the world bank€¦ · maritime investment in climate resilient operations project under the...

Document of

The World Bank FOR OFFICIAL USE ONLY

Report No: PAD2743

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT

IN THE AMOUNT OF SDR 14.50 MILLION (US$20 MILLION EQUIVALENT)

TO

TUVALU

FOR THE

MARITIME INVESTMENT IN CLIMATE RESILIENT OPERATIONS PROJECT

UNDER THE

PACIFIC CLIMATE RESILIENT TRANSPORT PROGRAM, SERIES OF PROJECTS

November 27, 2018

Transport Global Practice

East Asia And Pacific Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective October 31, 2018)

Currency Unit = Australian Dollar (AUD)

AUD 1.41 = US$1

US$1.38213 = SDR1

FISCAL YEAR

January 1 - December 31

Regional Vice President: Victoria Kwakwa

Country Director: Michel Kerf

Senior Global Practice Director: Guangzhe Chen

Practice Manager: Almud Weitz

Task Team Leader(s): Chanin Manopiniwes, Christopher R. Bennett

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank AtoN Aids to Navigation AUD CAT DDO CERC

Australian Dollar Catastrophe Deferred Drawdown Option Contingency Emergency Response Component

DPMS Department of Ports and Marine Services EA Executing Agency ECR External and Corporate Relations (World Bank) EIA Environmental Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FM Financial Management GAD Gender Affairs Department GBV Gender-based Violence GCLS Grievance Complaint Logging System GDP Gross Domestic Product GFDRR Global Facility for Disaster Risk Reduction GIS Geographic Information System GoTv Government of Tuvalu GP Global Practice GRM Grievance Redress Mechanism GRS Grievance Redress Service IA Implementing Agency ICR Implementation Completion and Results Report IDA International Development Association IDP Institutional Development Plan IFR Interim Financial Reports IPF Investment Project Financing IRM Immediate Response Mechanism M&E Monitoring and Evaluation MICRO Maritime Investment in Climate Resilient Operations MCA Multi-Criteria Analysis MCT Ministry of Communication and Transport MFED Ministry of Finance and Economic Development MTCC Maritime Technology Cooperation Centre NGO Non-government Organization NSSD National Strategy for Sustainable Development OC Open Contracting OHS Occupational Health and Safety OM Operations Manual PAD Project Appraisal Document

PAIP Pacific Aviation Investment Program PCRTP Pacific Climate Resilient Transport Program PDO Project Development Objective PIC Pacific Island Country PMU Project Management Unit POM Project Operations Manual PPA PROP

Project Preparation Advance Pacific Regional Oceanscape Program

RPF Regional Partnership Framework SCD Systematic Country Diagnostic SISRI Small Islands States Resilience Initiative SOP Series of Projects SPC Secretariat of the Pacific Community SPD Standard Procurement Documents TA Technical Assistance TAMF Tuvalu Asset Management Framework TCAP Tuvalu Coastal Adaptation Project TFSU Technical and Fiduciary Services Unit TISIP Tuvalu Infrastructure Strategy and Investment Plan TMTI Tuvalu Maritime Training Institute TNCW Tuvalu National Council of Women TOIMIP Tuvalu Outer Island Maritime Infrastructure Project TSSTP Tuvalu Ship to Shore Transport Project TVAIP Tuvalu Aviation Project UN United Nations UNDP United Nations Development Program UNICEF United Nations International Children’s Emergency Fund USD/US$ United States Dollar VA Vulnerability Assessment VAC Violence Against Children

The World Bank Maritime Investment in Climate Resilient Operations (P161540)

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BASIC INFORMATION BASIC_INFO_TABLE

Country(ies) Project Name

Tuvalu Maritime Investment in Climate Resilient Operations

Project ID Financing Instrument Environmental Assessment Category

P161540 Investment Project Financing

B-Partial Assessment

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC)

[✓] Series of Projects (SOP) [✓] Fragile State(s)

[ ] Disbursement-linked Indicators (DLIs) [✓] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)

Expected Approval Date Expected Closing Date

18-Dec-2018 31-Jan-2024

Bank/IFC Collaboration

No

Proposed Development Objective(s)

To improve the climate resilience of Nanumaga harbor and Funafuti port, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency.

Components


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Component Name Cost (US$, millions)

Component 1: Sectoral and Spatial Planning Tools 0.05

Component 2: Climate Resilient Maritime Infrastructure Solutions 16.50

Component 3: Strengthening the Enabling Envrionment 3.45

Component 4: Contingency Emergency Response 0.00

Organizations

Borrower: Tuvalu

Implementing Agency: Ministry of Finance and Economic Development (MFED) Ministry of Communications and Transport

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 20.00

Total Financing 20.00

of which IBRD/IDA 20.00

Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing

International Development Association (IDA) 20.00

IDA Grant 20.00

IDA Resources (in US$, Millions)

Credit Amount Grant Amount Total Amount

National PBA 0.00 20.00 20.00

Total 0.00 20.00 20.00

Expected Disbursements (in US$, Millions)


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WB Fiscal Year 2019 2020 2021 2022 2023 2024

Annual 1.00 7.50 7.50 3.00 0.98 0.02

Cumulative 1.00 8.50 16.00 19.00 19.98 20.00

INSTITUTIONAL DATA

Practice Area (Lead) Contributing Practice Areas

Transport & Digital Development

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag

Does the project plan to undertake any of the following?

a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF

Yes

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment

Yes

c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance Moderate

2. Macroeconomic Low

3. Sector Strategies and Policies Low

4. Technical Design of Project or Program Substantial

5. Institutional Capacity for Implementation and Sustainability Moderate

6. Fiduciary Substantial


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7. Environment and Social High

8. Stakeholders Substantial

9. Other

10. Overall Substantial

COMPLIANCE

Policy

Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Performance Standards for Private Sector Activities OP/BP 4.03 ✔

Natural Habitats OP/BP 4.04 ✔

Forests OP/BP 4.36 ✔

Pest Management OP 4.09 ✔

Physical Cultural Resources OP/BP 4.11 ✔

Indigenous Peoples OP/BP 4.10 ✔

Involuntary Resettlement OP/BP 4.12 ✔

Safety of Dams OP/BP 4.37 ✔

Projects on International Waterways OP/BP 7.50 ✔

Projects in Disputed Areas OP/BP 7.60 ✔

Legal Covenants

Sections and Description Section I.A.1 of Schedule 2 to the Financing Agreement

The Recipient shall maintain, until the Closing Date, a Joint Task Force, with a mandate, composition and resources

satisfactory to the Association.


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Sections and Description Section I.A.2 of Schedule 2 to the Financing Agreement

The Recipient shall maintain, until the Closing Date, a Project Management Unit within the Ministry of

Communications and Transport, with a mandate, composition and resources satisfactory to the Association.

Sections and Description Section I.B.1 of Schedule 2 to the Financing Agreement

The Recipient shall ensure that the Project is carried out in accordance with the Project Operations Manual.

Sections and Description Section I.C of Schedule 2 to the Financing Agreement

The Recipient shall prepare and furnish to the Association, by not later than September 30 of each year during the

implementation of the Project (or such later interval or date as the Association may agree), for the Association’s

review and no-objection, an Annual Work Plan and Budget containing all eligible Project activities and expenditures

proposed to be included in the Project for the following fiscal year of the Recipient, including a specification of the

source or sources of financing for all eligible expenditures, and environmental and social safeguard measures taken

or planned to be taken. The Recipient shall ensure that the Project is implemented in accordance with the Annual

Work Plans and Budgets accepted by the Association for the Recipient’s respective fiscal year.

Sections and Description Section I.D of Schedule 2 to the Financing Agreement

The Recipient shall ensure that the Project is carried out with due regard to appropriate health, safety, social, and

environmental standards and practices, and in accordance with the Safeguards Instruments.

Sections and Description Section II.1 of Schedule 2 to the Financing Agreement

The Recipient shall furnish to the Association each Project Report not later than forty-five (45) days after the end of

each calendar semester, covering the calendar semester.

Sections and Description Section II.2 of Schedule 2 to the Financing Agreement

The Recipient shall carry out, jointly with the Association, not later than three (3) years after the Effective Date, or

such other period as may be agreed with the Association, a mid-term review of the Project.

Conditions

Type Description Disbursement Section I.E.2 and section III.B of Schedule 2 to the Financing Agreement


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No withdrawal shall be made for Emergency Expenditures under Category (3), unless and until the Association is satisfied that: (a) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in the Emergency Response Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (b) the Recipient has ensured the preparation and disclosure of all safeguards instruments as may be required for said activities in accordance with the provisions of Section I.D.1 of this Schedule 2 and the CERC POM, the Association has approved all such instruments, and the Recipient has ensured the implementation of any actions which are required to be taken under said instruments; (c) the Recipient has ensured that the entities in charge of coordinating and implementing the Emergency Response Part have adequate staff and resources, in accordance with the provisions of the CERC POM, for the purposes of said activities; and (d) the Recipient has adopted and maintained the CERC POM, in form and substance acceptable to the Association, and the provisions of the CERC POM remain, or have been updated in accordance with the provisions of this Section I.E.2 so as to be, appropriate for the inclusion and implementation of the Emergency Response Part.


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TUVALU

TUVALU MARITIME INVESTMENT IN CLIMATE RESILIENT OPERATIONS

TABLE OF CONTENTS

I. STRATEGIC CONTEXT ...................................................................................................... 9

A. Country Context ................................................................................................................. 9

B. Sectoral and Institutional Context ................................................................................... 10

C. Higher Level Objectives to which the Project Contributes ............................................. 12

II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................ 13

A. PDO ................................................................................................................................... 13

B. Project Beneficiaries ......................................................................................................... 13

C. PDO-Level Results Indicators ........................................................................................... 15

III. PROJECT DESCRIPTION .................................................................................................. 17

A. Project Components ......................................................................................................... 17

B. Project Cost and Financing ............................................................................................... 18

C. Lessons Learned and Reflected in the Project Design ..................................................... 18

IV. IMPLEMENTATION ........................................................................................................ 20

A. Institutional and Implementation Arrangements ........................................................... 20

B. Results Monitoring and Evaluation ................................................................................. 21

C. Sustainability .................................................................................................................... 21

D. Role of Partners ................................................................................................................ 22

E. Gender ............................................................................................................................... 24

V. KEY RISKS ..................................................................................................................... 26

A. Overall Risk Rating and Explanation of Key Risks ........................................................... 26

VI. APPRAISAL SUMMARY .................................................................................................. 28

A. Economic and Financial Analysis ..................................................................................... 28

B. Technical ........................................................................................................................... 29

C. Financial Management ..................................................................................................... 32

D. Procurement ..................................................................................................................... 32

E. Social (including Safeguards) ............................................................................................ 33

F. Environment (including Safeguards) ................................................................................ 35


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G. World Bank Grievance Redress ....................................................................................... 37

VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 39

ANNEX 1: DETAILED PROJECT DESCRIPTION ......................................................................... 48

ANNEX 2: IMPLEMENTATION ARRANGEMENTS .................................................................... 53

ANNEX 3: ECONOMIC ANALYSIS ........................................................................................... 60

ANNEX 4: GENDER BASED VIOLENCE .................................................................................... 62

ANNEX 5: IMPLEMENTATION SUPPORT PLAN ...................................................................... 65

ANNEX 6: SERIES OF PROJECTS ............................................................................................. 68

ANNEX 7: CONTINGENT EMERGENCY RESPONSE COMPONENT ............................................ 71

ANNEX 8: MAP OF TUVALU WITH PROJECT SITES ................................................................. 73


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I. STRATEGIC CONTEXT

A. Country Context 1. The Pacific region is widely recognized as being heavily exposed to natural hazards including floods,

droughts, tropical cyclones, earthquakes, volcanic eruptions, and tsunamis. The societies and economies of Pacific Island Countries (PICs) are particularly vulnerable to hazard and climate change related impacts as a result of their geographical remoteness, dispersion and isolation, distance from markets and vulnerability to external economic shocks, social challenges and the degradation of natural resources. Vulnerability to extreme climate events is also increasing due to population growth and migration (internal and external), poor coastal development and land use planning, unplanned urban growth, and water and ecosystem degradation including pollution of sub-surface and coastal waters.

2. Among the PICs, Tuvalu is regarded as one of the most vulnerable countries. Located approximately 1,100 kilometers north of Fiji, Tuvalu consists of nine islands, with a total land area of around 26 km2. Of the nine islands, three are reef islands (Nanumaga, Niutao and Niulakita) and six are atolls (Funafuti, Nanumea, Vaitupu, Nui, Nukulaelae and Nukufetau). Few of the islands are more than 800 meters wide and most of the land area is low-lying with a maximum elevation of about 4.5 meters. These geographical features have considerably exposed Tuvalu to the impacts of climate change. Storm surges, king tides and floods, which are common occurrences, and which have intensified due to changes in weather patterns, as well as sea level rise and more extreme weather events such as tropical storms and cyclones have resulted in significant damage to the islands and their inhabitants in the past. The devastating Tropical Cyclone Pam, for example, which ravaged the region in early 2015, resulted in large scale damage of houses, agriculture and livestock.1 Climate change and disasters are known to have disproportionate impacts on women and girls, including by exacerbating pre-existing levels of Gender-Based Violence (GBV) and Violence against Children (VAC).2

3. Tuvalu’s economy is highly dependent on remittances and the country is considered one of the most

economically and environmentally vulnerable in the world. In 2016, Tuvalu’s gross domestic product (GDP) was around US$36.6 million. Remittances received accounted for about 11.9 percent of GDP in 2016.3 Employment is heavily reliant on the public sector with an estimated 65 percent of the population working in Government positions.4 The primary economic activities are fishing and subsistence farming, with copra as the main export. Outside of fishing, there is little other industry available with the exception of small-scale processing of timber (sourced locally or from New Zealand), handicrafts, and small numbers of Tuvaluans working in the tourism industry. Women are under-represented in the formal economy and face a variety of barriers in accessing employment opportunities.5

1 According to the Intergovernmental Panel on Climate Change, even small increases in sea level would have "severely negative effects on atolls and low islands" (IPCC, 2014: Climate Change 2014: Synthesis Report). Contribution of Working Groups I, II and III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, R.K. Pachauri and L.A. Meyer (eds)] IPCC, Geneva, Switzerland) 2 Climate Change, Disasters and Gender-Based Violence in the Pacific, UN Women Fiji Multi-Country Office. 3 https://countryeconomy.com/demography/migration/remittance/tuvalu 4 http://www.pacmas.org/about/countries/tuvalu/ 5 Gender Based Violence in the Pacific: Pacific Island Countries. World Bank, October 2016.


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4. Roughly half of the country’s population of some 10,500 lives in the capital Funafuti with the remaining population distributed across the other eight islands and atolls, each with one or two villages. Since 2003, populations on the outer islands have been migrating to Funafuti due to the lack of economic opportunity and limited social services. This has resulted in overcrowding in Funafuti with a density estimated at more than 2,200 people per square kilometer,6 putting strain on the already limited natural resources and basic services. The GoTv is therefore actively trying to improve infrastructure on the outer islands to incentivize the return of local populations to the outer islands, which will help to avoid overcrowding in Funafuti.

5. The outer island of Nanumaga, located approximately 400 kilometers from the capital of Funafuti, has been identified by the Government of Tuvalu as a key location for improved access infrastructure. Nanumaga is a single reef island (301 hectares) with a population of about 500 spread between two main villages, Tonga and Tokelau.7 The island is governed by its own Falekaupule, a traditional assembly of elders and community leaders that acts as the local government on each island. The Falekaupule fulfils many of the local government functions including economic management, town or village planning, land administration, public health and education. Nanumaga has both pre-primary and primary schools but relies on students being sent by ship to Vaitupu (292 km away) for their secondary schooling. As with other islands, agriculture is also limited in Nanumaga due to the geographic makeup of the island and the climatic conditions. Whilst there are a number of ongoing initiatives by the Agriculture Department focused on encouraging vegetable gardening, reliance on food being shipped from Funafuti is still high. This makes reliable and adequate maritime access and associated infrastructure critical for the community.

B. Sectoral and Institutional Context

6. The remoteness of Tuvalu and its outer island and the infertile soil make inhabitants heavily reliant on shipping operations. Most foodstuffs (excluding local foods, such as fish, coconuts and some fruits), all building materials, and manufactured products, as well as critical emergency relief goods after natural disasters are imported to Tuvalu. Currently cargo, including food items, construction materials and fuel is shipped into Tuvalu from Fiji approximately every 23 days and are then distributed among the outer islands with inter-island vessels as there is no domestic aviation service. About 43 percent of the population live on the outer islands, and therefore rely on the effectiveness and efficiency of these shipping operations. Domestic shipping connectivity is also critical for the populations on outer islands to access secondary and tertiary education and access to hospital services which are only available in Funafuti or abroad.

7. The inter-island vessels visit each island group with an average frequency of about once every one-to-three weeks depending on the length of the route. A full circuit of the central island route takes about one week to complete, while services to the northern and southern islands occur once every two to three weeks. These infrequent services are exacerbated by irregular schedules, which often change to accommodate requests to pick up sick or injured people on short notice. A trip covering all the northern islands and Vaitupu is undertaken once every three months to allow parents to send school and food supplies to their children attending the secondary school in Vaitupu.

