Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD3181 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED PROJECT RESTRUCTURING AND ADDITIONAL GRANT IN THE AMOUNT OF SDR 1.6 MILLION (US$2.2 MILLION EQUIVALENT) TO THE INDEPENDENT STATE OF SAMOA FOR THE SAMOA AVIATION INVESTMENT PROJECT ADDITIONAL FINANCE II April 18, 2019 Transport Global Practice East Asia And Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2019) Currency Unit = Western Samoa Tala (WST) WST2.6 = US$1 US$1.38825 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Guangzhe Chen Practice Manager: Almud Weitz Task Team Leader(s): Noroarisoa Rabefaniraka, Rodrigo Archondo-Callao ABBREVIATIONS AND ACRONYMS ADS-B Automatic Dependent Surveillance-Broadcast AGL Airfield Ground Lighting APW Apia Faleolo International Airport ATC Air Traffic Control CAD Civil Aviation Division CPF Country Partnership Framework CTSSU Centralized Technical Services Support Unit DME Distance Measuring Equipment DVOR Doppler Very High Frequency Omni Range EIRR Economic Internal Rate of Return FM Financial Management GBV Gender- Based Violence GCLS Grievance and Complaint Logging System GDP Gross Domestic Product GoS Government of Samoa GRM Grievance Redress Mechanism GRS Grievance Redress Service ICAO International Civil Aviation Organization IDA International Development Association ILS Instrument Landing System IPF Investment Project Finance LED Light-emitting diode MOF Ministry of Finance MTTAP Medium Term Transport Action Plan MWCSD Ministry of Women, Community and Social Development NAVAID Navigation Aid NPV Net Present Value NSC National Steering Committee PAD Project Appraisal Document PAIP Pacific Aviation Investment Program PASO Pacific Aviation Safety Office PDO Project Development Objective PIA Project Implementation Agreement PIC Pacific Island Country PPSD Project Procurement Strategy for Development PRIF Pacific Region Infrastructure Facility PSC Program Steering Committee PST Project Support Team SAA Samoa Airport Authority SAIP Samoa Aviation Investment Project SCD Systematic Country Diagnostic SDR Special Drawing Rights SOP Series of Project SORT Systematic Operations Risk Rating Tool SSL Safety and Security Levy STEP Systematic Tracking of Exchanges in Procurement TAIP Tonga Aviation Investment Project TFSU Technical and Fiduciary Services Unit TISCD Transport and Infrastructure Sector Coordination Division US$ United States Dollar USOAP Universal Safety Oversight Audit Program VO1 Variation Order 1 VSAT Very Small Aperture Terminal WB World Bank Samoa Samoa Aviation Investment Project Additional Finance II TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................... 7 II. DESCRIPTION OF ADDITIONAL FINANCING.......................................................................... 13 III. KEY RISKS............................................................................................................................... 16 IV. APPRAISAL SUMMARY.......................................................................................................... 18 V. WORLD BANK GRIEVANCE REDRESS .................................................................................... 21 VI SUMMARY TABLE OF CHANGES............................................................................................ 23 VII DETAILED CHANGE(S)............................................................................................................ 23 VIII. RESULTS FRAMEWORK AND MONITORING......................................................................... 29 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) BASIC INFORMATION – PARENT (Samoa Aviation Investment Project - P143408) Country Product Line Team Leader(s) Samoa IBRD/IDA Noroarisoa Rabefaniraka Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P143408 Investment Project GTR02 (9381) EACNF (6680) Transport Financing Implementing Agency: Samoa Airport Authority ADD FIN TBL1 Is this a regionally tagged project? Bank/IFC Collaboration No Original Environmental Approval Date Closing Date Current EA Category Assessment Category 06-Mar-2014 30-Jun-2019 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities e n P a r t [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [✓ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) Development Objective(s) Apr 11, 2019 Page 1 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) The project development objective is to improve operational safety and oversight of international air transport and associated infrastructure. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 13-Aug-2016 21-Feb-2017 23-Jun-2017 30-Nov-2017 19-Apr-2018 02-Nov-2018 Progress towards achievement of MS MS MS S S S PDO Overall Implementation MS MS MS S S S Progress (IP) Overall Safeguards MS MS MS S S S Rating Overall Risk H H H S S S BASIC INFORMATION – ADDITIONAL FINANCING (Samoa Aviation Investment Project Additional Finance II - P169279) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P169279 Samoa Aviation Cost Overrun, Restructuring No Investment Project Additional Finance II Financing instrument Product line Approval Date Investment Project IBRD/IDA 09-May-2019 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 31-Jul-2020 No Is this a regionally tagged project? Country (ies) Apr 11, 2019 Page 2 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Yes Kiribati, Solomon Islands, Tonga, Tuvalu, Vanuatu, Samoa Financing & Implementation Modalities l d C h i [✓ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 41.62 26.20 14.06 65 % Grants 0.30 0.30 100 % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Samoa Aviation Investment Project Additional Finance II - P169279) P R OJ E C T FINANCING DATA (US$, Millions) S UM M N e wF i AR Y - n 1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 48.17 3.35 51.52 Total Financing 48.17 3.35 51.52 of which IBRD/IDA 41.62 2.20 43.82 Financing Gap 0.00 0.00 0.00 Apr 11, 2019 Page 3 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) DETAILS - Additional Financing n E n h 1 N e wF i World Bank Group Financing International Development Association (IDA) 2.20 IDA Grant 2.20 Non-World Bank Group Financing Counterpart Funding 1.15 Borrower/Recipient 1.15 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Samoa 0.00 2.20 0.00 2.20 National PBA 0.00 2.20 0.00 2.20 Total 0.00 2.20 0.00 2.20 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Transport Contributing Practice Areas Apr 11, 2019 Page 4 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Noroarisoa Rabefaniraka Transport GTR02 Responsible) Rodrigo Archondo-Callao Team Leader Engineer GTR02 Cristiano Costa e Silva Procurement Specialist (ADM Procurement GGOPG Nunes Responsible) Financial Management David Bruce Whitehead Financial Management GGOEP Specialist (ADM Responsible) Social Specialist (ADM Ross James Butler Social Safeguards GSU02 Responsible) Ajcharaporn Lorlamai Team Member Team Assistant EACNF Antonia Wong Team Member Program Assistant EACNF Ashraf Bakry El-Arini Environmental Specialist Climate co-benefits GENE2 Caroline Ruth Holo Team Member Team Assistant EACNF Charles E. Schlumberger Team Member Lead Air Transport Specialist GTR09 Chau-Ching Shen Team Member Disbursement WFACS Apr 11, 2019 Page 5 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Duangrat Laohapakakul Team Member Legal LEGES Georgina Elizabeth Team Member Legal LEGES McArthur Joan Toledo Team Member Disbursement WFACS Keelye Rinchen Hanmer Team Member Transport Analyst GTR02 Loren Jayne Atkins Team Member Legal LEGES Lorraine D. James Team Member Program Assistant EACNF Monica Sawyer Team Member Operations GTR02 Naoki Kakuta Team Member Transport GTR02 Nicholas John Valentine Environmental Specialist Environmental Safeguards GENE1 Philip Steven Bruce Martin Team Member Gender GSU02 Rohan Bhargava Team Member Climate co-benefits GENE2 Sam William Johnson Team Member Transport GTR02 Thomas John Callander Team Member Social Safeguards GSU02 Wolfhart Pohl Environmental Specialist Environmental Safeguards GENE1 Extended Team Name Title Organization Location Apr 11, 2019 Page 6 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING 1. This Project Paper seeks the approval of the Executive Directors to provide a second Additional Financing (AF II) consisting of an International Development Association (IDA) Grant in the amount of SDR 1.6 million (or US$2.2 million equivalent) to the Independent State of Samoa (Samoa) for the Samoa Aviation Investment Project (SAIP) (IDA-H914-WS, IDA-5805-WS, PRIF-TF017019) . The AF II also includes a second level restructuring as described in paragraph 3 below. 