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Solomon Islands National Infrastructure Investment Plan Draft Final Report, December 2012

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Solomon Islands National Infrastructure Investment Plan Draft Final Report, December 2012 Solomon Islands National Infrastructure Investment Plan Solomon Islands Government Ministry of Development Planning and Aid Coordination Draft Final Report December 2012 Solomon Islands National Infrastructure Investment Plan Draft Final Report, December 2012 Contents 1 Introduction 1 1.1 Purpose and Scope of the Report 1 1.2 About the SI NIIP 1 1.2.1 Purpose and Scope 1 1.2.2 The SI NIIP Process 1 1.2.3 Consultation and Participation 2 2 Infrastructure Provision 3 2.1 Physical and Demographic Context 3 2.1.1 Geography 3 2.1.2 Population 4 2.1 Demand for Infrastructure 5 2.1.1 Economic Growth 5 2.1.2 Location of Demand 5 2.1.3 Identification of Infrastructure Needs 6 2.2 Recent Donor Support for Infrastructure 7 2.3 National Planning 8 2.3.1 Absence of Spatial Planning 9 2.4 Sector Planning 9 2.5 Institutional Responsibilities 11 2.5.1 Transport 11 2.5.2 Water and Sanitation 12 2.5.3 Solid Waste Management 12 2.5.4 Energy/Power 13 2.5.5 ICT 14 3 Infrastructure Sub-sector Analysis 15 3.1 Background 15 3.2 Issues and Priorities by Sub-Sector 16 3.3 Transport - Land 17 3.3.1 Current Situation 17 3.3.2 Existing Strategies, Plans and Projects 18 3.3.3 Demand and Targets 19 3.4 Transport - Aviation 21 3.4.1 Current Situation 21 3.4.2 Airline Operations 22 3.4.3 Demand and Targets 24 3.4.4 Existing Strategies, Plans and Projects 24 3.5 Transport - Shipping 26 3.5.1 Current Situation 26 3.5.2 Demand and Targets 27 3.5.3 Existing Plans and Strategies 28 3.6 Water and Sanitation 29 3.6.1 Current Situation 29 3.6.2 SIWA Performance Review 31 3.6.3 Efficiency 32 3.6.4 Water Supply in Noro 32 3.6.5 Water Supply in Auki 33 3.6.6 Water Supply in Tulagi 33 3.6.7 Overall Performance of SIWA 33 3.6.8 Rural Water and Sanitation 34 3.6.9 Demand and Targets 34 3.6.10 Existing Plans and Strategies 35 3.7 Solid Waste Management 36 3.7.1 Demand and Targets 38 3.7.2 Existing Strategies and Plans 38 3.8 Energy/Power 39 3.8.1 Demand and Targets 41 3.8.2 Existing Plans and Strategies 41 3.9 ICT 43 3.9.1 Demand and Targets 47 3.9.2 Existing Plans and Strategies 48 4 Infrastructure, Climate Change and Disaster Risk Management 50 4.1 Background and Introduction 50 4.1.1 Natural Hazards 50 4.1.2 Climate Changes 50 i Solomon Islands National Infrastructure Investment Plan Draft Final Report, December 2012 4.2 Infrastructure and Provincial Exposure 51 4.3 Sub-sector Analysis of Climate Change and Disasters Impacts and Resiliency Options 54 4.3.1 Transport 55 4.3.2 Water Supply and Sanitation 57 4.3.3 Energy and Power 59 4.3.4 Information and Communication Technology 59 4.3.5 Solid Waste Management 60 5 Priority Infrastructure Investments and Sector Programmes 61 5.1 Prioritisation of Investments 61 5.1.1 Pre-screening 61 5.1.2 Project Size Threshold 61 5.1.3 The Multi-Criteria Analysis Framework 62 5.2 SI NIIP Prioritisation Methodology 62 5.2.1 Prioritisation Criteria 62 5.2.2 Climate Change and DRM Criteria Justification 63 5.2.3 Scoring System 64 5.2.4 Stakeholder Involvement 64 5.2.5 Identifying the