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

Appraisal Team

Team Leader: P. Opoku-Darkwa, Transport Engineer, OITC.2

Sector Manager (OITC.2): J Rwamabuga

Sector Director (OITC): G Mbesherubusa

Regional Director(ORSA): A Beileh

Peer Reviewers

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

TABLE OF CONTENTS

1. INTRODUCTION 1

1.1. Background 1

1.2. Study Objectives 1

1.3. Justification for use of MIC TAF Resources 2

1.4. Financial considerations for implementation of HKIA Master Plan– Study Component 1. 3

2. DESCRIPTION OF STUDY 4

2.1. Study Components 4

3. STUDY COST ESTIMATES AND FINANCING PLAN 5

3.1. Cost Estimates 5

3.2. Financing Plan 5

4. PROCUREMENT 6

4.1. Procurement Arrangement 6

4.2. Disbursements Arrangements 6

5. IMPLEMENTATION strategy 6

5.1. Proposed Implementation Schedule 6

5.2. Executing Agency 7

6. LETTER OF AGREEMENT 7

7. CONCLUSIONS AND RECOMMENDATIONS 7

7.1. Conclusions 7

7.2. Recommendations 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 = African Development Bank

CSP = Country Strategy Paper

DANIDA = Danish International Development Assistance

EMP = Environmental Master Plan

ESMP = Environmental and Social Master Plan

GRN = Government of the Republic of Namibia

HKIA = Hosea Kutako International Airport

ICAO = International Civil Aviation Organisation

MIC = Middle Income Countries

MoWT = Ministry of Works and Transport

NAC = Namibia Airports Company

NDP3 = Third National Development Plan

PPP = Public Private Partnership

QCBS = Quality and Cost Based Selection

QBS = Quality-Based Selection

SADC = Southern Africa Development Community

TAF = Technical Assistance Fund

TOR = Terms of Reference

UA = Unit of Account

USD = United States Dollar

ii

GRANT INFORMATION

Client’s Information

BORROWER: Government of the Republic of Namibia (GRN)

IMPLEMENTING AGENCY: Namibia Airports Company (NAC)

Financing Plan

Source Amount Instrument

ADB (95%) UA 594,000 MIC Grant

GRN/NAC (5%) UA 31,000 NAC Budget

Total Cost UA 625,000* *Based on preliminary cost estimate

MIC Grant Currency: UA

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: February 2010

Submission to MIC Grant Committee (OIVP): May 2010

MIC Grant Submission for Board approval: June 2010 (Lapse of Time Basis)

MIC Grant Approval: June 2010

Grant Effectiveness: July 2010

First Disbursement: post- September 2010

Last Disbursement: September 2011

HIERARCHY OF

OBJECTIVES

EXPECTED RESULTS REACH/ BENEFICIARIES

PERFORMANCE INDICATORS

INDICATIVE

TARGETS AND

TIME FRAME

ASSUMPTIONS /

RISKS

GOAL:

To promote economic and social development by

enhancing existing infrastructure to meet increased

operational activities of the airports.

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

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)

Provides the

framework to meet

Vision 2030/NDP3

targets and time

frame.

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.

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.

GRN

NAC

Population of Namibia

Customers/Passengers

Local aviation industry

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

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 LC Total

MIC Fund 282 312 594

GRN/NAC 15 16 31

Total 297 328 625

* including contingencies

OUTPUTS

Deliverables

Feasibility Study Report and

Detailed Design of HKIA Terminal

Buildings;

Environmental Master Plan

(Reports/Drawings);

Master /Land Use Plan Deliverable

(Reports/Drawings)

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.

Assumptions

Timely delivery of

project output.

Minimal scope

change.

Risk

Delay to the

submission of the

completed

deliverables by the

consultant.

Cost escalation

Scope change

1

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 Bank‟s MIC Technical

Assistance Fund facility, to undertake project preparation activities on existing airport infrastructure.

Launched in 2004, Namibia‟s 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 Bank‟s CSP, in which strategies to enhance transport infrastructure form a key

part.

1.1.2. Consistent with GRN‟s 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. GRN‟s 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 Bank‟s 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. For HKIA, follow-up on the 2004 master-plan study, update and expand the scope as

required.

b. 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.

2

1.3. Justification for use of MIC TAF Resources

The justification is based on two viewpoints:

GRN‟s objectives and strategy for development, and

ADB‟s objectives and strategy for positive intervention in Namibia;

i) Justification based on GRN’s strategy

1.3.1. In defining the country‟s 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. GRN‟s 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 Bank‟s Country Strategy Paper (CSP) takes a holistic approach on the significance of

transport infrastructure development vis-à-vis addressing the country‟s 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 project‟s 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 country‟s 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.

3

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 NAC‟s 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 government‟s 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:

4

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. DESCRIPTION OF STUDY

2.1. 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. The study components are summarised as follows:

i) 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.

5

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 Bank‟s guidelines.

3. STUDY COST ESTIMATES AND FINANCING PLAN

3.1. 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

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 Bank‟s 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).

