Inception Report Draft - CAAN

Capacity Development of Civil Aviation Authority of Nepal
INCEPTION REPORT (DRAFT)

APRIL 2012
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Capacity development of the Civil Aviation of Nepal Inception Report - DRAFT Page 3 of 65
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Contents
1 2 3 4 EXECUTIVE SUMMARY ............................................................................................................................ 6 BACKGROUND OF THE PROJECT ........................................................................................................... 8 TIMELINE OF DOCUMENTATION ............................................................................................................. 9 ANALYSIS OF CURRENT SITUATION ...................................................................................................... 11 4.1 LEGAL ..................................................................................................................................................... 11 4.2 PLANNING............................................................................................................................................... 14 4.2.1 National Plan For Civil Aviation Development..................................................................... 14 4.2.2 Corporate Business Planning.................................................................................................. 21 4.2.3 Private Sector ........................................................................................................................... 21 4.2.4 Non-Aeronautical Revenues.................................................................................................. 22 4.3 RESTRUCTURING ....................................................................................................................................... 22 4.4 HUMAN RESOURCES TRAINING PROGRAM ................................................................................................. 23 4.5 COMPUTERIZATION................................................................................................................................... 24 4.6 MIS ........................................................................................................................................................ 24 5 METHODOLOGY OF WORK .................................................................................................................. 25 5.1 LEGAL ..................................................................................................................................................... 25 5.2 PLANNING............................................................................................................................................... 29 5.2.1 National Plan For Civil Aviation Development..................................................................... 29 5.2.2 Corporate Business Planning.................................................................................................. 48 5.2.3 Private Sector ........................................................................................................................... 50 5.2.4 Non-Aeronautical Revenues.................................................................................................. 52 5.3 RESTRUCTURING ....................................................................................................................................... 54 5.4 HUMAN RESOURCES TRAINING PLAN ......................................................................................................... 58 5.5 COMPUTERIZATION................................................................................................................................... 60 5.6 MANAGEMENT INFORMATION SYSTEM ............................................................................................ 62 5.6.1 MIS ............................................................................................................................................. 62 5.6.2 Financial Management System ............................................................................................. 64 6 PROPOSED WORK SCHEDULE ............................................................................................................... 65
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EXECUTIVE SUMMARY
Ineco in joint venture with Prointec and ERMC was appointed by the Civil Aviation authority of Nepal (CAAN) to develop the Capacity Development Plan for the CAAN. Technical proposals submitted on 7th February 2011, needed to modify the proposal in order to incorporate the latest development in Nepal in the area of Civil Aviationl. The mandate of the contract signed in January 2012 required developing an inception report of this project within 30 days from the contract start up. The start up of the project was on 6th March 2012. The main task in this project consists on the capacity development and implementation of the public organizations involved in the civil aviation in the country, regulator and operators. The different components of this project are:
Components
1. Legal
2. Planning
3. Restructuring
4. HRDevelopment
5. Computerization
6.Management InformationSystem
2A. National Plan
2B. Corporate Business
2C.Private Sector Participation
2D.Enhancing NonAeronautical Revenue
6A.MIS
6B.Financial Management System
In developing the Capacity Development of CAAN the Terms of Reference highlighted some objectives to be taken into consideration. These are: To review the entire set of laws, rules and regulations applying to the aviation sector. Nepalese legislation is to be benchmarked across the requirements deriving from ICAOs Annexes and documents in order to draw attention to elements that could be missing or are not adequately addressed. In order to the new air traffic forecast, to develop the National Plan for the Civil Aviation development. This document will be a 20 years plan including: o o o The National Air Transport Plan The National Airports Plan The National Airside Plan
To develop the Business Plan of the new organizations To enhance and expand the participation of the private sector, especially in airport facilities/support services. To enhance the non-aeronautical revenues at the airports.
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Capacity development of the Civil Aviation of Nepal Inception Report - DRAFT
To restructure CAAN into the new Organizations (regulator and operator/s) and develop a transition plan in order to implement the new organizations. To define and implement a Staff Training Program, useful, not only for the transition period, but also for the future. To establish the systems & network requirements arising as a result of the restructuring of the organizations. To develop and implement a Management Information System (MIS) into the new organizations, including the financial management system.
Prior to this assignment, the ICAO Safety Audit (USOAP) done in 2009, has defined clearly the principal working areas of this project. The information provided and conclusions outlined in the Report are going to be the base for the first tasks of this project. The regulatory framework will be analysed and amended or changed in order to be compliant with the new international regulatory framework and ICAO regulations and recommendations. The air transport system is something in a continuous development and the gathering information process has been defined in order to clarify the starting point in all different areas of the project. CAAN must continue working in defining the future of air transport in Nepal.
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BACKGROUND OF THE PROJECT 1. Involvement of Asian Development Bank. On May 25th 2010 The Government of Nepal signed an agreement has received financing from the Asian Development Bank (ADB) (Loan N 2581 and Grant 0181-NEP ) to implement the Air Transport Capacity Enhancement Project. AADB's past involvement in the subsector in Nepal focused mainly on the phased development of Tribhuvan International Airport (TIA), which included lengthening of main runway and taxiways, construction of an international terminal building, and expansion of the domestic terminal building. These improvements helped to alleviate congestion, sustain traffic growth, and promote tourism, playing a significant role in supporting the country's economic and social development. ADB's overall strategy in the subsector is to improve domestic and international connectivity in order to support the country's development goal of promoting broad-based economic growth. The Project is in line with continuing ADB assistance with strategic objectives as set out in the country strategy and program continue assistance in the improvement of TIA and strategic domestic airports, continue to support the restructuring and reform of CAAN, and Assist the Government with improving the regulatory framework for private sector participation in the subsector.
2.
the Consultants involvement: the Consultant signed an agreement with the Civil Aviation Authority of Nepal on January 17th, 2012 to perform the Capacity Building Services established in the Terms Of Reference RFP# ATCEP Consultant 2/2009-10. mobilized its consultant team on 6th March 2012.
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TIMELINE OF DOCUMENTATION Description/Technical Accomplishments Initial findings and, if appropriate, updated approach, methodology and work plan Brief details of the work carried out during the previous month (all components), the problems encountered or anticipated, together with the steps Interim Deliverables: 1. Report on the review of the Civil Aviation Act and the CAAN Act (Draft 3 weeks after inception report) 2. Report on privatization options and implications for the legislative review (Draft 5 weeks after inception report) 3. Draft new legislation (First draft June 10th 2012) 4. Detailed regulatory review (Regulations, CARs and guidance materials) (September 10th 2012) 5. Review the proposals for restructuring CAAN as a regulator of civil aviation, and for creating a new state authority to operate the national airports and the air traffic and navigation system (mid October 2012) 6. Draft legislation to establish new state authority to operate the national airports and air traffic and air navigation system (November 30th 2012) Interim deliverables: 1. Inception (July 10th 2012) 2. Working Paper Air Transport (September 10th 2012) 3. Working Paper Airports (November 10th 2012) 4. Working Paper Airspace (November 10th 2012) 5. Draft Report National Plan (January 15th 2013) 6. Final Report National Plan (March 6th 2013) 7. Documents about Second International Airport (non scheduled) Interim deliverables: 1.Draft Business Plan CAAN (June 10th 2013) 2. Draft Business Plan Operators (June 10th 2013) 3. Final Business Plans (September 2013) Interim deliverables: 1.Working Paper Private Sector Opportunities (September 10th 2012) 2.Finantial Analysis (September 10th 2012) Timeframe Month 1 from start of the project Monthly (by the 10th day of each month following the inception report)
Reports Inception Report Monthly Progress Reports
Component 1. Legal Completion Report
Component 2A. National Plan Completion Report
Component 2B. Corporate Business Planning Completion Report Component 2C. Private Sector Participation Planning. Completion Report
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Component 2D. Enhancing NonAeronautical Revenues Component 3. Restructuring Plan. Completion Report
Component 4. Human Resources development Completion Report Component 5. Computerization Completion Report
Interim deliverables: 1.Review of CAANs current non-aeronautical revenue generating activities and identification of additional commercial opportunities (November 10th 2012) Interim deliverables: 1.Inception Report-Restructuring (May 10th 2012) Draft Implementation Plan (September 15th 2012) Draft Transition Plan (December 15th 2012) Interim deliverables: 1.Staff Training Programmes (June 30th 2012) 2. Courses Development (non-scheduled) Interim deliverables: 1.Computerization Concept Plan (June 30th 2012) 2.Technical Specifications (November 15th 2012) 3. User Manuals (March 6th 2013) Interim Deliverables: 1.Inception for MIS (July 15th 2012) 2. MIS Concept Plan (October 15th 2012) 3. Functional Specifications (February 2013) 4. Detailed Technical Specifications (May 2013) 5. User Manuals. (November 2013) 6. Accounting System Review (June 30th 2012) 7. Accounting System Procurement Specification (September 15th 2012) In accordance with ADBs format. Upon Final Project Completion (June 2015)
Component 6: MIS & Finantial Management System Completion Report
Project Completion Report
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ANALYSIS OF CURRENT SITUATION
The analysis of current situation in Air Transport in Nepal included in this document is a general review as provided by the Nepal experts and counterpart staff involved in this project. Following a series of meetings held between the consultants and the Nepal experts and counterpart staff from CAAN and MOTCA, and in order to define the starting point for this project, there are some issues that will modify the schedule proposed on February 2011. 4.1 Legal
The legal framework for civil aviation in Nepal is currently contained in the most part in 2 main Acts and a series of regulations and rules covering most of the functional aspects. A complete list of civil aviation legislation and guidance materials as compiled by the consultant includes the following documents (indicating whether they were available or not to the consultant at the time of preparing this report: Available documents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Civil Aviation Act, 2015 (updated up to 2066) Civil Aviation Authority of Nepal Act, 2053 Civil Aviation Rules, 2052 (1996) Civil Aviation Rules, 2058 (2002) Nepalese Civil Airworthiness Requirements (NCAR) Flight Operations Requirements (FOR) CAR - 2. Rules of the Air, 2008 CAR - 4. Aeronautical Charts, 2009 CAR - 5. Units of Measurement, 2008 CAR - 10. Aeronautical Telecommunications, 2009 CAR - 11. Air Traffic Services, 2008 Manual of Aerodrome Certification Procedures CAAN Manual of Aerodrome Standards, Nepal (MASN) 2008 Exemptions Procedure for Non-Compliances at Aerodrome Aerodrome Inspector Handbook Air Flight Tax Act 2018 Dangerous Goods Handling Requirements 2011 Disposal of scrapped parts guidelines 2009 Draft Air Operator Certificate Requirements (AOCR) 2012 Personnel Licensing Requirements 2010 Airport Certification Regulation 2061 (2004) Advisory Circular 02. Guidance for SMS for Aerodrome Operator International Air Services Transit Agreement, 1994 Nepal Airlines Corporation Act. 2019 (1963) Procedure for Recording Birds Strike Report (2010) State Safety Programme (SSP) Nepal 2011
Documents not available (at this moment) 1. 2. 3. Civil Aviation (Investigation of Accident) Rules, 2024 Airport Charges Rules, 2038 (4th Amendment, 2061) CAAN Financial Administration Regulations, 2057
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4. 2063) 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.
CAAN Employee's Facility, Service and Condition Regulations, 2056 (Amendment Aviation Security (Management) Rules, 2064 The Aviation Policy, 2063 (2006). Designated Check Pilot (DCP) Manual Air Traffic Control Manual Search and Rescue Manual National Aviation Security Program Airport Emergency Plan (AEP) Flight Operation Inspector Manual (FOI) Airworthiness Inspector Manual Civil Aviation Medical Manual Ground Handling Directives Airport Charges rules 2038 AFIS (Aerodrome Flight Information Services) Manual
This list of documents evidences that Nepal has a considerable set of regulatory instruments in the field of civil aviation, but does not evidence where the shortcomings can be found. ICAOs USOAP Audit Report In the final report of ICAOs USOAP Audit the authors have pointed out the areas in which they found the current situation to be lacking. Appendix 1 of the Report presents the recommendations starting with a general prescription to revise Nepals basic aviation legislation, summarized as follows: Nepal should revise its legislative framework and the supporting regulations to ensure that they consistently address all the articles of the Chicago Convention as well as legal instruments ratified by Nepal, for the scope of aviation activities conducted therein and related safety oversight functions. To that effect: i. the Civil Aviation Act, 2015 (1959) should be amended to address the State's obligations with respect to the Chicago Convention and its pertinent articles related to safety oversight, as well as legal instruments ratified by Nepal, including Article 83 bis, and give effect to their proper implementation; the CAAN Act should be amended to ensure its consistency with the scope of safety oversight activities and the authority vested in the Director General of the CAAN as Chief Executive of a regulatory agency and should provide for the delegation of authority to CAAN inspectorate staff to carry out identified and assigned safety oversight functions; and the CAR 2002 should be amended to facilitate the implementation of an effective safety oversight system enabling the timely implementation of all ICAO provisions through a regulatory framework promulgated by the Director General of the CAAN.
ii.
iii.
In subsequent recommendations the Appendix lists a considerable number of regulatory measures to be adopted in the fields of: Primary aviation legislation and civil aviation regulations Civil aviation organization Personnel licensing and training Aircraft operations certification and supervision
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Airworthiness of aircraft Aircraft accident and incident investigation Air navigation services Aerodromes
Meeting the requirements of the Audit Report will necessitate review of all the legal texts now in effect, as well as those which are being prepared, with the basic aim of introducing any changes that may be needed. The review should, nevertheless, look also forward beyond current ICAOs requirements and allow for the future development of a modern civil aviation sector in Nepal.
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4.2
Planning
Nepal has no long term plans involving the air transport sector as a whole. 4.2.1 4.2.1.1 National Plan For Civil Aviation Development Air Traffic Demand
The last Air traffic forecast in Nepal is tabulated below:
4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Aviation sector in Nepal has shown a tremendous growth in air travel demand and in the number of flights after the country adopted a liberal sky policy since 1992. The upsurge in Nepalese immigrant traffic to Malaysia and the Gulf region especially from 2003 also contributed to the high growth in air travel demand. International air traffic has crossed 2,7 million passengers in 2011, and the recent growth trend has been most impressive.
International Air passenger Movement in Nepal
AirPax.GrowthRatesin%
