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Civil Aviation Development Investment Program (CADIP)

Civil Aviation Development Investment Program

About CADIP

Background

The Civil Aviation Development Investment Program (CADIP) was initiated in 2009 after the Government of Papua New Guinea (GoPNG) approached the Asian Development Bank (ADB) to assist in the form of a Multi- Tranche Financing Facility (MFF) loan to help address the country’s deteriorating civil aviation infrastructure across the airports owned and operated by the National Airports Corporation. The MFF is delivered through Tranches 1, 2, and 3 or a series of projects. The MFF loan has been financing the following key areas of the scope:
  • Priority improvements to airports and air traffic services infrastructure to ensure compliance with the National Civil Aviation Safety Authority of PNG (CASAPNG), Civil Aviation Rules (CARs), and the International Civil Aviation Organization (ICAO) Standards and Recommended Practices (SARPs) relating to aviation safety and security standards;
  • Upgrade of selected airports to increase capacity to accommodate larger aircraft in response to growth in air transport; and
  • Capacity building and institutional strengthening of the National Airports Corporation, PNG Air Services Ltd, PNG Civil Aviation Safety Authority, Accident Investigation Commission, and Rural Airstrips Agency.

Aim

The CADIP aims to ensure safe and secure aviation infrastructure across PNG’s 22 national airports and also to ensure seamless air navigation services within PNG’s sovereign airspace. It also aims to ensure that safety and security in PNG’s aviation sector are substantially improved and the country’s economic growth is stimulated through both construction activity and ongoing economic growth stimulation at the local community level.

Generic Scope of Works under CADIP

The generic project scope for the airport’s infrastructure improvements includes:
  • Strengthening of the aircraft pavement;
  • Procurement of airport rescue and firefighting trucks;
  • Installation of airports standby power supply systems;
  • Replacement of visual approach slope guidance system (T-VASIS) with Precision Approach Path Indicator (PAPI);
  • Improvements to and/or construction of new terminal buildings and associated outbuildings;
  • Maintenance of airport facilities and pavement;
  • Procurement of basic airport maintenance equipment;
  • Setting up IT-based airport management systems
  • Installation of Very High Frequency (VHF) aeronautical mobile communications system;
  • Installation of High Frequency (HF) aeronautical mobile communications system; and
  • Replacement of Secondary Surveillance Radar at PMIA.

Another Project Scope under CADIP

Other features of works include social and community service obligations, environmentally friendly and cost-effective features including:
  • New terminal buildings;
  • New Airport Community Markets;
  • Public car park facilities;
  • Airport access roads;
  • Pedestrian access footpaths along the airport fence line;
  • Standalone airport water supply and sewerage system;
  • Skylight roofing and LED lighting in the terminal buildings;
  • Basic and automated check-baggage screening system as appropriate;
  • Passenger screening via walk-through metal detectors (with baggage to be checked manually still);
  • Solar-powered (green energy) street (LED) lights;
  • Closed-circuit television (CCTV) and Flight Information Display System (FIDS)
  • Airport Staff Houses;
  • NAC airport management offices;
  • Basic maintenance equipment (tractors, slashers, packers, mobile bitumen sprayers) for regional airports;
  • Maintenance workshops and storage facilities;
  • Airport operational vehicles; and
  • Community awareness in social safeguards (HIV/AIDS, environmental, and gender) within the airport vicinity.

CADIP Projects

CADIP Phase 1

High Impact Projects

Tranche 1 Projects

Tranche 1 Projects commenced in August 2010 and were completed in December 2015. These projects were valued at USD 112.0 million (K336.0 million) and comprised a total of ten (10) different projects that were delivered in five (5) years. The implementation of all Tranche 1 projects was completed in December 2015. A summary of all the completed projects is described below.

Tranche 2 Projects

Tranche 2 projects commenced in 2014 at a total cost of US$170 million.US$130 million was the ADB funding component and US$ 40 million for GoPNG funding. Most of the projects under Tranche Two (2) have been completed whilst only one (1) is ongoing. The following are the completed projects implemented under Tranche 2.

