Bom dia - Good morning again, Ladies and Gentlemen! 11-May-19 Thank you, Mr Chairman. Bom dia - Good morning again, Ladies and Gentlemen!

Technical Co-operation Challenges OVERVIEW - SESSION 2 11-May-19 Technical Co-operation Challenges OVERVIEW - SESSION 2 ICAO Objectives Implementation Mechanism Presentation by Partners Conclusion and Recommendation Agenda item 4 of this Conference is still dedicated to technical cooperation challenges in the planning and implementation of CNS/ATM. PgDn We will continue this morning’s discussions by briefly familiarizing you with the ICAO Objectives Implementation Mechanism. PgDn We also scheduled a presentation from a Contracting State of ICAO, which itself is a major provider of services crucial to CNS/ATM, PgDn followed by a discussion and recommendation. This second part of my presentation will highlight financing modalities, coordination requirements as well as the advantages for recipient States, donors and financial institutions to implement their CNS/ATM related projects with the assistance or quality assurance of ICAO. Before I proceed, let me, however, discuss a point that does seem to require clarification, in particular within the donor, financing and consulting community: the respective tasks and objectives of two fundamentally different, albeit complementary programs in ICAO: the Regular Program and the Technical Cooperation Program. The Regular Program’s objective is to develop the regulatory framework for civil aviation, that is the ICAO SARPs and procedures, which - as most of you may already know, are published in the form of Annexes to the Chicago Convention and are further elaborated upon in manuals and guidelines. The Technical Cooperation Program of ICAO, on the other hand, was established to assist States in the implementation of these SARPs. Despite these different objectives, the two programs are essential for the implementation of ICAO assisted projects, as the same ICAO specialists who developed the SARPs, as well as ICAO’s Regional Office staff, are providing part of the technical backstopping for the ICAO projects implemented through ICAO’s Technical Cooperation Bureau. Unlike the other bureaux of ICAO, the Technical Cooperation Bureau - or TCB in short - is not funded by the annual contributions paid by its Contracting States to ICAO. This funding arrangement is unique within the UN System. Its activities are financed from the support costs received for the provision of services on a cost-recovery basis.

ICAO Objectives Implementation Mechanism 11-May-19 The ICAO Objectives Implementation Mechanism was established by the ICAO Assembly in 1994. Its main purpose is to provide an avenue to States, bi-lateral and multi-lateral funding organizations, industry and other partners to finance - on a voluntary basis - some of the technical cooperation activities that lie in their respective interests. This mechanism is also to assist ICAO to broaden its financing needed to assist States in implementing SARPs, including those related to CNS/ATM. PgDn It is part of the ICAO Strategic Action Plan and endorsed by other international organizations, industry and users through the CNS/ATM Systems Implementation Task Force and all of the Planning and Implementation Regional Groups, or ALLPIRG as we call it. PgDn PgDn As I mentioned during Session 1, being a non-profit organization, PgDn ICAO offers its services through the ICAO Objectives Implementation Mechanism under neutral and cost-effective conditions. PgDn To be in a position to better respond to States' and users' requirements, ICAO - traditionally assisting its Contracting States mainly through Governments - endeavours to bring into this Mechanism also non-traditional development partners and funding sources. PgDn In ICAO’s view, co-operative arrangements among Contracting States in a sub-region or region, implemented in association with ICAO, concerning a homogenous ATM area or major international traffic flow will allow participating States to closely collaborate in planning as well as in systems procurement and training. Co-operative arrangements may be a cost-effective, fair and efficient way of addressing common service requirements in neighbouring States. Such arrangements are under implementation or proposed, for example, in ICAO's Safety Oversight and TRAINAIR Programmes as well as in an Upper Airspace Management Project for the South Pacific. The institutional side of this project was already covered in Agenda Item 2. These multi-national arrangements should fall in line with the latest development focus of at least some multilateral development partners, possibly even of bilateral donors. Co-operative arrangements are also proving to be avenues for cost-sharing arrangements, of interest to, and suitable for, States as well as donors, funding institutions and the aviation industry. These have potential for substantial application for CNS/ATM systems where inter-State co-operation is essential for cost-effective and harmonious implementation. Part of ICAO Strategic Action Plan Expansion of resource base for assistance to States Acknowledged by CASITAF and ALLPIRG Cost and resource-sharing arrangements Co-operative multi-national approaches Harmonization

