AFRICAN DEVELOPMENT BANK

Language: English Original: English

MIDDLE INCOME COUNTRIES (MIC) TECHNICAL ASSISTANCE FUND PROJECT: NAMIBIA AIRPORT STUDY - FEASIBILITY STUDIES, PRELIMINARY DESIGN AND MASTER PLANS FOR NAMIBIA AIRPORTS

COUNTRY: NAMIBIA

Date: April 2010

Team Leader:

P. Opoku-Darkwa, Transport Engineer, OITC.2

Appraisal Team

Sector Manager (OITC.2): J Rwamabuga Sector Director (OITC): G Mbesherubusa Regional Director(ORSA): A Beileh

M. Benard, OITC.1; A. Babalola, OPSM.3; D. Etienne, OITC.1, K I Mfalila, OSAN.4; Peer Reviewers

TABLE OF CONTENTS

1.

INTRODUCTION
1.1. 1.2. 1.3. 1.4. Background Study Objectives Justification for use of MIC TAF Resources Financial considerations for implementation of HKIA Master Plan Study Component 1.

1 1 2 3
4

2.

DESCRIPTION OF STUDY 2.1. Study Components STUDY COST ESTIMATES AND FINANCING PLAN 3.1. Cost Estimates 3.2. Financing Plan PROCUREMENT 4.1. Procurement Arrangement 4.2. Disbursements Arrangements IMPLEMENTATION strategy 5.1. Proposed Implementation Schedule 5.2. Executing Agency LETTER OF AGREEMENT CONCLUSIONS AND RECOMMENDATIONS 7.1. Conclusions 7.2. Recommendations

4
5

3.

5 5
6

4.

6 6
6

5.

6 7
7 7

6. 7.

7 8

ANNEXES ANNEX 1 MAP OF NAMIBIA, AIRPORT LOCATION ANNEX 2 - PHOTOGRAPHS ANNEX 3 - IMPLEMENTATION SCHEDULE ANNEX 4 COST ESTIMATE SCHEDULE (in USD) ANNEX 5 REQUEST FORM ANNEX 6 LETTER OF AGREEMENT ANNEX 7 ABRIDGED TERMS OF REFERENCE FOR TECHNICAL ASSISTANCE FOR THE ENHANCEMENT OF EXISTING AIRPORT INFRASTRUCTURE
This report has been prepared by Mr P. Opoku-Darkwa, OITC.2 (Ext 3142). Any matters relating to this report may be referred to Mr. J. Rwamabuga, Manager, OITC.2, (Ext. 2181), Mr. G. Mbesherubusa, Director, OITC (Ext. 2034) and Mr. A Beileh, Regional Director, ORSA (Ext 2039).

LIST OF ABBREVIATIONS ADB CSP DANIDA EMP ESMP GRN HKIA ICAO MIC MoWT NAC NDP3 PPP QCBS QBS SADC TAF TOR UA USD = = = = = = = = = = = = = = = = = = = = African Development Bank Country Strategy Paper Danish International Development Assistance Environmental Master Plan Environmental and Social Master Plan Government of the Republic of Namibia Hosea Kutako International Airport International Civil Aviation Organisation Middle Income Countries Ministry of Works and Transport Namibia Airports Company Third National Development Plan Public Private Partnership Quality and Cost Based Selection Quality-Based Selection Southern Africa Development Community Technical Assistance Fund Terms of Reference Unit of Account United States Dollar

GRANT INFORMATION Clients Information BORROWER: Government of the Republic of Namibia (GRN)

IMPLEMENTING AGENCY: Namibia Airports Company (NAC)

Financing Plan

Source ADB (95%) GRN/NAC (5%) Total Cost

*Based on preliminary cost estimate

Amount UA 594,000 UA 31,000 UA 625,000* UA

Instrument MIC Grant NAC Budget

MIC Grant Currency:

Currency Equivalents (April, 2010), 1 UA=11.136 NAD 1 UA=1.518 USD 1 UA=1.126 EURO Proposed Timeframe for Main Milestones Submission of MIC Grant to Country teams: Submission to MIC Grant Committee (OIVP): MIC Grant Submission for Board approval: MIC Grant Approval: Grant Effectiveness: First Disbursement: Last Disbursement: June 2010 July 2010 post- September 2010 September 2011 February 2010 May 2010 June 2010 (Lapse of Time Basis)

ii

HIERARCHY OF OBJECTIVES GOAL: To promote economic and social development by enhancing existing infrastructure to meet increased operational activities of the airports.

EXPECTED RESULTS

REACH/ BENEFICIARIES

PERFORMANCE INDICATORS

INDICATIVE TARGETS AND TIME FRAME Provides the framework to meet Vision 2030/NDP3 targets and time frame.

ASSUMPTIONS / RISKS

IMPACT: Efficient operational Transport system leads to: Financial independence and competitiveness of parastatals (NAC) Relieve government of capacity constraints Creating new SMEs Employment opportunities to rural and urban population Facilitates/Fosters Private participation OUTCOMES: Efficient air transport infrastructure system. Study outcomes: Completed and submitted Final environmental and land-use master plans. Completed and submitted feasibility study and design deliverables in readiness for implementation for HKIA. OUTPUTS Deliverables Feasibility Study Report and Detailed Design of HKIA Terminal Buildings; Environmental Master Plan (Reports/Drawings); Master /Land Use Plan Deliverable (Reports/Drawings)

Namibia economy Environment (wild life impact) Tourism industry Rural and Urban population SMEs and Private investors

Economic growth and productivity (%). Increased Revenue by NAC (% turnover increase) Revenue from tourism sector. number of SMEs lodging & accommodation industry Reduced unemployment (% workforce unemployment) Meet the objectives of section 4.2.2 (Transport Infrastructure) of NDP3 Growth in SMEs competitiveness (No. of new businesses, tax revenues) Readiness for implementation (% design completion) Meets long term objectives (% design completion) Facilitates private sector involvement (%of private sector interest) Meeting the conditions on Climate change

NAC/GRN commitments to adhere to Namibia Vision 2030 &NDP3 goals. Risk: Not meeting the Vision 2030/NDP3 goals Decline in tourism

OBJECTIVES: An output that facilitates enhanced operational efficiencies and capacity, optimises land-use with strict adherence to environment and social parameters.