Priority Projects 65 5.3 Analysis of Priority Projects 68 5.3.1 Responding to NDS Objectives and Provincial and Sub-sector Balance 68 5.3.2 Sensitivity Tests 70 5.4 Climate Change and Disaster Risk Management Analysis of Priority Projects 70 5.5 Sub-sector Priority Programmes 72 5.6 Summary of Priority Projects 76 6 Funding Strategy 77 6.1 Principals of the Strategy 77 6.1.1 Debt Management Strategy 77 6.1.2 Medium Term Financial Strategy 77 6.1.3 Leverage of Private Sector Involvement 78 6.1.4 Budgeting for „Whole of Life‟ Costs 79 6.2 Recent Infrastructure Funding 79 6.2.1 2011/2012 Budgets 79 6.2.2 Funding by Source 80 6.3 SIG Budget Process 81 6.3.1 Consolidated Fund 81 6.3.2 National Transport Fund 81 6.3.3 Sector Support 81 6.3.4 Community Service Obligations 82 6.4 State Owned Enterprises 82 6.5 Development Partner Priorities 83 6.5.1 Likely Funding Mechanisms 83 6.5.2 Sector Priorities 84 6.6 Public Private Partnerships 84 6.6.1 Opportunities 84 6.6.2 PPP Requirements 85 6.7 Overall Funding Envelope 86 6.7.1 DMS Debt Ceiling 86 6.7.2 Grant Funding 86 6.8 Summary 86 6.9 Funding Strategy 87 6.9.1 Overall Approach 87 6.9.2 Packaging and Programming of Projects 91 6.9.3 Financing Climate Change Adaptation and Disaster Risk Management 92 6.9.4 Funding Requirement Profile 95 7 Managing SI NIIP 97 7.1.1 Next Steps 97 7.1.2 The Role of SI NIIP in Government Planning 97 7.1.3 Monitoring and Review 98 7.1.4 Lessons Learned 98 7.1.5 Building Capacity 98 7.1.6 Institutional Strengthening within Sub-sectors 99 ii Solomon Islands National Infrastructure Investment Plan Draft Final Report, December 2012 List of Appendices A Project Sheets B Climate Change Project Assessments C Project Long-list D Responsibilities for Infrastructure E List of People Met F Reference Documents G Inventory of Transport Infrastructure H Project Multi-criteria Analyses List of Figures Figure 1.1 SI NIIP Process 2 Figure 4.1 Total Replacement Cost (USDm) 51 Figure 4.2 Average Annual Loss by Ward 52 Figure 5.1 Performance of Projects Against Criteria 70 Figure 5.2 Climate Change and Disaster Risk Management Decision Tree 71 Figure 6.1 Funding Strategy Methodology 88 Figure 7.1 Positioning of SI NIIP 97 List of Tables Table 1.1 Summary of Consultation Programme 2 Table 2.1 Provincial Characteristics 3 Table 2.2 Recent Donor Support for Infrastructure 7 Table 2.3 The Eight Objectives of the National Development Strategy 9 Table 2.4 Existing Sector Plans and Studies 10 Table 3.1 Overview of Key Infrastructure 15 Table 3.2 Summary of Roads by Class, Surface and Province 17 Table 3.3 Roads to be Rehabilitated under the TSDP 18 Table 3.4 Issues and Strategies, Transport - Land 19 Table 3.5 Ongoing and Proposed Projects, Transport - Land 20 Table 3.6 Airports in the Solomon Islands 21 Table 3.7 Government Airports - Facilities and Condition 22 Table 3.8 Current International Flight Operations 23 Table 3.9 Domestic Flight Passenger Numbers 23 Table 3.10 Issues and Strategies, Transport - Aviation 25 Table 3.11 Ongoing and Proposed Projects, Transport - Aviation 25 Table 3.12 Ship Arrivals at Honiara Port 26 Table 3.13: Number of Wharves and Jetties by Province 27 Table 3.14 Issues and Strategies, Transport - Shipping 28 Table 3.15 Ongoing and Proposed Projects, Transport - Shipping 29 Table 3.16 Households‟ Main Source of Drinking Water 30 Table 3.17 Households‟ Main Source of Water for Washing 30 Table 3.18 Household Sanitation 31 Table 3.19 Number of Staff per 1000 connections. 