Social Safeguards Due Diligence Report

May 2021

Vanuatu: Interisland Shipping Support Project (Construction and Rehabilitation of Selected Domestic Wharves)

Prepared by the Ministry of Infrastructure and Public Utilities for the Republic of Vanuatu and the Asian Development Bank.

This social safeguards due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

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

Updated Social Safeguards Due Diligence Report

May 2021

VAN: Vanuatu Interisland Shipping Support Project (Construction and Rehabilitation of Selected Domestic Wharves)

Prepared By: Ministry of Infrastructure and Public Utilities (MIPU), Government of Vanuatu for the Asian Development Bank, Republic of Vanuatu, Vanuatu Interisland Shipping Project

Prepared For: Ministry of Finance and Economic Management (MEFM) – the Executing Agency, Ministry of Infrastructure and Public Utilities (MIPU) – Implementing Agency, Public Works Department – Implementing Agency

This report may not be amended or used by any person other than by the MIPU’s expressed permission. In any event MIPU accepts no liability for any costs, liabilities or losses arising as a result of the use of or reliance of the contents of this report by any person other than MIPU and the project donor agencies, the Asian Development Bank, and NZ MFAT.

CONTENTS

ABBREVIATIONS ...... iii

EXECUTIVE SUMMARY ...... iv

I. INTRODUCTION ...... 1 A. Purpose and Scope of Report ...... 1

II. PROJECT DESCRIPTION ...... 2 A. Background and Rationale ...... 2 B. Project Components ...... 4 C. Scope of Land Requirement and Impacts ...... 4

III. LEGAL POLICY AND FRAMEWORK ...... 21 A. Vanuatu Laws ...... 21 B. ADB SPS 2009 ...... 24 C. Government Approach ...... 25

IV. SOCIOECONOMIC INFORMATION OF PROJECT COMMUNITIES ...... 27

V. CONSULTATION, PARTICIPATION AND DISCLOSURE ...... 31 A. Process of Securing the Initial MOU/Agreement (years 2013-2016) ...... 31 B. Current Memorandum of Access and consultation between 2016 and 2021 ...... 32 C. Consultation in Addition to Securing Initial MOUs (2013-2016) ...... 35

VI. BUDGET AND FINANCING ...... 41

VII. GRIEVANCE REDRESS MECHANISM ...... 41 A. Grievance reporting ...... 43 B. Grievance monitoring ...... 44

VIII. MONITORING ...... 44

IX. INSTITUTIONAL ARRANGEMENTS ...... 45 A. Responsibilities to Monitor and Update the Due Diligence Report ...... 45 B. Long-term Lease Arrangements ...... 45

Appendix 1. Signed MOUs for Initial Access to Project Sites ...... 47 Appendix 2: List of Consultation Participants ...... 72 Appendix 3: Photos of MOU Signing and Team Members ...... 77 Appendix 4: Process of Securing Lease for Project Sites and Cost Estimate Per Site ...... 80 Appendix 5: Signed MOA and MOU Updates………………………………………………………..81 Appendix 6: Consultaton Records……………………………………………………………………..98 Appendix 7: List of Contacts of Each VISSP Site as at March 2021……………………………..101

TABLES Tables Table 1: Scope of Works, Ownership, Land Requirements, and Status of MOU 5 Table 2: Process of Securing Lease for Project Sites and Cost Estimation per Site (Provided by VPMU) 27 Table 3: MOU Signing (Initial Agreements 2013-2016) 33 Table 4: Current MOA Status 34 Table 5: Community Consultations 36 Table 6: Steps and Timeframes for Securing Long-Term Leases for the Sites 41 Table 7: Procedures for Resolving Grievances 44

APPENDICES 2016 Report Appendix 1. Signed MOUs for Initial Access to Project Sites ...... 46 Appendix 2. List of Consultation Participants ...... 71 Appendix 3. Photos of MOU Signing and Team Members ...... 76 Appendix 4. Process of Securing Lease for Project Sites and Cost Estimate Per Site ...... 79

2021 Updates Appendix 5 Signed MOA and MOU Updates………………………………………………………….81 Appendix 6 Consultation Records ( years 2019 – 2021) ...... ……...98 Appendix 7 List of Contacts for Each VISSP Site as at March 2021………………………………101

ABBREVIATIONS

ADB - Asian Development Bank AP - Affected persons/people CBO - Community Based Organization DD - Due Diligence DFAT - Department of Foreign Affairs and Trade DP - Displaced Person EA - Executing Agency GAP - Gender Action Plan GOV - Government of Vanuatu GRC - Grievance Redress Committee IPDS - Ifira Ports Development Services ITL - Ifira Trustees Limited MFAT - Ministry of Foreign Affairs and Trade (New Zealand) MIPU - Ministry of Infrastructure and Public Utilities MOA - Memorandum of Agreement MOU - Memorandum of Understanding NGO - Nongovernment Organization PIT - Project Implementation Team PMU - Project Management Unit TA - Technical Assistance TOR - Terms of Reference VISSP - Vanuatu Interisland Shipping Project VPMU - Vanuatu Project Management Unit

WEIGHTS AND MEASURES

ha - hectare km - kilometer m - meter square meter - m2

iii EXECUTIVE SUMMARY

The Vanuatu Interisland Shipping Support Project (VISSP) was approved as Loan 2820-VAN and Grant 0273-VAN on 30 Nov 2011 and involved the construction and rehabilitation of seven domestic wharves and jetties (subprojects) in Vanuatu including South Paray, Simonsen, Lenakel, Litzlitz, Lolowai, Loltong and Port Sandwich. VISSP commenced implementation in 2012 but works were halted in 2018 following government review of the project status which found inadequate designs had resulted in major construction delays. The review resulted in a decision to remove Lolowai and Loltong subprojects and commence redesign of the remaining five subprojects.

This Updated Social Due Diligence Report 2021 was prepared for the final five domestic wharves around Vanuatu utilizing previous reports from 2016 to 2020 and results of site visits and key stakeholder consultations until March 2021.

Three domestic wharf sites are on customary land including South Paray in Port Vila, Port Sandwich, and Litzlitz on Malekula Island. Also, one site is on public land (Simonsen on Santo Island) and one on leased land (Lenakel on Tanna).

Access to all the five project sites was obtained through signing of a Memorandum of Access (MOA) with respective customary landowners, leaseholders, and provincial governments. The first batch of memorandum of understanding (MOUs) were signed by the government for six sites in January 2014 and the last site on 12 February 2016. The MOAs were updated, and new documents were signed from 2016 to 2019 (see annex for copies).

In terms of land requirements, an estimated total 22,700 square meters (m2) of customary land (reclaimed seabed and land), will be required for the project in three customary-owned sites (South Paray, Port Sandwich and Litzlitz). This land will be leased by the government. Also, the project will utilize approximately 15,500 m2 of public land (Simonsen) and about 3,300 m2 of leased land for maintenance works (Lenakel).

In the overall implementation, planning, and design of the VISSP, the Government of Vanuatu has no intention of obtaining any of the land sites of the proposed wharf and jetty locations through a compulsory acquisition process. The Government does not intend to invoke the procedures under the Land Acquisition Act to compulsory acquire any of the project sites but instead each site will be accessed through MOAs, and long-term leases will be negotiated. Failure of negotiation will not result in compulsory acquisition.

From the findings of the community and other stakeholders’ consultations, customary landowners at the sites are supportive of the project.

iv I. INTRODUCTION

1. The Government of the Republic of Vanuatu (GOV) is receiving support from the Asian Development Bank (ADB) and New Zealand’s Ministry of Foreign Affairs and Trade to assist with the implementation of the Vanuatu Inter-Island Shipping Support Project (VISSP). The VISSP consists of two components: a civil works component of construction and rehabilitation of selected wharves; and the establishment of a subsidized shipping scheme to provide regular shipping services to remote islands using contracted private shipping operators.

2. The project consists of the design and construction/rehabilitation of five domestic wharves and jetties (subprojects) in Vanuatu; Litzlitz Wharf (Malekula), Port Sandwich Jetty (Malekula), Simonsen Wharf (Santo), Lenakel Wharf (Tanna), and South Paray.

3. The executing agency is the Ministry of Finance and Economic Management and the implementing agency is the Ministry of Infrastructure and Public Utilities (MIPU). The implementing agency is supported by the Vanuatu Project Management Unit (VPMU) established within the Prime Minister’s Office. The VPMU will manage the project on behalf of MIPU and will lead the design and implementation of the project. The VPMU is supported by a design consultant.

4. The category of the project has been classified as Category C for involuntary resettlement, according to ADB’s safeguard policies. This implies that the projects do not trigger any physical or economical displacement. No adverse social impacts are envisaged. Land required for the wharf constructions or rehabilitation work at the project sites will not be compulsory acquired. An initial outcome from the socioeconomic survey conducted for each of the subproject sites highlighted that the communities support the wharf construction project due to expected benefits from improved wharf infrastructure (there is no report of change to this support during the project implementation to date). There are also no expected physical or economic displacement resulting from the project. As there are no safeguards issues associated with the shipping subsidies component of the project, this report focuses on the civil works component of construction and rehabilitation of selected wharves

A. Purpose and Scope of Report

5. This report is the updated social safeguards due diligence report 2021 (DDR) for VISSP, originally prepared in 2016. The updated DDR is based on the revised scope for five sites and revised designs. The revised design was prepared following (i) technical review of the original design and partially constructed wharf components; (ii) further geotechnical, seismic, and other engineering studies; (iii) new design options assessment; (iv) discussions with key stakeholders and confirmation of preferred option; and (v) detailed design of the selected option.

6. The DDR is undertaken as a requirement to meet the social safeguard requirements of ADB as per the requirement for a Category C project, which implies that the projects do not trigger any physical or economical displacement, however it outlines the required access and lease requirements.

7. The report has been prepared by staff from the VPMU and the design consultant (Beca), with the VPMU providing all project information and records of consultation that have been led by the VPMU. Key sources of information for the DDR update include: (i) MFAT contract inception visit June 2019, ADB inception visit in December 2019 and inception reports; (ii) approved detailed engineering designs prepared by the design consultant; (iii) review of the original DDR undertaken in 2016; (iv) review of Vanuatu 2016 mini census; and (v) VPMU consultation records.

1 II. PROJECT DESCRIPTION

A. Background and Rationale

8. VISSP is a multi-donor program aimed at supporting and enhancing the shipping and maritime sector in Vanuatu, throughout all the six provinces of Vanuatu. The project is funded and supported by ADB, the New Zealand Agency for International Development, and the Vanuatu Government (GOV). The project is implemented by the VPMU.

9. The VISSP was approved as Loan 2820-VAN and Grant 0273-VAN on 30 Nov 2011 and involved the construction and rehabilitation of seven domestic wharves and jetties (subprojects) in Vanuatu including South Paray, Simonsen, Lenakel, Litzlitz, Lolowai, Loltong and Port Sandwich (refer to Figure 1 below). VISSP commenced implementation in 2012 but works were halted in 2018 following government review of the project status which found inadequate designs had resulted in major construction delays. The review resulted in a decision to remove Lolowai and Loltong subprojects and commence redesign of the remaining five subprojects.