USD (million) UA(million)

Consulting Services COMPONENT FC LC TOTA

L FC LC

TOTA

L

HKIA Feasibility Study and terminal

building design 0.4 0.047 0.447 0.252 0.030 0.281

Environmental Master Plan (8no. Airport) 0.05 0.25 0.3 0.031 0.157 0.189

Master-Plan/Land Use Plan (5no. Airport) 0 0.2 0.2 0.126 0.126

Subtotal 0.45 0.497 0.947 0.283 0.313 0.5961

Contingencies (5%) 0.023 0.025 0.047 0.014 0.016 0.030

Total 0.473 0.522 0.995 0.297 0.328 0.625

1 November Rates US$1.59 = 1 UA

6

Table 3.2 – Financing Plan

4. PROCUREMENT

4.1. Procurement Arrangement

4.1.1. The procurement plan including type of contract, consultant selection and review

processes will be in accordance with the Bank‟s 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 Bank‟s 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)

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 NAC‟s five (5) percent

contribution.

4.2. Disbursements Arrangements

4.2.1. The disbursement arrangements for the MIC Funds will be either of the following

methods:

The Direct Payment Method

The Reimbursement Method

The Special Account Method

4.2.2. All disbursements will be subject to the Bank‟s rules as set out in the Bank‟s

Disbursement Handbook. The Bank‟s Disbursement Rules including the rules on suspension of

disbursements will apply.

5. IMPLEMENTATION STRATEGY

5.1. 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.

Funding Source US$ (million) UA(million)

FE LC TOTAL FE LC TOTAL

MIC (95%) 0.449 0.496 0.945 0.282 0.312 0.594

GRN/NAC (5%) 0.024 0.026 0.050 0.015 0.016 0.031

Total 0.473 0.522 0.995 0.297 0.328 0.625

UA(million)

Consulting Services COMPONENT Selection

Non-banking

funding TOTAL

Total 0.625 [0.594] - 0.625

Total 0.625 [0.594] - 0.625

[ ] figure in bracket financed from MIC TAF.

7

Table 5.1 - Implementation Schedule

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. CONCLUSIONS AND RECOMMENDATIONS

7.1. 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 country‟s key objectives and that of the Bank. It also puts

the Bank in the prime position for sustainable and future investment in Namibia.

Activity Responsibility Target Dates

1. Board Approval of MIC Trust Fund ADB June 2010

2. Issue of RFP to Consultants NAC July 2010

3. Receipt/Review and Approve of Proposal NAC/ADB Aug 2010

4. Contract Award (all components) 2. NAC September 2010

5. Completion/submission of Final Environmental Master Plan

(8no. Airports) - 9 months from start date. NAC/Consultant February 2011

6. Completion/Submission of Final HKIA Feasibility, Mater Plan

& Design - 12months from start date 1

NAC/Consultant September 2011

7. Completion/Submission of Final Master-Plans &Land-Use (5no.

Airports) - 12 months from start date 1

NAC/Consultant September 2011

1.Critical path activities 2.Start date = date contract become effective

8

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)

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.

HKIA & Eros

Katima Mulilo Rundu

Keetmanshoop Luderitz

Walvis Bay

Ondangwa

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 Jun-

10

Jul-

10

Aug-

10

Sep-

10

Oct-

10

Nov-

10

Dec-

10

Jan-

11

Feb-

11

Mar-

11

Apr-

11

May-

11

Jun-

11

Jul-

11

Sept-

11

Responsibilit

y

Target

Dates

Board Approval of MIC Trust Fund/Letter of Agreement Signed ADB Jun- 10

Issue of RFP to Consultants NAC Jul-10

Receipt/Review and Approve of Proposal NAC/ADB Aug-10

Contract Award (all components) NAC Sept-10

Completion/submission of Final Environmental Master Plan NAC/Consul

tant Feb-11

Completion/Submission of Final HKIA Feasibility, Mater Plan &

Design NAC/Consul

tant Sept-11

Completion/Submission of Final Master-Plans &Land-Use NAC/Consul

tant 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)

Cost reimbursable – Travels, Misc

Man

days Rate Cost (USD) No

Rate

USD Cost

TOTAL

Project Leader 15 1300 19500

Lead Airport Architect 60 1200 72000 International air travel 10 1600 16000

Airport Architects 120 600 72000 Domestic travel 20 50 1000

Lead Airport planner 50 1200 60000 Per diem 50 100 5000

Airport Planner 120 600 72000 Misc

(reporgraphics,etc 1 12000 12000

Lead Airport Civil/Structural Engineer 40 1200 48000

Airport Engineers 100 600 60000

Quantity Surveyor 15 600 9000

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)

Cost reimbursable – Travels, Misc

Man

days Rate Cost (USD)

Project Leader 20 1300 26000 No

Rate

USD Cost

TOTAL

Lead Airport/Transport Planner 40 1200 48000

Lead Environmental Specialist 50 1200 60000 International air fares 10 1500 15000

Environmental Specialist - Biologist 40 900 36000 Domestic air travel 20 250 5000

