TAA TANZANIA AIRPORTS AUTHORITY ISO 9001 14001

TAA TANZANIA AIRPORTS AUTHORITY ISO 9001, 14001 & OHSAS 18001 Certified TAKING CIVIL AVIATION INDUSTRY IN TANZANIA TO THE APEX 1 st National Civil Aviation Forum, 2017 Financing Options for Airport Infrastructure Development Salim R. Msangi DG TAA Tanzania Airports Authority 0

TAA 1. 0 BACKGROUND ISO 9001, 14001 & OHSAS 18001 Certified • Air transport is a crucial development driver bringing both economic development and social benefits, including regional integration. • It has major rippling effects on job creation as well as trade and tourism etc. Tanzania Airports Authority 1

TAA BACKGROUND……. …… ISO 9001, 14001 & OHSAS 18001 Certified Financing Airports Development Throughout the World, Airports are being developed and upgraded to become airport cities with modern and sophisticated facilities. Various sources of funds: • Airport surplus (retained earnings) • Government grants-in-aid • Borrowed funds • Third-party development • Private Sector Participation Tanzania Airports Authority 2

TAA BACKGROUND………… ISO 9001, 14001 & OHSAS 18001 Certified Global Trend of Airport Competition • World and Regional air transport is growing. • Competition between Airport Operators is getting stiff. • In East & South African Region, countries are competing in provision of quality services and facilities to aviation customers (e. g Nairobi, Kigali, Addis, JNB, Zambia). Tanzania Airports Authority 3

TAA BACKGROUND………… ISO 9001, 14001 & OHSAS 18001 Certified • Global Passengers traffic grew by 6. 4% in 2015 reaching 7. 2 billion. • Africa Region Passengers traffic grew by 0. 6% in 2015 reaching 179. 76 million. • Tanzania Passengers traffic declined by 1. 1% in 2015 reaching 5. 2 million. • JNB(4. 8%), CAI(7. 9%), CPT(8. 8%), ADD(11. 7%), LOS(-8. 9%), NBO(1. 5%), JNIA(0. 7%). Source: (ACI: World Airport Traffic Database, 2016) Tanzania Airports Authority 4

TAA BACKGROUND………… ISO 9001, 14001 & OHSAS 18001 Certified • Likewise, Tanzania is not an island, we have been striving to develop our Airports infrastructure( slow pace) to be competitive in the region. Tanzania Airports Authority 5

TAA BACKGROUND……. ISO 9001, 14001 & OHSAS 18001 Certified • Given a mandate to Develop Airports Infrastructure including facilities. • To operate, manage and maintain. • Aiming to make the Aviation Industry competitive within the region and beyond. Tanzania Airports Authority 6

TAA BACKGROUND……. …… ISO 9001, 14001 & OHSAS 18001 Certified • We have been working through our Vision and Mission. • To provide high quality airport services and facilities to become a world class airport operator. Tanzania Airports Authority 7

TAA 2. 0 EFFORTS MADE BY THE GOV ISO 9001, 14001 & OHSAS 18001 Certified For the past 18 years, TAA through Government support has improved and developed Airports infrastructure and facilities through the following financing arrangement: 1. Government Budget 2. Loans 3. Grants Tanzania Airports Authority 8

TAA EFFORTS MADE………………. . ISO 9001, 14001 & OHSAS 18001 Certified Completed Projects: 1. JNIA: Rehabilitation and Upgrading of airside pavements and Facilities. Financier: GOV & ORIO 2. Mpanda: Upgrading of airside pavements and Facilities Financier: GOV & UNHCR 3. Arusha – Resurfacing of Runway, Taxiway & Apron. Financier: GOV Tanzania Airports Authority 9

TAA EFFORTS MADE………………. . ISO 9001, 14001 & OHSAS 18001 Certified 4. Tabora: Upgrading of runways, taxiway and Apron. Financier: GOV & WB 5. Kigoma Upgrading of runway. : Financier: GOV & WB Tanzania Airports Authority 10

TAA EFFORTS MADE………………. . ISO 9001, 14001 & OHSAS 18001 Certified 6. Mafia: Upgrading of runway, taxiway and apron Financier: GOV & MCC ukoba: Upgrading runway, of taxiway, Apron and Construction of terminal building. Financier: GOV & WB Tanzania Airports Authority 11

TAA EFFORTS MADE………. . ISO 9001, 14001 & OHSAS 18001 Certified Ongoing Airports Projects 1. Construction of Songwe Airport Financier: GOV, BADEA & OFID 2. Mwanza Airport Financier: GOV, BADEA & OFID 3. Construction of TB III at JNIA Financier: GOV 4. Upgrading of KIA: Financier: GOV& ORIO Tanzania Airports Authority 12

