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Technical Assistance Consultant's Report Nauru: Sustainable and Climate-Resilient Connectivity Project

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Technical Assistance Consultant's Report Nauru: Sustainable and Climate-Resilient Connectivity Project Technical Assistance Consultant’s Report Project Number: 48480 December 2017 Nauru: Sustainable and Climate-Resilient Connectivity Project Financed by the Asian Development Fund Prepared by Cardno Emerging Markets Fortitude Valley, QLD, Australia For Ministry of Finance Implementing agency This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants TA-9009 Prepared for Asian Development Bank (ADB) 15 December 2017 15 December 2017 Cardno i Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants Contact Information Document Information Cardno Emerging Markets (Australia) Pty Ltd Prepared for Asian Development Bank Trading as Cardno (ADB) Project Name TA-9009 NAU: Level 11, Sustainability and Climate 515 St Paul's Terrace, Resilience in Nauru – Fortitude Valley, Project Preparatory Queensland 4006 Technical Assistance Australia (PPTA) Consultants File Reference TA-9009 NAU Final Report Telephone: +61 7 3369 9822 - Version 3.docx Facsimile: +61 7 3369 9722 Job Reference TA-9009 [email protected] Date 13 October 2017 www.cardno.com Version Number V3 Author(s): Approved By: Induni Senarath Effective Date 15/10/2017 Project Manager Date Approved: 15/10/2017 Document History Version Effective Description of Revision Prepared by: Reviewed by: Date 1 21/09/2017 First Submission Scott Keane Induni Senarath 2 13/10/2017 Second Submission Scott Keane Induni Senarath 3 15/12/2017 Third Submission Scott Keane Induni Senarath © Cardno. Copyright in the whole and every part of this document belongs to Cardno and may not be used, sold, transferred, copied or reproduced in whole or in part in any manner or form or in or on any media to any person other than by agreement with Cardno. This document is produced by Cardno solely for the benefit and use by the client in accordance with the terms of the engagement. Cardno does not and shall not assume any responsibility or liability whatsoever to any third party arising out of any use or reliance by any third party on the content of this document. 15 December 2017 Cardno ii Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants Acronyms and Abbreviations ADB - Asian Development Bank AIDS - Acquired Immune Deficiency Syndrome BCR - Benefit-Cost Ratio BNPL - Basic Needs Poverty Line BoM - Bureau of Meteorology BOQ - Bill of Quantities CAPEX - Capital Expenditure CAWCR - Centre for Australian Weather and Climate Research CBA - Cost Benefit Analysis CEO - Chief Executive Officer CDTA - Capacity Development Technical Assistance CHS - Circular Hollow Section CPU - Central Procurement Unit CRVA - Climate Risk and Vulnerability Assessment CS - Construction Supervision DCIE - Department for Conservation, Industry & Environment DDR - Due Diligence Report DFAT - Department of Foreign Affairs and Trade (Australia) DMF - Design & Monitoring Framework DWT - Deadweight Tonnage EA - Executing Agency EIRR - Economic Internal Rate of Return EMMP - Environmental Mitigation and Management Plans EMP - Environmental Management Plan ENSO - El Nino Southern Oscillation Index EO - Explosive Ordnance EOD - Explosive Ordnance Disposal ERMF - Environmental Risk Management Framework ERW - Explosive Remnants of War ESMP - Environmental and Social Management Plan FIRR - Financial Internal Rate of Return FMA - Financial Management Assessment FMICRA - Financial Management and Internal Control Risk Assessment FMIS - Financial Management Information System FMAQ - Financial Management Assessment Questionnaire FPL - Food Poverty Line GDP - Gross Domestic Product HIES - Household Income & Expenditure Survey HIV - Human Immunodeficiency Virus IA - Implementing Agency ICCP - Impressed Current Cathodic Protection IHO - International Hydrographic Organization IMO - International Maritime Organization IP - Indigenous People IPA - International Procurement Agent 15 December 2017 Cardno iii Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants IPSA - Initial Poverty Social Assessment IR - Involuntary Resettlement IRR - Internal Rate of Return ISPS - International Ship and Port Facility Security GAAS - Generally Accepted Accounting Standards GoN - Government of Nauru GPR - Ground Penetrating Radar GRM - Grievance Redress