Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697808305483.pdf (Micronesia, Federated States of)
STANDING COMMITTEE REPORT NO.

19-175 RE: C.R.

NO.

19-282/T&C SUBJECT: APPROVING A GRANT IN THE AMOUNT OF RMB 60,300,000 FROM THE PEOPLE’S REPUBLIC OF CHINA FOR PURCHASE OF Y12 AIRCRAFT OCTOBER 04, 2016 The Honorable Wesley W. Simina Speaker, Nineteenth Congress Federated States of Micronesia Fifth Regular Session, 2016 Dear Mr. Speaker: Your Committee on Transportation and Communications, to which was referred C.R.

No.
No.

19-282, entitled: "A RESOLUTION APPROVING AND ACCEPTING A GRANT FROM THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA IN THE AMOUNT OF RMB 60,300,000 FOR THE PURCHASE OF A Y12 AIRCRAFT, INCLUDING THE TERMS AND CONDITIONS OF THE ASSISTANCE.”, begs leave to report as follows: The intent and purpose of the resolution are expressed in its title.

Public Hearing Your Committee conducted a public hearing on the resolution on October 3, 2016.
Present at the hearing to testify and to answer questions were the following: the Secretary of TC&I; the Assistant Secretary for Civil Aviation; the Deputy Secretaries for Foreign Affairs; and a SCRL 19-199/CRN 19-282/T&C COMMITTEE STANDING COMMITTEE REPORT NO.

19-175 RE: C.R.

NO.

19-282/T&C SUBJECT: APPROVING A GRANT IN THE AMOUNT OF RMB 60,300,000 FROM THE PEOPLE’S REPUBLIC OF CHINA FOR PURCHASE OF Y12 AIRCRAFT OCTOBER 04, 2016 representative from the Office of the President.
Prior to the hearing, the Assistant Secretary for Civil Aviation provided your Committee with a handout entitled, “FSM Civil Aviation Services Report: Foreign-Aid Supply of Y12E Aircrafts for FSM (Status of Sept. 25, 2016).” The handout contained detailed information regarding the following: a history of contract negotiations culminating in the final August 2016 contract; an annual proposed operational budget of $1,040,154.03 for one Y12E aircraft by Caroline Islands Air; a description of the Y12E aircraft including its main geometry data (e.g.
wing span, height, etc.).

The handout states that the Y12E has a maximum range of 723 miles and a required runway length of 3,000 feet.

Your Committee opened the hearing explaining that the hearing was necessary to address a number of concerns raised by members including the safety of the Y12E; the possibility of substituting a vessel for the Y12E; the required landing distance; and the yearly operational cost of the Y12E.
The Secretary of TC&I explained that the Y12E project was a carry over priority from the previous administration.

He summarized the history of agreements that ultimately led to the current contract signed in August 2016.

The main difference in the current contract is that the People’s Republic of China has agreed to fund the total cost from an ODA grant to the FSM.

He explained that the aircraft has already been painted in the CIA colors and that it is ready to be flown to the FSM for test flights.
The Secretary explained that the Y12E is based on the Canadian “twin otter” aircraft design, but has only 17 seats and a shorter range.

The Y12E can fly non-stop between Kosrae and Pohnpei and Chuuk, but must make an intermediate stop (probably at Woleai) in order to fly between Chuuk and Yap.

-2- STANDING COMMITTEE REPORT NO.

19-175 RE: C.R.

NO.


19-282/T&C SUBJECT: APPROVING A GRANT IN THE AMOUNT OF RMB 60,300,000 FROM THE PEOPLE’S REPUBLIC OF CHINA FOR PURCHASE OF Y12 AIRCRAFT OCTOBER 04, 2016 In response to concerns expressed regarding the plane’s safety, the Assistant Secretary for Civil Aviation explained that the body design copied the Canadian “twin otter” and that the engines are Canadian made.

Although the plane contains some Chinese made parts, they are parts that are commonly used and are FAA approved.
Also, Avionix, the manufacturer, has obtained FAA approval.

Your Committee and the witnesses engaged in a discussion about how safety could be preserved when flying the long route between Chuuk and Yap.

The Assistant Secretary explained that no flight route is approved unless two alternate airports can be identified in case of the need for an emergency landing.
Because there are not sufficient alternate airports at present, it has been suggested that for the time being the Y12E would fly “non-commercial” (i.e.

without passengers) between Chuuk and Yap until a flight route could be approved.

Also, because the Y12E requires a 3,000-foot runway, the runways at both Woleai and Houk would need to be improved and/or extended.
The witnesses explained that the preliminary plan from CIA is to service Yap, Ulithi, and Palau on non-United service days to provide better airline services connectivity in Yap.

The witnesses from the Department of TC&I explained that the speed of the Y12E is 270 km/hour, which is slower than the Queen Air.

There is a newer version of the plane, the Y12F, which is faster with a longer range due to the ability of the landing gear to retract.
Unfortunately, that version of the plane does not yet have FAA approval.

Your Committee also discussed with the witnesses the projected “break even” load factors for each of the flight segments.

The witnesses from the Department of Foreign Affairs confirmed that the Y12E agreement is a “done deal” and that there is not any room to -3- STANDING COMMITTEE REPORT NO.

19-175 RE: C.R.

NO.


19-282/T&C SUBJECT: APPROVING A GRANT IN THE AMOUNT OF RMB 60,300,000 FROM THE PEOPLE’S REPUBLIC OF CHINA FOR PURCHASE OF Y12 AIRCRAFT OCTOBER 04, 2016 renegotiate to redirect the grant money to a vessel, rather than a plane.

Conclusion Your Committee on Transportation and Communications is in accord with the intent and purpose of C.R.

No.

19-282 and recommends its adoption in the form attached hereto.

-4- STANDING COMMITTEE REPORT NO.

19-175 RE: C.R.

NO.


19-282/T&C SUBJECT: APPROVING A GRANT IN THE AMOUNT OF RMB 60,300,000 FROM THE PEOPLE’S REPUBLIC OF CHINA FOR PURCHASE OF Y12 AIRCRAFT OCTOBER 04, 2016 Respectfully submitted, /s/ Victor V. Gouland Victor V. Gouland, chairman /s/ Robson U. Romolow Robson U. Romolow, vice chairman Florencio S. Harper, member /s/ Ferny S. Perman Ferny S. Perman, member /s/ Esmond B. Moses Esmond B. Moses, member Alik L. Alik, member Isaac V. Figir, member -5-