10. A Project Implementation Team (PIT) was recruited by VPMU. The PIT was established in the latter part of 2015. Between late 2015 and July 2017, the PIT consisted of the Project Team Leader, Resident Engineer, Site Superintendent, Environment and Social Safeguards Specialist, Contract Administrator and Accountant. The PIT was accommodated with and worked closely with the local government Public Works Department. Following completion of the PITs contract in July 2017, VPMU appointed an international Project Manager to continue supervision of the VISSP contract and to resolve the legacies relating to design issues that had become apparent during project implementation.

11. The DDR is based on the detail engineering reports prepared for the South Paray (Port Vila), Lenakel, Litzlitz, Simonsen, and Port Sandwich wharves. The detailed design has been undertaken through an interactive process involving engagement with key stakeholders (including Government Departments, Department of Ports, Provincial councils, and customary landowners – see Section D (2)), intrusive site investigations, numerous site visits by the engineering design team, consideration of design options (through a Concept Design Report) and finally detailed design of the preferred option.

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B. Project Components

13. VISSP has three main components: (i) Component 1 – Construction, rehabilitation and improvements of new and existing wharf and jetty structures in selected sites within Vanuatu; (ii) Component 2 – Subsidizing of non-profitable routes in the provinces of TAFEA, SANMA and TORBA which are for isolated islands and isolated ports which the normal shipping routes by current vessels do not frequently service due to the high cost and low profitability; and (iii) Component 3 – Upgrading, revision and strengthening of Maritime Laws and Regulatory framework in Vanuatu with a view to ensuring the maritime and shipping laws in Vanuatu reflect the current international standards and become updated to better deal with the issues and challenges facing the shipping and maritime sector in Vanuatu currently and into the future.

14. This DDR covers Component 1. of the VISSP – construction and rehabilitation of domestic wharves and jetties in Vanuatu. Component 2 and 3 do not require physical works nor land acquisition. Component 1 comprises of five sub-projects including: (i) South Paray domestic wharf and channel construction (ii) Simonsen wharf rehabilitation (iii) Lenakel wharf rehabilitation (iv) Litzlitz wharf rehabilitation (v) Port Sandwich jetty construction

15. The current project scope as far as it relates to Component 1 is as follows: (i) South Paray (a) Wharf and ramp structure (b) Yard pavement and services including lighting (ii) Port Sandwich (a) Wharf and ramp structure (b) Pavement and services (c) Public shelter and toilet building (iii) Port Simonsen (a) Wharf and ramp structure (b) Yard pavement and services (c) Public shelter and toilet buildings (iv) Litzlitz (a) Wharf repairs (b) Lighting services (c) Buildings (d) Ramp structure (v) Lenakel (a) Wharf repairs (b) Lighting services (c) Buildings

C. Scope of Land Requirement and Impacts

16. A key consideration of the potential social impacts of the subprojects is the extent of land requirements to construct the wharf infrastructure, the nature of land ownership and the status of any land agreements. This is documented in the DDR for the VISSP but is summarized here.

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20. The New Zealand MFAT commissioned the Design Consultant on 23rd June 2019 to undertake the re-design of the partially completed South Paray Wharf and the ancillary works. The scope of works covered: (i) Wharf structure (ii) Rock revetment (iii) Dredging (iv) Mooring piles (v) Water supply (vi) Lighting and electrical (vii) Yard pavement and drainage

21. The South Paray domestic wharf facility comprises a ramp structure for landing craft and roll on roll off (RORO) ships, a finger structure, and a platform structure (the latter two structures for cargo ships). Pavement, lighting, water supply, stormwater, security, and other ancillary works are incorporated in the yard area.

22. The project site is on customary land adjacent to commercial leased lands. The channel is customary-owned. The wharf and landside infrastructure will be on a customary land which has been reclaimed by Ifira Ports Development Services (IPDS).1 The proprietor of the adjacent leased land and the area to be fenced and the new access road next to the reclaimed area is also on customary land. Previously, the site has been reclaimed by IPDS, a subsidiary of ITL, utilized as an area to store empty containers awaiting shipment. No ships or vessels use the area for berthing or docking.

23. A letter dated 4th September 2013 was provided by ITL, as lessee of the land space next to South Paray wharf site, granting VISSP support and access for construction works. The proposed works will not impact on ITL’s existing business as they can continue to operate during construction works on the adjacent site. A follow up Memorandum of Agreement (MOA) was signed on 12 February 2016 with two custom landowning groups, ITL and the government confirming landowners’ consent to construct the domestic wharf, granting long term access to the site after construction and dredging of the channel. The detailed designs have confirmed that there is no impact on the ITL. The new domestic port is constructed on reclaimed land adjacent to Lapetasi International Terminal and does not impact on any adjacent business.

24. In customary terms, the foreshore area where the proposed site of South Paray Wharf facility is to be constructed is a traditional and tabu site for the Matarau Tefeke Clan, who are a clan group on the island of Ifira. Ifira is the adjacent offshore island to the project site. However, the Matarau Tefeke have provided a written and express consent for the wharf to be constructed on the site, and also, they have performed a custom ceremony to clear the site in order for the construction to be carried out.

1 Typically, in Vanuatu, reclaimed customary land belongs to the customary owners which is the case here. The Vanuatu Government has an MOA in place and will negotiate a lease over the wharf and adjacent land.

8 Figure 4: South Paray Layout

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29. The scope of construction works for Simonsen includes: (i) Wharf and ramp including bollards and fenders (ii) Fender/ mooring piles (iii) Dredging (iv) Public shelter and toilet (including water tank and solar lighting as reserves) (v) Pavement and drainage (vi) Lighting (vii) Water supply to wharf (viii) Security hut, gate, and fencing

30. The layout plan is as per Figure 6.

31. Simonsen wharf is located on south-east of Santo and is located on public land. Since Independence in 1980, the whole land area, the international wharf and Simonsen wharf, have been part of a wharf concession arrangement. The Government now run and operate the wharf (previously it was the Northern Islands Stevedoring Company Limited).

32. Simonsen Wharf has been the longest established domestic wharf on Santo as a hub of all the shipping routes of the northern provinces.

33. The land site has no traditional and tabu sites located within its boundaries. It is also adjacent to a Santo Rotary Park. The wharf area has no fence and is accessible by a road and there is ample parking space and space for a construction camp. There are no residential homes or dwellings on the fence line or near the boundary but there is an emergency ambulance station located within the wharf area owned by a firm called Promedical. Promedical is not located within the wharf site and there are no impacts on this company. The company has leased this site (land title 03/1103/004) since January 2014 covering 1,500 m2 of land on the western side that is not impacted by this project. The remaining portion of the land on the eastern side still remains as public land (approximately 1 ha) occupied by Simonsen wharf. There will be no impacts on privately owned assets. The bid documents will require the Contractor to stage work to minimize the impact, including keeping sections of the existing wharf structure operational at all times.

3. Litzlitz (Malekula)

34. Litzlitz is located on the eastern side of the island. The existing wharf site belongs to the customary landowners (one clan) who reside within Litzlitz Village. There is a public access road that connects the main road to the wharf through two (2) adjacent commercial lease titles held by the MALAMPA Provincial Council. The two commercial lease titles are 09/0703/003 and 09/0703/004. This can be seen in the sketch map in Figure 7.

11 Figure 6: King Pile/Sheetpile Layout Plan

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41. During construction, there will be no major impacts to the economic activity and shipping operations, as there are alternative sites for berthing. Twelve trees are to be removed but these have no environmental, economic of cultural significance. There are no impacts on privately owned assets. The bid documents will require the Contractor to stage work to minimize the impact by keeping the existing wharf structure operational. The construction works will provide employment opportunities for locals which is a positive economic impact. Also, copra and cocoa production and shipment to Santo or Vila can be managed at alternative sites. Post construction, the perceived economic impacts for having a safe and durable wharf facility in Southern Malekula are positive since the community never had a fit-for-purpose wharf in the area. It will save time and fuel costs for many traders of cocoa and copra as they will not need to travel all the way to Litzlitz and Norsup, therefore, reducing overhead costs.

42. The current scope of construction works for Port Sandwich (Figure 13) includes: (i) New wharves including bollards and fenders (ii) Fender/ mooring piles (iii) Rock revetment (iv) Public shelter and toilet (including water supply tank and solar lighting) (v) Pavement and drainage (vi) Lighting (vii) Reinstatement of the navigation aids at Planters Point

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(ii) Article 74: The rules of custom shall form the basis of ownership and use of land in the Republic of Vanuatu. (iii) Article 75: Only indigenous citizens of the Republic of Vanuatu who have acquired their land in accordance with a recognized system of land tenure shall have perpetual ownership of their land. (iv) Article 78 (2): The Government shall arrange for the appropriate customary institutions or procedures to resolve disputes concerning the ownership of custom land.

53. Customary ownership, government-controlled land, leases, and restrictions on land transfers are further detailed below.

54. Customary Ownership. Traditionally Ni-Vanuatu viewed owning the land and using the land as two separate things where individuals and small family groups could have individual usage rights to the land without ‘ownership’. While customary rules for ownership vary across the country, ownership is normally entrusted to individuals or small family groups.

55. Government Controlled Land. Chapter 12 of the Constitution begins by stating all land is owned by the customary owners, but it also allows the government to acquire land if it is in the public interest and to redistribute it to other customary owners. These provisions have been translated to regular domestic law.

56. Leased Land. Land can be leased for a period of up to 75 years. Leases are administered under the Land Leases Act by the Government on behalf of the customary owners. This system allows the government to oversee lease transactions in accordance with article 79 of the Constitution. Leases are evidenced by registration in the Land Leases Register and can be transferred, mortgaged, subleased, or disposed of in a will subject to the Land Leases Act.

57. Restrictions of Land Transfer. Only Ni-Vanuatu and the government can own land and there is no system of freehold (at least rurally), so in that respect land sales and transfer are highly restricted.

2. Land Leases Act [CAP. 163]

58. This is the primary legislation in Vanuatu that provides for the leasing of land in Vanuatu. Under this law, the system for creation, management, administration, and enforcement of leases are created. The Act gives necessary powers and duties to the Minister of Lands and Director of Lands for the management and administration of leases. For many persons who have leases in Vanuatu, whether as an individual, corporation, organization or group, the Act provides security over their leases and regulates the contractual relationship that is established under a lease instrument. An important administrative body is also set up under the Act which is called the Land Management & Planning Committee (LMPC), to which their role is to process, determine and recommend approvals of leases to the Minister of Lands. This is the key legislation when it comes to management and administration of land dealings in Vanuatu, especially relevant to land sites where construction of wharves and jetties will be constructed and having leases already existing.

22 3. Land Surveyors Act [CAP. 175]

59. This is a legislation which deals with the role of surveyors and the practice of surveying. Surveying of land for the creation of leases are to be done by registered and certified surveyors. But also, the Act sets down standards for surveying and mapping of land which ought to be applied. This legislation is relevant for proposed construction of wharves and jetties as it will provide the necessary steps for mapping and surveying land space for construction as well as using standard surveying practices to identify boundaries and marks prior to commencement of construction. An important feature of wharves and jetties are that they are structures built on the foreshore and so surveying and mapping are essential tools for assisting construction and foreshore development.

