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Grant Assistance Report

Project Number: 43090 August 2010

Proposed Grant Assistance Regional: Social Protection of the Vulnerable in the Pacific (Cook Islands, Marshall Islands, and Tonga) (Financed by the Japan Fund for Poverty Reduction)

ABBREVIATIONS ADB – Asian Development Bank CSO – civil society organization GDP – gross domestic product JFPR – Japan Fund for Poverty Reduction MRD – Ministry of Resources and Development (Marshall Islands) NGO – nongovernment organization PDMC – Pacific developing member country PMU – project management unit

NOTE

In this report, “$” refers to US dollars unless otherwise stated.

Vice-President C. Lawrence Greenwood, Jr., Operations 2 Director General R. Wihtol, Pacific Department (PARD) Director S. Ra, Pacific Strategy and Special Operations, PARD Co–Team leaders S. Lee, Senior Social Development Specialist, PARD

S. Tanaka, Social Development Specialist, PARD Team members C. Burkley, Social Development Specialist, RSDD

K. Nakamitsu, Education Specialist, PARD G. Song, Governance Specialist, PARD A. Woodruff, Young Professional (Economist), PARD

In preparing any country program or strategy, financing any project, or making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

JAPAN FUND FOR POVERTY REDUCTION (JFPR)

JFPR GRANT PROPOSAL I. Basic Data Name of Proposed Activity Social Protection of the Vulnerable in the Pacific

Countries Cook Islands, Marshall Islands, and Tonga

Grant Amount Requested $3,000,000

Project Duration 2.5 years

Regional Grant Yes / No

Grant Type Project / Capacity building

II. Grant Development Objective(s) and Expected Key Performance Indicators Grant Development Objectives The project, focusing on the Cook Islands, the Marshall Islands, and Tonga, will (i) provide socioeconomic support to the vulnerable population to alleviate the impact of recent economic crises and weakening informal safety netsa; (ii) assist the governments in building capacity to develop and implement effective safety net programs; and (iii) help the project countries share good practices through regional conferences. The design and monitoring framework for each country is in Appendix 1. Expected Key Performance Indicators (i) Poverty incidence and living conditions among the vulnerable in the project areas are improved by

2013 compared with the 2010 baseline. (ii) Pilot cash-for-work programs and semiformal safety net models are implemented using output-based

grant mechanisms. (iii) Information on the characteristics and geographic locations of vulnerable groups is collected and

analyzed to ensure effective targeting of social assistance. (iv) Government capacity is enhanced for monitoring the vulnerable and developing effective social

protection policies. (v) A Pacific social safety net conference is organized in 2013 to share the experiences of the

participating countries and to promote policy dialogue on social protection systems.

a Vulnerability is the inability of individuals or groups to maintain the minimum standard of welfare because of age, health, or the adverse impact of social, economic, and environmental shocks.

III. Grant Categories of Expenditure, Amounts, and Percentage of Expenditures

Category Amount of Grant Allocated

($) Percentage of Expenditures

Small Civil Works 357,000 11.9

Equipment 132,000 4.4

Local Training, Workshop, and Conference 445,000 14.8

Consulting Services 576,000 19.2

Grant Management 473,500 15.8

Other Input 780,000 26.0

Contingency 236,500 7.9

Total 3,000,000 100.0

Incremental Cost 150,000

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JAPAN FUND FOR POVERTY REDUCTION

JFPR Grant Proposal Background Information

A. Other Data Date of Submission of Application

29 April 2010

Project Officer Sunhwa Lee, Senior Social Development Specialist Sakiko Tanaka, Social Development Specialist

Project Officer’s Division, E-mail, Phone

Pacific Operations Division, [email protected], 632-5750

Other Staff Who Will Need Access to Edit or Review the Report

Gi Soon Song, Allison Woodruff, Kiyoshi Nakamitsu, Clifford Burkley, Cecille Estoque, Leah Castro

Sector Health and social protection Subsector Social protection Theme Social development Subthemes Human development, other vulnerable groups Targeting Classification TI-H Was JFPR seed money used to prepare this grant proposal?

Yes [ ] No [ X ]

Are staff review committee comments reflected in the proposal?

Yes [ X ] No [ ]

Name of Associated ADB-Financed Operations

Marshall Islands: Public Sector Program loan Cook Islands and Tonga: Economic Recovery Support Program loans and grants

Executing Agencies Cook Islands: Ministry of Finance and Economic Management Marshall Islands: Ministry of Finance Tonga: Ministry of Finance and National Planning

Grant Implementing Agencies Cook Islands: Ministry of Internal Affairs Marshall Islands: Ministry of Resources and Development Tonga: Ministry of Finance and National Planning

ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction

B. Details of the Proposed Grant 1. Description of Components, Monitorable Deliverables and Outcomes, and

Implementation Timetable Component A Component Name Direct support to the vulnerable for socioeconomic inclusion Cost ($) $1,746,884 Component Description The component will support the vulnerable who have been affected

by recent economic downturns and by weakening support from informal safety nets. Pilot social protection interventions—care services, employment opportunities, skills training, income support, and other social services—will be implemented depending on the specific needs of each country. Opportunities will be provided for cash-for-work or skills development programs that can be applied in employment and income-generating activities following the project. Using output-based grants, the component will build on informal

mailto:[email protected]

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support systems in local communities, such as those delivered by nongovernment organizations (NGOs), civil society organizations (CSOs), and churches. Taking a participatory approach, the component will engage national and local governments and communities in identifying the most vulnerable areas and populations, and in designing appropriate interventions. It will strengthen links between governments and local communities in designing and monitoring service delivery.

For the purposes of the project, the vulnerable population includes disadvantaged women, children, unemployed youth, low-income households, people with disabilities, and the elderly.

Summary of component A activities: Cook Islands: Home care and nursing services for the elderly and the disabled provided by NGOs and CSOs using output-based grants

Marshall Islands: Cash-for-work coconut tree replanting project to stimulate employment, promote food security, and mitigate climate change

Tonga: Microcredit for disadvantaged women; social services for vulnerable groups provided by NGOs or CSOs using output-based grants

Monitorable Deliverables and Output

Community-based direct support or semiformal safety netmodels of services are provided for vulnerable groups in 3–15 vulnerable communities in each country

Income-earning opportunities and living conditions are improved for at least 700 people (at least 50% women) receiving direct support or social assistance

Implementation of Major Activities: Number of months for grant activities

24 months

Component B Component Name Capacity building for social safety net policy development Cost ($) $683,116 Component Description This component will assist the governments of the Cook Islands, the

Marshall Islands, and Tonga in building capacity to develop social protection policies. It will center particularly on government capacity to understand the nature and causes of vulnerability and to develop appropriate interventions. As part of associated Asian Development Bank (ADB) program loans or grants, the governments have committed to complete vulnerability assessments. The governments will be supported in engaging the public in communicating vulnerability issues and in building demand-driven and consensus-based interventions to improve welfare. Training in the design and monitoring of semiformal safety net models will also be provided.

Summary of component B activities: Cook Islands: Social welfare reform plan; public campaign and consultations for consensus-based reform

Marshall Islands: Vulnerability assessments; capacity building of the government to monitor vulnerability and design social protection interventions

Tonga: Public campaign and participation in improving social protection; capacity building of the government to monitor and

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design social protection interventions Monitorable Deliverables and Output

Information on characteristics and geographic locations of vulnerable groups is analyzed and effective targeting of social assistance developed

Public communication and consultations are conducted to build consensus on effective social protection policies

Key government officials are trained to design and monitor social protection models including semiformal safety net models


24 months

Component C Component Name Regional conference, knowledge sharing, and policy dialogue Cost ($) $570,000 Component Description The component will provide the three governments and other

stakeholders in the region with opportunities to share experiences, good practices, and policy options in building and strengthening social protection programs for vulnerable populations. Two regional events will be organized. The inception workshop will involve project planning and technical assistance for implementing semiformal safety net models. At the conclusion of the project, the three project countries, other stakeholders in the region, and development partners will participate in a Pacific safety net conference to discuss experiences and lessons from the project’s semiformal safety net models and cash-for-work programs. The international technical adviser(s) on social protection will facilitate policy dialogue during the project and provide technical assistance to each country in designing and monitoring semiformal safety net models and other social protection programs.a Knowledge products based on each country’s vulnerability assessments and regional dialogue on approaches to social protection will be published.

Monitorable Deliverables and Output

One regional inception workshop and one Pacific conference are conducted.

Regional reports on vulnerability assessments and pilot implementation of semiformal safety net models are published.

Regional technical assistance is provided for the pilot implementation of social protection models and for policy dialogue among the Pacific island countries.


24 months

a Funding for the services of the regional technical adviser(s) will be provided under ADB incremental costs amounting to $150,000.

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2. Financing Plan for Proposed Grant To Be Supported by JFPR

Funding Source Amount

JFPR $3,000,000: Cook Islands $900,000, Marshall Islands $1,200,000, Tonga $900,000

Government $300,000 (in-kind contribution)

Other Sources (Communities) $75,000 (in-kind contribution)

ADB Incremental costs $150,000 (for regional technical assistance)

Total $3,525,000 ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction.

3. Background

1. The recent global economic crisis highlights the importance of effective social policies to mitigate the impact of the economic downturn on vulnerable households. Specific impacts include decreasing remittances, reduced tourism earnings, declines in private investment, and decreasing value of commodity exports. The governments of the Cook Islands, the Marshall Islands, and Tonga are facing revenue shortfalls as a result of the deterioration in global economic conditions. This poses a threat to the continued delivery of essential social services such as health care and education, and an increased risk of poverty for vulnerable population groups. In addition, Pacific island countries are highly vulnerable to natural disasters as highlighted by the recent earthquake and tsunami events in Samoa and Tonga. The costs of natural disasters could increase as extreme climate events associated with climate change become more frequent and intense. 2. During crises, households in the Pacific island countries have traditionally relied on support from extended family networks and strong community ties, which function as informal safety nets. Yet, with the growth of the cash economy, increasing rural–urban migration, and population growth, traditional informal safety net mechanisms have been weakening. As people move away from their communities to urban areas in search of better opportunities, community ties weaken. Also, as more people rely on wage income, they are at greater risk of losing their main source of livelihood during economic downturns, as many have done in the recent global economic crisis. More and more people are having difficulty meeting their basic needs. Traditional informal safety nets may help some family members during occasional periods of hardship but are less suited to widespread hardship or successive shocks, such as the recent economic crisis and natural disasters. As a result of the recent economic crisis, an estimated additional 50,000 people are expected to be living in poverty by the end of 2010.1 3. Increasing hardship among vulnerable groups and the declining effectiveness of informal safety nets are placing increasing pressure on Pacific island governments to introduce formal social protection systems. Such systems, however, are still very limited in the region. According to the social protection index (SPI) developed by ADB to measure countries’ social protection coverage and expenditures, Pacific island countries fare poorly compared with Asian countries in overall coverage. Less than one-third of target groups in Nauru and just above 10% of target groups in Tonga and Vanuatu have some form of formal social protection.

1 ADB. 2010. Pacific Economic Monitor. February. Manila.

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4. Moreover, governments in the region have limited capacity to design, implement, and monitor social protection systems. Because national statistics are not regularly collected and measures of poverty are often weak, assessing the nature of vulnerability, identifying and monitoring vulnerable groups, or designing targeted assistance for various vulnerable populations is difficult. As a result, social protection systems in the region (e.g., the system in the Fiji Islands) are generally poorly targeted and do not meet basic needs. Some countries (e.g., the Cook Islands) provide universal benefits for those over the age of 60 and for children up to the age of 12, but the system imposes a heavy financial burden on the government. 5. Studies in the region identify vulnerable groups as including women, especially heads of households; unemployed youth; children; the elderly; people living with disabilities; residents of rural areas or remote islands; and the growing number of low-income urban workers. In many Pacific island countries, these groups are more likely to be living below the poverty line and to have poor access to quality basic social services. The vulnerability situation in each of the three countries covered by the project is described in Appendix 2.

4. Innovation and Knowledge Sharing

6. The grant from the Japan Fund for Poverty Reduction (JFPR) will support cash-for-work programs and semiformal social safety net pilot models, which will provide the basis for country-led social protection policy development and implementation in the Cook Islands, the Marshall Islands, and Tonga. Given the limited capacity of the governments to reach dispersed populations in the outer islands, pilot models will build on informal community mechanisms to provide targeted social services to vulnerable groups, with strengthened linkages between governments and community groups or NGOs. Output (or performance)-based grants will be tested, along with enhanced government monitoring capacity, to assure effective and sustainable delivery of assistance. Once a proper social protection system is established in a country, its government will allocate an adequate budget to sustain the efforts under the project. 7. Communities and NGOs across the region are often involved in the delivery of basic social services, especially to vulnerable groups. Many governments have formed partnerships with churches and other community organizations, particularly in health and education, where public resources in the form of operating grants and staff salaries are channeled to non-government schools and health facilities. In Samoa, for instance, a network of women’s committees co-manages publicly funded rural health services. Community-led delivery of basic social services, founded on strong traditional community support networks, assists governments in overcoming capacity and financial resource constraints in reaching the needs of the broad population. The project will bring community-led informal service delivery mechanisms to the fore in developing government-supported semiformal social protection programs. 8. The project will introduce semiformal social safety net models where governments provide grants to community groups or NGOs for the provision of specific assistance to vulnerable households. Part of these grants will be provided through output (or performance)-based contracts in which the provision of specifically targeted services becomes the main condition for succeeding contracts between the government and community groups or NGOs. In this way, governments will ensure the delivery of services to vulnerable groups and households. These contracts will also create employment opportunities for people in the outer islands who provide basic services in the communities. The three country governments intend to support community-led service delivery after the JFPR project.

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9. While this community-based approach relies on local groups to deliver social services, it requires a strong government role in the overall administration of programs—by providing grants through contracts and monitoring their implementation to ensure that those who need assistance do, in fact, receive it. The project will, therefore, emphasize capacity development for governments and community groups in administering grants and delivering services. In addition, monitoring mechanisms will be established between the central and local governments to ensure the delivery of assistance to targeted vulnerable groups in communities. 10. Given the lack of accurate information on vulnerability in the three countries, vulnerability assessments undertaken as part of the project or under the accompanying ADB economic support and public sector programs (see section C.2) will provide a guide to understanding the nature and extent of vulnerability, and to identifying vulnerable groups. These assessments will provide an overview of challenges faced by various vulnerable populations, including unemployed youth and urban workers in the formal and informal sectors. Participatory processes will also be undertaken to assess how best to address the needs of these vulnerable groups and to integrate public inputs into development of more effective social protection programs. 11. Based on pilot semiformal safety models, the project will provide regional opportunities for the three governments involved in the project and other Pacific stakeholders to share their experiences, good practices, and policy options in building and strengthening social protection programs for vulnerable populations. Two regional events will be organized during the project. An inception workshop will involve project planning and technical assistance for piloting semiformal safety net models. Close to project completion, a Pacific safety net conference will be held for the three project countries, other Pacific stakeholders, and development partners to discuss experiences and lessons from the project’s pilot safety net models and livelihood programs. The international regional technical adviser on social protection will provide specific assistance for the three governments on designing and monitoring pilot models, and facilitate regional policy dialogue during project implementation. The project will publish regional knowledge products based on the vulnerability assessments to discuss common causes of vulnerability in the Pacific and to share common approaches to social protection.