1. Vanimo Airport Pavement Strengthening

The contract for the Vanimo Airport Upgrade was awarded in 2014 to Global Construction Limited and was valued at K51.2 million. The scope of work at;
  • Airside - repairs of the taxiway & runway, strengthening to existing aircraft pavement, construction of 3m wide full-strength shoulders to the existing runway, widening of existing taxiway and apron, construction of half-strength shoulders to apron & taxiway, existing drainage & culverts improvements and airfield lighting plus apron flood lights.
  • Landside - supply and installation of security fence around airport perimeter, construction of new tractor shed, construction of new NAC staff house, construction of new Power House with associated works, and the supply, delivery, and installation of standby generators, tractors, and wind indicators.

2. Girua Airport Aircraft Pavement Upgrading, and Associated Works Project

The contract for Girua Airport Upgrade in Oro Province was awarded to China Harbor Engineering Company Ltd (CHEC) and works commenced on the 01st April 2015. The project was valued at K42.9 million and was completed in March 2016.
Scoping of works for the upgrade at;
  • The airside works included; upgrading the runway, taxiway, and apron pavement strengthening which were completed in March 2016.
  • The landside works include the following: construction of the new terminal building; construction of a new NAC site office; new generator shed; new tractor shed and workshop; installation of new bore water supply systems; new sewerage treatment system; new public toilets; and new airport market.

3. Chimbu Airport Pavement Strengthening

The Pavement Strengthening and Associated Works contract at Chimbu Airport contract was awarded to Shorncliffe (1967) Ltd and works commenced in March 2016. The contract was valued at K26.4 million. Scope of work for this project included;
  • Airside works included; pavement strengthening of the runway, taxiway; and apron; construction of subsoil drains, and open line drains, and preparation of the runway strip.
  • The landside works included; the installation of Hot Dipped Galvanized Palisade fence and gates, the construction of the H65 High Post house NAC staff residence, site office, and tractor shed.

4. Goroka Airport Aircraft Pavement Upgrading and New Terminal Building

The Goroka Airport Upgrade project was awarded to China Overseas Engineering Company Limited (COVEC) and was valued at K95.3 million. Works on the airport upgrade were completed with the new terminal building commissioned in June 2018.
The scope of work for this project at;
  • Airside included; pavement strengthening, runway strip widening, and all other works associated with it.
  • On the landside included; the construction of the new terminal building; the construction of the new airport fire station and emergency drill area, the airport maintenance shed, the standby power supply, and the temporary terminal building.

5. Tari Airport Aircraft Pavement Upgrade, New Terminal Building, and Associated Works

The contract for the Tari Airport Upgrade was awarded to CCECC & GMCC JV in August 2018. The project is ongoing and is valued at K79.2 million. The scope of work for this project at;
  • Airside includes; aircraft pavement upgrade; installation of security fencing and other associated works.
  • Landside includes; the construction of the new terminal building, a 3-bedroom H65 High Post House for NAC staff; a new airport vegetable market; an airport maintenance shed, and a standby power supply.
Overall Progress – works on the airside were completed and the runway has been in operation since 2020. Works on the landside including the construction of the new terminal building, installation of the security fence, and other associated works are in progress.

6. Momote Airport Security Fencing Installation

The contract for the Installation of Security Fencing and associated Works for Momote Airport was awarded to Kaulong Estate Limited and was valued at K11.7 million in total. Works for this project commenced in August 2016 and were completed in 2018. This project covered;
  • Installation of Hot Dip Galvanized Security fence and gates.
  • Installation of new culverts, construction of landside buildings which included construction of a new NAC staff house and refurbishment of the existing H65 High Post Houses; construction of tractor shed and the refurbishment of the existing NAC office.