8. Funafuti is the only port for all overseas shipments from the region, and the hub for all domestic shipping.

6 http://prdrse4all.spc.int/system/files/census_2012_preliminary_report.pdf 7 2012 census.


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It consists of two concrete wharfs (L-shaped jetties), an unpaved cargo handling area and two large storage facilities. International vessels berthing at Funafuti Port include cargo ships (both regular and irregular), ocean-going fishing vessels, and tourist ships, the numbers of which vary greatly from month to month.8 The Department of Ports and Marine Services (DPMS) only recently initiated the systematic electronic collection of data on international calls at the port. Data from the early months of 2018 shows that in addition to the monthly call of an international container ship and a small petrochemical vessel from Fiji, the port received 117 calls by foreign fishing vessels (both refrigerated Reefers (Carriers) and fishing vessels) in the first two months of 2018. 9 In addition, the most recent data available for domestic traffic from 2014, shows that the interisland vessels call at Funafuti port on average 1.4 times a month.

9. The main port is largely unpaved which often causes damage to the cargo handling equipment resulting in frequent breakdowns. Repairs mostly have to be undertaken by technicians from abroad since there are no adequate facilities available to undertake maintenance of cargo handling equipment as well as smaller size boats. According to DPMS, the cost for repairs and the associated costs of delays for the period of 2013 – 2018 amount to about US$5.7 million. The delays can be significant given the remoteness of Tuvalu and the need to import all spare parts. In addition, the container yard lacks efficient organization including the storage of empty containers on site which leads to limited space for incoming cargo and traffic congestion in and around the port.

10. Maritime infrastructure on the outer islands is very limited. Most reef islands such as Nanumaga and Niutao simply have a narrow access channel and a small turning basin carved into the reef, and no landside infrastructure. Due to their large size, inter-island vessels can therefore not directly access most outer islands. Inter-island vessels must moor offshore, and passengers and cargo are transferred onto smaller workboats (which are brought onboard the larger inter-island vessel) and transited to shore. This includes passage through deep water up to the entrances of the reef channel or lagoon. This process must be undertaken across a range of tidal levels, weather and sea conditions, channel widths, depths and currents, and often at night. The lack of any hard access infrastructure such as a jetty or wharf has also resulted in lengthy manual un-loading and offloading where, depending on the tide, stevedores have to carry goods across the reef flat in the water. This process often results in damage or loss of cargo, which is particularly critical for the distribution of emergency goods following natural disasters. Furthermore, the off-loading of passengers, particularly elderly and disabled, is difficult with people having to be carried across the reef by volunteers. Cargo is manually carried across the reef flat to and from the inter-island vessel workboats.

11. There is a lack of technical capacity and financial resources to manage and oversee the port and shipping operations. The maritime sector in Tuvalu is overseen by DPMS, which is located within the Ministry of Communication and Transport (MCT). DPMS is responsible for administrative matters, management and operations of the ports and management of domestic shipping vessels, including maintenance responsibilities. DPMS is also responsible for technical and policy advice in the sector and certification of the Tuvalu Maritime Training Institute (TMTI). The unit comprises 62 staff, including two technical staff, 10 crane operators and 50 vessel crew members for the three state-owned domestic vessels.

12. DPMS’ budget is limited by the available national fiscal space amidst competing demands. Budgetary over-expenditure, on account of high vessel operating costs, is the norm. The two technical staff are only able to

8 To date, statistics for calls at the port have not been collated systematically. However, with support from the South Pacific Council, a new Excel-based format was introduced recently to register call data more accurately. 9 Statistics provided by the Department of Ports and Maritime Services.


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address the most pressing issues, which leaves little time to develop strategic approaches for the sector. It is important to enable DPMS to move from a reactive to a more proactive approach to ensure a resilient maritime sector. Streamlining climate resilience within MCT, and particularly DPMS, will require considerable capacity building. Tuvalu has a limited number of private shipping agents and freight forwarders; however, they are reported to have good communications and operational relations with the government.

C. Higher Level Objectives to which the Project Contributes 13. The World Bank Group’s Regional Partnership Framework (RPF) Report for nine small Pacific Island states

FY2017-22 (Report No. 120479) was discussed in February 2017. The RPF identified the key focus areas for the PICs as: (i) fully exploiting the limited set of economic opportunities; (ii) enhancing access to employment opportunities; (iii) protecting incomes and livelihoods; and, (iv) strengthening the enablers of growth and opportunities (macro-economic management, infrastructure and addressing knowledge gaps). Given the fragility of the Pacific region, the RPF particularly focuses on the need for interventions that will strengthen preparedness and resilience to natural disasters and climate change. The RPF also highlights the key role that the maritime sector and connectivity play in trade in basic goods in the nine PICs, and that improvements to maritime infrastructure and the regulatory environment are key for sustained growth.

14. The proposed intervention is also complementary to other ongoing and planned operations in Tuvalu, such as the ongoing Pacific Regional Oceanscape Program (PROP), which focuses on the challenges of managing a large dispersed maritime area and has a significant coastal management component, and the proposed Catastrophe Deferred Drawdown Option (Cat DDO) to strengthen the disaster responsiveness of Tuvalu.

15. In addition, the scope and objective of MICRO is in line with the GoTv’s development objectives as defined in the National Strategy for Sustainable Development 2016-2020 (NSSD), which recognizes the need for outer island development and the need for improved quality, frequency, and cost-effectiveness of transport services to the outer islands.

16. MICRO will form part of the Pacific Climate Resilient Transport Program (PCRTP) Series of Projects (SOP). The PCRTP SOP is based on the premises of the Small Islands States Resilience Initiative (SISRI) that draws on the experiences from the World Bank and others in supporting climate and disaster resilience in small island states.10 PCRTP follows a four-pillared strategic framework for enhancing transport resilience designed in the Transport Global Practices’ (GP) Series Note on Enhancing Road Resilience in Pacific Island Countries,11 which was subsequently incorporated into the GP’s flagship report on Moving Toward Climate Resilient Transport12 that was delivered at COP21.

17. Tuvalu’s geographical features that have exposed the country to the impacts of climate change, as well as the occurrence of extreme weather events means that it is a priority country for the PCRTP SOP. Through adopting the four-pillared framework of the SOP, MICRO includes a variety of activities that will help to systematically strengthen climate resilience within Tuvalu through a program of activities including: (i) sectoral and spatial planning tools; (ii) climate resilient infrastructure; (iii) strengthening the enabling

10 www.gfdrr.org/small-island-states-resilience-initiative 11 Enhancing Road Resilience in Pacific Island Countries, World Bank Assisting Adaptation to Climate Change. World Bank, 2015. (Report No. 102711) 12 Moving Toward Climate-Resilient Transport, The World Bank’s Experience from Building Adaptation into Programs. World Bank, 2015. (Report No. 102406)


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environment; and, (iv) contingent emergency response.

18. MICRO is grounded in PCRTP and supports the overarching development objective to: (i) support the Recipients in improving the resilience of their transport sector; and, (ii) in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. The value of the programmatic approach is that it will support the systematic improvement of resilience across the countries included within the program to address commonly shared issues. In addition, the program offers a multi-pronged approach to support Tuvalu through considering risks in a holistic manner, through the integration of resilient transport interventions into decision‐making and implementation. It is proposed that each project will have standalone Project Development Objective (PDO) and intermediate indicators; however, program‐level indicators will be included to highlight the contribution of each project towards the overall program through measuring instances where activities have been undertaken in each project that are aligned with the pillar approach. The program‐level indicators proposed are: (i) identified planning tools being used to improve climate resilience of roads; (ii) identified climate resilient investments constructed and in use; and, (iii) identified enabling environment solutions implemented.

19. Under Phase 1 of the PCRTP, the Samoa Climate Resilient Transport Project was the first project in the series, with the Tonga Climate Resilient Transport Project following. MICRO will be the third project in the series. The total cost of PCRTP is estimated to amount to US$81.97 million equivalent over five years including US$81.77 million in IDA grants and US$200,000 in a Global Facility for Disaster Reduction and Recovery (GFDRR) grant. Each of the self‐standing country projects will finance a different group of eligible beneficiaries, and each is expected to last approximately five or six years. Other phases could potentially follow in the future and may overlap with Phase 1.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO

20. The PDO is to “Improve the climate resilience of Nanumaga harbor and Funaufti port, and in the event

of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency.”

B. Project Beneficiaries

21. The principal beneficiaries include the population of Tuvalu, especially: (i) users of shipping services in Nanumaga and Funafuti; (ii) vulnerable populations in Nanumaga, Vaitupu, Nui and Nanumea; (iii) women in Tuvalu; and, (iv) government officials. Specifically, the project will benefit in the following ways:

(i) Users of shipping services in Nanumaga and Funafuti. MICRO will focus on improving maritime

access and associated infrastructure (including the approach channel, turning basins, breakwaters) in Nanumaga as well as improvements to operations at Funafuti port. All users of shipping services in Nanumaga and Funafuti will benefit from the improvements.


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(ii) Vulnerable populations in Nanumaga, Vaitupu, Nui and Nanumea. Through the utilization of sectoral and spatial planning tools, it is additionally envisaged that wider reaching benefits to the outer islands will be achieved. Currently there are no streamlined or dedicated strategies or systems to address the requirements of persons with disabilities or the elderly during and following disaster events in Tuvalu. It is proposed that the project will include geographic information system (GIS) mapping of persons with disabilities and elderly people in a national database to help build socio-economic resilience through improving the timeliness and quality of recovery following a disaster event. The mapping will initially be trialed in Nanumaga, Vaitupu, Nui, and Nanumea, which are the four outer islands with the highest identified levels of disability;13 however, it may be scaled up during the project (for more detail refer to Annex 1).

(iii) Women. The World Bank Gender Strategy (FY16 – FY23)14 and the Transport GP Note (FY17 – FY20)15

seek to enhance women’s agency and reduce gender gaps. MICRO supports women through its GBV, VAC and trafficking strategy, as well as through enhancing access to economic opportunities (refer to Section IV).

(iv) Government officials. The project includes capacity building activities for officials from DPMS and the Ministry of Lands.

22. Table 1 provides an estimate of the number of beneficiaries associated with project activities included within

MICRO, which includes more than half the total population.

Table 1. Overview of Project Beneficiaries.

Description Location Estimated Number of Beneficiaries

Users of shipping services Nanumaga 500 (100% of Nanumaga pop.)

Users of shipping services Funafuti 6,000 (100% of Funafuti pop.)

Vulnerable populations Nanumaga, Vaitupu, Nui and Nanumea

14816

Access to economic opportunities for women

Tuvalu 5

Government officials Funafuti 3

13 Tuvalu Study on People with Disability, 2018. https://pacificwomen.org/wp-content/uploads/2018/08/Tuvalu-Study-on-People-With-Disability-Full-Report-July-2018.pdf 14 World Bank Group Gender Strategy (FY16-23): Gender Equality, Poverty Reduction and Inclusive Growth. World Bank, 2015. 15 Transport GP’s Business Plan for FY17-20 to support the implementation of the WBG Gender Strategy. 16 Estimated number of beneficiaries based on the number of persons with disabilities for the locations identified. Tuvalu Study on People with Disability, 2018. https://pacificwomen.org/wp-content/uploads/2018/08/Tuvalu-Study-on-People-With-Disability-Full-Report-July-2018.pdf


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C. PDO-Level Results Indicators

23. To monitor progress toward the PDO, the following set of indicators have been identified: (a) Climate resilient investments on Nanumaga constructed and operational (percentage). (b) Reduction in cargo damage at Nanumaga (percentage). (c) Climate resilient investments on Funafuti constructed and operational (percentage). (d) Improved operations at Funafuti port (amount, USD).

24. To develop the results chain for MICRO a Theory of Change approach was adopted and is illustrated in

Figure 1 below.


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Figure 1. MICRO Results Chain


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III. PROJECT DESCRIPTION

A. Project Components

25. MICRO consists of the following four components that incorporate the four pillars of PCRTP SOP (for more

detail on project components refer to Annex 1):

(i) Component 1: Sectoral and Spatial Planning Tools (US$0.05 million). This component finances spatial planning and risk-based tools for infrastructure investments to improve connectivity and climate resilience. This component will finance:

(a) GIS-based mapping, data collection, and data protection activities to collect and record the

location and needs of vulnerable populations to improve preparedness and post-disaster response for persons with disabilities and the elderly in the outer islands, including pilot testing on four islands.

(b) Health outreach campaign focusing on food and nutrition, which aims to improve community resilience including the provision of support to the community to understand and manage the issues associated with a sustainable food supply.

(ii) Component 2: Climate Resilient Maritime Infrastructure Solutions (US$16.50 million). This

component involves the design and construction of identified priority maritime access and utility infrastructure to improve the resilience of the maritime sector to climate-related hazards and/or extreme events. The following sub-components are proposed:

(a) Climate resilient and efficient maritime access infrastructure on Nanumaga; and, (b) Climate resilient port infrastructure and operational equipment for Funafuti Port.

(iii) Component 3: Strengthening the Enabling Environment (US$3.45 million). This component will

provide funding to support institutional and regulatory reforms, including measures to strengthen local capacity and to increase the sustainability of climate resilient maritime sector investments. Proposed sub-components include:

(a) Providing Technical Assistance to MCT to:

• Design infrastructure required for the project on Nanumaga and Funafuti.

• Supervise civil works on Nanumaga and Funafuti.

• Support port operations and improve safety oversight.

• Prepare and implement a GBV, VAC and trafficking action plan. (b) Providing Technical and Operational Assistance to MCT for:

• Project implementation and management.

• Operating expenses.


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(iv) Component 4: Contingency Emergency Response (US$0.00 million). This component is designed to provide swift response in the event of an Eligible Crisis or Emergency,17 by enabling the Government to request the Bank to re-allocate project funds to support emergency response and reconstruction. Given the tendency of crises and emergencies to heighten risks of GBV and VAC for women and girls, such emergency response and reconstruction support should take into consideration to include GBV and VAC service provision, as needed.

B. Project Cost and Financing

26. The project will be financed by a SDR 14.50 million (US$20.0 million equivalent) national International Development Association (IDA) grant. A Project Preparation Advance (PPA) of US$1.2 million has been secured to prepare the necessary economic, environmental and design studies for MICRO. Funding for preparatory works were complemented by a US$200,000 grant from GFDRR, which was utilized to conduct a targeted multi-hazard Vulnerability Assessment to identify potential design and locations for the proposed infrastructure investments on Nanumaga. Table 2 outlines the estimated cost per component.

Table 2. Project Costs and Financing18

Project Components Project cost (US$ million equivalent)

IDA Financing (US$ million equivalent)

% total IDA Funds

Component 1 0.05 0.05 0.25

Component 2 16.50 16.50 82.5

Component 3 3.45 3.45 17.25

Component 4 0.00 0.00 0.00

Total Costs 20.00 20.00 100.00

Total IDA Financing Required

20.0019

C. Lessons Learned and Reflected in the Project Design

27. The World Bank has already gained considerable experience in PICs in strengthening transport sector infrastructure and in responding to, and building resilience against, natural disasters. This includes projects on climate resilient transport infrastructure, planning and spatial tools and capacity building in Samoa,

17 Defined as “an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact associated with natural or man-made crises or disasters”, Paragraph 12, Bank Policy: Investment Project Financing. 18 Total project costs exclude the GFDRR US$0.20 million grant. 19 Total IDA financing is inclusive of the US$1.2 million equivalent PPA.


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Kiribati and Tonga.20 The Bank also has prior experience in the transport sector in Tuvalu through the Tuvalu Aviation Investment Project (TvAIP), approved in 2011, which finances airport and associated infrastructure (access roads), and also includes capacity building for the Civil Aviation Division and other associated line Ministries (e.g. Ministry of Public Works). Through TvAIP, the Bank has established a good working relationship with MCT, the proposed implementing agency (IA) for MICRO. Furthermore, the experiences from TvAIP have highlighted the need for a simple project design to reduce the demand on GoTv staff. This has been reflected in the project design of MICRO by limiting the number of activities and the creation of a strong Project Management Unit (PMU).

28. Institutional Capacity for Implementation and Sustainability. Capacity constraints are typical in the case of Small Island States. MCT has a large mandate but limited number of staff and resources to implement these (e.g. only two technical staff for all maritime activities). This presents a risk that could impede the implementation of the project and result in delays. Given this thin technical capacity in country, project implementation resources will be shared between donor partners, including the establishment of the joint ADB-IDA PMU to provide the necessary project implementation support.