5. Sustainability

12. The project complements ADB’s economic recovery support and public sector programs for the three countries (see section C.2). The programs provide support for the vulnerable through targeted policy actions, including (i) ensuring appropriate or increased budget allocation for basic health and education; (ii) implementing targeted social protection programs for vulnerable groups such as the elderly and the disabled; and (iii) providing microfinance products and services. These actions aim to increase the share of the budget allocated to services relied on by the most vulnerable, and thus will help maintain social protection programs and measures as a priority in the medium term. Then, the national budget will provide the resources to sustain, replicate, and expand the models and lessons from the project. 13. Given government financial resource and capacity constraints, leveraging and strengthening the existing informal system is an important way to build a more cost-effective and sustainable system. The project will assess the effectiveness of the piloted output-based grants in channeling public resources to community groups or NGOs to deliver social assistance. To ensure sustainability, the project will build government capacity to develop and implement policies relating to social protection. The project will facilitate use of a participatory

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process to develop the interface between public resources and informal systems. Once the interface mechanism is established, key factors can easily be adopted by national programs even after the project is completed. 14. To ensure governments adopt the pilot models as part of national social safety net programs, the project will support government reviews of existing safety nets, relevant policy and regulations, and capacity of partners. Based on the review and assessment, as well as lessons from the pilot models, it will assist governments to develop models for social protection programs and to devise institutional arrangements and mechanisms for monitoring and channeling resources in an accountable and transparent manner. This will help institutionalize the experience and lessons from pilot models. A Pacific social safety net conference will be organized at the end of the project to (i) discuss goals and challenges of social safety net systems in Pacific countries; (ii) share best practices and effective models of each country; and (iii) develop action plans in each participating country, if necessary. Development partners and representatives of other Pacific countries will be invited to share their experiences in building social protection systems.

6. Participatory Approach

15. The project will follow a participatory approach from the design stage to implementation, evaluation, and replication. In each country, the overall design of the project activities will be developed by engaging national and local governments, NGOs, academics, faith-based groups, traditional community leaders, ethnic minorities, and other organizations representing vulnerable groups. 16. Detailed design of activities will include targeting, implementation modalities, monitoring indicators and process, dispute resolution, evaluation, and policy recommendations. The vulnerability assessment will identify potential beneficiary groups, and NGO partners will facilitate participatory design and planning processes for specific activities. To increase their ownership of pilot activities, key government agencies will be required to engage in the participatory process. This will also ensure the ensuing policy recommendations are incorporated into government plans and budget.

Primary Beneficiaries and Other Affected Groups

Other Key Stakeholders Primary beneficiaries: communities and

vulnerable populations (women, youth, the elderly, people with disabilities, outer islanders) in the selected pilot areas

National and local NGOs, CSOs Government agencies responsible for social

protection or planning

Ministries of finance, planning, education, health, internal affairs, women and youth

Development partners International NGOs Church organizations

CSO = civil society organization, NGO = nongovernment organization.

7. Coordination

17. During the fact-finding missions, extensive consultation meetings were held with various government departments, provincial government officers, and development partners: Government of Japan, Japan International Cooperation Agency, Australian Agency for International Development, New Zealand Agency for International Development, European

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Union, the World Bank, United Nations agencies, NGOs, and CSOs. Participating countries agreed that activities carried out under the project would coordinate closely with other development partner-funded projects. In the Cook Islands, project activities are to be closely coordinated with activities funded by the New Zealand Agency for International Development to support civil society and the Ministry of Internal Affairs. In the Marshall Islands, project activities will be coordinated with the United States government. 18. During the process of designing the project components and assessing institutional arrangements, key government stakeholders from the executing and implementing agencies in each country, other relevant government agencies, key international and local NGOs, church organizations, and international development partners were consulted to support the efficient management and sustainability of semiformal safety model development. International and local NGOs working in local communities were consulted on the design of the skills development and community awareness component that serves the needs of rural communities. 19. The mission discussed the possibility of using JFPR funding for the project (funded by the Government of Japan) with the embassies of Japan in the Marshall Islands, New Zealand (for the Cook Islands), and Tonga. The ADB mission briefed embassy officials on the economic recovery support program in each country, along with the proposed regional project concept on social protection, its specific components for each country, and the proposed method of strengthening existing informal safety nets. Advice on the project components was also sought. Japanese Embassy officials appreciated the proposal and support the project concept and activities in each country. In Tonga, officials noted the importance of the vulnerability study component to understand the situation and identify appropriate support mechanisms for the vulnerable before finalizing the details of pilot social protection.

8. Detailed Cost Table

20. The total cost of the project is estimated at $3,525,000 equivalent. The proposal calls for JFPR funding of $900,000 for the Cook Islands, $1,200,000 for the Marshall Islands, and $900,000 for Tonga. The governments have agreed to contribute about 10% of the total grant budget for each country as in-kind contribution to cover the cost of office accommodation, transport, and remuneration for counterpart staff. The government contribution will amount to $300,000 equivalent. Communities will provide in-kind contributions of $75,000 over 30 months.2 ADB will allocate up to $150,000 for incremental costs to support regional technical assistance. Appendixes 3 and 4 provide summary and detailed cost estimates for each country, and Appendix 5 shows the fund flow arrangements.

C. Link to ADB Strategy and ADB-Financed Operations

1. Link to ADB Strategy

21. The project was discussed in detail with the governments of the Cook Islands, the Marshall Islands, and Tonga. It is in line with ADB country partnership strategies and country operation business plans for the countries, which emphasize poverty reduction through

2 In-kind contributions by communities will include their participation in project activities and assessments, and the

provision of meeting space in the communities.

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improved delivery of social services. The project also supports core priorities laid out in the ADB long-term strategic framework, Strategy 2020.3 Document

Document Number

Date of Last Discussion

Objective(s)

Cook Islands Country Partnership Strategy 2008–2012

Sec. M39-08 June 2008

ADB strategy for the Cook Islands is aligned with the National Sustainable Development Plan, by focusing on environmentally sustainable economic development and contributing to four of the eight goals: (i) an innovative and well-managed private sector-led economy; (ii) sustainable use and management of natural resources and the environment; (iii) strengthened and affordable basic infrastructure, transport, and utilities to support national development; and (iv) a safe, secure, and resilient community. The country partnership strategy outcomes are improved economic and social infrastructure and public sector service delivery.

Marshall Islands Country Operations Business Plan 2009–2011

IN. 361-08 November 2008

The country operations business plan 2009–2011 prioritizes technical assistance and policy advice to (i) increase public sector productivity with emphasis on basic social services and poverty reduction; (ii) adapt to global climate change; and (iii) enhance the environment for private sector investment, job creation, and growth.

Tonga Country Partnership Strategy 2007–2012

Sec. M79-07 October 2007 ADB strategy for Tonga is aligned with and supports the implementation of the Strategic Development Plan 8, by focusing on poverty reduction with three intervention pillars: (i) providing infrastructure for the poor through urban development; (ii) financing pro-poor policies through effective and prudent macroeconomic and fiscal management; and (iii) developing the private sector. Country partnership strategy outcomes are improved social services delivery in urban areas and improved fiscal governance.

2. Link to Specific ADB-Financed Operation

Project Name Cook Islands: Economic Recovery Support Program

Project Number 42503

Date of Board Approval 13 October 2009

Loan Amount ($ million) $10.0

Project Name Marshall Islands: Public Sector Program


Date of Board Approval 17 August 2010

3 ADB. 2008. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank. Manila.

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Loan Amount ($ million) $14.5

Project Name Kingdom of Tonga: Economic Support Program


Date of Board Approval 3 December 2009

Grant Amount ($ million) $10.0

3. Development Objective of the Associated ADB-Financed Operation

22. The associated ADB-financed program loans and grants to the Cook Islands, the Marshall Islands, and Tonga will provide budget support to enable the governments to stimulate the economy and thereby respond to economic downturns caused by the global economic crisis. ADB will also support the Marshall Islands to undertake public sector reforms to improve fiscal management. Grant and loan financing will allow increased capital expenditure to promote long-term economic growth through productive investments in key infrastructure, and in the short term stimulate aggregate demand to promote economic recovery. In addition, budget support will ensure the continued delivery of priority social services such as health and education, which the most vulnerable rely on. The associated ADB-financed operation will support the transition to a higher, more inclusive path of sustainable economic growth. The outcome of the program is initiation of recovery with protection of the vulnerable. 23. One key aim of the program loans and grants is to support the vulnerable through target actions including increased or maintained spending on high-priority services, and to develop a paper on issues affecting the vulnerable population particularly their current situation and current social service responses. 24. The project will support the associated ADB program loan and grant activities by assisting the governments to identify vulnerable groups and develop service mechanisms that meet their priority needs, and to develop reform options for social welfare benefits that can support the most vulnerable in a more efficient and effective manner. The project will provide additional support to the most vulnerable groups through employment activities associated with the economic stimulus, and through the continued delivery of essential social services associated with the program loans and grants.

4. Main Components of the Associated ADB-Financed Operation

Component Name Brief Description Short-term support for economic activity from the budget

1.1 Recurrent budget targets preservation of high-priority services (basic education, health, and transport services)

1.2 Budget support allows increased spending on infrastructure and public building investment identified as priorities under national infrastructure plans

Structural governance improvements

Selected measures to improve governance in countries including adoption of an infrastructure master plan to improve overall efficiency of infrastructure investments, deregulation of telecommunications, and adoption of restructuring plan for national airlines

Support for the vulnerable through

3.1. Preservation or increase in recurrent (nonpayroll) budget allocation for high-priority activities (basic education, health, and transport

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Component Name Brief Description targeted actions services)

3.2. Papers that identify vulnerable groups and basic social services to meet the priority needs of the vulnerable; review existing social welfare benefits; and identify savings that can be redirected to the most vulnerable

Maintenance of fiscal responsibility and improved fiscal management

Selected measures in each country to ensure the maintenance or improvement of fiscal management, e.g., introduction of debt management measures, adoption of a medium-term budget framework, or restrained payroll charges in budget below a certain ratio to gross domestic product

Communication and ownership of economic and fiscal management

Cabinet endorsement of a communication and engagement strategy prepared with the effective engagement of key stakeholders, including the government’s programmatic response to the global economic crisis, and government actions to address the needs of the most vulnerable

5. Rationale for Grant Funding versus ADB Lending

25. All the countries in the project place the provision of essential social services such as education and health as a priority area in their national development plans. The associated program loans and grants will support the governments to maintain or increase spending for social services to protect the vulnerable. Yet, given the limited capacity of governments in reaching the most vulnerable, the project will provide resources needed to implement targeted support for the vulnerable by establishing direct linkages to existing informal safety nets in the communities. 26. The nature and extent of vulnerable populations in the Pacific is not well understood, and governments have generally played little role in protecting the vulnerable through social safety nets. Because of traditionally strong informal support systems based on the family and the community, there is also little recognition of the importance of allocating public resources to social protection programs. Governments do not regard these programs as priority areas for lending. Through the JFPR grant activities, governments will gain a better understanding of the welfare situation of vulnerable groups and the importance of building effective social protection programs by strengthening linkages to informal social safety nets. The JFPR grant will help develop semiformal safety net models, which governments can sustain and later expand with public resources. Once governments develop proven safety net models and gain experience in implementing them, lending could be considered.

D. Implementation of the Proposed Grant

1. Names of the Implementing Agencies

Cook Islands: Ministry of Internal Affairs Marshall Islands: Ministry of Resources and Management Tonga: Ministry of Finance (the executing agency), supported by the project management unit

27. All procurement under the project will conform to ADB’s Procurement Guidelines (2010, as amended from time to time). The project management units (PMUs) under the executing agency in Tonga and the implementing agencies in the Marshall Islands and the Cook Islands will contract local NGOs and consultants according to ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). The mode of consultant recruitment will be a

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combination of firms and individuals, and the method of firm selection will be quality- and cost-based selection with a quality–cost ratio of 80:20. Appendix 6 provides the implementation arrangements. 2. Risks Affecting Grant Implementation

Type of Risk Brief Description Risk Mitigation Measures

Governance and public perception

Potential issues of corruption or perception of corruption that may undermine the effectiveness of the project:

(i) unclear decision making process and accountability structure

(ii) nepotism in beneficiary selection

The activity design will incorporate the principles of transparency, participation, and accountability principles.

The roles and responsibility of each party involved will be clearly defined and communicated to all stakeholders.

The selection criteria for beneficiaries will be clearly defined and announced in advance; any changes will be publicly communicated.

A complaint resolution mechanism will be developed and publicly communicated. Complaints will be adequately followed up.

NGOs and local media will be engaged to monitor activities.

Financial management

Weak capacity for financial management and reporting

Groups responsible for managing financial resources will be trained in basic accounting and financial reporting as necessary.

The PMUs will be staffed with international or national consultants, including an international or national team leader, to help the executing and implementing agencies manage the project and establish operating procedures for the project, including financial management. The PMU consultants should be recruited before actual project implementation to set up a financial system on time.

Availability and quality of social services

Unavailable or poor-quality social services

Supply-side issues will be addressed through a program grant to support the government budget. Other sources of support will also be explored and considered.

Slow economic recovery

Trained workforce may not find suitable jobs for newly gained skills

The project will strengthen community-based social safety nets to protect against longer-term economic shocks.

NGO = nongovernment organization, PMU = project management unit.

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3. Incremental ADB Costs

Component Incremental ADB Cost

Amount requested $150,000

Justification Technical assistance for regional coordination will be provided to ensure quality assistance and outcomes, and to promote the sharing of knowledge and best practices within the region

Type of work to be rendered by ADB

Regional coordination and technical assistance to individual countries and management of regional components

ADB = Asian Development Bank.

4. Monitoring and Evaluation

Key Performance Indicator Reporting Mechanism Plan and Timetable for Monitoring

and Evaluation

Income level of the vulnerable in the project areas improved by 2016, compared with the value from latest national household survey

National household income and expenditure survey Poverty survey

Quarterly report from the PMU Project socioeconomic monitoring data Semiannual participatory evaluation by district and community

Pilot semiformal safety net models implemented using output-based grants

Progress reports from each implementing agencya through the PMU


Information on the characteristics and geographic locations of vulnerable groups used for effective targeting of social assistance



Government capacity enhanced in monitoring the vulnerable and developing effective social protection policies


Quarterly report from the PMU Project socioeconomic monitoring data Semiannual participatory evaluation by district administrations

Regional conferences organized and regional knowledge products produced


Quarterly report from the PMU Reports from international technical adviser

PMU = project management unit. a Also the executing agency in the case of Tonga.

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5. Estimated Disbursement Schedule

Fiscal Year (FY) Amount ($)

FY2010 800,000

FY2011 1,200,000

FY2012 1,000,000

Total Disbursement 3,000,000

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Appendixes

1. Design and Monitoring Frameworks 2. Project Description and Components 3. Summary Cost Estimates 4. Detailed Cost Estimates 5. Fund Flow Arrangements 6. Implementation Arrangements 7. Procurement Plans 8. Summary Poverty Reduction and Social Strategy and Gender Action Plan

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DESIGN AND MONITORING FRAMEWORKS

Table A1.1: Design and Monitoring Framework for the Cook Islands

Design Summary Performance Targets and/or

Indicators Data Sources and/or

Reporting Mechanisms Assumptions

and Risks Impact The welfare of vulnerable groups is safeguarded

By 2016: Income of the vulnerable in representative project areas increased by at least 5% compared with the latest national household income data Number of beneficiaries of community social services increased by at least 10% in representative project areas compared with the 2010 vulnerability assessment

Household income and expenditure surveys or census Millennium Development Goal indicator review and assessment Vulnerability assessment in 2010

Assumptions The government, local authorities, international NGOs, and communities continue to support the project. Executing agencies and local governments provide adequate human resources, equipment, and materials.