7. Buka Airport Security Fencing Installation

The contract for the Buka Airport Security fencing project was awarded to Kemele Construction Limited in October 2016. Works commenced in January 2017. The project was valued at K11.0 million and was completed in November 2019. Works for this project covered;
  • Installation of Hot Dip Galvanized Security fence and gates.
  • Installation of new culverts, and construction of landside buildings which included an H65 High Post House for NAC staff, a Tractor Shed, a new NAC Site Office, and the airport access road.

8. Tokua Airport Security Fencing Installation Project and Associated Works

The contract for the Tokua Airport Security Fencing project was awarded to G-Man Construction in 2018. The project was completed in 2021 and was implemented at a total cost of K17.5 million. The scope of work for this project covered;
  • Airside - Installation of Hot Dip Galvanized Security fence and gates; pavement repairs work to central 12 meters of the runway; installation of new culverts;
  • Landside - construction of 3 Bedroom H65 High Post House, Tractor Shed, new NAC Site Office, new airport market, and the resealing of the airport access road and car park.

9. CNS/ATM – Replacement of Secondary Surveillance Radar

The contract was awarded to INDRA Australia for US$5.3m (K15.9m) on 5th February 2016. The project was implemented by Niusky Pacific and covered the replacement of the existing secondary surveillance radar which is sited at the Radar Hill at Jacksons Airport, Port Moresby with a new one. The radar coverage of the previous one was only up to 250 nautical miles whilst the new one installed extended the coverage to 265 nautical miles. The project was completed in 2020.

10. CNS/ATM – High-Frequency Aeronautical Communications System

The contract for this project was awarded to INDRA Australia at a value of US$12.9 m (K38.7m) and signed on 5th February 2016. This project was implemented by Niusky Pacific Limited and covered the installation of the new High-Frequency Aeronautical Communications System at Nadzab airport to provide consistent and higher quality HF communications coverage throughout PNG airspace from secure than the previous location which was in Port Moresby. The project was completed and the equipment was commissioned and is in operation.

11. CNS/ATM – Very High-Frequency Aeronautical Communications System

The contract for this project was awarded to ST Electronics of Singapore and was implemented at a value of US$5.3m (K16.0m). The contract was signed in February 2016. The project covered the supply and installation of several new Very High Frequency (VHF) Aeronautical Communications transceivers and associated equipment and works at various high-terrain sites throughout Papua New Guinea. It was implemented by Niusky Pacific Limited. The objective of this was to enhance and widen the existing lateral VHF coverage throughout PNG sovereign airspace and also bring the lower level of the VHF coverage even lower. The project was commissioned and in operation.

12. ARFFS Fire Tenders

The contract for the purchase of nine (9) fire trucks was awarded in November 2014 to Oshkosh Corporation (USA) and was implemented at K30.3 million. This project involved the procurement of 12 fire trucks to replace the existing fire trucks at the major airports that have outlived their useful life and incurred significant maintenance costs. In Tranche 1, a total of 3 fire trucks were supplied for Port Moresby whilst in Tranche 2, 8 of 9 fire trucks were supplied to Nadzab (2), Mt. Hagen (2), Tokua (2), and Goroka (1) and Madang (2). By 2018 all the 9 ARFFVs were delivered to the major airports.

13. Standby Power Supply for Nadzab and Tokua Airports & Associated Works

The project was awarded to G-Man Construction in 2018 and works on-site commenced in 2019. The project was valued at K9.3 million and covered; the provision of standby generators that meet the requirements for adequate and continuous power supply for Nadzab and Tokua Airports; construction of a new ARFF Mock-Up Area at Tokua and Supply and Installation of a Solar Powered Wind Indicator System at Tokua Airport. The project has been completed.