4. Land Acquisition Act (1992) [CAP. 215]

60. The Act sets out procedures for exercising the government’s powers to acquire land in the public interest. The first step is a decision by the minister that particular land is required for a “public purpose”, which the Act defines as “utilization of land necessary or expedient in the public interest and includes a purpose which under any other written law is deemed to be a public purpose”. It follows a sequence of steps, from initial notification and investigation to notice of intended acquisition, any appeals, an inquiry into compensation, any further appeals, payment of compensation and taking of possession. The Act allows the government to acquire both customary and leased or alienated land, but in practice the government usually negotiates with landowners to avoid compulsory acquisition.

5. Land Reform Act [CAP. 123]

61. This Act specifies that all land titles will be customary held by traditional owners, whose lineage can be traced back 200 years. It separates and makes important distinctions between indigenous owners and non-indigenous land users. This was aw that was enacted in the early part of the 1980’s to allow the Minister of Lands to act on behalf of customary landowners on lands which are in dispute but have actual developments and dealings occurring on them.

6. The Customary Land Tribunal Act No. 7 of 2001 [CAP. 271]

62. An Act that set up a new system for dealing with customary land disputes since 2001. It sets up the process for Land Tribunals to be set up from Village, Area, and Island Land Tribunals. However, this Act has since been repealed in 2013 and a new legislation for managing customary land disputes is now in place. It is important to note that for some of the proposed sites for construction of wharves and jetties in the VISSP, there has been decisions and declarations made by respective Land Tribunals on confirming the proper custom landowners. Those decisions are valid and effective and are not affected by the repealing of this Act. A transition clause under the superseding legislation allows for the continuation of such declarations.

7. The Customary Land Management Act No. 33 of 2013

63. A new legislation passed in 2013 and responsible mainly for installing a new system and new set of procedures for the resolution of land disputes over customary land between disputing parties. It also sets up a process of managing and resolving land disputes. It creates a new Office to oversee, implement and enforce the new legislation called the Customary Land Management Office. It is now formalized that customary institutions termed ‘nakamals’ and ‘custom area land tribunals will resolve customary disputes. This Act substitutes the jurisdiction of the formal courts

23 to resolve customary land matters. Formal courts still have jurisdiction to deal with matters relating to land which are subject to the Land Leases Act [CAP. 163]. A properly constituted decision of a nakamal becomes recorded interests in land which are binding in law and are not subject to appeal to, or judicial review by, any Court of law. Any new and fresh disputes by parties over customary land must be channeled through the Customary Land Management Office.

8. Quarry Act No. 9 of 2013

64. This legislation provides powers and duties to the Commissioner of Mines to issue quarry permits to either landowners, companies, or the State to carry out a quarry operation on any land area after completing the appropriate requirements. The Act also states the process for ensuring safe quarrying methods, management of quarry operations, payment of royalties and penalties for any breaches by quarry operators.

9. Environmental Management and Conservation At [CAP. 283]

65. This legislation empowers the Director and Department of Environmental Protection and Conservation (DEPC) to conduct an overall management over the environment of Vanuatu. It contains powers and duties to regulate any activity that may have environmental impacts. It allows processes for EIA’s, SEMP’s, IEA’s, and other types of environmental studies that are prerequisites to approval for any construction or development works. The legislation also covers matters relating to pollution. All the various sites where proposed wharves and jetties will be constructed will be subject to certain environmental studies and reports.

10. Foreshore Development Act [CAP. 90]

66. This is a legislation that regulates all types of development on the foreshore and places the powers of approvals for any foreshore development with the Minister for Internal Affairs and administrative duties for screening applications with the Physical Planning Unit. The Act creates a checklist and set of criteria for all applications for permits to carry out any development on the foreshore. Given that VISSP will be constructing wharves and jetties on the foreshore area of each site, a Foreshore Development Consent (FDC) will have to be applied for and issued before any construction commences.

11. Municipalities Act [CAP. 123] & Decentralization Act [CAP. 230]

67. Both these legislations are principal legislation that establish local authorities such as Municipal Councils and Provincial Councils. These authorities have powers to make by-laws covering relevant activities such as issuance of building permits, regulation and management of traffic, noise control regulations and overall authority to manage impact of construction activities in their local jurisdiction. For all areas where wharves and jetties will be constructed or repaired, the VISSP will have to ensure that relevant permissions and authorization are acquired from the Local Authorities.

B. ADB SPS 2009

68. The ADB's Safeguard Policy Statement (2009) requires ADB-assisted projects to: (i) avoid involuntary resettlement wherever possible; (ii) minimize involuntary resettlement by exploring project and design alternatives; (iii) enhance, or at least restore, the livelihoods of all affected persons in real terms relative to pre-project levels; and

24 (iv) improve the standards of living of the affected poor and other vulnerable.

69. It covers both physical displacement (relocation, loss of residential land, or loss of shelter) and economic displacement (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of land acquisition or restriction on land use or on access to parks and protected area.

70. The key principles of the ADB safeguards policy on resettlement are as follows: (i) Screen early the projects resettlement impacts and risks; (ii) Carry out meaningful consultations with participation of affected persons (APs)/Displaced persons (DPs), inform all APs/DPs of their entitlements and resettlement options. Pay particular attention to the needs of vulnerable groups; (iii) Establish a grievance redress mechanism; (iv) Improve, or at least restore the livelihoods of all APs/DPs through (i) land- based resettlement or cash compensation at replacement value as relevant, (ii) prompt replacement of assets, iii) Prompt compensation at full replacement cost, and iv) additional revenues and services through benefit sharing schemes where possible; (v) Provide APs/DPs with needed assistance including i) if there is relocation, secured tenure to relocation and better housing; ii) transitional support and development assistance; and iii) civic infrastructure and community services as required; (vi) Improve the standards of living of the displaced poor and vulnerable groups to at least national minimum standards; (vii) Develop procedure in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement; (viii) Ensure that APs/DPs without titles are eligible for resettlement assistance and compensation for loss of non-land assets; (ix) Prepare a RP elaborating on APs/DPs entitlements, income, and livelihood restoration strategy; (x) Disclose a RP in an accessible place and a form and languages understandable to the APs/DPs and other stakeholders; (xi) Conceive and execute resettlement as part of a development project or program; (xii) Provide compensation and other entitlements before physical or economic displacement; and (xiii) Monitor and assess resettlement outcomes and their impacts on the standards of living of APs/DPs.

C. Government Approach

71. In the overall implementation, planning, and design of the VISSP, GOV has no intention of obtaining any of the land sites of the proposed wharf and jetty locations through a compulsory acquisition process. The Government does not intend to invoke the procedures under the Land Acquisition Act to compulsory acquire any of the project sites but instead each site will be obtained through lease or negotiated settlement. Failure of negotiation would not result in compulsory acquisition and the project will not proceed until there is a voluntary agreement on land use/lease.

72. GOV’s priority is to ensure that wharves and jetties are built or repaired properly. Thus, the GoV originally entered into an MOU (now a MOA) with each landowner or leaseholder to be able to construct each of the domestic wharves in the five subproject sites (Port Vila, Santo, Malekula, and Tanna). After wharf construction, the GoV will then work closely with the customary landowners, local authorities, local stevedores, shipowners, and community groups to set up

25 formal entities to ensure long term access to the site for regular maintenance after construction and effective and efficient management of each wharf. This will be achieved through negotiation of long-term lease agreements (see Section 6 below for process on how the Government will secure long term leases).

73. Given this approach, GOV will be required during the lease agreement process to agree a fair and reasonable lease payment. This will be done through a one-off payment and ongoing annual lease payments depending on what is negotiated with landowners (see Table 2 below).

Table 2: Process of Securing Lease for Project Sites and Cost Estimation per Site (Provided by VPMU)

26 IV. SOCIOECONOMIC INFORMATION OF PROJECT COMMUNITIES

A. Port Vila Domestic Wharf- South Paray Bay

74. South Paray is adjacent to the existing Star (Lapetasi) wharf on the inner Paray Bay of Port Vila. The site is along a submerged coral reef connecting the mainland and Iririki Island. The area is used by inter-island ships, the Patrol Boat, the Tuna Fishing Company, Fisheries Department, and recreational vessels. With a domestic wharf, South Paray, when complete, is expected to contribute much social development activities especially for women in the immediate vicinity.

75. Based on the 2016 Mini-Census2 Port Vila’s population has increased by 3% from 2010 to 2016 (50,944). In 2016 there were 10,965 private households, between 2010 and 2016 the number of private households have increased by approximately 12%.

76. As of 2010, 64% of the population is in the productive age group of 15 to 59 years to take care of 36% of the dependent population. The average monthly income per households is 104,100Vt. and average per capita income being 20,400Vt. The average monthly household expenditure is 102,700Vt. and per capita expenditure is 20,300 Vt. Both income and expenditure are highest here compared to other parts of Vanuatu.

77. 2016 statistics showed that Port Vila had 71% of households earning income through wages and salaries, the second main household income source was household sales, this includes sales of fish, crops, and handicrafts. Coconut crops are the most common household cash crop.

78. Port Vila is the seat of the National Government and houses many of the political party offices.

79. Population growth is the result of migration from the rural areas, as people move to the town in search of employment, education and access to better services and the attractions of urban life. Many live in informal settlements around Port Vila’s peri-urban areas. They live in overcrowded, unsanitary conditions and substandard housing due to the acute shortage of affordable housing and the high cost of living in the town. It was noted in 2016 that 49% reported improved sanitation facilities and 51% reported that the sanitation conditions had not improved.

80. Hardships exacerbated by increasing unemployment, housing, high cost of education, over- crowding, informal settlement, petty crimes, prostitution, child-labor, over-supply of labor force, school-leavers and the urban affluence are among the challenges facing the people in their everyday life.

81. In Shefa (the whole province including Port Vila) as of 2016, 76% of children attending school are at primary level and 20% of children are not in schools (this is higher at secondary school level). There are more males attending school than females.

82. In terms of opportunity for young people, Port Vila offers continuing education and job-skills training. There are several vocational and training institutes including the University of the South Pacific, the Chamber of Commerce and Industry and the Hospitality, Tourism and Catering Schools. Collectively Port Vila houses the highest number of the student population in the country.

2 The 2016 Post Pam mini census was carried out to update statistics on the population and socioeconomic development, after the Tropical cyclone (TC) Pam, throughout all the provinces of Vanuatu. Population characteristic is vital information about Vanuatu and individual provinces.

27 At least 35% of these students come from all parts of Vanuatu in search for higher standard and quality of education and training that would lead to wage employment. In 2016, 1,055 people were engaged in tertiary level education.