GRN NAC Population of Namibia Customers/Passengers Local aviation industry

Completion of consultancy services within 12months of contract award. (forecast July 2011)

Timely approval of Grant agreement and effectiveness Risks: Stalled implementation due to funding limitations

ACTIVITIES Consulting Services for developing Feasibility study & design of HKIA (terminal buildings) Reviewing the 2004 feasibility study report, update study, design optioneering and preliminary detailed design. Environmental master plan (8no. airports) - Performing studies and surveys in establishing balance between operations, infrastructure systems and the environment including social systems. Land-use planning (5no. airport) - Studies and surveys on airport operations to develop airport layout that optimises land-use for operational facilities. Costs (000 UA,)* Source FE MIC Fund 282 GRN/NAC 15 Total 297 * including contingencies

Consultant NAC Public (public consultation)

Contract award and completion (May 2010) Timely delivery of outputs (12months). All deliverables meet requirement on readiness for implementation (% design completion) Cost (against output) within budget

Submission of deliverables by July 2011.

Timely delivery of Minimal scope

change. Risk project output.

Assumptions

Delay to the
submission of the completed deliverables by the consultant. Cost escalation Scope change

LC 312 16 328

Total 594 31 625

1.

INTRODUCTION

1.1. Background 1.1.1. The Government of the Republic of Namibia (GRN) has requested financial assistance from the African Development Bank (ADB), proposing to utilise the Banks MIC Technical Assistance Fund facility, to undertake project preparation activities on existing airport infrastructure. Launched in 2004, Namibias Vision 2030 Paper laid out the fundamental framework and development objectives to transform the economic and social landscape for the future. Complementing the Vision 2030 report is the Third National Development Plans (NDP3, June 2008), both aligned with the Banks CSP, in which strategies to enhance transport infrastructure form a key part. 1.1.2. Consistent with GRNs strategy on parastatals to provide effective and efficient transport infrastructure, the National Airport Company (NAC), a wholly state-owned and autonomous enterprise and executing agency, was established to operate eight (8) regional airports. Due to increased aviation and passenger activities, taking into consideration the growth potential of the sector through increased tourism which is a major source of employment, the existing infrastructure has progressively been rendered obsolete with limited operational capacity. 1.1.3. In 2004, a study funded by the Danish Trust Fund, managed by the African Developments Bank, was carried out to develop a conceptual master-plan for the international airport Hosea Kutako International Airport (HKIA) with a limited scope to investigate design concepts and framework for future development of the airport. The remit excluded other airports. 1.1.4. GRNs request for assistance to enable NAC manage and execute the infrastructure improvement programme was formally received in July 2009 accompanied by draft Terms of Reference (TOR) prepared by selected consultants. A project identification mission subsequently followed in early November 2009. The information collated and evaluated forms the basis of the proposal report. 1.1.5. The purpose of the study is to facilitate the upgrade of existing airport infrastructure to a standard that aligns with current and future aviation demands by providing sustainable solutions which at its core also addresses the environmental and socio-economic issues directly impacting the population and the country as whole. 1.1.6. The study constitutes a project preparation activity and falls under the heading of Priority Activities described in relevant parts of section 3.4 of the Banks Revised Guidelines for the Administration and Utilization of the Technical Assistance Fund (TAF) for Middle Income Countries (MIC). 1.2. Study Objectives

1.2.1. The objective of this Study is to develop relevant output of master plans and designs, facilitating enhanced operational efficiencies and capacity, optimise land-use with strict adherence to environment, including climate change, and social parameters. This study, on completion, brings forth deliverables in readiness for future implementation. The associated activities are: a. b. For HKIA, follow-up on the 2004 master-plan study, update and expand the scope as required. For other airports, to have fully developed master-plans (environmental and land-use planning) for the development of regional airports which is to form the basis for future development.

1.3.

Justification for use of MIC TAF Resources

The justification is based on two viewpoints:

i)

GRNs objectives and strategy for development, and ADBs objectives and strategy for positive intervention in Namibia;

Justification based on GRNs strategy

1.3.1. In defining the countrys Vision 2030 targets, objectives and strategies were identified to develop an effective and efficient transport infrastructure that ensure safe operations of transport services. The focus area in addition to enhancing the road network was the development of capacity in the civil aviation sector by recognition of the importance of achieving a balanced transport infrastructure and, given its direct link with tourism, the employment creating attributes of the sector. 1.3.2. In spite of the government efforts to create employment opportunities, unemployment remains high (over 30% of the working population). The tourism industry has traditionally proved a reliable source for income generation and employment for the rural and urban population alike and, with the vastness and remoteness of its attractions, the industry relies heavily on its aviation infrastructure to deliver appropriate services. 1.3.3. GRNs NDP3 acknowledges the significant contributions the air transport infrastructure makes to the economy, integrated with road and rail, and highlights the shortfall of the NDP2 targets in the upgrading of existing aerodromes due to the lack of financial resources. Interlinked with tourism, the improvement of the existing infrastructure is fundamental to the economic well-being of the population, particularly, the rural community. 1.3.4. Aligned with aspiration to promote private-public partnerships and SMEs, NAC is well placed to be the facilitator in engaging the private sector, leveraging its experiences, although at a relatively modest scale so far, in commercial collaborations for development such as retail outlets, car rental facilities, aircraft hangers and storage facilities, etc.
ii)

Justification based on ADB strategy (2009-2013 CSP)

1.3.5. The Banks Country Strategy Paper (CSP) takes a holistic approach on the significance of transport infrastructure development vis--vis addressing the countrys development shortcomings. In order to justify the funding request, it is essential to demonstrate credible linkage between the rationale for intervention and the goals of this development activity. 1.3.6. The CSP prescribes three underlying pillars as a basis for intervention and these are i) Enhancing private sector competitiveness, i) Enhancing rural productivity in the agricultural sectors, and iii) Partnership for Trade and Regional integration. The projects long term aspirations which is to be realised upon completion of the implementation phase and commencement of subsequent operational activities, is consistent with all three pillars. Some of the linkages with pillars are outlined in below. 1.3.7. The project will strengthen the capacity of the private sector (including SMEs) to improve productivity of the countrys human resources, create employment opportunities and increase income levels. It is also to complement the diversification programme of the government away from the reliance on mineral sector and stimulate development at local and regional level. 1.3.8. The significance of tourism to the economy and the direct association with the aviation sector is a high-employment generation tool and facilitates growth of SMEs such as B&Bs, small lodges, guest houses, car rental and specialist retailers etc, to gain the opportunity to enter mainstream tourism thus creating new investment opportunities and local entrepreneurship. The Banks aspiration to enhance private sector capacity and competence is complementary to the anticipated short to medium-term demands in the anticipated growth in tourism.