29. A US$0.2 million GFDRR grant was secured to carry out a Vulnerability Assessment21 to inform potential maritime infrastructure on Nanumaga. Bathymetric (submarine topographic), wave action and sedimentation flow data were collated and the impacts of, and resilience to, local environmental conditions on different locations and designs/layouts were assessed. Design options ranged from limited interventions in the existing channel including minor dredging without infrastructure works to large-scale interventions allowing direct access for the Nivaga III (about 60 meters length). The report was finalized in December 2017, with the findings indicating that a smaller harbor for workboats would most likely be the most suitable option. Developing new facilities for larger vessels to berth are not considered economically or environmentally feasible at this stage. The consultants also assessed the suitability of locating the various design options at different sections of the island. Within each section there are different locations that would be more or less optimal but the consultants confirmed that based on available information the differences within each section would be small. According to the assessment, for the preferred small-scale design option, the location of the facility could either be at the site of the existing access channel or a new site on the opposite side of the island. Given the proximity of the existing channel to the community and the environmental impact of a new construction that would require access infrastructure at an entirely greenfield site, using the existing location was deemed to likely be a more suitable option. Following consultations, the community of Nanumaga conveyed that they would like to proceed with the design of a small-scale workboat harbor at the location of the existing channel.

30. The project design is also informed by the Asian Development Bank (ADB)-financed Tuvalu Outer Island Maritime Infrastructure Project (TOIMIP). TOIMIP is financing the construction of a harbor at Nukulaelae and Nuitao and will also install a flex-mat (flexible concrete block mattress) at Nanumaga as a temporary arrangement until the proposed works to be financed under MICRO are implemented. In addition, the ADB is preparing a Transport Sector Master Plan, which will look at possible options for improving inter-island

20 Examples of climate resilient transport projects include Samoa Enhancing the Climate Resilience of the West Coast Road Project (P126504), Kiribati Road Rehabilitation Project (P122151) and Tonga Cyclone Ian Reconstruction and Climate Resilience Project (P150113). 21 Exploratory study for the development of ship landing facilities at Niutao and Nanumaga (Tuvalu). Government of Tuvalu, October 2017.


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connectivity through new vessel technologies and improved infrastructure, as well as capacity building focused on improving maintenance and asset management capabilities within the GoTv.

31. MICRO will build upon the work already undertaken and planned by the ADB, to minimize potential redundancies and enhance synergies where possible. One example includes the utilization and adaptation of the existing ADB arrangements to form a joint ADB-IDA PMU to help implement activities under MICRO. This would complement the existing arrangements established under TOIMIP, and add in additional shared support for project management, technical oversight, procurement, and safeguards (for more details on implementation arrangements refer to Annex 2). Furthermore, the design of the project activities has been focused on a few priority investments that seek to enhance climate resilience to best ensure that the project can be delivered efficiently and effectively.

32. Under the ADB-prepared TOIMIP project, two key activities are also being undertaken to improve the sustainability of the maritime sector in Tuvalu – the Master Plan for Maritime Transport and the Institutional Strengthening Plan – which have been used to inform MICRO and identify gaps where technical assistance may be required.

33. The World Bank has gained significant experience in integrating GBV and VAC prevention and response measures in transport projects through the Pacific Aviation Investment Program in Tuvalu, Vanuatu and Samoa. Lessons learned from this program, including the development of codes of conduct, training materials and monitoring and evaluation tools, have been used to inform the MICRO GBV, VAC and trafficking strategy.

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements

34. The Executing Agency is the Ministry of Finance and Economic Development (MFED), while the IA for all components is MCT. Other stakeholders include DPMS, which is responsible for administrative matters, management and operations of ports and ships as well as technical and policy advice in the sector.

35. Under the ADB-financed TOIMIP, a PMU was established under MCT that is staffed with national consultants in project management and financial management roles. The Program Coordinator within the PMU provides high-level oversight for both the ADB and IDA projects. A Memorandum of Understanding was signed in May 2018 between MCT and the ADB to increase the PMU’s mandate to cover both the implementation of TOIMP and MICRO through the establishment of a joint PMU. Additional staff in project management, procurement and safeguards will be financed by MICRO to complement the existing PMU staff (see Figure 2.1).

36. In addition, a Joint Task Force was established in February 2015 to oversee the preparation and implementation of TOIMIP, however it also now provides oversight to MICRO. The Joint Task Force representatives include the permanent secretaries from the Ministry of Home Affairs and Rural Development (chair), Ministry of Finance and Economic Development, Ministry of Public Utilities, Ministry of Communication and Transport, and the Director from the Department of Environment within the Ministry of


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Natural Resources, Energy and Environment.

37. Under the PAIP, of which TvAIP is part, a regional implementation support unit, the Technical and Fiduciary Services Unit (TFSU), was established. TFSU supports individual projects under PAIP by providing technical guidance to the project and support for procurement and other fiduciary activities. Given the current arrangement already established with TFSU under TvAIP and the stretched technical capacity in country, it was deemed prudent that TFSU provide support with the preparation of MICRO with the procurement and safeguards activities financed by the Project Preparation Advance (PPA) on an exceptional basis. The TFSU will not provide support for the implementation of the Project, as this support is to be provided by the joint ADB-IDA PMU, however may be called upon should the safeguard documentation require updating.

38. A draft Project Operations Manual (POM)22 has been developed for the project, which outlines the roles and responsibilities for project implementation including procurement, financial management, monitoring and evaluation, contract management, safeguards procedures and scheduling. The final POM will be adopted and implemented by the IA. A detailed description of the implementation arrangements can be found in Annex 2.

B. Results Monitoring and Evaluation 39. Project monitoring and evaluation (M&E) will be conducted on two levels: (i) periodic monitoring through bi-

annual reports that track progress in terms of distribution of inputs, disbursement of funds, and achievement of targeted indicators as outlined in the Results Framework (Section VII) over the previous 6 months; and, (ii) project evaluation to measure outcomes achieved against baseline indicators (See Annex 3). The Recipient shall furnish to the Association each bi-annual report not later than 45 days after the end of each reporting period, covering that reporting period. The key instrument for evaluating MICRO are the indicators identified within the Results Framework that tracks several key resilience metrics, as well as indicators to capture the gender dimension and citizen engagement.

40. MCT will be responsible for the M&E of the project outcomes against agreed indicators as presented in the Results Framework and Monitoring section, including the provision of timely monitoring reports with operational data. Through on-going experience with TvAIP, Tuvalu has demonstrated the capacity to meet the M&E requirements for this project.

C. Sustainability

41. Donor partner collaboration within the maritime sector will help to ensure sustainability. Collaboration between donors is key to not only ensure that resources are utilized most efficiently but to also allow for the individual and collective project benefits to be maximized. Through ongoing relationships with partners in the maritime sector, this will help to minimize the duplication of efforts as well as help to minimize any potential negative impacts associated with fragmented approaches within the maritime sector.

22 Project Operation Manual (POM). Maritime Investment and Climate Resilient Operations Project, Tuvalu. Ministry of Communications and Transport. September 25, 2018.


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42. Funafuti Port energy efficiency activities. An energy audit of Funafuti Port was undertaken in 2018 to identify the current energy consumption and energy saving opportunities at the port.23As part of MICRO, the recommendations of the audit will be financed including inter alia improvements to the yard lighting with high efficiency lights with dimmable drivers, solar lights and a control system to enable a reduction in light levels when there are no ships in the port, as well as upgrading air conditioning units with a high efficiency split system. Through reducing energy usage and improving the efficiency of systems, a gain in operational cost of the port is expected which will reduce the burden on the government budget in the long-term.

43. Maintenance of infrastructure is critical to ensure its sustainability. This is particularly critical in the outer islands where limited equipment is available to undertake periodic dredging of the access channel and harbor basin. At sector level, the ADB is preparing an asset management strategy to cover outer island infrastructure in Tuvalu and has already completed work on an asset management plan related to ship maintenance. It is anticipated that this work will provide the necessary guidance for the Government at a higher level. The specific investments under the project will of themselves require limited maintenance through the utilization of modeling and design measures, for example, the harbor basin is being designed to minimize the movement of currents within the basin and will include an angled ramp which allows for the maintenance of the existing dune crossing whilst keeping a straight path, as requested by the Nanumaga community. The project will ensure that a maintenance plan and feasible maintenance schedule will be developed for harbor clearance to remove sand, as well as a maintenance plan for the Kaupule for the removal of algae from wharf surfaces, to ensure sustainability of investments under the project.

D. Role of Partners 44. The GoTV has received assistance from a number of donors for investments in the maritime sector including

the ADB, the Green Climate Fund, the United National Development Program (UNDP), the Secretariat of the Pacific Community (SPC), and the Government of New Zealand, which are detailed below. Consultations have been undertaken with all donors to ensure that the proposed investments under MICRO are complementary to other donor projects and that lessons learned can be shared throughout implementation. The role of these partners in the maritime sector in Tuvalu has been taken into account in the design of MICRO.

45. TOIMIP. Between 2014 and 2016, the ADB prepared TOIMIP. TOIMIP aims to rehabilitate and improve maritime infrastructure on several outer islands, including Nukulaelae and Nuitao, as well as to address damage caused by Tropical Cyclone Pam in March 2015. Investments under TOIMIP include: (i) dredging of reef channels; (ii) installation of Aids to Navigation (AtoN); (iii) building of wharves to berth workboats; (iv) construction of breakwaters along both sides of reef channels; (v) construction of approach jetties between the quay facilities and the top of the beach for transport of trucks and passengers; (vi) provision of equipment at quay facilities to allow mechanized cargo handling between workboats and aprons; (vii) building of ancillary building and facilities for passengers and cargo near the jetties; and, (viii) the provision of flex-mat boat ramps for fishing boats. The contract for the civil works at Nukulaelae has been awarded and the construction of facilities has commenced. TOIMIP is also funding a temporary flex-mat on Nanumaga to replace the concrete boat ramp that was destroyed during Cyclone Pam.

46. Tuvalu Coastal Adaptation Project (TCAP). TCAP is being prepared with funds of US$36.00 million, provided

23 Level 1 energy audit, Port of Funafuti. Ministry of Communications and Transport, 2018.


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by the Green Climate Fund and administered by the UNDP, to enhance coastal adaptation in Tuvalu, including proposed investments on Funafuti, Nanumea and Nanumaga. Under TCAP, funding has been allocated to Nanumaga to enhance coastal resilience, potentially through ‘soft’ engineering options, in the vicinity of the current village and the existing port location as this has been identified as a high-value vulnerable coastline due to the location of the community in this area. Coastal reinforcement along at least 450 meters of shoreline in the vicinity of the planned harbor investment are proposed under TCAP. On Funafuti, coastal protection measures will be implemented in the high-value vulnerable coastline including the port area. UNDP propose to undertake a coastal study assessment during the next year with the outcomes of the assessment used to inform the specific interventions going forward in these locations.

47. Pacific Safety of Navigation Project. The SPC are undertaking a two-phased Pacific Safety of Navigation Project, funded by the International Foundation for Aids to Navigation. The project includes activities to identify the current and future needs for safety of navigation systems including AtoN, procedures for governance and funding, and to support the enhancement of capacity to establish, operate and maintain AtoN. In recognizing the importance of AtoN in the Pacific, SPC has designed and started implementing, the safety of navigation project to improve the level of AtoN services and to enhance the capacity and systems in the region including the provision of AtoN based on risk assessments.24 The project has recently concluded Phase 1 of its work which focused on an assessment of the needs for safety of navigation systems across Pacific islands. The design of Phase 2 is currently underway.

48. Maritime Technology Cooperation Centre – Pacific (MTCC-Pacific). Furthermore, SPC is the host of the MTCC-Pacific. MTCC aims to enhance the capacity for climate mitigation in the maritime industry within PICs. A key part of its program is the Green Pacific Port Program. The aim of the program is to create the enabling environment for improved efficiency of port infrastructure and operations, and to reduce environmental impacts thereby providing commercial benefits to the port itself and improving the quality of the working and living environment within and around the port. The program will also provide opportunities for new and innovative incentives towards climate mitigation in the maritime industry and green shipping. The first National Workshop on Energy Efficient Operations of Ships was carried out during May 2018, which will be followed by technical assistance to implement Ship Energy Efficiency Management Plans and reduce greenhouse gas emissions through new technologies and operations. MTCC also has a focus on improving Energy Management in Ports, including conducting energy audits and providing assistance to develop energy policies and energy management plans. An energy audit of Funafuti Port has been undertaken, which identified energy and emission saving opportunities. Activities highlighted within the audit, including upgrades to improve efficiencies in the yard lighting through solar light installation, will be financed under MICRO.

49. Pacific Maritime Safety Program. The New Zealand Government through the Ministry of Foreign Affairs and Trade (MFAT) is funding the regional Pacific Maritime Safety Program that includes the delivery of safety initiatives to Tuvalu. The program includes: (i) raising awareness of, and engagement in, maritime safety amongst the community, institutions and government; (ii) supporting maritime sector regulatory agencies to meet their obligations; (iii) meeting local training needs; (iv) improving vessel seaworthiness; and, (v) developing plans for Search and Rescue and Marine to use in the event of oil spill pollution, and providing equipment and training. As part of the Program, a Pacific Maritime Safety Advisor based in New Zealand, is providing specialist advice to the sector where required. Technical support financed under MICRO is being

24 Pacific Maritime Watch. The Secretariat of the Pacific Community, April 2017.


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scoped based on the experiences and recommendations from the work financed by MFAT to date and will complement MFAT’s ongoing efforts.

50. Tuvalu Ship to Shore Transport Project (TSSTP). The MFAT-funded TSSTP was approved in 2007 and has recently closed. TSSTP focused on improving the efficiency, effectiveness and safety of the entire process of moving cargo and passengers between ship and shore. TSSTP involved various infrastructure investments, such as improvements to reef channels, concrete ramps, AtoN, and institutional capacity building through a sector strategy.

E. Gender

51. Gender. MICRO has undertaken participatory consultation during the project preparation phase with the Gender Affairs Department (GAD), the Tuvalu National Council of Women (TNCW) and the Ministry of Education, Youth and Sports to ensure the project is gender-informed and addresses gender related gaps. Furthermore, MICRO has been consulting with the United Nations International Children’s Emergency Fund (UNICEF) for the inclusion of child specific considerations in the project.

52. Analysis: Two key issues were identified during the analysis phase that have a negative effect on the gender

gap in Tuvalu:

(a) GBV, VAC and trafficking. In 2016 the Bank undertook detailed analytical work which confirmed the scale and extent of GBV in the Pacific Islands.25 In Tuvalu, the prevalence of GBV is high, with forty-seven percent of women who report having experienced either physical or sexual violence, consistent with results from the broader Pacific Islands. Four in ten women have experienced physical, sexual or emotional abuse by a husband or other intimate partner. Over half of women reported controlling behavior by their husband. Close to one in five women in Tuvalu (21 percent) have experienced sexual violence. In addition, child marriage prevalence is estimated at 10 percent.26 Data is limited on other forms of violence against children, and on trafficking, though experience in similar contexts suggests significant risks of trafficking in contexts with large seafaring populations or marine industries.27 The project was screened using the World Bank’s ‘GBV Risk Assessment Tool’ and was classified within the “Moderate Risk” category (see Annex 4 for mitigation actions put in place).

(b) Access to economic opportunities. The public sector dominates economic activity in Tuvalu. Of those within the labor force, a large percentage make a living through exploitation of the sea, reefs and atolls or as observers on international vessels. About 15 percent of the adult male population work as seamen on fishing and merchant ships, and remittances are a vital source of income contributing to around US$2 million in 2007.28 In addition, revenue from fishing licenses

25 Gender Based Violence in the Pacific: Pacific Island Countries. World Bank, October 2016. 26 Percentage of women aged 20 to 24 years who were first married or in union before age 18. Source: UNICEF global databases, 2018, based on Demographic and Health Surveys (DHS), Multiple Indicator Cluster Surveys (MICS) and other nationally representative surveys. 27 Surtees, R, 2013, ‘Trapped at Sea. Using the Legal and Regulatory Framework to Prevent and Combat the Trafficking of Seafarers and Fishers’, Groningen Journal of International Law, vol. 1(2): Human Trafficking. 28 Ibid.


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contributed to more than 45 percent of GDP in 2013.29 Traditionally many of these jobs are held by men and due to the lack of a diversified economy, there are only few other employment opportunities for women for which they have the right qualifications. For example, 78 percent of the female labor force works in subsistence economy, and women form 36 percent of the non-agricultural workforce.30 Evidence from around the world, including the Pacific region, demonstrates that GBV – as outlined above – also has a significant impact on women’s economic engagement and productivity, and their ability to contribute to broader development goals.31

53. Action: Based on the analysis, a number of actions have been identified and are proposed to be included

in the project:

(a) GBV, VAC and trafficking. Identifying the role that the maritime sector can play in helping to build local capacity and structures to help prevent and mitigate instances of GBV, VAC and trafficking, the strategy for MICRO will further build on the activities undertaken as part of the existing TvAIP. A GBV, VAC and trafficking strategy was developed for MICRO and consists of three pillars: (i) needs assessment; (ii) prevention; and, (iii) survivor support services. Based on the strategy a range of actions are proposed including GBV, VAC and trafficking prevention training and support for select community groups and NGOs, selected in accordance with the criteria and procedures to be detailed in the finalized POM, to deliver GBV, VAC and trafficking training in accordance with the GBV, VAC and trafficking strategy; delivery of courses on GBV, VAC and trafficking for the 10 vessels that monitor border control and clear vessels at Funafuti port; training on child safety and protection on vessels during travel; the development of a training course on GBV, VAC and trafficking through the Maritime Training Institute of Tuvalu for seafarers; training on GBV and VAC for the regular workers at Funafuti port and Nanumaga and the workers and managers that will be hired for the project; training for school teachers in Funafuti and Nanumaga, counselors and supervisors on corporal punishment, positive discipline, child abuse and exploitation, bullying and teenage pregnancies; and, the development of a community-based campaign/approach to address GBV, VAC and trafficking on Nanumaga. The actions included in this strategy cover the key recommendations of the 2018 Good Practice Note (GPN) ‘Addressing Gender Based Violence in Investment Project Financing Involving Major Civil Works’32 (see Annex 4), as well as going beyond risk mitigation and response to project-related cases to strengthen broader GBV and VAC services, for example by making counselling more widely available (see (b) below). These actions are intended to affect the existing gender gap by reducing the impact of GBV and VAC on survivors, families and communities. Specifically, to quantify closing of the gap, the project will measure the increase in number of survivors (women) seeking services (see (a) below).