25,00 20,00 15,00 10,00 5,00 0,00 2003 2004 2005 2006 2007 2008 2009 2010 2011
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The main gateways for air travel from Nepal are still the airports in India (Delhi mainly), Gulf region (Doha, Dubai, Bahrain), and Thailand. Emergence of new budget airlines from India and the Gulf region has contributed to their dominance in the market. 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 11,04 6,88 5,71 3,74 5,63 3,82 4,34 1,47 3,03 1,85 1,35 1,12 0,27 18,40
31,36
Nepal'sMainAirTravelGatewaysin20102011
On the domestic front, there has been equally significant and consistent growth in air traffic demand, especially the increased number of flights by small aircrafts. In 2011, the seven fixed wing airlines and five helicopter operators together carried 1.58 million passengers from Kathmandu airport and similar number at the 34 operating domestic airports in Nepal. The leading carriers are Buddha Air and Yeti Airline about 72% of domestic air passenger traffic.
DomesticAirlineSharein2011
Buddha Yeti Agni Tara
Buddha 43.6% Yeti 28.4%
Guna NepalAirline SitaAir Fishtail MountainAir AirDynasty
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4.2.1.2
Air Transport
Bilateral: Nepal has signed bilateral air service agreements with 36 countries, the latest one being the agreement with Turkey signed on September 24, 2010. This provides for 5.7 million seats per annum to and from Nepal. However, not even 40% of this capacity is being utilized by the operating airlines so far. The signing of a letter agreement with India last year that multiplied seat provision five times to 30,000 seats per week and unlimited air cargo flights between India and Nepal has ben a milestone in Nepalese civil aviation. Airline Operators: Twenty-nine international airlines are presently operating 284 schedule air services from Kathmandu to some 22 cities in Asia and Europe. Five new international airlines started their air services to Kathmandu in 2010 (Kingfisher, Oman Air, Buddha Air, Spice Jet and Indigo Air). Buddha Air started flights to Lucknow (India) from January 2011 and to Varanashi (India) from March 1, 2012. RAK Airways is the newest airline operating services to Kathmandu from February 15, 2012. Among the other new airlines proposing services to Nepal are Turkish Airline from Istanbul (October 2012), Air Lankan from Colombo. Thus, the number of international airlines operating air services from Kathmandu has reached 29, and the number of flights they operate increased to 284 flights per week, thereby producing some 47,523 seats for passengers and 914 ton capacity for cargo movement from Kathmandu each week. In the last one year, five new airlines (namely, Buddha Air International, Shree Airlines International, Akashbhairav Air International, Goma Air and Skytech Heli Services were licensed to operate air services and Air Operator Certificates (AOC) have been issued. Three of them are fixed wing operators and two are helicopter companies. Under the policy to access remote areas, single engine fixed wing aircraft and helicopter operations have been facilitated to operate passenger and cargo services in remote mountain areas of Nepal. Out of the 86 aircrafts registered in Nepal, 69 aircrafts are in operational condition. This includes 46 fixed wing aircraft and 18 helicopters. On the aviation sports side, five of the eight companies who have acquired Air Operator Certificate (AOC) are operational. For the promotion of tourism through aerial sports and entertainment activities, aviation sports activities have been extended beyond Pokhara to Kathmandu, Bandipur and other touristic areas of Nepal.
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4.2.1.3
Airports in Nepal
At present there are 54 airports including six under construction. Among these airports, 34 airports are operational with regular air services: International Aiport. Tribhuvan International Airport in Kathmandu. Domestic Hub Airports. There are 4 regional Airports: Biratnagar Airport, Pokhara Airport, Bhairawa Airport and Nepalgunj Airport. Other Domestic Airports. There are 36 airports, only 29 in operation.
There is a new project for a second international Airport at Nijgadh. Nepal is a mountainous country and most of the areas in western side are not linked by road, so the air transport is the only mean of transportation. The Government has been demanded to build new airports because of social connectivity. Maintenance of many domestic airports is problematic and new airports are being built under political pressure. Some strict criteria are needed for adding new airports. In this aspect, CAAN Board has decided handing over the operation and management of some 7 remote area airports in western Nepal to the local community (district development committee) and the concept is in the process of government approval. Tribhuvan International Airport Significant progress has been made in the airport recently: Overlay of runway and taxiway One more parking bay has been added o make a total of 9 parking bays for jet aircrafts. Additional baggage trolleys have been arranged to facilitate international passengers. Arrival Walkway and sterile zone after internal security have been extended for 350 passengers. A separate helicopter parking area has been operational for up to 13 helicopters. Improvements have been made in the floor, wall and the electrical systems, construction of Visitors Deck, Departure/ Arrival/ Passenger Enclosure and reconstruction of main entrance gate have been completed.
Now, under a loan and grant contract between Nepal government and Asian Development Bank signed on May 25, 2010, a loan of US$70 million and grant of US $ 10 million will be available for undertaking Priority 1A works in the first phase of TIA Master Plan 2026 in order to improve the capacity of air transport and flight safety in TIA. In this context, a supplementary investment agreement has been signed between CAAN and the Ministry of Finance, government of Nepal for US$ 70 million loan for infrastructure development and US$ 10 million as equity capital investment for Detailed Design Consultant and Supervision works. Under this program: Runway extension by 300 meters towards the south Install center line light on the runway Install new approach light of category I Construct a domestic terminal building of 10,000 square meters 750 meters long parallel taxiway for air service operation as per ICAO Code E,
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Three link taxiways of total 797 meters New Apron of 515 x 152 m2. A New Hanger site to relocate Nepal Airlines and Army hangers to the east of the runway. Reconfigure and refurbish international terminal building. Install Simple Approach Light to the north of the runway Installation of ILS Localizer in the south Installation of VCCS/VHF Communication in Operations building Install weather related equipments Additional foam tender to upgrade Fire Fighting and Rescue services of the 9th category Establish sewage Treat Plant, establish drinking water processing center
In addition to the above, the loan and grant program for TIA will also cover some works at Simikot airport, Rara airport at Mugu and Lukla airport. Pokhara Airport Pokhara Regional International airport is one of the national high priority projects in Nepal. 34 years ago Nepal Government acquired land of 158 hector for regional International Airport. This site is 4 KM far (east) from existing Pokhara airport and potential for 2500 meter length runway and can be constructed to ICAO 4D requirement. Government of Nepal is willing to construct this airport from Chinese Exim Bank Loan. For that CAAN has published a notice for Engineering, procurement and Construction (EPC) contract Tender from Chinese eligible bidders on February 9, 2011. The last date of tender submission is extended to April 24, 2012. Some ongoing projects to allow direct flights to Lucknow in India at existing Pokhara Airport: International Departure/ Arrival halls and a separate Arrival hall for domestic flights. Taxiway Loop Isolated Parking Position
Gautam Buddha Regional International Airport An agreement has been signed between Nepal Government and Asian Development Bank for US$28 million loan and US$6.41 million grant for the development of Gautam Buddha International airport under South Asian Tourism Infrastructure Development project to help develop tourism in Lumbini area and to diversify congestion at TIA. Currently Gautam Buddha Airport (GBA) is operated as a domestic hub airport. The length of existing runway is 1524m and is 30m wide. Government of Nepal has received a US$28 million loan and US$6.41 million grant from ADB through South Asia Tourism Infrastructure Development Project (SATIDP) for upgrading the GBA to Regional International Airport. Financing agreement between ADB and Finance Ministry was signed on April 25, 2010.
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Design and Supervision consultant was mobilized from September, 2011 and right now they are engaged on design works. Procurement process also has started on January 2012 for prequalification of contractor for civil works. Submitted prequalification applications are under the evaluation. Probably the civil works contractor will be mobilized on October, 2012. Project Completion date will be 2015. Main activities are: New 3000 m length runway parallel to existing runway towards south New international aircraft parking apron New international terminal building in existing unfinished one storied building (vertical and horizontal expansion) Expansion and refurbishing of existing domestic terminal building New Control Tower Building New Customs and Cargo building Expansion of CFR building Interior roads improvement Diversion of Ghagra Khola Chainlink fencing around newly acquired land Water supply, storm water drainage and sewerage system improvement. Communication, navigational equipments installation including VOR / DME, ILS, airport lighting and others CFR, X ray, security and meteorological equipments
National Airports Civil Engineering Division is managing 3 mega projects and 40 airport projects with strength of only 12 engineers. So, specialized human resources are not sufficient in this area: For the improvement of Simikot airport, land acquisition and runway black topping works are initiated. Similarly, black topping of runway, taxiway and Apron at Tumlingtar airport are being taken up. Efforts are made to make Rajbiaj airport operational again. Flight operation at Manamayarai Khanidanga airport at Khotang district has started after completion of runway. Simple Approach and Airfield Lighting works have been completed at Nepalgunj airport. Land acquisition, security chainlink fencing have been completed at Manang airport and black topping of runway, taxiway and Apron has been started. Works on Parking Apron extension at Surkhet airport for Fixed and Rotary Wing aircrafts are progressing. New terminal building, control tower, office building works at Dhangadi airport have been contracted out. Reconstruction works of airport terminal building/ tower, Police residence and staff residences at 10 domestic airports (Bhojpur, Phaplu, Lamidanda, Dolpa, Rukum (Salle), Rukum (Chourjhari), Bajhang,Jumla, Bajura, Sanfebagar), damaged during the period of conflict. Improvements in runway at Taplejung airport has started. Construction of terminal and tower buildings at Khanidanda (Khotang), Thamkharka (Khotang) and Kangeldenda airports. Construction of Parking Apron area and improvement of runway orientation and gradient have been started at Rura (Mugu) airport. Construction of Partial parallel runway at Biratnagar airport has been started to improve the runway capacity of the airport.
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Second International Airport In 2007, Government of Nepal decided to build full flagged Second International Airport (SIA) in Bara, Nijgadgh through BOOT Scheme. One Korean private company conducted detail feasibility study and submitted a proposal to Nepal Government through BOOT scheme. This report is under study in the Ministry of Tourism and Civil Aviation. Decisions on this project will affect severely to the Capacity Development Plan of the Civil Aviation Authority of Nepal.
4.2.1.4
Air Navigation
Air Traffic System (ATS) The most important facilities for ATS in Nepal are: Area Control Center in Kathmandu. Control Tower in TIA. Radar in TIA 5 VOR. Kathmandu, Biratnagar, Simra, Bhairhwa and Nepaljung Airports. DME at Pokhara Airport.
The most important issue to solve is the automation of the systems and the training, specially the refreshing training, every year or two years the ATC controllers must have some refreshing training. Communication, Navigation and Surveillance (CNS) b) Communication. All the facilities and equipment are being renewed. Ending 2012, everything might be finished. Easter Nepal is going to have new Radar. In a few weeks CAAN will try to look for the location. Western Nepal has some coverage problems, because of the geography. c) d) Navigation. Some improvements are coming also in this area. Surveillance. There are two different plans to replace the radar system. 1. 2. ICAO project Japan Airport Consultant Project.
There are some other issues according to the aircraft operation. Protection of the ATS/CNS installations In order to operate the airports during the night, some noise maps must be developed. Improve the obstacle control, improving the process between CAAN and the municipalities.
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Some new airport infrastructures are coming and the man power into these areas is not enough to attend all the different areas. The recruiting procedure in CAAN takes longer than constructing process; new staff must be well trained. Coordination between MOTCA future plans and CAAN capacity development plan.
4.2.2
Corporate Business Planning
There is no corporate business plan nowadays in the Civil Aviation Authority of Nepal. There are Annual Reports including Cash-Flow and Balance Sheet. These reports are not for individual airports, only consolidated data for the global CAAN. Regulator, Airport operator and Air Navigation System operator are not separated into the Balance Sheet. Annually, the Ministry of Tourism and Civil Aviation provides a budget for CAAN. CAAN doesnt control the revenues generated by the Air transport system. According to the assigned budget, CAAN must develop new infrastructures and maintain the existing ones, including operational costs. There is no clear definition about the aeronautical and non-aeronautical revenues. Depending on the different informers, non-aeronautical revenues can go from 5% to 25%. Last year the Net Profit after taxes was close to 27% of the revenues, but this is something we must analyze in a longer period, in order to know if the air transport system can go alone. A committee of Ministry of Commerce and Supplies organized to study prevailing cargo rates at Dhaka and New Delhi airports has completed and submitted their report to the Ministry in order to review air cargo rates and charges as per an agreement between TIA Civil Aviation Office and Nepal Transit and Warehouse Management Company Limited for the operation and management of Air Cargo complex at TIA. According to the current accountability system, everything is controlled by hand. They need to improve this area using a Financial Information System. They must improve Man power skills in this area: o o o IT and Computerization skills of the staff involved in finance area. VAT legislation. Financial Information System
4.2.3
Private Sector
Actually, the Aviation Policy, 2063 (2006) introduces the participation of private sector into the aviation sector.
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In developing air transport infrastructure structures, the investment of native/foreign private sector will be open on the Build-Operate-Transfer (BOT), Operate-Transfer(OT), Build-Own-Operate-Transfer)BOOT) basis or any other appropriate basis. Private sector participation in aircraft operation, training, repair and maintenance and passenger service provider industries: o International airlines. Up to 80 percent o Domestic airlines. Up to 49 percent o Flying School. Up to 95 percent o Repair and maintenance. Up to 95 percent of the institutions The Private sector is also going into the airport sector, not only building the airports, but also operating them in the future. (Company Act) The different Methods included in the Nepal Legislation are: o Build and Handover o Build, Operate and Handover o Build, Holding Ownership, Operate and Handover o Build, Handover and Operate o Lease, Operate and Handover o Lease, Build, Operate and Handover o Developed, Operate and Handover If the private participation goes into the airport operation, it will be necessary to start with some organizational and regulatory changes in order to avoid competence problems between CAAN (regulator and operator) and private companies. Private sector participation in managing Lukla, Biratnagar and Surkhet airports are under study. SIA project is looked after by the Ministry of Civil Aviation, The construction and operation by a private company of the Second International Airport in Nepal will bring some regulatory and organizational changes into CAAN. 4.2.4 Non-Aeronautical Revenues
There is no clear definition about the aeronautical and non-aeronautical revenues. Depending on the different information, non-aeronautical revenues can go from 5% to 25% of total revenues. It is necessary to clearly define the non-aeronautical revenues, explore new areas of nonaeronautical revenues so as to facilitate air transport development.
4.3
Restructuring
Currently, CAAN is taking different roles into the air transport: o o o o Regulator Inspector Airport Operator Air Navigation Operator
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In order to be compliant with the international best practices and in order to let the private sector go into the airport and/or air navigation operation, CAAN must be restructured. The restructuring process will bring us many regulatory, and organizational changes. The new Organizations must be economically independents and compliance with the safety international regulation of this type of organizations. A new salary policy must be developed in the different organizations according to their new roles and responsibilities. Nowadays, this area is not well defined. In TIA there are some people with a lower organizational level than other and a higher salary. The current recruitment process is not solving the problems of staff in CAAN. It is difficult to have well trained personnel in order to substitute people in retirement. Now we havent got any information about the restructuring plan of CAAN. 4.4 Human Resources Training Program STAFF STRENGHTH IN CAAN APPROVED PERMANENT POSTS EXISTING N OF EMPLOYEES CAAN Head Office Tribhuvan Intl Airport Civil Aviation Academy/Other Offices Currently Working Manpower
1065 143 429 298 870
