Civil Aviation Investment Program (KSTA PNG 52201) TERMS OF REFERENCE FOR CONSULTANTS I. CONSULTING FIRM A. Introduction 1. A consulting firm (the Consultant) will be recruited to help the Government of Papua New Guinea (PNG) to prepare aviation sector strategy, road map, and medium to long-term investment plans, identify and help implement critical policy actions to achieve operational efficiency, compliance with International Civil Aviation Organization (ICAO) safety standards and enable equitable and affordable air transport services to wider PNG population, prepared in full consultation with all key civil aviation stakeholders; (iii) design a hub-and-spoke architecture for air transport services and feasibility studies for modernization and upgrading of selected national and regional airports as well as viability of selected rural airstrips; and (iv) prepare loan processing documents, including aviation sector assessment; technical, economic, and financial appraisals; environmental, social, gender, and poverty impact assessments; procurement preparation and project implementation arrangements. The consultant will also provide necessary support and inputs (where necessary) to Asian Development Bank (ADB) during investment program processing for its approval by the ADB Board. B. Duration and Timing of the Services 2. It is expected that the consulting firm will be appointed and commence its services no later than January 2019. The assignment for program preparation is expected to be completed in 12 months. C. Scope of Consulting Services 3. The consultant is required to determine the total time inputs for this assignment based on the scope of services described below and within the available budget for the assignment indicated in the request for proposal. The consulting team is required to execute the assignment in PNG. The physical investments will cover civil works to improve existing airports and selected rural airstrips, equipment, systems and infrastructure for navigation and communication, safety and capacity improvements. 4. The proposed approach is to develop integrated program towards: delivery of basic services and sustainable connectivity; infrastructure investments and capacity development; and (iii) policy interventions to enable sector efficiency, cost recovery and equitable service delivery. The assignment is expected to contribute comprehensively to tackle the physical and non-physical bottlenecks in the sector in close coordination with other development partners. It will consist of three key outputs: Output 1: Roadmap, policy framework and investment program. The consultant will review existing aviation sector policy and regulatory frameworks, undertake deeper sector analysis of main investment and non-investment bottlenecks, and prepare overall sector growth strategy, policy framework and investment program. The policy framework will identify main challenges and operating conditions related to cost recovery, sustainability, efficiency, competition and targets for change and reform actions. It will also identify gender-inclusive policy actions.
2 (iii) Output 2: Hub-and-spoke system for air transport services. In light of the Government s three pronged tourism agriculture connectivity development plan, NAC is now focusing on an integrated strategy to link number of functional and maintainable rural airstrips to selected regional airports (about five or six that comply with PNG civil aviation regulations), thence linking those regional airports to one or more of the country s five or six main national airports (the busiest and most crucial that are ICAO compliant). This hub and spoke system is intended to facilitate the Government s strategy. Identified rural airstrips and regional and national airports infrastructure need modernization and upgrading to handle larger body aircrafts and terminal facilities that are versatile, functional and efficient. The consultant will help develop this approach. Output 3: Due diligence for investments projects. Based on results of outputs 1 and 2, the consultant will identify investment, institutional development and capacity building proposals for subsequent ADB and other donors programmatic support. Investments will be mainly on modernization of key national and regional airports under NAC and strategically selected rural airstrips structured around hub-and-spoke concept. High readiness will be the key determinant for screening the projects. Large-scale land acquisition or disputed ownership would be avoided. The consultant will provide assessments on feasible approaches to developing rural airstrips and develop models for funding support. The priority physical and non-physical investments include: upgrading and modernization of Tokua, Madang, and other critical airports; air traffic control towers and radar facilities for Jacksons, Nadzab, Tokua, and Madang airports; and (iii) capacity, systems and skills development to strengthen aviation sector institutions. Due diligence will identify gender-inclusive actions and measures (e.g. ensuring women are involved in skills development, gender inclusive airport design) 5. Outputs 1 and 2 shall provide prioritized list of investments in rural airstrips and national and/or regional airport infrastructure that needs modernization and upgrading to handle larger body aircrafts than current capacity allows. The scope of due-diligence work under the Output 3 will be limited to maximum of 2 priority airport investment projects and about 20 strategically selected rural airstrips that will be included in the ensuing ADB investment program. For these investment projects, the consultant will be required to prepare full preliminary engineering, costing, procurement, social and environmental safeguards, and full economic and financial analysis. Should there be a need to expand the scope beyond this, the consultant shall be entitled to request for contract variation. 