Project description
and objectives:
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The proposed project is to support Tajikistan State Air Company (TSA) through the Bank's financing of: (i) pre-operation costs (technical support contract, modification work, cost for inspection and validation of certificates, registration cost, security deposits and other preparatory costs) in connection with TSA's leasing of two western aircraft; and (ii) an aviation consultant for the Project Implementation Unit.
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Transition
impact:
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Aviation is the only practical way to travel from Tajikistan to Russia and other international cities, but its capacity is very limited compared with the traffic demand. Through increased traffic capacity and thus closer economic links between Tajikistan and the rest of the World, the project will provide transition impact to the Tajik economy on trade, labour mobility, information and communications. Due to its geographical remoteness and the current lack of economic integration with the rest of the region and the world, aviation in Tajikistan occupies a vital position in fostering this.
Secondly, the Bank plans to propose a non-sovereign loan to the TSA which is a commercially managed public entity, without recourse to any state subsidies and pays a significant amount of taxes every year. There will be a substantial transition impact and potentially some demonstration effects upon other public enterprises in Tajikistan and upon other aviation enterprises in the CIS.
Thirdly it will contribute to a significant capacity building of the TSA. Its staff will acquire new high technology, operational skills and management of operating modern aircraft. The project will focus such know-how transfer intensively to be provided largely by the technical support provider in a relatively short period of time. This entails fleet rationalisation, improvement of aircraft utilisation by route analysis and schedule co-ordination, introduction of a management information system, improvement of distribution, ticketing, reservation systems and the capacity building of an in-house maintenance crew.
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Environmental impact:
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The project has been screened B/0, requiring an environmental analysis. The western aircraft to be leased will comply with international aviation safety and environmental standards, including ICAO and any specific EU standards of safety, fuel consumption, engine emissions and noise and will. The Environmental Analysis will focus on quantifying fuel and cost savings as well as emission reductions resulting from the substitution of two old Russian aircraft with the leased aircraft. TSA has also been requested to fill in the Bank's Corporate Environmental Due Diligence Questionnaire for Airlines.
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