Risks The political situation is unstable and security deteriorates. Natural disasters occur, climate change has impacts.

Outcome Government and NGOs have improved capacity to provide targeted social protection services to the vulnerable

By 2013: Number of social protection programs by the government and NGOs increased by at least 20% against the 2010 baseline Number of government and NGO social services staff (at least 50% women) increased by 20% against the 2010 baseline

Monthly reports from welfare officials under the Ministry of Internal Affairs Project socioeconomic monitoring data

Assumptions NGOs and CSOs are available to work on the project. Local authorities and communities provide support.

Risks Implementation of the improved social safety net programs is met with political interference.

Appendix 1 17

Outputs Home care or nursing services provided for the vulnerable by the government and NGOs Social safety net policies are developed and communicated to the public by the government Efficient and effective project management services provided by the PMU Policy makers and practitioners have shared their experiences on semiformal social protection models

By 2013: Output-based home care or nursing services designed and monitored by Ministry of Internal Affairs staff At least three NGOs and/or CSOs delivered new home care and/or nursing services based on output-based grants At least 100 elderly and disabled people received new home care or nursing services by NGOs or CSOs At least five public consultation and community forums organized to discuss welfare reforms At least two options for social welfare reform developed by the government All project progress and monitoring reports submitted as outlined by the project Two regional conferences organized with at least two government representatives from each participating country At least one regional report based on vulnerability assessments published; at least one regional policy dialogue report prepared

Monthly reports from welfare officials under the Ministry of Internal Affairs Reports from NGO and CSO service providers Project socioeconomic monitoring data

Assumptions The implementing agency has the management and implementation capacity to work with NGOs and communities. Adequate government funds are available to support semiformal social safety net initiatives. The government continues to support institutional and policy reforms.

Risks NGOs and civil society groups are not available or willing to work in selected areas.

Activities with Milestones

Output A: Direct support to the vulnerable for socioeconomic inclusion 1.1 Identify three communities with a high proportion of the elderly and the disabled

in need of home care or nursing services by Q1 2011. 1.2 Recruit local NGOs and CSOs to provide services for the elderly and the

disabled, and establish appropriate output-based grant mechanisms by Q2 2011.

1.3 Provide training to national and local officials on performance monitoring of service provision based on output-based grants by Q4 2011.

1.3 Begin piloting service delivery to the vulnerable through NGOs and CSOs by

Q1 2012. 1.4 Conduct a monitoring and evaluation survey every 6 months after starting

service provision. 1.5 Review sustainability of these services as part of government-supported social

protection system at Q1 2013.

Inputs JFPR: $0.9 million Government: in-kind contribution $90,000 Communities: in-kind contribution $22,500 ADB incremental costs: $45,000

18 Appendix 1

Output B: Capacity building for social safety policy development 2.1 Review reports on analyses of targeting and benefits of the current welfare

system, and develop options for welfare reform through consultations with stakeholders by Q1 2011.

2.2 Build public communication strategies and begin the promotion of welfare reform through the media and other communication channels by Q2 2011.

2.3 Organize community forums to get public inputs on the development and implementation of welfare reforms starting by Q3 2011.

2.4 Build social consensus on the need for welfare reform and its options by Q4 2012.

Output C: Regional conference, knowledge sharing, and policy dialogue 3.1 Recruit social protection expert(s) as regional technical adviser(s) in Q4 2010. 3.2 Organize regional inception workshop for project planning by Q2 2011. 3.3 Share vulnerability assessments and experiences of pilot models for regional

dialogue and regional reports starting Q2 2011. 3.4 Organize a Pacific conference to discuss the country experience and promote

policy dialogue on social protection system development in 2013.

CSO = civil society organization, FY = fiscal year, JFPR = Japan Fund for Poverty Reduction, NGO = nongovernmental organization, Q = quarter. Note: The target figures should be updated with the results of most recent demographic and health surveys, household income and expenditure surveys, or census before the project starts. The activities will be reviewed yearly based on the results of community consultations. Source: Asian Development Bank.

Appendix 1 19

Table A1.2: Design and Monitoring Framework for the Marshall Islands Design Summary

Performance Targets and/or

Indicators

Data Sources and/or Reporting

Mechanisms

Assumptions


By 2016: Income of the vulnerable in representative project areas increased by at least 5% compared with the latest national household income data Number of beneficiaries receiving community social services increased by at least 10% in representative project areas compared with the 2010 vulnerability assessment

Household income and expenditure surveys or census Poverty survey Millennium Development Goal indicator review and assessment

Assumptions The government, local authorities, international NGOs, and communities continue to support the project. The executing agency and local governments provide adequate human resources, equipment, and materials. Risks The political situation is unstable and security deteriorates. Natural disasters occur, climate change has impacts.

Outcomes Government support has improved food and income security of the vulnerable

By 2013: Percentage of vulnerable people employed in project communities increased by at least 20% against the 2010 baseline

Semiannual participatory evaluation conducted by districts and communities Project socioeconomic monitoring data

Assumptions Local authorities and communities support the project. Risks The project scope is changed and targets lose relevance.

Outputs Direct support provided to the vulnerable for coconut tree planting Government capacity to identify the vulnerable population enhanced Efficient and effective project management

By 2013: High-yielding coconut trees planted in 10 communities At least 200 workers (at least 30% women) employed for coconut tree planting New poverty data collected and updated by government At least one poverty report and one in-depth vulnerability assessment report produced by the government All project progress and monitoring reports submitted as outlined by the project

Monthly reports from MRD and steering committee on project activities Project socioeconomic monitoring data Final reports from the poverty survey

Assumptions MRD and communities are able to implement program activities on time and within budget. Risks The project lacks support and ownership. Capacity to implement activities is limited.

20 Appendix 1

services provided by the PMU Policy makers and practitioners have shared their experiences on semiformal social protection models

Two regional conferences organized with at least two government representatives from each participating country At least one regional report based on vulnerability assessments; at least one regional policy dialogue report prepared


Output A: Direct support to the vulnerable for socioeconomic inclusion 1.1 Establish five-member project teams in 10 selected communities by Q1

2011. 1.2 Decide on payment schemes to be used for project teams by Q1 2011. 1.3 Establish coconut nurseries in all sites by Q2 2011. 1.4 Select and fell senile trees by Q2 2011. 1.5 Replant high-yield coconut varieties in all sites, with intercropping

activities incorporated by Q4 2011.

Output B: Capacity building for social safety policy development 2.1 Select a consulting firm by Q4 2010. 2.2 Provide training on data collection in line with the 2010 census by Q1

2011. 2.3 Procure and prepare all necessary supplies and equipment by Q1 2011. 2.4 Collect, analyze, and report on survey data in consultation with the

government Statistics Department, implementing agency, and other stakeholders by Q2 2012.

2.5 Identify vulnerable groups and monitor their situations starting in Q3 2012. 2.6 Disseminate the study on vulnerability and share with wider stakeholders

by Q4 2012. 2.7 Develop a pilot social protection model building on informal safety nets, in

consultation with key government agencies and other key stakeholders in 2013.

Output C: Regional conference, knowledge sharing, and policy dialogue 3.1 Recruit social protection expert(s) as regional technical adviser(s) by Q4

2010. 3.2 Organize regional inception workshop for project planning by Q2 2011. 3.3 Share vulnerability assessments and experiences of pilot models starting

Q2 2011. 3.4 Organize a Pacific conference to discuss the country experience and

promote policy dialogue on social protection system development in 2013.

Inputs JFPR: $1.2 million Government: in-kind contribution $120,000 Communities: in-kind contribution: $30,000 ADB incremental costs: $60,000

CSO = civil society organization, FY = fiscal year, JFPR = Japan Fund for Poverty Reduction, MRD = Ministry of Resources and Development, NGO = nongovernment organization, PMU = project management unit. Note: The target figures should be updated with the results of most recent demographic and health survey, household income and expenditure survey, or census before the project starts. The activities will be reviewed yearly based on the results of community consultations. Source: Asian Development Bank.

Appendix 1 21

Table A1.3: Design and Monitoring Framework for Tonga

Design Summary Performance Targets

and/or Indicators Data Sources and/or

Reporting Mechanisms Assumptions


By 2016: Income of the vulnerable in representative project areas increased by at least 5% compared with the latest national household income data Number of beneficiaries receiving community social services increased by at least 10% in representative project areas compared with the 2010 vulnerability assessment

Household income and expenditure surveys or census Poverty survey Millennium Development Goal indicator review and assessment

Assumptions The government, local authorities, international NGO, and communities continue to support the project. The executing agency and local governments provide adequate human resources, equipment, and materials. Risks The political situation is unstable and the security situation deteriorates. Natural disasters occur and climate change has impacts.

Outcome Semiformal safety net models developed for effective delivery of social services to the vulnerable

By 2013: Percentage of vulnerable women and other groups receiving social assistance or microcredit support is increased by at least 30% against the 2010 baseline

Monitoring reports produced by government agencies with the mandate to support women, youth, and children Semiannual participatory evaluation conducted by districts and communities Project socioeconomic monitoring data

Assumptions NGOs and CSOs are available to work on the project. Local authorities and communities support the project. Risks The project scope is changed and targets lose relevance.

Output Direct support provided to the vulnerable by the government, NGOs, or CSOs

By 2013: At least 300 vulnerable women received microfinance and training At least 100 qualified women started businesses with microcredit At least 200 vulnerable people received social assistance through existing community groups or NGOs

Monitoring reports produced by government agencies with the mandate to support women, youth, and children Semiannual participatory evaluation conducted by districts and communities

Assumptions Executing agency has management and implementation ability to work with the NGOs, church organizations, and communities. Adequate government funds are available to support semiformal social safety net initiatives

22 Appendix 1

Improved government capacity to design social protection models Efficient and effective project management services provided by the PMU Policy makers and practitioners have shared their experiences on semiformal social protection models

At least two social service models developed by key government agency staff for delivery by NGOs based on output-based grant mechanisms All project progress and monitoring reports submitted as outlined by the project Two regional conferences organized with at least three government representatives from each participating country At least one regional report based on vulnerability assessments published; at least one regional policy dialogue report prepared

Project socioeconomic monitoring data

Government and local authorities continue support for institutional and policy reforms. Risks NGOs and CSOs are not willing to work in selected areas.


Output A: Direct support to the vulnerable for socioeconomic inclusion 1.1 A financial institution recruits loan officers and trainers for training by Q1

2011. 1.2 Based on the 2006 census and the vulnerable people issues paper, and in

consultation with town officers, the financial institution identifies most disadvantaged areas and communities by Q1 2011.

1.3 The financial institution organizes awareness workshops to explain the lending and saving concepts in the selected communities by Q2 2011.

1.4 The financial institution helps prepare microcredit applications for unemployed and low-income women starting Q3 2011.

1.5 With the application, the financial institution conducts a social matrix survey for each woman to judge the applicant’s eligibility starting Q4 2011.

1.6 Selected eligible disadvantaged women will start receiving microcredit and training through weekly meetings by the financial institution, NGOs, and CSOs by Q1 2012.

1.7 Based on the vulnerable people issues paper and in consultation with relevant government agencies and CSOs, target vulnerable groups are identified and NGOs or CSOs are recruited for service provision by Q2 2011.

1.8 Output targets or performance are specified, training is provided, and monitoring mechanism is established by Q3 2011.

1.9 Selected NGOs or CSOs begin to provide social assistance or services to vulnerable groups by Q4 2011.

1.10 Conduct monitoring and evaluation every 6 months after the start of service provision starting Q2 2012.

Output B: Capacity building for social safety policy development 2.1 Disseminate findings and recommendations of the vulnerable people issues

paper by Q1 2011. 2.2 Provide training for staff from key government agencies on design and

monitoring of semiformal safety net models using output-based grant

Inputs JFPR: $0.9 million Government: $90,000 in-kind contribution Communities: $22,500 in-kind contribution ADB incremental costs: $45,000

Appendix 1 23

mechanisms starting Q2 2011. 2.3 Identify feasible social protection programs by Q1 2013. Output C: Regional conference, knowledge sharing, and policy dialogue 3.1 Recruit social protection expert(s) as regional technical adviser(s) by Q4

2010. 3.2 Organize regional inception workshop for project planning by Q2 2011. 3.3 Share vulnerability assessments and experiences of pilot models for regional

dialogue and regional reports starting Q2 2011. 3.4 Organize a Pacific conference to discuss the country experience and

promote policy dialogue on social protection system development in 2013. CSO = civil society organization, JFPR = Japan Fund for Poverty Reduction, NGO = nongovernment organization, PMU = project management unit. Note: The target figures should be updated with the results of most recent demographic and health survey, household income and expenditure survey, or census before the project starts. The activities will be reviewed yearly based on the results of community consultations. Source: Asian Development Bank.

24 Appendix 2

PROJECT DESCRIPTION AND COMPONENTS

A. Summary of Project Components

1. Figure A2 contains a summary description of the project components in each of the three countries included in the project.

Figure A2: Summary of Project Components

Country

Component A:

Direct Support to the Vulnerable for

Socioeconomic Inclusion

Component B:

Capacity Building for Social Safety Net Policy

Development

Component C:

Regional Conference, Knowledge Sharing, and Policy Dialogue

Cook Islands

Home care or nursing services for the elderly and the disabled in the outer islands provided through NGOs or CSOs using output-based grants

Public campaign and consultation for social welfare system reforms

Regional conferences and knowledge products based on vulnerability assessments and policy dialogue

Marshall Islands

Cash for work: replanting of coconut trees for employment stimulus, food security, and climate change

Pilot output-based payment methods

Vulnerability assessments

Development of government capacity to monitor vulnerability and design social protection interventions


Tonga Microcredit for disadvantaged women

Output-based social services for vulnerable groups through NGOs or community groups

Public campaign and consultation for social protection system improvement

Development of government capacity to monitor vulnerability and design social protection interventions


CSO = civil society organization, NGO = nongovernment organization.