1.3.9. With regards to partnership agreements and joint ventures, NAC has implemented several strategic infrastructure and commercial developments with the aim of improving its overall service delivery. Projects have been undertaken in collaboration with private developers aligned with the modern concepts of Public Private Partnerships (PPP). The business environment potentially therefore lends itself to a PPP approach at the implementation phase as well as operational level. 1.3.10. While the road network serve a greater part of the country, an integrated air transport infrastructure complements the conventional road and rail modes of transport for bulk haulage. The ease to access markets with less bulky agricultural produce is an incentive to local farmers. For example, Walvis Bay Airport is at a location that forms part of the Namibia Processing Zone and is intended to serve as a major export hub of fish and other resources. 1.3.11. Typical of other regional airports, there is potential for expansion and infrastructure such as access roads and cargo-handling facilities to add value and boost functionality by serving the existing railway. For example, container depots are planned at Ondangwa Airport to interlink between Ondangwa, Oshikango and Oshakati. Other airports have storage facilities for cargo to Angola and serve the tourism industry as hub for the chartered flights for tourist and businesses attracted by the game parks of Khaudom, Mahango, Popa Falls and Buchman land. Katima Mulilo Airport is the gateway for the tropical Caprivi region, located close to the Zambesi River, northeast of the country, and serves other attraction in Botswana and Zimbabwe. It also serves as a refuelling hub for air traffic from South Africa en route to Central Africa. There is an aspiration by NAC to upgrade the access road to the airport. 1.3.12. With particular reference to the international airport HKIA, some improvement initiatives on the terminal building such as duty free facilities, tourism centres, car rentals and retail outlets, has enhanced functionality to a degree that contributes to the NACs financial bottom-line and employment-creating capability. 1.3.13. The Bank also acknowledges the constraints that currently prevail in forming sustainable partnerships with Namibia citing the competition with other multilateral and unilateral institutions as a contributing factor. The commitment of GRN, to ensure the benefits of the enhancement programme is materialised, was discussed and documented during the mission. With the desire to enhance relationship and ultimately contribute to addressing the social challenges of poverty and unemployment, this financial assistance, if granted, provides the Bank with the opportunity to position itself and enhance its effectiveness in sustainable investment in the country. 1.4. Financial considerations for implementation of HKIA Master Plan Study Component 1.

1.4.1. The study covered in this proposal report does not include a financial analysis component. The purpose of this section is to provide supplementary information, in support of the grant request, on the financial considerations and activities independently undertaken by NAC to evaluate the financial challenges in the implementation of terminal building extension of HKIA. Although the financial analyses fall outside the scope of this report, this section is included to appreciate the viability of the project, albeit based on a previous study and subject to an update. This section on financial consideration is therefore considered as complementary, yet key, information to support this proposal report. 1.4.2. Since commencing operations in 1999, NAC has become one of the flagship products of the governments strategy to reform the parastatals to boost competitiveness and efficiency within the transport sector. As part of the strategy for growth, NAC commissioned and funded an appraisal in 2006 to assess the financial viability on HKIA terminal building extension scheme based on the master plan previously developed in 2004. The appraisal was executed by a specialist consultant Consultancy Services Africa (CSA) of South Africa with the remit to develop a Business Plan that analyses the financial strength of NAC based on current (2004) and potential operational capability. The Business Plan report, now obsolete and subject to review and update, was to form the basis for potential negotiations with interested financial institutions in the evaluation of NAC financial status as a going concern and its ability to service any credit facilities. The business plan which included financial analysis took into consideration several factors such as:

Revenue growth and trend based on forecast in passenger traffic and growth in business environment

The current and future operational expenditure and budget Inflationary factors Sensitivity analysis Financial risks to NAC revenue stream and operations Capital development projects under the NAC portfolio Passenger and aircraft movement projection, updated forecast to 2006 Cost estimates of scheme (2007 figures based on the 2004 master plan) Proposed draw-down, payback period of loan facility.

1.4.3. Based on assumed parameters, some covered in the preceding paragraph, the report concluded the scheme as being financially viable citing the revenue generation capability and capacity of HKIA operations as an indication of the profitability to successfully service credit facilities and implement the project. The report makes no recommendation on the financial instrument to fund the project but rather focused its conclusion on the financial health of NAC. 1.4.4. For the purpose of aligning this MIC grant request and its objectives with the financial viability of the project, the current business plan report requires further review and update to account for the updated scope of the scheme that enhances the functionality of the airport and the associated revised cost estimate. The revised business plan would be commissioned, managed and funded independently by NAC and is intended to commence in earnest, subject to the successful outcome of this application. The findings of the business plan will subsequently form the basis for any future funding request to prospective financial institutions or investors (private, bilateral or multilateral institutions) and which the Bank may wish to participate. 2. 2.1. DESCRIPTION OF STUDY Study Components

2.1.1. The study covers a total of eight (8no) airports located in Windhoek (Hosea Kutako International and Eros Airports), Walvis Bay, Keetmanshoop, Luderitz, Rundu, Katima Mulilo and Ondangwa. The study will be managed by the Namibia Airports Company (NAC), the Executing Agency and designated infrastructure owner. The output would determine final scope of detailed design and, in some cases, scope of works on future implementation. 2.1.2.
i)

The study components are summarised as follows: Feasibility Studies and Basic Design of Terminal Building for HKIA

Reviewing the 2004 Feasibility Study Report to permit an updated feasibility study, design optioneering and preliminary design to be carried out. Key Outputs: Feasibility Study Report, Preliminary Detailed Design Deliverable, Works Implementation Programme and Engineers Estimate.

ii)

Preparation of Environmental Master-Plan for NAC Airports (8no. Airports) ;

Performing studies and surveys in establishing balance between air-traffic and infrastructure systems and the environment including climate change and natural resources, ecological and social systems and wildlife, considered in unison with future airport developments. Key Output: Conceptual Planning Report, Detailed Environmental Master Plan covering all NAC airports.
iii)

Studies for upgrading (Master Planning & Land-Use Planning) of NAC Regional Airport (5no. Airports).

2.1.3. Performing studies and surveys that consider all components of an efficient operational airport based on sound engineering, economic and environmental information to create an airport layout that optimises land-use for operational facilities while taking into account future development. Key Output: Inception Report, Conceptual Planning Report, Draft and Final Master Plan and Future Land Use Plan Reports. 2.1.4. An abridged TOR is provided Annex 6. A detailed TOR will be prepared and submitted by the Applicant prior to contract award to ensure the project complies fully with the relevant requirements of the Banks guidelines.

3. 3.1.

