Pacific Aviation Investment Program

The Pacific Aviation Investment Program (PAIP) is a regional aviation program being funded by The World Bank (WB). The Program will be implemented in four phases over a five to ten year period commencing with Kiribati, Tonga and Tuvalu on Phase 1. Future phases are anticipated to include, Samoa, Vanuatu and Solomon Islands.

The total investment for the Program is approximately USD114M; commencing with Phase 1 investments of USD22.91M for Kiribati with an additional funding of approximately USD18M funded by the Government of Taiwan; USD27.2M for Tonga; USD17.85 for Tuvalu and USD20M for Samoa with an additional USD8.02M through the European Investment Bank (EIB).

PAIP focuses on three main areas;

  1. Infrastructure investments;
  2. Aviation sector reform; and,
  3. Strengthening the operations and management of regional airports.

All three areas are essential to the achievement of the development objective. Each of these three areas forms components of the Program.

  1. 1. Component A: Aviation Infrastructure Investments

This component will invest in the aviation infrastructure so international airports are able to meet the ICAO safety and security standards, while preserving and extending the service life of existing airport assess. It will also contribute to regional safety and security through the introduction of improved regional navigation and communication technologies. The focus will be on improving safety and security as well as operating efficiency.

  1. 2. Component B: Aviation Sector Reform and Training

This component will support sector reform both regionally and within each participating country, although the projects for each country will be driven by the current status of reform efforts and local conditions. With financing from the Government of Australia (GoA) through the Pacific Regional Infrastructure Facility (PRIF), the regional reform activities will include preparation of a business plan for PASO, with the main focus on its ability to meet its objective of improving regional aviation safety and security, and then financing PASO services for participating countries. There is a strong training/capacity building program: (i) support to the Line Ministries and CAAs; (ii) training programs, including regional training activities to maximize the benefits; and (iii) industry training through secondments.

  1. 3. Component C: Strengthening Airport Operations and Management Capacity

This component will assist the countries to manage and operate their airports, given domestic capacity constraints. With financing from the GoA through PRIF, it will also undertake regional studies into: (i) aviation supply; (ii) how to sustain regional aviation infrastructure; and (iii) managing revenue from the upper air space.

  1. 4. Component D: Project Support

This component will finance the support required by the various parties involved in the Program. This will include: (i) incremental operating costs (IOC) for the Program countries to implement their project; (ii) the costs of Project Support Teams (PSTs) in each country; (iii)

A key feature of PAIP is its unique implementation structure which focuses on the establishment of a centralized Technical and Fiduciary Services Unit (TFSU) based in Tonga which leads Program implementation across the Region.

Commencing in 2012 with its Phase 1 countries, PAIP is currently in Year 2. Actual infrastructure works for runway overlays, terminal buildings, installation and upgrade of navigational aids and satellite communication networks are expected to comment tendering at various states in FY 13/14, with civil works planned to roll out through FY 13/14 and 14/15.

The PAIP program and investments have also attracted the attention of the wider Pacific Island region and other development partners. It is anticipated that this will result in wider regional investments in the sector designed to complement the initiatives underway in our PAIP countries and to provide further boost the operational and regulatory safety and security levels across the Pacific Island region as a whole.