B. Simonsen- Santo

83. Simonsen wharf is located on Santo Island in Luganville Town, close to the airport on the way to the Luganville shopping center, it is part of the Sanma Province. It is the most important and active facility serving the northern provinces of the country including Torba, Malampa, Sanma and Penama. These four provinces are the home provinces of 52% of the total population of Vanuatu (2009 Census). The wharf area is quite spacious for parking vehicles having a good width and surface area which can accommodate more than 7-10 small vessels at one time. Many traders do business at Simonsen and when ships call, the wharf area is often quite busy. However, the wharf badly needs repair.

84. As of 2016, Luganville has a population of 15,865 (5% increase since 2010), made up of 3024 private households (12% increase since 2010). Approximately 40% of households in Luganville had more than 6 per household.

85. In 2010 60% of the population is in the productive age group of 15 to 59 years to taking care of 40% of the dependent population. The average monthly income per households was 74,100 Vt. With an average per capita income of 13,200 Vt. The average monthly household expenditure is 77,700 Vt. and per capita expenditure is 13,900 Vt. The highest source of household income in Luganville in 2016 was wages/salary (58%) with owning a business being second. In 2016, 62% of those surveyed reported the main activity in the last 7 days as being employed, unpaid work was also high (38%).

86. Within the Sanma province there are more children attending school in primary level (comparative to other levels of education), more males attending school than females, and 1 out of every 4 children are not in school. The highest levels of non-attendance (school-aged children not in school) is at Preschool and Senior Secondary School level.

87. Improving the wharf for domestic shipping will enhance inter island shipping services which would directly improve economic development through trading of goods and services.

C. Litzlitz Malekula

88. Litzlitz wharf is located in the eastern side of Malekula Island of Malampa Province, on the outskirts of the Litzlitz Village community. As of 2016 Malampa has 8,896 households with 39,997 persons with an average of 4.5 persons per household. In 2010, the average monthly income per households is 60,200 Vt. and average per capita income being 13,800 Vt. The average monthly household expenditure is 57,000 Vt. and per capita expenditure is 13,200 Vt.

89. The wharf being a main stopover for all ships traversing between Port Vila and Luganville often receives on average five ships per week which increases especially during festive seasons and during school holidays. The wharf is within walking distance to the Lakatoro trading center and the Provincial Government Center. Transport services are good, and the wharf being centrally located is easily accessed by everyone from all parts of Malekula.

90. The community directly adjacent to the wharf is small with little more than 100 families, 468 persons and an average of 4.6 persons per household. Both men and women depend on

28 subsistence farming and to some extent on business. There are more women than men in the village and a comparatively younger population with youths making up the bulk and gender ratio of 38:26 in favor of girls.

91. The general disease profile is non-communicable diseases, with about five persons having some sort of disability. An aid post is situated nearby at the Lakatoro provincial government for treatment of minor health problems; however, most referrals are done at the Norsup Hospital. The water source comes from two rainwater wells, two underground wells and five water tanks. Majority have individual toilets, some use bush toilets.

92. Most people in the vicinity of the wharf are subsistence farmers living in local thatched houses and semi-permanent buildings. As of 2016 approximately 78% of households source their main income from household sales of fish, crops, and handicrafts. Approximately 24% report having their own business and 22% are reliant on remittances. The people in this community have easy access to the Lakatoro market house where they can sell and buy food. Crab and fish selling are important sources of income. The people have easy access to good road and water supply and electricity supply by UNELCO.

D. Port Sandwhich- Malekula

93. Port Sandwich is in South Malekula in the Malampa Province, with the wharf located at the edge of the village. The wharf is old and broken down but still in use. There is an old dock beside the jetty that was used in the early days. As of 2016, Malampa has 8,896 households with 39,997 persons with an average of 4.53 persons per household. As of 2010, 53% of the population is in the productive age group of 15 to 59 years to take care of 47% of the dependent population. The average monthly income per households is 60,200 Vt. and average per capita income is 13,800 Vt. The average monthly household expenditure is 57,000 Vt. and per capita expenditure is 13,200 Vt.

94. The main town, Lamap, some 10 km from wharf site has more than 4,000 population with a little more than 900 families with a strong Francophone Catholic background. Remnants of what used to be during the Colonialism era are seen in the old vacant buildings, house types and in the lifestyle and daily living of the community. A few church denominations have recently been established in the community, but the daily way of life is done according to Catholic principles. Most people are educated in the French schooling system and use French language as their daily lingua franca. Rainwater is mainly used for drinking and for meeting other household needs.

95. Lamap is the main center for the whole of South Malekula including the nearby islands such as Maskelyne, Avock, Ukai, Varun and Raniem. Traversing by boatto the islands of Lamap is often difficult for islanders specifically in bad weather when sea is rough and boat travel is very unsafe. Lamap has good access to public services, there is a well-functioning National Bank of Vanuatu, a very well resourced ‘Lamap Mini Hospital, a French school primary and secondary, meteorology office, provincial office, a police post, Western Union, center, a market house and an Air Vanuatu office.

96. Even though subsistence farming is evident, a substantial entrepreneurial activity also exists through tiny businesses such as small grocery shops, trading activities, copra selling, fishing, kava bar selling, transporting goods and people on boats and vehicles. As of 2016, approximately 78% of households in Malekula source their main income from household sales of fish, crops, and handicrafts. Approximately 24% report having their own business and 22% are reliant on remittances. Copra and cocoa are the major cash earning commodities for the community. The

29 harbor itself is home to many sea resources and safe refuge for boats during cyclones. Studded along the coast and occupying a vast area on the harbor are large coconut plantations. During the night it is the kava bars that are rife; both men and women are involved in selling kava. The Lamap community attracts a lot of visitors, boats and yachts passing by to shelter at the Port Sandwich harbor.

97. Administratively, Lamap is divided into five sectors. Each sector has its own chief and an overall elected chief. The chiefs form the highest body of council of chiefs related to all matters of developments in their area. The Provincial Area Council Secretary, who represents the government, oversees, and manages developments in the whole of South Malekula and Lamap.

98. Landownership is a very sensitive issue on the island often involving belief in witchcraft/black magic.

E. Lenakel – Tanna

99. Located in the western side of Tanna island in Tafea Province, Lenakel is the main island which is also the administrative center of the Province. As of 2016 Tanna has 6,007 households with 32,280 persons with an average of 5.4 persons per household. According to the 2016 statistics Tafea province has a youthful population with 46% under the age of 15. In 2010, the average monthly income per household is 53,500 Vt. and the average per capita income is 10,700 Vt. The average monthly household expenditure is 65,100 Vt. and per capita expenditure is 13,000Vt.

100. Lenakel’s population is about 400 with approximately 67 households with an average of 5.9 members per household. Men are mainly involved in business and trade while women are involved in farming and marketing of agricultural produce and handicrafts and micro credit.

101. Being the main hub of Tafea Province, Lenakel has the most number of schools, three secondary schools and many primary schools, Tafea College, Lenakel Presbyterian College.3 Tanna’s Isangel French School is well known. Students who wish to pursue further studies after completing basic education have the University of the South Pacific sub-center in Tanna, as well as the Emalus Campus in Port Vila to continue tertiary level education.

102. The only referral hospital on Tanna is in Lenakel with approximately 16 trained/registered nurses and two doctors at any one time. All households in Lenakel have toilets. For water they depend on rain and springs. They have mobile network and internet access. 103. The banking facilities, post office, internet cafes, TVL shops, restaurants, several motels, and many retail shops are close to the wharf.

104. Tanna depends heavily on its port at Lenakel, the only existing one on the island. There is a small airport in Tanna which has at least two flights from Vila daily, with the Tafea outer islands getting one flight per week. Sea transport is presently limited with five to six ships calling into Lenakel weekly which is the main mode of transport in and out of the island.

105. The main form of livelihood for most people in the area is subsistence agriculture and fishing, the latter being the main source of cash income with an increasing number of farmers doing small- scale commercial farming. The 2016 Mini-Census showed that 84% of households were

3 The college has 381 students (201 girls and 180 boys) with girls fall out as they go high in classes. In general, many school-age children in remote areas of Tanna do not attend school as custom is very strong.

30 dependent on the sale of fish, crops, or handicrafts. 57% of households engaged in fishing activities. The cultivation of cash crops such as kava provides a minor secondary source of cash for some households. Tanna also has coffee, tourism, sandalwood, marketing agricultural products, fisheries, forestry, livestock, culture handicraft, manpower, all directly contributing to its economy. With the improvement of inter-island shipping services, market gardening will increase as tourism is expected to grow (after the coronavirus pandemic) with people coming in to visit the famous Yasur volcano.

V. CONSULTATION, PARTICIPATION, AND DISCLOSURE

106. GOV has secured the necessary access to the wharves through a series of agreements with landowning parties. Initially these agreements took the form of Memorandums of Understanding (MOUs). Later the MOUs have been replaced with Memorandums of Agreement (MOA). Both the MOUs and later MOAs have provided agreement with customary landowners to access the land that the wharves are located on, as well as associated land areas (roads, fences, etc.). The agreements have covered initial access required for feasibility assessments through to the access required for construction and ongoing maintenance of the structures. They also outline the process to be undertaken to formally acquire access (i.e., through long term lease that GOV intends to negotiate with customary landowners). The following sections describe the process for securing the initial MOUs and later MOAs as well as the process to securing long term leases for sites in customary land currently being undertaken.

A. Process of Securing the Initial MOU/Agreement (years 2013-2016)

107. The initial process of securing an MOU for each wharf site included (i) a series of awareness meetings with provincial and local government; (ii) consultations with landowner or leaseholder representatives; and (iii) signing of an MOU, with Third Party Validation, with customary landowners. A government team of five to six members was formed to consult with key provincial and community stakeholders in 2013. The Team was led by MIPU (Maritime Affairs), with representative each from Ministry of Lands and Natural Resources, VPMU, and Department of Finance and Treasury and Consultants from Roughton International.

108. The Team visited each of the original seven project sites in 2013 (including Waisisi that was later replaced with the new South Paray wharf and Loltong and Lolowai wharves that have since been removed from the VISSP project). The objective of visiting the sites in 2013 was to further clarify and create an understanding of the wharf or jetty development and the impacts which may be caused. The initiative was to seek formal agreements, by signing Memoranda of Understanding (MOUs) between landowners, claimants, chief representatives, or existing infrastructure operators and the government as evidence of common support for the project development.

109. After the Team’s first visit in early to mid-2013, a smaller team of two led by Department of Lands and MIPU (Richard Dick and Markmon Batie respectively) returned in January 2014 and signed an MOU with stakeholders from the final six of the seven original sites. MOUs are attached for all sites (Appendix 1 – 2016 Report).

110. The initial MOUs facilitated access to sites to carry out further investigations and studies, and for construction, maintenance, or upgrade of infrastructure. These signed MOUs are regarded as formal documents respected by all signatory parties, as evidence of project support by all stakeholders for project implementation. Independent witness representatives acting as third- party validators (TPV) such as women’s groups, church leaders or non-government organization leaders respected in the communities were also included in signing the MOUs.