B. Cook Islands

1. Background

2. Residents of the Cook Islands enjoy a relatively high standard of living by regional standards. The high human development index reflects the history of high government expenditure on health, education, and welfare. In times of trouble, strong family and community ties traditionally provided social safety nets for the most disadvantaged and vulnerable. However, the growing monetization of the economy, rural–urban migration leading to greater urbanization, and overseas migration have begun to undermine these traditional structures. 3. The Cook Islands does not have a sizable group of very poor people. This is largely because Cook Islanders, whether they reside in New Zealand or in the Cook Islands, receive

Appendix 2 25

social security allowances. The Cook Islands social security system is modeled after the New Zealand system, but is less comprehensive and provides smaller payments. In the Cook Islands, payments are made to all children up to 12 years old and to all people 60 years old and above. Special payments are made to people between these ages who are infirm or destitute. One-off grants equivalent to a 1-month benefit are made to the families of deceased beneficiaries to help pay for funeral costs. Other special assistance is given for improving the residences of disabled people. Unlike in New Zealand, no unemployment benefits are provided. Cook Islanders who move to New Zealand are eligible for unemployment and related benefits there and can bring their higher-paying New Zealand old-age pensions if they return to the Cook Islands as senior citizens. Other payments received by some elderly people include superannuation, pensions of various kinds, and life insurance payouts. 4. The current welfare system, however, is expensive. Limited use of targeting results in high leakage of benefits to the nonpoor. In December 2008, old-age benefits increased from NZ$300 to NZ$400 per month.1 The benefit payment of NZ$150 per month to those facing financial hardship with no means of support and people with disabilities is not adequate to meet the basic costs of living in the Cook Islands. Also, many people who qualify for destitute benefits are not aware of their entitlements. In FY2010, NZ$11 million was budgeted to cover welfare payments. 5. High rates of rural–urban and overseas migration in the Cook Islands seem to have resulted in the near-breakdown of traditional social safety net systems. In many outer islands, the elderly and young children have little or no means of social or economic support from relatives who have relocated to Rarotonga or overseas. In Rarotonga, many parents pay child-care providers to look after their children while they are at work, since they have no family members to care for their children. Remittances from out-of-country workers to the Cook Islands are relatively low, compared with other Polynesian countries such as Samoa and Tonga. 6. Small island developing states like the Cook Islands are also vulnerable to events beyond their control, particularly environmental hazards. For example, in the mid-1990s, the Cook Islands faced a devastating cyclone and a disease outbreak that affected pearl production, and in the 2005 cyclone season, Rarotonga and the southern island group experienced five cyclones. Despite good living standards and achievements in education and health, little cash employment is available outside Rarotonga and Aitutaki. Many households get much of their livelihood from pensions and welfare, particularly in the outer islands. This lack of economic independence and high rates of out-migration are sources of fragility. 7. The most vulnerable groups in the Cook Islands require extra support, in addition to support provided through formal and informal social safety net mechanisms, to ensure their well-being in times of crisis. The vulnerable are identified as the elderly, the unemployed, single parents, children, and people living with disabilities.

2. Component A: Direct Support to the Vulnerable for Socioeconomic Inclusion

8. Community-based home care or nursing services for the elderly and the disabled. Estimated cost: $566,238, to be implemented over 24 months. Highly vulnerable groups, especially the elderly and the disabled in selected communities, will be provided with care or nursing support through community-based nongovernment organizations (NGOs). NGOs or 1 As of 7 January 2010, NZ$1.00 = US$0.74.

26 Appendix 2

community groups in three islands will be contracted to deliver services to groups such as the elderly and people with disabilities who require nursing care at home that is lacking as a result of the breakdown in traditional informal safety net systems. For example, in many outer islands, people between the ages of 15 and 45 tend to migrate for school and work, leaving the elderly and the disabled behind without adequate family care. 9. The Ministry of Internal Affairs (MIA) and the Ministry of Health will call for expressions of interest for the delivery of basic services, and invite NGOs and community groups to prepare proposals to be considered for each island by the government. Support will also be provided to NGOs or community groups in preparing proposals. 10. The government will implement pilot output-based grants (total about $300,000) to NGOs and community groups for the provision of home care or nursing services. If successful, the grants will continue through government budget allocation. Performance-based or output-based contracts will set specific targets for services to be provided to the elderly or the disabled to ensure the delivery of services. The government will monitor the performance and quality of care services delivered by the groups through welfare officials in each island. 11. As part of the component, NGO capacity to deliver home care and other services to the vulnerable will be developed and strengthened. Technical assistance will be provided to develop government capacity, especially for designing output-based contracts with NGOs and establishing monitoring mechanisms to ensure the delivery of basic social services. The government will also ensure transparency and accountability in all contractual relationships with NGOs. This will be coordinated through the NGO focal point within MIA. The pilot implementation is also expected to generate employment opportunities for caregivers in outer islands, who have few other income-generating opportunities. 12. Currently, the government is reviewing its social welfare system as part of its commitment under the Economic Recovery Support Program supported by ADB (see section C.2 in the main section of this report). By October 2011, the government will have reviewed the adequacy of social security benefits and identified the savings to be redirected to the most vulnerable members of the community. The pilot implementation under the proposed Japan Fund for Poverty Reduction (JFPR) project will provide a model for the government to replicate and sustain with the savings from improved targeting of social security benefits. 13. Monitorable deliverables and outputs include: (i) home care or nursing services delivered through NGOs and community groups to at least 100 elderly and disabled people in three communities; (ii) lessons from pilot community-based service delivery to the vulnerable disseminated to inform decisions on the replication of the model across the country; and (iii) at least three NGOs or community groups demonstrate the capacity to successfully apply knowledge and skills acquired through the training programs.

3. Component B: Capacity Building for Social Safety Net Policy Development

14. Public support for welfare benefit reform. Estimated cost: $141,762, to be implemented over 6 months. A paper on issues related to the social welfare system has been completed by the government as a condition of the Cook Islands Economic Recovery Support Program. This component will support the government in developing the capacity to monitor the situation of vulnerable groups identified in the paper and to build consensus for welfare system reform.

Appendix 2 27

15. Any proposed reform in the social welfare system would require a highly participatory and demand-driven process involving all relevant stakeholders. This component will therefore assist the government in eliciting public support for the changes in the current social welfare system, by creating demand for change among the communities including vulnerable groups. To raise awareness and build public support for legislative reform of the current social welfare system, a highly consultative public communication strategy will be developed. Extensive community and stakeholder consultations will be carried out to get public input for the planning, development, and implementation of reforms. The consultations will include community forums for policy debate as well as the promotion of proposed reforms through media and other communication channels. 16. The component will also support grant implementation, monitoring, and reporting. The implementing agency will establish a project management unit (PMU). 17. Monitorable deliverables and outputs include: (i) increased public support for reforming the existing social welfare system; (ii) inception report; quarterly reports; annual reports; completion reports; baseline, midterm, and final socieconomic monitoring data; auditing reports; and other documents for procurement submitted according to schedule; and (iii) consultants hired according to schedule.

4. Component C: Regional Conference, Knowledge Sharing, and Policy Dialogue

18. Estimated cost: $192,000. This component will provide opportunities for the Cook Islands government and relevant stakeholders to share their experiences, good practices, and policy options for social protection with other Pacific countries and development partners. Two regional events will be organized: a regional inception workshop for project planning, and a Pacific safety net conference at the end of the project, which may involve developing national action plans. The regional dialogue will be documented as a regional knowledge product, along with regional reports based on vulnerability assessments from each participating country and shared approaches to social protection across the Pacific island countries. International technical adviser(s) will also be hired at the regional level to assist in the design of safety net models for pilot implementation, and the development of social protection policy. 19. Monitorable deliverables and outputs include: (i) active participation in the regional inception workshop and the Pacific conference; (ii) contribution to the regional dialogue and knowledge products; and (iii) regional technical adviser(s) hired to assist with safety net models and policy dialogue.

C. Marshall Islands

1. Background

20. The current global economic crisis underscores the need for countries to plan effectively to mitigate future downturns in the global economy. Many countries are suffering from increases in the proportion of people living in poverty, without jobs or access to essential services. For small island developing states, such as the Marshall Islands, which depend on a single cash crop for the export market, the situation is alarming. In the Marshall Islands, copra production

28 Appendix 2

remains the key, if not the only, source of income and livelihood for most outer-island communities.

21. The Marshall Islands is vulnerable to events beyond its control, particularly environmental hazards. Despite some good living standards and achievements in education and health, little cash employment is available outside the urban centers, Majuro and Ebeye. This lack of economic independence and a high rate of out-migration are sources of fragility.

22. The Marshall Islands has a pay-as-you-go defined benefit pension scheme, along the lines of the United States (US) Social Security, administered by the Marshall Islands Social Security Administration, an autonomous government body. The scheme covers about 74% of the workforce (about 7,500 contributors). It is funded by contributions: 7% remuneration from employers and 7% of employees’ remunerations as social security premiums. People with insufficient contributions to qualify for a pension receive a lump sum that is taxed at 5%–7%. However, in 2006, almost two-thirds of elderly people did not receive a pension. 23. The extended family provides considerable safety net protection and seems to prevent outright starvation. However, statistics on malnutrition show that often the best the family can do is to share hunger. The ability of the extended family to support other family members is under great pressure from population growth, a decline in the real value of wages, and personal debt. Dependency ratios are high, with a household income earner supporting a spouse and children and a number of adult relatives living in their homes. No other forms of government safety nets are available to those whose basic needs cannot be met even with family support. The Salvation Army conducts some feeding programs aimed at elderly people, regardless of denomination. Other churches provide support to people in their congregation. In addition, despite access to US labor markets and migration to the US, remittance outflows (usually to students) are larger than remittance inflows because most Marshallese are engaged in low-paying jobs overseas. 24. In the last 20 years, rural–urban migration has been constant. In the last 7–10 years, however, the frequency and intensity of out-migration from the outer islands to the urban centers of Majuro and Ebeye has increased. The main reason for this is hardship. Outer-island families are having more difficulty making ends meet, given the sharp fluctuations in the global price of coconut oil, their sole source of income; higher food and fuel prices; and the generally higher cost of living. 25. The rural–urban migration phenomenon has put the government in a quandary. Not only must the government contend with a dwindling outer-island population, which means fewer people to effectively manage and sustain its limited agricultural lands, it must also cope with unsustainable population growth in its urban centers. Uncontrolled migration into the urban centers of Majuro and Ebeye has resulted in deteriorating economic, health, and social conditions and is also increasing pressure on the environment. 26. Majuro, the capital, with a population of 25,000, is a disaster in waiting, if sound and proper planning is not implemented soon to address the needs of its growing population. Some form of repatriation scheme from the urban centers to the outer islands is needed to reduce environmental pressures on urban centers and to repopulate the outer islands to allow functioning and vibrant communities to take root again. But for such a scheme to work, people must have some form of gainful employment and a means of making a reasonable living in the outer islands.

Appendix 2 29

27. Coconut is an important crop because it not only provides income but at the same time serves as an important food source. It serves many purposes within an island context. It is a vital cash and food crop, and is essential to the biodiversity of the atoll environment. Coconuts form the first “green line” defense against soil erosion and other damaging effects of climate change and the rise in sea level. In a harsh atoll environment, coconuts provide a critical barrier from salt spray and saltwater intrusion, allowing agricultural activity to take place. 28. For many years now, the government has been looking at the possibility of using senile coconuts for local timber production. The use of coconut palm for timber production would mean additional income for outer-island communities, and provide substitution for expensive imported lumber for these communities. In 2003, the Food and Agriculture Organization of the United Nations completed a coconut resource and wood utilization study for the government through the Ministry of Resources and Development. The study’s findings indicate that, if planned properly, and given the availability of appropriate tools and human and other resources, such activity would be feasible for the Marshall Islands. 29. The Asian Development Bank (ADB) has proposed the provision of assistance to the Marshall Islands through the Public Sector Program (see section C.2 in the main section of this report) to help the country respond to the global economic crisis and set the country’s reform strategies for the medium to longer term. The proposed program loan will provide budget support to the Marshall Islands to facilitate public sector reform, while planning for economic recovery and the transition to a higher, more inclusive economic growth path. The program will encompass initiatives that target the needs of the most vulnerable.

30. The JFPR grant will provide immediate assistance needed for the vulnerable population in the outer islands, in close coordination with existing community development projects and other projects supported by key development partners and NGOs.


31. Cash for work: replanting coconut trees for employment stimulus, food security, and climate change. Estimated cost: $542,636, to be implemented over 24 months. For rural residents, particularly in the outer-island communities, copra production remains the only source of income. Over the years, the copra industry has declined. Key to the decline is the fact that coconut plantations throughout the nation have become unproductive. From 57% to 70% of the coconuts in the Marshall Islands are estimated to be senile. This translates into low yields in copra production, causing many copra producers to migrate from their homes in the outer islands to the overcrowded urban centers of Majuro and Ebeye in search of jobs. 32. Under the proposed project, the Ministry of Resources and Development (MRD) will be given capacity-building support to enable it to develop, design, and implement a national coconut replanting, rehabilitation, and wood utilization scheme. Teams of five individuals will be established in 10 selected communities and tasked to implement all phases of replanting, rehabilitation, and wood utilization under the scheme, under the supervision of extension agents in MRD’s Agriculture Division. 33. To implement the project, technical assistance will be provided to MRD in preparing detailed implementation plans including criteria for recruiting workers, methods of payment, performance targets, and procedures for monitoring workers’ performance. Workers will be

30 Appendix 2

selected based on their socioeconomic situation and will include unemployed youth and women. Output- or performance-based payment methods, in which payments are made according to specific output targets achieved by each team, will be tried out during the project. This will ensure not only the implementation of the project with clear targets, but will also create incentives for the project teams to set their own targets and be paid accordingly.

34. Monitorable deliverables and outputs include: (i) teams of five individuals established in 10 selected communities throughout the country; (ii) support in the form of stipends and output-based contracts provided to team members to implement the project; (iii) coconut nurseries established at all sites; (iv) senile coconuts felled and processed into coconut lumber; and (v) high-yielding coconut trees planted in all communities.


35. Participatory vulnerability assessment. Estimated cost: $444,364, to be implemented over 24 months. A vulnerability assessment will be conducted, in line with the 2010 census, to identify the most vulnerable population, particularly individuals affected by the oil price increase. This assessment will assist the government in developing a semiformal social protection program that builds on existing community social safety net mechanisms. 36. The assessment will use both quantitative and qualitative approaches. The quantitative analysis will be fully synchronized with the 2010 census (planned to start in mid-2010). The analysis will identify the characteristics of vulnerable groups, the nature and causes of their vulnerability, and locations of particular vulnerability (e.g., outer islands). This assessment will help the government monitor the changing situation of the vulnerable and anticipate the possible impact of future external shocks (economic, social, and environmental) on them. It will assist the government in designing appropriate social protection interventions that will build on and strengthen existing informal safety nets. 37. The qualitative analysis will be conducted through participatory focus group discussions with communities and civil society groups, as well as in-depth discussions with government agencies. It will provide a better understanding of government programs and informal social safety net systems in developing a range of options for enhanced social protection policies. The analysis will also identify the impact of existing programs on the vulnerable, gaps in existing government programs and informal social safety nets, and factors that will initiate appropriate responses to future crises. 38. This component will also support grant implementation and reporting. The implementing agency will establish a PMU. 39. Monitorable deliverables and outputs include: (i) quantitative and qualitative analyses identifying vulnerable groups and the causes of vulnerability; (ii) the capacity gained by the government to monitor the situation of the vulnerable and the possible impact of future external shocks on the vulnerable; (iii) the strengthened capacity of the executing agency to monitor and manage the performance of social protection interventions through links to the community; (iv) inception report; quarterly reports; annual reports, completion reports; baseline, midterm, and final socioeconomic monitoring data; auditing reports; and other documents for procurement submitted according to schedule; and (v) consultants hired according to schedule.

Appendix 2 31


40. Estimated cost: $213,000. This component will provide opportunities for the Marshall Islands government and relevant stakeholders to share their experiences, good practices, and policy options for social protection with other Pacific island countries and donor partners. Two regional events will be organized: a regional inception workshop for project planning, and a Pacific safety net conference at the end of the project, which may involve developing national action plans. The regional dialogue will be documented as a regional knowledge product, along with regional reports based on vulnerability assessments from each participating country and shared approaches to social protection across Pacific countries. International technical adviser(s) will also be hired at the regional level to assist in designing safety net models for pilot implementation and developing social protection policy. 41. Monitorable deliverables and outputs will be as follows: (i) active participation in the regional inception workshop and the Pacific conference; (ii) contribution to the regional dialogue and knowledge products; and (iii) regional technical adviser(s) hired to assist with safety net models and policy dialogue.

