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COM (84) 330 
 
 
 
Vol. 1984/0146 
  
 
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Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
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COMMISSION OF THE EUROPEAN COMMUNITIES
COM(84) 330 final 
Brussels, 19 June 1984
Transmission to the Council for decision of a financing 
proposal on which the Committee has not delivered a 
favourable opinion (Article 20, para 2 of the Internal Agree- 
ment of 1976 concerning the financing and the 
management of Commumnity Aid 76/165/EEC)
(Commission Communication to the Council)
COM(84) 330 final

r j
Transmission to the Council for decision of a financing proposal 
on which the Committee has not delivered a favourable opinion 
(Article 20^. p^ar a'2 of'the Internal Agreement of 197~6~ 
concerniiig^the financing and the management of 
Community Aid 1  76/165/EEC))
(Commission Communication to the Council)
During the course of the 189th meeting of the EDF Committee on 10 April 1984, 
the Commission submitted the following project for its appraisal:
LESOTHO (4th EDF - Special Loan - 3 000 000 ECU)
International Airport of Maseru.
Supply of:
- navigational aids
- meteorological equipment
- telecommunications equipment
prefabricated control tower cab complete with instrumentation and 
air conditioning.
The EDF Committee did not deliver a favourable opinion on this project.
The Lesotho authorities made it known to the Commission services on 
11 April 1984 that they did not wish to be heard by the EDF Committee.
In accordance with Article 20 of the Internal Agreement, the Commission 
is therefore unable to take a financing decision regarding this project. 
Consequently, in application of Article 54, para 3, of the first Lomé 
Convention, the Council is herewith being approached to take a decision 
in accordance with the request from the Lesotho Authorities.
The main arguments put forward by certain delegations of the Member States 
opposing the project were as follows:
- Given the development needs of Lesotho in other sectors, it is not 
possible to justify the construction of a large international airport in 
terms of development and economic needs.
- There are contradictions between this project and certain declarations 
made by the Commission subsequent to the programming meeting of
24 June 1976.
- There is no explanation regarding the financing gap of 10.06 million US$. 
How will this be met?
- The economic and development justifications for such a project are 
obscure.
Repli es from the Commission Services
- The programming mission report established in March 1976 and
countersigned by the then Director-General, Mr. H. Krohn, and the 
Minister of Finance and Development Planning of the Government of 
Lesotho, states the following:

-  2 -
"ECONOMIC INFRASTRUCTURE SECTOR
Lesotho Airport Development R 4.0 million
This item represents a contribution, together with other donors to 
Lesotho's airport development.
This airport is required for medium range aircraft operating to a large 
extent on a regional ACP basis, thus facilitating the development of 
regional air passenger traffic between Lesotho and other ACP and 
potential ACP countries and the further expansion of Lesotho's airport 
trade."
- In the same report it is indicated that Lesotho's specific development 
objectives include among others the "improvement and expansion of transport 
and communications, concentrating on the facilities which most directly 
affect economic development...".
The existing airport near Maseru cannot be developed to accommodate 
medium-range aircraft. The Government of Lesotho consequently decided to 
construct a totally new airport facility located approximately 15 km. 
south west of Maseru. It has secured finance from such financial 
institutions as the Saudi and Kuwait Funds, BADEA, OPEC, ADB, from Abu 
Dhabi and Finland. The princple of an EDF contribution out of Lesotho's 
National Indicative Programme was accepted at the time of the Lomé I 
programming missions and subsequent programming committee meetings with 
the Member States.
- Under the 5th EDF Indicative Programme for Lesotho, a further 11%
(+ 3 MECU) is earmarked under the objective "Improving Lesotho's 
external communications as a land-locked country, by the development of 
its air transport services, notably with other ACP countries".
- At the SADCC Donors Conference of 19/20 November 1981 held in Blantyre, 
Malawi, EDF assistance to the Airport Project was reconfirmed.
- The new airport has been under construction since 1982, financed by other 
donors as well as the Government of Lesotho. The EDF contribution is 
limited to the purchase of navigational aids, meteorological and 
telecommunications equipment and a prefabricated control tower cab complete 
with instrumentation and air conditioning, all to be obtained from 
Community markets. This equipment will permit the safe operation of 
aircraft into and out of the airport by and day and by night and enable 
local weather conditions to be monitored and forecast, all adding to the 
greater flexibility and safer operation of the airport.
This equipment is essential for the airport to be operational.
- The Government of Lesotho has given a guarantee to finance out of 
its own resources any financing requirements which are outstanding on 
project completion. In the meanwhile, it is actively seeking further 
aid donors.