(b) Access to economic opportunities. It has been identified that enhanced economic opportunities and labor force participation are key to reducing gender gaps. Women will be encouraged and supported to access employment opportunities created under this project. In addition, in order

29 https://www.cia.gov/library/publications/the-world-factbook/geos/print_tv.html 30 Gender Based Violence in the Pacific: Pacific Island Countries. World Bank, October 2016. 31 The National Council to Reduce Violence Against Women and their Children, 2009, ‘The Cost of Violence Against Women and their Children’. Commonwealth of Australia; Darko, E. Smith, W and Walker, D, (2015), ‘Gender Violence in Papua New Guinea: The Cost to Business.’ Overseas Development Institute. 32 Good Practice Note - Addressing Gender Based Violence in Investment Project Financing Involving Major Civil Works. World Bank. September 28, 2018.

https://www.cia.gov/library/publications/the-world-factbook/geos/print_tv.html


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to provide women with enhanced opportunities in the non-agricultural workforce while also improving the standards of care and counselling available to survivors of violence, the project aims to provide training for women to meet the minimum standards required under Family Protection and Domestic Violence Act to become domestic violence counsellors. The Government of Tuvalu’s Family Protection and Domestic Violence Act 2014 requires the following minimum standards for domestic violence counsellors in Tuvalu: (i) the person engages in domestic violence counselling, mediation or marriage education and counselling or is concerned with the welfare of children; and, (ii) the person is a qualified counsellor with appropriate qualifications; or, (iii) the person has appropriate experience in counselling or mediation in relation to domestic violence. The project will support to obtain the necessary training to become qualified counselors. In conjunction with this the government is also discussing scholarship opportunities and the creation of counseling positions within government. Therefore, this training will build the capacity of Tuvaluan women to seek higher education in counseling and provide participants with the potential for future job opportunities in Tuvalu.

54. Monitoring: The Results Framework includes indicators to monitor the progress of actions taken to

address the issues identified:

(a) GBV, VAC and trafficking strategy. (i) Successful implementation of the GBV Action Plan and VAC and Trafficking Strategy (yes/no). (ii) Number of individuals trained on GBV, VAC and/or trafficking (number). (iii) Percentage of training attendees who demonstrate improved knowledge after GBV, VAC

and/or trafficking training (percentage). (iv) An increase in the number of survivors seeking help (percentage).

(b) Access to economic opportunities.

(i) Number of women who receive counselling qualifications that meet Tuvalu’s minimum standards (number).

(ii) Number of women trained who obtain employment in counselling (number).

V. KEY RISKS

A. Overall Risk Rating and Explanation of Key Risks

55. Overall risk rating. The overall risk of the project is Substantial. The main concerns involve: (i) the technical design of the project; (ii) fiduciary risks; (iii) environmental and social risks; and, (iv) stakeholder related issues. The technical design of the project includes the construction of maritime infrastructure in a remote island location, which will be logistically complex to manage. The project will try to mitigate this risk by working closely with the ADB and building on lessons learned from their works in Nukulaelae. Limited institutional capacity of the IA and a small pool of local expertise in procurement and financial management (FM) poses a substantial fiduciary risk for the project. Existing arrangements will be utilized where possible and complemented by additional technical staff where needed. The environmental and social risk is rated as high as the proposed works on Nanumaga are located in a sensitive environment where both the environmental and social aspects need to be carefully managed


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in accordance with the Environmental and Social Management Plan (ESMP) mitigation measures. The stakeholder associated risks are substantial, with various stakeholders involved in the sector requiring careful coordination and management. Consultations have been undertaken with relevant stakeholders and the project has developed a Stakeholder Engagement and Consultation Plan (SECP), which will be implemented throughout the project.

56. Technical Design of Project. Given the low capacity environment, the remoteness of the project location

and the uncertainty faced by climate change, the risk resulting from the technical design of the project is rated Substantial. Given the remote location of investments, particularly on Nanumaga, the logistics will be complex and there are potential cost overruns given that large scale civil works have not yet been undertaken on the Tuvalu outer islands. To mitigate the risk, the project is planning to draw from lessons learned from the ADB’s project in Nukulaelae. To help reduce the complexity associated with construction of the harbor of Nanumaga, it is proposed that the structure will be prefabricated out of country and shipped for installation on site. In addition, the project includes the establishment of a register to store the location and needs (e.g., medication requirements, access needs) of vulnerable populations. Though the risks of personal information being inadequately protected and/or potentially misused are minimal, the project will ensure that the consultant hired to provide technical assistance to the designated foal point within the Ministry of Lands department will be required to make sure that: (i) context appropriate steps are taken to protect personal information during the collection and entry into the register; (ii) the register is designed to protect personal information, potentially in a similar modality to the GCLS; and, (iii) there is a sufficient regulatory framework for the register to protect personal information, such as through the development of register management procedures and protocols.

57. Fiduciary. Tuvalu has a small pool of local expertise in procurement and FM, which poses a substantial

fiduciary risk for the project. The established ADB-IDA PMU will help mitigate the risk with existing arrangements being utilized where possible, complemented by additional technical staff where needed.

58. Environmental and Social. Environmental risks include modifications to the subtidal, intra-tidal and supra-tidal coastal areas, which may potentially alter sediment transportation processes, resulting in erosion and/or accretion, remove and alter habitats and ecosystem services, increase the risk of salt water intrusion into groundwater lenses, and impact on food gathering and livelihoods. To mitigate the potential environmental risks, the project has conducted extensive preparatory studies that assess potential impacts of climate change (including sea level rise) and includes the simulation/modeling of impacts of infrastructure on currents and erosion patterns to mitigate adverse environmental impacts. Social risks include the influx of workers from outside Tuvalu and the location of the works camp, with potential impacts including an increase in social conflict, illicit behavior and crime, pressure on local water and food supply, or increased risks of HIV and GBV. These risks will be mitigated through the safeguard documents and the Contractor’s ESMP as well as code of conducts.

59. Stakeholders. Multi-level government structures in Funafuti and the outer islands and the number of donors involved in the sector will require careful coordination and stakeholder management. Initial consultations have been undertaken with relevant stakeholders including the Nanumaga Falekapule, the Nanumaga and Funafuti community, government, other donors and NGO organizations. Initial input from the consultations have been incorporated into the project, including the concept designs for the


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Nanumaga harbor. The project SECP will be implemented throughout the project. During the detailed planning phase for the Nanumaga harbour and Funafuti port, stakeholder engagement will be essential for the review of detailed designs and the selection of mitigation options for identified social and environmental impacts.

60. Communications Strategy. Complementary to the SECP a communications strategy will be developed.

The priority audience for the MICRO communications strategy will be the local community on Nanumaga, who will need to be made aware of the who, what, where and why of the project in order to manage expectations. Such work is anticipated to be supported by the World Bank’s External and Corporate Relations (ECR) Sydney team, which would begin with the issue of a press release announcing the project’s Executive Board approval. From here, a communications plan informed by the SECP and the works schedule will outline key points at which other announcements should be made to the public, and via what channels (press release, Facebook content, local media interview with project staff, etc.). Such announcements should also include information on GBV and VAC training. The Bank will also keep the ECR abreast of any potential challenges that may be raised publicly so that these can be proactively managed. The ECR will ensure that any World Bank communications work to align with existing activities in the space, including MFAT work already underway through the Pacific Maritime Safety Program on raising awareness of, and engagement in, maritime safety amongst the community, institutions and government; and, any work being undertaken by ADB on TOIMIP.

VI. APPRAISAL SUMMARY

A. Economic and Financial Analysis

61. Overall. The results of the economic analysis are summarized in Table 4. The economic analysis for both the Nanumaga harbor and Funafuti Port cover the period of 20 years (2019-2039) with the discount rate assumed to be 4 percent and standard conversion factor of 0.92. Based on the investment cost of US$13 million for Nanumaga Harbor, the standard cost-benefit analysis against “do-nothing” alternative resulted in the economic internal rates of return (EIRR) of -6.9 percent with net present value (NPV) of US$ -8.03 million. Funafuti Port’s estimated EIRR is 4.4 percent with NPV of US$0.13 million. Nevertheless, the total project’s EIRR is -3.4 percent and NPV of US$ -7.9 million.

Table 3. Estimated Net Present Values (NPV) and Economic Rate of Return (EIRR)

Activity Cost (US$ million) EIRR (%) NPV (US$ million)

Nanumaga Harbor 13.0 -6.9 -8.0

Funafuti Port 3.5 4.4 0.13

Total 16.5 -3.4 -7.9

62. The project’s internal rate of return is lower than the economic viability threshold, particularly because of the high investment cost to serve Nanumaga. A key initiative of Tuvalu is to ensure that local communities are able to remain on the outer islands with sufficient livability conditions, without having to migrate to


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Funafuti, which has limited land and water to accommodate migrants. The project addresses the community’s basic need for resilient, efficient and sustainable maritime infrastructure and services, which will contribute to improving the livelihoods and quality of life of people in Nanumaga. The investment will lead to enhanced access for the people of Nanumaga, enabling the community to remain on the island through the continued provision of access to critical services and delivery of basic goods. Considering changes in climate, the investment will enhance the climate resilience of the infrastructure to ensure that future changes such as sea level rise, or an increase in frequency or intensity of extreme weather events are accounted for. Therefore, the project’s contribution to Tuvalu is more of social benefits, enhancing livability, and shared prosperity than of pure economics of the project.

B. Technical

63. The project will undertake three major infrastructure investments:

(a) Nanumaga Harbor. The provision of safe berthing facilities; (b) Nanumaga Associated Infrastructure. The construction of: (i) a cargo shed/passenger holding areas;

and, (ii) upgrading of Nanumaga island roads (most likely using geo-cell technology);33 and, (c) Funafuti Port. The construction of: (i) a 6000 m2 paved area for the safe and efficient operation of the

port; (ii) the re-design of the existing warehouse/maintenance shed; (iii) improvements to the energy efficiency at the port; and, (iv) improvements to port operations.

64. Nanumaga Harbor. As part of the project preparation a Vulnerability Assessment was undertaken in 2017.

The objective of the Vulnerability Assessment was to identify a number of different conceptual designs and locations suitable for a small-scale harbor in light of climatic changes and potential environmental impacts. Based on the results of the Vulnerability Assessment the Government decided to opt for a small-scale boat harbor at the location of the existing access channel, which is located on the northwest shoreline of the island at the village, approximately 450 meters north of the western apex of the island (Figure 2). The existing channel is around 10 meters wide and located directly in front of the main communal area of the village with residential areas stretching out towards the north and south along approximately 450 meters of coastline in total. This decision constitutes a major shift from the concept stage, where investments involving access for large sea-faring vessels were envisaged. Moreover, the concept schemes involved the potential for green field development of a new port location in the south of the island, which would have necessitated additional road infrastructure to the community itself, extensive dredging works and land clearance.

33 A mat of interconnected cells that are infilled for road construction.


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Figure 2. Existing Channel on Nanumaga

65. The concept schematics developed under the Vulnerability Assessment were refined by the current

design consultant to identify the most appropriate solution given the technical, environmental and social constraints. Several concept designs were developed and a Multi-Criteria Analysis (MCA) undertaken to help mitigate vulnerabilities for the infrastructure (including to climate change and extreme weather events), as well as to minimize any potential environmental impacts from the infrastructure. The preliminary results of the MCA have been presented to the community in Nanumaga and the preferred concept selected. The finalized MCA will include hydrodynamic modelling that will inform the detailed designs, with the final design subject to approval by the Joint Task Force.

66. The design selected by the community (see Figure 3) utilizes a two-sided harbor, allowing for passengers use on one side and cargo handling on the other, and would require the channel to be widened by 10 meters. A key feature is the sand retention wall which allows some wave transmission rather than reflection, which reduces sand entering the basin. The breakwaters are integrated with two offloading ramps which are accessible at all tides and do not require any steps. By providing adequate space for berthing along the length of the new basin, the workboats can anchor alongside whichever section of the ramp allows the passengers to step off the boat and onto the ramp. At its entrance, the channel would be deepened to reduce the wave height during high tide and a short way into the channel a deep sump would be dredged to act as a sand trap and to prevent sand being lost from the channel. The sump would be fitted with a dredge pump which would be able to pump the sand, back onto the beach. Additional breakwater structures could also be placed at the channel entrance to further reduce the wave disturbance entering the channel should the modelling show that this is necessary.


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Figure 3. Selected Concept Design Nanumaga Harbor34

67. Nanumaga Associated Infrastructure.

(a) Passenger terminal and cargo shed. There is currently no landside infrastructure available to

appropriately accommodate waiting passengers and to store cargo. The previous structure was destroyed in Cyclone Pam and an alternate more resilient location will be chosen for the new structure. Having adequate warehousing capacity is critical given the reliance of Nanumaga on imports from Funafuti and will allow communities to store emergency goods. Furthermore, given the time to unload and load the interisland vessel it is important to have an area where passenger can be protected from the elements.

(b) Upgrading of Nanumaga island roads. As a result of Cyclone Pam there was damage to the roads on Nanumaga. The project will look to pave some key coastal road sections most likely with geocell concrete pavement technology, a technique used successfully in Kiribati and being trialed in Funafuti under the TvAIP project.

68. Funafuti Port. Funafuti port has two main functional uses including as a port to transfer cargo between

land and sea, and as a warehouse where containers are stored. Under MICRO the following improvements will be financed:

(a) Pavement area. One of the key challenges affecting efficient cargo operations is the port’s unpaved cargo handling area of approximately 6,000m2. The area is currently an uneven gravel surface which puts a strain on cargo handling equipment and the efficiency of port operations. As part of the project the area will be paved with a suitable rigid pavement. The necessary subsurface

34 Inception Report. Ministry of Communication and Transport, 2018.


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investigations to develop an appropriate design are currently underway.

(b) Warehouse/maintenance shed. There is currently a large central storage shed within the port which is used to store loose cargo as it is loaded or unloaded from the containers. Though in relatively good condition, the shed is subject to low level flooding during king tides and storm event indicating that it is approximately 1 meter lower than is optimal. It is anticipated that as part of the project, improvements will be made to the maintenance shed to improve its resilience to king tides and storm surges, include a maintenance area and improve overall usability of the shed. If needed a new maintenance building will be constructed.

(c) Energy efficiency improvements. In addition, it is proposed to improve the port’s energy efficiency. A recent energy audit funded by SPC, identified during 2017, energy consumption included 45,000 kilowatt-hours of electricity, 16,600 liters of diesel and 200 liters of petrol. Annual production of greenhouse gas emissions in 2017 was 74 tons.35 Of the electricity usage, approximately 33 percent is attributed to the yard lighting, while for diesel usage of approximately 33 percent is attributed to forklifts. Based on the recommendations from the audit investments to improve energy efficiency to be financed by the project include: installation of high efficiency lights with dimmable drivers, solar lights and a control system to enable a reduction in light levels when there are no ships in the port, as well as upgrading air conditioning units with a high efficiency split system.

(d) Operational equipment. To improve operations at the port the project will finance handling equipment which may include reach stackers, and tractors and/or trailers to haul cargo to the cargo handling area.

C. Financial Management

69. The FM assessment was carried out in accordance with the “Principles Based Financial Management Practice Manual” issued by the Board on March 1, 2010 which states with respect to projects financed by the Bank, the Recipient is required to maintain appropriate implementation arrangements which include – accounting, financial reporting, and auditing systems - adequate to ensure they can provide the Bank with accurate and timely information regarding the project resources and expenditures. Overall, the proposed FM arrangements of the ADB-IDA PMU satisfy the FM requirements of the Investment Project Financing Bank Policy. The assessed FM risk of the project is considered “Substantial” due to the risk in retaining suitably skilled staff to complete the FM requirements of this project in a very low capacity environment. The main mitigating measures are to ensure throughout the project that there be a suitably qualified and experienced person to maintain the project accounts and that additional support be available to ensure accurate financial monitoring of the Nanumaga infrastructure contract (see Annex 2 for details on FM).

D. Procurement

70. The World Bank Procurement Regulations for Investment Project Financing (IPF) Borrowers (Procurement Regulations, June 2016, revised in November 2017 and August 2018) will be followed for all the procurement activities of this project. The Procurement Regulations would provide adequate

35 Level 1 energy audit, Port of Funafuti. Ministry of Communications and Transport, 2018.


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options and flexibility for achieving the procurement objectives of this project.

