Announcement of World Bank Lends Sixty-One Million Dollars for Aviation Development in Colombia on October 12, 1978

. ' FOR IMMEDIATE RELEASE . ' ~Wc)rld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/14 OCTOBER 12, 1978 WORLD BANK LENDS $61 MILLION FOR AVIATION DEVELOPMENT -IN COLOMBIA A project to improve the national aviation system in Colombia, including the construction of a new airport and the improvement of two others, will be carried out with the support of a $61 million World Bank 1oan. The project, with a total estimated cost of $97.8 million, will assist the Government of Colombia in providing necessary infrastructure to accommodate increasing demand for air transport. It will be the World Bank's first participation in aviation infrastructure development in Colombia. The Aviation Development Project includes the construction of a • new airport at Medellin, the second largest city of Colombia. The new airport will be located at Rionegro, about 23 kilometers east of the existing airport• It will consist of a 3,000-meter runway with parallel taxiway, terminal building, a control tower, and a crash-fire-rescue tower building. The project also comprises improvements at the airports of Bogota and Cartagena to provide adequate capacity for forecast traffic through 1990. The improvements wil 1 include lengthening and strengthening of the existing taxiways and aircraft aprons, and installation of navigational aids. Studies of airport user charges, of air fare and freight rate tariff-setting policy and guidelines, and of customs procedures are included in the project. A master plan for the further development of the airport at Bogota and a flight facility inspection aircraft will also be provided under the project. Also included are technical assistance and training for civil aviation personnel. The project will result in significant savings in costs for Colombian domestic and international air transport through more efficient use of aircraft and improvements in the reliability of services; these savings are expected to accrue largely to users of such services. Theim- provements will provide facilities to cope with the increasing volume of air traffic and remove significant restrictions now imposed at Medellin and Bogota. • •• I • NOTE: Money figures are expressed in U.S. dollar equivalents.  - 2 - The United National Development Programme (UNDP) will provide $100,000 to finance the study of customs procedures. The $61 million loan will have a term of 17 years, including years of grace, with interest at 7.9% per annum. 4 • - 0 - • • :FORM NO. 1121 (5-76) T E C HN I CA L D A T A • PROJECT: Aviation Development COUNTRY: Colombia TOTAL COST: $97. 8 mi 11 ion BANK FINANCING: $61 million for a term of 17 years, including 4 years of grace, with interest at 7.9% per annum. OTHER FINANCING: Fonda de Aeronautica Nacional (FAN), $36.8 million United Nations Development Programme (UNDP), $0. 1 million IMPLEMENTING ORGANIZATION: Departamento Administrativo de Aeronautica Civil (DAAC) Aeropuerto Internacional de Eldorado Bogota, Colombia PROJECT DESCRIPTION: It includes: a) improvements to the Bogota and Cartagena airports; b) development of a new domestic airport at Medellin; c) provision of a flight facility inspection aircraft; d) preparation of a master development plan for Bogota airport; e) a study of the value of the assets of • the FAN; f) a study of airport user charges; g) a study of air fare and freight rate tariff-setting policy and guidelines; h) a study of customs procedures; and i) tech- nical assistance and training for the DAAC. PROCUREMENT: Contracts for civil works (earthworks, paving, drainage, water and electrical supply and distribution, sewerage, buildings, etc.) and visual aids, navigational and communications equipment, and installation will be awarded after international competitive bidding by prequalified contractors. The contract for flight facility inspection aircraft and associated equi~ment will also be awarded after international competitive bidding. On all other equipment contracts, local bidders will be granted a margin of preference of 15% on the CIF value of foreign bids or the applicable customs duties, whichever is lower. CONSULTANTS: About 64 man-years of financial and engineering consultant services w~ll be required. The project also includes 13 man-years of technical assistance consisting of: air traffic control (one year), electronic engineering and maintenance (two years), spare parts procurement and warehousing (two years), airport and terminal building management and operation (three years), airport accounting (three years), and planning (two years). It also provides for 100 man-years of training for key technical and professional staff. • ECONOMIC RATE OF RETURN: 22% ESTIMATED COMPLETION DATE: 1982 - 0 -