31

other local stakeholders at the wharf sites, and to provide all parties with a process to deal effectively with complaints arising from wharf site activities. (iii) In supporting the establishment of the Shipping Support Scheme shipping services, the objective is to ensure that communications are established to manage contracts in accordance with each party’s contractual obligations, users receive timely advice on service schedules, users understand their obligations in using the services, mechanisms are in place to respond to new or changed user service demand, and all parties are provided with a process to deal effectively with suggestions or complaints arising from the delivery of the services. More generally: (i) Mechanisms and procedures will provide for two-way communication; (ii) Culturally and gender appropriate communication and consultation mechanisms will be used (iii) Existing communications methods will be used where they meet the individual communication need, (iv) Communication and consultation will be treated as a routine procedure, (v) Communications procedures will be refined as necessary throughout the life of the VISSP.

120. The communication and consultation mechanisms required will differ between stakeholders. Each stakeholder has different levels of interest in the VISSP, and each stakeholder will contribute differently to the delivery of the VISSP.

121. Consultations including community liaison committee meetings were held whilst the projects were active in 2016. Once the works on all sites were put on hold, meetings were suspended and recommenced when work recommenced including the undertaking of inception visits by the design consultant. Community Liaison Committees for each site were established in 2016 with representation from all members of the community including women, elders, and young people. Meetings of the Community Liaison Committee will be held monthly during construction to share information and answer questions and manage the grievance redress mechanism.

122. Annexed to this report are the consultation records for the sites to date. Below is a summary of consultation from VISSP Semi-Annual Safeguards reports prepared by MIPU for ADB. These reports are a component of the Project Administration Manual (PAM) for Safeguards Monitoring and Reporting.

123. It is acknowledged that the Contractor for South Paray was reported not to meet obligations and works were halted and a reassessment took place. It is noted that before works recommence at South Paray that the communities be consulted to prevent reoccurrence of issues and make sure there are no outstanding issues from the previous phase of works. The new contractor needs to be briefed of consultation and grievance redress mechanisms and obligations, and these will be monitored by VPMU.

1. Consultation Meetings from January to June 2016

124. Three Community Liaison Committee (CLC) meetings were organized by the VISSP PIT for South Paray Bay and Simonsen. These allow for the PIT to engage with stakeholders, landowners, community representatives, market vendors, taxi boat association, tourism operators and local authorities. Information about the planned scope of works, community engagement, grievance redress mechanisms, engagement of women and youth and managing project expectations were addressed in these CLC meetings.

36

4. Consultation Meetings from July – December 2017

129. No monthly CLC meetings were held, or updates/newsletters produced for South Paray Bay during these months with no reason provided by the Contractor. The CLC raised queries about the quality of water around the Pontoon Bay area after sighting what looked like oil spill and ‘dirty water’ within Pontoon Bay. The source of polluted water during that day was not verified, however PIT notified the Contractor and emphasized the requirement to adhere to Waste Management Plans as per the CEMP.

5. Consultation Meetings from January – June 2018

130. No formal CLC meetings were held for South Paray Bay during this period as the Contractor considered that there was nothing significant to report to CLC given limited scale of construction works being undertaken, however, there were several informal discussions on works progress with members of the CLC. Stakeholder consultations were held with various government representatives and CLC members of Simonsen, Lenakel, Litzlitz, and Port Sandwich (with these last four being removed from the contract due to investigations and designs needing re-doing) in March 2018. Key issues raised included queries about when the project was due to start and employment opportunities. Communities were advised that the date of commencement of construction was uncertain but that once such a date had been determined communities would be notified through their CLCs.

6. Consultation Meetings from July 2018 – June 2019

131. No stakeholder consultations were undertaken during this period given all projects were on hold while the design was reviewed. Only high-level discussions with government and development partners around scope, redesign, and financing of VISSP occurred during this period.

7. Inception Site Visits from July – December 2019

132. Inception Visits were completed in December 2019 with representatives from the design consultant and VPMU holding meetings and site visits across Port Vila, Simonsen and Port Sandwich. A list of meetings and site visits is appended. It included meeting with the Simonsen Harbour Master, Municipal Council and Provincial Planner and Chief and customary landowners of Port Sandwich and the signing of the 2019 MOU for Port Sandwich.

133. For Lenakel and Litzlitz, the design consultant and VPMU met with the MALAMPA provincial government in November 2019 to inform concept designs with further consultations planned for 20204. This included presenting the scope of works, identifying cultural sites, and noting requests/preferences. A list of meetings and site visits is appended. The Concept Designs Options workshop that was scheduled for March 2020 was cancelled due to the COVID-19 pandemic and a remote meeting with project stakeholders and VPMU was held in its place.

134. An inception visit of South Paray Bay was conducted in June 2019 where there was discussion on the risks associated with project. Meetings were held with local authorities, Ports and Harbour, Vanuatu Ferries, Vanuatu Agencies, and other key stakeholders.

4 It is noted that the Covid-19 pandemic in 2020 and early 2021 has meant that visits and consultation conducted by the international design consultant has not been possible and consultation has therefore been limited during this period.

38 timeframes for securing long term leases for the sites. It is noted that negotiating long term leases can take considerable time and so work has commenced to try to secure these as soon as possible.

Table 6: Steps and Timeframes for Securing Long-Term Leases for the Sites

Task Responsibility Date 1. Consultation with customary landowners to confirm Department of May 2021 Government preferred approach of securing a long- Lands, Survey and term lease and outline process and timeframes, Land Records / including the renewed MOA with the customary VPMU / MALAMPA landowners for the quarry materials. Provincial Government / SHEFA Provincial Government 2. Obtain confirmation of certificate of recorded interest CLMO /VPMU in land from Customary Lands Management Office End of May 2021 3. Commission a detailed boundary survey of area VPMU to End May 2021 subject to lease based on engineering design commission drawings. registered surveyor 4. Submit survey plan to Surveyor General for approval VPMU / Registered End June 2021 Surveyor / Surveyor General 5. Application for certificate of valuation for area to be Valuation Unit, End July 2021 leased. DOLSR / VPMU 6. MIPU and Ministry of Lands and Natural Resources MIPU / MLNR / End August 2021 (MLNR) to lodge application to lease over the VPMU designated survey area with Land Management and Planning Committee.

7. Meet with landowners to negotiate the fair and DOL/VPMU/OVG reasonable lease conditions. This includes one off compensation for loss of enjoyment (based on advice and calculations from Officer of the Valuer-General) and ongoing annual land rent. This includes land premium payments. 8. Prepare wording of lease agreement in consultation DOL Timeframes with customary landholders and with the assistance of dependent on legal practitioner for drafting (if required). length of negotiation 9. Arrange signing of the lease documents by customary DOL process with landowners authorized representatives and landowners but leaseholder will be 10. Payment of stamp duty to Vanuatu Financial Services DOL progressed with Commission on signed lease documents urgency. 11. Register signed leases with DoL and pay application DOL fee 12. One off compensation payment for loss of enjoyment DOL of land (as per agreement reached in step 7 above). Ongoing annual land rent payments as per lease agreements

40 VI. BUDGET AND FINANCING

140. The table below (a copy of Table 2) provides the estimated cost of securing lease agreement per site. In addition to the amount identified in the table below, it is suggested that an additional $10,000 USD be allowed for consultation and survey costs associated with securing the lease with landowners at each of the three sites.

VII. GRIEVANCE REDRESS MECHANISM

141. Redressing grievances of affected people should be an integral part of the VISSP design, plan, and management. The following identifies mechanisms to address community concerns,

41 prevent adverse consequences and risks, and bring about positive changes in people’s lives and relationships. Resolving grievances of project-affected people at the lowest level, without allowing them to escalate into unmanageable levels, equally benefits both the aggrieved parties and the project implementors.

142. During project implementation, VPMU and its Contractor each have a designated staff member responsible for implementing the GRM. The VPMU’s lead is the Safeguards Officer who is the grievance focal point and receives and addresses project related concerns. Concerns are resolved first by the Project Manager on- site, followed by MIPU, and the responsible government authorities.

143. During the construction period the contractor will be a key participant in the grievance redress process and will have their own safeguards officer during construction. The Contractor’s safeguards officer will receive concerns at the construction site and will attempt to resolve them. If they cannot be resolved at the construction site, then the Contractor’s safeguard officer will record them and refer them to the VPMU Safeguard’s Officer and raise the matter at the next Community Liaison Committee (CLC) meeting.

144. All complaints are and will be recorded and investigated by VPMUs Safeguards Officer working with the Design, Supervision and Capacity Development (DSCD) Consultant, the CLC and the contractor (as appropriate). A complaints register will be maintained and will show the details and nature of the complaint, the complainant’s name, the date, and actions taken as a result of the investigation. The complaints register will be included in Contractors monthly reports as well as VPMU Project monthly reports.

145. When construction starts, a sign will be erected at all sites providing the public with updated project information and summarizing the grievance redress mechanism process including contact person details at MIPU/VPMU. All corrective actions and complaints responses carried out on site will be reported back to the MIPU lead. MIPU/VPMU will include the complaints register and corrective actions/responses in its progress reports to the ADB.

146. Throughout this process, MIPU/VPMU will always be available to hear public complaints and provide advice if the complainant feels that MIPU responses are not satisfactory.

147. On receipt of a complaint in any form (in person, telephone, written) the VPMU Safeguards Officer will log the details in a complaint register. VPMU will forward complaint to the project director and executing agency head within 48 hours. The DSCD will respond to the VPMU within 1 week with advice on corrective actions to be taken. VPMU will review and find solution to the problem in consultation with village/island/state or traditional chief and relevant local agencies. Then VPMU will report back to the affected persons within another 7 days. If the complainant is dissatisfied with the outcome or has not received advice in the allotted time period, he or she can take grievance to the national government. The VPMU will refer matter to the State Law Office for review. The national/state authority will review the case and report back to the VPMU who will discuss answers with the complainant about outcome. If unresolved, or if at any time the complainant is not satisfied, he or she can take the matter through the courts. Both successfully addressed complaints and unresolved issues will be reported to the ADB by the VPMU/MIPU.

42 Table 7: Procedures for Resolving Grievances

Step Process Duration 1 Affected Person (AP)/ takes grievance to the Any time Vanuatu Project Management Unit (VPMU)/DSCD/Contractor 2 VPMU reviews issue, and in consultation with 1 week DSCD and contractor (if appropriate), then records a solution to the problem. 3 VPMU reports back to AP and gets clearance from 1 week complainant. If unresolved 4 AP take grievance to relevant government agency for Decision within 2 weeks resolution (Director General of the Ministry of Infrastructure and Public Utilities or MIPU) 5 AP refers matter to Public Solicitor’s Office 2 weeks 6 National agency refers to an internal committee 4 weeks 7 National agency through reports back to relevant 1 week government agency/AP If unresolved or if at any stage and AP is not satisfied with progress AP can take the matter to appropriate state or national court. As per judicial system

A. Grievance Reporting

148. The following documents the grievance reporting on the project up to the date of this report (May 2021). The grievance reports have been derived from the semi-annual reporting undertaken by VPMU. Consultations are required to be carried out prior to recommencement of work at South Paray and other wharves to close out any existing issues from previous phase of works and contractors briefed on grievance redress mechanisms for the next stage of works.