- 3 -
The Government of Lesotho is solely responsible for the decision 
to ooinsr t;nuo± this airport, donors having succeeded only in scaling down 
the concept to a dimension more commensurate with the country's true 
transport requirements. The Community's responsibility and liability 
with regard to the airport is limited to providing the aforementioned 
equipment.
- Finally, the Commission is of the opinion that since the Lesotho 
Government has more than once been assured that the Community is 
prepared to assist in its attempts to improve its transport and 
communications, especially in view of the country's landlocked 
position, a refusal would raise grave doubts in the Government's 
mind as to the Community's willingness to follow through on its 
assurances, and serve as, a potentially damaging example to other 
ACP countries.
Under these conditions, and in application of Article 20 of the
Internal Agreement, relating to the financing and the management of
Community aid, and in accordance with the request of the Lesotho
authorities, the Commission submits to the Council the attached
financing proposal and proposes that it take the following decision:
"The Council
"Having regard to Article 20 of the Internal Agreement relating to the 
financing and the management of Community Aid,
"Having regard to the Commission proposal
"Considering the justifications presented in the financing proposal 
and in the Commission communication to the Council
"Considering that the EDF Committee at its meeting of 10 April 1984 
did not give a favourable opinion on this project proposal.
"DECIDES:
"the project mentioned hereafter is approved:
REGISTRATION NO. TITLE OF PROJECT AUTHORIZED FINANCING
LE/412/76 Maseru Airport 3 000 000 ECU 
(Special Loan)

- 4 -
"Authorisation is granted to commit a total amount of 3 000 000 ECU;
"The Chief Authorising Officer of the European Development Fund is instructed 
to make any arrangements and commitment decisions that prove necessary to 
ensure the smooth execution of the approved project under the best 
economical and technical conditions.

COMMISSION
OF THE EUROPEAN COMMUNITIES
B r . y s . ç . e l ç . .J .a m a .c y ...1.98.4.
D ir e c to r e t* ~ G e n e r e l f o r  D e v e lo p m e n t
VIII/C-3
FOR OFFICIAL USE ONLY
FINANCING PROPOSAL 
IVTH EDF
TITLE OF PROJECTl
Maseru International Airport !
1
TYPE OF PROJECTI
Economic Infrastructure ;  
Art. 46 of Lomé .I
RECIPIENT STATEi
Kingdom of Lesotho
AUTHORITY SUBMITTING 
THE PROJECT■  - r --------
Go
vernment of the Kingdom of:Lesotho
REGISTRATION NUMBER 
OF THE PROJECT LE/ 412/76
SECTORAL CLASSIFICATION 
IN ACCOUNTANCY PLAN 44
COMMITMENT PROPOSED 3 000 000 ECU as a Special Loan
Indicative Exchange Rate: 1 ECU = 1.0134 Maloti (January 1984)
= 0.826254 US$
P ro v is io n a l a d d re s s : R u a  d a  la L o i 2 0 0 , B - 1 0 4 9  B ru s s a li -  T a la p h o n a  7 3 5  0 0  4 0 / 7 3 5 8 0  4 0  -  T e le g ra p h ic  a dd re ss: " C O M E U R  B ru sse ls·· -
T e le x : " 2 1  8 7 7  C O M E U  B "

r
I. SUMMARY Of THE PROJECT
This project consists of the provision of Navigational Aids, 
Meteorological equipment, communication systems and the 
control tower cab, complete with instrumentation, at the 
Maseru International Airport, now under construction at a 
site adjacent to the highway to Mafeteng, near Mazenod - 
about 15 km South-West of Maseru.
The equipment forming the subject of this project will be 
supplied and installed following an international call for 
tenders.
The overall completion date for the new airport is set for 
June 1985.
The objective of the project is the facilitation of the safe 
day/night operation of modern aircraft for civil aviation.
The total contribution to the project is 3 000 000 ECU 
which are proposed to be financed by way of a special loan 
within the IVth EDF Indicative Programme for Lesotho.