2. The proposed additional IDA Grant will cover financing gap and cost overruns and will help ensure that the project meets its Project Development Objectives (PDO). AF II aims to build upon the progress achieved to date and complete a number of activities, by supporting the cost increases related to existing contract variations and providing additional funds for on-going and planned activities. 3. In addition, the proposed AF II includes a Level II Restructuring of SAIP to: • Extend the closing dates of grants IDA-H914-WS and IDA-5805-WS by nine months to March 31, 2020 to allow for the completion of remaining activities. • Increase costs to Components A, B, C and D by a total of US$2.2 million. 1 • Revise the implementation arrangements under the project. Following the conclusion of services provided by the Technical and Fiduciary Services Unit (TFSU) on December 31, 2019, the Transport and Infrastructure Sector Coordination Division (TISCD) and the Centralized Technical Services Support Unit (CTSSU) will provide support to the Project Support Team (PST) on fiduciary and/or technical aspects of project implementation, on an as-needed basis, from January 1, 2020 to the end of the project implementation period. The Implementing Agency will remain unchanged. • Revise procurement arrangements under the project to apply the Procurement Regulations. • Revise the Results Framework under the project to include 2 new project monitoring indicators. 4. The above modifications proposed as part of the restructuring will not detract from SAIP’s current activities. No change is proposed to the PDO. The implementation and financial management arrangements currently in place remain the same until December 31, 2019, and will be adjusted after that date to reflect the reduced scheduled activities, as explained further in paragraph 35, Implementation Arrangements. No additional safeguard policies will be triggered, and there will be no change to the current (Category B) safeguards classification. 5. Background. The economy of Samoa, like other remote and sparsely-populated Pacific Island Countries (PICs), is highly dependent on air transportation. Aviation plays a vital economic and social role in Samoa’s development. Most visitors, tourists and the crucial visiting friends and relatives (VFR) segment, rely predominantly on air transport. Furthermore, air connectivity is essential to meeting Samoa’s educational and medical needs, and enables effective regional integration with its Pacific neighbors. Its geographic distance from main markets means that efficient air services are integral to the Government of Samoa’s (GoS) drive to increase exports, especially those of low volume and high value that depend on fast delivery. Failure to address aerodrome safety, particularly as it relates to runway and apron 1 The overall project financing (including the Government’s counterpart fi nancing of US$1.15m) is US$3.35m. Apr 11, 2019 Page 7 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) conditions that would result in eventual withdrawal or curtailment of international airline services, would ultimately affect the flows of tourism, labor, goods, services, knowledge and investments. 6. In December 2011, IDA approved the Pacific Aviation Investment Program (PAIP), a regional Adaptable Program Loan that consists of a Series of Projects (originally including Kiribati, Tonga, and Tuvalu as a first phase) designed to ensure that critical aviation infrastructure meets operational safety requirements, as well as to strengthen regulatory compliance of international air transport of the participating PICs, while supporting each participating country’s capacity development. 7. Under PAIP, SAIP was approved by the Board of Executive Directors on March 6, 2014, as the second phase of the regional program, and became effective on August 6, 2014, with total IDA grant financing of SDR 16.3 million (US$25 million equivalent). The funding envelope comprised of a US$5 million national IDA grant and a US$20 million regional IDA grant, a GoS counterpart contribution of approximately US$5 million in the form of taxes, and US$300,000 contributed by the Pacific Region Infrastructure Facility (PRIF) for the direct engagement of the Pacific Aviation Safety Office (PASO) in regulatory advisory services. 8. AF I, an IDA Credit of SDR 12.10 million (US16.62 million equivalent) was approved on June 3, 2016, to finance the costs related to changes in the co-financing arrangements with the European Investment Bank (EIB) and an expanded scope of work required because of a new terminal investment financed by the Export-Import Bank of China (China EXIM Bank). As part of AF I, a Level II Restructuring of SAIP was also approved to: (i) revise the Results Framework and monitoring indicators; (ii) change safeguard requirements to acknowledge the new terminal investment through development and monitoring of an integrated Environmental and Social Management Plan (ESMP), and associated legal covenants; (iii) change financing arrangements and disbursement estimates; (iv) change components and costs; and, (v) change the implementation schedule. 9. AF II will address a funding shortfall to allow the completion of key activities, using additional national IDA financing. 10. The AF II remains aligned with the Government’s Strategy for the Development of Samoa2, particularly Key Outcome 10: Efficient, Safe and Sustainable Transport System and Networks, and recognize that improving transport infrastructure is a priority for enabling growth in tourism. Theory of Change 11. The project is designed to tackle the problems that may be caused by an interruption of international air services due to safety and security concerns in a country which is highly dependent on air transportation, and its subsequent negative effects on the country’s economy. The project’s Theory of Change is presented in Figure 1 below. 2 Stra tegy for the Development of Samoa 2016/17 – 2019/20. Government of Samoa, December 2016. Apr 11, 2019 Page 8 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Figure 1. Theory of Change Apr 11, 2019 Page 9 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Project Development Objective (PDO) 12. The original Project Development Objectives as stated in the Financing Agreement and the Project Appraisal Document (PAD) is to “improve operational safety and oversight of international air transport and associated infrastructure.” As part of this AF II, the PDO will remain unchanged; the changes proposed under AF II are considered within the original scope of the project and will help to ensure that the PDO is achieved. Key Outcome Indicators 13. As with other PAIP countries, the PDO is measured through four indicators defined as outcome-level indicators: • Regulatory certification of safety and security at project airports • State requirements for safety measured by Universal Safety Oversight Audit Program (USOAP) reaches global International Civil Aviation Organization (ICAO) average • Modernization of air traffic management • Implementation of a regional Safety and Security Levy (SSL) for departing international passengers. 14. Regarding the first PDO indicator, “Regulatory certification of safety and security at project airports”, Faleolo International Airport was certified by the Civil Aviation Authority of New Zealand, on behalf of the Samoa Civil Aviation Authority in March 2000, and the airport remains compliant. For the second PDO indicator, “State requirements for safety measured by USOAP reaches global ICAO average”, targeted technical assistance activities to elevate State requirements for safety and security to reach global International Civil Aviation Organization (ICAO) average are well advanced 3, including support for Personnel Licensing and Accident and Incident Investigation polices. On the third PDO indicator, “Modernization of air traffic management”, the Automatic Dependent Surveillance-Broadcast (ADS-B), with avionics is now installed in three aircrafts 4 and the VSAT and ADS-B ground stations are installed and operational, meeting the outcome of upgraded communications and navigations equipment. For the last PDO indicator, “Implementation of a regional safety and security levy for departing international passengers”, a US$3.57 or AU$5 equivalent Safety and Security Levy (SSL) has been in place since October 2015. 