BENEFITS FROM ECONOMIES OF SCALE .1 SOURCES OF FINANCING .1

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Chapter 4 FINANCING A REGIONAL SAFETY

OVERSIGHT ORGANIZATION 4.1 BENEFITS FROM ECONOMIES OF SCALE 4.1.1 The key objective of establishing a regional safety oversight system is to enable States to meet their international safety oversight obligations in the most effective and efficient manner. Establishing a regional safety oversight system allows for: a economies of scale to be achieved; b technical personnel, knowledge and technology to be shared; and c administrative savings to be realized without sacrificing effectiveness. 4.1.2 In achieving economies of scale, many factors must be considered, not least of which is the implementation of a regional technical assistance system for Member States in order to: a share objectives, strategies and activities in order to overcome shortcomings in the implementation of safety oversight responsibilities at the national and regional levels; b attract, pool and retain highly skilled technical personnel for the multinational and multifunctional teams of experts that assist Member States in meeting their obligations for licensing, certification, approval and supervision of aviation in their respective States; and c develop and implement joint aviation regulations, standards, safety procedures and common guidance material to be applied at the regional level, benefiting all aviation activities in the region and also enhancing harmonization at the global level. 4.2 SOURCES OF FINANCING 4.2.1 Entering into an agreement to establish an RSOO requires the preparation of an estimate of the level of funding that will be required to maintain and sustain the organization in terms of legal and organizational structure, administrative and office equipment, personnel training, material, equipment upgrades and other costs related to its operation. 4.2.2 Together, Member States should identify the resources required to establish and manage the new organization over the long term. In some cases, the establishment of the organization may require assistance financial andor technical from the Technical Co-operation Bureau TCB of ICAO, donor States, international or regional organizations, financial institutions, manufacturers or other sponsors. In all instances, it is imperative that the amount required for the establishment and maintenance of the organization be estimated and its financing planned for. 4-2 Safety Oversight Manual 4.2.3 It should also be noted that funding partners, regardless of their size, shape or nature, will want to ensure the commitment of Member States, in part through a planned contribution programme, to the establishment and effective maintenance of the RSOO. 4.3 TRUST FUNDS 4.3.1