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Language: English
Original: English
AFRICAN DEVELOPMENT
BANK
MIC GRANT: STUDIES FOR THE LAUNCHING OF A
GEOSTATIONARY SATELLITE PROJECT –
NAVISAT
COUNTRY: EGYPT
MIC REPORT
Date: 18 February, 2009
Appraisal Team Team Leader: Salieu JACK, Chief ICT/Telecom. Engineer, OINF.3
Team Members: Khaled EL-ASKARI, Infrastructure Specialist, EGFO
Enock YONAZI, Principal Telecom. Engineer, OINF.3
Egal ROBLE, Chief Officer, ICT4D
Sector Manager Amadou Diallo
Sector Director Gilbert Mbesherubusa
Regional Director Jacob Kolster
Massamba DIENE, Chief Infrastructure Specialist, ORQR
Peer Reviewers Reginald Sherman, Senior Procurement Specialist, ORPU
Amadou Oumarou, Principal Transport Engineer, OINF.2
Karim Mhirsi, Principal Investment Officer, OPSM
Julian Bertlin, Senior Environmentalist, OINF.2
Rachel Aron, Socioeconomist, OINF.2
Stephen Owusu, Consultant, ORNA
i
TABLE OF CONTENTS
Table of Contents – Currency Equivalents – Weights and Measures – Acronyms and
Abbreviations – Grant Information – RB Log-frame i–v
1. INTRODUCTION ................................................................................................................................ 1
1.1Background ...................................................................................................................................... 1
1.2Study Goal and Objectives............................................................................................................... 2
1.3Justification ...................................................................................................................................... 3
2. SUMMARY DESCRIPTION OF STUDY........................................................................................... 3
2.1 Study Design and Formulation......................................................................................................... 3
2.2 Expected Outputs ............................................................................................................................. 5
3. COST AND FINANCING OF THE STUDY....................................................................................... 6
3.1 Study Cost ........................................................................................................................................ 6
3.2 Financing Plan.................................................................................................................................. 6
4. IMPLEMENTATION OF THE STUDY.............................................................................................. 7
4.1Executing Agency ............................................................................................................................ 7
4.2Implementation Schedule................................................................................................................. 7
4.3Supervision and Monitoring............................................................................................................. 8
5. FINANCING ARRANGEMENTS....................................................................................................... 8
5.1 Disbursement ................................................................................................................................... 8
5.2 Suspension of Disbursement ............................................................................................................ 8
5.3 Letter of Agreement ......................................................................................................................... 8
6. PROCUREMENT................................................................................................................................. 8
7. CONCLUSIONS AND RECOMMENDATIONS................................................................................ 9
Appendices (Evidence that Government is committed to implement the targeted project
in form of duly signed Request letter from Ministry of International Cooperation and
Minutes of meeting, ToR and detailed cost estimates) are available at:
\\afdbcprfs1\PRJT-OINF-PAR-ANNEXE\OINF_PAR_ANNEXES\EGYPT
ii
CURRENCY EQUIVALENTS
As of January 2009
UA 1 = USD 1.54
FISCAL YEAR
1 July – 30 June
WEIGHTS AND MEASURES
1 metric ton = 2204 pounds (lbs)
1 kilogram (kg) = 2.200 lbs
1 meter (m) = 3.28 feet (ft)
1 millimeter (mm) = 0.03937 inch
1 kilometer (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
ACRONYMS AND ABBREVIATIONS
ADB : African Development Bank
DFS : Detailed Feasibility Study
GoE : Government of Egypt
ICT : Information and Communication Technologies
MIC : Middle Income Countries
MOU : Memorandum of Understanding