32 Table 3.20 SIWA Performance Indicators vs Pacific Benchmarks 34 Table 3.21 Issues and Strategies, Water Supply and Sanitation 35 Table 3.22 Ongoing and Proposed Projects, Water Supply and Sanitation 36 Table 3.23 Household Solid Waste Disposal 36 Table 3.24 Solomon Islands Waste Composition 37 Table 3.25 Honiara Waste Composition 37 Table 3.26 Issues and Strategies, Solid Waste Management 38 Table 3.27 Ongoing and Proposed Projects, Solid Waste Management 39 Table 3.28 Household Sources of Lighting 39 Table 3.29 Household Source of Cooking 40 Table 3.30 Generation Capacity and Peak Demands at SIEA Generator Locations 40 Table 3.31 Provincial Access to Electricity 40 Table 3.32 Issues and Strategies, Energy/Power 43 Table 3.33 Ongoing and Proposed Projects, Energy/Power 43 Table 3.34 Solomon Telekom Mobile Tower Locations 44 Table 3.35: Bemobile Tower Locations 45 Table 3.36 Prepaid Mobile Tariffs for Solomon Islands (November 2012) (USD$) 47 Table 3.38 Issues and Strategies, ICT 48 iii Solomon Islands National Infrastructure Investment Plan Draft Final Report, December 2012 Table 3.39 Ongoing and Proposed Projects, ICT 49 Table 4.1 Overview of Provincial Challenges related to Climate Change & Natural Disasters 53 Table 4.2 Summary of Impacts and Adaptation on Transport - Land Infrastructure 55 Table 4.3 Summary of Impacts and Adaptation on Transport - Aviation Infrastructure 56 Table 4.4 Summary of Impacts and Adaptation on Transport - Shipping Infrastructure 56 Table 4.5 Summary of Impacts and Adaptation on Water Supply Infrastructure 57 Table 4.6 Summary of Impacts and Adaptation on Sanitation Infrastructure 58 Table 4.7 Summary of Impacts and Adaptation on Hydroelectricity Infrastructure 59 Table 5.1 NDS Objectives 62 Table 5.2 Prioritisation Criteria 63 Table 5.3 Prioritisation Framework Scoring 64 Table 5.4 From Long-list to Priorities 65 Table 5.5 Key Projects Not in the Top Priorities 67 Table 5.6 Prioritisation Results Summarised by NDS Objectives (top 28) 68 Table 5.7 Priority Projects by Province 69 Table 5.8 Multi-sector, Sector Priority Programme 72 Table 5.9 Transport - Land, Sector Priority Programme 73 Table 5.10 Transport - Aviation, Sub-sector Priority Programme 73 Table 5.11 Transport - Shipping, Sector Priority Programme 74 Table 5.12 Water and Sanitation, Sector Priority Programme 74 Table 5.13 Solid Waste Management, Sector Priority Programme 75 Table 5.14 Energy/Power, Sector Priority Programme 75 Table 5.15 ICT, Sector Priority Programme 75 Table 5.16 Consolidated List of Proposed Priority Projects (not including ongoing and committed projects) 76 Table 6.1 2011 and 2012 Infrastructure Project Funding (SBD million) 79 Table 6.2 Summary Analysis of SOE Performance 82 Table 6.3 Forecast SIG Infrastructure Funding 86 Table 6.4 Funding Decision Tree Results (grouped by similar results) 89 Table 6.5 Programming of Priority Projects 91 Table 6.6 Financing Overview by Project for Integrating Climate Change Adaptation and Disaster Risk Management into SI NIIP priorities 93 Table 6.7 Project Funding
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