ICAO Objectives Implementation Mechanism Funding Partners 11-May-19 ICAO Objectives Implementation Mechanism Funding Partners PgDn As you are all aware, the United Nations Development Programme, or UNDP, has shifted its focus to other priority areas. ICAO - so far - has no funds available on its own to support technical cooperation projects. Governments of developing States are obliged therefore to rely more on other development partners for financing of priority projects in civil aviation. PgDn It is anticipated that bilateral assistance, mostly on loan basis, will increasingly be made available to the developing countries requiring major upgrading of civil aviation equipment. PgDn However, transfer of know-how through specialized expertise in CNS/ATM planning and, in particular, human resource development will require extra efforts from the aviation industry and development financing community, particularly from multilateral donors. Inter-regional planning efforts, including accompanying training, would perhaps be more suitable for financial support from global development financing partners, such as Bretton Woods institutions, international organizations and associations and industry. PgDn PgDn Initial experience in dealing with non-traditional financing partners, such as industry and users and using non-traditional approaches, are encouraging. ICAO is in a unique position to co-ordinate among the partners and to contribute to projects the required technical and managerial expertise and experience in an objective manner. These initial projects, however, also underscore the necessity for sufficient funding for ICAO to carry out, through the ICAO Objectives Implementation Mechanism, project development activities expected by developing countries. ICAO's most prominent goal is to provide its Contracting States with assistance in the implementation of SARPs world-wide. ICAO will associate itself, therefore, with as many CNS/ATM-related civil aviation development efforts as possible. Recipient States Bi-lateral development partners Multi-lateral development partners Industry Users

ICAO Objectives Implementation Mechanism Financing Modalities 11-May-19 As far as financing modalities are concerned, the ICAO Objectives Implementation Mechanism allows for funding and operation, separately or in combination with each other, of a General Fund, that is to assist SARPs implementation as a whole. Funding can also be provided for a specific ICAO project or a specific State project. To be used as financing modalities within this Mechanism ICAO, because it is operating on non-commercial basis, has established a set of contractual modalities to govern the provision of its technical co-operation services. Let me just mention that, apart from UNDP cost-sharing arrangements, there are basically three sets of agreements applicable to technical cooperation services: Trust Fund Agreements, PgDn Management Services Agreements PgDn and Civil Aviation Purchasing Services Agreements. PgDn For those of you who wish additional information on the ICAO Objectives Implementation Mechanism and how it can be utilized, I refer you to Working Paper 28. Trust Fund Agreements Management Services Agreements (MSA) Civil Aviation Purchasing Services (CAPS) Agreements

ICAO Objectives Implementation Mechanism Programs 11-May-19 SARPs and ANP implementation CNS/ATM Safety oversight Civil aviation master planning Restructuring/commercialization of civil aviation administrations Human resource planning and development Equipment procurement Coming to the major programs under execution, the ICAO Objectives Implementation Mechanism, as established by the Assembly, gives priority and support to technical co-operation activities in the field of: PgDn SARPs and ANPs implementation, PgDn CNS/ATM, PgDn safety oversight, PgDn civil aviation master planning, PgDn restructuring of civil aviation departments or authorities, and PgDn human resource planning and development. It does, however, also address other civil aviation related requirements. PgDn A substantial part of future SARPs, by necessity, are being geared towards CNS/ATM systems. We anticipate, therefore, that the ICAO Technical Co-operation Programme will be requested to play an increasingly important role in the implementation of these new satellite-based air navigation systems. This will also include associated facilities, services and related human resource planning and development. To fulfil our mandate and the strategic functions envisaged, our own strategy will focus on activities which are at the core of States' and users' interests, and for which funding can be assured. While harmonized, or “seamless” implementation of CNS/ATM systems world-wide is at the heart of the interests of the international aviation community, initial areas to be focused upon will necessarily be those which generate early benefits to users.

ICAO Objectives Implementation Mechanism Programs - CNS/ATM 11-May-19 Transition planning Cost/benefit and cost recovery analyses Restructuring/commercialization of air navigation services Human resource planning and development Equipment procurement Setting up of multi-national co-operative air navigation service provision In relation to CNS/ATM, just to quickly summarize, ICAO is able to provide the following programs under its Objectives Implementation Mechanism: PgDn - Transition planning PgDn - Cost/benefit and cost recovery analyses PgDn - Restructuring/commercialization of air navigation services PgDn - Human resource planning and development PgDn - Equipment procurement PgDn - Setting up of multi-national co-operative air navigation service provision Again, for some further explanation on the programs to be implemented under the ICAO Objectives Implementation Mechanism, I again refer you to Working Paper 28.