NAVISAT : A Satellite-based Air Navigation and Safety Communications System
NEPAD : New Partnership for Africa’s Development
SLA : Service Level Agreement
SOW : Statement of Works
UA : Unit of Account
iii
Acronym Meaning Acronym Meaning
Global Navigation
Arab Civil Aviation Satellite System (Russian
ACAC Commission GLONASS )
Global Navigation
Aeronautical Earth Station / Satellite System
AES Aircraft Earth Station GNSS (European)
Global Positioning
AFI Africa GPS System
Agency for Air Navigation
Safety in Africa & International Civil
ASECNA Madagascar ICAO Aviation Organization
ATM Air Traffic Management MID Middle East
Air Traffic and Navigation
ATNS Services NAVISAT Navigation Satellite
Precise Positioning
CAA Civil Aviation Authority PPS Service
Communication Navigation
CNS Surveillance RFI Request for Information
EC European Commission (EC), RFP Request for Proposal
European Geostationary Ranging and Integrity
EGNOS Navigation Overlay Service RIMS Monitoring Stations
Southern African
Development
ESA European Space Agency SADC Community
Standard Positioning
EU European Union SPS Service
the European Organization
for the Safety of Air Very Small Aperture
Eurocontrol Navigation VSAT Terminal
European Satellite Wide Area
GALILEO Navigation System WAAS Augmentation System
GES Ground Earth Station
iv
GRANT INFORMATION
Client’s Information
BORROWER: Government of Egypt
IMPLEMENTING AGENCY: Ministry of Civil Aviation - NAVISAT
project
Financing Plan
Source Amount Instrument
ADB UA 600,000 MIC Grant
Government UA 55,200 Government Budget
Total Cost UA 655,200
ADB’s Key Financing Information
MIC Grant Currency UA
Timeframe – Main Milestones (expected)
Submission of MIC Grant to Country teams : 18/02/2009
MIC Grant Approval : 06/05/2009
Effectiveness : 30/05/2009
Last Disbursement : 31/12/2010
i
RESULT-BASED LOGICAL FRAMEWORK
OBJECTIVES EXPECTED RESULTS OUTREACH PERFORMANCE TARGET/DEADLINE ASSUMPTIONS/RISKS
INDICATORS
SECTOR GOAL LONG TERM RESULTS Beneficiaries By 2015:
1.1 Percentage of air travelers will have
Contribute to improving 1. CNS - ATM services RMCs 1.1 Percentage of air travelers increased; CNS/ATM services
1.2 Percentage of aircrafts 1.2 Percentage of aircrafts will have
Communications, Navigation, improved Civil Aviation successfully implemented.
1.3 Percentage of sales volume increased
Surveillance – Air Traffic Authorities in Africa for the navigation 1.3 Percentage of sales volume will have
Management services that would 2. Efficient air 1.4 Percentage of increased
provide cost effective satellite transportation communications services 1.4 Percentage of comm.. services will
communications and major 1.5 Percentage of volume of have increased
improvements in the aeronautical investment 1.5 Percentage of investment will have
services, thus enhancing safety 1.6 Percentage of volume of increased
and efficiency of air transport. accidents 1.6 Percentage of aircraft accidents will
have decreased
STUDY PURPOSE MID TERM RESULTS
Egypt full
The aim of these studies (legal, 1. Number of reports that are 1. By Q4 2009 commitment in order to
financial, frequency & regulatory Study approved RMCs produced allow financing by MDBs
and human resources) are to Civil Aviation 2. Study report approved by end 2009 possible
determine the feasibility of a Authorities in Africa 2. Timeliness of reports Egypt have
Satellite-based Air Navigation fulfilled technical pre-
and Safety Communications requisites as determined
System. by the study
ACTIVITIES / INPUTS SHORT TERM Feasibility Studies Documents approved by December Egypt Department of Civil
OUTPUTS documents approved by 2009 Aviation capacity on
i) Feasibility studies, including Egypt procurement aspects
Legal, Financial, Frequency & i) Feasibility Studies
Regulatory, and Human documents, fulfilling the RMCs
Resources. requirements of potential Civil Aviation Documents approved by December Mitigation: Appoint
financiers as an input for Authorities in Africa 2009 Project Coordinator to
project appraisal perform day-to- day
activities
FINANCIAL PLAN :
MIC fund UA 600,000
Egypt UA 55,200
TOTAL UA 655,200
1
REPORT AND RECOMMENDATION OF THE MANAGEMENT OF THE ADB
GROUP TO THE BOARD OF DIRECTORS ON A PROPOSED MIC GRANT
TO THE ARAB REPUBLIC OF EGYPT FOR THE FOLLOWING STUDIES:
LEGAL, FINANCIAL, FREQUENCY & REGULATORY AND HUMAN
RESOURCES FOR THE LAUNCHING OF A GEOSTATIONARY SATELLITE
PROJECT - NAVISAT
Management submits the following Report and Recommendation on a proposed MIC
Grant for UA 0.6 million to the Government of the Arab Republic of Egypt to finance the
following studies (Legal, Financial, Frequency & Regulatory and Human Resources) for
the launching of a geostationary satellite project - NAVISAT.