15. The project is designed under the following assumptions: (i) Faleolo airport remains certified; and (ii) collection of Safety and Security Levy (SSL) is regular and used for its intended purposes. 3 The Pa ci fic Avi a tion Sa fety Overs ight Orga nization (PASO) wi ll s upport the Ci vi l Avi ation Department (CAD) by s ending an i ndependent consultant to monitor the progress made by CAD regarding i ts compliance with ICAO s afety a nd s ecurity standards a nd update the project’s PDO indicator “State requirements for safety measured by Universal Safety Oversight Audit Program (USOAP) rea ches global ICAO a verage”. 4 The ADS-B Out avionics were installed on Samoa Airways DHC-6 twin otter a ircrafts which were the only non-equipped a i rcra fts i n Samoa. Apr 11, 2019 Page 10 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Components 16. The current Project (original financing, plus AF I) contains the following components with a total cost of US$48.17 million: • Component A: Aviation Infrastructure Investments (total costs of approximately US$41.72 million). This component finances the aviation infrastructure investments at Faleolo International Airport, including: rehabilitation of airport runways; rehabilitation, repair and/or expansion of taxiways, and aprons; reconfiguration of fuel hydrant; installation of new navigation aids (NAVAIDS), automatic weather monitoring, safety and security equipment, and air traffic control equipment; upgrading of generator capacity and installation of energy efficient equipment such as terminal lighting; provision of water storage tanks; security improvements such as closed circuit television; upgrading of runway lighting; provision or upgrading of fire safety equipment; provision of the Very Small Aperture Terminal (VSAT) secure communications system; and provision of the design and supervision consulting services required for implementation of the infrastructure investments. • Component B: Aviation Sector Reform and Training (total costs of approximately US$1.57 million). This component finances technical assistance and training designed to improve aviation sector management, policy, safety and security oversight; development of a national aviation policy; and safety and security oversight audits. • Component C: Strengthening Airport Operations and Management Capacity (total costs of approximately US$1.58 million). This component finances activities to strengthen airport operations and management capacity, including among other things: studies to assess the current conditions of the aviation sector and airports; development of a strategic business plan; and training on aviation policy, management, and operations. • Component D: Project Management (total costs of approximately US$3.30 million). This component finances the provision of support required for the project, including, technical, advisory, and administrative support to the Pacific Aviation Investment Program (PAIP) Technical and Fiduciary Services Unit (TFSU) and the PST; and annual subscriptions for the operation of the VSAT infrastructure during project implementation. 17. Project Progress. The project is in its final year of a five-year implementation period, with a current project closing date of June 30, 2019. Progress towards achieving the PDO and Overall Implementation Progress are Satisfactory, associated with the achievement of key project milestones. Despite delays in some activities, all the PDO indicators have been or are being achieved. 18. With regards to the activities financed by the project, the delivery and commissioning of fire rescue vehicles are complete, exceeding the targeted outcome of improving the Airfield Rescue and Fire Fighting category (from previous Category 8 to Category 10). The Aviation Sector Strategy and the Samoa Airport Authority (SAA) Business Strategy and Master Plan have both been completed. The award and contract signing for the Airfield Ground Lighting (AGL) and navigational aid packages is completed; however, contract completion is likely delayed until early 2020, i.e., beyond the current closing date, due to long Apr 11, 2019 Page 11 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) lead times in contract processing and availability of some materials. 19. The contract to resurface the apron and runway constitutes the main activity financed by the project, with an original amount of US$31.4 million and 18-months duration. The contract contains two separate portions: (i) the rehabilitation of the apron, and (ii) the resurfacing of the runway. While the World Bank provided its no-objection to the draft contract in October 2017 and the contract was signed in January 2018, due to GoS processing requirements, the instruction to commence work was provided only in April 2018, causing about four months of delay in getting the runway completed. The works were initially scheduled to be completed in July 2019 and are now expected to be completed in November 2019. The apron expansion and airside infrastructure are at an advanced stage of implementation; apron works were completed in end March 2019, and works for the runway pavement are to be launched in April 2019. The whole works are expected to be completed in November 2019, i.e. three months after the current project’s closing date. . 20. Unforeseen circumstances necessitated a variation amounting to US$2.8 million to the apron and runway contract in June 2018 addressing two issues. The first issue was that the specifications of the apron pavement were changed from a flexible to a rigid pavement (concrete), to avoid damages to the underground services whose location were not known at the time of contract tendering, because no as- built documents were available regarding their layout and specifications. This surfacing change has the additional benefit of making the pavement able to support heavy load of tugs and airbridge wheels. The second issue was that the terminal building, constructed in parallel by another contractor outside this project had a lower level than the apron. As a result, the construction of a retaining wall around the terminal building became necessary to remove the risk of water and oil spills on the apron inundating the terminal. 21. Project Management. Project Management is Satisfactory: all reporting requirements are generally being met by the PST, which has been relatively effective in their project management duties and in overseeing project implementation. However, given the delays and change in civil works and equipment delivery schedules, tighter and stricter oversight and contract management will be required going forward. Support to the PST from TFSU will conclude on December 31, 2019. The GoS has indicated that the extension of TFSU support beyond December 31, 2019 (which is the closing date of the Tonga Aviation Investment Project [TAIP] to which TFSU is attached) is not required. The only remaining activity in 2020 would be the delivery of the AGL spare parts, and potentially some training activities, for which there is no need for technical support services from TFSU. If required, TISCD and CTSSU will provide any additional support to SAA. 22. Disbursements. As of April 8, 2019, disbursement rates were at 65 percent for IDA contributions (US$26.2 million disbursed) and 100 percent for the Pacific Region Infrastructure Facility (PRIF) contributions (US$0.30 million disbursed). Further details regarding the project’s disbursement projections are provided in paragraph 34 and Table 2 further below. Apr 11, 2019 Page 12 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) II. DESCRIPTION OF ADDITIONAL FINANCING 23. The proposed AF II of US$2.2 million will increase the total project costs from US$48.17 million (including taxes) to a revised total cost of US$51.52 million, including the AF II US$2.2 million amount plus GoS corresponding counterpart funds of US$1.15 million. 