STUDY COST ESTIMATES AND FINANCING PLAN Cost Estimates

3.1.1. The total cost of the study based on estimated fee proposals provided by consultants, net of taxes and duties excluding contingencies, is estimated as US$947,500 (UA596,000 approx) with a proposed local and foreign exchange cost components of US$497,000 (UA312,800 approx) and US$450,000 (UA283,200 approx) respectively. Cost per study component, including five (5) percent for contingency, is provided in Table 3.1 below. The corresponding preliminary cost breakdown schedule (in USD) per study is provided in annex 4. Table 3.1- Cost Estimate: Breakdown per Study Component
USD (million) UA(million)

Consulting Services COMPONENT HKIA Feasibility Study and terminal building design Environmental Master Plan (8no. Airport) Master-Plan/Land Use Plan (5no. Airport) Subtotal Contingencies (5%) Total
1

FC 0.4 0.05 0 0.45 0.023 0.473

LC 0.047 0.25 0.2 0.497 0.025 0.522

TOTA L 0.447 0.3 0.2 0.947 0.047 0.995

FC 0.252 0.031 0.283 0.014 0.297

LC 0.030 0.157 0.126 0.313 0.016 0.328

TOTA L 0.281 0.189 0.126 0.5961 0.030 0.625

November Rates US$1.59 = 1 UA

3.2.

Financing Plan

3.2.1. The contribution by the fund is based on 95%:5%' split between the Bank and GRN respectively subject to the Banks maximum contribution of UA600,000 sourced from the MIC-TAF. The five (5) percent will be contributed by GRN/NAC from its own funds. The maximum contribution from the fund, net of taxes and including contingencies, is estimated as UA 594,000 (table 3.2).

Funding Source MIC (95%) GRN/NAC (5%) Total

Table 3.2 Financing Plan US$ (million) FE LC TOTAL 0.449 0.496 0.945 0.024 0.026 0.050 0.473 0.522 0.995

UA(million) FE LC 0.282 0.312 0.015 0.016 0.297 0.328

TOTAL 0.594 0.031 0.625

4. 4.1.

PROCUREMENT Procurement Arrangement

4.1.1. The procurement plan including type of contract, consultant selection and review processes will be in accordance with the Banks Rules and Procedures for the Use of Consultants. The procurement of the consultancy services will be undertaken on the basis of shortlisted firms through expression of interest evaluated by the Executing Agency in accordance with Banks rules and procedures. 4.1.2. The Request for Proposals including all respective TORs will be reviewed by the Bank prior to submission to the short-listed consultants.
Table 4.1- Procurement Arrangements (in UA) UA(million) Consulting Services COMPONENT Total Total [ ] figure in bracket financed from MIC TAF. Selection 0.625 [0.594] 0.625 [0.594] Non-banking funding TOTAL 0.625 0.625

4.1.3. The contract will be let on a Lump Sum contract basis with fixed and reimbursable components. Table 4-1 shows the total procured amount of the study without any external funds. Any increase in cost over and above the total estimated cost will be additional to NACs five (5) percent contribution. 4.2. 4.2.1. methods: Disbursements Arrangements The disbursement arrangements for the MIC Funds will be either of the following

The Direct Payment Method The Reimbursement Method The Special Account Method

4.2.2. All disbursements will be subject to the Banks rules as set out in the Banks Disbursement Handbook. The Banks Disbursement Rules including the rules on suspension of disbursements will apply.

5. 5.1.

IMPLEMENTATION STRATEGY Proposed Implementation Schedule

5.1.1. The expected duration for the study is twelve (12) months from the date the contract becomes effective on the basis or assumption that critical path activities commence simultaneously. The tentative programme is shown in table 5.1 below.

Table 5.1 - Implementation Schedule Activity 1. Board Approval of MIC Trust Fund 2. Issue of RFP to Consultants 3. Receipt/Review and Approve of Proposal 2 4. Contract Award (all components) . 5. Completion/submission of Final Environmental Master Plan (8no. Airports) - 9 months from start date. 6. Completion/Submission of Final HKIA Feasibility, Mater Plan & Design - 12months from start date 1 7. Completion/Submission of Final Master-Plans &Land-Use (5no. Airports) - 12 months from start date 1 1.Critical path activities 2.Start date = date contract become effective Responsibility ADB NAC NAC/ADB NAC NAC/Consultant NAC/Consultant NAC/Consultant Target Dates June 2010 July 2010 Aug 2010 September 2010 February 2011 September 2011 September 2011

5.2.

Executing Agency

5.2.1. The Executing Agency, Namibia Airports Company (NAC), will manage the delivery of the study from inception to completion and will assign a competent senior staff member as the Project Coordinator. The nominated person will ensure consistency and harmonisation of all the study components, ensure compliance with project remit and will be the NAC contact person for all correspondence with the Bank.

6.

LETTER OF AGREEMENT

6.1.1. Upon approval of grant request, a Letter of Agreement will be drafted by the Bank (GECL) in accordance with the format provided in Annex 3 of the Guidelines for Administration and utilization of the Technical Assistance Fund for MIC and signed by authorised representatives of the Bank and GRN. The latter will be a representative from the Ministry of Finance signing on behalf of GRN. A template of the Letter of Agreement is drafted and provided in Annex 6 of this document.

7. 7.1.

CONCLUSIONS AND RECOMMENDATIONS Conclusions

7.1.1. In the current CSP (2009-2012), the Bank cites new strategy to address poverty, inequality and unemployment. In addition, the CSP stipulates the enhancement strategies to be adopted by the Bank to strengthen its position of competitiveness to expand operations in Namibia. These complementary strategies are linked to the three major pillars identified in section 15 of the CSP which is to enhance the competitiveness and growth of private sector (SMEs) as well as offering diversification opportunities from mining into areas such as tourism. 7.1.2. In spite of the poverty, inequality and employment challenges, the Bank recognises aspects of sound governance, low crime and natural landscape as complimentary attributes that can be leveraged. The development in the aviation sector has its lifeline in the tourism industry which consequently provides the much needed employment and business opportunities for the population and SMEs respectively. The impact of tourism is countrywide affecting both rural and urban population and this assistance facilitates the means to improving the social and economic conditions of the greater population. 7.1.3. The proposed study, for which finance is being sought, constitutes a significant phase in design and feasibility study that brings the enhancement programme of the airports much closer to reality and ultimately meeting some of the countrys key objectives and that of the Bank. It also puts the Bank in the prime position for sustainable and future investment in Namibia.

7.2.

Recommendations

7.2.1. It is recommended that a grant not exceeding UA 594,000 from the resources of the MIC TAF be extended to the Government of the Republic of Namibia to carry out the study described in this memorandum.

ANNEXES

ANNEX 1 MAP OF NAMIBIA, AIRPORT LOCATION

(Indicatively Showing Airport Locations)

Ondangwa Rundu Katima Mulilo

Walvis Bay

HKIA & Eros

Luderitz

Keetmanshoop

This map was provided by the African Development Bank exclusively for the use of the readers of the report to which it is attached. The names used and the borders shown do not imply on the part of the Bank and its members any judgement concerning the legal status of a territory nor any approval or acceptance of these borders.

