Announcement of 2.5 Million Dollars Credit for Aviation Communications in Afghanistan on April 30, 1973

• INTERNATIONAL DE,'ELOPMENT ASSOCIA.TION 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE EXECUTIVE 3-6360 IDA Press Release No. 73/27 Subject: $2.5 million credit for aviation April 30, 1973 communications in Afghanistan A credit of $2.5 million from the International Development Association (IDA), an affiliate of the World Bank, will assist the Afghan Air Authority (AAA) in improving the air navigation services in Afghanistan. The projec.t, fer which the Government of Afghan-isr::m u11 i i balance of the financing, is expected to cost $3cl milliono It includes the construction and equipping of a new Flight Infonnation Center (FIC) at Kabul, the provision of technical assistance to help ,establish a new entity, Air Navigation Services (ANS), to provide efficient air navigation services to international and domestic traffic in the Afghan airspace and the feasibility study and detailed engineering for a proposed new airport in the Logar valley • to serve the Kabul area. The project is scheduled for completion in 1978 • The IDA credit will finance the foreign exchange costs of the project. Afghanistan's civil air transport has been developed during the past 20 years and the country has 20 airports and air strips including two for international flights. The FIC installed in the mid-1950s has become obsolete and new equipment for the control of aircraft in accordance with Instrument Flight Rule standards is an urgent necessity. The new FIC to be established in Kabul will service all flights including aircraft flying over Afghanistan without landing. The ANS will be responsible for providing civil air navigation, air traffic control and air communications services. Execution of the project will be the responsibility of AAA. Following its establishment, ANS will asswne responsibi.lity for a major portion of the project. The project is based upon improvements in air navigation services suggested as part of a feasibility study financed by the United Nations Develop- ment Pro gramme. The Bank acted as the Executing Agent for the study. The IDA credit to the Government of Afghanistan is for a term of 50 years, including a 10-year grace period. It will be interest free except for a service • charge of 3/4 of 1% to cover IDA's administrative expenses . - 0 -  • April 30, 19 73 TECHNICAL DATA PROJECT: Aviation COUNTRY: Af.ghanis tan TarAL COST: $3.1 million equivalent. IDA FINANCING: $2. 5 million, 50 years, including 10 years of grace, interest free except for 3/4 of 1% service charge to cover IDA's administrative expenses. OTHER FINANCING: Government of Afghanistan. RELENDING TERMS: Government will on-lend $1.7 million to the Afghan Air Authority (AAA) at 7\% for 12 years including 2 years of grace to • finance the Flight Information Center. Once Air Navigation Services (ANS) is established it will assume repayment and other obligations from AAA. Government will make available to AAA, as a grant, $800,000 for the study and engineering of the proposed airport at Lo gar. PROJECT DESCRIPTI~: Design, construction and equipping of a flight informa- tion center at Kabul to serve aircraft using Afghan airspace; technical assistance to ensure the efficient operation of the new FIC m1der ANS; economic and engineering feasibility studies for tlE proposed new airport to serve the Kabul area; engineering and consulti.ng services. IMPLEMENTING ORGANIZATION: Afghan Air Authority, Kabul. (ANS will assl.Ulle responsibility for the FIC, once ANS is established)o PROCUREMENT: International competitive bidding for a single contract for the supply of equipment and construction and installation costs. An air traffic control simulator costing $20,000 is manufactured to ICAO specifications by only one supplier, a Canadian firm, and would be pro- cured from that firm. CONSULTANTS: Proposals have been invited from international firms for the supervision of design, procurement and installation of the FIC equip- ment and, for the feasibility study and engineering for the proposed • new airport. ESTIMATED COMPLETION DATE: 1978. - 0 -