5 This additional financing is to be provided exclusive of taxes, in line with the original project and its AF I. 24. Rationale for AF II. The Additional Financing resources will provide supplemental funds to cover the financing gap resulting from the decision to finance the Variation Order 1 (VO1) for apron/runway works using the existing IDA funding sources (original grant and AF I). While this VO1 was the original trigger for requesting AF II, it is not part of the activities to be financed under AF II. As a result of using some of the original IDA resources for VO1, other ongoing and planned activities no longer fit into the financing envelope. Thus, AF II will be used to fund the following activities, as contained in Table 1 below: Table 1. Activities to be financed using AF II # Contract US$ A. Contract Variations (Components A & D) 1 Supervision of NAVAIDS (to i ncl ude DVOR & ILS des ign a nd bid $ 80,000.00 documents) - Component A 2 AGL, Power Supply a nd ATC Equi pment (to i ncl ude s pa re pa rts) - $ 150,000.00 Component A 3 SAIP Project Ma nager - Component D $ 45,000.00 4 SAIP Project Accountant - Component D $ 30,000.00 B. Replacement Activity (Component A) 5 Technical Advisor & Supervision Consultant (APW Pa vement Works), to $ 545,000.00 repl ace the current works supervisor C. Continuation of Originally Planned Activities (Component A) 6 Wa ter Ta nks (2 x 100,000L) - Component A $ 150,000.00 7 Pa s senger Fa cilitation Equipment (Wheelchairs, s tretchers, gol f ca rts)- $ 6,400.00 Component A D. Continuation of Ongoing Activities (Components B, C & D).* 8 TFSU Servi ces - Component D $ 255,000.00 9 Tra i ning Funds a vailable for Ci vil Avi ation Division (MWTI)- Component B $ 145,000.00 10 Tra i ning Funds available for Samoa Airport Authority (SAA)- Component C $ 84,000.00 11 Incremental Operating Costs - Component D $ 75,000.00 Total $ 1,565,400.00 Contingency $ 634,600.00 Total Additional Requirement $ 2,200,000.00 * no procurement processing needed 25. No new activity that was not part of the original project scope will be funded using AF II. Details of and the rationale for financing these activities are elaborated in the following paragraphs. 5 GoS contri bution includes US$1m a nd US$0.15m for VAGST ta xes. Apr 11, 2019 Page 13 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) A. Contracts variations: 26. DVOR and ILS design of specifications for procurement (Component A). The acquisition of the DVOR and ILS equipment had been previously requested by GoS to be included in the original SAIP financing. Due to budget constraints, priority was given to the NAVAIDs and other equipment purchase was postponed until further funding could be confirmed. NAVAIDs equipment was prioritized as it plays a key role in the overall safety and security of aircraft operations, and is directly linked to the intermediate indicator 1, “Navigational Aids operational”. The VOR6 air navigation system currently in use at Faleolo airport was installed in 2004 and does no longer represent the latest technology of the DVOR. The current equipment is obsolete and expensive to maintain; hence replacement is the best option. The ILS at the airport is also in need of replacement. The AF II will finance the relevant studies through a variation of the contract of the NAVAIDs supervisor. To ensure that the procurement process for the replacement of the equipment can be carried out quickly under a future project, AF II will finance the preparation of the design and specifications for the DVOR and ILS equipment. 27. AGL, power supply and ATC equipment spare parts (Component A). Spare parts for the AGL, power supply and ATC equipment will be procured to minimize risks of operational outages on the airport (runway, apron, tower center, etc.). Light-emitting diode (LED) fittings will replace current lightings because of their long life and energy efficiency. LED lifetimes are typically 60 times that of halogen fittings. This significantly reduces the maintenance costs associated with the need to replace halogen lamps more frequently. In addition, LEDs have lower power ratings which reduce energy usage, and allow for a smaller standby generator. The delivery of the main equipment has been already scheduled to occur before the current project’s closing date. Spare parts are scheduled to arrive at the end of 2019; should there be any issue related to their availability, the proposed closing date allows for a sufficient margin of safety. 28. PST staff salaries (Component D). The contracts of the SAIP Project Manager and Project Accountant will be extended from the current project’s closing date until the agreed new project’s closing date. B. Replacement of the pavement work supervision consulting contract: 29. APW pavement works supervision contract (Component A) . The current supervision contract for the apron and runway works is due to expire in July 2019, prior to the completion of the apron and runway works. GoS will proceed with the recruitment of a supervision consultant to complete the work. C. Continuation of originally planned activities: 30. Other airport equipment (Component A) . The acquisition of two water tanks, together with passenger facilitation equipment (wheelchairs, stretchers, and golf carts) was to be financed by the original project but was not pursued due to funding limitations. Procurement of these equipment will be processed under the AF II. 6 VOR i s a type of short-range radio navi gation s ystem enabling aircraft with a receiving unit to determine their position and s ta y on course. Apr 11, 2019 Page 14 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) D. Continuation of on-going activities: 31. TFSU service fees (Component D). AF II will finance the payment of TFSU service fees for their fiduciary and technical support until the current closing date of TAIP, on December 31, 2019. 32. Continuation of training delivery for CAA staff (Component B) and for SAA staff (Component C) . The project financed a training needs assessment which was completed in April 2016. A training plan was subsequently approved in February 2017. This plan started to be implemented in May 2017. As of February 2019, 70 percent of SAA and 60 percent of CAD skill gaps were addressed. The remaining identified training needs are scheduled to be addressed before the new requested project closing date extension. 33. Incremental operating costs (Component D) . As a result of the project’s continuation and extension, additional incremental operating costs 7 include the following items from July 2019 to March 2020: communication costs (broadband and telephone); office stationery and supplies; travel to attend PAIP Program Steering Committee (PSC) (incl. daily subsistence allowances & airfares for Project Manager, SAA, MOF) - per quarter; evaluation meetings; procurement notices; and other general items. 34. Disbursement projections are presented below. The pavement works payment, constituting 75 percent of the projected expenses, will be completed by early 2020. The remaining substantial payments for the AGL, power system and ATC equipment and spare parts will occur in 2020. Table 2: Cumulative Disbursement Projections (from IDA Funds Only) Calendar Year Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Quarter USD$ M 19.87 29.30 38.14 42.07 42.22 42.31 42.37 Notes: 1. Total estimated project calculation as at 31 Dec 2018 - Undisbursed funds in SDR translated to USD utilizing exchange rate as December 31, 2018. 2. Q2 2020 would cover the grace period for remaining project incurred expenses. 35. Implementation Arrangements. There will be no change to the implementation arrangements currently in place, until December 31, 2019, when TAIP closes and the current TFSU arrangements cease to operate. Starting January 1, 2020, the newly established TISCD will provide direct support to all transport projects, with the support of the CTSSU, which will provide fiduciary and any additional support as required. 36. The MOF remains the Executing Agency for the project and SAA the Implementing Agency. Under SAA, the PST was established to oversee the management and implementation of the project. Samoa is also part of the Regional Program Steering Committee chaired by the PAIP Manager, and a National Steering 7 Ba s ed on historical data for 15 months Apr 11, 2019 Page 15 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Committee (NSC) established to oversee coordination and monitoring of project implementation. Both of these committees are expected to continue until the revised closing date. Activities to be financed by AF II, inclusive of all procurements, are expected to be completed by early 2020. Delivery of last spare parts for the AGL equipment and possible remaining CAD and SAA staff training may occur in 2020, and will be supported by TISCD and CTSSU, as required. 