71. MCT is the implementation agency and responsible for all the procurement processes. From the analysis in the PPSD, it is expected that there will be no procurements using national competition. The main procurement risks are (a) limited procurement capacity of MCT and PMU; (b) limited national market; (c) concerns on quality of procurement documents; (d) limited capacity of contract management; and (e) delay in procurement process including bid evaluation. To help mitigate these risks, the following mitigation measures were agreed with MCT: (a) expansion of the existing PMU for ADB financed TOIMIP in MCT to also cover MICRO including procurement capacity building of MCT so as to better use the existing capacity in MCT; (b) wide outreach to the marketplaces and exploration of joint procurement with ADB financed project to attract more interest from the market; (c) the technical design to be prepared by the same consulting team for TOIMIP and MICRO so as to better use the resources of the consultant; (d) recruitment of a contract management specialist and a procurement specialist in the PMU; and (e) close monitoring of procurement implementation by PMU and the Bank, including using the World Bank’s Systematic Tracking of Exchanges in Procurement (STEP) system. An initial procurement plan was prepared based on the PPSD for the initial 18 months and will be updated throughout project implementation.

72. The IDA grant, through the project preparation advance, has financed the costs of investigative surveys and feasibility studies to inform investment decisions. The PPA will also finance the technical design, and possibly construction supervision of maritime infrastructure on Funafuti and Nanumaga. The detailed procurement arrangements are described in Annex 2.

E. Social (including Safeguards)

73. Indigenous Peoples (OP/BP 4.10). An assessment of the applicability of OP/BP 4.10 to the PICs was undertaken during the preparation of the Environmental and Social Safeguard Instruments for the Pacific Island Countries.36 Country-level social analysis undertaken as part of preparation of the World Bank Environmental and Social Safeguard Procedures and Instruments for Pacific Island Countries, determined that OP/BP 4.10 is not typically triggered in Tuvalu, as no social groups in the country meet the identifying characteristics of OP/BP 4.10.37 Therefore, this policy is not triggered.

74. Involuntary Resettlement (OP/BP 4.12). Involuntary Resettlement, OP/BP 4.12, is not triggered under

the project as no involuntary land acquisition or changes in access are anticipated. On Nanumaga, the harbor will be built on crown land and thus no additional land will be required. While the location of associated terrestrial facilities is yet to be determined, preference will be given to sites on government or communal land which would not require a lease. If this is not possible for any reason, the ESMP confirms land and other assets will be leased through a negotiated settlement based on meaningful consultations with landowners, Ministry for Land and the Falekauple. Compensation for land will be paid in accordance with Government rates which are AUD3,000 per acre per annum. It is probable that the

36 Environmental and Social Safegaurd Instruments for the Pacific Island Counties. World Bank, 2015. 37 According to the Environmental and Social Safeguard Procedures and Instruments for PICs developed by the World Bank’s East Asia and Pacific Regional Safeguard Secretariat (RSS), OP/BP 4.10 is not typically triggered in the generally homogeneous island nations of Federated States of Micronesia, Kiribati, Marshall Islands, Palau, Samoa, Tonga and Tuvalu. Depending on the specific project context, persons meeting the four defining characteristics of OP/BP 4.10 are likely to be found in Fiji, PNG, the Solomon Islands, Timor-Leste and may be found in Vanuatu.


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laydown and/or stockpile sites will be on private lands which will be rented for a short period by the Contractor. It will be documented that the Falekaupule agree to support the rental of this land by the landowner to ensure ongoing community support and to determine that there are no ownership conflicts over the piece of land subject to rental. The terms of the rental agreement will be negotiated between the identified landowner and the Contractor and will be facilitated by the PMU and Kaupule. Rental agreements will not exceed the period between mobilization and demobilization, and rental rates will not be less than the government land valuation of AUD3,000 per acre per annum (or part thereof). If project works affect non-land assets, preference will be given to avoiding clearance. Where this is impossible, agreement to the removal of assets and receipt of compensation, as well as the rate of compensation (to be based on the latest government valuation or full replacement cost at existing market prices) and the terms/method of payment will be established by consultation and negotiation between the asset owner, the PMU and Contractor. In Funafuti the construction of a maintenance shed will be located within the existing port perimeter.

75. The significant social impacts associated with the project include influx of workers from outside Tuvalu

and the location of the workers camp. In relation to workers, the ESIA confirms that impacts may include social conflict between the local community and the construction workers; potential increase in illicit behavior and crime; and pressure on local water and food supply. To address these impacts, as outlined in the ESIA, a Workers Camp Management Plan shall be submitted as an annex to the Contractor’s ESMP and all workers will be required to sign a code of conduct on appropriate behavior (including HIV and GBV awareness). The Contractor will be required to supply all project freshwater and food needs during construction and use of community resources will be prohibited. Benefits however, are likely to be gained through local employment opportunities. Contractors will be required to prioritize the use of local workers. To assist this, a local labor registry will be developed and use of a rotation system for employment opportunities to be managed by the local Kaupule which will encourage benefit sharing; and contractors will be required to employ local community members (likely to be women) for food preparation and housekeeping.

76. Worker accommodation will not be required in Funafuti but will be needed in Nanumaga. A suitable site has been identified in consultation with the local community, which is a derelict health clinic damaged during a cyclone in 2015. Repair and renovation works will be required to bring the buildings to an appropriate standard and it is anticipated that this will be done using local workers—funded by the project—prior to the contractor mobilizing. On completion of the project, the renovated buildings will be handed back to the Kaupule for use by the community.

77. Public consultations were undertaken during the preparation of the project and used to help inform the harbor location on Nanumaga, as well as the concept design. A series of public consultations and stakeholder meetings were held during April and June 2018 with the aim of providing meaningful consultation with stakeholder groups and to provide an opportunity for all parties to provide input into the project. The meetings targeted three groups of stakeholders: (a) Government agencies, authorities and development partners in Funafuti; (b) NGOs and civil society groups; (c) the Nanumaga community members. Feedback provided during consultation was used to identify project impacts and benefits, as well as identify appropriate mitigation measures.

78. Occupational Health and Safety (OHS). All new works procurements will include clear provisions for


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OHS. Issues related to OHS on construction sites will need to be carefully managed and monitored. These include but are not be limited to access to workers compensation, first aid services, sanitation and hygiene at the work place, use of personal protective equipment (PPE), site safety and accidents as well as implementation of traffic management plan during construction. All contractors will be required to prepare an OHS mitigation plan and provide monthly progress reports on OHS risks.

79. Gender Based Violence (GBV). The project was screened using the Bank’s ‘GBV Risk Assessment Tool’

and was classified within the “Moderate Risk” category. The project will undertake specific activities to address GBV, both for the potential induced impact from the project, and the underlying levels. A detailed description of the mitigation actions taken under the project can be found in Annex 4.

80. Grievance Redress Mechanism. A Grievance Redress Mechanism (GRM) has been established to register

and manage all grievances, including those received by consultants and contractors, relaying them to the appropriate party for resolution, and advising the complainant of the outcome. Statistics on grievance and complaint resolution will be published on the project website (www.micro-nanumaga.tv). Statistics published reflect the proposed indicators in the 2014 Guidance Note on Results Framework and Monitoring & Evaluation (M&E) including (i) grievances registered related to delivery of project benefits that are addressed (%); and (ii) grievances responded and/or resolved within the stipulated service standards for response times (%). In addition, the public display of this data also fulfills the indicator (ii) Project-supported organization(s) publishing periodic reports on GRM and how issues were resolved, proposed in the guidance note.

F. Environment (including Safeguards)

81. Environmental Assessment (OP/BP 4.01). OP/BP 4.01 was triggered at Concept Stage and an ESIA and ESMP were prepared for the project. The key environmental impacts identified in the ESIA are: (i) Nanumaga: potential coastal erosion and accretion from breakwaters; disturbance to the beach berm and vegetation line; impacts from sourcing of aggregates; depletion of freshwater resources; and solid waste management; and, (ii) Funafuti Port: disturbance of the foreshore; solid waste management; water quality impacts in the nearshore environment; and waste water management.

82. Natural Habitats (OP/BP 4.04). The policy was triggered because the proposed investments in Nanumaga will involve the modification and / or loss of natural habitats in the foreshore and marine environment. The conservation of natural habitats is essential for the sustainable development of Tuvalu, as they provide food, livelihoods, protection from wave energy and cultural significance for its people. The ESIA and ESMP have identified the avoidance and enhancement measures, as well as mitigation and management of impacts from each phase of the Project.

83. Forests (OP/BP 4.36). The ESIA determined that the project will not affect the health or function of the inland terrestrial or mangrove forests in Nanumaga and hence the policy is not applicable.

84. Physical Cultural Resources (OP/BP 4.11). The baseline surveys carried out as part of the ESIA process did not identify the presence of any physical cultural resources within the project’s area of influence. Hence, the policy is not triggered.


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85. ESIA outcomes. The key environmental impacts identified in the ESIA relate to the modification of sediment transportation processes in Nanumaga and the associated potential coastal erosion and accretion from the construction of breakwaters, jetties, etc. Due to the significant importance of the beach berm and vegetation line in protecting the island and more specifically the village from flooding and storm damage, any impacts on their integrity could have disastrous consequences. The baseline survey found that the reef flat and crest in the project area are largely devoid of live coral coverage and similarly, live coverage on the potentially affected reef slope is very low. Hence, the ESIA concluded that potential impacts associated with loss of benthic habitats and more specifically coral reef habitat are negligible. Other key potential impacts relate to the sourcing of aggregates, in case the dredged material can’t be used or is not sufficient, and the management of freshwater resources which are very limited on the island. If not managed properly, solid waste may also lead to environmental impacts.

86. The design of the facilities has ensured minimal impacts on sediment transportation mechanisms will be incurred through the following measures: no solid structures beyond the reef flat; only piled structures will be permitted on the sand; distance between breakwater and sand line to be maximized to retain littoral drift; coastal modelling will be reviewed by independent experts; design features to reduce sand catchment in the harbor basin and channel; development of feasible maintenance schedule for harbor clearance to remove sand; increase depth of channel entrance to reduce size of waves in the entrance.

87. As highlighted in the ESIA, no materials will be sourced locally from Nanumaga for the construction of the harbor.38 The project design also anticipates minimizing the import of aggregates by using pre-cast concrete panels for the harbor construction at Nanumaga. This approach has already been adopted and trialed in Nukulaelae as part of the ADB’s TOIMP project. Any important materials, equipment and aggregate will be subject to importation under the quarantine and biosecurity regulations of Tuvalu, with mitigation measures outlined in the ESIA.

88. In order to protect the beach berm and vegetation line, there will be no further breaches or clearing

allowed for the purpose of constructing the proposed buildings, including the cargo shed and passenger terminal. The buildings will be constructed within the footprint of the former cargo shed that was destroyed during TC Pam. This will require climate resilient foundations but will not result in further impacts on the beach berm and vegetation line.

89. The impacts associated with aggregate and freshwater sourcing, as well as the construction impacts from the paving works at Funafuti Port can be managed through the implementation of standard construction environmental management procedures which have been documented in the ESMP. The ESIA and ESMP were disclosed in-country and on the Bank’s website on November 4, 2018.

90. Furthermore, under Component 4, any activities financed will be screened and any activities deemed to be Category A will not be financed. A draft CERC Operations Manual (OM) has been prepared for the project and in addition a CERC-specific ESMF will be prepared before activation of the CERC component at the latest along with the final Operations Manual.

38 Environmental and Social Impact Assessment. Ministry of Communications and Transport, 2018. p. 98


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G. World Bank Grievance Redress .

91. Communities and individuals who believe that they are adversely affected by a World Bank supported project may submit complaints to existing project-level grievance redress mechanisms or the World Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the World Bank’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of World Bank non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

92. The project will establish a GRM for monitoring and managing all grievances. Statistics from the GRM

will be publicly reported on the project website.

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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.


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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework COUNTRY: Tuvalu

Maritime Investment in Climate Resilient Operations

Project Development Objective(s)

To improve the climate resilience of Nanumaga harbor and Funafuti port, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency.

Project Development Objective Indicators

RESULT_FRAME_T BL_ PD O

Indicator Name DLI Baseline Intermediate Targets End Target

1 2 3 4

Improved climate resilience of Tuvalu’s maritime sector

Climate resilient investments on Nanumaga constructed and operational (Percentage)

0.00 0.00 20.00 60.00 80.00 100.00

Reduction in cargo damage at Nanumaga (Percentage)

0.00 0.00 0.00 2.00 2.00 2.00

Climate resilient investments on Funafuti constructed and operational (Percentage)

0.00 0.00 20.00 50.00 100.00 100.00

Improved operations at 0.00 0.00 50,000.00 50,000.00 50,000.00 50,000.00


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RESULT_FRAME_T BL_ PD O


1 2 3 4

Funafuti port (Amount(USD))

PDO Table SPACE

Intermediate Results Indicators by Components

RESULT_FRAME_T BL_ IO


1 2 3 4

Component 1: Sectoral and Spatial Planning Tools

GIS database used to inform disaster preparedness and response (Text)

GIS database not established

GIS database not established

GIS database established

GIS database used to inform disaster preparedness and response



Component 2: Climate Resilient Infrastructure

Funafuti port paved with climate resilient design standards (Square Meter(m2))

0.00 0.00 3,000.00 6,000.00 6,000.00 6,000.00

Roads rehablitated (CRI, Kilometers) 0.00 0.00 0.00 5.00 5.00 5.00

Roads rehabilitated - rural (CRI, Kilometers)

0.00 5.00

Energy efficiency improvements at Funafuti Port (Megawatt hour(MWh))

0.00 0.00 0.00 12.00 12.00 12.00

Component 3: Strengthening the Enabling Environment

Successful implementation of the GBV Action Plan and VAC and Trafficking Strategy (Yes/No)

No Yes Yes Yes Yes Yes


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1 2 3 4

Number of individuals attending GBV, VAC and/or trafficking through trainings (Number)

0.00 0.00 10.00 20.00 30.00 30.00

Percentage of training attendees who demonstrated improved knowledge after GBV, VAC and/or trafficking training (Percentage)

0.00 0.00 60.00 60.00 60.00 60.00

An increase in the number of surivors seeking help (Percentage)

0.00 0.00 5.00 10.00 20.00 30.00

Number of women trained who receive counselling qualifications that meet Tuvalu’s minimum standards (Number)

0.00 0.00 0.00 10.00 20.00 20.00

Number of women who obtain employment in counselling (Number)

0.00 0.00 0.00 1.00 3.00 5.00

Citizen Engagement

Grievances registered related to delivery of project benefits that are addressed (Percentage)

0.00 100.00 100.00 100.00 100.00 100.00

Grievances responded and/or resolved within the stipulated service standards (Percentage)

0.00 0.00 75.00 75.00 75.00 75.00

Project-supported organization(s) publishing periodic reports on GRM and how issues were resolved



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1 2 3 4

[including resolution rates] (Yes/No)

Performance

Open Contracting used to publicize procurement data and updated on a monthly basis (Yes/No)


Unqualified audit with the time specified under the Legal Agreement (Yes/No)


IO Table SPACE

UL Table SPACE

Monitoring & Evaluation Plan: PDO Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

Climate resilient investments on Nanumaga constructed and operational

The percentage of completion of the construction and operation of climate resilient investments at Nanumaga (e.g., Nanumaga Harbor and road rehabilitation).

Every 6 months

Project progress reports


MCT

Reduction in cargo damage at Nanumaga Reduction of cargo damage as a percentage of cargo value

Every 6 months



MCT


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Climate resilient investments on Funafuti constructed and operational

The percentage of completion of the construction and operation of climate resilient investments on Funafuti (e.g., pavement rehabilitation and the warehouse/maintenance shed).

Every 6 months



MCT

Improved operations at Funafuti port

Reduction in costs of delays to Tuvalu from equipment failure and downtime (USD/year).

Every 6 months



MCT

ME PDO Table SPACE

Monitoring & Evaluation Plan: Intermediate Results Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection


A measure of whether the GIS database system has been established and used to informed disaster prepareness and response for the vulnerable communities identified

Every 6 months



MCT

Funafuti port paved with climate resilient design standards

A cumulative measure of the area of Funafuti port paved using climate resilient design standards

Every 6 months



MCT

Roads rehablitated Every 6 months

Project progress


MCT


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reports

Roads rehabilitated - rural Every 6 months

Project Progress Reports

Project Progress Reports

MCT

Energy efficiency improvements at Funafuti Port

A measure of annual energy savings through improved efficiency based on estimates from the Level 1 energy audit.

Every 6 months



MCT

Successful implementation of the GBV Action Plan and VAC and Trafficking Strategy

The GBV Action Plan and VAC and Trafficking Strategy will be used to guide the activities on the project to address GBV and VAC.