Currently CAAN is close to 200 people under their defined organization. The Civil Aviation Academy is providing basic training in several areas to the CAAN staff, but for Advance Training the staff are sent abroad and this is very expensive for CAAN. There are only 12 trainers into the Academy, but sometimes they use external trainers also. The courses are not defined into the Academy; they contract external consultants to develop them. The Academy is using ICAO Annexes for training material. The Civil Aviation Academy provides training not only to CAAN staff, but also to external staff. The Academy has not revenues from CAAN students neither from Police students. They only have some revenues from the external students (airlines, etc.) The Academy has problems with IT, including computers and equipment for the courses. The Academy doesnt have a Plan to develop the courses that CAAN staff is demanding. The recruitment process, joined to the difficulties to have trained staff in CAAN is bringing some problems in specific areas as fire and rescue, ground safety and IT.
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4.5
Computerization
Actually, CAAN has no Computerization Plan. The computers in CAAN are old and people are not trained to use them. More than 90% of CAAN staff has problems using computers. 4.6 MIS
Actually, there is no Management information System in CAAN Headquarters. Mostly information is written by hand and there are not soft copies of them. An agreement with SITA has been signed to operate Common User Terminal Equipment (CUTE) system in the check-in area of TIA. Required software and hardware are ready for their operation soon after a MOU with airline operators. There is no Financial Information system in CAAN. They only use Excel Program from Microsoft Office Software.
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5 5.1
METHODOLOGY OF WORK Legal
As a result of the meetings held during the days 27/03 to 30/03 The initial formulation of the work program has been revised in order to prioritize certain tasks which were considered as the most urgent by CAAN. In the meeting held with representatives from the Ministry of Tourism & Civil Aviation the new priorities were also ratified as most befitting the current situation in Nepal regarding civil aviation. While the final aim of the project is to fulfill the requirements arising from USOAP Audit Report, it was agreed that work should concentrate first in dealing with the issues related to the Civil Aviation Act and the CAAN Act. Preliminary interest has shifted from the in depth review of the current regulatory instruments to the definition of key policy issues. This implies determining the best strategy to approach the review of both Acts taking into account: specific problems to be resolved, need to insure growth beyond ICAOs requirements, need to reorganize the civil aviation administrative setup in order to accommodate the separation between regulatory functions and service providing functions, privatization of service provision introduction of private initiatives.
Given this context, the agreement was that the priority for the legal consultant should be to prepare a report on the review of the current acts, in order to formulate proposals regarding the available options and the most promising route to follow in view of current circumstances in Nepal and taking into consideration foreign experiences on the matter. The Ministry of Tourism and Civil Aviation mentioned also the need to take into account the work that is currently underway on two new acts in the field of civil aviation, one on air transportation and the other on air carrier licensing. The contents of such acts will have to be considered in order to either integrate part in the new civil aviation acts or, at least, to guarantee the highest degree of coherence among all the legislation governing civil aviation and related topics. The report would focus on: Scope of the revised legislation: the baseline is to cover all ICAO Conventions requirements, but should provide the framework to go beyond basic requirements. Should the two existing acts be consolidated into a single text?: alternatives, pros and cons. How detailed should the provisions of the act or acts be? Dealing with the requirements derived from the need to separate regulation and operation. What should be revised in the CAA Act?, what in the CAAN Act? Impact of the introduction of private initiatives How are air transportation and carrier licensing regulated in other systems? Pros and cons of including such topics into the new Civil Aviation Act.
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After discussion with CAAN, the report would result in the preparation of a presentation to raise awareness of these issues among higher government officials and political representatives. The first report would be shortly followed by a second paper on the issue of privatization, exploring available options to introduce privatization before the CA Act and the CAAN Act are revised. In these context the term privatization designates not only the process of entrusting some of the operations currently performed by CAAN, but also the introduction of new operators, as is the case with the proposal for a new private initiative airport which now under consideration. The main issues to explore will be: Can privatization take place without reviewing the existing acts? What legislative/regulatory changes are required in order to introduce privatization? How far can privatization go without changing the CAA and CAAN Acts? What are the probable repercussions of privatization on the current structure and financial system? Can privatization take place without prior separation of regulatory and service provision functions? How do these issues apply to the establishment of a new airport under private operation?
The paper will analyze these issues in the light of current legislation in Nepal (both aviation legislation and investment legislation) and taking into account the experience in other countries. Once the debate on the review of the current Acts is well under way, the main focus of the consultant will shift towards the in depth analysis of the regulatory system, in order to determine what specific elements of the current rules and regulations have to be modified in order to meet the requirements of the USOAP Audit Report as well as the future development and improvement of the civil aviation sector. This will require the examination of all the regulatory documents (including manuals and other guidance materials) and detailed interviews with the persons responsible for the different areas, in order to pinpoint current shortcomings and possible improvements beyond the strict limits of the Audit Report. In this regards it is worth mentioning that initial meetings with those responsible for ATM, CNS and ground safety, held at Tribhuvan International Airport, expressed their concern for the lack of effective regulation of implementation in areas like obstacle proliferation, wildlife control or coordination with local authorities. Some concern was also voiced regarding the need to approach the noise issues which might hamper the full operation of the airport in the future, especially at night. In many of the meetings the consultants attention was drawn also by the participants to the issues deriving from the current organizational framework and budgeting, staffing and training shortcomings. Such concerns will be the focus of the consultants work when reviewing the proposals for restructuring and possible privatization and will be the object of specific reports and proposals.
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SCHEDULE PROPOSAL Taking into account the priorities arising from the first set of interviews with CAAN and Ministry of Tourism & Aviation officials, the consultant considers that the project tasks concerning legal and administrative or institutional issues could be organized according to the following schedule. Report on the review of the Civil Aviation Act and the CAAN Act: First draft to be submitted within 3 weeks from the date of the inception report. The report could be refined by means of e-mail discussion and would be personally debated in interviews which could take place during the week of May the 14th. Completed report and presentation by May the 18th or 19th at the end of the legal consultants visit to Kathmandu.
Report on privatization options and implications for the legislative review: First draft submitted 2 weeks after the report on the review of the Civil Aviation and CAAN Acts. Discussion and finalization of the report would take place during the legal consultant visit to Kathmandu during the week of May 14th.
Draft new legislation: At the request of the CAAN the consultant would prepare draft legislation embodying the results of the reports and the discussions sustained in Kathmandu. Such draft legislation would include the detailed outline of the future act or acts, and an indication of the contents of each article. Since the actual acts will have to be drafted in Nepalese, the consultant considers that special consideration should be given to concepts rather than to specific wording. Such draft legislation would be submitted by the consultant during the first week of June and refined via e-mail discussion over the following weeks.
Detailed regulatory review (Regulations, CARs and guidance materials): The purpose of the review is to pinpoint all possible differences with ICAOs SARPs and to decide the best way to meet the requirements of the USOAP Audit Report, as well as those improvements that may be considered necessary or convenient for future development. Report on the review and proposal for review of all regulatory documents, to be completed by the end of August. The report would be refined both by corresponding with CAAN officials and in the course of interviews to be held in Kathmandu during the first week in September.
Review the proposals for restructuring CAAN as a regulator of civil aviation, and for creating a new state authority to operate the national airports and the air traffic and navigation system
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Information on such proposals would be provided to the consultant during the visits to Kathmandu to take place in the months of May and September and by any other means at such time as CAAN considers convenient. Reports on such proposals will be provided a the demand of CAAN MOTCA and meeting to discuss them and outline legal requirements for their implementation could take place in mid October.
Draft legislation to establish new state authority to operate the national airports and air traffic and air navigation system To be submitted before the end of November and subsequently refined before the end of the year.
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5.2
Planning
The Consultant is going to analyze the current situation of air transport in Nepal, we have to know the existing plans (short term and long term), the working projects (new international airport, others), the agreements in this area with any other country, company or institution and of course the existing infrastructures dedicated to air transport (airports, air navigation infrastructures and equipments, airlines, handling agents, industry, etc.) Based on an Air traffic forecast, including not only international, but also national passengers on different airports, The Consultant is to develop the National Plan for Civil Aviation Development (NCADP), including the air transport, the airports, the airspace and air navigation and of course the paper of the civil aviation administration according to all these actors. According to the nature of this project, the Consultant is to develop a Corporate Business Plan, including near-term operations of CAAN and a five year initial operating period for the new organizations (the new Civil Aviation Authority of Nepal and the new Airports and Air Navigation Services Authorities). On the other hand the Consultant analyses the possibilities of the private sector into the NPCAD, via outsourcing of services, concessions, engineering services, etc, with a cost & benefit analysis of the proposals and risks involved. Once we finish with the air transport sector, we move to analyze the non-aeronautical revenues generating activities to develop a plan that includes additional commercial opportunities. 5.2.1 National Plan For Civil Aviation Development
AIRTRANSPORT CURRENT SITUATION FUTUREAIR TRANSPORT CAPACITY
AIRTRAFFIC DEMAND
NATIONALPLANFORCIVIL AVIATIONDEVELOPMENT
Reviewofexisting plansandregulation Reviewofexisting infrastructures Reviewofexisting Airtransportmarket
AirTrafficForecast: Passengers, Aircraftmovements andcargo International National
1.NationalAir TransportPlan 2.NationalAirports Plan 3.NationalAir SpacePlan 20year developmentPlan
a)
Existing Plans and Regulations.
The Consultant reviews the Civil Aviation Sector Study (ADB TA 4772-NEP) and analyses the current legal and regulatory framework international and national governing the market entry, regulation and operation of the air transport in Nepal, with the aim of verifying deficiencies that could eventually jeopardize the development of the air transport in Nepal. (tasks 13 &15)
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This analysis includes laws and other legal texts governing Air Transport, in order to understand the existing rules, and check their suitability for a smooth and plausible development of air transport, airspace and airports, thus providing the regulatory significance these rules have for the Nepalese economy. (task 16) The Consultant takes into account international regulations (ICAO, IATA) applicable in Nepal, as well as the organizational structure of the Civil Aviation Authority, in order to understand the scope and enforcement. b) Existing Infrastructures and Equipments
The Consultant is to identify all the infrastructures related to air transport existing in Nepal, compiling all the information according to the current situation and actions defined. The Consultant will include airport infrastructure and air navigation infrastructure and equipments. c) Existing Air Transport Market
The Consultant is to identify the current situation of the major domestic and international airlines operating in Nepal: (task 17) Profile & Ownership Fleet & Route network Financial situation Agreements with other carriers. Membership of global alliance Business strategic & Market positioning Traffic volumes Personnel
The Consultant shall also identify other agents in air transport chain as handling agents, cargo agents, suppliers, manufacturers, maintenance agents, catering, etc. 5.2.1.1 Air Traffic Demand
The objective of this section is to create an updated traffic forecast based on: Nepals current and estimated air transport market (passenger, passenger and freight), air traffic forecast for Tribhuvan International Airport (TIA), the establishment of future infrastructure requirements, the identification of potentially profitable domestic air service routes in the future (task 18), the evaluation of the expansion of international services and the entry of new international carriers in the international market. This forecast will form the basis for revenue estimation in Corporate Business Plan. The necessary hypothesis to make this forecast, including historical traffic and its probable future behavior, is formulated. It is essential to design future traffic scenarios so as not to have only one forecast, but several, according to the evolution of the initial hypothesis. Additionally, the more suitable forecasting tool shall be selected for the conditions of the airport and depending on the data availability. The Consultant has extensive experience and know how in air traffic forecasting. Programs as SPSS are commonly used as a tool to implement all the assumptions and
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variables which affect the evolution of traffic figures. The versatility and strength of these statistical tools provide our forecasting experts with the instrument for selecting the most suitable methodology for the Airport depending on the characteristics of the data and variables that define the airport performance. All this knowhow and top notch techniques shall be applied for the development of the air traffic forecast for Tribhuvan International Airport (task 14), as well as the other airports included in this study, in which case the methodology for national airports with a few movements per year is going to be different and will be a part of a global traffic forecast inside the country. The methodology to calculate the air traffic forecast of the principle Nepalese airports will be: Socio economic data: the Consultant is to analyze the economic and social aspects of the Nepals economy, which sustains the air transport market, including tourism and demographic data (demographics, income per capita, GDP by economic sector that may affect air traffic, emigration, foreign trade, foreign investments, tourist arrivals, price of oil, etc). Our approach includes data collection to/from meetings with Nepals authorities on Civil Aviation, Tourism, Airline associations, and tourism associations and economic studies from the World Tourism Organization, IATA, Airbus, Boeing, and Airports Council International- ACI should also be considered. Available forecast assumptions might be used in the development of economic context. Historical analysis of traffic: the Consultant is to analyze the historical traffic for passengers, aircraft movements, cargo and mail, through the statistical data collected. Analysis of primary data: In this section, the segments of demand are defined, both passenger and cargo operations and taking into account such factors as the reason for travel (tourism, business, general aviation etc.). The characteristics of travel, practice costs, imports / exports, etc.
The forecast of demand for passenger, aircraft, cargo and mail. (tasks 17 & 18)
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5.2.1.2
Strategic Analysis
Once CAAN approves the air traffic forecast, the Consultant begins to evaluate the measures that have to be developed for the forthcoming 20 years, which are translated into the following plans: National Air Transport Plan National Airports Plan National Airspace Plan
All these plans will be developed in an only aspect, to modernize, adequate and guarantee the safety and capacity of the air transport in Nepal on a sustainable environment (economically, technically, environmentally and socially). At this point the Consultant will be prepared to do a complete SWOT Analysis of the current situation of the Nepalese Air Transport. The objective of the SWOT analysis is: The assessment and exploitation of market opportunities The minimization of impacts from threats affecting the air transport. Provide actions to convert weaknesses into strengths Promote the strengths of the Nepals air transport system to differentiate it from other neighboring countries. We will use this part to develop no only the National Air Transport Plan but also the whole NPCAD.
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5.2.1.3
National Air Transport Plan
PHASEI Current Situationof AirTransport