Mechanism GRT - Gross Registered Tonnage JICA - Japan International Cooperation Agency kPa - Kilo Pascal LOA - Length Overall M&E - Monitoring & Evaluation MDB - Multi-lateral Development Banks MetOcean - Meteorological and Oceanographic MOF - Ministry of Finance MOT - Ministry of Transport MOU - Memorandum of Understanding MPa - MegaPascal NGO - Non-Governmental Organization NOAA - National Ocean and Atmospheric Administration NPA - Nauru Port Authority NPDP - Nauru Port Development Project NPV - Net Present Value NRC - Nauru Rehabilitation Corporation NSDS - National Sustainable Development Strategy NUC - Nauru Utilities Corporation NZ - New Zealand O&M - Operations & Maintenance OIMIP - Outer Island Maritime Infrastructure Project OPEX - Operating Expenditure Pa - Pascal PAO - Procurement and Admin Officer PACCSAP - Pacific-Australia Climate Change Science and Adaptation Planning Program PDA - Project Design Advance PFS - Pre-Feasibility Study PFSO - Port Facility Security Officer PIANC - Permanent International Association of Navigation Congress (recently known as ‘The World Association for Waterborne Transport Infrastructure’) PNG - Papua New Guinea PPRA - Project Procurement Risk Assessment PPTA - Project Preparatory Technical Assistance PRA - Procurement Risk Assessment PRIF - Pacific Region Infrastructure Facility PV - Procurement Vouchers PVC - Polyvinyl Chloride REA - Rapid Environmental Assessment 15 December 2017 Cardno iv Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants RFP - Request for Proposals RDU - Radio Detection Unit ERMF - Risk Management Framework RO - Reverse Osmosis SBD - Standard Bidding Documents SCF - Shadow Conversion Factor SiD - Safety in Design SOE - State Owned Enterprise SPRSS - Summary of Poverty Reduction & Social Strategy SPS - Safeguard Policy Statement SPT - Standard Penetration Test STD - Sexually Transmitted Disease TA - Technical Assistance TEU - Twenty Foot Equivalent Unit THC - Terminal Handling Container TOR - Terms of Reference TTU - Trailer Unit UCS - Unconfined Compressive Strength ULS - Ultimate Limit State US - United States UXO - Unexploded Ordnance WACC - Weighed Average Cost of Capital WACOP - Waves and Coasts in the Pacific WSA - Water Supply Code of Australia NOTE In this report, “$” refers to US dollars unless otherwise stated 15 December 2017 Cardno v Final Report (Feasibility Report) TA-9009 NAU: Sustainability and Climate Resilience in Nauru – Project Preparatory Technical Assistance (PPTA) Consultants Executive Summary The island of Nauru has no protected port to facilitate international trade. Instead, general cargo unloading is conducted at sea by the transfer of individual containers by ship’s gear into small self- propelled barges which are then unloaded in the safety of a small harbor. Fuel imports and phosphate exports are handled at a separate facility which comprises two cantilevered loading arms. A complex system of anchored buoys and mooring chains enables these vessels to be held off the reef during transfer operations. This is only the case in limited / suitable conditions, beyond which the vessels are necessarily moved off the mooring system to prevent damage and / or grounding. In rough weather the transfer of cargo from vessel to barge is a dangerous operation which is often suspended until seas abate. Consequently the unloading of a container vessel can take several weeks to complete. Conversely the back loading of empty containers occurs in a reverse, time consuming operation and can also require significant time to achieve. The port is a lifeline to the people of Nauru since 95% of goods are imported to the country through sea. Food, diesel fuel, commercial and consumer goods are imported to Nauru through Aiwo harbor. Therefore, the country’s major economic operations rely on the availability of a reliable port. Only a minor amount of cargo is imported through air (via flights from Australia and Solomon Islands). The Government of Nauru has requested ADB for project preparatory technical assistance (PPTA) for the preparation of a project to improve the port facilities at Aiwo. The scope intended the construction of a wharf for berthing vessels, an approach causeway from shore to wharf, and replacement of derelict buildings with new structures for the harbor master’s office, staff amenities, gatehouse, plant workshop, secure fencing and a heavy duty industrial pavement in a container storage
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