ANNEX 2 - PHOTOGRAPHS

Figure 1: Eros Airport: Land Use and Master Planning to optimise land use and revenue generation

Figure 2: Eros Airport: Land Use and Master Planning to optimise land use and revenue generation

Figure 3: HKIA Existing Terminal Building (Terminal 2) Feasibility Study/Master Planning/Design/Environmental Master Planning

Figure 4: HKIA Existing Terminal Building (Terminal 1) Feasibility Study/Master Planning/Design/Environmental Master Planning

ANNEX 3 - IMPLEMENTATION SCHEDULE

Activity Board Approval of MIC Trust Fund/Letter of Agreement Signed Issue of RFP to Consultants Receipt/Review and Approve of Proposal Contract Award (all components) Completion/submission of Final Environmental Master Plan Completion/Submission of Final HKIA Feasibility, Mater Plan & Design Completion/Submission of Final Master-Plans &Land-Use Jun10 Jul10 Aug10 Sep10 Oct10 Nov10 Dec10 Jan11 Feb11 Mar11 Apr11 May11 Jun11 Jul11 Sept11 Responsibilit y ADB NAC NAC/ADB NAC NAC/Consul tant NAC/Consul tant NAC/Consul tant Target Dates Jun- 10 Jul-10 Aug-10 Sept-10 Feb-11 Sept-11 Sept-11

----------------- ADB responsibility;

Others

(NAC/GRN/Consultant)

ANNEX 4 COST ESTIMATE SCHEDULE (IN USD)

Preliminary Cost Estimate for HKIA Feasibility Study and Basic Master Plan-Study Component 1 Professional Fee (international Consultant) Man days Project Leader Lead Airport Architect Airport Architects Lead Airport planner Airport Planner Lead Airport Civil/Structural Engineer Airport Engineers Quantity Surveyor 15 60 120 50 120 40 100 15 Cost reimbursable Travels, Misc Rate 1300 1200 600 1200 600 1200 600 600 Cost (USD) 19500 72000 72000 60000 72000 48000 60000 9000 International air travel Domestic travel Per diem Misc (reporgraphics,etc 10 20 50 1 1600 50 100 12000 16000 1000 5000 12000 TOTAL No Rate USD Cost

Subtotal

520

$412,500

Sub-Total

$34,000

$446,500

Preliminary Cost Estimate for 8no Airports Environmental Master Plans - Study Component 2 Professional Fee (International/Local Consultant) Man days Project Leader Lead Airport/Transport Planner Lead Environmental Specialist Environmental Specialist - Biologist Environmental Specialist Noise specialist Soil and Ground Specialist Socio-Economic Specialist 20 40 50 40 40 40 50 Cost reimbursable Travels, Misc Rate 1300 1200 1200 900 900 900 600 Cost (USD) 26000 48000 60000 36000 36000 36000 30000 International air fares Domestic air travel Per diem Misc (reprographics, car rentals 10 20 25 1 1500 250 100 5000 15000 5000 2500 5000 TOTAL No Rate USD Cost

Subtotal

280

$272,000

Sub-Total

$27,500

$299,500

Preliminary Cost Estimate for 5no. Airports Master Plans and Land Use -Study Component 3 Professional Fee (International/Local Consultant) Man days Project Leader Lead Airport Planner Airport Planners Lead Airport Architect Airport Architect Airport Infrastructure Engineer Transport Economist 15 30 100 30 60 30 60 Cost reimbursable Travels, Misc Rate 1000 900 450 900 450 450 450 Cost (USD) 15000 27000 45000 27000 27000 13500 27000 International air travel Domestic air travel Per diem Misc (reprographics, car rentals 10 20 40 1 600 250 100 5,000 6,000 5,000 4,000 5,000 TOTAL No Rate USD Cost

Subtotal

325

$181,500

Subtotal

$20,000

$201,500

TOTAL ESTIMATE COST, USD (EXCLUDING CONTINGENCIES)

$947,500

ANNEX 5 REQUEST

FORM

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ANNEX 6 LETTER OF AGREEMENT AFRICAN DEVELOPMENT BANK

13 Avenue du Ghana B.P. 323 1002 Tunis Belvdre Tunisie Telephone: (216) 71 102 181 Fax : (216) 71 333 675 Web Site : www.afdb.org

The Permanent Secretary, Ministry of Finance, Private Bag 13295 WINDHOEK, NAMIBIA Dear Mr C Schlettwin: LETTER OF AGREEMENT: UTILISATION OF MIC TECHNICAL ASSISTANCE FUND TO FINANCE FEASIBILITY STUDIES, DESIGN AND MASTER PLANNING OF NAMIBIA AIRPORTS I am writing on behalf of the African Development Bank to indicate the Banks decision to provide to the Republic of Namibia, (the Recipient) a Grant in an amount not exceeding UA 594,000 (Five Hundred and Ninety Four Thousand Units of Account) (the Grant) from the Banks Middle Income Countries Trust Fund. The purpose of the Grant is to finance the Namibia Airport Study activities. The Grant is being provided for the purposes and on the terms and conditions set forth in the Attachments hereto, and the Recipient hereby represents, by confirming its agreement hereunder, that it is authorised to contract, withdraw, and utilize the Grant for the said purposes and on the said terms and conditions. The provision of the Grant does not constitute or imply any commitment on the part of the Bank to assist to finance or part finance any project developed as a result of the study for which the Grant is provided. Please confirm your agreement with the foregoing and the conditions and terms attached hereto, on behalf of Republic of Namibia, by signing, dating, and returning to us the enclosed copy of this letter. This agreement will become effective on the date of countersignature by the Bank.

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Yours Sincerely, AFRICAN DEVELOPMENT BANK

Date: Vice President, Operations Infrastructure, Private Sector & Regional Integration

AGREE ON BEHALF OF:THE REPUBLIC OF NAMIBIA

Date:

C Schlettwin The Permanent Secretary Ministry of Finance

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ANNEX 7 ABRIDGED TERMS OF REFERENCE FOR TECHNICAL ASSISTANCE FOR THE ENHANCEMENT OF EXISTING AIRPORT INFRASTRUCTURE

A. GENERAL INFORMATION 1. INTRODUCTION 1.1. Background

1.1.1. The Government of Republic of Namibia has a vision for the future in the Vision 2030 Paper addressing medium and long term objectives as well as the policies and strategies to meet those objectives. The transport sector is identified as critical to those visions and the Government, in a bid to redress the shortcoming, published the White Paper on Transport Policy in 1995 and the Third National Development Plan (NDP3) setting out recommendations for implementation. One of the bold strategies in support of the objectives in respect of the proposed study included:
a.

b.