ICAO Objectives Implementation Mechanism Advantages for Recipient States 11-May-19 Established by ICAO Assembly Quality assurance and project backstopping support through ICAO Regular Programme Final selection of experts, training & equipment Importation privileges through UN Interest earning Flexible funding arrangements Identification of donors/financial institutions Why should States use this Mechanism for CNS/ATM planning and implementation, you may ask. PgDn Resolution A27-18, the ICAO Assembly, in its resolving Clause 4 Aurges Contracting States to give high priority to civil aviation development and, when seeking external assistance for this purpose, to stipulate to funding organizations, through an appropriate level of government, that they wish ICAO to be associated as the executing agency with civil aviation projects that may be funded@. Technical co-operation recipient States, as ICAO Contracting States, already pay through their contributions to ICAO for support services which can be provided by the Regular Programme. When using ICAO=s technical co-operation services, the States have therefore to provide funding only for those components of the project which are directly related to technical co-operation, but not necessarily for their technical backstopping. PgDn Part of this support and backstopping is being achieved through the ICAO Regional Offices which have longstanding, often personal, relationships with States to which they are accredited and which have up-to-date knowledge of the history, culture, civil aviation development and current deficiencies of any such State. PgDn It is ICAO=s policy that, when assisting States through a project, the final decision is left to the government. In this way, civil aviation authorities retain the freedom of choosing what they consider to be the best choice for achieving the desired project results. PgDn PgDn Finally, Governments with insufficient financial resources may be assisted by ICAO in identifying suitable donors for their projects and in the negotiations with these donors of convenient funding arrangements. That could include loans taken to finance technical co-operation inputs, to be recovered through user charges. User charges can be applied to service loans (that is: repay capital and interest) which finance specific facilities and services provided for, and implemented under, the ICAO Regional Air Navigation Plans.

11-May-19 ICAO Objectives Implementation Mechanism Advantages for Donors/Financing Institutions And why should donors or financial institutions utilize the ICAO Objectives Implementation Mechanism? PgDn The same ICAO Assembly Resolution that I already cited, in its Resolving Clause 3, Arecommends Contracting States with bilateral or other government-sponsored aid programmes to consider the value of using the ICAO Technical Assistance organization in helping to implement their programmes of assistance to civil aviation@. The same resolution draws the attention of funding organizations to the fact Athat ICAO is the Specialized Agency of the United Nations concerned with civil aviation and, as such, is accepted by the United Nations as the specialist authority for carrying out technical assistance to developing countries in civil aviation projects@. It also Arecommends to these funding organizations, wherever appropriate, to give preference to ICAO for the identification, formulation, analysis, implementation and evaluation of civil aviation projects in the field of technical assistance@. PgDn In providing assistance, ICAO will implement projects in close co-ordination with donors and funding institutions, and in accordance with the conditions defined by the funding institution. PgDn PgDn Funding institutions are responsible for the most cost-effective investments of the funds entrusted to them. We believe, therefore, that it may be in the interest of these funding institutions to entrust the implementation of civil aviation projects to ICAO, or to at least consult or associate the Organization, in a quality assurance role, prior to investing in such projects. PgDn This will ensure compatibility with global civil aviation SARPs and achieve an adequate return for the investment in the interests of both their contributors and the recipient States. This holds particularly true for investment in CNS/ATM Systems which may be costly and which should be with us for a long time to come. Again, I feel I need to clarify one point in this respect: namely that ICAO does not build civil aviation equipment, does not employ permanent project personnel or own training establishments. Similarly, ICAO does no take away work from national consultants and consulting companies as ICAO’s role in infrastructure investment projects is usually supplementary, in fact often utilizing the services of this very community. Established by ICAO Assembly, monitored by ICAO Council Expertise, objectivity, neutrality Close co-ordination and co-operation Donors’ requirements taken into consideration in experts, equipment and training selection Cost-effective utilization of funds entrusted from financial institutions

ICAO Objectives Implementation Mechanism Summary 11-May-19 Effectively assists States in CNS/ATM planning and implementation Complements regulatory & guidance activities of ICAO Assures compliance with international standards and quality control Supports cost and resource-sharing co-operative arrangements, fostering harmonization Offers flexible financing arrangements Has advantages for recipient States, donors and financing institutions In Summary, Ladies and Gentlemen: PgDn The ICAO Objectives Implementation Mechanism as instituted by the ICAO Assembly and already used by certain Governments, donors and financial institutions: - Effectively assists States in CNS/ATM planning and implementation PgDn - Complements regulatory & guidance activities of ICAO PgDn - Assures compliance with international standards and quality control PgDn - Supports cost and resource-sharing co-operative arrangements, fostering harmonizationPgDn - Offers flexible financing arrangements PgDn - Has advantages for recipient States, donors and financing institutions.

ICAO Objectives Implementation Mechanism 11-May-19 Again, the Slide says it all: PgDn PgDn With your agreement, Mr Chairman, I would like to open the floor for any clarifying questions we could answer at this time. We should bear in mind that we have one more speaker to come. We have set some more time aside for further discussion on financing and co-ordination of technical co-operation after that speaker will have finished his presentation. Are there any Questions at this time? Questions ?

Multi-national Co-operation and Financing 11-May-19 With the permission of the Chairman, PgDn PgDn I would now like to pass the floor and the microphone to the representative of the administration of one of the satellite-service provider States, the United States’ FAA, Mr George Donohue who is the Special Advisor on Technology to the FAA Administrator. Perspective of a contracting State: USA (FAA) Mr George Donohue