1. INTRODUCTION
1.1 Background
1.1.1 The civil aviation community realized in the early 1980s that the existing air
navigation system would not cope with the expected progressive increase in air traffic
and the needs of aviation-services users in the 21st century. Accordingly the International
Civil Aviation Organization (ICAO) established the Future Air Navigation Systems
committee “FANS”, which developed the concepts of a new air navigation system to
overcome the shortcomings of the existing systems. The new system known as
Communications, Navigation and Surveillance/Air Traffic Management (CNS/ATM)
utilizes space technology, using satellites for supporting communication and navigation
functions on a global scale. A harmonized world-wide implementation of the CNS/ATM
system is now running to achieve its full benefits for safer and enhanced air navigation.
1.1.2 The Egyptian Ministry of Civil Aviation Authority through the Egyptian Aviation
Holding Company (EAHC) took the lead to initiate the Geostationary Satellite
NAVISAT Project aimed at providing satellite-based air navigation and safety
communication services over Africa and some surrounding countries. A preliminary
feasibility study was conducted in 2004/2005 by Egypt Civil Aviation Authority, having
the expertise in CNS/ATM technology, and Alcatel Space which has a demonstrated
expertise in the design and deployment of telecom and satellite navigation systems. The
study results was the production of the Preliminary Technical Specifications of the
Services and the NAVISAT System, Preliminary Business Plans, and an Implementation
Roadmap for the NAVISAT Project. The results of the preliminary study and project
concept have also been reviewed and approved by the major civil aviation entities
(ICAO, ACAC, ASECNA, …etc.) in the region, setting the scene for the launch of the
second phase activities of the project for carrying out the necessary detailed feasibility
studies.
1.1.3 It is against this background that the Government of Egypt (GoE) have submitted
a request to the Bank to consider financing the detailed feasibility studies for the
“launching of a Geostationary Satellite (NAVISAT Project)” on a grant basis. These
studies comprise i) Business and Technical; ii) Regulatory & Frequency Coordination;
iii) Institutional, iv) Human Resources; v) Legal; vi) Financial; vii) Technical
Development & Optimized Solution; and viii) Project Management. Following a meeting
held on 15th October 2008 in Cairo, Egypt, a consensus was reached between the
NAVISAT Project team representing the Ministry of Civil Aviation of Egypt and the
2
Bank Staff that the Bank should consider the possibility of funding only these studies on
Legal, Financial, Frequency & Regulatory and Human Resources amounting to UA
600,000 since the NAVISAT project has already launched the bidding process for the
other studies. It is worth noting that these other studies are currently on-going. The GoE
in collaboration with it’s co-sponsors of the project are providing funds for these studies.
However, the implementation of the Bank supported studies will be synchronized with
the already on-going related activities undertaken by GoE.
1.1.4 The primary objective of the NAVISAT project is to assist the African Continent
which has no such navigation facilities (currently using radar systems). The proposed
satellites “foot print” covers the entire African continent and some surrounding countries.
NAVISAT services coverage is shown below.