Review of the parastatals in the sector by commercialising functions that can be more efficiently performed in a commercial environment. Draw up and implement a master plan of the development for each of the regional airports/aerodromes of the airport company Namibia Airports Company (NAC).

1.1.2. It is on the basis of the Governments vision that the NAC was formed under the Airport Company Act, Act 25 of 1998 as an autonomous 100% state-owned entity with the Ministry of Works and Transport as the regulatory body. The NAC is responsible for the operations and management of licensed regional airports in Namibia. The proposed study is endorsed by the Government of the Republic of Namibia 2. NAMIBIA AIRPORTS COMPANY 2.1. Introduction

2.1.1. The NAC commenced operations in February 1999 after the Airport Company Act, Act 25 of 1998 came into force. The main objectives are to ensure:

The arrival, surface movement, parking and departure of aircrafts; The servicing of aircrafts, including the supply of fuel and lubricants; Ground handling of aircrafts, passengers, baggage and cargo;

2.1.2. The key focus areas to achieve the above objectives:

Infrastructure development, maintenance, technology and modernisation; -1-

Aeronautical revenue growth; Commercial revenue growth; Cost efficiencies and internal processes and; Human capital development Commercial revenue growth

2.1.3. The NAC is a member of the Airport Council international (ACI) and the International Air Cargo Association (TIACA). The company is also committed to observe and follow the ICAO (International Civil Aviation Organisation) conventions and practices regarding airport operations and management.
2.2.

Governance

2.2.1. NAC functions under the Board of Directors, appointed by the Ministry of Works and Transport in his/her capacity as the Portfolio Minister. The Board appoints the Chief Executive Officer, CEO, tasked with managing and exercising control the company operations. The Board formulates policies and strategies that guide the company towards attaining it vision and mission. 2.2.2. NAC recognises the need for a strategic corporate focus to better enable it to serve it clients and improve its financial sustainability and is guided by high standard of ethics and integrity to industry benchmarks and guidelines. It is also guided by Act 25 of 1998, the countrys Vision 2030 and Performance Agreements with shareholders.
2.3.

Airports

2.3.1. The NAC owns and manages the operations of eight (8) airports and they are; Hosea Kutako International, Eros, Walvis Bay, Keetmanshoop, Luderitz, Rundu, Katima Mulilo and Ondangwa airports 2.3.2. NCAs operational partners are the international and domestic airlines and aircraft operators, government agencies, private retailers as well as concessionaires licensed to operate at the airport premises. NAC values the importance of developing and maintaining good infrastructure and facilities at its airports to maintain world-class standards in line with its master plans and the company has been undertaking several strategic infrastructure and commercial development project with the aim of improving its overall service delivery. Projects have been undertaken in collaboration with private developers and investors aligned with the modern concepts of Public Private Partnerships (PPP). 2.3.3. The features of each airports and how they serve and impact the countrys economy are described below.

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a.

Hosea Kutako International Airport(HKIA)

HKIA is the only international airport situated 45km east of Windhoek, the capital of Namibia. It complements the airport capacity of other hubs on the Southern African region. It handles over half a million passengers annually and over fourteen thousand aircraft movement with frequent connections to Johannesburg, Cape Town and Luanda (Angola). The schedules airlines connect HKIA to international hubs in Europe and other regional destinations. Recent terminal building improvement has seen the some expansion and refurbishment to enhance customer experience such as public parking, vat refund facilities and retail outlets.
b.

Eros Airport(HKIA)

Eros airport is located in Windhoek, 5km from the business district and classified as the NACs busiest airport in terms of aircraft movement. It is the centre of aircraft maintenance and is the hub for general and leisure aviation serving the tourism industry. It has key facilities for aircraft operations such as cargo handling, fire stations, ground handling as well as land for prospecting commercial developer for hangers, warehousing and offices. Recent works completed at the airport include: renovation of office block for customs and excise, general upgrading of terminal building; car park facilities and construction of air cargo terminal. Other projects are planned following the development of the mater-plan.
c.

Walvis Bay Airport

Located in Walvis Bay, 15km east of the town. The airport has undergone some upgrading in its facilities to handle wide-bodied aircrafts with the objective of elevating the airport to commensurate as the second international airport. Expansion of the terminal building is also planned to coincide with the projected growth in passenger numbers. Other aviation facilities have been upgraded with state-of-the-art landing system for flight operations given the prevailing and persistent overcast weather conditions at its location. In a location that forms part of the Namibias Economic Processing Zones (NEPZ), the airport is intended to be the major export hub of fish and other resources to the rest of Africa and Europe.

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d.

Ondangwa Airport

Ondangwa airport is located in the north-central part of the country with a catchment area that includes regions of highest population density (Oshana, Oshikoto,Ohangwena, Omusati, Kunene) and serves as the fastest air-link into southern Angola. Typical of other regional airports, there is potential for expansion and project such as new terminal building and services, access roads and passenger- and cargo-handling facilities, to name a few, are envisaged. Container depots are also planned to add value by serving the existing railway interlink between Ondangwa, Oshikango and Oshakati.
e.

Keetmanshoop Airport

The town of Keetmanshoop is some 500km from the capital Windhoek and the airport is the home of the Namibia Aviation Training Academy (NATA). There is currently an aspiration to make this airport the aircraft maintenance centre for Namibia given its potential capacity and physical conditions. It has also been identified as having the potential to serve as the tourism hub for charter operations after the proclamation of mining town such as Oranjemund and Rosh Pinah. It also has a customs and immigration services and is able to handle cross-border traffic into southern Namibia.
f.

Luderitz Airport

Luderitz is located on the coast and in proximity to the mines of Rish Pinah, Oranjemund and Elizabeth Bay hence the airport has significant economic importance to the country. There has been steady traffic growth at the airport over the years therefore required upgrading works is required which is align with the proposed study. Other upgrading activities to enable night operations and overcome adverse overcast weather conditions have been implemented.
g.

Rundu Airport

Rundu airport is located 5km southwest of the town of Rundu in the region bordering on southern Angola and has the benefit of vast land setting ideal for storage facilities and unlimited potential infrastructure development. It has excellent storage facilities for cargo to Angola and serves the tourism industry as hub for the chartered flights for tourist and businesses attracted by the game parks such as Khaudom, Mahango, Popa Falls and Buchman land.

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h.