37. Project monitoring and evaluation (M&E) will remain the responsibility of the PST. The PST will prepare project reports for each quarter, in collaboration with SAA and supported by the TFSU (or CTSSU and TISCD, as applicable). The TFSU will incorporate elements of the aviation reporting to the overall PAIP reports that they prepare. These reports will track progress in terms of activities progress, disbursement of funds, and achievement of targets as outlined in the project’s Results Framework. The key instrument for evaluating the project will be the indicators identified in the Results Framework which is being revised through this restructuring. The revised Results Framework (Section VIII) and project monitoring indicators will be recorded in an updated version of the Program Operations Manual that is to be prepared and adopted by no later than one month after effectiveness. 38. Regarding the measurement of outcome indicators, the airport certification is done by CAD based on relevant ICAO Standards and Recommended Practices. The modernization of air traffic management includes the installation of the equipment and training to ensure regular equipment maintenance. 39. Safeguards. The safeguards arrangements remain the same. The proposed AF II does not involve any scope changes that pose additional environmental or social risks. A safeguards compliance audit undertaken by the safeguards consultant in August 2018 concluded that the contractors and subcontractors understood the requirements of the Contractor’s Environmental and Social Management Plan (C-ESMP) and that works were being undertaken in line with safeguards requirements. 40. Alternatives to AF II considered. Alternatives to the use of IDA for the AF II were considered. To address the financing gap, two options were discussed with MOF and SAA: (i) a reallocation from the national IDA18 envelope; and, (ii) drawing on the SAA portion of the SSL. SSL collected since 2015 to 2018 amounted to US$1.5 million equivalent. The bulk of it has been spent on Samoa’s contribution to PASO, and the acquisition of some safety equipment including Ultra High Frequency (UHF) link, recovery boats, supply and installation of Air Terminal Services simulator. MOF indicated a preference to utilize the national IDA18 envelope. III. KEY RISKS 41. Risks. The overall implementation risk remains Substantial. The risk ratings for the project have been identified using the Systematic Operations Risk Rating Tool (SORT). Four risks ( out of eight have been lowered from “Substantial” to “Moderate”, based on the project’s performance to date. These include Technical Design of Project or Program; Fiduciary; Environment and Social; and Stakeholders. One risk (Political and Governance) is considered as “Low”, considering the country overall context, while the remaining risks have the highest risks ratings: Apr 11, 2019 Page 16 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) • Macroeconomic (Substantial) : the macroeconomic outlook remains subject to a range of risks, including continued vulnerability to external shocks. Nevertheless, economic activity has picked up in recent years, real Gross Domestic Product (GDP) is expected to increase over the medium term, supported by continued growth in the tourism and agriculture sectors. • Sector Strategies and Policies (High) : Samoa withdrew from the Multilateral Agreement on the Liberalization of International Air Transportation (MALIAT), effective March 9, 2019. Restricting competition is likely to result in a reduction of available seats to Samoa and in an increase in fares to meet market demand, which may result in a reduction in traffic at APW, meaning less revenues for SAA, and potentially less equipment maintenance, and consequently lower level of safety and security. • Institutional Capacity for Implementation and Sustainability (Substantial) : revised supervision arrangements still need to be rapidly put in place and finalized for ongoing and proposed new activities under AF II to avoid delays experienced in the past. 42. Compliance . The project is in compliance with the Bank’s fiduciary policies and all legal covenants. There are no outstanding audits and no audit qualifications. The SSL for international departing passengers has also been approved and revenue collection commenced in October 2015. As per the legislation, SSL (imposed on international departing passengers) aims to finance aviation safety and security expenditures incurred by the Ministry of Works, Transport and Infrastructure (MWTI), including Civil Aviation Division (CAD) and SAA. The account is under the management of MOF, with a list of authorized expenditures contained in the SSL Disbursement Framework. The authorized expenditures are audited as part of Government’s Annual Public Accounts and of SAA annual financial statements. Most of the funds are now supporting the costs to PASO; SAA and CAD staff training that were exclusively funded by SAIP (to be continued under SAIP AF II) which would be financed through SSL upon project completion. SSL funds will sustain safety oversight training in the Aviation Sector. 43. Climate and Disaster Risk Screening, and Climate Change Issues. A screening of the proposed project for short and long-term climate change and disaster risks was undertaken using the World Bank Climate and Disaster Risk Screening Tool. Samoa, like many PICs, is vulnerable to the impacts of climate change and disasters: the country is subject to a range of climate-related hazards such as flooding, storm surge, cyclones and landslips, as well as other coastal hazards such as tsunami. As the airport is close to sea- level, rising sea levels and subsequent flooding are among the key issues. 44. The investments under SAIP help to ensure associated infrastructure is resilient to the impacts of climate change, such as through expanding the drainage capacity, choosing concrete overlay for the apron, and upgrading to more energy-efficient lighting at the airfield. The efficient lighting will reduce emissions and thus mitigate climate change, while the spare parts could increase the capacity of the airport to deal with wear and tear and natural disasters. AF II will finance the spare parts of the AGL equipment to ensure continuity of operations (e.g. in the event of disasters). Potential risks associated with climate change remain moderate. Apr 11, 2019 Page 17 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) IV. APPRAISAL SUMMARY A. Economic Analysis and Financial Analysis 45. Economic Analysis. Based on the economic analysis conducted for AF I of the project in 2016, the Economic Internal Rate of Return (EIRR) was estimated to be 23.1 percent and a Net Present Value (NPV; at 12 percent discount rate), US$55.1 million – assuming 2 percent annual GDP growth rate. AF II will add US$2.2 million, and the total cost becomes US$51.52 million, including GoS contribution. With AF II, the EIRR is estimated to be 22.2 percent with NPV of US$143.3 million, at 6 percent discount rate. 8 A sensitivity analysis of 20 percent cost overrun for the AF II confirms the robust economic viability of the project (i.e. EIRR of 19.1 percent, and NPV of US$133.2 million, at 6 percent discount rate). 