb-2018 20-Dec-2019 31-Dec-2017 Partially Achieved. 2 grievances received related to project benefits were addressed. However, gender Comments: was not explicitly addressed. IN00783886 ►Project-supported organization(s) publishing periodic reports on GRM and how issues were resolved (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 05-Mar-2015 01-Sep-2017 20-Dec-2019 31-Dec-2017 Partially Achieved. Project has web site www.vaip.vu which displays the resolution rate for grievances. Comments: However, time to resolve the grievances and how the issues were resolved were not published. IN00783888 ►Grievances responded and/or resolved within the stipulated services standards for response times (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 100.00 75.00 Date 05-Mar-2015 01-Feb-2018 20-Dec-2019 31-Dec-2017 Achieved. Two complaints were received during the project time. One was a complaint from Ni-Vanuatu workers covering working conditions and treatment from the Contractor, many of which were confirmed by Department of Labour and Employment Services (DLES). Following notices from the supervising engineer and representatives from DLES, the Contractor conducted consultations with the workers and resolved key issues that contravened national law at the end of the project/ contract. Comments: Another one was related to the environment damages caused by the Contractor's construction activities. Excess bitumen was dumped by the Contractor’s workers in the bush behind the airport fence on to the open ground. The Department of Environment (DEPC) was actively involved in having this issue resolved to ensure compliance with the environmental safeguards. Considering that the incident was significant, DEPC sent a compliance officer to Tanna, and by the time of the visit, the Contractor had already rectified the issues and cleaned up the spills. DEPC was satisfied with the result. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P154149 IDA-56320 Effective USD 59.50 59.50 0.00 59.28 0.00 100% P154149 IDA-59440 Effective USD 9.50 9.50 0.00 9.58 0.00 100% 12/26/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) P154149 IDA-D1610 Effective USD 4.60 4.60 0.00 0.73 3.86 16% P154149 TF-A0607 Effective USD 0.30 0.30 0.00 0.30 0.00 100% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154149 IDA-56320 Effective 08-May-2015 03-Jun-2015 09-Jul-2015 31-Dec-2019 31-Dec-2019 P154149 IDA-59440 Effective 10-Jan-2017 23-Feb-2017 14-Jul-2017 31-Dec-2019 31-Dec-2019 P154149 IDA-D1610 Effective 10-Jan-2017 23-Feb-2017 14-Jul-2017 31-Dec-2019 31-Dec-2019 P154149 TF-A0607 Effective 08-May-2015 03-Jun-2015 03-Jun-2015 31-Dec-2019 31-Dec-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P161454-Vanuatu Aviation Investment Project Additional Financing 12/26/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Vanuatu Aviation Investment Project (P154149) 12/26/2019 Page 8 of 8