KazAirNavigation

Location:

Kazakhstan

Project number:

50182

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

27 Mar 2019

Status:

Board Approved

PSD disclosed:

11 Oct 2018

Translated version of this PSD: Russian

Project Description

The provision of debt financing for priority investments in air traffic control systems of the Republican State Enterprise "Kazaeronavigatsia" of the Committee of Civil Aviation of the Ministry for Investments and Development of the Republic of Kazakhstan.

Project Objectives

Contribution to the increased aviation safety, operational efficiency of flexible usage of the Kazakh airspace and increase of air traffic transportation.

Transition Impact

The expected transition impact of the Project is derived from improvements in flight safety standards, introduction and implementation of performance based navigation, and enhanced corporate governance practices.

Client Information

KAZAERONAVIGATSIA SE

EBRD Finance Summary

EUR 60,000,000.00

Total Project Cost

EUR 60,000,000.00

Environmental and Social Summary

The Project has been categorised B in accordance with the EBRD Environmental and Social Policy 2014. Environmental and social due diligence (ESDD) was undertaken by external environmental and social consultants, and included a review of documentation and the Company's corporate management systems and a site visit and discussions with the Company's personnel to evaluate the current operational performance, and the risk management plans for the planned investment programme. 

A review of the Company's corporate management system showed that it has a well-established integrated EHS management system that has been developed in line with good international practice and is implemented throughout their operations.  The Company has the capacity to implement the project in line with the Bank's Performance Requirements.  The proposed procurement and installation of backup air traffic control systems, mobile air traffic control towers, and mobile flight control centres is not associated with significant environmental and social issues and will facilitate compliance with ICAO requirements to improve safety and security standards.

 The ESDD also focused on the well-being and labour standards of traffic controllers and confirmed that they are provided with proper assessment of stress and other medical conditions and all required facilities and medical services are provided at the work stations. Additional measures include extended holidays leave, flexible and variable working shifts and sufficient back up system. No worker related issues have been identified.

 An Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company to address some improvements which will enable the Company to align with the Bank's PRs. These include: improvement in contractor management arrangements and selection of contractors based on EHS performance where applicable; preparation and submission of a Resource Plan for emergencies; review risk assessment to ensure a permit to work / safety plan is available for all specific high risk tasks. The Company will also locally disclose information on its environmental and social performance. The Bank will monitor the Company's environmental and social performance and implementation of the ESAP through annual E&S reports.

Technical Cooperation

Pre-signing TC, funded by the Bank:

  • Advanced Procurement Advisory Services
  • Environmental, Social, Technical, Market and Financial Assessment/Infrastructure Project

Preparation Facility/ Framework Consultants for the Sustainable Infrastructure Window

Company Contact Information

Ruslan Magzumov
magzumov@ans.kz

 

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