SC5/DP8

COSCAP-NA 5th Steering Committee meeting

Funding and Budget

Discussion Paper

1.Introduction

1.1The purpose of this paper is to provide Steering Committee Members with an update of the funding received thus far and to provide a Budget update for the programme for 2006/2007.

2. Funding

2.1Contributions since the previous meeting have been received as under:

(a) Mongolia$49,974

(b) Rep. of Korea$99,990

(c) China$79,985

(d) Bombardier$ 4,132

(e)Transport Canada$110,170

Note: ROK has provided their five years of contribution to the programme.

Note: Transport Canada has advised that the funds would be provided in December 2005.

2.2Additional funding will permitthe extension of the Chief Technical Advisor (CTA) for an additional 12.0 months until February 2007. The Airworthiness Expert can be engaged for some period of 2006. As an interim measure, in order to retain the AWE in the region, he is being utilized by COSCAP-South East Asia and COSCAP-South Asia who have funding to engage an AWE for short-term periods.

2.3Annexure I indicate the total funds received by the Programme as of 31 October 2005, and the in-kind contributions.

3. Budget

3.1Annexure II outlines the latest budget based on the funds available as of 31 October 2005, which is expected to permit the operation of the programme up to February 2007. It should be highlighted that China has made three years contribution in the first two years and ROK has made five years of contribution in the first three years to facilitate the prompt establishment of the COSCAP-NA programme. The budget will permit the programme to continue to meet its obligations as outlined in the Programme Document, provided that funding from Member States and Donors is maintained at current levels.

4. Recommendation

4.1Approval of the updated budget for 2006.

Annexure I

COSCAP-NA PROGRAMME FUNDING

(AS ON 31 October 2005)

STATE CONTRIBUTION

STATE / 2002 / 2003 / 2004 / 2005 / TOTAL
1. / China (PRC) / 159,990 / 79,970 / 79,985 / 319,945
2. / DPRK / 29,990 / 29,990 / 29,990 / 89,970
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3. / Mongolia / 49,965 / 49,975 / 49,964 / 49,974 / 199,878
4. / ROK / 199,973 / 174,990 / 99,990 / 474,953
TOTAL: / 239,945 / 359,908 / 254,944 / 229,949 / 1,084,746

DONOR CONTRIBUTION

DONOR / 2002 / 2003 / 2004 / 2005 / TOTAL
1. / Airbus1 / 49,990 / 50,000 / 99,990
2. / Boeing1 / 100,000 / 50,000 / 150,000
3. / Transport Canada / 63,694 / 110,170 / 173,864
4. / Bombardier / 4,132 / 4,132
TOTAL: / 149,990 / 163,694 / 114,302 / 427,986

EUROPEAN COMMISSION CONTRIBUTION

1. / European Commission2 / - / 160,275 / - / 160,275

IFFAS CONTRIBUTION

1. / IFFAS3 / - / - / - / 95,300 / 95,300

BANK INTEREST (as at 30 June 2005)

2002 / 2003 / 2004 / 2005 / TOTAL
1 / State+Donor / 41 / 3,358 / 6,592 / 3,861 / 13,852
2. / EC / 1,221 / 971 / 142 / 2,334
TOTAL: / 41 / 4,579 / 7,563 / 4,003 / 16,186
TOTAL PROGRAMME FUNDS: US $1,784,493

Notes:

  1. Boeing contributions are tied to specific activities agreed between Boeing and the Project. Airbus contributions are tied to specific activities agreed between Airbus and the Project.
  2. EC contribution is tied to specific inputs identified in the EC/ICAO Grant Agreement related to the engagement of an Airworthiness Expert and Experts’Travel. The EC has signed an agreement with ICAO to provide Euro 500,000 over the first three years of the programme.
  3. IFFAS contribution is tied to specific inputs identified in the IFFAS/ICAO Grant Agreement related to the engagement of Flt Ops Expert/CTA, Airworthiness Expert, Dangerous Goods Expert and Aviation Enforcement Expert. This assistance is provided to Mongolia and DPRK.

3.IFFAS contribution is tied to specific inputs identified in the IFFAS/ICAO Grant Agreement related to the engagement of Flt Ops Expert/TA, Airworthiness Expert, Dangerous Goods Expert and Aviation Enforcement Expert. This assistance is provided mainly for MON and DPRK.

State/Air Operator Contribution of Air Transportation in Kind

(May 2003 to 31 October 2005)

ChinaUS$ 14,241

-Air China US$ 7,027

-China Southern Airlines US$ 4,774

-China Eastern Airlines US$ 300

-Hai Nan Airlines US$ 840

-Yun Nan Airlines US$ 1,300

DPRK (Air Koryo) US$ 4,030

Mongolia (MIAT) US$ 5,226

ROK US$ 6,420

-KAL US$ 2,836

-Asiana US$ 3,580

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