Aeronautical
Communication
Coverage
Navigation Coverage and
Potential Telecom
Coverage
1.1.5 The Government of the Arab Republic of Egypt is therefore seeking a grant of
UA 600,000 from the Bank’s Middle Income Countries (MIC) Technical Assistance
Fund (TAF) to assist it in co-financing the services of consulting firms to undertake some
of the detailed feasibility studies of its NAVISAT project.
1.2 Study Goal and Objective
1.2.1 The sector goal of the study is to contribute to improving Communications,
Navigation, Surveillance – Air Traffic Management services that would provide cost
effective satellite communications and major improvements in the aeronautical services,
thus enhancing safety and efficiency of air transport. The objective of these studies (legal,
financial, frequency & regulatory and human resources) are to determine the feasibility of
a Satellite-based Air Navigation and Safety Communications System.
3
1.3 Justification
1.3.1 The implementation of the NAVISAT project will offer highly reliable
aeronautical telecommunication services over Africa and some surrounding countries.
The benefits of this project are multiple and cover institutional, technical, economical and
social aspects. The following are some of the major benefits:
1.3.2 For all African and surrounding Countries:
Cost saving of navigational aid ground equipment installation and maintenance;
Increase of traffic (more secured airspace will lead to more users) resulting in
additional Air Traffic Control (ATC) centres revenues;
The system will not overload states with extra costs as the ATC service provider
(as a user) will pay only the rental value of the received services; and
Low cost service (light infrastructure).
1.3.3 For all Airlines:
Reduction of delays and detours (due to application of Automatic Dependent
Surveillance (ADS) support) resulting in reduced fuel consumption, aircraft
maintenance cost, crew charges, etc.;
Airlines as a user will pay only for the exact amount of services they received
(cost per Kb/s) compared to the current situation in which airlines are charged for
distance/time/weight/type of aircraft flown over a particular country airspace; and
Relatively low cost of services as a result of applying the multi-mission concept;
and no investment for avionics (Sat Com) for already equipped aircraft.
Above all, the project will improve safety for air traffic in the continent resulting from the
high quality of services (availability, reliability, integrity), global coverage and the
overall monitoring of flights over the region.
1.3.4 This intervention is consistent with the Bank’s Medium term strategy 2008-2012
which requires the Bank to direct a significant proportion of its new commitment to
infrastructure. It is also in line with the current Bank’s Country Strategy Paper (CSP) for
Egypt which identifies support to infrastructure development, including transport
infrastructure, as one of its main pillars. The intervention further falls under pillar 1 of the
Bank’s ICT Operations Strategy which focuses on development of broadband
telecommunications infrastructure.
2. SUMMARY DESCRIPTION OF STUDY
2.1 Study Design and Formulation
2.1.1 The study will involve the procurement of the services of consulting firms to
undertake the following studies (legal, financial, frequency & regulatory, human
resources) aimed at contributing to improving Communications, Navigation, Surveillance
– Air Traffic Management services. In this regard, the following activities will be
4
undertaken: (i) legal studies; (ii) financial studies; (iii) frequency & regulatory studies;
and (iv) human resources studies.
2.1.2 Legal component
i) The Legal Advisor will collaborate with his national counterparts in the affected
countries in Africa and surrounding countries. The Advisor is needed on a limited basis
to provide all the consultancy services for negotiating and signing some MoUs, protocols,
SLA's and the contracts of manufacturing, insurance and launching process.
ii) The Legal Advisor is needed to support the legal and contractual issues in the
development of the SOW and finalization of the RFP. He/She is also needed to support
Corporate Governance, Incorporation Plan, Market Capitalization Plan and the evaluation
of the proposals submitted and final negotiations.
2.1.3 Financial component
i) The Financial Advisor will need to ensure that international best practices are
incorporated and adequately harmonized in financing proposals. The Advisor will
support the reviewing of the business case data at the end of this phase to ensure that all
information required later for raising finances are provided.
ii) The Financial Advisor is needed for the development of the Market Capitalisation
Plan and the business and technical consultant will support the Financial Advisor to
ensure that he/she understands the data required for his/her activities.