6. The detailed tasks of the consultants are the following: 1. Policy and Institutional Reform Program (iii) Conduct sector diagnostic studies on policies and institutional reforms aligned to the proposed policy matrix; Conduct a civil aviation sector assessment to identify clearly strategic context, policy framework, sector roadmap, core sector problem, issues and opportunities, government sector strategy and challenges and external assistance programs; Prepare aviation sector strategy, road map and medium-to long term investment plan that links the country s development strategy;
3 (iv) (v) (vi) Draft policy and regulation changes as per policy matrix and conduct policy and institutional reform consultation workshops with stakeholders; Work on execution of agreed policy actions as per the policy matrix; and Civil aviation sector assessment, aviation sector strategy and roadmap, and policy matrix should include gender analysis (including sex disaggregated data) and identify gender-inclusive actions and measures. 2. Hub-and-Spoke System (iii) (iv) (v) Prepare forecasts for aircraft, passenger and air freight traffic at all airports, as well as international overflight movements forecasts for the next 10 years, considering the national and regional economic development and impact of tourism and agriculture development; Design hub-and-spoke architecture for air transport services and recommend appropriate strategies for the development of potential regional hubs and/or additional international airports in PNG, including assessment and recommendations for selection of key rural airstrips for integration into the domestic hub and spoke airport structure; Identify each airport and airstrip based on the design of hub-and-spoke system and formulate subproject screening process for regional airports, main national airports, and rural airstrips in accordance with technical, financial, economic appraisal criteria, social, gender and environmental criteria, and project readiness criteria, mutually agreed upon between the government and ADB; Propose the priority to be accorded to rehabilitation or improvement of the infrastructure, installations, facilities, and equipment of the airports; and Develop the technical requirements for the international and domestic airports in view of ICAO standards and recommended practices and certification requirements, with proper consideration to the levels and categories of forecasted air traffic at each airport. The design requirements for the airport facilities should be developed with specific gender inclusive features. 3. Engineering (Output 3 only) (iii) (iv) Prepare outline designs for selected airports and rural airstrips and prepare technical specifications and drawings, considering the existing designs, ICAO standards and recommended practices, and international best practices; Prepare a detailed list of materials, facilities, equipment, and work necessary and estimate their costs, separated into foreign and local components; The engineering will include coastal processes and hydrodynamic modelling sufficient to inform the design, provide baseline information for the environmental impact assessment, and allow a sediment plume analysis to be undertaken. The sediment plume modelling and analysis will: (a) identify the expanse of the plume and determine the fill and spill budget or volume of reclamation, and dredging if required, per day that must be complied with to ensure the plume is reduced as much as possible; and (b) identify the requirements plan for reclamation, and dredging if required, to provide additional information for the contractor; Outline project implementation and procurement arrangements including contract packaging, and prepare a project implementation schedule, taking into account
4 (v) (vi) (vii) the experience from the executing agency s previous and ongoing airport improvement projects and local abilities to carry out the civil works; Prepare cost estimates for base costs for civil works, equipment (including air traffic control equipment, weather observation and forecasting equipment), training, consulting services, counterpart costs, taxes and duties; physical and financial contingencies, financial charges according to ADB guidelines https://www.adb.org/sites/default/files/institutional-document/34142/files/fmtgnpreparing-presenting-cost-estimates.pdf and good practices https://www.adb.org/sites/default/files/page/82468/examples-cost-estimatesfinancing-plans.pdf.; Determine an adequate project management organization and the inputs in terms of expertise and person-months required for preconstruction activities and construction supervision, and prepare terms of reference for consulting services required for project implementation and the operation and maintenance (O&M) of airport and air navigation facilities and equipment compliant with ICAO standards after completion of the project; and Prepare a gender-inclusive O&M program for the selected airports and rural airstrips, identifying approaches suitable for mainstreaming local labor-based appropriate technologies to enhance employment benefits (with particular focus on women) of the upgrading and maintenance of airports and airstrips, provide a quantitative estimate of employment gains, and identify training needs and contract arrangements. 