46. Financial Analysis. Since AF II is a grant, no financial analysis is required, unlike AF I, a credit, and for which a financial analysis of SAA was conducted and showed that cash flows from SAA’s operations could potentially fund repayment of AF I. Since all the investments were already scheduled, there will not be any positive or negative impacts on SAA’s financial analysis carried out under AF I. B. Technical 47. The investments financed under the proposed AF II are within the scope of the initial parent project and AF I. The remaining changes included within AF II are extensions of existing contracts as well as sustaining the management, operational and technical support functions under Components A and D. 48. Following Tropical Cyclone Gita in 2018, water run-off was evident in the area intersecting the apron and the runway and outfalls along the runway were unable to discharge, resulting in surface water flooding. To address the cross-drainage and outflows issues, an airfield pavement and drainage design has been prepared which includes measures such as a raised pavement away from the terminal interface and additional pipes to ameliorate the impacts of surface flows onto the apron and runway from the West Coast Road and airport parking lot. These measures will help to improve the climate resilience of the investments. C. Gender Issues 49. While census data indicates that women in Samoa are as well educated, if not better educated overall than men (women comprise 23% of skilled and professional employment compared to the 10% share of men), women are often unable to take leadership or decision-making positions in Samoa in government and business. In the 54 Government Ministries, Government Corporations and Constitutional Authorities, only 17 women as compared to 31 men have been appointed a Chief Executive Officer or General Manager (MWCSD, 2015). While SAA male/female staff ratios (75/25%) are, on aggregate, broadly in line with transport sector male/female average (71/29%), women are particularly under- represented in higher-level SAA staff and management positions. At SAA, women currently comprise 25% (n=88) of 348 total staff but only 15% (n=2) at Principal Officer level and hold zero (0%) of the 6 Manager 8A 6 percent discount rate was used considering that the GDP per capita i n Samoa has i ncreased on a verage at 3 percent per yea r from 2010 to 2018. Apr 11, 2019 Page 18 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) positions. SAA HR indicate that one factor limiting women’s ability to transition into higher-level positions is the absence of dedicated career planning and management-track support for women. The small percentage of women working at SAA senior levels means that women may consider management a non- traditional area and self-select out of necessary trainings and/or competitive selection, which fosters an environment in which these problems arise or continue. 50. Due to talent pipeline constraints and the low-turnover of Principal and Management level positions, SAA is unable to appoint additional women into management within the AF II period. Despite this, the project will help close the gender gap by implementing a management fast-track program for women and by training 10 women on the program, to build a gender-diverse talent pipeline and ensure women are able to better compete for senior positions as they emerge. In particular, the team has agreed with SAA on three actions to improve its recruitment and promotion plans and monitor staff turnover, by: (i) developing and implementing equal opportunities amendments to HR policy and practices (agreed to be developed by SAA HR in the form of a Gender Action Plan or similar), which will help women enter and progress through aviation transport and related careers beyond the length of this project; (ii) by developing dedicated management training and career fast-track support program (baseline participants 0/ Target 10), and (iii) by strengthening supply chain management via adopting inclusive procurement mechanisms and establishing opportunities and targets for women to participate in jobs in the facility upgrade as well as ongoing operations. Actions agreed to be undertaken by SAA HR include the assessment and strengthening of human resources policies and supplier management practices at different points in the employment/ contracting relationship, in order to identify appropriate actions to strengthen SAA’s systems and processes that govern corporate behaviors, monitoring and management in terms of equal opportunities. AF II includes a new results indicator to monitor “Women participants in management training and career fast-track support program". D. Financial Management 51. The last Financial Management (FM) performance rating was Satisfactory. The project must deliver accurate and consistent reporting on contract and financial progress in order to prevent having its performance rating downgraded. There are no changes to the FM implementation arrangements and consequently to the FM assessment performed at the original project preparation. There are no outstanding audited financial statements, with the audited financial statements up to the financial year ending June 30, 2018 reviewed and accepted, and the next ones are not due until 30 December 2019. 52. For disbursement purposes, the designated account already opened under the AF I of the Project, i.e. IDA Credit No. 5805-WS, will be used to receive funds from the AF II of the Project. The ceiling of the designated account and minimum value of application is described in the Disbursement and Financial Information Letter. 53. The Financing Plan has been updated as of March 27, 2019. E. Procurement 54. Procurement is Moderately Satisfactory. Twenty-three (23) contracts have been completed under the project and fifteen (15) contracts are currently ongoing (with five [5] contracts under the defects liability Apr 11, 2019 Page 19 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) period). 55. Procurement under the project will follow the procurement procedures specified in the World Bank Procurement Regulations for Investment Project Finance (IPF) Borrowers (August 2018) (Procurement Regulations) and the provisions stipulated in the Financing Agreement. In the case of procurement activities under the project for which the invitation to bid or the request for expressions of interest is issued prior to the effectiveness of the AF II Financing Agreement, procurement will be carried out in accordance with the Bank’s “Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers,” dated January 2011 (“Procurement Guidelines”), and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated January 2011 (“Consultant Guidelines”). 56. SAA prepared a Project Procurement Strategy for Development (PPSD) and an updated procurement plan. To prevent implementation delays, it is critical that TORs and specifications be prepared in a timely manner and that the technical experts acknowledge that TOR/specifications need to align with available budget. The TFSU will closely monitor progress, and any delays will be immediately escalated to the Project Manager for appropriate action. GoS will continue ensuring competitive procurement approaches as feasible and improving transparency through the continuous update of contracts on the project’s website. 57. The main risks and mitigation measures have been discussed between the World Bank and SAA, and are summarized as follows: Risk Description Description of Mitigation Measures Ineffective contract PST should ensure monthly updates are circulated to all key management can negatively stakeholders and critical issues in relation to any time extensions or impact on the achievement of variations are elevated to the NSC as soon as feasible, and where the PDO. applicable, submitted to the World Bank for no-objection in a timely manner. Since recurrent reporting delays have been observed, it is proposed that the TFSU actively engages with the PST/SAA to ensure that progress reporting takes place in an appropriate manner. Reporting on contractual progress on the project’s website (www.saip.ws) and in the quarterly reports needs to take place in a timely manner. Contract variations may Updated Terms of Reference/ updated Scope of Works, along with expose SAA to negative detailed estimated costs for any unforeseen or additional works impacts on the achievement of should be prepared before negotiations with the relevant the PDO. Consultants/ Contractors take place. Accordingly, this process should be detailed in the POM’s Contract Management Manual as soon as feasible. To increase SAA’s level of protection, it is proposed that TFSU’s Contract Management Specialist undertakes a formal quality review assurance of all contract modifications before they are agreed and signed. Apr 11, 2019 Page 20 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) F. Social (including Safeguards) 58. The project’s social safeguards remain Satisfactory. There will be no involuntary resettlement under the project as all land required for the project is owned by the Government. A Grievance Redress Mechanism (GRM) is in place with grievances published on the project website at www.saip.ws. No grievances have been received to date, but one complaint has been registered and resolved. 