Tajikistan Air Navigation

Location:

Tajikistan

Project number:

50216

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

24 Jul 2019

Status:

Signed

PSD disclosed:

16 Apr 2019

Translated version of this PSD: Russian | Tajik

Project Description

A senior loan to the State Unitary Enterprise Tajikairnavigation (the “Company” or “TAN”) for the modernisation of its air navigation monitoring and control systems (the “Project”).

Project Objectives

The investment will improve the Company’s services quality and reliability via higher flight safety and security standards, support continuity of the service and minimisation of the airspace management disruption risks.

Transition Impact

Good.

The Project supports the Government of Tajikistan commitment to implement the Global Air Navigation Plan of ICAO for the period of 2016-2030 which, inter alia, will help TAN to improve its planning capacity.

The Project will ensure that the Company’s air traffic operation and management standards meet International Civil Aviation Organisation (“ICAO”) requirements. The expected transition impact is associated with better utilization and management of Tajikistan’s airspace capacity and improvements in flight safety (Integrated quality), as well as facilitation of legislative amendments for the introduction of performance-based navigation in Tajikistan (Well-governed quality).

Client Information

TAJIK AIR NAVIGATION SUE

TAN is a 100 per cent state owned company responsible for provision of air navigation services in Tajikistan.

EBRD Finance Summary

USD 7,000,000.00

Total Project cost is EUR 7.76 million, including EBRD financing of EUR 6.65 million and the Company’s own contribution of EUR 1.11 million.

Total Project Cost

USD 9,200,000.00

Project costs are expected to be US$ 9.2 million (€8.13 million).

Environmental and Social Summary

Environmental and Social Summary
Categorised B (2014 ESP). Due diligenceThe Project has been carried out categorised “B” in accordance with the EBRD Environmental and Social Policy 2014. Environmental and social due diligence (“ESDD”) was undertaken by independent consultants, and it has shown that theexternal environmental and social (E&S) issues associated with the consultants, and included a review of the Company's corporate E&S management systems and documentation, 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 an established internal 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 purchase and upgradeinstallation of the air navigation and meteorological equipment at Dushanbe and Khujand airports will be limited and can be mitigated by good management and construction practice. The due diligence has identified a number of areas where mitigation actions will be required to be agreed with the client in the form of anis not associated with significant environmental and social issues and will facilitate compliance with ICAO requirements and international best practice to improve safety and security standards.

The Environmental and Social Action Plan. This plan will be fully agreed with the client (“ESAP”) has been developed for the Project to address some improvements which will enable the Company to align with the Bank's PRs. These include: update of EMS and OHSMS for the project in line with best international practice; enhancing internal HR and labour management practices, including working conditions of employees and grievance mechanism; improvement of contractor management and ensuring EHS requirements are well incorporated into their contracts; update and submission of an Emergency Preparedness and Response Plan; carrying out a survey of asbestos-containing materials (“ACM”) presence and preparation of ACM management plan; finalising and implementing a Stakeholder Engagement Plan (“SEP”), including a grievance mechanism. ESAP will be agreed with the Company prior to Board review. and included in the legal agreements.

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

The following technical cooperation (the "TC") assignments are envisaged as part of this project:

Pre-loan signing

  • Project due diligence assessment including review of the industry, company's operations, financial and economic analysis of the proposed investments and Environmental & Social Assessment (EUR 74,500 financed by the EBRD Shareholder Special Fund ("SSF")).

Post-loan signing

  • Project Implementation Support. International consultant to support the Project Implementation Unit with procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting. The estimated cost of the assignment is up to EUR 200,000 to be financed by the SSF.
     
  • Institutional Support to Civil Aviation Agency and the Company for the development of air navigation sector . The estimated cost of the assignment is up to EUR 350,000 to be financed by the SSF.

Company Contact Information

Mr Loiq Ashurov, CEO
office@airnav.tj
+992 48 7011734
www.airnav.tj
32/3 Mirzo Mastongulova Street Dushanbe, Tajikistan 734012
 

Business opportunities

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