Katima Mulilo Airport

Katima Mulilo Airport is the gateway for the tropical Caprivi region and the home-town of the African BIG 5 attraction. It is located close to the Zambesi River, northeast of the country, and serves other attraction in Botswana and Zimbabwe. It also serves as a refuelling hub for air traffic from South Africa en route to Central Africa. There is an aspiration by NAC to upgrade the access road to the airport. 3. THE PROPOSED STUDY 3.1. Introduction

3.1.1. To upgrade the existing airport infrastructure to a standard that aligns with the economic and social development in the country, taking cognisance if the environmental issues, while generating business opportunities for all stakeholders. It is to meet future aviation demands while providing a sustainable solution that addresses the environmental and socio-economic issues. 3.1.2. The study has three components each requiring the services of specialised consultants which in combination provide NAC with an aggregate output to facilitate the implementation of the enhancement programme on all eight regional airports. Although some improvements have been made to the physical facilities, airport operations and services offered to customers, currently falls short of meeting present and future demands as well as operational requirements associated with increased air traffic and usage. The intended purpose of the proposed study is to address the shortcomings and formulating appropriate solutions in aspects relevant to the enhancement objectives.
3.2.

Study Interface

3.2.1. To ensure an integrated output, each consultant shall work very closely with key stakeholders as deemed appropriate including the community, public and private institutions, civil society organizations, international statutory and regulatory bodies, governmental and nongovernmental organisation etc. The views, preferences and limitations of these groups shall be taken into account in the study.
3.3.

NAC Coordinator

3.3.1. NAC will appoint a Coordinator to oversee the study to ensure close integration and compliance with all aspect of the study remit. The Coordinator will be NAC main contact with all consultants and other parties involved in the Study and shall participate actively in the execution, administration, monitoring and supervision of the activities of the study. Although it is the responsibility of NAC to mange the interface of the studies, it is expected that respective Consultant maintain open dialogue among all parties to ensure that fully integrated and complete output is accomplished. -5-

B. TECHNICAL INFORMATION 4. THE STUDY 4.1. STUDY COMPONENTS

4.1.1. The objective of this Study is two-fold, each to develop the relevant output of master plans and designs to bring forth deliverables in readiness for future implementation. The consultancy services being procured broadly cover the following:
a.

b.

For HKIA, follow-up on the 2004 master-plan study, expanding the scope and updating as prescribed, in readiness for future implementation. For other specified airports, to fully prepare master-plans for the development of regional airports that will subsequently form the basis for future design and implementation.

The scope of each service component described below highlights the key areas of interest. It is advisable that, where necessary, clarification of the scope is sought with NAC prior to pricing and commencement of work.
4.2.

Consultancy Services Components 1- Feasibility Studies and Basic Design of Terminal Building for HKIA

4.2.1. The scope of services is to review the 2004 Feasibility Study Report (enclosed) prepared by others to facilitate development of an updated study, perform design optioneering and option selection followed by preliminary design for the upgrading of the passenger terminal complex at Hosea Kutako International Airport (HKIA). Based on the above, the following is envisaged as the three key activities.
a.

Investigate two design alternatives for terminal buildings and shall comprise: A revision to the layout of the existing Terminal 2 (T2) and Terminal 1 (T1) buildings connected by a new link structure the two buildings. T1 and T2 will be designated arrival and departure building respectively. A new T1 building and new link structure to the existing T2 building with the T2 layout upgrades to suit.

b. c.

Prepare an outline design of the two alternative options described in item a) above. Prepare preliminary detailed design of the preferred and selected option.

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4.2.2. The scope excludes studies on airport infrastructure external to the terminal buildings, such as but not limited to, flight stands, apron, runways, access roads, parking, exterior signage and lighting. These exclusions are typically facilities specific for aircraft operations and or facilities that have no direct passenger interface. 4.2.3. It is expected that a business plan will be prepared following completion of the study to ascertain the financial viability of the project, if implemented, and will consequently form the basis for developing a financing strategy for the project. Proposed Specific Activities 4.2.4. The following are the activities proposed to execute the works: The consultant shall:
a. b.

c. d. e. f. g.

Review the existing master-plan of 2004 and ascertain through dialogue with NAC current development needs, objectives and trends. Update forecast and analysis of flight traffic, passenger flow, security measures, immigration and emigration and all other functions and activities relevant to the layout of the terminals buildings Prepare drawings and or sketches, as appropriate, of the design possibilities for the terminal complex for discussion with NAC Produce a 1:500 drawing (plans, elevation, etc.) proposals of the terminal complex Based on the preferred/approved design, develop programme and budget for the executing preliminary detail design. Develop and complete the master-plan as per the programme and budget. Develop and complete preliminary detailed design including technical specifications as per the programme and budget.

Proposed Output 4.2.5. The output for the works shall include but not limited to:
a. b. c.

New Feasibility Study Report (Master-Plan), Preliminary Detailed Design Deliverable (Drawings, Technical specifications etc) , Programme and Engineers Estimate for future implementation

Proposed Schedule 4.2.6. This activity is schedule for completion twelve (12) months from the date contract becomes effective.

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Proposed Resource 4.2.7. The consultant shall in general have the following expertise to carry out the services: Project Leader ((20yrs minimum experience) Lead Architect (15yrs minimum experience) Architects (local and international mix) Lead Airport Planner (15yrs minimum experience) Airport Planner Lead (Airport) Civil/Structural (15yrs minimum experience) Civil/Structural Engineers Quantity Surveyor

Unless stated otherwise, all specialists shall have at least 10years of working experience.
4.3.

Consultancy Services Components 2 -Preparation of Environmental MasterPlan for NAC Airports (8no. Airports);

4.3.1. NACs objectives is put focus on the environmental issues associated with the development of the airport to ensure an environmentally sustainable development is achieved. Based on the above, the consultant shall prepare a set of comprehensive Environmental Master Plans for the eight airports in question that meets, as a minimum, the objectives below. 4.3.2. For each of the activities described below, the consultant shall include in the EMP, proposed actions for sustainable development of the airport and implementation plans.
a. b. c. d. e. f. g. h.

Consideration for the natural resources and environment in the greater airport areas Establish a sustainable balance between air-traffic systems and infrastructure on one side and the ecological and social systems on the other. Improving safety through a better separation air-traffic and the surrounding nature such as wildlife To provide an environmental framework for future planning, development and investments. Proposed activities Establish framework for the EMP with NAC Perform desk study of all relevant documents, rules and regulations, development plans and drawings. Assess ALL relevant aircraft-related activities at the airports including but not limited to fuel supply, storage facilities, fuelling procedures, noise, emissions, etc against international, regional and national requirement. -8-

Carry out a Strategic Environmental Assessment (SEA), a tool developed by the African Development Bank, to ensure integration of social and economic aspects into the study thus providing a holistic appreciation of the impact and developing alternative where necessary j. Assess ALL relevant operations procedures at the airport including but not limited to maintenance procedures, waste handling, wastewater treatment, contamination, etc. k. Assess ALL risks associated with bird and animal strikes. l. Assess ALL activities associated with the runway system including but not limited to sue of herbicides, energy usage, emission of service vehicles, surface water contaminations, etc m. Assess ALL relevant activities associated with the use of the Terminal Building including, but not limited to, water supply system, energy system, waste-water and solid waste handling systems n. Assess ALL aspects of social impact associated with future development including but not limited to, economic effects of the airport in the region, the impact on local community (employment, HIV/AIDS etc), the stress effect from the noise generated by aircraft activities o. Assess the gender-related implication of the increased operational capacity of the infrastructure. This will not to be limited to the implementation works but the rather the employment opportunities generated, particularly by a potentially vitalized leisure tourism industry. p. Assess the threats of climatic change, near term and long term, locally and globally, of the airports development as a result of the forecasted growth in air traffic at some selected airport.
i.

