1. Pacific Aviation Investment Program

2. US$125 m Adaptable Program Loan Phase 1 Phase 2, 3, 4 Objective: improve operational safety and oversight of international air transport infrastructure

3. Safety On Par With Sub- Saharan Africa

4. Dodgy Aircraft

5. Failed Runways

6. Inadequate Terminals

7. Inadequate Fire Safety Equipment

8. Inadequate Air Traffic Control

9. No Security

10. Scale of Phase 1 Component Cost by Project (US$ m) Total Cost (US$ m) KiribatiTongaTuvalu A – Aviation Infrastructure Investments$15.89$22.23$9.44$47.56 B – Aviation Sector Reform$1.45$1.55$0.58$3.58 C – Strengthening Airport Operations and Management Capacity$2.40$0.50$0.20$3.10 D – Project Support$1.78$1.69$0.88$4.35 Contingencies$1.72$2.56$0.92$5.21 Sub-Total$23.24$28.53$12.02$63.79 Taxes$3.49$4.28$1.80$9.57 Total Including Contingencies$26.72$32.81$13.82$73.35

11. PMU Based in Tonga at Tonga Airports Ltd. for Entire Program

13. Implementing Entities

14. Special Features Same equipment procured for all countries Airlines Providing Technical Reviews on Equipment ADS/B To Improve Navigation ‘Green’ Terminal Designs New Fire Tenders Salt Water Enabled All countries AU$ 5 ‘Safety and Security Levy’

15. Regional Benefits Harmonized Equipment Harmonized Regulations Improved Safety Oversight Improved Revenue for Aviation Safer and More Secure Travel

16. Tuvalu Aviation Investment Program

17. Roles World Bank –Ensure that grant funds are spent in accordance with purpose supplied Government –To implement project in accordance with grant agreements

18. Aviation Supports Travel for work Education Health Tourism Family Connections

19. Implications of Flight Disruptions on Economy

20. Investments Resurface Runway ($4.5 m) New Terminal / Control Tower ($2 m) Fire Tender Vehicle ($0.8 m) ADS-B Navigation ($0.4 m) Air Traffic Control ($0.25 m) PasNet Communications Network ($0.2 m)

21. … Investments Automatic Weather Station ($140,000) Security Screening Equipment ($120,000) Airfield Maintenance Equipment ($75,000) Laboratory/Testing Equipment ($50,000) Fire Crew Equipment ($30,000)

22. Other Design and Supervision ($710k) Support CAA/Line Ministries ($200k) Study Into Funafuti Operations ($200k) Safety and Security Oversight ($150k) Incremental Operating Costs ($150k) Training ($125k) Emergency Runway Repairs ($50k)

23. … Other Baseline Audit ($50k) Obstacle Limitation Survey ($40k)

24. Procurement Methods International Competitive Bidding –Terminals/Runways Shopping –Small Civil Works –Goods Force Account –Emergency Runway Repairs

25. Prior Review Thresholds

26. Procurement Packaging

27. Tentative Tuvalu Schedule

28. Project Support Team Assist Implementing Agency Manage Contract Implementation Report on Progress Manage Designated Account Expenditures

30. Flow of Funds

31. Reporting

32. … Reporting

33. AU$ 5 Passenger Safety and Security Levy

34. Next Steps Formally establish National Steering Committee Nominate member to Program Steering Committee Establish Project Support Team –PST Manager –Accountant –Assistant

35. Upcoming Early April –Complete recruitment of Design and Supervision Consultant –Signe contract Late April –Finance Manager to visit Tuvalu to train on Financial Management May –Launch workshop in Fiji

36. Questions