4. Financial Analysis and Financial Management Assessment (Output 3 only) (iii) Undertake a financial management assessment of the executing agencies, and based on such assessment prepare financial management action plan in agreement with the executing agencies; Cost estimate of the program and each subproject; and Assess the financial viability of the program and each subproject proposed under the program. All activities will be conducted in accordance with ADB guidelines which can be downloaded from https://www.adb.org/about/financial-managementresources. ADB s Financial Management Assessment Questionnaire should be utilized for analysis. 5. Economic Analysis (Output 3 only) The consultant will undertake the economic due diligence of the program and its subprojects individually using the methodology and covering the 10 key areas of economic analysis presented in ADB Guidelines for the Economic Analysis of Projects (2017) and can downloaded from https://www.adb.org/documents/guidelineseconomicanalysis-projects. 6. Environmental and Social Safeguards (Output 3 only) Due diligence of environment and social safeguards in accordance with ADB s Safeguard Policy Statement 2009 (SPS) and the country s laws and regulations. This includes, screening, scoping, assessment and mitigation planning. Assess government policies, experiences, institutions, and the legal framework for environmental assessment,
5 involuntary resettlement and indigenous peoples to address any gaps with ADB s SPS 2009 and recommend gap filling measures. An environmental assessment and review framework and resettlement framework, and if required Indigenous People s Framework, will be required to be prepared for the program and appropriate level due diligence as required for the subprojects identified to be fully prepared during the transaction technical assistance. 7. Poverty, Social and Gender Assessment (Output 3 only) Conduct poverty, social and gender assessment which focuses on the direct and indirect impact channels through which the poor and vulnerable groups including women will be affected by the project (risks and benefits). This assessment should be informed by consultation with women s representative/groups who will be affected by the project, and female representatives of the civil aviation sector who can identify entry points for skills development and other employment-related needs. The assessment should pay particular attention to: women s economic empowerment opportunities; the role of rural airstrips in contributing to poverty, social and gender issues; training needs and skills development for women; gender-inclusive design features. Prepare a summary poverty reduction and social strategy and gender action plan to be guided by the ADB s Poverty Handbook, Analysis and Processes to Support ADB Operations and ADB Gender and Transport Took Kit to maximize poverty and social benefits to both men and women and mitigate any adverse impacts. The gender action plan will specify the gender design features, targets and activities per project output to be delivered during project implementation. 8. Climate Risk and Vulnerability Assessment (Output 3 only) Undertake a climate risk and vulnerability assessment of the project. It should cover risks to both its design and its performance. This includes a review of existing information and data on historic climate and projected climate change in PNG, and outcomes of previous and ongoing climate change assessments undertaken in the project area, with specific focus on the Government's climate change adaptation policies; an assessment of potential risks of climate sensitive project components to projected climate change, an assessment of climate resilience of the proposed design, and identification of possible additional adaptive measures. This includes an assessment of the overall approach and of individual components. 9. Risk Assessment and Management Plan (Output 3 only) Identify potential risks in project and prepare management plan to mitigate those risks during implementation. 10. Procurement Risk Assessment and Procurement Readiness (Output 3 only) Conduct procurement risk assessment for the program and prepare a procurement strategy and plan based on the ADB s Guidance Note on Strategic
6 (iii) Procurement Planning (June 2018). ADB s procurement risk assessment for PNG reflected in the Country Partnership Strategy for 2016 2020 should be consulted. Prepare procurement plan for sample subprojects (i.e. at least 1 or 2 airports, control towers and rural airstrips) and include brief description of each package justifying their scheduling, procurement method, prequalification if required, bidding procedures, review requirements. The procurement plan shall be suitable for the recommended project management arrangements for the program and potential support to the executing and implementing agencies. Prepare draft bidding documents for sample sub-projects to a level that would allow launching of bids with minor updates based on detailed engineering designs and updated costs. All pertinent information on procurement should be included in the Program Administration Manual. 