Continouous


Review of project progress reports

Supervision Consultant

Number of individuals attending GBV, VAC and/or trafficking through trainings

The GBV Action Plan and Child Protection Strategy calls for training programs to be conducted for workers on the project related to these issues. This indicator is a cumulative measure of the number of individuals trained on GBV, VAC and/or trafficking

Continuous


Review of project progress reports

MCT

Percentage of training attendees who demonstrated improved knowledge after GBV, VAC and/or trafficking training

Percentage of training attendees who demonstrated improved knowledge after GBV, VAC and/or trafficking training,

Every 6 months



MCT


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defined as an increase of at least 20% from pre- to post-test scores

An increase in the number of surivors seeking help

A measure of the increase in number of survivors (women) seeking services. Compiled monitoring data on GBV cases in the area is currently not collected, therefore the indicator is expressed as a percentage increase. Given that GBV-specific counselling and other support services have been limited in the project area, we would expect to see an increase in reporting of GBV cases as services become more widely available.

Quarterly

Service providers

Quarterly reports from service providers to input into Project progress reports

Service providers and MCT

Number of women trained who receive counselling qualifications that meet Tuvalu’s minimum standards

Number of women who receive training that meets the minimum standards required under Family Protection and Domestic Violence Act to become a qualified counsellor.

Every 6 months



MCT

Number of women who obtain employment in counselling

This indicator tracks how many women are anticipated to gain employment in counselling in Tuvalu through meeting

Every 6 months



MCT


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the minimum standards required under Family Protection and Domestic Violence Act to become qualified counselors, and the creation of counseling positions within government.

Grievances registered related to delivery of project benefits that are addressed

A measure of citizen engagement

Continuous (Project web site); Every 6 months (Project progress reports)

Project web site and project progress reports


MCT

Open Contracting used to publicize procurement data and updated on a monthly basis

Open Contracting see key data on contracts such as the award amount, variations, completion dates, etc., made public, it improves the overall transparency and governance on the project.

Continuous

Project web site

Review of currency of data on Open Contracting platform

MCT

Grievances responded and/or resolved within the stipulated service standards

The project's grievance redress mechanism (GRM) defines service standards for responding to and ideally resolving complaints(High/Medium/Low priority 5/10/30

Continuous (Project web site); Every 6 months (Project



MCT


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working days respectively) progress reports)

Unqualified audit with the time specified under the Legal Agreement

The audit for the project is accepted without any qualifications

Annual

Audit report

Review of Audit Report

MCT

Project-supported organization(s) publishing periodic reports on GRM and how issues were resolved [including resolution rates]

The project web site GRM publishes aggregate and disaggregate statistics on GRM resolution rates.

Continuous (Project we site); Every 6 months (Project progress reports)



MCT

ME IO Table SPACE


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ANNEX 1: DETAILED PROJECT DESCRIPTION

COUNTRY : Tuvalu


1. The SDR 14.50 million (US$20.00 million equivalent) MICRO will help support the GoTv to improve the climate resilience of Nanumaga Harbour and Funafuti Port and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. As part of MICRO the following Project Components are proposed, in line with the PCRTP SOP.

2. Component 1: Sectoral and Spatial Planning Tools (US$0.05 million including taxes and contingencies):

This Component finances a program of activities designed to improve preparedness and disaster response, as well as social resilience. The following sub-components are proposed:

(a) GIS-based Mapping (US$0.03 million). Persons with disabilities are often disproportionately affected

by disaster events as their needs might be overlooked or completely disregarded. The evacuation, shelter and recovery experiences of persons with disabilities may differ vastly from those without disabilities, for example, evacuation may not be possible if transportation is inaccessible.39 This activity will introduce the necessary tools and procedures to improve preparedness and post-disaster response for persons with disabilities and the elderly in the four selected outer islands including: (i) undertaking GIS mapping, data collection and data protection activities to collect and record the location and needs of vulnerable populations (e.g. medication requirements, disabled access needs) and the creation of evacuation plans; (ii) incorporating GIS data on vulnerable populations as a secure register in Tuvalu’s existing GIS platform; and, (iii) conducting training and capacity building activities in the areas of data collection, data storage, data security and protection, mapping and system maintenance within the Ministry of Lands. The activity will be pilot tested on the four outer islands of Nanumaga, Vaitupu, Nui, and Nanumea, where high levels of disability have been identified. So that sensitive information is appropriately protected, the project will ensure that the consultant hired to provide technical assistance to the designated focal point within the Ministry of Lands department will be required to make sure that: (i) context appropriate steps are taken to protect personal information during the collection and entry into the register; (ii) the register is designed to protect personal information, potentially in a similar modality to the GCLS; and, (iii) there is a sufficient regulatory framework for the register to protect personal information, such as through the development of register management procedures and protocols.

(b) Health Outreach Campaign (US$0.02 million). Given the potential for improved shipping operations to increase the importation of food such as sugar and flour that can increase the risk of non-communicable diseases such as diabetes, the project will provide support to the community to understand and manage the issues associated with a sustainable food supply. The distances from Funafuti, and dependence on infrequent ferry services mean that the Nunamunga community face challenges in ensuring a sustainable supply goods and food. Improved access is positive but developing locally grown fruit and vegetables will help to protect against uncertain delivery schedules and is also likely to have health benefits through improved nutrition. Support may include

39 www.ncd.gov/publications/2006/Aug072006.

http://www.ncd.gov/publications/2006/Aug072006


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advice from an agricultural specialist to support a community garden, and provision of training on suitable crops, production and ongoing maintenance; and support from a health professional on nutrition and associated lifestyle conditions.

3. Component 2: Climate Resilient Maritime Infrastructure Solutions (US$16.50 million including taxes and contingencies): This Component would construct resilient maritime, access and utility infrastructure. The following Sub-components are proposed:

(a) Climate resilient maritime and associated infrastructure on Nanumaga (US$13.00 million). This Sub-component will finance climate resilient and efficient maritime access infrastructure on Nanumaga, specifically:

• Workboat harbor: including a turning basin and breakwaters to improve safety and protect the channel and basin from wave action. The wharf structure will include access for passengers to the workboats, docking points for workboats from the interisland ferries, jetty access from the land side to the wharf for a loaded two-ton vehicle. Furthermore, space and capacity for the combined load of a small mobile crane with a lifting capacity of three tons and a vehicle to transport the related handled road is provided for. The passenger and freight jetties will be located on raised pile structures across the shoreline to reduce littoral drift impact. The structure will include an integrated landing craft ramp for cargo and climate response emergencies, a long passenger ramp that will enable lower stepped ramp angles for passengers with lower mobility, as well as sufficient area for cargo truck to turn around at the end of the structures. Access to the TOIMIP flex-mat will be provided, as well as AtoN and maintenance equipment, if required.

• Cargo shed/passenger holding areas: including gender segregated restrooms and provisions for persons with disabilities. The facilities will be self-contained including solar panels for electricity generation and rainwater harvesting facilities for water supply and will include space for a back-up generator in the event of an emergency.

• Upgrading of Nanumaga islands roads: including the paving of existing island roads in Nanumaga most likely using low-cost geo-cell technology.

Protection measures will be built into the project design to ensure sustainability and resilience of infrastructure investments in light of climatic changes. The proposed location for the maritime infrastructure is within the existing channel on Nanumaga, with the detailed design of the infrastructure works to be optimized and finalized by the design consultancy in consultation with the GoTv.

(b) Climate resilient maritime and associated infrastructure on Funafuti (US$3.50 million). This Sub-

component includes financing for activities associated with Funafuti Port including:

• The paving of an area of 6,000 m2 at the Funafuti container yard.

• Improvements to the existing warehouse to address flooding issues and redesign the interior to allow for a maintenance and operational improvements. If required, the construction of a new maintenance building within the port boundaries may be financed.

• A number of recommendations from the Green Energy Audit undertaken by the SPC will be financed including upgrading the yard and internal lighting to LED, installation of a yard


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lighting control system, installation of a solar system to supply the office, and purchasing high efficiency split system units instead of standard efficiency.

• The provision of handling equipment to improve port operations which may include reach stackers, and tractors and/or trailers to haul cargo to the cargo handling area.

4. Component 3: Strengthening the Enabling Environment (US$3.45 million including taxes and

contingencies). This Component will provide funding to support institutional and regulatory reforms, including measures to strengthen local capacity and to increase the sustainability of climate resilient maritime sector investments. Proposed activities under this Sub-component include:

(a) Providing Technical Assistance to MCT (US$2.10 million). The following activities are proposed under this Sub-component:

(i) Design infrastructure required for the project on Nanumaga and Funaufti (US$0.80 million). This will include the design of all infrastructure under the project including (i) maritime access infrastructure in Nanumaga; (ii) passenger terminal/cargo warehouse at Nanumaga; (iii) Pavement of cargo area at Funafuti port; and, (iv) improvements to the warehouse at Funafuti port. A design consultancy has already been engaged as part of the PPA to undertake the design of (i) and (iii).

(ii) Supervise civil works on Nanumaga and Funafuti (US$1.00 million). A supervision consultant will be engaged to oversee the civil works on Nanumaga and Funafuti.

(iii) Support port operations and improve safety oversight (US$0.20 million). The project will finance a maritime advisor for DPMS to support port operations and improve safety oversight. The advisors scope of work is anticipated to include an assessment and recommendation for improvement of the current cargo and container-handling operations at Funafuti port. The maritime advisor will also be expected to provide on-the-job training to DPMS staff.

(iv) Prepare and implement a GBV, VAC and trafficking action plan (US$0.10 million). This would include training, prevention and support activities designed for the maritime sector as discussed in the project’s GBV, VAC and trafficking strategy. Training on GBV, VAC and trafficking is proposed as well as the delivery of the courses listed below:

• GBV, VAC and trafficking training and support for select community groups and NGOs, selected in accordance with the criteria and procedures to be detailed in the finalized POM, to deliver GBV, VAC and trafficking prevention training in accordance with the GBV, VAC and trafficking strategy.

• GBV, VAC and trafficking training for the 10 vessels that monitor border control and clear vessels at Funafuti port including: (i) child safety and protection; (ii) child labor on boats and at ports; (iii) recognizing signs of abuse and exploitation of women and children; (iv) recognizing signs of trafficking on foreign vessels that dock at Funafuti port.

• GBV, VAC and trafficking training course for seafarers to be provided through the Maritime Training Institute of Tuvalu;

• Training on GBV, VAC and trafficking for the regular workers at Funafuti port and Nanumaga and the workers and managers that will be hired for the actual project;


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• Training for school teachers, counselors and supervisors on corporal punishment, positive disciplining, child abuse and exploitation, bullying and teenage pregnancies; and,

• Development of a community-based campaign/approach on GBV and VAC on Nanumaga.

(b) Providing Technical and Operational Assistance to MCT (US$1.35 million). This sub-component would finance the provision of technical, advisory and administrative support including:

(i) Project implementation and management (US$1.25 million). This sub-component will support MCT with the implementation of the project including financing of PMU staff and project operating cost (e.g. office space, utilities, equipment and auditing cost). It also includes the financing of procurement support provided by the TFSU for the implementation of the PPA and the preparation of safeguards documents.

(ii) Operating expenses (US$0.10 million). This would include the provision of office space, equipment, and supplies as required.

5. Component 4: Contingency Emergency Response (US$0.00 million). This Component is designed to provide swift response in the event of an Eligible Crisis or Emergency40 through a portion of the undisbursed project envelope to address immediate post-crisis and emergency financing needs. The CERC may be used following natural disasters or other crises and emergencies, allowing funds to be reallocated from other components of the project. The estimated costs of each Component and Sub-component are summarized in the table below.

40 Defined as “an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact associated with natural or man-made crises or disasters”, Paragraph 12, Bank Policy: Investment Project Financing, Projects in Situations of Urgent Need of Assistance or Capacity Constraints.


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Table 1.1 Project Cost Breakdown by Component and Sub-component

Component and Sub-Components IDA financing (US$ M)

1 Sectoral and Spatial Planning Tools 0.05

(a) GIS-based mapping 0.03

(b) Health Outreach Campaign 0.02

2 Climate Resilient Maritime Infrastructure Solutions 16.50

(a) Maritime and associate infrastructure on Nanumaga 13.00 (b) Maritime and associated infrastructure on Funafuti 3.50

3 Strengthening the Enabling Environment 3.45

(a) Providing Technical Assistance to MCT Design infrastructure on Nanumaga and Funafuti 0.80 Supervise civil works on Nanumaga and Funafuti 1.00 Support port operations and improve safety oversight 0.20 Prepare and implement a GBV, VAC and trafficking action plan 0.10 (b) Project Management Support Project implementation and management 1.25 Operating expenses 0.10

4 Contingency Emergency Response -

(a) CERC 0.00

Total 20.00

93. Climate resilience. A screening of the proposed project for short and long-term climate change and

disaster risks was undertaken using the World Bank Climate and Disaster Risk Screening Tool. Tuvalu is highly vulnerable to extreme weather and climate related impacts, which is exacerbated by the limited capacity and systems currently in place to identify and respond to disruptions from climate hazards. Thin institutional capacity and limited budget for operations and maintenance additionally exacerbates climate related impacts. MICRO will support the strengthening of the maritime sector through enhancing resilience of maritime infrastructure to climate change as well as improving the Government’s institutional capacity to plan for future change and proactively manage and maintain assets. Furthermore, MICRO makes use of the four-pillared approach under the PCRTP SOP and proposes a range of activities that focus on increasing resilience, and thereby enhancing sustainability.

94. As part of project preparation, Bank-executed funding from the GFDRR was obtained to finance the VA for Nanumaga. The aim of the VA was to help identify the most suitable location and layout for the proposed maritime access infrastructure in terms of climate resilience and safe access, and to inform the concept design of the proposed investment. Specifically, the vulnerability, and impact and cost of different harbor sizes for Nanumaga were assessed, with potential options ranging from limited interventions in the existing channel and upgrades to existing infrastructure to large-scale interventions allowing direct access for the Nivaga III (about 60 meters in length). Based on the recommendations of the report, in terms of climate resilience, environmental and financial factors, a smaller harbor allowing access for workboats only was deemed the most feasible option beyond making the current operation more efficient. In addition, following consultations with the community, the existing site location has been chosen as the location for investment.


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ANNEX 2: IMPLEMENTATION ARRANGEMENTS

COUNTRY : Tuvalu

Tuvalu Maritime Investment in Climate Resilient Operations Project Institutional and Implementation Arrangements 1. The project implementation period for MICRO is expected to be five years from the estimated effectiveness

date. The EA for MICRO will be MFED, while MCT will act as the IA for all components of MICRO.

2. The implementation of MICRO will be supported by a joint ADB-IDA PMU, which is a new arrangement for Tuvalu. The project will build on the lessons learnt through TvAIP as well as the ongoing ADB-financed TOIMIP and will make use of existing arrangements being utilized in country and within the maritime sector. The details of the implementation arrangements will be outlined in the finalized POM, which will be adopted by the IA. The project will benefit from the levels of support as highlighted in Figure 2.1 below.

Figure 2.1 ADB-IDA PMU Implementation Arrangements and Support Relationships

3. Program Manager. The Program Manager within the PMU is responsible for overseeing the two projects in

the sector – MICRO and TOIMIP – and will provide overarching support to both projects. The Program Manager is already engaged under TOIMIP and is being financed by the ADB.

4. Project Manager. The Project Manager within the PMU will assist the Program Manager and help alleviate high workload demands. The Project Manager will be engaged through the MICRO project and financed by IDA to provide hands on support for the implementation of MICRO. Oversight responsibilities will be shared between the Program Manager and the Project Manager.

Program Manager

ADB-Financed

Accountant ADB

ADB-Financed

Safeguards Specialist

World Bank-Financed

Technical Advisor /Project Contract

Manager

World Bank-Financed

Procurement Specialist

World Bank-Financed

Project Manager

World Bank-Financed


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5. Technical Support. Technical support will be provided by a range of specialists within the PMU including an accountant, safeguards specialist, technical advisor and procurement specialist. These specialists will be responsible for the respective technical aspects of project implementation. The accountant for the project is already in place and has been working on the implementation of TOIMP.

6. Technical and Fiduciary Services Unit (TFSU). Under TvAIP, TFSU has been engaged to help support the project. Under MICRO, an addendum to the existing Service Agreement between MCT and Tonga Airport Limited was undertaken to cover additional services assigned to the TFSUs safeguard consultants, including the preparation of the necessary safeguard documents to identify any potential environmental and social risks resulting from the project. The ESIA and ESMP for the project have been completed and disclosed. The TFSU will not provide support for the implementation of the Project, as this support is to be provided by the joint ADB-IDA PMU, however may be called upon should the safeguard documentation require updating.

Financial Management 7. Summary. The FM assessment was carried out in accordance with the “Principles Based Financial

Management Practice Manual” issued by the Board on March 1, 2010 which states with respect to projects financed by the Bank, the Recipient is required to maintain appropriate implementation arrangements which include – accounting, financial reporting, and auditing systems - adequate to ensure they can provide the Bank with accurate and timely information regarding the project resources and expenditures. Overall, the FM arrangements satisfy the FM requirements of the Investment Project Financing Bank Policy. The assessed FM risk of the project is considered “Substantial” due to the risk in retaining suitably skilled staff to complete the FM requirements of this project in a very low capacity environment. The main mitigating measures are to ensure throughout the project that there is a suitably qualified and experienced person to maintain the project accounts and that additional support be available to ensure accurate financial monitoring of the Nanumaga infrastructure contract.

