REGIONAL SAFETY OVERSIGHT ORGANIZATIONS (RSOOs) SYMPOSIUM

1. REGIONAL SAFETY OVERSIGHT ORGANIZATIONS (RSOOs)SYMPOSIUM Mtesigwa Omukwaya Maugo Executive Director, EAC CASSOA 26th to 28th October 2011 Establishment of a funding mechanism to ensure the sustainability of an RSOO

2. OUTLINE • About East African Community • About CASSOA • Developing a Business Plan • Establishing Funding Mechanism • Conclusion Project title (Insert, Header & Footer)

3. The East African Community • Established under the Treaty signed on 30th November 1999 and came into force in 7th July 2000 • Membership – Kenya, Uganda, Tanzania, Burundi and Rwanda • The Treaty provides a unique framework for regional co-operation and integration • Integration process includes: EAC Customs Union (Jan 2005 to Jan 2010),Common Market (started July 2010), Monetary Union (Process Started to be completed by 2012), Political Federation • Article 16 of the Treaty puts Community regulations, directives, decisions binding CASSOA Presentation

4. About CASSOA • The Protocol for establishment of the Agency was approved and signed on 18th April 2007. • The Summit of the Heads of State established the Agency on 18th June 2007. • It is established as an autonomous and self-accounting institution of the Community. • Key staff – Executive Director, Technical Coordinator, Office Management Assistant and an Accountant appointed initially CASSOA Presentation

5. About CASSOA - cont • In line with the current mandate, the Agency has two main roles – standardisation and enhancing oversight capability in the region • The Agency is mainly involved in: • harmonising operating Regulations to ensure that they meet the international standards and recommended practices; • developing standardised procedures for licensing, approving, certificating and supervising civil aviation activities; and • providing guidance and assistance to States in meeting their safety and security oversight obligations under the Chicago Convention and its Annexes. • One of the initial primary tasks of the Board and the key staff were to develop the Strategic Plan (business plan)

6. Developing a Business Plan • The most important factors to be considered on-set during establishment is the scope or mandate of the RSOO to be established, as it is from this that the Business Plan may be established; • Factors considered in defining the mandate of the RSOO • political, legal, economical, social and technical factors as well as regional and global developments • the legal framework already in existence or from the development in that regional cooperation • Business Plan (in other organisation is called a Strategic Plan) is important to be developed at a certain stage of the establishment process; • The best is to establish the Plan with involvement of the staff and Board who are going to be responsible in its implementation; • The Business Plan will be the basis that will determine the required resources (both technical and financial) and the organisational structure to implement the mandate and Business Plan Project title (Insert, Header & Footer)

7. Developing a Business Plan - Cont • The Agencies’ 5 years strategic plan and organisation development plan guide on the development/growth of CASSOA. • The Plan identifies strategic objectives (Goals) expected to be achieved, which are: • Rationalize the mandate of CASSOA in line with the dynamics of the Aviation Industry and enhanced economic integration in the region. • Build an effective and sustainable civil aviation oversight system in the region in compliance with the eight critical elements of ICAO. • Minimize aircraft incident/accident within the region. • The Plans clearly identifies method and time line set for achieving the strategic objectives including the required resources – both technical and financial. CASSOA Presentation

8. Establishing Funding Mechanism – Funding Options • Any RSOO Funding is mainly based on the following principles: • Contribution from Member States: at a formula determined on-set – it may be equal or equitable (pro rata) contribution • Fees based on Cost Recovery – mainly dictated by if the mandate of the RSOO includes regulatory activities • A combination of the two (contribution and fees) • Determining a funding mechanism is an important aspect when establishing an RSOO • The established funding mechanism should provide sufficient and sustainable financial resources taking into account the expected evolution of the organisation Project title (Insert, Header & Footer)

9. Establishing Funding Mechanism – CASSOA Model • CASSOA funding is established in the Protocol and includes: • contributions from the Partner States’ through their Civil Aviation Authorities as main source • resources mobilised by the Community • grants, • revenue from the activities of the Agency and • any other sources approved by the Council • The Protocol also provides for the Council to determine the formula for contributions to be made by Partner States to approved budget Project title (Insert, Header & Footer)

10. Establishing Funding Mechanism – Considered Contribution Options • The Agency determined the costs required to implement the Five Year Strategic Plan activities- see budgetary estimates • Then looked at the projected growth of the industry in terms of passenger embarking from the regional airports. • Contribution options considered: • Option 1: equal contributions • Option 2: Contributions by the Partner States based on level of aviation activities • Option 3: a combination of equal and pro rata • Option 4:Agency funding from contribution based on a fee charged to users (passengers) – equitable contributions • Option four was recommended and an average contributory charge of US $0.70 per embarking passenger in the region for the five year period Project title (Insert, Header & Footer)

11. Conclusion • The Symposium is requested to: • take note of the CASSOA experience in establishing a sustainable funding mechanism for a regional oversight organisation; and • call upon ICAO to establish a policy guide on the use of passenger charges to include oversight functions Project title (Insert, Header & Footer)

12. Thank You CASSOA Presentation