59. Trainings have been conducted by the Ministry of Women, Community and Social Development (MWCSD) for the contractors on gender-based violence (GBV), violence against children (VAC), and HIV/AIDS. Refresher trainings will be undertaken, as well as routine checks to ensure that all contractor staff have undergone the training and have signed the codes of conduct. This will be important as works scale up and works on the runway commence. 60. A Grievance and Complaint Logging System (GCLS) has been developed for the project and training provided. GCLS has been used for all physical works contracts and will continue to be used until the proposed closing date of the project. G. Environment (including Safeguards) 61. The project remains Category B under Safeguard Policy OP 4.01 Environmental Assessment. The project impacts remain site-specific and none are irreversible. 62. Civil works under the project are being undertaken within the airfield boundary, except for the aggregate sourcing from the nearby Olo Quarry. The quarry is licensed, operational and aggregate material is being transported to the laydown area in accordance with the traffic management plan. The Project Environmental and Social Management Plan for the runway works has been updated to reflect the runway resurfacing and apron/taxiway contactor progress and to include the associated small-scale civil works required for the installation of the NAVAIDs. 63. A site visit was undertaken in early September 2018 to inspect the Olo Quarry, asphalt plant laydown area, laboratory and apron. No major occupational and health safety issues were identified. V. WORLD BANK GRIEVANCE REDRESS 64. The project’s grievance redress mechanism is in place and includes a GCLS outlining a clear process for the management of project related grievances, and a web-based grievance lodgment and reporting platform and multiple lodgment channels (http://www.saip.ws/index.php/complaints/make-a- complaint) . The GRM is coordinated and managed by SAA PST. Training on the operation of the GRM has been conducted. The GRM and GCLS have been included in all SAIP physical works contracts and respective Contractor Environmental and Social Management Plans (CESMPs), with contractor’s Apr 11, 2019 Page 21 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) responsible for raising awareness about the GRM, establishing grievance lodgment channels and resolving grievances in coordination with SAA PST. During the remaining project period, additional GRM training/strengthening exercises will be conducted to ensure all elements of the GRM are functioning effectively. AF II includes a new results indicator to measure the “percentage of registered grievances resolved". 65. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and World Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org. Apr 11, 2019 Page 22 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) VI SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Legal Covenants ✔ Procurement ✔ Implementing Agency ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Financial Management ✔ APA Reliance ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Component A: International 41.72 Revised Component A. Aviation 44.07 Airport Infrastructure Infrastructure Investments Investments Component B: 1.57 Revised Component B. Aviation 1.72 Strengthening Policy and Sector Reform and Regulatory Capacity, and Training Training Apr 11, 2019 Page 23 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Component C: 1.58 No Change Component C: 1.66 Strengthening Airport Strengthening Airport Operations and Operations and Management Capacity Management Capacity Component D: Project 3.30 Revised Component D: Project 4.07 Support Management TOTAL 48.17 51.52 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications IDA-58050 Effective 30-Jun-2019 30-Jun-2019 31-Mar-2020 31-Jul-2020 IDA-H9140 Effective 30-Jun-2019 30-Jun-2019 31-Mar-2020 31-Jul-2020 TF-17019 Effective 30-Jun-2019 30-Jun-2019 28-Jun-2019 28-Oct-2019 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2014 8,632.80 8,632.80 2015 106,898.00 115,530.80 2016 141,578.80 257,109.60 2017 217,683.40 474,793.00 2018 355,636.60 830,429.60 2019 555,524.20 1,385,953.80 2020 638,222.20 2,024,176.00 2021 38,165.60 2,062,341.60 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance  Low  Low Macroeconomic  Substantial  Substantial Sector Strategies and Policies  High  High Apr 11, 2019 Page 24 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Technical Design of Project or Program  Moderate  Moderate Institutional Capacity for Implementation and  Substantial  Substantial Sustainability Fiduciary  Moderate  Moderate Environment and Social  Moderate  Moderate Stakeholders  Substantial  Moderate Other Overall  Substantial  Substantial LEGAL COVENANTS1 LEGAL COVENANTS – Samoa Aviation Investment Project (P143408) Loan/Credit/TF LEGAL TBL1 Description Status Action IDA-H9140 Finance Agreement :Schedule 2, Section Complied with No Change I.A.2: National Steering Committee (NSC) | Description :The Recipient shall establish, by not later than sixty (60) days after effectiveness of the project, and maintain at all times throughout the project implementation period, the NSC with powers and composition satisfactory to the Association. | Frequency :CONTINUOUS IDA-H9140 Finance Agreement :Schedule 2, Section Complied with Revised I.B: Service Agreement | Description :The Recipient shall procure the services of Technical Fiduciary Service Unit (TFSU), through Tonga Airports, Ltd. (TAL), to assist the Recipient and SAA with implementation of the Project, under a Service Agreement. | Frequency :CONTINUOUS Proposed Finance Agreement :Schedule 2, Section Complied with I.B: Service Agreement | Description :The Recipient shall procure the services of Technical Fiduciary Service Unit (TFSU) until December 31, 2019 through Tonga Airports, Ltd. (TAL), to assist the Recipient and SAA with implementation of the Project, under a Service Agreement. | Frequency :Until December 31, Apr 11, 2019 Page 25 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) IDA-H9140 Finance Agreement :Schedule 2, Section Complied with No Change I.C.1(e): Project Support Team | Description :The SAA shall establish, and thereafter maintain throughout the project implementation period, the Project Support Team with powers and composition satisfactory to the Association. | Frequency :CONTINUOUS IDA-H9140 Finance Agreement :Schedule 2, Section After delay No Change I.G: Safety and Security Levy | complied with Description :The Recipient, through SAA, shall, not later than September 30, 2014, and thereafter at all times throughout the project implementation period, collect from departing international air passengers a levy in a minimum amount equivalent to five Australian Dollars (AU$5) to recover aviation safety and security expenditures incurred by the Recipient. | Frequency :CONTINUOUS - Finance Agreement :Schedule 2, Section Complied with No Change II.A.F.1 Safegaurds | Description :Carry out the Project in accordance with the provisions of the Integrated Environmental and Social Management Plan (IESMP). | Frequency :CONTINUOUS - Finance Agreement :Schedule 2, Section Complied with No Change II.A.F.2 Safegaurds | Description :EEnsure that each contract for civil works in the Project Area of Influence includes the obligation of the relevant contractor and any sub-contractors to comply with the relevant provisions of the IESMP applicable to such civil works commissioned/awarded pursuant to said contract, including the obligation to possess all required permits and licenses for construction material extraction. | Frequency :CONTINUOUS - Finance Agreement :Schedule 2, Section Complied with No Change II.A.F.3 Safegaurds | Description :EEnsure that all waste generated in the Project Area of Influence shall be safely and adequately managed and disposed Apr 11, 2019 Page 26 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) of, in a manner satisfactory to the Association, and in accordance with the IESMP. | Frequency :CONTINUOUS - Finance Agreement :Schedule 2, Section Complied with No Change II.A.F.4 Safeguards | Description :(a) Monitor the status of compliance with the IESMP; and (b) Prepare and furnish quarterly reports on the results of such monitoring activities, giving details of: (a) measures taken in furtherance of the IESMP; (b) conditions, if any, which interfere or threaten to interfere with the implementation of the IESMP; and (c) remedial measures taken or required to be taken. | Frequency :CONTINUOUS - Finance Agreement :Schedule 2, Section Complied with No Change II.A.F.5 Safeguards | Description :Afford the Association a reasonable opportunity to review the reports prepared under paragraph 4of this Part F, and thereafter shall carry out or cause to be carried out, with due diligence, all remedial measures agreed with the Association so as to ensure the proper implementation of the Project in accordance with the IESMP. | Frequency :CONTINUOUS - Finance Agreement :Schedule 2, Section Complied with No Change II.A.F.6 Safeguards | Description :Not amend or waive any provision of the provisions of the IESMP. In the event of a conflict between the provisions of the IESMP, and those of this Agreement, the latter shall prevail. | Frequency :CONTINUOUS - Finance Agreement: Schedule 2, Section Not yet due New I.A Institutional Arrangement, new paragraph 4: Ensure that the Centralized Technical Services Support Unit and the Transp.