2.1.4 Frequency & Regulatory component
i) The Advisor will support the on-going Business and Technical Studies, maintain
the International Telecommunications Union (ITU) filings and Fixed Satellite Services
coordination, and support NAVISAT in coordination meetings and certification
processes.
2.1.5 Human Resources component
i) The HR Advisor’s tasks need to satisfy the following NAVISAT Organizational
Goals :
To structure the organization to reflect the infrastructure and service nature of its
key roles.
To ensure an agile organization that can react to a changing market and the speed
of technology changes.
To act as a Centre of Excellence for the services provided.
To foster a business culture that encourages retention of human capital and
associated skills.
To maximize the benefits from the NAVISAT infrastructure for future
applications.
To focus on end-users and operators.
In addition, the HR Advisor has to consider the possibility to increase recruitment and
training of female air traffic operators OR to develop a gender responsive HR strategy
premised on elevating professional advancement and training opportunities for women.
5
2.2 Expected Outputs
2.2.1 The major outputs of the study will be the production of (a) legal; (b) financial;
(c) frequency and regulatory; (d) and human resources documents that will be used as
main input in the implementation phase of the NAVISAT project. The study documents
will also serve as an input to prospective donors for their project appraisal. At the
completion of the study, stakeholders and potential promoters of the project would be
identified. According to the proposed NAVISAT institutional arrangement, public and
private investors from the region will constitute the NAVISAT company shareholders.
For this reason, Public Private Partnership (PPP) workshops will be organized by
NAVISAT and the Consultancy firm in order to sensitize the Stakeholders and solicit
financial support for the proposed project.
2.2.2 The strategic shareholders (regional public and/or private investors) will be
invited to join in the implementation of the project. The project implementation will
involve the: finalization of the manufacturing contract; manufacturing (of the two
satellites – active and standby); launching of the contract; launching; testing and
operation. The duration of these activities is estimated at three (3) years. The capital
expenditure (CAPEX) of the NAVISAT project is estimated at US$ 580 million.
2.2.3 Expected outputs for each of the main component of the study are shown below.
2.2.4 Legal component:
2.2.4.1 Legal Framework Report, including:
Legal Protection requirements: regional and international certification; and Intellectual
property rights (IPR) protection requirements.
The necessary insurance and liability coverage requirements and likely costs to support
the estimation of Capital and Operational Investment requirements.
The Company’s Governance Model; Market Capitalisation Plan; Draft Service Level
Agreement (SLA); MoU’s; And Company Bylaws Review Report.
2.2.5 Financial component:
2.2.5.1 Financial report, including the following:
Recommendations on content required for financial fund raising based on review of
business plan material developed in the Business Case and the Operating Model
Shareholders' Strategy
Tender Documents for Funding
Road-show material for fund raising Section on all activities done until the fund raising
engagements
2.2.6 Frequency and regulatory component report, including:
Initial Due Diligence Report
ITU filing documentation including API documents and risk and mitigation report/plan
Coordination Roadmap, including Coordination strategy and tentative plan
6
NAVISAT Frequency Coordination entity, including: Organization structure, mission,
duties and responsibility, human resources qualifications and skills and training required
Certification needs, regulations and standards
2.2.7 Human resources component:
2.2.7.1 Detailed organization structure up to Level-4 in the organization (lowest level),
for the selected Business & Technical scenario, including :
Functional descriptions
Human resources requirements
2.2.7.2 Support Report for the Technical and Business detailed Study, including :
Manpower plan including HR Priority Recruitments
Job descriptions and slot jobs for the required job families
Job Evaluation
Compensation and Benefits Benchmarking Report in the Egyptian market, and other
markets
Pay Scale Structure, inclusive of grade wise benefits
Cost Model, including Sensitivity Analysis Report and Impacts on the Revenue
3. COST AND FINANCING OF THE STUDY
3.1 Study Cost
The cost estimates for these studies are provided in Table 1 below. The total estimated cost
is about $ 1,009,008 (all in foreign exchange) equivalent to UA 655,200. A 5% price
contingency has been built into the cost estimates
Table 1: Study Cost Estimates
US$ UA
COMPONENT FC LC TOTAL FC LC TOTAL
Legal Studies 182,000 182,000 118,182 118,182
Financial Studies 293,000 293,000 190,260 190,260
Frequency & Regulatory
Studies 404,960 404,960 262,961 262,961
Human Resources Studies 81,000 81,000 52,597 52,597
Total base cost 960,960 960,960 624,000 624,000
Price Contingencies (5%) 48,048 48,048 31,200 31,200
GRAND TOTAL 1,009,008 1,009,008 655,200 655,200
3.2 Financing Plan
The total cost includes a MIC grant allocation of UA 600,000 under the MIC Technical
Assistance Fund (TAF) and the national counterpart of UA 55,200. The MIC TAF will
finance 92% of the total cost of studies while 8% will be borne by the Government of
Egypt contribution which will cover mainly expenses for the study team, dissemination of
7
reports, annual audit and workshop organization, etc. that would be reflected in the
Agreement. Table 2 below present estimated project costs by financing source.