AIRTRANSPORT INDUSTRY CONSTRAINTS CONTROLS STRATEGYOFAIR TRANSPORTMARKET (DEMAND)
PHASEII Strategic Analysis
PHASESIII&IV Strategic Planning
DEVELOPMENT POLICY SWOT ANALYSIS STRATEGIC PLAN
NATIONAL AIR TRANSPORT PLAN
On the basis of the previous phases, the Consultant is to draft a Policy on the Development of Domestic and International Air Transport. This policy contains the following tasks: (29) Overview Vision Objectives of the policy / Open skies policy Tariff policy Social objectives and minimum service requirement Competition policy and method of entry for private operators Airline license Domestic and regional operations International operations Market access Promotion / Development of Aviation Sector Aviation security & Aviation safety regulation and investigation Government taxes and duties Commercialization of airports Import of aircraft Aviation support services Airport charges, Taxes & Duties on Import of Aviation Related Equipment Air traffic services Human Resource Development Consumer protection Aviation and sustainability Implementation of Policy 1. Airlines
In the first place, the Consultant will be carry out a set of interviews with the major domestic and international airlines operating in Nepal in order to gather information of the air carrier and to discuss business strategies (new routes and frequencies, future fleet, etc), and air traffic forecast.
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Then, the Consultant develops different scenarios for the future evolution of the domestic air services transport infrastructure, defining its fleet, route network, and size of the industry, unconstrained by existing airport characteristics. (task 21) Each scenario is analyzed against agreed upon policy objectives and development criteria, in order to develop a recommended strategic approach to the creation of a sustainable national air carrier operation in order to serve domestic and international destinations where feasible. (task 22) 2. Regulations
The international character of air transport also requires international framework, which defines a minimum set of regulations, common to all countries. Likewise, the defense of trade interests leads to the realization of private agreements between two or more nations, on the most important aspects of transport, not covered by the general rules. The regulation of international air transport services comprises both multilateral and bilateral agreements involving Governments and airline companies. The international and national civil aviation legislation in Nepal is derived from the Chicago Convention 1944, and the first action is to review the legal instruments applied to the market entry, regulation and operation of the air transport in Nepal. Assess the legal and regulatory environment for foreign and domestic private provision of air transport on domestic routes, and the constraints. 3. Air services agreements
The transition from a primarily bilateral regime to an increasingly multilateral regime raises intricate issues with solutions not always straightforward. For this reason, the task 19 is very important. Due to the shape and size of the air transport the systems can be affected by governmental decisions, notably those determining the type and extent of economic regulation of airlines. The task will be initiated with the gathering of the entire set of air services agreements held between Nepal and other nations, in order to review the legal authority of these ASAs and the conditions applied. For that, it will be necessary to review the following issues, among others: Capacity, double approval of tariffs, traffic rights, and routes of specific cities being served; and Carriers operating the agreement traffic rights Access to the air transport market (entry market): a route is determined by the points (cities) served by an airline and therefore effectively represents the market of that airline. Typically, Governments agree bilaterally on the routes on which traffic will be carried, often involving one or more specific gateways in the home country and one or more gateways in the foreign country. Depending on the type of ASA, the number of routes or points can be limited or unlimited. Charter rights can be included. Fifth freedom right (or beyond rights).
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Designation: ownership and control criteria (a designated airline is to be substantially owned and effectively controlled by the Designation State or its nationals). Capacity: a quantitative measure of the supply of an air transport service, usually expressed in terms of aircraft, passenger seats and/or units of weight or space, and frequency of a particular air service. Controlled capacity and frequency or not. Reciprocity or equal and fair opportunity to compete. Tariffs: pricing policies. Tariff agreements and system of interlining. Double approval of tariffs or double disapproval of tariffs. Tariffs refer to cost-effective.
This process will be completed with a set of meeting with senior government staff to discuss the limits and conditions imposed on foreign carriers and Nepalese carriers, like capacity, traffic rights, tariffs, access to the market, designation, etc. In order to determine where apparent limitations and conditions might inhibit the further development of air transport links or the development of services by Nepals carriers (task 19). And, finally, (task (28) advises MOTCA and CAAN on policy and strategy for international bilateral negotiations, such as maximization of the value of freedom rights, and appropriateness of open sky agreements, and the potential for development of additional international airport hubs, and their effect on the financial performance of TIA. For that, the Consultant will analyze the latest regional trends concerning the granting of commercial air rights, by examining the experience in the European Union (where even granted eight freedom right), and the open skies treaty between the United States and the European Union, which entered effective on March 28, 2008. 4. Competition and tariff policy
The liberalization of air transport and the gradual move towards free skies, in the context of increasing freedom, makes necessary to safeguard fair competition between carriers, and to avoid practices detrimental to competition. For example, fares below costs, the addition of excessive capacity or frequency of service, or the abuse of dominant position in a route. For this reason, the Consultant reviews and evaluates existing policies on competition, tariffs, and capacity entitlements, in order to enhance the international services to and from Nepal, and the entry of other international carriers. 5. Sustainability of the Air Transport System
In order to ensure the territorial connectivity and the sustainability of the air transport system in Nepal, it is necessary to carry out a set of actions to encourage domestic and foreign investors in air transport to provide domestic services and to finance public service domestic routes. The granting of subsidies is justified on social grounds, such as the need to ensure minimum levels of service to remote areas. The argument in favor of such subsidies depends on the criteria applied and the definitions used to justify them. For that, in the first place, the Consultant will review with the MOTCA the Governments:
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Social Objectives. The minimum service requirements on all domestic routes based on these objectives. (task 23) Tariff policy. the Consultant reviews the tariff policy for domestic routes and will evaluate the constraints of these on private operation of domestic air transport. After review the tariff policy, the Consultant will make recommendations on an appropriate tariff policy in order to encourage private operators while meeting social objectives. (task 24) Subsidies. Evaluate various mechanisms for attracting domestic or foreign investors in air transport to provide domestic services and identify alternative financing mechanisms to subsidize unprofitable but socially necessary routes. (tasks 25 & 26)
There are several forms of subsidies. The most prominent are restructuring subsidies, cross subsidies and social subsidies. The restructuring subsidies have become increasingly important as liberalization evolves in world markets and airline companies demand support in order to adjust toward lower costs and greater competitiveness. But the difficulty with restructuring subsidies is the distortions to competition they clearly introduce. Even in cases where the stated purpose is to avoid the distortion of competition, it may still not be easy to determine the extent of the effect of non-commercial aid to a particular air carrier on overall supply and demand conditions. The cross subsidies consist of the possibility of negative bids for unprofitable routes and cross-subsidies from profitable routes. 6. Analysis of Future Fleet
This section analyses the fleet mix expected to operate at Nepals airports, taking into account new routes, fleet standardization of policies and the emergence and disappearance of certain models of aircraft. Including: Critical aircraft. To determine the critical aircraft the Consultant shall analyse not only aircraft currently operating but also those in the country but those employed by the airlines of the surrounding countries. A consultation with the major manufacturers of aircraft (Embraer, Boeing and Airbus) on the performances of their new models. From the responses obtained, the weights are fixed at the maximum allowable takeoff and landing, and calculate the economic feasibility of the routes listed above. A380: As an improvement to the terms of reference we will discuss the possibility of the A380 in the Nepal market. Prospect new air service routes
7.
And finally, in order to promote new routes from and to Nepal, assess the potential of the Nepal air transport market, through the identification of planned or likely routes and frequency growth by domestic and international airlines.
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The scope of work for this sub assignment includes: a. b. c. d. e. Analysis of Nepal air transport market. Main characteristics of Nepal domestic market. Estimate the extent of the future international air transport market that will be necessary to be served by the international airports of Nepal (new routes and/or frequencies). (task 20) Evaluate the potential for the expansion of international scheduled and shortand long-haul charter services to and from Nepal. (task 27) Evaluate the viability of the entry of other international carriers.
The approach for carrying out these activities and obtaining the expected output is the following: 1. Review all available documentation on market studies and route development from Nepal 2. Meet with airport operators, particularly TIA. Airports are an important source on route development, as their marketing teams have a good grasp on future route prospects 3. Meet with international carriers in Nepal (see Airlines section) 4. Meet with professional associations bodies. The outcome will be a 20 year passenger, aircraft, and freight air traffic forecast. Additionally, the Consultant will identify costs associated with the development of air transport (task 30) to appoint all the necessary investments in order to enhance the air transport system according to National Air Transport Plan. For that, the Consultant will carry out the following tasks: Description of investment Period required (phasing of investment): Identify the best moment to perform the investments. Implementation schedule: to scale in time the different investment programs.
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5.2.1.4
National Airports Plan
Nowadays in Nepal there are 54 airports, including six under construction, one international airport (Tribhuvan International Airport), four regional hub airports (Nepalgunj, Biratnagar, Bhairawa and Pokhara) and 43 local airports, but only 34 have operations.
Some important projects are been developed now: the Second International Airport in Katmandu, the new international airport in Pokhara, the possibility of upgrading Bhairawa airport as a regional international airport and the construction of five more local airports. The Consultant will analyze all this projects and will include them in the study. (task 34) The Consultant then studies the current situation and will develop an airports strategy for the future and will express this strategy in a National Airports Plan. Second International Airport According to the importance of this new Airport, the Consultant will help to CAAN in order to analyze some issues in this matter. Actually the Ministry of Tourism and Civil Aviation (MOTCA) is going to ask for some issues to CAAN. The Consultant will provide expert support in the areas that CAAN will require in this issue, explaining clearly how this airport can affect to the capacity Development Plan of CAAN. This task will be scheduled in the Plan, and the time will be completely open.
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Inventoryand Diagnostic
StrategicAnalysis
Capacity/Demand
NationalAirportPlan
AirportsInventory
SWOTAnalysis
InternationalAirports 20year Airports InvestmentProgram
AirportClassification AirportDiagnostic
RegionalHubAirports
AirportStandardDefinition
LocalAirports
Inventory and diagnostic The Consultant is to develop, in the first step, an inventory and diagnostic of the current infrastructure of Nepals airport operative network including: (task 31) Existing airport infrastructures. Airside, Landside and accessibility. Real state of the airport infrastructure Compliance with ICAO safety standards Airport role. Identification of the airport current users: tourism, local transport, emergencies, security, etc. Developing possibilities Social and environmental impact.
For this purpose the Consultant shall visit the airports with the CAAN staff. At the beginning of the project will prepare together a schedule and a planning of the visits to do. Strategic Analysis and Airport Classification With the information, not only about airports but also about air transport (airlines, private companies, traffic forecast) we are going to develop a SWOT analysis; with this analysis the Consultant classifies the airports in several categories. We will begin with the current classification: International Airports. Regional Hub Airports Local Airports with road transport Access Local Airports in remote Area
But the Consultant gives the future airports classification (several categories) according to different level of importance to the Nepalese economy, indicating the current situation of the airports and their future position, including of course, the analyze of the SIA project, the new Pokhara airport and the possibilities of Bhairawa Airport, new local airports needed, etc. the Consultant will propose new infrastructures for the development of tourism, social, security or any other consideration. The Consultant develops an airport standard for every category, indicating minimum infrastructures necessaries on every category. These standards give us the minimum
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requirements not only for the airport infrastructures, but also for equipments, staff, maintenance and protecting areas. We also, study in this part the economical situation of the airports, and we will associate different strategies for the different category of airports. Local airports are very difficult to be financially self-sufficient, and we have to work thinking in a global air transport selfsufficient as we will see in the business plan of the airport operator. The most important airports in the countries usually finance the small ones, in the case of Nepal, we have a lot of small airports in difficult access areas, so we will study and identify the global situation of the air transport system in the Business Plan developed in component 2B. The Consultant will determine which airports are socially necessary to maintain, independently of the economical and financial situation. (task 33) Capacity-Demand Analysis a) International Airports: The international and regional hub airports will have a capacity-demand analysis including all the different parts of the airport, if its necessary to know what infrastructures are needed and when they need them. the Consultant will determine the requirements for additional international airports in Nepal, based on transport and tourism considerations; especially we will study the prospects for an alternative international airport in Kathmandu, an international airport in Pokhara and the upgrading of Bhairawa airport to regional international traffic, indicating the future role of all these airport infrastructures. (task 34) b) Regional Hub Airports: the Consultant will prepare a capacity-demand analysis including only the principal parts of the airport, due to the real size and traffic in these infrastructures. Local Airports: Mostly actuations needed at the local airports were caused for ICAO non-compliance rules and the infrastructure conditions, but not for capacity, but the Consultant will develop a plan to evaluate the future requirements of every airport included in the study in case of low capacity.
c)
With all this information the Consultant will establish the airport development needs for all of the national airports according to the classification already done. (task 32) National Airports Plan Having the infrastructure and facilities requirements study as a kick-off milestone, in this assignment the Consultant will estimate which of these requirements will be a priority for the countrys benefit. the Consultant will develop a National Airports Plan including 20 year investments in Nepal Airports and the phasing of improvements. (task 35) These investments will cover all aspects related to the airport system. It means, not only airport infrastructure in the strict meaning, but also supporting facilities at the Airport like lighting system, drainage system, etc. The investment program will be based on the capacity demand analysis, infrastructure and facilities requirements This analysis will define which subsystems and when, will be near saturation. Approaching that saturation, in order to continue with the traffic growth, the investment must be performed at that point, previous to congestion.
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For each of the airports of the Nepal Airports Network, it will be made proposals for improvement and / or extension and / or modernization of the airport infrastructure. The plan will determine which airports may be financially self-sufficient, and include a vision of the future development of airports under private sector participation, regional and community participation. (task 32). Regarding Tribhuvan International airport, it is important to mention that the investment plan of this airport (Master Plan) is dependent on any decision to be taken about the Second International Airport close to Katmandu. The Consultant will include the investments that the Government of Nepal has to do in these airport infrastructures.
5.2.1.5
Air Navigation
Deliverable 1: Analysis of the current Airspace and CNS/ATM infrastructure Task 37. Review the structure of the national airspace, the ground support and telecommunications aids serving the airspace and air transport operators. Task 38. Determine the current deficiencies with respect to airspace surveillance, navigation and communications, and the CNS/ATM requirements necessary to meet Nepals airs transport needs in the future. The efforts associated to these tasks will be focused on the identification of the weaknesses in the structure of the national airspace and the CNS/ATC facilities (surveillance, navigation, communications and Automation of the Air Traffic Management). In this way, the Consultant will perform two types of studies: 1. Analysis of the structure of the national airspace: a. Understand the current operation in the Nepalese airspace. b. Detect and identify the deficiencies, bottlenecks and hot spots. 2. Analysis of the current CNS/ATC infrastructure: a. Description of the current CNS infrastructure and En-Route and TMA ATC System. b. Assessment of the communications, navigation and surveillance performances in terms of declared coverage and redundancy and analysis of the current ATC systems performances. As a previous and essential step required developing these studies, a collection of data and a preliminary analysis will be carried out. In order to reach this aim, two work phases mentioned hereafter have been identified and adapted to the Nepal project: a) A preliminary analysis of documentation: The aeronautical information publication of Nepal: National regulations and requirement, general rules and procedures, air traffic services, ATS routes, SIDs and STARs charts, airspace classification, navigation radio aids and warnings, etc. Specific information about each ATC sector (En-route or TMA): Vertical and lateral dimension, air traffic services supported, military and restricted areas,
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b)
flows of traffic, aircraft performances, as well as relation with aerodromes in its vicinity, etc. Letters or agreement. It will be evaluated the inter-centre and inter-unit coordination agreements. Air traffic data. A painstaking description of the air traffic and its performances in Kathmandu FIR and TMA will be carried out. In order to obtain a representative picture that allows a meaningful, realistic and relevant operational analysis, several air traffic data must be provided. Ideally, this recorded data must be made during a predetermined representative time span (seven days) in the high and low density travel seasons. Brands, models and main features of the CNS/ATC facilities for En Route and TMA. External and internal development strategy both for ATM and CNS/ATC systems, if exist, it also will be taken into account in this preliminary analysis.
On site Gathering information-Collect Data: Interviews with stakeholders: Air Traffic Controllers (en route & approach, trainers), Airline Operators, Military User, Airport Authority, ATM Operations Manager, Airspace Planners, Procedure Designer, Technical & Engineering Staff, etc. Data collection in situ in OPS room in ACC and approach control offices. Technical visit to the ACC and the Equipment Room, to identify the features of the existing CNS/ATC infrastructure.
During the visit to Air Navigation Centre and approach control offices, the specialized personal will verify any information described on the first phase. Analysis of the structure of the national airspace: The information obtained during the previous phases will be used to define the Reference Scenario. In this line, during the interviews the Consultant will obtain the current operational data as well as the premises to define the new Nepalese Airspace concept. These operational premises are defined regarding the following fields: Definition of the future operational requirement. Airspace changes are triggered by operational requirements. In order to tackle the mentioned ones, an Airspace Concept will be developed and validated. Selection of Performance Criteria. In deciding the projects objectives and scope, it is necessary to know how a projects success can be measured and validated. To agree the ATM/CNS assumptions. What is already available has been identified, but now it is needed to know, what the status quo will be when the Airspace Concept is implemented.
Once the current operation has been observed, researched, modeled and agreed, an Analysis of the weaknesses of the airspace structure will be carried out. This analysis will be performed for each single element (airways network, En-route sectors, TMA) as well as a global analysis of Kathmandu FIR. The gained knowledge during this exercise will be the base of next deliverables. In addition, this deliverable is essential to next tasks due to it will be the reference of the targeted Airspace Concept. Thus, it could prove useful to compare the performances of the existing versus the new one.
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Note that the analysis of the operation in aerodromes and vicinity FIR will be out of the scope as well as the verification of any charts or flight procedures in accordance with the standard rules. Analysis of the current CNS/ATC infrastructure: The objective of this Analysis is to elaborate a detailed description of the existing CNS/ATC infrastructure in Nepal both for En-Route and Terminal facilities, attending to the information obtained in the previous phases. The description will be performed in the following domains: Communications o Air-Ground Communications infrastructure o Data and Voice Communications links and systems Navigation Surveillance ATC Systems Once described the existing infrastructure, an analysis of its performances will be done. This analysis will be mainly focused on the capability that the infrastructure has as enabler for the provision of the air navigation and ATS services in the Nepal En-route and Terminal airspace. The analysis will consider the following items: Qualitative evaluation of the DOC (Declared Operational Coverage) of each CNS system to estimate (In order to provide an accurate assessment of the performances of the existing CNS systems it would be preferable to perform Line-of-Sight Coverage Studies at main flight levels (identified by the Nepalese Authority), based on a digital terrain heights database (preferably provided by the Nepalese Aviation Authority, format DTED 1): o o Analysis of the compliance degree at En-route and main TMAs. Detection of coverage holes and proposed mitigations.
Redundancy. Means of increasing continuity and availability. Qualitative estimation of the performances offered by ground navigation systems for PBN. ATC Systems high level functionalities and ability to support the current airspace operations.
This analysis will not include an assessment of the technical performances currently offered by the CNS/ATC infrastructure, as well as Line-of-Sight coverage studies. Deliverable Name: Analysis of the current Airspace and CNS/ATM infrastructure" This activity will start on May 2012, the mission to collect data is planned in June 2012 and the document will be delivered at the middle of July 2012. Deliverable 2: Assessment and redesign of Nepalese Airspace Structure at short-mediumlong term" Task 39. Assess the requirement for additional air routes though and connecting into the airspace of Nepal, and determinate the CNS/ATM requirements to serve such additional air routes; Task 40. Review the long-term upgrading requirements for managing and operating the national airspace.
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The main objective of this task is to assess the requirement for additional air routes, ATC Sectors, TMAs that will allow managing the expected traffic growth in short, medium and long term. To achieve this aim, two processes have been identified: Assessment of the current situation (short term)
Derived of the analysis of the weaknesses in the current structure airspace, improvements and recommendations will be suggested and explained on each single element as well as a global analysis of Kathmandu FIR. This final Short-Term Assessment will include suggestions regarding the followings keys: o Recommendations of modifications of procedures (SID`s and/or STAR). o Variations on the limits either vertical or lateral: ATC sectors, TMAs and/or CTRs. o Suggestion to increase the number of ATC sectors. o Flows reorientation and modifications of the current airways network. o Proposal of new ATS route following the PANS-OPS ICAO specifications and the PBN concepts. o Redistribution of functions among involved ATS units. o Each proposal will be analyzed and evaluated taking into account the following aspect: o Feasibility in accordance with current ATM/CNS infrastructure. o Maintain or increasing safety levels and efficiency. This assessment will include a propose of new airways network description, defining the achieved solutions to the current weaknesses, following the PANS-OPS ICAO specifications and the PBN concepts but not for their publication or their use for flying. Assessment of the future situation (medium and long term)
The methodology to be applied by the Consultant in Nepal is based on the PBN implementation plan defined by ICAO. It is an iterative process that guarantees a new airspace concept/design in compliant with beginning of ATM/CNS assumptions agreed among stakeholders involved as well as performance criteria to be obtained. Next figure represents a diagram of this methodology: STEP 1
OPERATIONAL REQUIREMENT S PERFORMAN CE CRITERIA ATM/CNS ASSUMPTIONS
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STEP 2
PERFORMANCE CRITERIA
NEW ATS ROUTES & SECTORS
REFERENCE SCENARIO
Airspace Design
ASSUMPTIONS
INITIAL CNS/ATM
TRAFFIC FORECAST
STEP 3 NEW AIRSPACE CONCEPT