D. Tonga

1. Background

42. Tonga’s population enjoys a relatively high standard of living by regional standards, as the country’s human development indicators show. Tonga ranked first among the six Pacific developing member countries that were included in the United Nations Development Programme’s 2008 Human Development Report. High public spending on education and health has resulted in universal primary enrollment and good basic health outcomes, with the exception of the high incidence of non-communicable disease. 43. Tonga has no formal social security system. Strong family and community ties have traditionally provided social safety nets for the most disadvantaged and vulnerable during times of trouble. Tonga has one of the highest remittances flows in the world as a ratio of gross domestic product (GDP) (32% of GDP in 2009), providing the country with an important safety net for most of its population, particularly poorer households with few other sources of cash income. As a result, poverty in Tonga can more accurately be described as hardship resulting from a lack of cash income due to limited income-generating opportunities and poor access to basic quality services, particularly in the outer islands. However, the increasing monetization of the economy, increasing rural–urban migration leading to greater urbanization, and overseas migration have begun to put pressure on these traditional support structures. In addition, remittances are dependent on economic conditions in host countries including Australia, New Zealand, and the United States, and decreased by 17% year on year in June 2009 as a result of the global economic crisis. 44. Churches and NGOs are involved in the delivery of basic social services such as education and support services for those in need, including people with disabilities and victims of domestic violence. The National Provident Fund provides a contribution-based pension and old age savings scheme, but is limited to the civil service, members of the defense forces, and a limited number of private sector employees, which in total account for about 11% of the labor force. The Ministry of Employment, Youth Training, and Sports offers skills development and

32 Appendix 2

training opportunities to unemployed youth. Under Tongan law, every adult male over the age of 16 is entitled to access to a small area of land for a nominal fee; this acts as another safety net. However, in practice, this law is not enforced because of shortage of available land. 45. Despite good living standards and achievements in education and health, little cash employment is available outside the main island of Tongatapu. This lack of economic independence and the high rate of out-migration are sources of fragility. Tonga is also vulnerable to environmental hazards including natural disasters that result in chronic shocks to the Pacific island economies. For example, from 1950 to 2004, Tonga reported 16 natural disaster events. During the disaster years, Tonga’s economic losses averaged 14% of GDP and affected more than 40% of the population. Most recently, in October 2009, the northern island of Niutongaptapu was severely affected by a tsunami. 46. Despite relatively good opportunities to migrate overseas, especially to Australia, New Zealand, and the United States, school leavers increasingly have difficulty finding paid work. While the government has supported private sector development, the growth of this sector has not been able to provide sufficient jobs to match demand. Overall, the youth unemployment rate (as a percentage of the labor force) was estimated to be 11.6% in 2003. Unemployed youth also include Tongans who have been deported from the Australia, New Zealand, or the United States. Family networks for deportees may not be able to support them, leading to social dislocation upon return. 47. In addition to protection provided through formal and informal social safety net mechanisms, most vulnerable groups in Tonga require extra support to ensure their well-being, particularly in times of crisis. While no systematic attempt has been made to identify vulnerable groups, social research shows that vulnerable groups in Tonga include those living in the outer islands where services and infrastructure are poor; families without a wage earner or access to land; recent rural–urban migrants; the elderly without family support; women raising children alone; and the disabled. 48. As part of policy actions under the Economic Support Program (see section C.2 in the main section of this report), the government is committed to developing a paper on the issues affecting vulnerable people to (i) identify vulnerable groups; (ii) examine the adequacy of existing social safety net systems; and (iii) recommend options for improving social protection policies. The paper is to be completed and adopted by the Cabinet by August/September 2010.


49. This component, estimated to cost $638,010 and to be implemented over 24 months, will provide direct support to low-income and unemployed women, and other vulnerable groups that are to be identified in the paper on vulnerable people issues. 50. The component will support low-income and unemployed women (18–64 of age) from poor communities by providing skills training and microcredit opportunities through an existing microfinance institution, 2 which will offer a Grameen Bank–type microcredit program. In consultation with town officials, the institution will select low-income communities including

2 There are two well-established microfinance institutions in Tonga—Tonga Development Bank and South Pacific

Business Development Microfinance Ltd.—both of which have sufficient capacity to administer a grant for microcredit programs under the project.

Appendix 2 33

squatter areas in Tongatapu. 3 The institution will organize awareness-raising workshops to explain lending and saving concepts to the selected communities. A community can apply for individual microcredit (T$1,0004 per person) as a group (10–35 unemployed and low-income women). The institution will conduct a social survey to judge the eligibility of each applicant. The survey will look at conditions such as housing, assets, and number of dependents. If the women in the group meet the lending criteria, they will have access to T$1,000 credit for each member. The institution will not require any collateral but may require group lending responsibility. Weekly meetings will be organized by officers to monitor payments and provide advice. 51. The women will have access to various training such as financial literacy, business finance, marketing, savings advice, and other life skills training including health and gender training. Training and advice related to finance will be given by the loan staff, and other life skills training will be provided by trained women’s group members at weekly meetings. Members will be encouraged to manage their income and expenditures to smooth their consumption and save for any unforeseen events (financial, environmental, and social shocks) as their social security. They will be empowered to be more financially independent with various types of skills, and encouraged to start up micro business activities with credit. The grant will require the microcredit institution to reach 300 disadvantaged women within 2 years. Since women will be required to pay back their micro loans to the institution, the grant will contribute to the institution’s capital and enable the institution to continue lending to more beneficiaries even after the project. 52. Other vulnerable groups that would require other types of support besides micro-credit and income-generating skills training will be supported by NGOs or civil society organizations (CSOs) through an output-based grant. The target beneficiaries and areas of support will be decided on the basis of the paper on vulnerable people issues. Priority will be given to the most vulnerable (not receiving any other assistance from government or private sources) who cannot be easily reached by government services even though the government has allocated resources for social assistance for these groups. Relevant government agencies will be trained to design, administer, and monitor grant mechanisms for social services to be provided by NSOs or CSOs. Along with the emphasis on outreach activities, the key goal will be to strengthen institutional links between the government and informal safety net providers in the community. Once the model is successfully demonstrated, the government will continue the program. 53. Monitorable deliverables and outputs include: (i) at least 300 unemployed and low-income women with microcredit and skills training; (ii) at least 100 qualified women successfully demonstrating skills learned from the training; (iii) at least two types of key services are identified for NGOs or CSOs to assist selected vulnerable groups through pilot output-based grants; and (iv) at least 200 people from vulnerable groups are serviced through these pilot models.


54. This component, estimated to cost $96,990 and to be implemented over 24 months, will support the government in facilitating public discussion on the findings and recommendations of the paper on vulnerable people issues to ensure that any proposed new social safety net programs are demand driven and consensus based, and that vulnerable groups participate in

3 The selection of beneficiary groups will be guided by the findings of the paper on vulnerable people issues and

consultations with stakeholders. 4 As of 7 January 2010, T$1.00 = US$0.54.

34 Appendix 2

their development. The findings on the nature and extent of vulnerability will be discussed, along with types of social assistance needed to alleviate vulnerability. 55. Key staff members from selected government agencies (including the finance, education, health, and youth agencies) will be trained to design social services that can effectively be delivered by existing NGOs or CSOs at the community level, using output-based grants. The training program will focus on designing and monitoring services for the areas where the government cannot easily reach target groups because of difficulty in identifying target groups, distance, mobility of the target beneficiary, and other factors. 56. The component will also support grant implementation and reporting. The executing agency will establish a PMU to implement the project. 57. Monitorable deliverables and outputs include: (i) at least five public consultations and media events on the findings and recommendations of the paper on vulnerable people issues; (ii) relevant government agency staff can design key social services for the vulnerable to be delivered by NGOs or CSOs using output-based grant models; (iii) inception report; quarterly reports; annual reports; completion reports; baseline, midterm, and final socioeconomic monitoring data; auditing reports; and other documents for procurement submitted according to schedule; and (iv) consultants hired according to schedule.


58. Estimated cost: $165,000. This component will provide opportunities for the government of Tonga and relevant stakeholders to share their experiences, good practices, and policy options for social protection with other Pacific island countries and donor partners. Two regional events will be organized: a regional inception workshop for project planning, and a Pacific safety net conference at the end of the project, which may involve developing national action plans. The regional dialogue will be documented as a regional knowledge product, along with regional reports based on vulnerability assessments from each participating country and shared approaches to social protection across the Pacific island countries. International technical adviser(s) will also be hired at the regional level to assist in designing safety net models for pilot implementation and developing social protection policy. 59. Monitorable deliverables and outputs include: (i) active participation in the regional inception workshop and the Pacific conference; (ii) contribution to the regional dialogue and knowledge products; and (iii) regional technical adviser(s) hired to assist with safety net models and policy dialogue.

Appendix 3

Component A Direct support to the vulnerable for socio-economic inclusion

Component B Capacity building for

social safety net policy development

Component C Regional

conference, knowledge

sharing, and policy dialogue

Total (Input) Percent

Civil works 357,000 0 0 357,000 11.9

Equipment and supplies 80,000 52,000 0 132,000 4.4

Training, conference, workshops, seminars, public campaigns

195,000 115,000 135,000 445,000 14.8

Consulting services 21,000 270,000 285,000 576,000 19.2

Grant management 161,500 192,000 120,000 473,500 15.8

Other input 780,000 0 0 780,000 26.0

Contingencies (0%–10% of total estimated grant fund) (use of contingencies requires prior approval from ADB)

152,384 54,116 30,000 236,500 7.9

Subtotal financed by the JFPR grant 1,746,884 683,116 570,000 3,000,000 100.0

Government contribution (in kind) 150,000 150,000 0 300,000

Community contributions (in kind) 41,500 33,500 0 75,000

ADB incremental costs 0 0 150,000 150,000

Total estimated costs 1,938,384 866,616 720,000 3,525,000

SUMMARY COST ESTIMATES Table A3.1: Summary Cost Estimates for the Project

(In US$)

ADB = Asian Development Bank, JFRP = Japan Fund for Poverty Reduction, NGO = nongovernment organization.

Grant Component Input, Expenditure Category

Source: Asian Development Bank estimates.

35

Table A3.2: Summary Cost Estimates for the Cook Islands (In US$)

x 3

ADB = Asian Development Bank, JFRP = Japan Fund for Poverty Reduction, NGO = nongovernment organization. Source: Asian Development Bank estimates.

Component A Direct support

to the vulnerable for socioeconomic

inclusion

Component B Capacity

building for social safety

net policy development

Component C Regional dialogue,

knowledge sharing, and conferences


Civil works 0 0 0 0 0.0

Equipment and supplies 0 19,500 0 19,500 2.2


135,000 15,000 40,500 190,500 21.2

Consulting services 0 0 111,500 111,500 12.4


Other input 300,000 0 0 300,000 33.3


50,236 11,262 10,000 71,500 7.9

Subtotal financed by the JFPR grant 566,238 141,762 192,000 900,000 100.0

Government contribution 45,000 45,000 0 90,000

Community contributions (mostly in kind) 12,500 10,000 0 22,500


Total estimated costs 623,738 196,762 237,000 1,057,500

Grant Component

Input, Expenditure Category

36

App

endi

Table A3.3: Summary Cost Estimates for the Marshall Islands

(In US$)

Component A

Direct support to the vulnerable for

socioeconomic inclusion

Component B

Capacity building for social safety net policy development

Component C Regional

conference, knowledge



Civil works 357,000 0 0 357,000 29.8

Equipment and supplies 80,000 25,000 0 105,000 8.8


0 70,000 54,000 124,000 10.3

Consulting services 21,000 270,000 99,000 390,000 32.5


Other input 0 0 0 0 0.0


50,136 35,364 10,000 95.500 8.0

Subtotal financed by the JFPR grant 542,636 444,364 213,000 1,200,000 100.0




Total estimated costs 615,136 521,864 273,000 1,410,000

Grant Component


A

ppendix 3

ADB = Asian Development Bank, JFRP = Japan Fund for Poverty Reduction, NGO = nongovernment organization. Source: Asian Development Bank estimates.

37

38

App

endi

x 3

Component A

Direct support to the vulnerable for

socioeconomic inclusion

Component B

Capacity building for social safety

net policy development

Component C

Regional conference, knowledge



Civil works 0 0 0 0 0.0

Equipment and supplies 0 7,500 0 7,500 0.8


60,000 30,000 40,500 130,500 14.5

Consulting services 0 0 74,500 74,500 8.3


Other input 480,000 0 0 480,000 53.3


52,010 7,490 10,000 69,500 7.7

Subtotal financed by the JFPR grant 638,010 96,990 165,000 900,000 100.0




Total estimated costs 699,510 147,990 210,000

1,057,500

ADB = Asian Development Bank, JFRP = Japan Fund for Poverty Reduction, NGO = nongovernment organization.

Table A3.4: Summary Cost Estimates for Tonga (In US$)

Source: Asian Development Bank estimates.