149. Semi-annual report (July – December 2016). The only grievances raised during the reporting period were from the Matarau Tefeke (Octupus) clan who are owners of the South Paray area. The clan approached VPMU with letters requesting assistance with setting up a mechanism for long term management of South Paray Wharf (stevedoring operations) prior to giving consent for development. In response VPMU initiated a series of meetings to discuss the issue with the community which resulted in signing of a Memorandum of Agreement (MOA) in 2016 with MIPU which assured the community of assistance from Government in meeting their requests.

150. Semi-annual report (January – June 2017). The grievances raised during the reporting period were from Community Liaison Committee (CLC) who raised concerns about the high visible plumes around Pontoon Bay and Paray Bay and its environmental impacts. This was addressed by using CLC meetings to raise awareness about the dredging activities and associated environmental impacts that could be anticipated in the area, most of which will be short term or will occur during the dredging period, such as the plumes.

151. There were reports of inappropriate social behavior by the Contractor towards females both in the project and outside the project. A finalized Gender Awareness Plan had not been submitted and approved at the time required. Contractor was asked to submit the GAP repeatedly.

43 152. Semi-annual report (July – December 2017). After a first submission of the Gender Awareness Plan, the Contractor was asked to update the GAP and re-submit for approval. A re- submission of the Contractor’s Gender Awareness Plan was submitted in June 2017 and review comments were provided by the PIT. This included a request for further details on how the plan would be implemented, and which will also allow the PIT to effectively monitor their program according to the project’s GAP. Contractor was asked to submit a finalized GAP however this was not received while Contractor was engaged and has not been received to date. Despite this, the Contractor engaged a Gender specialist and proceeded to conduct gender awareness at toolbox meetings. Since contract completion is expected to be in March 2018, Contractor will report on what has been implemented under Gender Awareness specs, within their Completion Report.

153. The CLC raised a query about the quality of water around the Pontoon Bay area after sighting what looked like oil spill and ‘dirty water’ within the Pontoon Bay. The source of the polluted water during that day was not verified, however PIT notified Contractor and emphasized the requirement to adhere to Waste Management Plans as per CEMP.

154. Semi-annual report (January – June 2018). Issue surrounding Gender Awareness Plan continues. (Gender awareness plan was completed – but delays in issuing)

155. During the reporting period questions were raised by the general public on Facebook regarding status of construction of South Paray Wharf and comparing it with completion of Lapetasi. Disappointment was expressed that the work was not completed and there was general negative feedback about the project. VPMU responded to public concerns on its Facebook page. This helped to bring some clarity around the project issues.

156. Semi-annual reports (January 2018 – June 2020). No grievances were reported during this period. There is no information on grievances since June 2020.

B. Grievance Monitoring

157. Based on the Project’s Communication Plan (CP), the the Project Officers in each respective Provincial Government Councils, as well as Area Administrators, including theVPMU Safeguards Officer (who is based in Port Vila) will continue to monitor all activities associated with grievances by APs including the public and affected businesses. The VPMU will maintain proper documentation of consultation process and keep relevant records of complaints received during implementation and construction phase (resolved and pending issues). The records will be submitted to ADB and government.

VIII. MONITORING

158. The VPMU prepares and submits semi-annual environmental and social safeguard monitoring reports and quarterly progress reports to ADB, as part of project performance monitoring. In accordance with this process VMPU has submitted semi-annual safeguard monitoring reports from 2016 to date. See safeguard documents https://www.adb.org/projects/42392-013/main#project-documents for a copy of all reporting.

44 IX. INSTITUTIONAL ARRANGEMENTS

A. Responsibilities to Monitor and Update the Due Diligence Report

159. The Ministry of Finance and Economic Management is responsible for overall guidance and project implementation, and the Ministry of Infrastructure and Public Utilities is the implementing agency. The VISSP is managed by the Vanuatu Project Management Unit (VPMU), (appointed by GOV as the project executing agency) through a PIT. The PIT was established in the latter part of 2015 and remained in action until its contract was completed in July 2017. It consisted of the Project Team Leader, Resident Engineer, Site Superintendent, the Environment and Social Safeguards Specialist, the Contract Administrator, and the Accountant. The PIT was accommodated with and worked closely with the local government Public Works Department. It was responsible for overall planning, management, coordination, supervision, and progress monitoring of the subproject including the updating of the DDR and its implementation. Following completion of the PITs contract in July 2017, VPMU appointed an international project manager to continue supervision of the VISSP contract and to resolve a legacy of design issues that had become apparent during project implementation.

160. Any unanticipated issues will be dealt with in accordance with ADB’s Safeguard Policy Statement (2009) and Vanuatu’s applicable laws and policy. The VPMU ensures compliance with assurances, including ADB’s SPS and updating and submitting the DDR updates, through the delegated Consultant where applicable. GOV will be progressing with long term lease negotiations with the goal of completing and securing leases for customary owned land prior to construction commencing (see timeframes in Table 6). The project progress report includes safeguards monitoring and reporting as required. VPMU is the agency responsible for ensuring GOV has allocated sufficient budget for its in-kind contributions to the project, as per the funding agreement, including the cost of land leases and compensations.

B. Long-term Lease Arrangements

161. Further to the current MOA arrangements that secure access for construction, GOV needs to secure long-term access to the customary land (or public land leased to other entities) required for operation of the wharves and infrastructure at South Paray, Port Sandwich and Litzlitz for operation. VPMU has confirmed with GoV the agreed approach to securing this long-term access needs. The options available to the GoV are to secure a long-term lease agreement or a willing seller willing buyer purchase arrangement. No compulsory acquisition will occur.

162. In Vanuatu the Land Leases Act [CAP. 163] is the primary legislation in Vanuatu that provides for the leasing of land in Vanuatu. Under this law, the system for creation, management, administration, and enforcement of leases is created. This will be adhered to and considered in any lease arrangements made. This will include working with the administrative body called the Land Management and Planning Committee (LMPC), whose role is to process, determine and recommend approvals of leases to the Minister of Lands. The Act also details the rights and obligations of person or entities entering into an arrangement or agreement with another person and/or entity for the use of land under a lease or rent agreement. Land can be leased for up to 75 years, administered by the Government on behalf of the customary landowners and registered in the Land Leases Register. Leases for development on customary land require the free, prior, and informed consent of the custom owner group.

163. Below is the proposed process of securing lease for project sites and cost estimation per site (a copy of Table 2 above):

45 Process of Securing Lease for Project Sites and Cost Estimation per Site (Provided by VPMU)

46 Note: Personal information of stakeholders, such as names , phone numbers and email addresses, have been redacted before the report was disclosed on the ADB website, as per ADB's Access to Information Policy (2018), Exceptions to Disclosure, Section B. 3 (vii).

5. South Paray, Port Vila

GOVERNMENT OF THE REPUBLIC OF VANUATU

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES

AGREEMENT BETWEEN

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES

AND

THE LANDHOLDERS, FAMILY KALPRAM TUEKOT & DESCENDANTS, MATARAU TEFEKE, COMMUNITTY & PEOPLE OF IFIRA TENUKU FOR THE SOUTH PARAY WHARF SITE

FOR LONG TERM ACCESS & MANAGEMENT TO THE SOUTH PARAY DOMESTIC WHARF

66 THIS AGREEMENT is made on the 12th day of February 2016

Between

Ministry of Infrastructure & Public Utilities

And

The Landholders, Family Kalpram Tuekot & Descendants, Matarau Tefeke, Community & People of Ifira Tenuku for the South Paray Wharf Site

67 1. Purpose of the Agreement

A. The Government of Vanuatu (GOV) wishes to develop and improve shipping services in the country. Having recognized the importance of marine transport, the GOV through the Ministry of Infrastructure & Public Utilities (MIPU) embarked on the Vanuatu Interisland Shipping Support Program (VISSP) with the support of the Asian Development Bank (ADB) and the New Zealand Government (NZAid).

B. The subproject sites have been selected and work on the design of the most suitable wharf structures for these locations were done and a Contractor was selected and offered the contract. MIPU wishes to acknowledge any location where issues relating to the ownership of land and its foreshore exists that may hinder the construction of the wharf for the good of the community.

C. This Agreement sets out the terms and conditions for the application of resources to construct the Domestic wharf on South Paray located Port Vila, Efate in SHEFA Province on the land site which is facilitated by Ifira Ports & Development Services (IPDS), a subsidiary of Ifira Trustees Limited (ITL) and approved by the Customary Landowners.

D. This Agreement also sets out the process and plans for the long-term access of the wharf facility by the public as well as for the management of the South Paray Wharf through the creation of an appropriate entity in the near future after the completion of the wharf.

2. Objectives of VISSP

A. The key objective of VISSP is to facilitate increased economic and social activities and accessibility through the rehabilitation or construction of wharves on remote provincial areas. The wharves when reconstructed are expected to restore accessibility, improve transport connectivity to outer islands in Vanuatu, allow a resumption of or improve efficiency of economic activities and improve access to social services, including public health and education facilities. The project will also make wharves less vulnerable to climate change and natural hazards.

B. South Paray Domestic Wharf has been chosen for construction following extensive investigations by MIPU thorough discussions and investigation with technical persons, engineers, Provincial Government and local community and custom Landowners.

C. This MOU seeks to facilitate an agreement between the GOV, the customary landowners and those with perpetual interests in the land where the wharf is located to enable the construction of the wharf to proceed without hindrance. The agreement attempts to include all stakeholders especially those with a declared interest in the land to come and agree and resolve any difference that may exist.

D. This MOU seeks to also facilitate the long-term access to the wharf facility once it is constructed and operational, including the processes for ensuring securing the

68 tenure and lease of the land area which the wharf facility is located upon.

E. MIPU intends that the construction of the wharf will be for the benefit of the people of Vanuatu and also within the community where the wharf is located and for the wider catchment area of SHEFA Province and Capital city of Port Vila, and ultimately for the improvement of inter-island travel for social and economic development of the area.

F. In the construction phase, MIPU aims to assist the local economy of the locality by ensuring that labor and materials are obtained locally if and when necessary, by facilitation of the Leaseholder where necessary.

3. Landowners’ Obligations

A. The land area which includes the site upon which the South Paray Domestic Wharf is to be constructed has a collective group of Landowners having been declared. Family Kalpram Tuekot & Descendants as custom landowners and Matarau Tefeke of Ifira Tenuku Island as perpetual owners are the customary land-owning groups featured in this Agreement.

B. The collective group of custom Landowners which includes Family Kalpram Tuekot & Descendants as custom landowners and Matarau Tefeke of Ifira as perpetual owners confirm that as a collective group, they have responsibility and custodianship over the area upon which the planned construction of the South Paray Domestic Wharf will take place.

C. The collective group of Landowners agree the following:

1. Unrestricted access to MIPU and its Contractor(s) to the wharf site for construction and any other purpose related to the project, especially with the creation of access points, roads, fences, and mobilization works.

2. That the collective group of Landowners work together to ensure that the construction of the wharf, the work of the Contractors and the overall area of the construction site is safe, suitable, and cleared of any danger or harm to the Contractor.