CNS/ATM REQUIREMENT
The main keys of this methodology are described hereafter: STEP 1: Definition of initial ATM/CNS premises Airspace changes are triggered by operational requirements. Therefore, before to define new requirements for airspace, the operational requirements must be defined. This definition must be at least in high managerial level regarding with capacity, efficiency, environment and accessibility of target airspace. In addition, the future Airspace Concept to be designed is based upon certain ATM/CNS assumptions. Assumptions must cover a wide field and need to take account of the expected environment applicable for the time when the new airspace operation is intended to be implemented (e.g. in 20XX). Assumptions include, for example: the predominant runway in use within a particular TMA; the percentage of the operations which take place during LVP; the location of the main traffic flows; the ATS Surveillance and Communication to be used in 20XX. Are there any specific ATC System assumptions that should be considered? In order to tackle the operational requirements in accordance with the CNS/ATM assumptions an Airspace Concept/Design will need to be developed and validated. Such an Airspace Concept, addressing all of the requirements, cannot be developed by a single individual working in isolation. Airspace Concepts, from inception to implementation, are the product of an integrated team of people working together: the
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Airspace Design Team (Air Traffic Controllers, Airline Operators, Military User, Airport Authority and ATM Operation). At the same time, this airspace design team also must select the performance criteria to validate the new Airspace in order to know how a projects success can be measured. This task has been planned and re-adapted in accordance with the schedule and actions defined in the previous task. Step 2: Airspace Design The main objective of this phase is to recommend and design at high level a new airspace design in accordance with the reference scenario and ATM/CNS premises. The new airspace design must guarantee that the expected traffic can be handled and working on established performance criteria. In this way, either new ATS routes or the ATC sectorization must be coherent to obtain the target objective. Apart of the initial ATM/CNS premises, the key of this step is the forecast air traffic. It is needed to know the evolution of traffic at medium and long term (10 and 20 years). In this way, according with the foreseen air traffic, the current and future Fleet Capability and flow distribution, the Consultant can model the future status of airspace in NEPAL. This process requires some phases: Selection of representative traffic samples. Adaptation of the traffic sample to the forecasts. This process will be based on a traffic modelization: current and future fleet capability, redistribution of flows.
Once the foreseen traffic and its performances are modeled, the airspace team will develop several proposals of design to solve the detected weaknesses. In order to validate the final design, it must guarantee that all performances criteria have been reached. the Consultant will select the optimum process to obtain ones depending on these initial criteria: Fast time simulation, statistical analysis, operative analysis, etc. When the new airspace concept is validated, the design will include the following fields: Description and definition of the achieved solutions to the current and future weaknesses. Proposals of a conceptual design based on new airways network following the PANS-OPS ICAO specifications and the PBN concepts. A detailed scheme of new airways will be included, not for publication purpose or for their use for flying. To complete the airspace design, it is required to prepare an optimized concept of operations. In this line, the efforts will be focused on the description at a very high level the operation with the new system performed with the technical requirement expressed above and with a new airways network, and new sector validated. The description of the new Airspace concept will be performed, if required, in the following domains: En-Route and Terminal facilities, Communication Service, Surveillance Service, ATM System, Flexible Use of Airspace Concept and required new technologies. In other words, the implementation of the new Airspace Concept will be linked to the achievable capabilities of the CNS/ATC infrastructure. The definition of the Airspace Concept will include the determination of the CNS/ATC requirements to serve the additional air routes. The aim of this task will be maximizing the airspace structure capacity and efficiency, optimizing at the same time the CNS/ATC infrastructure (Communication,
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Navigation, Surveillance and ATC systems), in accordance to the implementation of Performance Based Navigation (PBN). This optimization will include the following items: Reviewing the possible introduction of new technologies for CNS-ATC, such as replacing traditional equipment with satellite based approaches (GNSS) and transitioning to ADS-B, in accordance to international programs which are being developed to determine the next generation technologies such as NEXTGEN and SESAR. Proposing the improvements needed in the Nepalese CNS/ATC infrastructure (Communication, Navigation and Surveillance systems, and ATC systems functionalities) to serve the new Airspace Concept.
Note that the analysis of the operation in aerodromes and vicinity FIR, as well as designing charts for publication purpose or for flight, are beyond the scope of this study. Deliverable Name: Assessment and redesign of Nepalese Airspace Structure at shortmedium-long term" This activity will start on July 2012 and the document will be delivered at the end of September 2012. Deliverable 3: 20-year National Airspace Modernization Plan" Task 41. Define a 20-year National Airspace Plan to faction as the basis for all future upgrading of the airspace and its operation within the planning period. Determinate the overall cost to upgrade and develop the national airspace, and the required phasing of improvements. The purpose of this task is to define a 20-year Modernization Plan which will include the new CNS/ATC infrastructure (communications, navigation, surveillance and Automation for ATC) to be deployed in Nepal to cope with the expected traffic flow as well as the new airways network and concept of operations defined previously. This assessment takes into account all inputs coming from previous tasks (Current CNS/ATM Infrastructure, Short term action plan, proposed of new ATS routes, Operational Concept and New CNS/ATC technologies to Nepal) considering also that the proposed solution must be as economical as possible. The proposed technologies included in the Modernization Plan have been scheduled in three time periods: short (2015), medium (2020) and long term (2030+). As a conclusion of the assessment for the modernization and integration of ATC infrastructure this Recommended CNS/ATC Modernization Plan for Nepal addresses the dates and investment costs of the detailed actions that must be taken, in terms of communications, navigation and surveillance issues to provide the adequate infrastructure to manage the future Airspace and ATM concept of operation, in Nepal. Additionally a high level description of the functionalities required for the ATC systems in order to cope with the expected demand. Note that for existing CNS/ATM systems renewal will not be considered in this exercise and the cost will depend on the prices provided by Nepal. Deliverable Name: 20-Year National Airspace Plan" This activity will start on October 2012 and the document will be delivered at the beginning of November 2012.
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5.2.2
Corporate Business Planning