& Infra. Sector Coordination Division provide support to the Project Support Team on fiduciary and/or technical aspects of Project implementation from January 1, 2020 to Apr 11, 2019 Page 27 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) the end of the Project implementation period, on an as-needed basis. - Section I.B.1 of Schedule II to the Fin. Not yet due New Agreement: The Recipient shall prepare and adopt, by no later than one month after the date this Agreement becomes effective, an updated version of the Program Operations Manual, in form and substance acceptable to the Association, setting forth the guidelines and procedures for the implementation of the Project, incl. progress monitoring indicators . LEGAL COVENANTS2 LEGAL COVENANTS – Samoa Aviation Investment Project Additional Finance II (P169279) Sections and Description OPS_LEGAL_CONVENANT_CHILD_NODATA No information available Conditions Type Description Effectiveness An amendment to the Project Implementation Agreement has been executed on behalf of the Recipient and SAA, in form and substance satisfactory to the Association. Type Description Effectiveness An amendment to the Service Agreement has been executed on behalf of the Recipient, SAA and TAL, in form and substance satisfactory to the Association. Apr 11, 2019 Page 28 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Samoa RESULT NO PDO Samoa Aviation Investment Project Additional Finance II Project Development Objective(s) The project development objective is to improve operational safety and oversight of international air transport and associated infrastructure. Project Development Objective Indicators by Objectives/ Outcomes T B L R E S U L T _ F R A ME _ _ P DO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Indicator one Re-va lidation of Regulatory certi fication of certi fication of APW i n s a fety a nd security a t APW certi fied a ccordance with CAR- project a irports (Text) Pa rt 139. Indicator Two Sta te requirements for s a fety measured by Uni versal Safety Oversight 56.43 41.38 Audi t Programme (USOAP) rea ches global ICAO a vera ge (Percentage) Apr 11, 2019 Page 29 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) T B L R E S U L T _ F R A ME _ _ P DO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Indicator Three Modernization of air tra ffic VSAT or ADS-B No VSAT or ADS-B ma nagement (Text) opera tional Indicator Four Impl ementation of a AU$5 col lected from regi onal safety and security ea ch departing l evy for departing No l evy AU$5 col lected AU$5 col lected AU$5 col lected AU$5 col lected i nternational i nternational passengers pa ssenger (Text) PDO Table SPACE Intermediate Results Indicators by Components R E S UL T I F R A ME T B L O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Component A. Aviation Infrastructure Investments (Action: This Component has been Revised) Na vi gation a nd safety a ids fully 0.00 0.00 0.00 100.00 opera tional (Percentage) Action: This indicator has been Revised Reha bilitation of APW pavement 0.00 0.00 0.00 0.00 100.00 (Percentage) Action: This indicator has been Revised Achi evement of Fire Standards at Ca tegory 8 Ca tegory 9 APW (Text) Apr 11, 2019 Page 30 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) T B L R E S U L T _ F R A ME _ O _ I Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 Action: This indicator has been Revised Component C: Strengthening Airport Operations and Management Capacity Successful i mplementation of No Tra i ning Pl an Tra i ning Plan completed a greed training plan (Text) Component D. Project Management (Action: This Component has been Revised) SAA publ ishes periodic reports on GRM i ncl uding resolution rates Yes Yes (Yes /No) Women participants in ma nagement training a nd ca reer 0.00 10.00 fa s t-track s upport program (Number) Action: This indicator is New Regi stered grieva nces and compl aints responded to within 14 70.00 100.00 da ys (Percentage) Action: This indicator is New IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators M a p p e d Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Regulatory certification of safety and CAR-Part 139 Aligned with PASO CAD/TFSU security at project airports as adopted by oversight schedule. Apr 11, 2019 Page 31 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) CAD, which conforms to applicable portions of ICAO Annex 14. USOAP audits focus on the State's capability for providing safety oversight by assessing whether critical elements of a safety oversight system have been implemented effectively. Audit teams also determine the State's level of implementation of safety-relevant State requirements for safety measured International Civil Aviation by Universal Safety Oversight Audit Organisation (ICAO) CAD/TFSU ICAO Audit End of Project Programme (USOAP) reaches global ICAO Standards and average Recommended Practices (SARPs), associated procedures, guidance materialand practices. The audit protocol is a comprehensive checklist, covering all elements of the State’s safety oversight program subject to the audit. These audit protocols are used as the primary tool for conducting Apr 11, 2019 Page 32 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) the audit. The extent (in percentage) of lack of compliance is determined based on the findings of the audit. Implementing Modernization of air traffic management CAD/TFSU Once Agency Implementation of a regional safety and Executing security levy for departing international CAD/TFSU Once Agency passengers ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators M a p p e d Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Navigation and safety aids fully Implementing Annual through CAD/TFSU operational Agency completion Annual through Rehabilitation of APW pavement CAD/TFSU CAD completion Achievement of Fire Standards at APW CAD/TFSU CAD once Successful implementation of agreed CAD/TFSU CAD/SAA End-of-Project training plan SAA publishes periodic reports on GRM SAA SAA Continous including resolution rates This indicator will measure SAA to record data on the number of Women SAA Human participant numbers for PST to receive data from Women participants in management By Participants who attend Resources Ma Management-training SAA Human Resources training and career fast-track support semester. the dedicated nagement. and career fast-track Management. program Management-training and support program. career fast-track support Apr 11, 2019 Page 33 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) program. Systematic and comprehensive This indicator will monitor SAA, project collection of grievances SAA's efficiency in resolving website, and Every of complaints received Registered grievances and complaints grievances and complaints published SAA and PST. semester. by SAA, and monitoring responded to within 14 days within a limited period, periodic of their time of which is 14 days, to be reports. resolution. consistent with the GCLS. ME IO Table SPACE Apr 11, 2019 Page 34 of 35 The World Bank Samoa Aviation Investment Project Additional Finance II (P169279) Apr 11, 2019 Page 35 of 35