Environmental Specialist – Noise

specialist 40 900 36000 Per diem 25 100 2500

Soil and Ground Specialist 40 900 36000 Misc (reprographics,

car rentals 1 5000 5000

Socio-Economic Specialist 50 600 30000

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)

Cost reimbursable – Travels, Misc

Man

days Rate Cost (USD) No

Rate

USD Cost

TOTAL

Project Leader 15 1000 15000

Lead Airport Planner 30 900 27000 International air travel 10 600 6,000

Airport Planners 100 450 45000 Domestic air travel 20 250 5,000

Lead Airport Architect 30 900 27000 Per diem 40 100 4,000

Airport Architect 60 450 27000 Misc (reprographics,

car rentals 1 5,000 5,000

Airport Infrastructure Engineer 30 450 13500

Transport Economist 60 450 27000

Subtotal 325 $181,500 Subtotal $20,000 $201,500

TOTAL ESTIMATE COST, USD (EXCLUDING CONTINGENCIES) $947,500

ANNEX 5 –REQUEST FORM

- 2 -

- 3 -

- 1 -

ANNEX 6 –LETTER OF AGREEMENT

AFRICAN DEVELOPMENT BANK

13 Avenue du Ghana

B.P. 323

1002 Tunis Belvédère

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 Bank‟s 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 Bank‟s 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.

- 2 -

AGREE ON BEHALF OF:THE REPUBLIC OF NAMIBIA

Date:

C Schlettwin The Permanent Secretary Ministry of Finance

Yours Sincerely,

AFRICAN DEVELOPMENT BANK

Date:

Vice President, Operations Infrastructure, Private Sector & Regional Integration

- 1 -

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. Review of the parastatals in the sector by commercialising functions that can be more

efficiently performed in a commercial environment.

b. 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 Government‟s 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;

- 2 -

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

country‟s 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. NCA‟s 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 country‟s economy are

described below.

- 3 -

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 NAC‟s

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

Namibia‟s 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.

- 4 -

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.

- 5 -

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 non-

governmental 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.

- 6 -

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. For HKIA, follow-up on the 2004 master-plan study, expanding the scope and

updating as prescribed, in readiness for future implementation.

b. 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. Prepare an outline design of the two alternative options described in item a) above.

c. Prepare preliminary detailed design of the preferred and selected option.

- 7 -

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. Review the existing master-plan of 2004 and ascertain through dialogue with NAC

current development needs, objectives and trends.

b. 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

c. Prepare drawings and or sketches, as appropriate, of the design possibilities for the

terminal complex for discussion with NAC

d. Produce a 1:500 drawing (plans, elevation, etc.) proposals of the terminal complex

e. Based on the preferred/approved design, develop programme and budget for the

executing preliminary detail design.

f. Develop and complete the master-plan as per the programme and budget.

g. 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. New Feasibility Study Report (Master-Plan),

b. Preliminary Detailed Design Deliverable (Drawings, Technical specifications etc) ,

c. 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.

- 8 -

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 Master-

Plan for NAC Airports (8no. Airports);

4.3.1. NAC‟s 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. Consideration for the natural resources and environment in the greater airport areas

b. Establish a sustainable balance between air-traffic systems and infrastructure on one side

and the ecological and social systems on the other.

c. Improving safety through a better separation air-traffic and the surrounding nature such

as wildlife

d. To provide an environmental framework for future planning, development and

investments.

e. Proposed activities

f. Establish framework for the EMP with NAC

g. Perform desk study of all relevant documents, rules and regulations, development plans

and drawings.

h. 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.

- 9 -

i. 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.

Proposed Output

4.3.3. The output for the works shall include but not limited to:

a. A set of final and detailed Environmental Master Plans/Report covering all NAC airports

with each airport covered by a separate EMP.

b. 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.

- 10 -

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. Identifying the future and present needs of the airport users taking into account latest air-

traffic and passenger movement data.

b. Identifying the existing infrastructure facilities against new safety standards and norms

c. 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

- 11 -

airport master-plan development, the following facilities are to be included in long-term

development scenario

d. Runways, aircraft movement areas and parking aprons

e. Passenger terminal building in as far as interface with external infrastructure and aircraft

operations

f. Cargo terminal and air traffic control buildings

g. Visual and non-visual navigational aids

h. Fire, crash and rescue services

i. Utility and telecommunication services

j. Car parking areas and road accesses

k. Perimeter security

Proposed activities

4.4.3. In achieving the above, the following activities are envisaged,

a. Confirmation with NAC on objectives, methodology, scope and programme

b. Collection an review of available data,

c. Conduct an inventory/surveys on all facilities

d. Air-traffic and passenger forecasting

e. Prepare long-term development scenarios

f. Prepare a schedule of short term needs

g. Compile concept master plan report

h. 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)

- 12 -

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. Inception report

b. Conceptual planning report

c. Draft Report (including Master Plan and Future Land use plan for each airport)

d. Final Report (including Master Plan and Future Land use plan for each airport)

5. COST ESTIMATE

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 Bank‟s

Rules of Procedures for the Use of Consultants.

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;

2. 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;

3. 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;

4. This Resolution shall become effective on the date above-mentioned.