8. Budgeting. At the direction of MFED and MCT, the project team will prepare annual work plans and budgets with appropriate levels of detail (for example: Component or Sub-component). A broad budget will cover the life of the project and a more detailed budget will be prepared at least three months in advance of the start of the year for each calendar year. The budget should be reviewed, and amended if required, at least every six months and when the contract price is confirmed for major contracts. The budget should be consistent with the procurement plan for procurable items.

9. Accounting and maintenance of accounting records. It has been agreed with ADB, who are financing a similar infrastructure development on another island, that the locally financed ADB accountant would also maintain the accounts for MICRO. The performance of the ADB accountant will be continuously monitored to ensure that these arrangements are adequate. There is also a recently employed project accountant for the World Bank -financed Energy and Connectivity projects who has been providing the initial support for the MICRO PPA and may provide additional assistance depending on the demands of the FM related work. Additional support may be required to manage the financial monitoring of the more complex contracts and there is a provision for a part time Project Technical Advisor/ Contract Manager. The project will finance a Deputy Project Manager to support the incumbent ADB-financed Project Manager. Based on the filling of all the above positions there are sufficient human resources to meet all FM aspects of the Project. Copies of all accounting records for the Project will be required to be maintained and made available to both auditors and


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the World Bank, as required. The project accounts will be maintained on Quick Books or MYOB.

10. Funds flow. A Designated Account in Australian Dollars already established for Preparation Advance No. V075 at the National Bank of Tuvalu will continue to be used to enable funds to flow from the World Bank to the Project (other disbursement methods are discussed in the disbursement section below). Withdrawal Applications will be prepared by project staff but MFED will be the authorized signatories for approving the Withdrawal Applications.

11. Internal controls (including internal audit). Particular care will need to be taken to ensure adequate segregation of duties of noncompatible tasks to reduce the risk of error and misuse of funds. This is often more challenging in smaller organizations and generally the project team will be responsible for generating and processing documentation and MCT and MFED staff will be responsible for the authorizations.

12. Periodic financial reporting. Unaudited interim financial reports (IFRs) of the project will be prepared on a quarterly basis. The financial reports will include an analysis of actual expenditure for the current period, year to date, and the cumulative to date, plus outstanding commitments, compared against the total project budget. The format will be developed and agreed by the IA and the World Bank before the due date for the submission of the first IFRs. The IFRs will be forwarded to the World Bank within 45 days of the end of each calendar quarter.

13. External audit. An annual audit of the project financial statements will be required to be undertaken by the Tuvalu Audit Office. The audited financial statements with accompanying audit report, and management letter must be received by the World Bank within six months of the end of the fiscal year and shall be made publicly available by the Recipient in a manner acceptable to the World Bank and in accordance with the provisions of the International Development Association General Conditions for IDA Financing, Investment Project Financing”, dated July 14, 2017.

Disbursements

14. Disbursement Methods and Supporting Documentation Arrangements. Four disbursement methods will be

available for the project: (a) advance; (b) reimbursement; (c) direct payment; and, (d) special commitment. Supporting documentation for disbursements will be outlined in the Disbursement Letter.

15. Given the type of works and services to be carried out under the Project, it is anticipated that the majority of disbursements will be made through direct payments to suppliers, contractors and consultants for eligible expenditures incurred under the Project. The minimum application level for direct payment is included within the disbursement letter.


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Table 2.1 Eligible Expenditures

Category Amount of the

Financing Allocated (expressed in SDR)

Amount of the Financing Allocated (expressed in

USD equivalent)

Percentage of Expenditures to be

Financed (inclusive of Taxes)

(1) Goods, works, non-consulting services, consulting services, Operating Costs, and Training and Workshops for the Project

13,630,000 18,800,000 100%

(2) Refund of Preparation Advance

870,000 1,200,000 Amount payable pursuant to Section 2.07 (a) of the

General Conditions

(3) Emergency Expenditures under Part 4 of the Project

0 0 100%

TOTAL AMOUNT 14,500,000 20,000,000

Table 2.2 Funding Sources

Source Amount (expressed

in SDR) Amount (expressed in

USD equivalent) Share of Total (%)

World Bank - IDA grant 14,500,000 20,000,000 100

Total 14,500,000 20,000,000 100

16. Disbursement conditions. The funds for the CERC are in disbursement Category 3, which is subject to the

disbursement condition detailed in Schedule 2, Section III.B.1.(b) of the Financing Agreement. This disbursement condition requires the following conditions to be met, to the satisfaction of the Association, prior to any funds being disbursed under disbursement Category 3 for Project activities under Part 4 of the Project (the CERC): (a) the Recipient has determined that an Eligible Crisis or Emergency (as defined in the Appendix to the Financing Agreement) has occurred, has furnished to the Association a request to include said activities in the CERC in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (b) the Recipient has ensured the preparation and disclosure of all safeguards instruments as may be required for said activities in accordance with the provisions of Section I.D.1 of Schedule 2 to the Financing Agreement and the CERC POM, the Association has approved all such instruments, and the Recipient has ensured the implementation of any actions which are required to be taken under said instruments; (c) the Recipient has ensured that the entities in charge of coordinating and implementing the Emergency Response Part have adequate staff and resources, in accordance with the provisions of the CERC POM, for the purposes of said activities; and, (d) the Recipient has adopted and maintained the CERC POM, in form and substance acceptable to the Association, and the provisions of the CERC POM remain, or have been updated in accordance with the provisions of Section I.E.2 to the Financing Agreement so as to be, appropriate for the inclusion and implementation of the CERC.


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Procurement 17. Implementation Agency. MCT is the implementation agency and responsible for all procurement processes.

For the implementation of the ADB financed TOIMIP, a PMU has been established within MCT. The existing PMU is being expanded to cover both TOIMIP and MICRO and additional resources will be financed by MICRO to strengthen the capacity of this PMU, including a procurement specialist and a contract management specialist.

18. Applicable procurement regulation. Procurement for the proposed project will be carried out in accordance with the World Bank Procurement Regulations for IPF Borrowers (Borrower Regulations), July 2016 (revised November 2017 and August 2018), and the provisions stipulated in the Financing Agreement. Procurement activities will use the Bank’s Standard Procurement Documents (SPD) where required or templates.

19. Procurement risk assessment. A procurement risk assessment of the IA been carried out. Key procurement risk areas include:

(a) Limited procurement capacity of MCT and PMU; (b) Limited national market; (c) Concerns on quality of procurement documents; (d) Limited capacity of contract management; and, (e) Delay in procurement process including bid evaluation.

20. To help mitigate these risks, the following mitigation measures were agreed with MCT:

(a) Expansion of the existing PMU for ADB financed TOIMIP in MCT to also cover MICRO including

procurement capacity building of MCT so as to better use the existing capacity in MCT; (b) Wide outreach to the marketplaces and exploration of joint procurement with ADB financed project

to attract more interest from the market; (c) The technical design to be prepared by the same consulting team for TOIMIP and MICRO so as to

better use the resources of the consultant; (d) Recruitment of a procurement specialist and, if needed, a contracts management specialist in the

PMU; and, (e) Close monitoring of procurement implementation by PMU and the Bank task team, including using

the World Bank’s Systematic Tracking of Exchanges in Procurement (STEP) system.

21. Procurement types. The various types of procurements to be financed by the proposed IDA grant and indicative cost estimate is detailed in the following table and in more detail below.


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Table 2.3 Procurement Types

Type of Procurement

1. Works (US$16.50 million equivalent)

2. Goods (US$0.1 million equivalent)

3. Non- consulting Services (US$0 million equivalent)

4. Consulting Services (US$3.4 million equivalent)

22. Procurement of works. The procurement of works will include maritime investments such as the

construction of the Nanumaga port and the paving of Funafuti container yard.

23. Procurement of goods. The procurement of goods may include the procurement of equipment and supplies for project management.

24. Procurement of consulting services (firms and individuals). It is anticipated that a firm will be employed

for construction supervision and several specialist individual consultants may need to be hired to either support project implementation on the ground or to assist the Government within the Maritime Sector.

25. Procurement Plan. A draft Procurement Plan has been prepared for the Project based on the analysis of

the PPSD which was developed by MCT.

26. Frequency of procurement supervision. In addition to the World Bank prior reviewing contracts, implementation support missions will be undertaken at least twice per year. One in five procurement packages not subject to World Bank prior review will be examined ex post on an annual basis.

27. Joint procurement. ADB is undertaking maritime investment in Nuitao under TOIMIP, which is located about 110 kilometers from Nanumaga. The project is similar in nature as MICRO in that they both involve the construction of maritime access infrastructure. The ADB and IDA have already successfully collaborated in a number of ways in Tuvalu including assisting MCT to establish joint PMU and undertake joint geotechnical investigations. The same design consultant team has also engaged MCT for TOIMIP and MICRO. With these factors taken into consideration, IDA and ADB are exploring the option to undertake the procurement of the civil works in Nanumaga jointly. The benefits would include a reduced workload for MCT, increased bidder interest, and likely lower costs associated with contractor mobilization.

28. The bidding process is anticipated to satisfy the requirements of both the ADB and the World Bank as specified in the respective Financing Agreements and cover the investments in the two islands under two

distinct lots, one for each island: (i) Package 1: Nanumaga; and, (ii) Package 2: Nuitao.

29. Open contracting. In limited capacity environments, ensuring that projects are progressing well and expenditures on contracts are managed appropriately often represents a significant challenge. To address this challenge on MICRO, the project will implement “Open Contracting” (OC). The aim of OC is to create transparency and ensure effective contract management through the publication of contract data and


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photos of contract progress on the project website. An indicator will be included within the Results Framework to track the use of OC for the project.

Environmental and Social (including safeguards)

30. MCT has had experience with the Bank’s Safeguards Policies and Procedures through the TvAIP for several

years. Furthermore, the support has been provided by the TFSU to include the development of the safeguards documentation for MICRO. The ESIA and ESMP provide guidance on the requirements for environmental and social safeguards management during project implementation.

31. During project implementation the PMU will retain at least one safeguards advisor to oversee the ongoing monitoring and data gathering, stakeholder engagements, contractor supervision, grievance redress mechanism and safeguards and community-related M&E. The advisor will also contribute to the terms of reference and outputs of technical advisory services funded by the project, to ensure that World Bank safeguards policies are integrated into the approach and outputs. The World Bank Safeguards team will provide ongoing implementation support.

Monitoring and Evaluation

32. Project M&E will be conducted on two levels: (i) periodic monitoring will involve bi-annual reports that track progress in terms of distribution of inputs, disbursement of funds, and achievement of targeted indicators, as outlined in the Results Framework in Section VII; and (ii) project evaluation, which measures outcomes achieved against the baseline indictors. The key instrument for evaluating MICRO are the indicators identified in the Results Framework.

33. The Bank will provide implementation support for the project on an on-going basis and visit Tuvalu every 3 – 6 months to monitor and evaluate progress.


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ANNEX 3: ECONOMIC ANALYSIS

COUNTRY : Tuvalu


1. The maritime sector is crucial for connecting Tuvalu’s outer islands to the main island of Funafuti. The infertile soil of the outer islands makes inhabitants heavily reliant on shipping operations, with most foodstuffs (excluding local foods such as fish, coconuts and some fruits), building materials, manufactured products, as well as critical emergency relief, imported from Fiji and distributed among the islands through inter-island vessels.

2. The facilities to be provided under the project are needed to improve infrastructure resilience and

consequently ensure the continued delivery of basic goods and access to critical services, including: (i) food and fuel; (ii) health care; (iii) emergency relief; (iv) education; (v) potential trade with Funafuti; and, (vi) other services, including communication between relatives and friends, among others, which is particularly challenging because of the geographical dispersion of islands in Tuvalu. The project addresses the community’s basic need for resilient, efficient and sustainable maritime infrastructure and services, which will contribute to improving the livelihoods and quality of life of people in Nanumaga.

3. Standard demand analysis for calculating the benefits of the project is not applicable for this project.

This is because the small population in the target outer islands would yield disproportionately low quantifiable benefits relative to investment costs. Instead, a basic needs or basic public goods and services provision perspective is more applicable. This considers that the without-project scenario would negatively impact livelihoods if the population is unable to import basic goods or have regular access to essential services. In addition, this project - by supporting those in great need living on remote outer-islands with limited access to basic infrastructure and services - at its very core supports the Bank’s overarching mandate of boosting shared prosperity.

4. Nanumaga Harbor. The key benefits expected from the investments include:

(a) Existing passengers. Improvements in time and convenience, amounting to about US$2 per person/trip/year.

(b) New passengers. With the improvements in facilities, it is anticipated that there may be more passengers utilizing the facilities, e.g., due to e.g. improved convenience, which would generate new economic activity in the value of US$3 per person/trip.

(c) Accidents – cargo. Another benefit comes from avoided accidents, which is estimated at 2 percent of the cargo’s value.

(d) Accidents – equipment. The benefits expected from avoided accidents. With project, about 50 percent of the accidents can be avoided.

5. Funafuti Port. The key benefits expected from improved efficiency in cargo handling, which is estimated

to be 3 percent.


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6. Thee economic analysis for both the Nanumaga harbor and Funafuti port cover the period of 20 years (2019-2023) with the discount rate assumed to be 4 percent and standard conversion factor of 0.92. Based on the investment cost of US$13 million for Nanumaga Harbor, the standard cost-benefit analysis against “do-nothing” alternative resulted in the EIRR of -6.9 percent with NPV of US$ -8.0 million. For Funafuti Port, based on the investment cost of US$3.5 million, EIRR was estimated to be 4.4 percent with NPV of US$0.13 million.

Table 3.1 Estimated NPV and EIRR

Activity Cost (US$ million) EIRR (%) NPV (US$ million)

Nanumaga Harbor 13.0 -6.9 -8.0

Funafuti Port 3.5 4.4 0.13

Total 16.5 -3.4% -7.9

7. As indicated, the small population in the outer islands yield disproportionately low quantifiable benefits

relative to investment costs. The project’s internal rate of return is lower than the economic viability threshold, particularly because of the high investment cost to serve Nanumaga. However, a key initiative of Tuvalu is to ensure that local communities are able to remain on the outer islands with sufficient livability condition, without having to migrate to Funafuti (which also has limited space). The project addresses the community’s basic need for resilient, efficient and sustainable maritime infrastructure and services, which will contribute to improving the livelihoods and quality of life of people in Nanumaga. The investment will lead to enhanced access for the people of Nanumaga, enabling the community to remain on the island through the continued provision of access to critical services and delivery of basic goods. Considering changes in climate, the investment will enhance the climate resilience of the infrastructure to ensure that future changes such as sea level rise, or an increase in frequency or intensity of extreme weather events are accounted for. Therefore, the project’s contribution to Tuvalu is more of social benefits, enhancing livability, and shared prosperity than of pure economics of the project.


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ANNEX 4: Gender Based Violence

COUNTRY: Tuvalu


1. Gender Based Violence (GBV). The project was screened using the Bank’s ‘GBV Risk Assessment Tool’ and was classified within the “Moderate Risk” category. As highlighted in Table 4.1, the project will undertake specific activities to address GBV, both for the potential induced impact from the project, and the underlying levels.

Table 4.1 Actions Included to Implement the GBV GPN Recommended Activities

Action to Address GBV Risks Timing for Action Who is Responsible

for Action Ongoing Risk Management

Actions Taken During Preparation/Appraisal

Sensitize the IA as to the importance of addressing GBV on the project, and the mechanisms that will be implemented.

• Preparation.

• Implementation.

• Task Team. • Task team to monitor and provide additional guidance as necessary.

• Discussions held with GoTv, NGOs, etc.

• GBV specialist undertook in country discussions and was involved in the preparation of the GBV, VAC and trafficking strategy.

• Project documents contain clear strategy for addressing GBV, VAC and trafficking.

The project’s social assessment to include assessment of the underlying GBV risks and social situation, using the GBV risk assessment tool to provide guidance and keeping to safety and ethical considerations related to GBV data collection. No prevalence data or baseline data should be collected as part of risk assessments.

• Preparation.

• Implementation (before civil works commence).

• Decision Review (GBV Risk Assessment Tool).

• IA for social assessment and ESMP.

• Contractor for C-ESMP.

• Task Team for GBV Risk Assessment Tool.

• Ongoing review during implementation support missions.

• Update project ESMP and Contractor’s ESMP (C-ESMP) if risk situation changes.

• During preparation discussions held with GoTv.

• Extensive work undertaken already through TvAIP.

• Project ESMP contains detailed guidance on how the project will address GBV, VAC and trafficking.

• Issues to be discussed during ESMP consultations.

Map out GBV prevention and response actors in project area of influence. This should incorporate an assessment of the capabilities of the service providers to provide quality survivor centered services including GBV case management, acting as a victim advocate, providing referral services to link to other services not provided by the

• Preparation.

• Implementation.

• IA. • Update mapping as appropriate.

• Previous work undertaken by TvAIP has identified Tuvalu’s national GBV prevention and response network on Funafuti.

• Nanumaga female community worker has been trained and is a qualified counsellor.


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organization itself.

Have GBV risks adequately reflected in all safeguards instruments (i.e., Project ESMP, C-ESMP)—particularly as part of the assessment in the ESIA. Include the GBV mapping in these instruments.