11. Capacity Needs Assessment Hold consultations with stakeholders including National Airports Corporation (NAC), Papua New Guinea Air Services Limited (PNGASL), Civil Aviation Safety Authority (CASA), Accident Investigation Commission (AIC), and Rural Airstrips Agency Limited (RAA) to identify capacity gaps in terms of staff skills, systems and infrastructure and other capacity building activities for more efficient and effective control and oversight. Based on the information gathered from the consultations, prepare sets of capacity building and training programs, systems and infrastructure development for each agency to scale up their technical, operational and/or regulatory capacity taking into account the existing and required skills to meet national and ICAO standards recommended practices. 12. Technical Assistance Support Assess and propose consulting services description for piggybacked grant technical assistance of $1 million for policy reforms and capacity building. Also prepare its cost estimates, budgeting and implementation arrangements. D. The Key Experts Required for the Assignemnt 7. The consultant will determine the number, effort and the nature of experts, combination of international and national experts that it will require to complete each of the detailed tasks described above, in accordance with their proposed approach and methodology and deliver the outputs satisfactory to ADB. For evaluation purposes, ADB requires a total of four key positions as listed below. All key positions required to provide their services minimum 80% in PNG (field inputs). These experts are: Positions Team Leader Minimum Qualification Requirements University degree or equivalent professional qualifications in business, law, planning or policy. Minimum of 10 years of experience leading major donor-funded assignments in various developing countries. Firm may choose to assign this role to any of the key specialist experts in the team provided that above requirements are fully met.
7 Positions Civil Aviation Sector Planner CNS/ATM Specialist Minimum Qualification Requirements University degree or equivalent professional qualifications in one or more of the major fields of civil aviation. Minimum of 15 years of experience with a civil aviation administration at managerial level, responsible for planning of national civil aviation development or equivalent professional experience. Experience with multi-disciplinary policy and strategy formulation and planning in the civil aviation environment. Civil aviation organization structuring and human resource planning and development, including manpower requirement assessments and planning of civil aviation training is an advantage. University degree in electronics engineering or equivalent academic and technical qualifications. Professional or advanced technical expertise in Communications, Navigation, Surveillance/Air Traffic Management. A minimum of ten years professional experience in the planning, design, installation and evaluation of aeronautical telecommunications systems and navigational aids for aerodromes. Knowledge of related ICAO SARPs and other guidance material related to CNS/ATM. Civil/Airport Engineer University degree in civil engineering or aerodrome engineering. A minimum of ten years experience in the design, construction or modification of aerodromes including experience in directing or supervising cooperative efforts of architects, engineers, construction contractors and others, in aerodrome work. Knowledge of aircraft operational characteristics, landing and take-off criteria and procedures, runway, taxiway and apron strengths and widths, drainage, access routes and roads, car park provisions. ATM = Air Traffic Management, CNS = Communication Navigation Surveillance, EIA = environmental impact assessment, ICAO = International Civil Aviation Organization, SARP = Standards and Recommended Practices. Source: Asian Development Bank. E. Outputs, Deliverables and Payment Milestones 8. The consulting services are expected to be implemented over a period of 12 months, from January 2019 to December 2019. Technical assistance funds will be disbursed in accordance with ADB s Technical Assistance Disbursement Handbook (2010, as amended from time to time). The consultants will report directly to the ADB project officer. 9. The consultant is required to submit the following deliverables in format and copies as stipulated in the contract. Expected timelines for deliverables are from the issuance of Notice to Proceed. A detailed outline for each deliverable will be agreed in the contract based on the firm s approach and methodology. Output Deliverable Expected Timeline Milestone Payments 1 1 1(iii) Policy and Institutional Reform Program Sector diagnostic assessments Sector strategy, roadmap and investment plan Draft policy and institutional reform documents Within 2 months Within 4 months Within 6 months 10% 20% 2 2 3 3 Hub-and Spoke System Design of hub-and-spoke system Scope of investment program Due Diligence Documents Engineering, Economic and Financial Capacity Building, Risk Assessments and Procurement Social, Gender and Safeguards Documents Within 3 months Within 5 months Within 8 months Within 10 months 20% 20% 10% 3(iii) Within 10 months 10% 4 Executed policy and institutional reforms Within 12 months 10% ADB = Asian Development Bank, EA = executing agency, PNG = Papua New Guinea. Source: Asian Development Bank.