PHASEI
PHASEII
PHASEIII ECONOMICFINANCIAL
OperatingCostfor infrastructuremaintenance Reviewstaffing Proposedof Proposestaffsalarylevels CAAN&Operators
OperatingCost oftheCAAN& Airportand AirNavigation SystemOperators
ORGANISATIONANDHUMANRESOURCE PRICINGSTRATEGY
Reviewthe currentrates andcharges Review commercial revenues Proposerevisedscheme ofratesandcharges CashFlow
Financial analysis
Profit&Lost
Capital Programme
Opportunities Commercial foradditional Development revenues Programme
COMMERCIALPLAN MARKETANALYSIS
Aeronautical& NonAeronautical Revenues
Business Plans are to be developed separately for CAAN and Airports & Air Navigation Services Authorities. A Corporate Business Plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. The contents of this Plan are linked to activities all around the assignment as it is explained in the chart below: The structure of plan will be as follows: Executive Summary The executive summary is designed to pique the interest of decision makers. It should contain a brief overview of the most important aspects of the business plan. In particular, it should highlight the product or service, the value to the customer, the relevant markets, management expertise, financing requirements, and possible return on investment. Entity description A general chapter explaining: Type of Activity/Business, Legal Organization, Business Location, the owners and management of the business. Market analysis
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The carry out of a market analysis is the fundamental part of a good business plan. The obtained information through this analysis will allow us to know the viability technical, economic and financial of the project. In the first place, it will be necessary to determine the air traffic growth. For that, the Consultant will review the air traffic forecast developed as part of the Component 2A. (task 43) Next, the Consultant will use this air traffic forecast as the basis for revenue to air traffic activity over the 5 year period of the Corporate Business Plan. Commercial Plan. Products and services. the Consultant is to develop a portfolio of Products and Services, including the review of existing and potential new items in the future. the Consultant then reviews the existing level of commercial revenues collected by CAAN for all commercial sources, in order to identify gaps and opportunities for additional revenue generation. (task 45) the Consultant finally develops a commercial development program for the two Authorities to cover the initial 5 years of operation of these authorities form the anticipated start-up date. The commercial development plan will assume that all asset transfer would be completed by the start-up date and that there are no impediments to development of airport or other lands to be under the ownership of the authorities. (task 45) Management Organisation and Human Resources This part of the Business Plan shall include a description of the roles of staff (all staff positions) in the two Entities, a detailed description of the board position. Also it is necessary to reflect the employment status, salary, benefits and position grading system to be applied. All this is included in Component 3 (Restructuring Plan). Therefore, in the first place, the Consultant reviews the proposed initial staffing of CAAN and the Airport and Air Navigation Operators, based on its proposed start-up condition (Task 42). Implementation schedule This task will show most major milestones and the most important interdependent events. Gantt implementation schedule. Major milestones. Main task connections and interdependencies. Economic - Financial Planning. Pricing Strategic The financial plan is other of the basic elements included in a business plan. The purpose is to evaluate the economic potential and to present financing viable alternatives. As central part of the business plan, it will be necessary to prepare the following economic - financial information for the 5-year period of the Corporate Business Plan:
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Profit & Loss Statement: all revenues and costs will be summarized in a Profit and Loss statement, including Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA). (task 47) The figures will be adjusted for depreciation, financing expenses and income tax. Cash Flow Statement. (task 47) Operating costs. These costs will be determined based on proposed staff salary levels to be developed as part of the Restructuring Component, and allowing for other operating costs for infrastructure maintenance. (task 46) Aeronautical and Non-Aeronautical Revenues. The aeronautical revenues will be estimated from the air traffic forecast to be prepared as part of Component 2A.
This part will include a revised scheme of rates and charges (task 44). This task shall be carried out in conjunction with the financial analysis to generate financial statements for the two organizations. To carry out this task, in the first place, the Consultant reviews the rates and charges presently in effect, in order to determine the changes required to ensure that Nepal is consistent with current civil aviation practice. This process is iterative with the financial analysis, and these feedbacks the scheme of rates and charges. The Consultant will explain to the board of CAAN the revised scheme of rates and charges for approval. Finally, the Consultant prepares a Capital Programme for the 5 year period of the Corporate Business Plan. Additionally, it will be identified sources of financing of capital items contained in the Capital Programme. (task 48) Web Plan. The Consultants proposal include a strategy for the websites (not the development). In this task will be defined what and how must be included in the websites. 5.2.3 Private Sector
ReviewofOpportunities PreviousPrivateSector Facilitiesandactivities suitabletoPrivate ParticipationinNepal SectorParticipation BenchmarkofPrivate SectorParticipation models
Reviewlegislation
FocusonTribhuvan InternationalAirport Analysisofprevious assignmentinNew Terminal Costof developing FinancialAnalysis and Potentialrevenues Typeof participation model Timingprivate participation Adviseonriskto GovernmentofNepal MOTCA/CAAN
The purpose of this part of the component is to enhance and expand the participation of the private sector, especially in the Airport and Air Navigation Operation (including airport
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facilities/support services, Terminal Building and Air Cargo Building), and develop a plan for outsourcing those activities deemed to be appropriate for initial application of outsourcing. In the SWOT analysis we have done before; we have identified private sector opportunities due to the new Authorities organization. (task 49) In order to define this planning it is necessary to carry out the following tasks: Review legislation In the first place, the Consultant will analyze the laws regulating air transport in Nepal, in order to understand the existing rules and to check whether it facilitates or enables a smooth and plausible development of air transport. Among others, the Act on Private Financing in Build and Operation of Infrastructures will be reviewed and analyzed to determine the legal requirements and suitability of the proposed development plan, including a tentative pre financial feasibility. The Consultant will provide its extensive experience in policy analysis and airport privatization in the Sub Andean Region (Venezuela, Costa Rica, Colombia, Ecuador, Peru & Bolivia). Previous Private Sector Participation in Nepal Understand the advantages and disadvantages of private sector participation in the development plan through previous experience of private sector participation in the development of Nepal infrastructure. Facilities and activities suitable to Private Sector Participation The Consultant identifies facilities/support services and activities with private sector participation potential. In particular the Consultant will analyze the TIA terminal concessions and the air cargo building, looking for private sector participation (task 50) We also analyze different services to be outsourced (task 50): Airport Maintenance Services at TIA Civil Engineer Services of CAAN CAD draughting Services Project Management Services The Consultant will indicate the benefits and losses of these actions. In some cases the problems involved are bigger than the economic benefits. Benchmark of Private Sector Participation models Understand the different Private Sector Participation models available in the region, and their applicability within CAAN and Airport and Air Navigation Service Providers. (task 49) New International Terminal Building at TIA
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The Consultant will carry out a technical and financial review of the proposed new International Terminal Building for the purpose of determining its suitability for private sector investment. Analysis of all previous assignment with regards to new International Terminal Building at TIA under considerations, this include airport location, inventory, planning, investment plans, traffic forecast (potential), traffic type (tourism, business), current capacity, future demand, SWOT analysis and infrastructure requirements. Determine the costs of developing the proposed Terminal. the Consultant will develop a study with our estimation of the project costs for short, medium and long term. The Consultant is to perform a feasibility study of the new Terminal Building in TIA, including its potential sources of revenues (aeronautical and non-aeronautical). We will create a financial analysis model for the new Terminal. The model will be structured on the following parts: Returns, cash-flow, passenger forecast, debt, phasing, capital, amortization, Org bud, Org DF, Org profit&loss, Org with P&L We will also identify different possibilities of management contracts to Concession agreements (Build Operate Transfer and its derivatives), Private Public Partnerships, Private Sector Ownership (more than 50% equity). Timing for the private sector participation based on requirements and capacity/demand constrains. the Consultant consider different scenarios for private sector participation, including one model might be the concession to 20 or 30 years of managing the International Terminal to companies or consortia responsible for the operation and management of facilities, as well as investment in infrastructure. Concession agreements might fund the modernization process, yet theirs should be regulated in a way as to maintain the efficiency of the airport and to counter potential abuse in the setting of fees and charges to the public. Other models would be private investment to boost economic growth in the local economy to be developed by: Local Businesses, International business, Airlines, Tour Operators, Privatization of services, Air Cargo, Maintenance and Handling. Private Airports or Airports under Private Operation Now, the most important Airport Project in Nepal, the Second International Airport can be an opportunity for this type of Private Operation. The Consultant will help CAAN at any subject included in this project in order to take the best decision in this area for Nepal.
5.2.4
Non-Aeronautical Revenues
Current Situation The Consultant identifies the current non-aeronautical revenue generating activities, collecting the following data for all of them: Competitiveness model
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Activities Surfaces Location Key indicators (income/m2, sales/m2, sales/passenger, etc.) Rental Rates Concession periods
With all these information, the Consultant will obtain and structure the activities that conform the non-aeronautical revenues at the current situation and will identify preliminary requirements to increase the non-aeronautical revenues. Commercial Layout The Consultant defines the new commercial layout for TIA, and will develop some ideas for smaller airports. The layout includes the areas inside the airport terminal dedicated to the nonaeronautical businesses, specially indicating the retailing areas and the catering areas. New Businesses The Consultant will analyze new activities and new businesses in Nepal, according to improve the non aeronautical revenues. the Consultant will take in account not only businesses inside the Terminal buildings, like retailing and catering, but also, any other type of business at any part of the airport infrastructures, like hotels, hangars, FBO, car parking areas, maintenance, cargo and logistic centers, etc.
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5.3
Restructuring
As a result of the meetings held during these weeks of working the initial formulation of the work program has been revised in order to fit the new organization that will be proposed to the real needs of the current CAAN and the future actions to be taken in the country, as would be the construction of the second international airport in Katmandu.
CurrentSituation
NewOrganizational Structures
Remuneration scheme
TransitionPlan
ListofActivities
CAAN
Salary
HumanResources NewOrganizations tobedeveloped Decision AirportandAir NavigationSystem Operators
Benefits
Pensions
Schedule Organization Procedures Testing TrackingProcess Communications Documentation
First of all well have to define how many organizations will be in the future. Its clear the separation between the Regulatory Entity and the Services Providers Entity. But, as we have told before, after the meetings it would be possible to split the Operational Entity into two parts, one of them would be in charge of the airports operation and the other one would be in charge of the Air Navigation Services. In order to it, the Consultant is to analyze the current structure and organization of CAAN, identifying clearly the activities, the human resources, economic conditions, buildings, etc. As a methodological approach the Consultant believes its better to take into account three organizations than two, because of, if, in the end, its decided to have only two, itll be easier to join activities, and the rest of the issues than to do a three-way split, again. the Consultant separates the different activities in three different lists, the first list will include all the activities close to regulations, laws, international agreements, licenses, certificates, etc and will be part of the future CAAN organization, the second list will include the activities related to the operation of the airports and the third list will include the activities related to air navigation system in Nepal. CAAN (Civil Aviation Authority in Nepal) will be responsible for regulation in Civil Aviation. NAA (Nepal Airports Authority) will be responsible for the service provision of the airport operations in all the Nepalese Public Airports. ANSA (Air Navigation Services Authority) will be responsible for the service provision for air traffic services and air navigation services throughout Nepal.
In case the final decision were to set up only two organizations, the only thing to do would be to unite NAA and ANSA to create the original NAANSA. To resolve which the best option is the Consultant will apply the following steps:
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brief benchmarking report in developing countries regarding aviation models portfolio of activities developed by CAAN lack of activities that would be detected in the preceding analysis needs of material and human resources for each activity. Activities to develop by each entity Pros and Cons Analysis of the different options
After these, CAAN will decide and take the decision regarding the organization options, and the rest of the task will be done taking account three or two entities, depending on the choice. According to the Human Resources, the Consultant analyses the existing situation by studying the current chart and job descriptions, prior to the restructuring, as well as the workforce available and the new proposed organization structure (including a small strategic review to align the new chart with the strategic objectives of the organization). This is supplemented by interviews with managers of the various organization units proposed in the new structure. This analysis offers an insight into the management model even before the restructuring process has taken place, and also provides key information about the resources available and the particularities of each of the new business units. At this point, the Consultant will know perfectly the current organization and will prepare a plan to define the Start-up date for the new organizations. This date will be determined in conjunction with CAAN management and MOTCA. (task 54) New Organizational Structures Nepal Government has developed the new staff requirements in the document TA 7031NEP and a restructuring component in the Capacity Building Programme. The Consultant will analyse the organizational structures already proposed for CAAN and NAANSA (task 70) and will adapt this structures, if it were necessary, to the split of NAANSA into NAA and ANSA and will develop these organizational structures through the lowest level, indicating the staff and position grading at every organization. (tasks 55, 56 & 59) the Consultant will define not only the lowest organization, but also the highest positions. (task 53) Based on this analysis, first role models are identified for each organization unit, as well as the other major rating factors based on which we can determine the different levels of responsibility, for each position in terms of its contribution to organization. Each position identified will be level off according to this scale, which will be the structure of posts and levels of the organization. Once the new roles are identified and standardized, we will proceed to develop a manual of functions that contain the description and the same requirements (mission, responsibilities, profile, hard, soft profile, etc.). (task 64) the Consultant is to inform the existing staff of CAAN about the new organizations and their possibilities for the future, giving them the opportunity to choose in which organization the want to be in the future, in CAAN or the new NAA or ANSA, or maybe NAANSA, if we dont split. (task 64) At this point the Consultant identifies the new positions for the existing staff of CAAN in the new organizations in relation with their qualifications and experience.(task 60)
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The next step is to determine how many positions we need to cover with new staff, and which type of them. The Consultant defines the experience and qualifications needed to fill those positions and will prepare the recruitment of new staff for the two or three Authorities in accordance with Personal Department of CAAN and TIA (task 77). The Consultant will help to put into effect the recruitment plan according with the transition plan that will be developed for this project. (task 59) The Consultant will define an Accommodation Plan, defining which type of offices will be needed for the new organizations, and will accord with the CAAN and MOTCA managers the new locations in the city, TIA airport or any other considered position. One option is planning CAAN staff at the actual CAAN HQ and NAA and ANSA or NAANSA staff at TIA. (task 62) The Consultant will plan de office accommodation for the restructured organizations, define the equipments and furniture needs for the restructures organizations. Remuneration scheme and benefits package (task 53) The Consultant will define a complete remuneration scheme for each organization and will define benefit packages if its possible, with this methodology: Data collection. Study of current pay levels (analysis of internal equity). This study includes the entire compensation package (salary and benefits) Determining the optimum salary structure. Based on the results of the analysis, development of the new salary structure (including benefits package) appropriate to the new organization chart. (task 57) Implementation of the new salary structure in the current staff organization. Wage Policy analysis. Analysis of the levels of compensation and market benefits (external competitive analysis) and determination of companys policy in each of the levels and positions of the organization (under market, market or market level). (task 58) Recommendations for salary management. Provide recommendations for keeping the wage structure efficiently organized. Pensions. Define provisions to be applicable for staff pensions in every organization. (task 61)
All this data will be included at the NAA, ANSA or NAANSA and new CAAN Business Plans, including a short-term interim financing that will cover the cash flow requirements for the start-up of both organizations. (task 63) Restructuring, Implementing and Transition Plan The Consultant will develop an implementation plan for restructuring the existing CAAN into the two/three new organizations. We have already defined the new structures and now we need an implementing and transition Plan. The Transition Plan must develop all necessary actions to put into action the two new Authorities: in time with all resources required optimizing economic results from the beginning In this Transition Plan, the Consultant will include: (task 65)
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Schedule. According with the start-up date, the Consultant will define the critical actions to be carried out leading up to the implementation date (new organizations, new laws, training program, business plans, financing, offices, staff recruitment, etc.) (task 53) Organization. The Consultant will define responsible staff to get all that critical actions. The Consultant will define a coordinating structure and will use management tools. The different organizations involved, require high degree of coordination. The overall operational readiness process must be coordinated through a flexible working structure of Committees, Commissions and WorkingGroups Procedures. The Consultant will define new procedures needed for the new organizations. Testing Period. The Consultant will prepare tests before the start-up process of the new organizations, including IT systems and new staff trained skills. Tracking process. The Consultant will detect any possible delay and will communicate with the CAAN management and the Board of the project. (task 66) Communications. The Consultant will maintain briefings continuously with all the authorities involved in this project to coordinate and take all the decisions/approvals required on issues of significance. (task 67 & 68) Documentation. The Consultant will document the Plan, and will maintain and control all the documentation developed from the beginning until the end of the project. (task 69)
The Consultant will define clearly what everybodys functions at the moment of the change. In some cases only a few changes will be noticed, but in others, some departments will have a completely new job.
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5.4
Human Resources Training Plan
This component gives us one of the more critical point all over the Transition Plan and will defined in a Staff Training Program, useful, not only for the transition period, but also for the future.
CurrentTrainingProgram Analysis
StaffTrainingProgram Development
StaffTrainingProgram Implementation
TrainingProgram Methodology MeansofDelivery
InstructorsSelection
Staffselectionfortraining AnnualBudgetTraining Content CoursesDevelopment ShortTermTraining
Current training program Analysis the Consultant is to analyze the current training plan of CAAN and TIA (in collaboration with the Civil Aviation Academy) and provide, to accommodate them in methodology and duration of content, the real requirements of the new Authorities, proposing the development of career plans and training itineraries. The Consultant will establish the specific technical training needs of every area of the new Organizations and the training activities required to optimize every position. (task 71) The Consultant also identifies the critical staff training requirements for the new Authorities CAAN, and the Operators and it will be a part of the Transition Plan. Staff Training Program Development The Consultant is to develop the Staff Training Program Document for the two/three Authorities, CAAN and Airports and Air Navigation Service providers. It includes the definition of the learning objectives, designing and developing generic training routes. Also includes the development of brochures on training programs for later delivery to employees. (task 78) a) Develop of a Training Program (task 72)
The Consultant is to develop a Training Program, separating the training procedure in two different parts: Training required to staff to bring the Authorities up to full strength. Advance training to further develop the capabilities of staff The Consultant will define a list of courses to be included in every part and for every staff position, but not only for the transition period but also for the future. The Consultant will define the content of the courses and an estimated time to be imparted.
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b)
Means of Delivery (task 73)
Once we have developed the list of courses needed for every staff position in both Authorities, we will identify the means of delivery of the entire proposed training program: E-learning courses Classroom courses Training by international experts in Nepal Training delivered overseas c) Annual Budget Training
The Consultant also performs annual budget planning and training activities forecasted and distribute the number of training hours available in the year among the existing areas. This planning will have two different parts; the first one will developed the transition period and the second part, the training activities per position, in the future, with the two new Authorities in normal operation. d) Courses development (tasks 74 & 79)
The Consultant will develop the courses needed to be delivered locally in Kathmandu through e-learning and classroom delivery. Staff Training Program Implementation Once you know the requirements of the Company, by analyzing the current training plan, the methodology will be assessed on whether it delivers the required training. As factor that will be taking into account, we will consider cost savings, if any, geographic dispersion, etc. a) Instructors Selection (task 75)
The Consultant is to identify international and local instructors between the equipment involved in the project or between all the specialists belonging to the company (more than 3.000 staff belongs to the Consultant nowadays) and will send them in a short-term to deliver in Kathmandu the critically-required courses of instruction defined in the Plan. The Consultant shall also assist the HR staff to identify internal trainers. It aims to promote internal training as a tool, to help improve the competitiveness of professionals within the company. Combining this methodology with the Needs Assessment will enable us to identify talent among the staff. Those identified employees will be therefore trained in various specific activities, such as: Talent training. Highlight and occasional trainer. Trainer e-learning b) Staff Selection for initial training (task 76)
The Consultant shall support the HR/ Personnel Department to identify initial candidate staff for training, indicating which courses they must receive and when they have to do them. These staff may be existing staff or new staff proceeding of the recruitment process developed for both organizations. c) Short-Term Training
The Consultant selected instructors and local instructors will impart the courses according with the Transition Plan and the Staff Training Program.
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5.5
Computerization
ServiceSupport&Tools
Design security policies Monitoring implementation andtraining
Consulting roles
Network design
Documentation systems
Certification
The main objective of the process is to establish the systems & network requirements arising as a result of the restructuring of both organizations. Having the existing structure defined in the previous phases in mind, and taking into account the tasks & duties of each division and department once the process has been concluded, with the review of the office accommodations for the CAAN departments and Operators departments, we will define an information system that will include the requirements identified and also it is structured in a way that could easily be expanded and with the lowest maintenance cost possible. (tasks 80 & 81) In order to carry out the task, the Consultant proposed a work methodology based in ITIL (Information Technology Infrastructure Library), a standard designed for management of Information Technology Services, that has been successfully implemented in many organizations and it is considered as industry best practice. Among the main objectives of the ITIL we can highlight: Improve the processes and management of IT services in each unit Facilitate the change towards the Process Management in the less developed areas Change from an IT focus to a business focus using business indicators.
Service Support This services aim at ensuring that users have access to those information systems enabling them to perform efficiently their business functions. This requires defining the role of Customer Care Centre making sure is able to pick up the incident, identify the problems associated and provide to the solution. Also it will be considered the need to establish a Department of Information Systems which will be responsible for Configuration Management, Change Management and Production Management. Support Tools It will be required the use of support tools that allow a full service management. The tools selected must be able to ensure compatibility with the following ITIL processes: Incident Management Problem & Event Management Request & Change Management
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Asset Management and Configuration Services Knowledge Management Service Level Management Financial Management Availability Management Release Management and Deployment
Tasks to be completed for implementation: Consulting roles (task 82) : We will analyze the needs for information systems related to the functions to be performed by each of the teams work defined in the structure of each of the newly created organizations. Network Design (task 83): We will design the communications system suitable for each of the organizations in order to allow then to work together, with the ability to be independent although interconnected. Design security policies (task 88): We will establish the appropriate security policies for access to computer systems and to protect and ensure confidentiality of information. At this stage, will also identify policies needed to retrieve backup information that is considered normally something of great interest to organizations. Documentation systems (tasks 84, 85 & 86) : We will prepare the documentation necessary to ensure the implementation of systems and verify their proper functioning, in order to allow organizations to determine the provider of the same. Monitoring the implementation and training (tasks 87 & 89) : After determining the needs for Information Technology and documented processes, we will monitor their operations and systems during the first months. We will also be train the professionals responsible for maintaining service in ITIL standards and the use of ITIL management tools. Certification (task 90): Once installed the system and verified its correct operation we shall certify the proper operation thereof.
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5.6 5.6.1
MANAGEMENT INFORMATION SYSTEM MIS