2
11.  BACKGROUND OF THE PROJECT 
1. General Background
Preparation of plans to replace the existing airport was started 
in the early 1970s and was speeded up in 1979 following the 
closure of the border with Transkei, when it became apparent 
that Lesotho was extremely vulnerable because of lack of 
adequate air connections with the outside world, being totally 
encircled by the Republic of South Africa. The United Nations 
Security Council adopted, amongst its recommendations for urgent 
assistance to Lesotho, this project as one of top priority. 
(Security Council Resolutions 402 (1976) and 535 (1983); 
Resolution adopted by the General Assembly, 104th Plenary 
Meeting of 14 December 1979.)
The finance necessary for the construction of the airport is 
provided by the following Governments and international 
organisations:
Saudi Fund 
Kuwait Fund 
BADEA 
OPEC
Abu Dhabi
Finland
ADB
Lesotho
The financing plan is shown in Annex II.
2. Specific Background
2.1 Transport Sector
Air transportation within Lesotho is an essential component of the 
overall transportation sector and in many cases is the only link with 
the rest of the country, and in particular its capital, for certain 
mountain vi llages.
The unique geographical location of Lesotho dictates that international 
air links with other countries will assume greater significance in 
future, especially in the context of Lesotho's membership of the 
SADCC group.

y
- 3 -
Recommendations concerning the development of both internal and 
external air transportation routes with progressive improvement to 
apprppriate standards of facilities were well defined in the 
"Lesotho Transportation Study" of 1980.
The third five-year development plan sets the following targets:
improve 22 internal airfields
- complete construction and begin operations at the 
National Airport
- strengthen the fleet of Lesotho Airways Corporation and expand 
its operations
add international routes.
Progress in achieving these targets may be summarised as follows:
The Federal German Government, under a bilateral programme, is 
assisting Lesotho to improve domestic airstrips. This programme, to 
be funded from a grant of 14.6 million DM, involves improvements to 
3 regional and certain other local airstrips. The 3 regional 
strips, Semongkong, Qacha's Nek and Mokhotlong, are being extended 
and paved and provided with terminal equipment. The others,
Sehletebe, N'kaus, Lesokong, Seshole and Quthing, will be fenced, 
gravelled and have improvements to drainage carried out. All the 
work is expected to be completed by mid 1985.
The Management and Training of the Lesotho Airways Corp. was financed 
within the IVth EDF Multi-annual Training Programme (Doc. VIII/259/79).
A proportion of the Vth EDF Indicative Programme is allocated to 
improvement of aviation services (11%), of which 2.141 M ECU has 
been approved as a grant (Doc. VIII/07/82),
to finance a 3 year integrated training and technical assistance 
project for Lesotho Airways Corporation. This project provides for 
the financing of the Management of the Airline with a view to 
localisation by 1987 of all aspects of its operations. The major 
re-equipment decisions already taken are relevant to the Development 
Plan targets.
2.2 Development of Air Transportation
In 1970 international passengers totalled no more than 4 000. By 
1978 this figure had grown to 7 900. However, with the 
participation of Lesotho Airways Corporation on the main Maseru- 
Johannesburg route in 1979, the number of international passengers

- 4
using Maseru Airport rose to 12 700, 18 400 in 1980, 28 474 
in 1981 and 23 313 in 1982. The domestic passenger figures 
were for 1981 32 517 and for 1982 33 073.
Corresponding aircraft movements reached in 1981 and 1982:
Domestic International
Year
ScheduledNon
ScheduledAi r
CarrierGeneral 
Avi at ion
1981 5 623 1  865 1 547 1  808
1982 5 818 1 857 1 518 1  254
III. PROJECT DETAILS
1. The construction of the new Maseru International Airport started 
in 1982 at a site about 15 km South-West of Maseru. It is 
situated near the village of Mazenod adjacent to the highway to 
Mafeteng.
The design criteria for the new airport are those for a regional 
airport being able to cater for jet aircraft up to the size of 
types such as Boeing 727 or similar weight categories. These will 
be able to reach destinations in other SADCC countries.
2. As the region surrounding the existing Maseru Airport is very 
mountainous, its performance is severely physically constrained.
After having carried out several studies (see point II.1), the 
Government, after having considered various options, therefore 
decided in 1980 to construct a new international airport at the 
Mazenod site.
The International Civil Aviation Organisation (ICAO) has provided 
continuous technical assistance to the Lesotho Government for 
preparing the project.
3. The project provides for a new runway (3 200 x 45 m), aprons 
(13 560 m2), taxiways (1 350 m in total), internal roads,
car parks, terminal, administration and cargo buildings (6 290 r n  
in total) and hangar - with offices, stores and workshops (2 495 m2)  - 
as well as the equipment necessary for permitting safe aircraft 
operations with B 727 aircraft or similar.