Grant Component


DETAILED COST ESTIMATES Table A4.1: Detailed Cost Estimates for the Cook Islands

A

ppendix 4 39

COSTS CONTRIBUTIONS ($)

Code Supplies and Services Rendered Unit Quantity

(units) Cost

(per unit) TOTAL

($) JFPR

ADB Incre-mental Costs

Govern-ment

Other Donors

Commu-nities

Amount

Method of Procure-

ment

Component A: Direct support to the vulnerable for socioeconomic inclusion

Subtotal 573,500 516,000 0 45,000 0 12,500

1.1 Other Input

1.1.1 NGO caregiver services in 3 communities (for 2 years) package 6 50,000 300,000 300,000 combined/QCBS

1.2 Training, workshops, seminars, public campaigns

1.2.1 Training for government officials and NGOs on care services for the elderly and disabled (10 times for 3 communities or NGOs; at least 20 participants in each training)

per set of training

3 30,000 90,000 90,000

1.2.2 Training for staff and island officials in performance monitoring (3 times; 10 participants in each training)

per set of training

3 15,000 45,000 45,000

1.3 Grant management individual

1.3.1 Project coordinator person-month

4 5,000 20,000 20,000

1.3.2 Administrative and finance officer person-month

12 2,000 24,000 24,000

1.3.3 Travel costs per travel 5 5,000 25,000 25,000 1.3.4 Operating costs per month 12 1,000 12,000 12,000 1.3.5 Staff salary and in-kind contribution from the

government and communities 57,500 0 45,000 12,500

Component B: Capacity building for social safety net policy development

Subtotal 185,500 130,500 0 45,000 0 10,000

2.1 Equipment and supplies shopping

2.1.1 Publication of project document per publication

1 1,000 1,000 1,000

2.1.2 Computer for project coordinator and administrative and finance officer

per computer

2 1,500 3,000 3,000

2.1.3 Printer per printer 1 500 500 500 2.1.4 Publication of campaign materials per

publication 3 5,000 15,000 15,000


2.2.1 Community consultation, policy dialogue for consensus building

unit 3 5,000 15,000 15,000


2.3.1 Project coordinator person- 4 5,000 20,000 20,000

A

ppen

dix

4



(units) Cost

(per unit) TOTAL

($) JFPR

ADB Incre-

mental Govern- Other Commu-Costs ment Donors nities

Amount

Method of Procure-

ment

month 2.3.2 Administrative and finance officer person-

month 12 2,000 24,000 24,000



2.3.6 Annual audit per year 2 5,000 10,000 10,000

Component C: Regional conference, knowledge sharing, and policy dialogue

Subtotal 227,000 182,000 45,000 0 0 0

3.1 Consulting services individual

3.1.1 Regional technical assistance (engaged by ADB) person-months

5 31,300 156,500 111,500 45,000


3.2.1 Regional inception workshop prorated 1 15,000 15,000 15,000 3.2.2 Pacific safety net conference prorated 1 22,500 22,500 22,500 3.2.3 Pacific safety net publication prorated 1 3,000 3,000 3,000



3 10,000 30,000 30,000

Subtotal, components A, B, and C 986,000 828,500 45,000 90,000 22,500

Contingency (maximum 10% of total JFPR contribution)

71,500 71,500

Total grant costs 1,057,500 900,000 45,000 90,000 0 22,500

ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction, NGO = nongovernment organization, QCBS = quality- and cost-based selection. Source: Asian Development Bank estimates

40

DETAILED COST ESTIMATES Table A4.2: Detailed Cost Estimates for the Marshall Islands

A

ppendix 4 41



(units) Cost

(per unit) Total

($) JFPR


Govern-ment

Other Donors

Comm-unities

Amount

Method of

Procure-ment


Subtotal 565,000 492,500 0 60,000 0 12,500

1.1 Civil works shopping/

individual

1.1.1 Cash for work with copra replantation (at least 10 communities)

per community

10 30,000 300,000 300,000

1.1.2 Community work supervisors person-month

10 3,000 30,000 30,000

1.1.3 Transport, travel, and per diem for supervisors per month 6 2,000 12,000 12,000 1.1.4 Engineers for design and site setting per month 5 3,000 15,000 15,000

` 1.2 Procurement of supplies and equipment shopping/

individual

1.2.1 Procurement of copra and tools per community

10 5,000 50,000 50,000

1.2.2 Transportation of copra to outer islands per community

10 3,000 30,000 30,000


1.3.1 Needs assessments and monitoring and evaluation person-month

5 3,000 15,000 15,000

1.3.2 Environmental specialist (national) person-month

2 3,000 6,000 6,000



4 3,000 12,000 12,000




Subtotal 486,500 409,000 0 60,000 0 17,500


2.1.1 Publication of project document per publication

2 1,000 2,000 2,000

2.1.2 Computer for project coordinator per 1 2,000 2,000 2,000

A

ppen

dix

4



(units) Cost

(per unit) Total

($) JFPR


Govern-ment

Other Donors

Comm-unities

Amount

Method of

Procure-ment

42

computer 2.1.3 Printer per printer 1 1,000 1,000 1,000 2.2.5 Publication of the vulnerability assessment

document per

publication 5 4,000 20,000 20,000


2.2.1 Data collection and fieldwork along with 2010 census (22 islands x 2)

number of outer islands

44 5,000 220,000 220,000

2.2.2 Data compilation and analysis per month 10 5,000 50,000 50,000

2.3 Training, workshops, seminars, public

campaigns

2.3.1 Focus group discussions and workshop (22 islands) number of outer islands

22 2,500 55,000 55,000

2.3.2 National dissemination workshop per workshop

1 15,000 15,000 15,000



4 3,000 12,000 12,000



2.4.5 Annual audit per year 2 3,000 6,000 6,000

Component C: Regional conference, knowledge sharing, and policy dialogue

Subtotal 263,000 203,000 60,000 0 0 0


3.1.1 Regional technical assistance (engaged by ADB) person-month

6 26,500 159,000 99,000 60,000


campaigns




5 10,000 50,000 50,000

A

ppendix 4 43



(units) Cost

(per unit) Total

($) JFPR


Govern-ment

Other Donors

Comm-unities

Amount

Method of

Procure-ment

Subtotal, components A, B, and C 1,314,500 1,104,500 60,000 120,000 0 30,000


95,500 95,500

Total grant costs 1,410,000 1,200,000 60,000 120,000 0 30,000

ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction, QCBS = quality- and cost-based selection. Source: Asian Development Bank estimates.

A

ppen

dix

4

Table A4.3: Detailed Cost Estimates for Tonga



(units) Cost

(per unit) Total

($) JFPR


Govern-ment

Other Donors

Comm-unities

Amount

Method of Procure-

ment


Subtotal 647,500 586,000 0 45,000 0 16,500


campaigns combined/

QCBS

1.1.1 Gender/Health training (at least 20 groups) (10 sessions; 30 participants in each training)

community 20 1,000 20,000 20,000

1.1.2 Business development training (at least 20 groups) (10 sessions; 30 participants each training)

community 20 2,000 40,000 40,000

1.2 Others combined/

QCBS

1.2.1 Microfinance for vulnerable women’s group (at least 500 persons)

year 2 140,000 280,000 280,000

1.2.2 NGO service provision to selected vulnerable groups

group 10 20,000 200,000 200,000



4 2,500 10,000 10,000


12 2,000 24,000 24,000

1.3.3 Transportation and per diem travel 12 500 6,000 6,000 1.3.4 Operating costs month 12 500 6,000 6,000 1.3.5 Staff salary and in-kind contribution from the



Subtotal 140,500 89,500 0 45,000 0 6,000


2.1.1 Publication of project document publication 2 2,000 4,000 4,000 2.1.2 Computer for project coordinator and

administrative and finance officer computer 2 1,500 3,000 3,000

2.1.3 Printer printer 1 500 500 500


2.3.1 Public campaign and consultations for social protection policy and program

package 3 10,000 30,000 30,000

44

A

ppendix 4 45



(units) Cost

(per unit) Total

($) JFPR


Govern-ment

Other Donors

Comm-unities

Amount

Method of Procure-

ment



4 2,500 10,000 10,000


12 2,000 24,000 24,000

2.4.3 Operating costs month 12 500 6,000 6,000 2.4.4 Staff salary and in-kind contribution from the


2.4.5 Annual audit year 2 6,000 12,000 12,000

Component C. Regional conference, knowledge sharing, and policy dialogue

Subtotal 200,000 155,000 45,000 0 0 0


3.1.1 Regional technical assistance (engaged by ADB)

person-month

5 23,900 119,500 74,500 45,000


campaigns




4 10,000 40,000 50,000

Subtotal, components A, B, and C 988,000 830,500 45,000 90,000 0 22,500


69,500 69,500

Total grant costs 1,057,500 900,000 45,000 90,000 0 22,500

ADB = Asian Development Bank, JFPR = Japan Fund for Poverty Reduction, NGO = nongovernment organization, QCBS = quality- and cost-based selection. Source: Asian Development Bank estimates.

46 Appendix 5

FUND FLOW ARRANGEMENTS

1. The Asian Development Bank (ADB) will channel the Japan Fund for Poverty Reduction (JFPR) funds directly to JFPR imprest accounts. 2. For the project in the Cook Islands, the Ministry of Finance and Economic Management, as the executing agency (EA) for the project, will open an imprest account and will manage it together with the Ministry of Internal Affairs (MIA), the project implementing agency (IA). The two agencies will cosign all withdrawal applications. The project management unit (PMU) will be established under the MIA to support the day-to-day administration of the imprest account. 3. For the project in the Marshall Islands, the Ministry of Finance (the EA) will open an imprest account that it will manage together with the Ministry of Resources and Development (the IA). The two agencies will cosign all withdrawal applications. The PMU will be established under the implementing agency to support the day-to-day administration of the imprest account. 4. For Tonga, the Ministry of Finance and National Planning (MFNP), the EA, will open and manage an imprest account. The PMU will also be established under MFNP to support the day-to-day administration of the imprest account. 5. The PMUs in the Cook Islands, the Marshall Islands, and Tonga will keep the EAs and IAs informed of all transactions, and provide them with copies of all financial statements. The audit will be conducted by the EAs. The imprest account will be at a commercial bank endorsed by the EAs and acceptable to ADB, to facilitate day-to-day local expenditures for the JFPR project. 6. The cost of regional activities such as regional conferences or events will be paid out of each country’s account (for expenses of representatives participating in the conference) and by the ADB South Pacific Subregional Office in the Fiji Islands (for conference organization expenses). 7. The maximum amount to be deposited into each imprest account will be based on 6 months of estimated expenditures to be funded from the imprest account or 10% of the total allocation per country, whichever is lower. The imprest account will be replenished based on replenishment requests from the PMU through the IA (and EA for Tonga). To ensure speedy project implementation, the statement-of-expenditures procedure will apply to all individual payments and transactions under $10,000. Detailed implementation arrangements, such as the flow, replenishment, and administrative procedures, will be detailed in the grant implementation memorandum and will be established between ADB and the government through the JFPR letter of agreement. The schematic fund flow for the project is shown in Figure A5.

Appendix 5 47

Figure A5: Fund Flow Arrangements for the Japan Fund for Poverty Reduction Project

Asian Development

Bank

$33,750

Funds for Regional Activities

(meetings/ conferences)

through SPSO

Grant Imprest Account Held at PMU in Each

Country

$1,594,500

$629,000

Component A: Direct support to the

vulnerable for socioeconomic

inclusion

Component B: Capacity building for

social safety net policy development

$506,250

$236,500

Component C: Regional

conference, knowledge sharing, and policy dialogue

Contingencies

PMU = project management unit, SPSO = (ADB) South Pacific Subregional Office. Note: The amounts shown are exclusive of incremental costs and represent aggregate amounts for all three countries. The PMU will be established in each country. Source: Asian Development Bank.

48 Appendix 6

IMPLEMENTATION ARRANGEMENTS

1. Executing agencies. The executing agencies for the project will be (i) the Ministry of Finance and Economic Management in the Cook Islands; (ii) the Ministry of Finance in the Marshall Islands; and (iii) the Ministry of Finance and National Planning in Tonga. They will be responsible for the overall implementation of the project in each country. 2. Implementing agencies. The executing agency for Tonga will be the implementing agency, supported by the project management unit (PMU). The Ministry of Internal Affairs in the Cook Islands and the Ministry of Resources and Development in the Marshall Islands will be the implementing agencies for the project in those countries. 3. Steering group. The project will test possible future arrangements for social protection programs. This means that the ministries responsible for coordinating various social services and vulnerable people issues are key stakeholders. To ensure feasible and sustainable recommendations from the pilot activities, the project will establish a steering group or committee in each country. The proposed members are the following: (i) in the Cook Islands, nominated representatives from the Ministry of Finance and Economic Management, the Ministry of Internal Affairs, the Ministry of Health, the Ministry of Education, the National Council for Women, and the National Disabilities Council; (ii) in the Marshall Islands, nominated representatives from the Ministry of Finance, the Ministry of Resources and Development, Chamber of Commerce, nongovernment organizations (NGOs), and civil society organizations; and (iii) in Tonga, nominated representatives from the Ministry of Finance and National Planning, the Ministry of Education, the Ministry of Health, the Ministry of Training, Employment, Youth, and Sports, and the Civil Society Forum. The actual composition of each steering committee will be reviewed before implementation begins. The terms of reference will be agreed on in the first quarter after the project takes effect. The PMU will provide secretariat service to the committee. The steering committee’s main responsibility will be to ensure inter-ministerial coordination for the future nationwide replication of the piloted social protection systems. The committees will meet at least once every quarter or as often as needed. 4. The PMU will include a country project coordinator responsible for (i) implementing, supervising, and coordinating three components of the project in close coordination with the steering group, relevant stakeholders, and the regional project coordinator; (ii) coordinating with key government agencies and relevant development partners involved in social safety net, community-based development, micro-saving, and other areas related to the project activities to improve synergy; (iii) organizing participatory consultation workshops to inform stakeholders and communities about the Japan Fund for Poverty Reduction (JFPR) project; (iv) preparing day-to-day financial reports; (v) providing overall monitoring and reporting on the progress of all project activities; and (vi) submitting project quarterly reports, semiannual community evaluation reports, socioeconomic monitoring data, and consolidated annual reports. The implementation structure is shown in Figure A6.

Appendix 6 49

Figure A6: Implementation Structure for the Japan Fund for Poverty Reduction Project C = community, NGO = nongovernment organization, PMU = project management unit. Source: Asian Development Bank.

C C

Consultants, NGOs, Civil

Society Organization

CC

Regional Grant Coordinator

Executing Agency for Tonga and Implementing

Agencies for Cook Islands and

Marshall Islands

Other Relevant Ministries, Key

NGOs, Civil Society Organizations

PMU

Steering Committee or

Group

Relevant Ministries

5. Implementation schedule. The project will be implemented from October 2010 to March 2013. The project preparation activities (including the preparation of the grant implementation memorandum and the hiring of consultants) will be completed by the fourth quarter of 2010. The project will be implemented in coordination with the Economic Recovery Support Program, which began implementation in the fourth quarter of 2009 and the first quarter of 2010 (see section C.2 in the main section of this report). 6. Procurement. Any procurement under the project will conform to the government’s procurement procedures and the Asian Development Bank (ADB) Procurement Guidelines (2010, as amended from time to time). Among other needs, procurement will mainly cover equipment, small tools, and office supplies. Since most procurement will be small scale and without much chance of attracting international or national firms, procurement for civil work activities will rely on community participation in line with ADB Procurement Guidelines (para. 3.17) and ADB Project Administration Instructions. 8 Training activities need to be discussed with each implementing agency and relevant stakeholders to guide the design 8 ADB. 2007. Project Administration Instructions. PAI 5.12: Implementing Small Projects with Community

Participation. Manila.

50 Appendix 6

process and avoid duplication. Shopping methods will be used for procuring small equipment and supplies. After project completion, office equipment and manual construction tools will be given to the provincial government. 7. Consultants for each country will be recruited by the executing agencies in consultation with, and with the endorsement of, ADB according to ADB Guidelines on the Use of Consultants (2010, as amended from time to time). ADB will directly recruit regional consultants (one or two persons) according to these guidelines. The mode of consultant recruitment will combine firm and individual recruitment, and the method of selection will be quality- and cost-based selection with a quality–cost ratio of 80:20. 8. Disbursement. An imprest account will be established in a commercial bank endorsed by the executing agency and acceptable to ADB. It will be jointly managed by the executing agencies and the implementing agencies, which will countersign all withdrawal applications. All disbursements for in-country activities will be channeled through the PMU, which will support implementing agencies (and the executing agency in Tonga). The imprest account or any account for channeling ADB funding will be established, managed, replenished, and liquidated according to ADB Loan Disbursement Handbook (2007, as amended from time to time). The maximum amount to be deposited into the imprest account will not exceed the equivalent of 6 months’ estimated expenditures to be financed from the imprest account or 10% of total allocation per country, whichever is lower. 9. Interest earned on the imprest account can be used for the project, subject to ADB approval, within the approved total amount of the grant. Upon project completion and before the imprest account is closed, any unused interest should be returned to the JFPR fund account maintained at ADB if the remittance fee and other bank charges do not exceed the interest earned. The statement-of-expenditures procedure may be used for the reimbursement of eligible expenditures and the liquidation of advances made to the imprest account for individual payment transactions not exceeding the equivalent of $10,000. Payments in excess of this ceiling will be replenished on the basis of full supporting documentation. 10. ADB will channel the JFPR funds directly to the imprest account. The PMU will disburse funds to other parties (including NGOs and community groups), maintain all records and supporting documents, and arrange annual audits for the project. If NGOs or community groups are contracted for project activities, the PMU will submit all original contracts and supporting documents of payments to ADB as required. The executing agency in each country will hire an audit company, acceptable to ADB, to prepare an annual audit report with audit opinions. The auditor’s report will include certified copies of the audited accounts and financial statements, a separate auditor’s opinion on the use of the imprest account, and a statement-of-expenditures procedure. The audit report should also include an opinion on the use of JFPR funds. These will be submitted to ADB by the executing agencies within 6 months from the close of each fiscal year or of the project closing date, whichever is earlier. The implementing agencies (the executing agency for Tonga) will submit quarterly progress reports and a project completion report within 3 months of project completion. 11. Disbursements for the contracts of consultants hired by ADB will be made according to ADB Technical Assistance Disbursement Handbook (2010, as amended from time to time). 12. Monitoring. The executing and implementing agencies will monitor the quality of works in the country, and the regional coordinator will monitor overall regional project impacts. The participation of communities in monitoring will be vital.