Proposed Output 4.3.3. The output for the works shall include but not limited to:
a. b.

A set of final and detailed Environmental Master Plans/Report covering all NAC airports with each airport covered by a separate EMP. Drawings, images, technical investigation data, etc.

Proposed Schedule 4.3.4. This activity is schedule for completion six (6) months from the date contract becomes effective.

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Proposed Resource 4.3.5. The consultant shall in general have the following expertise to carry out the services: Project Leader ((20yrs minimum experience) Lead Environmental Specialist Environmental Specialist - Biologist with local experience* Environmental Specialist Climate Change & Noise specialist with international and local experience* Soil and Ground Specialist Socio-economic Specialist * Airport/Transport Planner

Unless stated otherwise, all specialists shall have at least 10years of working experience. *A minimum of 5yrs of local experience is required.
4.4.

Consultancy Services Components 3- Studies for Upgrading (Master Planning & Land-Use Planning) of NAC Regional Airport (5no. Airports).

4.4.1. This study is to be carried out on five (5) airports; Keetmanshoop, Luderitz, Rundu, Katima Mulilo and Ondangwa airports. The scope covers studies and surveys that consider all components of an efficient operational airport based on sound engineering, economic and environmental information to create an airport layout that optimises land-use and operational facilities while taking into account future development. 4.4.2. As minimum, the activities for the preparation of the master and land-use plans for each airport shall be based on the following key areas. Consideration for a medium and long term planning period of twenty (20) and thirty years respectively as well as short-term intervention needs. The latter is necessary to address immediate issues related to say operational safety in compliance with ICAO requirements. Familiarisation with previous master plan and land use plan as well as NAC current planning documents and needs.
a. b. c.

Identifying the future and present needs of the airport users taking into account latest airtraffic and passenger movement data. Identifying the existing infrastructure facilities against new safety standards and norms Although not exhaustive, it is vital that the physical conditions, integrity and functionality of all the facilities are fully appreciated and understood. In the context of - 10 -

d. e. f. g. h. i. j. k.

airport master-plan development, the following facilities are to be included in long-term development scenario Runways, aircraft movement areas and parking aprons Passenger terminal building in as far as interface with external infrastructure and aircraft operations Cargo terminal and air traffic control buildings Visual and non-visual navigational aids Fire, crash and rescue services Utility and telecommunication services Car parking areas and road accesses Perimeter security

Proposed activities 4.4.3. In achieving the above, the following activities are envisaged,
a. b. c. d. e. f. g. h.

Confirmation with NAC on objectives, methodology, scope and programme Collection an review of available data, Conduct an inventory/surveys on all facilities Air-traffic and passenger forecasting Prepare long-term development scenarios Prepare a schedule of short term needs Compile concept master plan report Develop final master plan and detailed land use plan

Proposed Schedule 4.4.4. This activity is schedule for completion twelve (12) months from the date contract becomes effective. Proposed Resource 4.4.5. The consultant shall in general have the following expertise assigned to carry out the services: Project Leader ((20yrs minimum experience) Lead Architect (15yrs minimum experience) Architects (local and international mix) Lead Airport Planner (15yrs minimum experience) - 11 -

Airport Planners Transport Economist Civil/Structural Engineers

All specialists shall have at least 10years of working experience in the sector and each shall have a combination of local and international experience. Proposed Output 4.4.6. The output for the works, including interim outputs, shall include but not limited to:
a. b. c. d.

Inception report Conceptual planning report Draft Report (including Master Plan and Future Land use plan for each airport) Final Report (including Master Plan and Future Land use plan for each airport) COST ESTIMATE

5.

Each consultant shall prepare a cost estimate for their respective components of the study and submit the cost-time-resources schedule making up the fixed cost component of the service to be provided. Each contract shall be let on Lump Sum basis with fixed and reimbursable components. 6. BID DOCUMENTS (DETAILED TERMS OF REFERENCE)

In addition to the cost estimate, each consultant shall supply to NAC a detailed TOR for respective study. A draft TOR for discussion and agreement with NAC prior to finalisation and costing may be provided, as necessary. In order to appreciate full scope of the study, it is expected that all draft TOR are reviewed concurrently to enable NAC to ensure an integrated scope is developed for the study. In general, the procurement process for the study shall follow the African Development Banks Rules of Procedures for the Use of Consultants.

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AFRICAN DEVELOPMENT BANK BOARD OF DIRECTORS Resolution N B/NA/2010/15 Adopted on a lapse-of-time basis, on 20 July 2010 Grant from the Middle Income Countries Technical Assistance Fund to the Republic of Namibia to finance part of the cost of the Feasibility studies, Preliminary design and Master plans for the Namibia Airport

THE BOARD OF DIRECTORS,

HAVING REGARD to: (i) the Agreement Establishing the African Development Bank (the "Bank"), in particular Articles 1, 2, 12, 14 and 17; (ii) the Financial Regulations of the Bank, in particular Regulation 8.1; (iii) the Revised Guidelines for the Administration and Utilization of the Technical Assistance Fund for Middle Income Countries (MIC-TAF) contained in Document ADB/BD/WP/2005/90/Rev.1/Approved; and (iv) the Grant proposal contained in document ADB/BD/WP/2010/115/Approval (the "Proposal"); HEREBY DECIDES: 1. To award to the Republic of Namibia, a Grant of an amount not exceeding the equivalent of Five Hundred and Ninety Four Thousand Units of Account (UA 594,000) from the MIC-TAF to finance part of the cost of the feasibility studies, preliminary design and Master Plans for the Namibia Airport; To authorize the President of the Bank to conclude a Letter of Agreement between the Bank and the Republic of Namibia under the terms and conditions specified in the Revised Guidelines for the MIC-TAF, and in the Proposal; The President may cancel the Grant if the Letter of Agreement is not signed within ninety (90) days from the date of approval of the Grant; This Resolution shall become effective on the date above-mentioned.

2.

3.

4.