Tranche 3 Projects

Tranche 3 is at US$275m, of which ADB contributes US$248m and GoPNG contributes US$27m. The loan was approved and signed on the 03rd of March 2017 and became effective on the 25th of May 2017. The MFF loan closed on the 24th of November 2021. The status of projects implemented under Tranche 3 is as follows:

1. Momote Airport Aircraft Pavement Upgrade, New Terminal Building & Associated Works

The Momote Airport Upgrade Project contract was signed on 19th December 2016 between the National Airports Corporation (NAC) and China Harbour Engineering Corporation (CHEC). Works on site commenced in September 2017. The project was valued at K101.9 million which was completed in 2022 with the commissioning of the New Terminal Building held on the 25th of April 2022. This project covered;
  • Airside - the pavement strengthening and runway extension to cater for the B737-800 series aircraft operations into Momote Airport; replacement of airfield lighting system.
  • Landside – Construction of the new terminal building, standby power supply, and construction of new airport market and other associated works.

2. Mt. Hagen Airport Pavement Upgrade, New ATC Tower & Associated Works

The Mt. Hagen Airport Pavement Strengthening, New ATC Control Tower & Associated Works project contract was signed on 20th October 2017 between the NAC and Essar Projects (India) Ltd. The project was completed in 2021. The project was valued at K141.2 million. Scope of work for this project included;
  • Airside – the aircraft pavement strengthening (work on the runway, apron, and taxiway) to cater for the B737-800 series aircraft operations into Mt. Hagen Airport; widening of the runway strip;
  • Landside - Construction of the new Air Traffic Control (ATC) tower, new airport fire station, NAC staff houses, and maintenance yard and workshop building.

3. Mendi Airport Aircraft Pavement Upgrade, New Terminal Building & Associated Works

The contract for this project was awarded to Sinohydro Corporation Limited in May 2018. The Mendi Airport Upgrade project is ongoing and valued at K41.7 million. It covers the;
  • Airside – strengthening of the existing aircraft pavement to cater for the Dash 8-400 (Q400) series or aircraft of similar operating characteristics.
Overall Progress – works on the airside were completed in February 2021 and will be operational once CASA does an inspection and approval is granted. Construction of the new terminal building and other associated works are all in progress.

4. Vanimo Airport Runway Extension, New Terminal Building & Associated Works

The contract for this project was awarded to China Railway Civil Engineering Group Co. Ltd (CRCEG) in November 2018. The project was valued at K70.1 million. The project covers;
  • Airside - runway extension of 300 meters from the existing 1,700 meters to achieve a total of 2,000 meters for unrestricted operations of the Fokker 100 or aircraft of similar operating characteristics.
  • Landside – Construction of the new terminal building and associated works.
Overall Progress – the runway extension works were completed in 2020. Construction of the new terminal building was also completed and the facility was commissioned in June 2022. Ongoing works include the refurbishment of the PNGDF Forward Operating Base in Vanimo which is near completion as well.

5. Madang Airport Aircraft Pavement Upgrade, Runway Extension, New Terminal Building, and Associated Works.

The contract for this project was awarded to HBS – Essar JV in 2018 and is valued at K121.4 million. The is ongoing and covers;
  • Airside - strengthening of existing pavement; construction of flight strip extension.
  • Landside – construction for new terminal building; construction of new ARFF building; new tractor shed; construction of new NAC staff houses; construction of the new airport market facility; installation of the airport security fencing and other associated works.
Overall Progress – works on the airside were completed in 2021 with the runway in operation currently. Construction of the new terminal building is in progress. Construction of the ARFF building; new NAC staff houses; new tractor shed and other associated works were completed.

6. Gurney Airport Runway Extension, Terminal Building Extension/Refurbishment & Associated Works

The contract was awarded to Sinohydro Corporation Ltd on the 1st of March 2018 at the value of K30.6 million. The project was completed in 2020 and covered;
  • Airside – maintenance on the existing pavement and extension of the runway from the current 1,700 meters to 1,900 meters;
  • Landside - refurbishment to the existing terminal building, maintenance of the water supply reticulation system, 3 x NAC staff residences; new site engineer’s office, new powerhouse and back power supply new maintenance warehouse, and new airport market facility.