PROCUREMENT PLAN

Country Cook Islands, Marshall Islands, and Tonga Name of Borrower Cook Islands, Republic of the Marshall Islands, and Kingdom of

Tonga Project Name Social Protection of the Vulnerable in the Pacific Grant Reference 43090 Date of Effectiveness TBD Amount $3 million

Of which committed ($) To be determined Executing Agency Cook Islands: Ministry of Finance and Economic Management;

Marshall Islands: Ministry of Finance; and Tonga: Ministry of Finance and National Planning

Approval Date of Original Procurement Plan To be determined Approval of Most Recent Procurement Plan To be determined Publication for Local Advertisementsa To be determined Period Covered by This Plan Fourth quarter 2010 to first quarter 2013

a General procurement notice, invitations to bid, calls for expressions of interest.

A. Regional Contract Package

1. A regional grant coordination unit will be established to provide overall guidance and coordination of the project for all three countries. International consultants, including a regional project coordinator and social protection specialists, will be recruited using individual consultant recruitment selection, as indicated in Table A7.1. The consultants will be recruited directly by the Asian Development Bank (ADB) using the Japan Fund for Poverty Reduction (JFPR) grant and the incremental cost allocation.

Table A7.1: Regional Contract Packages

Item Unit No. of Units

Cost per Unit

($’000)

Total Estimated

Cost ($’000)

Procurement Method

Expected Date of

Advertisement (quarter/year)

Prior Review

(Y/N) Comments

Project coordinator (international consultant)

person-month 12 10 120 ICS Q4/2010 Y

Overall responsibility for and coordination of grant management units and expertise in the area of social protection

Social protection specialist (international

person-month 16 27.2 435 ICS Q4/2010 Y

Provision of specialist input to the country

51

Appendix 7

x

7

Item Unit No. of Units

Cost per Unit

($’000)

Total Estimated

Cost ($’000)

Procurement Method

Expected Date of


Prior Review

(Y/N) Comments consultant) activities ICS = individual consultant selection, Q = quarter, Y = yes, N = no

B. Contract Packages for the Cook Islands

2. As the executing agency for the Cook Islands, the Ministry of Finance and Economic Management will be responsible for the procurement of the contract packages listed below. The executing agency will hire the project coordinator (national consultant), using individual consultant selection methods, to manage the project management unit (PMU). The project coordinator will then be responsible for supporting the executing agency in the procurement of remaining consulting packages and other services using the methods listed in Tables A7.2 and A7.3.

Table A7.2: Procurement of Consulting Services for the Cook Islands

52

App

endi

Item Number of Positions

Unit/No. of Units

Total Estimated

Cost ($’000)

Procurement Method

Expected Date of


Prior Review

(Y/N) Comments

Project coordinator (national consultant) 1

Person-month/8 40 ICS Q4/2010 Y

Overall responsibility for and management of project management unit

Administrative and finance officer 1


Assistance to the project coordinator and implementing agency in accounting and procurement

Caregiver support and performance-monitoring training (international consultant) 1

Person months/6 135 ICS TBD Y

Conduct training sessions to build capacity for service provision to the elderly and disabled and for performance monitoring

Caregiver support services Package/6 300

QCBS (80:20) TBD Y

Delivery of care and support services to the elderly and disabled in 3 communities for 2 years

Audit Package/1 10 Least cost TBD Y Annual audit ICS = individual consultant selection, Q = quarter, QCBS = quality- and cost-based selection, TBD = to be determined, Y = yes, N = no.

Table A7.3: Procurement of goods for the Cook Islands

Item No. of

Packages

Unit Cost per

package ($’000)

Total Esti-

mated Cost

($’000)

Procure-ment

Method

Expected Date of Advertise-

ment (quarter/year)

Prior Review

(Y/N) Comments Laptop computers (2) and printer (1) 1 3.5 3.5 Shopping Q4/2010 N

NCB = national competitive bidding, Q = quarter, TBD = to be determined, Y = yes, N = no.

C. Contract Packages for the Marshall Islands

3. The implementing agency, the Ministry of Resources and Management, will be responsible for directly contracting the project coordinator (national consultant), using individual consultant recruitment procedures, to manage the PMU. The project coordinator will then support the implementing agency with the procurement of the remaining consulting services and other goods, using the procurement methods listed in Tables A7.4 and A7.5.

Table A7.4: Procurement of Consulting Services for the Marshall Islands

Item No. of

Positions Unit/quantity

of units

Total Estimated

Cost ($’000)

Procurement Method

Expected Date of


Prior Review (Y/N) Comments

Project coordinator (national consultant) 1

Person months/8 24 ICS Q4/2010 Y


Environmental specialist (national consultant) 1

Person months/2 6 ICS TBD

Y Environmental impact assessments of proposed works

53

Appendix 7

Needs assessment monitoring and review (national consultant) 1

Person months/5 15 ICS TBD Y

Ongoing monitoring and review activities

Social safety net review, data collection and analysis, and dissemination workshops (international consultant) Package/1 340

QCBS (80:20) TBD Y

Review of current social welfare system, data collection, analysis and dissemination workshops

Audit Package/1 6 Least cost TBD Y Annual audit ICS = individual consultant selection, QCBS = quality- and cost-based selection, TBD = to be determined, Y = yes, N = no.

Table A7.5: Procurement of Goods and Civil Works for the Marshall Islands

Item

Number of

Packages

Unit Cost per package ($’000)

Total Estimated

Cost ($’000)

Procurement Method

Expected Date of


Prior Review

(Y/N) Comments

Cash for work (coconut replanting) 1 437 437 NCB Q4/2010 Y

Coconut replanting activities in 10 communities

Laptop computer (1) and printer (1) 1 3 3 Shopping Q4/2010 N

NCB = national competitive bidding, Q = quarter, Y = yes, N = no.

D. Contract Packages for Tonga

4. The Ministry of Finance and National Planning, the executing agency for Tonga, will recruit the project coordinator (national coordinator) and administration and finance officer (national coordinator) to staff the PMU, using individual consultant recruitment procedures. The PMU staff will then support the executing agency in the procurement of the remaining consultant services and goods, using the procurement methods listed in Tables A7.6 and A7.7.

x 7

54

App

endi

A

ppendix 7 55

Table A7.6: Procurement of Consulting Services for Tonga

Item

Number of

positions Unit/quantity

of units

Total Estimated

Cost ($’000)

Procurement Method

Expected Date of


Prior Review

(Y/N) Comments Project coordinator (national consultant) 1



Administrative and finance officer (national consultant) 1


Responsibility for administrative and financial reporting activities

Gender, health, and business development training (national consultant) Package/1 60

QCBS (80:20) TBD Y

Gender and health education activities; business skills training in communities

Microfinance for vulnerable women’s groups Package/1 280

QCBS (80:20) Q4/2010 Y

Responsible for providing microfinance reaching at least 300 poor and disadvantaged women

Service provision to vulnerable groups Package/10 200

QCBS (80:20) Q4/2010 Y

Responsible for providing services to selected vulnerable groups

Audit Package/1 12 Least cost TBD Y Annual audit IC = individual consultant selection, N = no, QCBS = quality- and cost-based selection, S = shopping, TBD = to be determined, Y = yes.

Table A7.7: Procurement of Goods for Tonga

Item No. of

Packages

Unit Cost per package ($’000)

Total Esti-

mated Cost

($’000) Procurement

Method

Expected Date of Advertise-

ment (quarter/year)

Prior Review

(Y/N) Comments Laptop computers (2) and printer (1) 1 3.5 3.5 Shopping Q4/2010 N

Q = quarter, Y = yes, N = no.

56 Appendix 8

I. SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

Country/Project Title: Social Protection of the Vulnerable in the Pacific (Cook Islands, Marshall Islands, and Tonga) Lending/Financing Modality:

Grant: Japan Fund for Poverty Reduction Department/ Division:

PARD/PAHQ

I. POVERTY ANALYSIS AND STRATEGY

A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy Cook Islands The Cook Islands’ National Sustainable Development Plan guides development and identifies programs for addressing the constraints on growth to 2020. The plan identifies eight strategic goals as priority areas for implementation including (i) equal opportunities for health, education, and other social services, to establish an inclusive and vibrant society; and (ii) a safe, secure, and resilient community. The expected outcomes of the country partnership strategy 2008–2012 are improved economic and social infrastructure and public sector service delivery in support of the achievement of national development goals. Marshall Islands Vision 2018 reflects the country’s Strategic Development Plan Framework for 2003–2018. Ten national goals are outlined including (i) enhanced socioeconomic reliance; (ii) an educated people; (iii) a healthy people; (iv) respect for culture and traditions; and (v) environmental sustainability. The Asian Development Bank (ADB) strategy outlined in the country strategy and program update (2007–2011) includes improved social services delivery and poverty reduction. Tonga Tonga’s new draft national strategic planning framework focuses on seven outcomes considered to be fundamental to producing sustained and more equitable economic growth. These include (i) community development that meets service needs; (ii) increased performance of technical and vocational education and training to meet the challenges of maintaining and developing services and infrastructure; and (iii) environmental sustainability and climate change integrated into all planning and execution of programs. The ADB strategy outlined in the country partnership strategy 2007–2012 includes improved social services delivery. The project will contribute to poverty reduction and sustainable development, which are identified as priorities in the countries’ national development plans and ADB strategy, through improved social service delivery and community development, which will enhance welfare and livelihood outcomes. The project will build the resilience of vulnerable groups and strengthen safety nets that can protect them from economic shocks, natural disasters, and environmental hazards. The project is linked to economic support and recovery loans and grants in these countries that promote economic recovery and growth by providing budget support to ensure that the delivery of key social services such as health and education are maintained in the face of government revenue shortfalls. B. Poverty Analysis Targeting Classification: TI-H________________ 1. Key Issues The nature of poverty in ADB’s Pacific developing member countries (PDMCs), including the Cook Islands, the Marshall Islands, and Tonga, relates more to lack of access to quality essential services and lack of income-earning opportunities, rather than extreme hunger or destitution. Customary communal land ownership and strong extended family and community networks have assisted in preventing extreme forms of poverty in most countries. Informal social assistance is provided to disadvantaged groups such as the old, young, and disabled through kinship networks. However, as these informal safety nets come under increasing strain due to rural–urban migration and the increased need for cash income, they are becoming less effective in preventing vulnerable groups from falling into poverty. ADB conducted a number of participatory assessments of hardship in various PDMCs in 2001–2006. Through this process, a definition of hardship in the Pacific was developed to include:

(i) lack of access to basic services such as health care, education, and clean water; (ii) lack of opportunities to participate fully in the socioeconomic life of the community; and (iii) lack of access to productive resources and income generation support systems (rural credit, capital, markets,

skills) to meet the basic needs of the household, or customary obligations to the extended family, village community, or the church.

Appendix 8 57

The quality of poverty statistics for many PDMCs is poor, with data often being either out of date or unavailable, or not disaggregated by age, sex, and geographic location. This lack of appropriate poverty data makes the identification of vulnerable groups in the region especially challenging. Table A7 presents most recent estimates on the incidence of poverty in the Cook Islands, the Marshall Islands, and Tonga, based on an analysis of household income and expenditure data. The analysis reveals that women, children, and the elderly, as well as households with no wage earner or involved in mainly subsistence farming, are disproportionately vulnerable to poverty.

Table A7: Poverty Incidence for Selected Pacific Developing Member Countries Basic Needs Poverty Incidence (%)

Country National Urban Rural

Cook Islandsa 28.4 30.5 23.6 Marshall Islandsb 20.0 … … Tongac 22.3 23.6 22.8

… = data not available, HIES = household income and expenditure survey. Sources: a 2005/06 HIES, b 1999 Census, c 2002 HIES.

2. Design Features Vulnerable groups including women, children, youth, the elderly, and people living with disabilities require additional social assistance to cope with the effects of the recent global economic crisis. In addition, these groups require assistance to reduce their vulnerability to future economic, environmental, and natural disaster crises, in order to avoid falling into poverty traps. To protect and improve the welfare of vulnerable groups, the project will (i) provide social assistance and income-generating opportunities for identified vulnerable groups in selected communities to restore their livelihoods that have been severely affected by recent economic downturns and natural disasters; and (ii) strengthen informal social safety net systems to build resilience to future economic, social, environmental shocks. The project will deliver this support through the following activities: (i) direct support to the vulnerable through targeted assistance such as cash for work and microcredit; and (ii) pilot-testing of semiformal social safety net models using output-based grant mechanisms to assist vulnerable groups. The project will also aim to develop the capacity of nongovernment organizations (NGOs), civil society, and relevant government agencies to provide long-term support to vulnerable populations. Socioeconomic monitoring will be carried out under the project to assess the effectiveness of project activities, and to inform the design of future social protection programs. C. Poverty Impact Analysis for Policy-Based Lending The associated ADB-financed program loans and grants to the Cook Islands, the Marshall Islands, and Tonga will provide budget support to enable the government to stimulate the economy and thereby respond to the economic downturn caused by the global economic crisis. Grant and loan financing will enable higher capital expenditure to promote long-term economic growth through productive investment in key infrastructure, and in the short term stimulate aggregate demand to promote economic recovery. In addition, budget support will ensure the continued delivery of priority social services such as health and education. All groups will benefit from economic recovery and governance reforms; however, vulnerable groups can be expected to benefit most through maintained or increased spending in priority areas including education, health, and transport services, as well as the pilot-testing of semiformal safety nets. In addition, increased investment in infrastructure is expected to create low-skilled jobs that will benefit the vulnerable including unemployed youth. Policy reforms will include a reorientation of spending to priority services (education, health, and transport services) that can be expected to have a direct poverty-reducing impact on vulnerable groups including women, children, youth, the elderly, people living with disabilities, and rural households. The increase in productive investment infrastructure is expected to promote economic recovery and long-term growth, which can contribute to poverty reduction among vulnerable groups. In addition, governance reforms such as deregulation of telecommunications are expected to improve economic growth and result in lower-cost and better-quality services, which will benefit vulnerable groups.