TAA EFFORTS MADE………………. . ISO 9001, 14001 & OHSAS 18001 Certified Upcoming Airports Projects 1. Upgrading of Shinyanga Airport Financier: GOV& EIB 2. Upgrading of Sumbawanga Airport Financier: GOV& EIB 3. Construction of TB at Tabora Airport Financier: GOV& EIB Tanzania Airports Authority 13

TAA EFFORTS MADE………………. . ISO 9001, 14001 & OHSAS 18001 Certified Projects in Appraisal Stage Completed FS and DED: • Arusha • Msalato • Mtwara • Tanga, Iringa, Kilwa-Masoko, Lake Manyara, Moshi, Musoma, Lindi, Njombe, Songea, Singida, Bariadi (Simiyu region) Financier: GOV & WB Tanzania Airports Authority 14

TAA 3. 0 OUTCOME. ISO 9001, 14001 & OHSAS 18001 Certified Efforts made in airport infrastructure development for the past 18 years have shown positive growth in terms of : • Aircraft Movements, • Passenger, • Cargo, • Revenue. Tanzania Airports Authority 15

TAA OUTCOME……… ISO 9001, 14001 & OHSAS 18001 Certified 160, 000 Aircraft Movements 147, 057 140, 000 120, 000 100, 000 13 6% 80, 000 62, 221 60, 000 40, 000 20, 000 1999/2000 2016/2017 Tanzania Airports Authority 3 -16

TAA OUTCOME……. ISO 9001, 14001 & OHSAS 18001 Certified Tanzania Airports Authority 3 -17

TAA 4. 0 FUTURE PLANS ISO 9001, 14001 & OHSAS 18001 Certified • Airports today have become an integral part of the global economy. • Not only moving passengers and Cargo from country to country and continent to continent but Airports cities. • Aviation contributes about $2. 7 trillion of the Global GDP. (https: //aviationbenefits. org/economicgrowth/value-to-the-economy/ Tanzania Airports Authority 18

TAA FUTURE PLANS…. ISO 9001, 14001 & OHSAS 18001 Certified • • Continue Upgrading and Rehabilitating Airports Infrastructure. Modernization of Airport facilities. Enhancing Investments projects in non aeronautical Revenue. Involvement of Private Sector Tanzania Airports Authority 19

TAA FUTURE PLANS… ISO 9001, 14001 & OHSAS 18001 Certified • Developing JNIA as main hub of Tanzania. • Support National Carrier as it increases its operations. • Develop feeder airports (Mwanza, Songwe, Kigoma, KIA, Mtwara) to support the main hub. Tanzania Airports Authority 20

TAA 5. 0 FINANCING APPROACHES ISO 9001, 14001 & OHSAS 18001 Certified Financing of airports infrastructure; • Government funding • Grants and Loans • PPP Tanzania Airports Authority 21

TAA FINANCING…… ISO 9001, 14001 & OHSAS 18001 Certified As we All know: • GOV funding is insufficient • Gov budgets takes long time • TAA needs quick investments • Need to venture adversely in other financing structures such as involving Private Sector. Tanzania Airports Authority 22

TAA 6. 0 FINANCING THROUGH PPP ISO 9001, 14001 & OHSAS 18001 Certified The Government conducted a study on PPP appetite in the development of 11 Airports Infrastructure: Tanzania Airports Authority 23

TAA FINANCING THROUGH PPP……. ISO 9001, 14001 & OHSAS 18001 Certified Findings from the study on PPP Involvement as individual transaction 1. High Attractiveness for PPP JNIA and KIA 2. Low Attractiveness to PPP Arusha, Mwanza, Lake Manyara, Kigoma, Mafia and Songwe 3. Not Attractive for PPP Mtwara, Tabora and Msalato Tanzania Airports Authority 24

TAA FINANCING THROUGH PPP…… ISO 9001, 14001 & OHSAS 18001 Certified • Another Approach suggested create groups-Mixing Most airports with the non viable. Tanzania Airports Authority is to viable 25

TAA FINANCING THROUGH PPP…… ISO 9001, 14001 & OHSAS 18001 Certified Grouping by implementing BLOT PPP Model: Group A: KIA, Mwanza, Lake Manyara and Songwe airports Group B: JNIA, Arusha, Kigoma and Mafia airports Group C: Mtwara, Tabora and Msalato airports Tanzania Airports Authority 26

TAA 7. 0 CONCLUSION ISO 9001, 14001 & OHSAS 18001 Certified • Involvement of Private sector is the way to go. • TAA be Full Autonomous Tanzania Airports Authority 27

TAA ISO 9001, 14001 & OHSAS 18001 Certified Thank You For Listening Tanzania Airports Authority 28