8 10. A stakeholders meeting and presentations are required to be delivered at list in three stages in Port Moresby, i.e. at inception stage, during ADB fact-finding mission and on prior to completion of services. All documents and reports would be made available on print and electronic format to executing agencies and ADB in editable format. Consultant s key experts will participate in ADB s fact-finding mission upon confirmation (tentatively in November 2019). F. Preparation of Proposals 11. Proposing entities are requested to prepare a detailed description of how they propose to deliver on the outputs of the contract in the section of their proposal called Approach and Methodology. In this narrative, entities should be explicit in explaining how they will achieve the outputs and include any information on their existing activities upon which they may build as well as the details of personnel composition. 12. Only one curriculum vitae (CV) must be submitted for each key and non-key position included in the proposal. Only the CVs of key positions will be scored as part of the technical evaluation of proposals. The CVs of non-key positions will not be individually scored, however ADB will review and individually approve or reject each CV for each non-key position in the proposal and consider the suitability of the bidders proposed team within the Approach and Methodology portion of the evaluation criteria. 13. All positions under the contract, both key and non-key, must be included and budgeted for in the financial proposal in accordance with the person-month allocation required for each as defined by the proposing firm. 14. Provisional sum indicated in the request for proposal is the ceiling amount to cover stakeholders consultation workshops, outreach activities, studies, and surveys. It will also cover the outputs beyond the scope specifically defined Outputs 3, if requested, and drawn from provisional sums on an output basis. Use of provisional sums will be strictly subject to ADB s prior approval. G. Procedure for Review and Acceptance of Outputs 15. Each deliverable will be reviewed by the ADB technical assistance team and the concerned government office(s) in parallel, who will be required to provide comments within 15 working days after the submission. If no comments received within maximum of 30 calendar days, the output will be considered agreed at the agency level and submitted to relevant decisionmaking stakeholders for issuance of letter of acceptance. H. Implementation Arrangements 16. The Consultant s contract will be administered by the ADB who will closely coordinate with the respective government agencies. The recruitment of the consultant firm will be in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated staff instructions using the quality- and cost-based selection method with 90:10 ratio. A full technical proposal with output-based contract form will be used. The consultant will mobilize promptly after signing the contract agreement, and will compile, prepare and submit all required reports according to the delivery milestones agreed in the contract.
9 17. The counterpart government agencies for the policy-based loan component are the Department of Transport, Ministry of Civil Aviation, and Treasury; and NAC, PNGASL, CASA, AIC, and RAA, will be the counterpart agencies for the investment and capacity building components. 18. The counterpart government agencies will provide counterpart staff and necessary information for the assignment. The executing agencies will provide the consulting firm, free of charge, with relevant available data, information and documents, which the consulting firm may reasonably request e.g. air traffic data, designs, any other planning information like land ownership and acquisition, legal requirements, permits needed and public information, among others. The counterpart agencies will help in arranging and facilitating the stakeholders consultations meetings and workshops. 19. All other expenses to undertake this assignment will be budgeted in the firm s proposal. Should there be a need for per diem allowances to the counterpart staff, they will be agreed between ADB and the firm and drawn from the provisional sums.