The associated ADB-financed operation will support the transition to a higher, more inclusive path of sustainable economic growth, which will directly contribute to poverty reduction. The outcome of the program will be initiation of recovery with protection of the vulnerable. The increase or maintenance of spending on priority services, including education, health, and transport services, as well as increased investment in infrastructure, will contribute to the achievement of the Millennium Development Goals in the project countries.

58 Appendix 8

II. SOCIAL ANALYSIS AND STRATEGY

A. Findings of Social Analysis The target beneficiaries of the project are vulnerable groups who are disproportionately affected by economic and environmental or natural disaster crises as a result of social and economic disadvantage. Groups identified as vulnerable are women, children, unemployed and uneducated youth, elderly and widowed men, people living with disabilities, and urban low-wage workers. Women are less likely than men to be working in the formal sector; this limits their access to social security benefits such as pensions and worker’s compensation, which are generally available only to formal sector workers. Women are also disproportionately represented in low-paying jobs such as those in the tourism and domestic services sector. Lack of rights to land ownership in PDMCs such as Tonga limits women’s access to productive economic resources since gaining access to formal credit is difficult when land cannot be used as collateral. Poor access to basic services such as electricity and piped water also disproportionably disadvantages females, who have primary responsibility for domestic activities through heavier work burdens required for the collection of fuelwood and water to meet household needs. In addition, women are exposed to greater health risks associated with poor health care service delivery such as childbirth, resulting in high maternal mortality rates in the region. Job creation in the region has failed to keep pace with population growth because of low rates of economic growth. As a result, high rates of youth employment, particularly in urban areas, have become a significant problem in many PDMCs. Another factor contributing to rising youth unemployment is the poor quality of education systems in many PDMCs, which do not provide graduates with employable skills. In the Marshall Islands, the lack of appropriate skills (especially among dropouts), coupled with a very slow-growing job market, has led to an alarming youth unemployment rate, estimated at 57% for those aged 16–24 years in 2007. Substance abuse, suicide, crime, teenage pregnancy, and sexually transmitted infections are high or rising among adolescents, especially in urban areas.

Children represent another major vulnerable group in the region. Rates of infant mortality are high. Under-five mortality rates per 1,000 are: 21 in the Cook Islands, a 59 in the Marshall Islands,b and 25 in Tonga.c Neonatal causes have been the major cause of death among children under the age of five in several PDMCs, followed by diarrheal diseases, pneumonia, and measles. The recent deterioration in economic conditions has had a direct negative impact on child welfare in several countries, as children have been sent home from school when their families could not pay their school fees.

Other disadvantaged groups include the elderly, particularly those living below the income poverty line as a result of lack of family support and access to formal social security such as pensions. People living with disabilities in the Pacific also suffer disproportionately from hardship through lack of support services and lower access to education and employment opportunities. For example, in the Cook Islands, only 50% of children living with disabilities attend school. In many PDMCs, the government provides very little service to this group, which is almost completely dependent on informal support services provided by family, community, and NGOs. Rural households in many PDMCs are disadvantaged through lower access to good-quality basic services such as health and education, which are essential for achieving human development outcomes. Small, isolated populations and large distances between islands make the delivery of such services difficult and expensive in the region. Another rapidly growing group of the vulnerable is made up of urban dwellers living with low or no stable income source. As people moved away from their rural communities in search of better opportunities, community and family ties have weakened and people have come to mainly rely on cash income for living. In weakly growing economies or during economic downturns, urban workers can lose their main source of livelihood easily as many have done during the global economic crises, while lacking at the same time the traditional informal support system that used to support them in rural communities in times of hardship. In the absence of widely available labor protection mechanisms in most PDMCs, low-wage urban workers are highly vulnerable to the loss of their main source of living without having formal or informal safety nets to fall back on.

Appendix 8 59

B. Consultation and Participation

1. Provide a summary of the consultation and participation process during the project preparation. During the fact-finding mission, extensive consultation meetings were held with various departments of the governments of the three PDMCs; provincial government officials; development partners, namely, Australian Agency for International Development (AusAID), European Union, Japanese government, Japan International Cooperation Agency (JICA), New Zealand Agency for International Development (NZAID), the World Bank, United Nations agencies, NGOs, and civil society organizations. To design the project components and to assess institutional arrangements of the project that can support the efficient management and sustainability of semiformal safety net models, key government stakeholders from the executing agency and implementing agency in each country, other relevant government agencies, key international and local NGOs, church organizations, and international development partners were consulted. To design the skills development and community awareness component that can effectively serve the needs of rural communities, international and local NGOs working in the communities were consulted. 2. What level of consultation and participation (C&P) is envisaged during the project implementation and monitoring?

Information sharing Consultation Collaborative decision making Empowermentd

3. Was a C&P plan prepared? Yes No

The project will follow a participatory approach throughout the design, implementation, and evaluation of its specific components in each country. The detailed designs of direct support programs for the vulnerable and pilot models of semiformal social safety nets and other protection programs will be developed for each country by engaging national and local governments, NGOs, faith-based groups, traditional community leaders, and beneficiaries themselves. In particular, the development of a semiformal social safety net model will require close consultation and cooperation among the government, local communities, and NGO partners in order to develop a sustainable social protection model that will build on existing informal social safety net programs. This participatory approach will involve (i) analyses of vulnerability assessments to identify target groups and to examine existing social service mechanisms by engaging the government and communities in discussing good practices and gaps in the existing programs; (ii) development of semiformal safety net models and other protection programs in consultation with governments, local communities, and other civil groups; and (iii) pilot-testing of semiformal safety net models in selected communities that assist vulnerable groups.

C. Gender and Development

1. Key Issues Access to health care, education, and opportunities for income generation are key concerns of women in the Pacific, especially for many women living in rural areas or remote outer islands. The global economic crisis and recurrent natural disasters create additional challenges for women, with a potential decline in the availability and affordability of essential social services. The project addresses these concerns with its targeted support programs as well as with pilot models of social safety nets that will protect women from future risks. The associated ADB-financed economic recovery and support programs will provide budget support to maintain or increase government funding for essential social services such as health and education. Among the countries included in the project, human resource indicators are poorer in the Marshall Islands than in the other two countries. In the Marshall Islands, the fertility rate (4.5 children per woman) and teenage pregnancy (more than 80 live births per 1,000 girls aged 15–19) continue to be high; primary education still shows a gender gap and net secondary enrollment ratio for females is less than 50%, with high dropout rates. While females in the Cook Islands and Tonga do better in their school attendance, dropout rates in secondary education are also of great concern. Poor-quality education is another serious issue for most Pacific island countries, as it fails to provide life and practical skills necessary for employment after school. Females in particular lack opportunities to acquire technical and vocational skills, as most available training programs are highly skewed to men. Consequently, among young people (aged 15–24), unemployment is higher for women than for men in most Pacific countries, reaching 67% for women in the Marshall Islands (60% for men). Women’s access to economic resources is considerably more limited than men’s in the Pacific island countries. Very few adult women (aged 14 and over) are engaged in wage employment or other paid work, for instance, less than 30% in the Marshall Islands and Tonga. Only the Cook Islands has more than 40% of adult women in wage employment with a relatively smaller gender gap; yet, female workers in the Cook Islands are mostly concentrated in low-paying jobs of tourism-related industries, which are highly vulnerable to the global economic crisis. And, women’s earnings are generally lower than men’s in wage employment. Increases in rural–urban migration have created a growing problem of unemployment in the urban areas of many Pacific island countries, but cash-earning opportunities are even scarcer in rural areas or outer islands. Women in the region are also disadvantaged in their access to business opportunities because of their limited control over land under customary ownership, restricting their access to formal credit.

60 Appendix 8

With growing migration to urban areas or to overseas for employment opportunities, women are increasingly placed in vulnerable situations, left with the sole responsibility of caring for and sending children to school. The number of separated women or elderly women in rural areas or remote or outer islands of many PMDCs who care for children by relying on income support from migrant workers is increasing. As the global economic crisis has affected this income source, these women face increasing economic hardship and social isolation, with limited access to cash income and with the weakening of traditional protection provided by extended families or communities. The project aims to reduce economic hardship and its future risks for these vulnerable groups, as well as to provide basic social assistance. 2. Key Actions. Measures included in the design to promote gender equality and women’s empowerment—access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process:

Gender plan Other actions/measures No action/measure Summarize key design features of the gender plan or other gender-related actions/measures, including performance targets, monitorable indicators, resource allocation, and implementation arrangements. The activities outlined in component A of the project will focus on improving women’s access to skills training, micro credit, and other income-generating opportunities in the most affected areas of selected countries. In the Cook Islands, caregiver services provided to the elderly and disabled through semiformal safety net models will ensure that many elderly and disabled women who were left behind due to growing migration to urban areas and overseas receive social assistance necessary for their welfare. In the Marshall Islands, community-based cash-for-work programs in coconut plantations will provide cash-earning opportunities through employment, especially for poor and unemployed young women, along with on-the-job training. Microfinance activity in Tonga will support disadvantaged women from poor communities by providing skills training as well as microcredit through an existing microfinance institution. Selected members will have access to various training activities such as business finance, financial literacy, marketing, savings, and other life skills training. Performance targets for outcome are: income support programs such as cash-for-work, microfinance and training program for disadvantaged women (including unemployed and low-income women), and social assistance programs such as care services will have been implemented in at least 3–15 communities in each country by 2013 to address the needs of at least 400 vulnerable women. Performance targets for output are (i) at least 100 elderly and disabled community members will have been provided with caregiver services (at least 50% of beneficiaries are women) in the Cook Islands; (ii) at least 200 disadvantaged people will have been engaged in coconut revitalization activities (at least 30% of beneficiaries are women) in the Marshall Islands; and (iii) at least 300 vulnerable women will have participated in microfinance and training activities in Tonga, with at least 100 successfully demonstrating skills learned from training. The design and monitoring framework for each country’s program (Appendix 1) provides more details about targets.

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Issue

Significant/Limited/

No Impact

Strategy to Address Issue

Plan or Other Measures Included in Design

Involuntary Resettlement

No impact. The project will not involve issues of involuntary resettlement.

Full Plan Short Plan Resettlement

Framework No Action

Indigenous Peoples

No impact. The project will not involve issues of indigenous people within each country.

Plan Other Action Indigenous

Peoples Framework

No Action Labor

Employment opportunities Labor retrenchment Core labor standards

The project endorses the principle of core labor standards when community-based small civil works for cash are implemented within each country.

The contracts for community-based small civil works will stipulate, as a priority, the employment of disadvantaged or vulnerable groups who are qualified to carry out the work. Both men and women will be hired for the work and will be paid equal wages for work of equal value. No child or

Plan Other Action No Action

Appendix 8 61

forced labor will be used for any of these works.

Affordability No impact

Action No Action

Other Risks and/or Vulnerabilities

HIV/AIDS Human trafficking Others(conflict, political

instability, etc), please specify

Potential conflicts may arise in identifying target groups of vulnerable communities and beneficiaries.

Analyses of vulnerability assessments will identify target areas and communities, and eligibility criteria for participants prior to project implementation. The design and implementation of the project in each country will facilitate an active participatory approach by involving key government agencies, NGOs, and community members. The project will also provide capacity development training to local NGOs and other civil groups.

Plan Other Action No Action

IV. MONITORING AND EVALUATION

Are social indicators included in the design and monitoring framework to facilitate monitoring of social development activities and/or social impact during project implementation? □ Yes □ No

a World Health Organization. 2006. Cook Islands Mortality Country Fact Sheet. http://www.who.int/whosis/mort/ profiles/mort_wpro_cok_cookislands.pdf b World Health Organization. 2006. Marshall Islands Mortality Country Fact Sheet. http://www.who.int/whosis/mort/ profiles/mort_wpro_mhl_marshallislands.pdf c World Health Organization. 2006. Tonga Mortality Country Fact Sheet. http://www.who.int/whosis/mort/ profiles/mort_wpro_ton_tonga.pdf d Empowerment is when beneficiaries and other key groups initiate action and take control over development decisions and resources. ADB. 2006. Strengthening Participation for Development Results: Staff Guide to Consultation and Participation. Manila.

62 Appendix 8

SUMMARY GENDER ACTION PLAN

Components Country Proposed Activities and targets

A: Direct Support to the Vulnerable for Socioeconomic Inclusion

Home care/nursing services for the elderly and the disabled provided by NGOs and CSOs

Cook Islands Ensure the beneficiaries of home care/nursing services include both women and men (at least 50% female beneficiaries).

Provide proper gender training to NGOs and community groups who are contracted to deliver basic services for the elderly and people with disabilities.

Ensure contracted services for the elderly or the disabled are tailored to specific needs of women and men.

Replanting coconut trees for employment stimulus, food security, climate change, and sustainable livelihoods

Marshall Islands

Ensure the Implementing Agency incorporates gender concerns into project planning and designs, in consultation with women stakeholders and community representatives.

Ensure female representation (at least 30%) in establishing task teams.

Encourage gender balanced participation by community members in implementation phases of the project (at least 30% female participants).

Provision of skills training and microcredit opportunities for low-income or unemployed women Piloting of social service provision for the vulnerable by NGOs or CSOs

Tonga Ensure training programs address different levels of needs among women in financial literacy, marketing skills, and life skills.

Incorporate health and gender training into weekly life skills training programs.

Provide gender training to NGOs or CSOs; ensure beneficiaries of services reflect gender balance (50% women).

B. Capacity Building for Social Safety Net Policy Development

Public campaigns for welfare reform

Cook Islands

Ensure public events such as community forums reflect gender balance (50% women).

Conduct community events such as focus group discussions with equal representation of women and men.

Incorporate gender needs and strategies into developing appropriate welfare reform options.

Vulnerability assessments and analyses

Marshall Islands

Ensure the vulnerability study using quantitative approaches incorporates gender analysis in identifying vulnerable groups.

Gender analysis should assess the specific nature of poverty and hardship between women and men, and identify major causes of economic vulnerability by gender as well as by other demographic attributes.

Provide gender awareness training to government officials on social protection needs of women and men.

Ensure monitoring and evaluation activities of the pilot model include sex-disaggregated information and data.

Capacity building for implementation and monitoring of social protection programs

Cook Islands, Marshall Islands, and Tonga

Provide gender awareness training to government officials on social protection needs of women and men.

Ensure that training on monitoring and evaluation emphasizes the importance of collecting sex-disaggregated information.

D. Regional Dialogue, Knowledge Dissemination, and Project Management

Regional workshops All three countries

Ensure the workshops present on the participation and experiences of women and men in project components.

Socioeconomic monitoring and project management

Ensure sex-disaggregated data are collected and properly

Appendix 8 63

Project management

analyzed in baseline, midterm, and completion reports.

Provide gender training to PMU staff.

Implementation Arrangements

The project’s GAP will be implemented at each country level by the project management unit (PMU) under the IA and the EA for Tonga with assistance of regional Social Protection Advisor (international) and other national experts in the steering committee. At each country level, the project’s GAP will be incorporated into project planning and programs by the PMU, including gender training programs and establishment of sex-disaggregated indicators for project performance and monitoring. The country project coordinator (in PMU) will be responsible for implementing and monitoring the GAP, with guidance from regional Social Protection Advisor and regional coordinator. The country project coordinator will include reporting on progress of GAP activities in regular progress reports on overall project activities to the ADB and the government. The implementing NGOs will collect sex-disaggregated data, analyze the data, and report the findings in project progress reports.

social protection of the vulnerable in the pacific (cook ......analyzed to ensure effective...

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