• Preparation.


• IA for social assessment and ESMP.

• Contractor for C-ESMP.

• Ongoing review during implementation support missions. Update project ESMP and Contractor’s ESMP (C-ESMP) if risk situation changes.

• The project ESMP will include these considerations. The requirements will be clearly defined in the bid documents, and the Contractor’s ESMPs will be reviewed to ensure that they are properly addressed before being accepted for implementation.

Develop a GBV Action plan including the Accountability and Response Framework as part of the ESMP. The contractor/consultant’s response to these requirements will be required to be reflected in their C-ESMP.

• Preparation

• Implementation (before civil works commence)

• IA. • Ongoing review during implementation.

• To be included as part of the ESMP.

Review the IA’s capacity to prevent and respond to GBV as part of Safeguard Preparation.

• Preparation.

• Implementation.

• Task Team. • Ongoing review during implementation support missions. Update project ESMP if risk situation changes.

• Included as part of ESIA.

As part of the project’s stakeholder consultations, those affected by the project should be properly informed of GBV risks and project activities to get their feedback on project design and safeguard issues. Consultations need to engage with a variety of stakeholders (political, cultural or religious leaders, health teams, local councils, social workers, women’s organizations and groups working with children) and should occur at the start and continuously throughout the implementation of the project.

• Consultations need to be continuous throughout the project cycle, not just during preparation.

• IA. • Monitoring of implementation of Stakeholder Engagement Plan.

• Ongoing consultations, particularly when C-ESMP is updated.

• Included under the Stakeholder Engagement Plan as part of the ESIA.

The Stakeholder Engagement Plan of the project, which will be implemented over the life of the project to keep the local communities and other stakeholders informed about the project’s activities, to specifically address GBV related issues.

• Consultations need to be continuous throughout the project cycle, not just during preparation.

• IA. • Monitoring of implementation of Stakeholder Engagement Plan.

• Ongoing consultations, particularly when C-ESMP is updated.

• Included as part of the ESIA.

Make certain the availability of an effective grievance redress mechanism (GRM) with multiple channels to initiate a complaint. It should have specific procedures for GBV including confidential reporting with safe and ethical documenting of GBV cases. Parallel GRM outside of the project GRM may be warranted for substantial to high risk situations.

• Prior to contractor mobilizing.

IA, but discussed and agreed upon with the Task Team.

• Ongoing monitoring and reporting on GRM to verify it is working as intended.

• The project will implement the same GRM approach successfully implemented for other projects in the Pacific, which includes specific processes for GRM. There will not be a separate/parallel GRM for GBV as it is a medium risk project.

Ensure IA has a GBV specialist to support project implementation. • Preparation. IA. • Ongoing reporting. • Given the risk profile of the project, a dedicated GBV specialist is not considered necessary. The project will engage a Safeguards Specialist to work with the PMU


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For supervision have a social /environmental specialist in the supervision consultant’s team with GBV specific skills to supervise issues related to GBV (e.g., supervise signing of Codes of Conduct, verify working GRM for GBV is in place, refer cases where needed) and work with GBV Services Providers as entry points into service provision to raise awareness of the GRM.

• During procurement evaluation process.

IA. • Ongoing reporting. • The TOR for the Supervision Consultant will require the team to have someone with experience in addressing GBV.

Projects which do not use loan/credit/grant proceeds to hire GBV service providers at the start of project implementation encourage Borrowers include an escalation clause in the Environmental & Social Commitment Plan (ESCP) should GBV risks become apparent over the course of the project implementation.

• Preparation. Task Team. • Task Team. • Not required. The project includes funding specifically to address GBV and this will be used to fund the services provider.

Develop a GBV Action plan including the Accountability and Response Framework as part of the ESMP. The contractor/consultant’s response to these requirements will be required to be reflected in their C-ESMP.

• Preparation.


IA. • Ongoing review during implementation.

• GBV Action plan including the Accountability and Response Framework will be developed.

.


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ANNEX 5: IMPLEMENTATION SUPPORT PLAN

COUNTRY : Tuvalu


Strategy and Approach for Implementation Support 1. MICRO will provide ongoing and regular implementation support. The support plan is based on previous

experience from other projects in Tuvalu as well as the project’s risk profile. The Government has had experience with World Bank projects, including TvAIP, and is familiar with the procedures and requirements. Additional support will be provided through the ADB-IDA PMU.

2. MFED, in consultation with MCT will determine the appropriate timing of semi-annual reviews, taking into consideration the availability of participants. The World Bank implementation review will cover non-technical aspects of the support including: (a) FM; (b) procurement; (c) implementation arrangements; and, (d) safeguards. In addition, field visits will also be undertaken to project sites. To the greatest extent possible, the World Bank will accommodate any written request for ‘as-needed’ support for the project, including fiduciary aspects.

3. Each implementation review mission will result in the production of a joint aide-memoire that will be discussed at a wrap-up meeting to be chaired by MFED. It is envisaged that the aide-memoire will provide an overall view of the current situation relating to project implementation, including findings and observations from the World Bank. Representatives from the relevant government departments will be invited to attend the wrap-up meetings. Furthermore, any adjustment requiring more frequent reviews will be discussed, agreed upon, and documented in the Aide-Memoire.

4. A mid-term review mission will be held not later than three years after the effective date, or such other period as may be agreed, and provides an opportunity to review the project and take stock of implementation progress. The Recipient shall prepare and furnish to the Association, at least one month before the date of the mid-term review, a report, integrating the results of the monitoring and evaluation activities performed and on the progress achieved in the carrying out of the Project during the period preceding the date of such report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives.

5. Following the mid-term review adjustments to project support may be required; the World Bank task team will work with the EA and IA to clarify the requirements necessary to effect any changes. Any changes to the project that require amendments to the Financing Agreement will require a formal request from the Government’s signatory to the legal agreement.

6. Six months prior to the closing date of the project, the Government will commence the preparation of its Implementation Completion and Results Report (ICR). The World Bank ICR author will participate in the final implementation review and will gather the necessary information to help prepare the ICR.


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Implementation Support Plan and Resource Requirements

7. Missions to support implementation for MICRO will be carried out every 3 – 6 months. At least once per year

the missions will include technical, fiduciary and safeguards team members, who will provide input into infrastructure design and construction, carry out post reviews on contract management, review safeguards compliance, and provide formal training where required. The implementation support plan will be reviewed annually to ensure that it meets the support needs of the project. The estimated level of annual support needed to implement MICRO is identified in the table below.

Table 5.1 Implementation Support Plan

Time Focus Skills Needed Resource Estimate Partner Role

First twelve months

Project launch and start-up

Task Team Leader Transport Analyst Technical Procurement Financial Environment Social Administrative Support Gender Specialist

Asian Development Bank

12-60 months Project implementation

Task Team Leader Transport Analyst Technical Procurement Financial Environment Social Administrative Support Gender Specialist

Asian Development Bank

Other

Skills Mix Required

Skills Needed Number of Staff Weeks Number of Trips Comments

Task Team Leader 8 per year 2-3 per year

Transport Analyst 8 per year 2-3 per year


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Technical 4 per year 2 per year

Procurement Specialist 3 per year 2 per year

FM Specialist 3 per year 2 per year

Environment Specialist 3 per year 2 per year

Social Specialist 3 per year 2 per year

Gender Specialist 3 per year 1 per year

Administrative Support 3 per year 0 per year

Partners

Name Institution/Country Role

Asian Development Bank Multilateral Development Bank

Maritime sector collaborator (Non-financial contributor)

Maritime Technology Cooperation Centre – Pacific Internal Maritime Organization (IMO)

Maritime sector collaborator (Non-financial contributor)


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ANNEX 6: SERIES OF PROJECTS

COUNTRY : Tuvalu

Tuvalu Maritime Investment in Climate Resilient Operations 1. PICs want and need to act urgently to improve the climate resilience of their transport networks. According

to the Pacific Possible Report on Climate Disaster and Resilience, roads, for example, account for more than 50 percent of the average costs of climate resilience for most PICs and exceed 90 percent of the average costs in Solomon Islands and Samoa.41 To address this challenge, the Pacific Climate Resilient Transport Program (PCRTP) Series of Projects (SOP) aims to finance activities to systematically improve the resilience of PICs’ transport networks to natural hazards and climate change.

2. The PCRTP SOP includes a series of independent projects to multiple Recipients whom are facing a common set of development issues. The SOPs share a common design to finance activities to systematically improve the resilience of PICs’ transport networks to natural hazards and climate change, while recognizing and providing flexibility to address the fundamental differences and needs of the countries included within the SOP. This means that though each project in the SOP follows the common design and is aligned with the overall program objectives, each project can be adapted to reflect the local realities and can move forward at its own pace. Each SOP therefore includes activities and investments at the country-level (Project), with each of the country projects being self-standing.

3. A key characteristic of this SOP approach is that each project in the series is self-standing once the template has been designed. This means that each project design in the series follows the program template but may be adapted to support the specific requirements from each individual country according to local realities and to move forward at its own pace (each country follows its own path based on its readiness). Most importantly, each of the projects is justified on its own merits even if the other projects under the program do not materialize.

4. PCTRP consists of the following four pillars:

(a) Pillar 1: Sectoral and Spatial Planning Tools. This involves technical assistance to support countries by bringing about transformative change in the way that climate change is addressed in the transport sector. New tools are now readily available to PICs and have the potential to work well in low capacity environments. For instance, all governments can mitigate the impact of climate change and extreme weather events by assessing the level of hazard frequency and severity and map this against major points of vulnerability along their transport network.

(b) Pillar 2: Climate Resilient Infrastructure Solutions. Complex design solutions are often not fit-for-purpose in Pacific island countries (PICs) due to their limited resources (human, fiscal and material). In most PICs, even vital, basic drainage is largely absent due to limited capital. Limited material resources create cost and environmental challenges when repairing, rehabilitating or

41 Pacific Possible: Climate and Disaster Resilience. World Bank, 2016. (Report No. 119111)


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building infrastructure. For example, coastal infrastructure may be strengthened to help protect ports.

(c) Pillar 3: Strengthening the Enabling Environment. Measures to strengthen the enabling environment include capacity building, and legal and regulatory reform. Investment in capacity building is essential because a consequence of PICs’ small populations is that few ministries have even one member of staff focusing on climate resilience and many working in infrastructure are not fully informed of the risks climate change and severe weather events pose to transport infrastructure. Therefore, project management support within key implementing entities will be a core component of delivery for all resilience projects. Support may include the provision of Climate Resilient Transport Advisers/Consultants to Ministries of Infrastructure or road authorities and resilience-related training and/or workshop(s) for relevant ministries and civil society organizations that deliver climate change related services for the transport sector. Key skills targeted for capacity building would include: coastal engineering, GIS and database analysis, hydrodynamic modeling, geo-morphology, project management, and monitoring and evaluation. The enabling environment will also be strengthened through new and amended legal frameworks that enable PIC governments to appropriate funding and create programs to strengthen resilience. On the regulatory side, reform will focus on updating design and planning standards and maintenance procedures, considering expected climate change. Creating incentives to support resilience-focused maintenance and fostering stakeholder engagement in the design of regulations are crucial for success. Possible measures include: fit-for-purpose obligations42, performance-based standards, technical standards, and codes of practice.

(d) Pillar 4: Contingency Emergency Response. Since PICs will remain vulnerable to climate change and severe weather events even with the successful implementation of the first three pillars, supporting post-disaster recovery will remain essential. Therefore, this component will focus on emergency repairs to infrastructure (e.g. roads, wharves, jetties, runways, bridges, seawalls) in case of a disaster event by including a “zero-dollar” CERC in the project design.

5. MICRO will be included in the PCRTP SOP and incorporates all four pillars that will help achieve the

overarching PDO.43 The overall risks associated with the program are deemed to be Moderate. Key risks and mitigation measures are outlined below:

(a) Sector strategies and policies. Climate and disaster resilience are recognized as a key

development challenge in PICs. In Tuvalu, there is support within the government to streamline climate resilience into sector activities, however an ongoing challenge will be to balance the range of investment priorities. The Project integrates climate resilient strategies (including design and spatial planning) to help mitigate risks.

42 An obligation that binds a counterparty to ensure works are designed and constructed for their intended purpose. A consultant or contractor then would be liable to the client (i.e. country) in a situation where it has not met the obligation (e.g. ensuring a road has been constructed to handle current and future climate change and severe weather events). 43 The first project, the Samoa Climate Resilient Transport Project (P165782) includes more information of the PCRTP SOP and the design template.


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(b) Institutional capacity for implementation and sustainability. Within Tuvalu, there is relatively weak institutional capacity for implementation and sustainability. The Project seeks to build capacity and support implementation agencies through activities that will strengthen the enabling environment. The Project will furthermore build on previous experience and seeks to implement further improvements through new arrangements, including strong collaboration with other donors in the sector.

(c) Fiduciary. The primary fiduciary functions will be performed by the IA. There is however, relatively weak fiduciary capacity, and mitigation measures informed by the FM and procurement assessments will be implemented and technical assistance provided. The overall outcomes are expected to be positive, with no significant risks or irreversible adverse environmental or social impacts envisaged.

(d) Other. The Pacific is vulnerable to disaster events that prove a challenge to ensuring long-term resilience. MICRO includes a CERC to help alleviate disaster response and recovery needs. The inclusion of a CERC furthermore provides flexibility and will help to minimize disruptions to achieving the outcomes of the program in the event of a disaster.


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ANNEX 7: CONTINGENT EMERGENCY RESPONSE COMPONENT

COUNTRY : Tuvalu


1. The CERC is a contingent financing mechanism available to gain rapid access to financing to respond to a crisis or emergency and provides for immediate rehabilitation or reconstruction needs without needing to first restructure the original project thus facilitating rapid implementation. The CERC minimizes time and effort needed to make available uncommitted funds from an IPF to finance urgent needs. Following an eligible crisis or emergency, the Recipient may request the Association to re-allocate project funds to support emergency response and reconstruction. This component would draw from the uncommitted grant resources under the project from other project components to cover emergency response. Key principles relevant to CERCs include: (i) focus on activities that can readily be implemented on the ground in the circumstances; (ii) favor smaller-scale, local activities generate buy-in and goodwill; (iii) keep the scope simple and realistic, especially where local conditions do not allow much situational analysis and, (iv) take advantage of working with and completing the activities of development partners to maximize impacts.

2. Consistent with Paragraph 12, Bank Policy: Investment Project Financing, the CERC will not finance

humanitarian assistance or relief. The CERC may finance works, goods, services, training or operating costs and should be implemented during the recovery stage (generally 3 months – 1 year following an event) as a financing bridge will the country is mobilizing other funding to help during the reconstruction period, as it should not finance activities related to medium – long term reconstruction or rehabilitation needs (Figure 6.1).

Figure 6.1 Utilization of the CERC

3. Tuvalu has previously been impacted by geophysical and weather related extreme events. The addition of the CERC component in MICRO allows for liquidity and quick response and will contribute to Tuvalu’s disaster risk management strategy and enhance resilience to a crisis of emergency event. The inclusion of the CERC


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in an investment operation provides advantages in that it establishes an ex-ante mechanism through which Tuvalu can rapidly fund its post-disaster needs. The reallocation of funds in an emergency would not cause series disruption to the implementation of the project and will follow the key principles relevant to CERCs as highlighted above.

4. Activation criteria. The project-specific CERC will be funded under the MICRO budget. Following an eligible crisis or emergency, the government would confirm the need to trigger the CERC, which would then be implemented in accordance with the rapid response procedures governed by the World Bank under Paragraph 12, Bank Policy: Investment Project Financing. In addition, the provisions of Paragraph 12, Bank Policy: Investment Project Financing, regarding “Projects in Situations of Urgent Need of Assistance or Capacity Constraints” apply to CERCs when they are triggered. The funding provision for the CERC is SDR0.00 million; however, can be increased by drawing down against uncommitted IDA funds under other components if necessary. The disbursement conditions detailed in Section III.B.1.(b) of Schedule 2 to the Financing Agreement detail the requirements to be met before the CERC funds would become available.

5. The request to trigger the CERC and seek approval of activities to be eligible expenditures for financing under Disbursement Category 3 (refer Table 2.1) is to be communicated to the World Bank’s Pacific Country Director by the Minister of Finance, or her/his delegate, in a letter. The letter should include information pertaining to: (i) the nature of the emergency, its impacts and confirmation of causal relationship (as supported by the “Declaration of Disaster”) between the event and the need to access the financing allocated to Disbursement Category 3; (ii) the nature of emergency activities (brief description); and, (iii) the CERC action plan of activities.

6. The Financing Agreement stipulates the establishment of adequate implementation arrangements,

satisfactory to the International Development Association (“the Association”), including staff and resources for implementation of activities under Component 4: Contingency Emergency Response, to the Bank for its review and approval. A draft CERC OM has been prepared for the project44 and in addition a CERC-specific ESMF will be prepared before activation of the CERC component at the latest along with the final CERC OM.

44 Tuvalu Maritime Investment in Climate Resilient Operations Project. Contingency Emergency Response Component – Operations Manual. September 2018.


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ANNEX 8: MAP OF TUVALU WITH PROJECT SITES