5
The master plan for the project also allows for future 
extensions.
The technical details of the equipment financed by the EOF 
are given in Annex I. This equipment comprises navigational 
aids, meteorological and telecommunications equipment, as well 
as the control tower cab.
4. In order to ensure that properly qualified personnel will be 
available to operate the facilities of the new airport, programmes 
for training, management and technical assistance have been set 
up, e.g. under 4th EDF (753 000 ECU) and under 5th EDF
(2 141 000 ECU) financings.
5. The new Maseru International Airport will be operated under the 
authority of the Department of Civil Aviation under the Ministry 
of Transport and Communications.
6. The total cost of the project is estimated at 60 M ECU.
The financing plan is given in Annex II.
A breakdown of the cost estimate of 3 000 000 ECU for the 
component to be financed by the EDF is given in Annex I.
7. The average annual maintenance cost for the first ten years
of the operation of the EDF funded airport equipment is estimated 
at approximately 1% of the initial investment, i.e. approximately 
30 000 ECU per annum.
8. The present situation of project implementation is as follows:
a. The preliminary works contract involving construction of the 
access road and perimeter security fence was completed at the 
end of 1982, financed by the Lesotho Government.
b. The Civil Engineering and Building contracts were awarded 
in April 1983 to an EEC contractor at a combined value of 
35.7 M US$, equivalent to approximately 43.3 M ECU. These 
contracts are cofinanced by the Arab funds, ADB and Lesotho.
c. Separate tenders will be called for:
Airfield lighting, financed by Finland for an estimated 
amount of 4.5 M ECU
Power supply, etc. financed by the Government of Lesotho for 
an estimated amount of 4.4 M ECU.

-  6 -
- The EDF financed equipment, for which an international 
invitation to tender will be issued in accordance 
with Art. 56.1 of the Lomé I Convention.
The overall completion date set for the new airport is June 1985.
9 . The final design and supervision contract, which is financed by 
the African Development Bank (ADB), was awarded to a Canadian 
consultant in 1981. The estimated cost of the engineering 
services amounts to 4.6 M ECU.
10. It is anticipated that the implementation schedule for the EDF 
financed components will be as follows, from the date of the 
signature of the financing agreement:
Issue of invitation to tender: 
Award of contract:
Completion of works:
Completion of post installation 
calibration services, etc.:1 month 
5 months 
14 months
26 months
11. After completion of the project, the future maintenance will be 
undertaken by the Ministry of Transport and Communications. The 
EDF financing also provides for post installation calibration services and 
the training necessary to familiarise the technicians with the operation 
and maintenance during the first year after the opening of the new 
airport. Furthermore provision is made for such spare parts, which it 
is essential to have readily available in case of breakdown of 
equipment.
IV. EXPECTED RESULTS OF THE PROJECT
The provision of Navigational Aids and Communications Equipment 
will permit the safe operation of aircraft into and out of the new 
airport by day and by night, and offer a greater flexibility of 
operation by the national airline and any other airline which may 
serve Maseru in future.
The meteorological equipment will enable more precise local weather 
conditions to be monitored and forecast, permitting the more certain 
flight planning demanded by operators of high performance aircraft.
The proposed control tower cab is the hub of the airport's flight 
operations, essential to safe and efficient operations.

- 7 -
The other ancillary communications equipment will support the smooth 
running of the groundside operation of the airport.
Following from this is the advantage of the new airport equipment 
in allowing a much more flexible timetabling of international flights 
for better onward connection at major terminals in the region and with 
fewer load restrictions imposed by safety considerations.
The Government is hopeful, as a result, to attract more international 
air freight, both of imported goods and low weight high cost exports. 
Plans to promote air travel tourism in Lesotho are linked to good 
airport facilities in the future.
V. FINANCING PLAN
The bulk of the finance necessary for the construction of the airport 
is from Arab loan funds and the Lesotho Government itself. The 
total financing plan is to be found in Annex II.
VI. SPECIAL CONDITIONS
The Government of Lesotho undertakes:
a. to provide six-monthly reports on serviceability, operation 
and maintenance of the EDF financed equipment
b. to make such financial and budgetary arrangements as to produce 
sufficient funds to cover all operating expenses, including 
maintenance costs, relating to the completed project.
VII. CONCLUSION AND PROPOSAL FOR A DECISION
Having regard to the opinion delivered by the European Development 
Fund Committee in.its meeting with regard to the supporting arguments 
set out above, it is proposed that the Commission take the following 
proposition:
FINANCING DECISION
The Commission has decided:

-  8 -
to approve under the conditions laid down in the proposel 
before it, the project described hereunder:
Registration No. Title of ProjectFinancing 
Authori sed
LE/412/76 Maseru International 
Ai rport3 000 000 ECU 
(Special Loan)
“ to grant commitment authorisation for a total sum of 3 000 000 ECU
“ to make special loan commitment authorisation for the amount 
of 3 000 000 ECU
to instruct the Chief Authorising Officer of the European 
Development Fund to make any arrangements and commitment 
decisions that prove necessary to ensure the smooth execution 
of the approved project under the best economical and 
technical conditions.

ANNEX I
KINGDOM OF LESOTHO
Maseru International Airport
Technical Annex
0Subject A. Supply, installation, testing and calibration of navi­
gational aids, meteorological and telecommunications 
equipment as well as a stock of essential spareparts
B. Control tower cab
1Criteria International Civil Aviation Organisation (ICAO) standards.
2Equipment a) Navigaiional_a 2ds :
.  1  no. I>bppler Very High Frequency ©mnirange (DVOR), 
100 Watts with &istc.nce Measurements Equipment (DME) 
.  2 no. Low-Medium frequency Non Directional Beacons 
(NDB), 62.5 Watts.
.  1 no. Outer Marker Beacon COM)- 75 Watts
.  Navigation Aids Monitoring equipment
b) Meteorological_eguipment_
c) Telecommunications equipment
.  Ultra High Frequency (UHF) communications system
.  Terminal Building Public Address System
.  Mobile Communications equipment 
with central control.for airport vehicles
d)Prefabrjcated control Tower Cab, 
ation.and air conditioning.complete with instrument-
3Estimate 1. Navigational aids : 1  280 000 46.9
2. Meteorological equipment : 110 000 4.0
3. Telecommunications equipment : 765 000 28.0
4. Prefabricated Control Tower Cab : 310 000 11.4
5. Essential spare parts : 145 000 5.3
6. Post installation calibration 
and training services120 000 4.4
2 730 000 100.0
j  Contingencies^price- and 
j  currency fluctuations(+ 10 X) : 270 000
j  TOTAL :  
13 000 000
'

ANNEX II
KINGDOM OF LESOTHO 
NEW MASERU INTERNATIONAL AIRPORT 
FINANCING PLAN
FUNDING LOAN VALUE X MILLION US# XMILLION
SAUDI FUND 15,12S.R. 4 .53
KUWAIT FUND 1  ,20K.D. 4 .29
n.ADEA 6,00US# 6.00
OPEC 3,00 US$ 3.00
ADU DHABI 4,00ED
FINLAND 20,00FM 3.79
ADB 8,00U.A. .  8.91
OPEC 1,90MALOTI 1  .79
EDF2.65
3.69Government of Lesotho n aBALANCE1  U ,
49.84
PROJECT COSTS US#X MILLION US#X MILLION « ECU
1. CIVIL WORKS SAUDI FUND 4, 53
KUWAIT FUND 4, 29
BADEA 6, 00
OPEC 3, 00
ABU DHABI 1  ,  12
BALANCE 6, 68 25. 63 31.0
2. BUILDING WORKS ADB 4, 96
OPEC (2) 1  ,  79
BALANCE 3, 38 10. 13 12.3
3. NAVAIDS,  COMM. _*
ETC. EDF 2, 65 2. 65 3. c
4. AIRFIELD«
LIGHTING ETC. FINLAND 3, 79 3. 79 4.5
5. ENGINEERING
SERVICES ADB 3, 84 3.84 4.6
6 . PV.'C ,  POWER
SUPPLY ETC. GOL 3, 69 3. 65 4.4
«49. 73 60.0
____
Note: Exchange Rate 1 US$ = 1.210 ECU
Not including contingency ano maintenance contract..

ANNEX III
LEGEND «
6 EXISTING AIRSTRIPS
T H 0  T A ~ Ξ Ä -- ivi OLÌ A i R P O R T
LESOTHO