10 II. INDIVIDUAL CONSULTANTS A. Introduction 20. Individual consultants will be recruited to help the Government of Papua New Guinea (PNG) to prepare aviation sector strategy, road map, and medium to long-term investment plans; identify and help implement critical policy actions to achieve operational efficiency, compliance with International Civil Aviation Organization (ICAO) safety standards and enable equitable and affordable air transport services to wider PNG population, prepared in full consultation with all key civil aviation stakeholders; (iii) design a hub-and-spoke architecture for air transport services and feasibility studies for modernization and upgrading of selected national and regional airports as well as viability of selected rural airstrips; and (iv) prepare loan processing documents, including aviation sector assessment; and provide oversight and quality assurance support for project preparation by the consulting firm engaged under this technical assistance (TA), including technical, economic, and financial appraisals; environmental, social, gender, and poverty impact assessments; procurement preparation and project implementation arrangements. The consultant will also provide necessary support and inputs (where necessary) to Asian Development Bank (ADB) during investment program processing for its approval by the ADB Board. B. Duration and Timing of the Services 21. It is expected that the individual consultants will be engaged and commence their services in January 2019. The assignments will be on intermittent basis and expected to be completed in 12 months. C. Scope of Consulting Services 22. The estimated 25 person-months (15 international person-months and 10 national personmonths) input is expected for these assignments. These consultants are required to deliver their services in PNG. The following experts will be engaged with their respective tasks and duties: 1. Transport Policy and Planning Expert (9 person-months, international) Tasks and Duties: Support ADB team in analyzing, identifying and mapping critical aviation sector policy and regulatory reforms needed to develop policy framework for the ensuing investment program. The consultant will work closely with the consulting firm engaged under this TA, provide guidance and supervise the delivery of firm s Output 1: Sector roadmap, policy framework and investment program (the terms of reference for the firm is attached). The consultant will engage with government counterpart agencies in policy dialogue, build consensus on proposed policy measures, facilitate workshops and seminars, and ensure that extensive consultations have been undertaken in developing these policy measures, including civil societies and development partners. Critical role of the consultant would be to drive the consultation and dialogue towards achieving meaningful and significant policy reform targets that enable shift towards greater competition, cost recovery, efficiency and sustainability of the aviation sector. These policy interventions are envisaged to be developed in stepped approach, i.e. first to develop foundational policy actions that could be acted upon within the 12 months of this assignment, and more substantive policy actions that need to be implemented during the
11 ensuing investment program. The consultant will also contribute to developing Output 2: Hub-and-spoke system for air transport services to the extent that it relates to development of policy actions. The consultant will work under the supervision of the ADB Team Leader and guidance on policy instruments will be provided by ADB s specialist responsible for public management matters. Input: The consultant will be engaged for the period from January 2018 to December 2019 intermittently for about 5 months. The consultant would be required to undertake regular visits to Papua New Guinea (once every other month at least), each visit for 1 or 2 weeks as needed. These visits will be timed to coincide with ADB missions as needed. Deliverables: Prior to each visit, the consultant will discuss with ADB team on mission program and objectives and produce a mission report after returning from mission. Each mission report should contain at least policy areas that have been discussed and actions agreed; issues that are preventing the dialogue to move forward, and actions needed; (iii) progressively updated sector roadmap, policy frameworks, and investment program 2. Aviation Sector Specialist (6 person-months, international) Tasks and duties: The consultant will work in tandem with Transport Planning and Policy Expert to support ADB team in analyzing characteristics and trends in the PNG air transport market (passengers and freight, national and international); examining commercial/operational performance and plans of airline operators serving domestic and international traffic, and identification of main issues and options; (iii) reviewing fleet capacity and options for acquisition/disposal/leasing; (iv) identifying options that could be supported by the main stakeholders for making more use of private sector operators and service providers; and (v) strategies for route network development and expansion, including the proposed hub-and-spoke approach to serve more remote parts of the country, and possible use of subsidies for loss-making services through PNG s community service obligation. Input: As above for Transport Planning and Policy Expert. Deliverables: As above for Transport Planning and Policy Expert except the mission report should cover relevant tasks and duties on aviation sector matters. 3. Aviation Sector Specialist (10 person-months, national) Tasks and duties: The consultant will support international consultants above and ADB team and should have sound knowledge of PNG s aviation sector industry and act as a liaison person to help build strong relationship with the aviation sector agencies and facilitate policy dialogue. Input: 10 person-months intermittently.
12 Deliverables: Contributions to mission reports and any ad-hoc reporting as needed.