3. The project has the full and unequivocal support of the collective group of Landowners where the wharf site is situated.

4. Following construction there will be unimpeded access to the wharf for all those wishing to use the wharf, including the use of designated parts of the wharf as a landing for inhabitants, residents, and community members of Ifira Tenuku.

5. To bring any dissatisfaction or complaint in regard to the Contractor to MIPU and VPMU and not to hinder the work of the Contractor.

69 6. To address any internal, tribal, clan or family disputes so as not to cause any delay to the smooth and timely construction of the wharf.

D. For the collective group of Landowners, Family Kalpram Tuekot & Desendants and Matarau Tefeke and in consultation with the GOV, work towards creation of a proper lease agreement for the site of the South Paray Domestic Wharf only after the wharf has been constructed and becomes operational. To ensure the long-term access of the wharf to the general public and all its users.

E. For the collective group of Landowners, Family Kalpram Tuekot & Desendants and Matarau Tefeke and in consultation with the GOV, work towards establishment of a commercial entity to be incorporated in accordance with the laws of Vanuatu to manage and operate the South Paray Domestic Wharf and for such an entity to represent the interests of the GOV, the Landowners, the users of the South Paray Wharf, Shipowners, the local authorities of SHEFA and Port Vila Municipality respectively.

4. MIPU’s Obligations

1. To facilitate the construction of the wharf in accordance with the specifications and design of the VISSP.

2. To ensure the use of local construction materials and labor, where possible, for the construction.

3. To provide skilled supervision and organization of the project through the use of appointed Contractors.

4. To ensure, through the Contractor has all necessary construction equipment specified within the Contract is available.

5. To provide, through the Contractor, all necessary construction materials as specified in the Contract.

6. To engage the formal support of the GOV to work with the collective group of Landowners, including Family Kalpram Tuekot & Desendants and Matarau Tefeke of Ifira Tenuku to create a proper lease over the area upon which the South Paray Domestic Wharf is constructed.

7. To engage the formal support of the GOV to establish a commercial entity to be incorporated in accordance with the laws of Vanuatu to manage and operate the South Paray Domestic Wharf and for such an entity to represent the interests of the GOV, the Landowners, the users of the South Paray Wharf, Shipowners, the local authorities of SHEFA and Port Vila Municipality respectively.

8. To deal with the complaints of the other parties in relation to the presence of the Contractor in order to avoid delays in the construction process. However, MIPU does not accept liability for acts of omissions or defaults of the Contractor.

70

Appendix 4: Process of Securing Lease for Project Sites and Cost Estimate Per Site

Institution responsible for Stage of Lease Process ProjectedCost Frequency Process Stage 1 LMPC (Land Management and 10,000 vatu Once only Application for a Negotiator Planning Committee) a bodywithin Certificate to start Lease the Ministry of Lands. Process Stage 2 Contract a Registered Surveyor to 100,000 vatu Once only Survey & Mapping of Survey and Create a Survey Plan (average and Proposed Lease Area minimum) Submit and Lodge Survey Planfor 7,500 vatu Once only Approval Stage 3 Contract a Registered Valuator to 100,000 vatu Once only Valuation of Proposed Lease inspect and produce a (average & Area Valuation Report minimum) Submit and Lodge Valuation Report 10,000 vatu Once only to Officer of the Valuer-General for Approval(OVG) Stage 4 Submit Lease Application Documents 25,000 vatu Once only Application to Create Lease to Dept of Lands(DOL) by Leaseholders Stage 5 Calculated by OVG based of land. 500,000 vatu Once only Payment of Premium to This is a payment done to (average and Custom Landowners by compensate for the loss ofenjoyment minimum) Lessees of the land. Paid as a lumpsum to a landowner group. Stage 6 If instructed by GOV for SLO todraft No cost Preparation, Drafting & and negotiate Lease Agreement Consultation with Leasing Parties for the Agreement to If Lease parties, choose to uselegal 100,000 vatu Once only Agreement by Leaseholders services of a Legal Practitioner (average and minimum) Stage 7 Payment to Vanuatu Financial 25,000 vatu Once only Payment of Stamp Dutyon Services Commission (VFSC)for all signed and completed bundle of lease documents. Lease documents by Lease holders Stage 8 Application Fee paid to DOL to 7,500 vatu Once only Lodgement of process your Lease for Application to Register Registration Lease by Leaseholders Stage 9 Payment by Lessee to Lessors. 100,000 vatu Annually and Payment of Annual Land Rent A fee calculated and inserted in the (average & reviewedevery by Lessee to Lessors Lease Agreement. For a typical minimum) 5 years. special lease like a wharf. TOTAL 985,000 VATU (USD 9, 035)

Reference:

Source:

80 2021 UPDATES

Appendix 5: Signed MOA and MOU Updates

1. Port Sandwich, Malekula

GOVERNMENT OF THE REPUBLIC OF VANUATU

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES

AND THE

MINISTRY OF LANDS & NATURAL RESOURCES

AGREEMENT BETWEEN

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES,

MINISTRY OF LANDS AND NATURAL RESOURCES

AND

THE LANDHOLDERS FOR THE PORT SANDWICH WHARF SITE

FOR LONG TERM ACCESS & MANAGEMENT TO THE PORT SANDWICH DOMESTIC WHARF

81 THIS AGREEMENT is made on the 12 h day of __December____ 2019

Between

Ministry of Infrastructure & Public Utilities,

Ministry of Lands & Natural Resources

And

Parties of Port Sandwich being the Landholders of Port Sandwich Domestic Wharf Site

82 1. Purpose of the Agreement

A. The Government of Vanuatu (GOV) wishes to develop and improve shipping services in the country. Having recognized the importance of marine transport, the GOV through the Ministry of Infrastructure & Public Utilities (MIPU) embarked on the Vanuatu Interisland Shipping Support Program (VISSP) with the support of the Asian Development Bank (ADB) and the New Zealand Government (NZAid).

B. In 2014 to 2016, the subproject sites were selected, of which Port Sandwich Wharf was a VISSP subproject site, and work on the design of the most suitable wharf structures for these locations were done and a Contractor was selected and offered the contract. However due to project management issues, the project had to be paused in 2017. Now in 2019, all issues have been resolved and the project is ready to be recommenced at Port Sandwich subproject site. MIPU wishes to acknowledge any location where issues relating to the ownership of land and its foreshore exists that may hinder the construction of the wharf for the good of the community.

C. This Agreement sets out the terms and conditions for the application of resources to construct the Domestic wharf at Port Sandwich Wharf located Port Sandwich, South East Malekula, MALAMPA Province on the land site which is facilitated by MALAMPA Provincial Government Council.

D. This Agreement also sets out the process and plans for the long term access of the wharf facility by the public as well as for the management of the Port Sandwich Wharf through the creation of an appropriate entity in the near future after the completion of the wharf.

2. Objectives of VISSP

A. The key objective of VISSP is to facilitate increased economic and social activities and accessibility through the rehabilitation or construction of wharves on remote provincial areas. The wharves when reconstructed are expected to restore accessibility, improve transport connectivity to outer islands in Vanuatu, allow a resumption of or improve efficiency of economic activities and improve access to social services, including public health and education facilities. The project will also make wharves less vulnerable to climate change and natural hazards.

B. Port Sandwich Wharf has been chosen for construction following extensive investigations by MIPU thorough discussions and investigation with technical persons, engineers, Provincial Government and local community and custom Land owners.

C. This MOU seeks to facilitate an agreement between those with interests in the land where the wharf is located to enable the construction of the wharf to proceed without hindrance. The agreement attempts to include all stakeholders especially those with a potential interest in the land to come and agree and resolve any difference that may exist.

D. This MOU seeks to also facilitate the long term access to the wharf facility once it is constructed and operational, including the processes for ensuring securing the tenure and lease of the land area which the wharf facility is located upon.

83 E. MIPU intends that the construction of the wharf will be for the benefit of the people of Vanuatu and also within the community where the wharf is located and for the wider catchment area of MALAMPA Province, and ultimately for the improvement of inter-island travel for social and economic development of the area.

F. In the construction phase, MIPU aims to assist the local economy of the locality by ensuring that labour and materials are obtained locally if and when necessary, by facilitation of the Landholder where necessary.

3. Landholders Obligations

A. The parties agree that the land area upon which the Port Sandwich Wharf is located has a collective group of Land Owners which include: Family Naly, Family Vanusoksok, Family Toktok and Family Luan.

B. The Landholders agree to the following:

1. Unrestricted access to MIPU and its Contractor(s) to the wharf site for construction and any other purpose related to the project, especially with the creation of access points, roads, fences and mobilization works.

2. That the collective group of Land Owners work together to ensure that the rehabilitation of the wharf, the work of the Contractors and the overall area of the construction site is safe, suitable and cleared of any danger or harm to the Contractor.

3. The project has the full and unequivocal support of the collective group of Land Owners where the wharf site is situated.

4. Following construction there will be unimpeded access to the wharf for all those wishing to use the wharf, including the use of designated parts of the wharf as a landing for inhabitants, residents and community members of Malekula and MALAMPA.

5. To bring any dissatisfaction or complaint in regard to the Contractor to MIPU and VPMU and not to hinder the work of the Contractor.

6. To address any internal, tribal, clan or family disputes so as not to cause any delay to the smooth and timely construction of the wharf.

C. In consultation with the GOV, work towards creation of a proper lease agreement for the site of the Port Sandwich Domestic Wharf only after the wharf has been rehabilitated and becomes operational. To ensure the long term access of the wharf to the general public and all its users.

D. In consultation with the GOV, work towards establishment of an entity to be incorporated in accordance with the laws of Vanuatu to manage and operate the Port Sandwich Wharf and for such an entity to represent the interests of the GOV, the Land Owners, the users of the Port Sandwich Wharf, Ship-owners, the local authorities of MALAMPA and Malekula respectively.

84 4. MIPU’s Obligations

1. To facilitate the construction of the wharf in accordance with the specifications and design of the VISSP.

2. To ensure the use of local construction materials and labour, where possible, for the construction.

3. To provide skilled supervision and organization of the project through the use of appointed Contractors.

4. To ensure, through the Contractor has all necessary construction equipment specified within the Contract is available.

5. To provide, through the Contractor, all necessary construction materials as specified in the Contract.

6. To engage the formal support of the GOV to work with the collective group of Land Owners to create a proper lease over the area upon which the Port Sandwich Wharf is located.

7. To engage the formal support of the GOV to establish a commercial entity to be incorporated in accordance with the laws of Vanuatu to manage and operate the Port Sandwich Wharf and for such an entity to represent the interests of the GOV, the Land Owners, the users of the Port Sandwich Wharf, Ship-owners, the local authorities of MALAMPA and Malekula respectively.

8. To deal with the complaints of the other parties in relation to the presence of the Contractor in order to avoid delays in the construction process. However, MIPU does not accept liability for acts of omissions or defaults of the Contractor.