RequirementsManagement Replan Replan Replan Replan
ProjectPlanning What to monitor
Replan ProjectMonitoring and Control
Measurements andanalyses
Quality and noncompliance issues
Measurement andAnalysis
Information needs Configuration itemsand changerequests
MIS
Processesandwork products,standards, andprocedures Controlled configuration items, baselinesandaudit reports
Quality Assurance
Configuration Management
Functional Requirements
Definitionspecs
Evaluation of MIS
Development applications
Integration and implementation
Requirements Management: (task 92) The goal is to identify and manage requirements. Thus, the Consultant will be able to identify inconsistencies between those requirements, plan projects and work items. It should manage all project requirements, both technical requirements as non-technical requirements that have to be reviewed jointly between the client and the developer. Project Planning: There will be a planning tasks identified based on the requirements listed in the previous phase. There shall be a calendar that reflects the agreements and commitments made. This calendar will be reviewed periodically because the requirements may be modified during the project, affecting the scope and deadlines. Project Monitoring and Control: Through follow-up meetings will monitor project status, identify corrective actions if necessary to offset the initial plan. Measurement and Analysis: (task 96)
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It must implement a mechanism to collect data storage and analysis of the same, with the aim of being used to inform management of the project, and so the decisions taken can be based on current data. Quality assurance: We will develop a quality plan that will identify and assess those aspects which do not comply with the requirements of the project, in order to solve them. Configuration Management: The goal of configuration management is to establish and maintain the integrity of the work items identifying, monitoring and auditing these elements, such as source code or functional project documents. Ineco is certified in CMMI Maturity Level 2 for Development (CMMI-DEV ML2). Basically, CMMI Organizational Helps Separate Traditionally integrate functions, set process improvement goals and priorities, provide guidance for quality, and provide a point of reference for appraising current processes. In level 2, it covers the following support, project management and engineering areas: Configuration management, measurement and analysis, project monitoring and control, project planning, process and product quality assurance, and supplier management agreement the Consultant has found value in ITS Measuring progress by Conducting CMMI Appraisals as a key to Improve and provide better quality STI services to clients as well as enlarging the customer base of the company due to a CMMI-certified enterprise is Known Widely Followed the expertise and methodology. Results are also more likely to be guaranteed. Looking at it in another way, that Means CMMI certification is a tool to assert the company goodness without proof. Implement process: Functional Requirements (tasks 91,92,93,94 & 95): the Consultant will analyze the needs for the Management Information System (MIS) related to the functions to be performed by each of the teams work and define the most appropriate management systems. Technical specifications (tasks 92, 93, 94 & 95): Detailed definition of technical and detailed specifications shall be used to develop a Management Information System involving for each organization. Evaluation of information systems (task 92): We will assess different commercial management information systems on the market in order to determine what may be the most appropriate to meet the needs of each organization. In case we dont find any commercial application that meets the functional needs and / or economic customer, the Consultant will evaluate the possibility of ad-hoc development. Applications development (tasks 96, 97 & 99): There will be an outlet for those needs requirements or functions that fall outside the coverage of selected commercial applications. Based on the requirements the applications will be developed. Integration and implementation (101): the Consultant is to start-up the Management Information System by integrating with applications, existing
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or/and developed. We will build configuration and security policies of the applications for each organization. (task 97). The Consultant then provides initial data load for functional and technical test to ensure the proper operation of applications. (tasks 98 & 100) Once developed and tested, the integrated applications will be run periodically in the production environment to monitor the correct operation of the MIS. (Tasks 104 & 105) Manuals Development and Training (tasks 102 & 103): the Consultant shall develop several manuals to facilitate adaptation to new systems and training sessions designed to make a correct knowledge transfer.
5.6.2
Financial Management System
The Consultant is to review the financial information management and reporting requirements of the Finance Department of the Authorities and assess about the commercially available accounting software packages. (task 106) According with the financial officers of both Authorities, the Consultant will select a system in each case. (task 107) and support the implementation. We will help with the installation program and will train to the finance departments staff in each organization. (task 108)
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PROPOSED WORK SCHEDULE
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Inception Report Draft - CAAN

