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Nadzab Airport Redevelopment Project

 

1.0 BACKGROUND

 

The Government of the Independent State of Papua New Guinea (hereinafter referred to as “GoPNG”) has received a loan from the Japan International Cooperation Agency (hereinafter referred to as "JICA") to finance the Nadzab Airport Redevelopment Project (the “Project”), which is to upgrade the existing Nadzab Airport to accommodate scheduled operations of B737 class aircraft for both domestic and international services as well as to handle diverted aircraft such as B767, B777 and B787 as an alternate airport of Port Moresby Jacksons International Airport.

 

The Project comprises the following components:

 

1. Construction Works with Japanese ODA financing;

- Design and Supervision Assignment

- Widening and/or strengthening of the existing runway, taxiways and apron;

- Construction of new taxiways and apron;

- Improvement of aeronautical ground lights;

- Construction of new passenger terminal building, administration building.

 

2. Embankment for protection from Erap river flooding from GoPNG Budget

 

The Project is expected to be completed by June 2021.  Location of the Project is Nadzab Airport, approximately 35km to the northwest of Lae City in Morobe Province.  Executing agency of the Project is National Airports Corporation (hereinafter referred to as “NAC”). 

 

 PNG Air Services Limited will carry out CNS/ATM upgrading works at Nadzab Airport separately from this Project.

 

 

 

2.0 COST ESTIMATE

 

The total cost estimate for the works included is about 700 Million Kina which includes Consultancy and Constructions Works for all tasks under project scope. JICA Eligible Financing is ¥26,942,000,000 Japanese Yen, GoPNG Funding 114 Million Kina.

 

 

 

3.0 TENTATIVE PROJECT SCHEDULE

 

The project has been estimated to be completed in Five (5) Years and the key activities concerning the project are outlined in Table 2.0.

 

Table 2.0: Project Schedule.

Key Activities

Expected Period

Duration in Months

Detail Design and Preparation of Bidding Documents

Jan. 2017 - Dec. 2017

11

Assistance in Bidding Procedures

Oct. 2017 – Jan. 2019

15

Construction Supervision of Civil Works

Jan. 2019 - Jul. 2021

30

Defect Notification Period

Jul. 2021 - Jun. 2022

12

 

 

 

4.0 PROGRESS UPDATE AND INTERNAL SCHEDULE.

 

Progress on the Procurement of the Nadzab Airport Redevelopment is shown below;

 

Table 3.0: Activity Progress Schedule

Item

Activity

Estimated Date

Remarks

1

NAC sought NEC approval and approval was granted.

5th Dec 2013

NEC Decision No. 429/2013

2

JICA Pre-Feasibility Study

September 2013

Complete

3

JICA Full Feasibility Study

April 2014

Complete

4

DoTres sought NEC approval for proposed borrowing of ¥ 26,942 Million (PGK578 Million) and GoPNG Counter Part Funding of PGK 114 Million.

28th July 2015

Approval granted by NEC. NEC Decision # 218/2015

5

Loan Negotiation at Tokyo, Japan

19th – 20th August 2015

Complete

6

Loan Agreement Signing

14th October 2015

Complete

7

Project Memorandum Signed

15th December 2015

Complete

8

Signing of the Subsidiary Loan Agreement (SLA)

13th January 2016

Complete

9

Loan Effectuation Date

28th April 2016

Complete

10

Award of Design and Supervision Consultancy (DSC) Contract

Awarded and Signed 27th September 2016

Complete

11

DSC Commencement Date

6th February 2017

Design Progress