Table 2: Estimated cost by financing source
Financing US$ UA %
Source F.C. L.C. Total F.C. L.C. Total
ADB 924,000 924,000 600,000 600,000 92
GoE 85,008 85,008 55,200 55,200 8
Total 1,009,008 1,009,008 655,200 655,200 100
4. IMPLEMENTATION OF THE STUDY
4.1 Executing Agency
4.1.1 The Government of Egypt (GoE) is the beneficiary of the MIC technical
assistance grant. The Ministry of Civil Aviation through its NAVISAT project team will
be the Executing Agency.
4.1.2 The NAVISAT Project team under the Ministry of Civil Aviation will be
responsible for the management and supervision of the studies and for reporting to the
MIC fund on its implementation. The team will also work closely with focal points in the
Ministry of Civil Aviation. Key persons in the team will be the Project Manager who will
manage the day-to-day activities of these studies. In addition, the team should include a
qualified accountant who will be responsible for financial control and quarterly reporting.
4.2 Implementation Schedule
The duration of the project study is estimated to last for six (6) months after the
procurement of the consulting firm and the contract is awarded. The indicative timeframe
is presented below.
Table 3: Indicative implementation plan
Activity Indicative date Responsibility
Bank’s Approval 6 May 2009 ADB
MIC Grant Signature 14 May 2009 ADB & GoE
Issue of Expression of interest (EOI) 16 May 2009 GoE
Bank’s approval of shortlist of firms 31 May 2009 ADB
Issue of Request for proposals 1 June 2009 GoE
Receipt of proposals 30 June 2009 GoE
Evaluation of proposals 2 July 2009 GoE
Bank’s approval of bids evaluation 10 July 2009 ADB
Negotiation and Contract Award 15 July 2009 GoE
Commencement of work 30 July 2009 GoE
Inception report 30 Aug 2009 GoE
NAVISAT and Bank’s comments 15 Sep 2009 ADB & GoE
Stakeholders workshop 30 Sep 2009 GoE
Final detailed Reports 31 Oct 2009 GoE
8
4.3 Supervision and Monitoring
4.3.1 During the study period, the NAVISAT team will prepare and forward to the
Bank through the Task Manager Quarterly Progress Reports highlighting the status of
activities, disbursements made and anticipated, problems encountered and solutions
envisaged, as well as the projected program for subsequent quarters. The first Quarterly
Progress Report shall be submitted to the Bank three (3) months after the grant has been
declared effective.
4.3.2 The Bank will monitor the implementation of the project through reviews of key
outputs of the study (Inception Report, Interim & Final Reports).
5. FINANCING ARRANGEMENTS
5.1 Disbursement
The disbursement of the grant will be through direct payments to the consultancy firms in
accordance with the Disbursement Hand Book guidelines.