7. Kavieng Airport Aircraft Pavement Upgrade, Runway Extension, N/Terminal Building & Associated Works

The contract for the Kavieng Airport Upgrade project was signed this quarter between the State and the Contractor, China Railway Construction Engineering Group C. Ltd, and the National Airports Corporation in March 2020. The project is valued at K125.7million and covers;
  • Airside - strengthening of existing pavement, extending existing runway (by 500 meters to achieve a total of 2,200 meters), and widening the flight strip.
  • Landside – Constructions of the new terminal building, airport safety officer’s residence, maintenance shed building, new airport market facility, and others.
Overall Progress – works on both the airside and the landside are ongoing. The new terminal building is expected to be completed soon. Constructions of the NAC staff residence, NAC office, and new airport market were completed.

8. Wewak Airport Runway Extension, New Terminal Building & Associated Works

The contract for this project was awarded to China Shengyang International Economic & Technical Cooperation Corporation Limited (CSYIC) in 2018. The is valued at K59.5 million. The project covers;
  • Airside – aircraft pavement strengthening, extending the existing runway, and widening the flight strip.
  • Construction of the new terminal building, airport safety officer’s residence, maintenance shed, and other outbuildings.
Progress – construction of the new terminal building was descoped due to time constraints, and all other works including the refurbishment of the existing terminal building and car park reseal were completed. Energization of the new powerhouse completed and awaiting new 500kVa PPL transformer.

9. Wapenamanda Airport Aircraft Pavement Upgrade, New Terminal Building, and Associated Works.

The contract for this project was awarded in 2018 to Lorma-Socor JV. The project is valued at K45.9 million. Work for this project covers;
  • Airside - strengthening of existing pavement, widening flight strip.
  • Landside - Construction of the new terminal building, construction of new NAC staff residence, construction of a new tractor shed, and NAC site office.
Overall progress – works on the aircraft pavement were completed in 2021 with the runway in operation. Construction of the new terminal building is in progress and construction of the NAC staff residence, Tractor shed and NAC site office was completed. A temporary terminal is being used by the airline operators currently.

10. Kerema Airport Supply and Installation of Security Fence and Associated Works

The contract for this project was awarded to Jephthah Construction Ltd in 2018. The project was completed in 2020 and was valued at K10.6 million. It included securing the airport operating environment at Kerema Airport. Other works complementing the security fencing works included the construction of an airport safety officer’s residence, a maintenance shed, and a new powerhouse.

11. Kiunga Airport Supply and Installation of Security Fence & Associated Works

The contract for this project was awarded to Associated Builders and Contractors Limited at the value of K10.1 million in March 2020. The project covers the installation of airport security fencing to secure the airport operating environment at Kiunga Airport. Other works complementing the security fencing work include the construction of an airport safety officer’s residence, a maintenance shed, and a new powerhouse.
Overall Progress – Works on the installation of the airport security fencing, and construction of the NAC staff residence and tractor shed are all ongoing.

12. Airport Management Systems (AMS)

This project is for the procurement of Supply and Installation of Software Equipment for AMS at 7 regional airports. The main purpose is to install ICT infrastructure and systems to enable NAC to become a smarter and more efficient airport operator. The infrastructure to be implemented falls under 3 main categories;
  • Common Use Passenger Processing System (CUP) Software and Hardware.
  • Flight Information Display System (FIDS) - Software and Hardware.
  • Baggage Reconciliation System (BRS) -Software and Hardware.
  • Local/Backup Departure Control System - Software and Hardware.
  • Network Infrastructure - LAND Setup including cabling.
  • Document Management and Archiving Solution.
  • Unified Communication Platform.

CADIP Phase 2

Discussions on CADIP Phase 2 between the Government Central Agencies, Asian Development Bank, and key stakeholders are ongoing. The loan for CADIP 2 was approved in 2022. The loan is expected to be implemented for 5 years. NAC is currently preparing to tender 9 projects under CADIP Phase 2.

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