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Capacity Development of Civil Aviation Authority of Nepal

INCEPTION REPORT (DRAFT)

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Notes on Document Control

2A. National Plan

2B. Corporate Business

2C.Private Sector Participation

2D.Enhancing NonAeronautical Revenue

6B.Financial Management System

Reports Inception Report Monthly Progress Reports

Component 1. Legal Completion Report

Component 2A. National Plan Completion Report

Component 6: MIS & Finantial Management System Completion Report

Project Completion Report

ANALYSIS OF CURRENT SITUATION

4. 2063) 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

The last Air traffic forecast in Nepal is tabulated below:

International Air passenger Movement in Nepal

Buddha Yeti Agni Tara

Buddha 43.6% Yeti 28.4%

Guna NepalAirline SitaAir Fishtail MountainAir AirDynasty

Corporate Business Planning

1065 143 429 298 870

METHODOLOGY OF WORK Legal

Reviewofexisting plansandregulation Reviewofexisting infrastructures Reviewofexisting Airtransportmarket

AirTrafficForecast: Passengers, Aircraftmovements andcargo International National

1.NationalAir TransportPlan 2.NationalAirports Plan 3.NationalAir SpacePlan 20year developmentPlan

Existing Plans and Regulations.

National Air Transport Plan

PHASEI Current Situationof AirTransport

PHASEII Strategic Analysis

PHASESIII&IV Strategic Planning

DEVELOPMENT POLICY SWOT ANALYSIS STRATEGIC PLAN

NATIONAL AIR TRANSPORT PLAN

National Airports Plan

InternationalAirports 20year Airports InvestmentProgram

STEP 3 NEW AIRSPACE CONCEPT

Corporate Business Planning

OperatingCostfor infrastructuremaintenance Reviewstaffing Proposedof Proposestaffsalarylevels CAAN&Operators

OperatingCost oftheCAAN& Airportand AirNavigation SystemOperators

Opportunities Commercial foradditional Development revenues Programme

HumanResources NewOrganizations tobedeveloped Decision AirportandAir NavigationSystem Operators

Schedule Organization Procedures Testing TrackingProcess Communications Documentation

Human Resources Training Plan

TrainingProgram Methodology MeansofDelivery

Staffselectionfortraining AnnualBudgetTraining Content CoursesDevelopment ShortTermTraining

Means of Delivery (task 73)

MANAGEMENT INFORMATION SYSTEM MIS

ProjectPlanning What to monitor

Replan ProjectMonitoring and Control

Quality and noncompliance issues

Integration and implementation

Financial Management System

PROPOSED WORK SCHEDULE

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