The payment of the consultancy firm services will be done according to the deliverables
agreed upon in the contract. In sum, the cumulative payment shall reach 100% at the end
of the consultancy firm services.
All disbursements will follow the procedures and standard supporting documents outlined
in the Bank’s Disbursement Hand Book.
5.2 Suspension of Disbursement
The disbursements from the MIC funds will be governed by the Bank’s disbursement
regulations, in particular, the rules related to suspension of disbursements.
5.3 Letter of Agreement
Following the approval of the grant proposal by the Bank, the authorized representatives
of the Bank and the Government of Egypt will sign a Letter of Agreement in line with the
Guidelines for the Administration and Utilization of the Middle Income Countries
Technical Assistance Fund.
6. PROCUREMENT
6.1 The procurement of consulting services for the studies will be undertaken on the
basis of a shortlist of qualified firms, in accordance with the Bank’s Rules of Procedure
for the Use of Consultants. The NAVISAT project team will be assisted by the ADB
9
Egypt Country office Procurement Assistant in the recruitment process of the consulting
firms. The selection procedure will be based on Quality-and-Cost Based Selection
(QCBS).
6.2 Documents to be approved by the Bank during procurement
i) General and Specific procurement notices
ii) Short-list of consultancy firms
iii) Letter of invitation to Consultants (RFPs)
iv) Technical and Financial/Final evaluation reports
v) Draft contracts, if these have been amended from the drafts included in the
tender invitation documents
vi) Amendments to the signed contracts, if any.
vii) TOR for annual audit
6.3 For the procurement of services estimated to cost UA 200,000 and above, an
announcement shall be published in the UN Development Business (UNDB online) and
Bank’s website. For the procurement of services below UA 200,000, the announcement
shall be published in local and regional newspapers.
6.4 The procurement of external auditing firm to carry out annual auditing of the
project accounts will be undertaken following national procedures since this component
will be financed from Government of Egypt contribution.
7. CONCLUSIONS AND RECOMMENDATIONS
7.1 Considering the problems encountered in Africa regarding air navigation safety,
which result from the region difficult terrain; lack of adequate aviation safety facilities;
and the urgency to implement the International Civil Aviation Organization (ICAO)
strategy regarding air safety aimed at addressing the challenges of the expected air traffic
increase, the acquisition of the proposed CNS/ATM new system is considered as most
promising and responsive approach in this region.
7.2 In this regard, the Government of the Arab Republic of Egypt plans to contribute
to improving Communications, Navigation, Surveillance – Air Traffic Management
services in Africa by using cost effective satellite system for supporting communication
and navigation functions on a global scale for safer and enhanced air navigation. The
improved system will constitute an important enabler for regional integration. For the
project to be successfully designed and implemented, feasibility studies, including legal,
financial, frequency and regulatory and human resources components of the new system,
would be required. Hence, the request of Egypt for the Bank to finance these studies to
prepare for this proposed project.
7.3 At the completion of these studies, Egypt intends to use the studies’ outputs to
attract public and private investors from the region. All stakeholders including the Bank
and potential promoters of the project would be identified. Public Private Partnership
(PPP) workshops will be organized by the Government and the Consultancy firms. The
objective would be to present the findings and recommendations of these studies and also
sensitize the stakeholders on the proposed project for resource mobilization.
10
7.4 In order to implement the proposed project, the Government of Egypt should
recruit consultancy firms, once these studies are completed, to prepare the tender
documentation to proceed directly to the implementation stage. The co-sponsors will be
mindful of environmental and safety requirements regarding their own internal policies
and due diligence and will make themselves alert to legal/environmental requirements of
any potential funding agency, or RMC legislation.
7.5 Based on the foregoing, it is recommended that a grant not exceeding UA 600,000
from the ADB MIC Technical Assistance Fund be extended to the Government of the
Arab Republic of Egypt for the purpose of co-financing the above mentioned feasibility
studies aimed at facilitating the implementation of the proposed NAVISAT project as
described in this memorandum.
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