85 IN WITNESS of which the parties have set their hands on the day and year first above written.

For MIPU represented by the Director General For the Port Sandwich Land Owners, represented by:

Name: Chief Name: HARRISON TOAR MATOKOAL LUEN Signature: Signature: Name: Chief

Signature:

For Ministry of Lands & Natural Resources represented Name: Chief by the Director General Signature:

Name: ARTHUR FAERUA Name: Chief

Signature: Signature:

For the MALAMPA Provincial Government Council, represented by its Secretary General: WITNESSES of the Land Owners:

Name: Name: KALWAJIN SKEPHA Signature: Signature: Name:

Signature: For VPMU as the managing body of the VISSP represented by its Program Director: Name:

Signature

Name: ANNA SALWAI TAVOA

Signature: THIRD (NEUTRAL) PARTY VERIFICATION

Name: Pastor

Signature:

86

2. Lenakel Wharf, Tanna

GOVERNMENT OF THE REPUBLIC OF VANUATU

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES

AGREEMENT BETWEEN

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES,

AND

THE LANDHOLDERS OF THE KASTOM LAND AREA COVERING LENAKEL WHARF FACILITY, WEST TANNA

FOR LONG TERM ACCESS & MANAGEMENT TO THE LENAKEL DOMESTIC WHARF

88 THIS AGREEMENT is made on the 15 h day of __November____ 2017

1. Purpose of the Agreement

A. The Government of Vanuatu (GOV) wishes to develop and improve shipping services in the country. Having recognized the importance of marine transport, the GOV through the Ministry of Infrastructure & Public Utilities (MIPU) embarked on the Vanuatu Interisland Shipping Support Program (VISSP) with the support of the Asian Development Bank (ADB) and the New Zealand Government (NZAid).

B. The subproject sites have been selected and work on the design of the most suitable wharf structures for these locations were done and a Contractor was selected and offered the contract. MIPU wishes to acknowledge any location where issues relating to the ownership of land and its foreshore exists that may hinder the construction of the wharf for the good of the community.

C. This Agreement sets out the terms and conditions for the application of resources to rehabilitate the existing wharf at Lenakel and construct a new passenger shelter in the adjacent lease spaces located at Lenakel Wharf area, West Tanna, TAFEA Province and approved by the Customary Land Owners.

D. This Agreement also sets out the process and plans for the long term access of the wharf facility by the public as well as for the management of the Lenakel Wharf through the creation of an appropriate entity in the near future after the completion of the wharf.

2. Objectives of VISSP

A. The key objective of VISSP is to facilitate increased economic and social activities and accessibility through the rehabilitation or construction of wharves on remote provincial areas. The wharves when reconstructed are expected to restore accessibility, improve transport connectivity to outer islands in Vanuatu, allow a resumption of or improve efficiency of economic activities and improve access to social services, including public health and education facilities. The project will also make wharves less vulnerable to climate change and natural hazards.

B. Lenakel Wharf has been chosen for rehabilitation construction following extensive investigations by MIPU thorough discussions and investigation with technical persons, engineers, Provincial Government and local community and custom Land owners.

C. This MOU seeks to facilitate an agreement between the GOV, the customary land owners and those with perpertual interests in the land where the wharf is located to enable the rehabilitation construction of the wharf to proceed without hindrance. The agreement attempts to include all stakeholders especially those with a declared interest in the land to come and agree and resolve any difference that may exist.

89 D. This MOU seeks to also facilitate the long term access to the wharf facility once it is constructed and operational, including the processes for ensuring securing the tenure and lease of the land area which the wharf facility is located upon.

E. MIPU intends that the construction of the wharf will be for the benefit of the people of Vanuatu and also within the community where the wharf is located and for the wider catchment area of TAFEA Province, and ultimately for the improvement of inter-island travel for social and economic development of the area.

F. In the construction phase, MIPU aims to assist the local economy of the locality by ensuring that labour and materials are obtained locally if and when necessary, by facilitation of the Landholder where necessary.

3. Landholders’ Obligations

A. The land area which includes the site upon which the Lenakel Wharf is located has a collective group of Land Owners having been recognized by VISSP. B. The Customary Land Owners confirm that as a collective group, they have responsibility and custodianship over the area upon which the Lenakel Wharf rehabilitation and construction under VISSP will take place.

C. The collective group of Land Owners agree to the following:

1. Unrestricted access to MIPU and its Contractor(s) to the wharf site for construction and any other purpose related to the project, especially with the creation of access points, roads, fences and mobilization works.

2. That the collective group of Land Owners work together to ensure that the rehabilitation of the wharf, the work of the Contractors and the overall area of the construction site is safe, suitable and cleared of any danger or harm to the Contractor.

3. The project has the full and unequivocal support of the collective group of Land Owners where the wharf site is situated.

4. Following construction there will be unimpeded access to the wharf for all those wishing to use the wharf, including the use of designated parts of the wharf as a landing for inhabitants, residents and community members of Malekula and MALAMPA.

5. To bring any dissatisfaction or complaint in regard to the Contractor to MIPU and VPMU and not to hinder the work of the Contractor.

6. To address any internal, tribal, clan or family disputes so as not to cause any delay to the smooth and timely construction of the wharf.

D. For the collective group of Customary Land Owners and in consultation with the GOV, work towards updating and review of the current lease agreement for the site of the Lenakel Wharf only after the wharf has been rehabilitated and buildings constructed. To ensure the long term access of the wharf to the general public and all its users.

90 E. For the collective group of Customary Land Owners and in consultation with the TAFEA Provincial Government and GOV, continue to manage the current stevedoring arrangements of Lenakel Wharf and for such an entity to represent the interests of the GOV, the Land Owners, the users of the Lenakel Wharf, Ship-owners, the local authorities of TAFEA Provincial Government respectively.

4. MIPU’s Obligations

1. To facilitate the construction of the wharf in accordance with the specifications and design of the VISSP.

2. To ensure the use of local construction materials and labour, where possible, for the construction.

3. To provide skilled supervision and organization of the project through the use of appointed Contractors.

4. To ensure, through the Contractor has all necessary construction equipment specified within the Contract is available.

5. To provide, through the Contractor, all necessary construction materials as specified in the Contract.

6. To engage the formal support of the GOV to work with the collective group of Customary Land Owners to review and update the lease currently held over the area upon which the Lenakel Domestic Wharf is constructed.

7. To deal with the complaints of the other parties in relation to the presence of the Contractor in order to avoid delays in the construction process. However, MIPU does not accept liability for acts of omissions or defaults of the Contractor.

91

3. Litzlitz Wharf

GOVERNMENT OF THE REPUBLIC OF VANUATU

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES

AGREEMENT BETWEEN

MINISTRY OF INFRASTRUCTURE & PUBLIC UTILITIES,

AND

THE LANDHOLDERS, MALMELIF CLAN (FAMILY EDWIN) OF AMBET KASTOM LAND IN CENTRAL MALEKULA

FOR LONG TERM ACCESS & MANAGEMENT TO THE LITZLITZ DOMESTIC WHARF

93 THIS AGREEMENT is made on the day of ______2017

BETWEEN: GOVERNMENT OF THE REPUBLIC OF VANUATU duly represented by the Director General of the Ministry of Infrastructure & Public Utilities, PMB 9056, Port Vila, Vanuatu (“GOV”);

AND: FAMILY EDWIN as MALELIF CLAN having a duly appointed representative Colin Edwin bein declared custom land owners of Ambet Kastom Land, having their address at Litzlitz village, Central Malekula, Malekula Island, MALAMPA Province, Vanuatu; (“Malemlif Clan”);

AND: VANUATU PROJECT MANAGEMENT UNIT representing the Vanuatu Interisland Shipping Support Program and having its address at Vila Mall Building, P.O. Box 192, Port Vila, Vanuatu (“VPMU”).

1. Purpose of the Agreement

A. The Government of Vanuatu (GOV) wishes to develop and improve shipping services in the country. Having recognized the importance of marine transport, the GOV through the Ministry of Infrastructure & Public Utilities (MIPU) embarked on the Vanuatu Interisland Shipping Support Program (VISSP) with the support of the Asian Development Bank (ADB) and the New Zealand Government (NZAid).

B. The subproject sites have been selected and work on the design of the most suitable wharf structures for these locations were done and a Contractor was selected and offered the contract. MIPU wishes to acknowledge any location where issues relating to the ownership of land and its foreshore exists that may hinder the construction of the wharf for the good of the community.

C. This Agreement sets out the terms and conditions for the application of resources to rehabilitate the existing wharf at Litzlitz Port and construct a new passenger shelter in the adjacent lease spaces located at Litzlitz Wharf area, Central Malekula, MALAMPA Province and approved by the Customary Land Owners.

D. This Agreement also sets out the process and plans for the long term access of the wharf facility by the public as well as for the management of the Litzlitz Wharf through the creation of an appropriate entity in the near future after the completion of the wharf.

2. Objectives of VISSP

A. The key objective of VISSP is to facilitate increased economic and social activities and accessibility through the rehabilitation or construction of wharves on remote provincial areas. The wharves when reconstructed are expected to restore accessibility, improve transport connectivity to outer islands in Vanuatu, allow a resumption of or improve efficiency of economic activities and improve access to social services, including public health and education facilities. The project will also make wharves less vulnerable to climate change and natural hazards.

B. Litzlitz Wharf has been chosen for rehabilitation following extensive investigations by MIPU thorough discussions and investigation with technical persons, engineers, Provincial Government and local community and custom Land owners.

94 C. This MOU seeks to facilitate an agreement between the GOV, the customary land owners and those with perpetual interests in the land where the wharf is located to enable the rehabilitation construction of the wharf to proceed without hindrance. The agreement attempts to include all stakeholders especially those with a declared interest in the land to come and agree and resolve any difference that may exist.

D. This MOU seeks to also facilitate the long term access to the wharf facility once it is constructed and operational, including the processes for ensuring securing the tenure and lease of the land area which the wharf facility is located upon.

E. MIPU intends that the construction of the wharf will be for the benefit of the people of Vanuatu and also within the community where the wharf is located and for the wider catchment area of MALAMPA Province, and ultimately for the improvement of inter-island travel for social and economic development of the area.

F. In the construction phase, MIPU aims to assist the local economy of the locality by ensuring that labour and materials are obtained locally if and when necessary, by facilitation of the Leaseholder where necessary.

3. Land Owners’ Obligations

A. The area which includes the site upon which the Litzlitz Wharf is located is referred to as: “AMBET KASTOM LAND”.

B. Malmelif Clan, a collective group of Land Owners, having been declared by the Malekula Island Court in Land Case No. 3 of 1993 to be the customary land owners of AMBET KASTOM LAND.

C. Malmelif Clan, through their duly appointed representative s confirm that as a custom land owning group, they have responsibility and custodianship over the designated area upon which the Litzlitz Wharf rehabilitation and construction under VISSP will take place.

D. The Malmelif Clan agree to the following:

1. Unrestricted access to MIPU and its Contractor(s) to the wharf site for construction and any other purpose related to the project, especially with the creation of access points, roads, fences and mobilization works.

2. That the collective group of Land Owners work together to ensure that the rehabilitation of the wharf, the work of the Contractors and the overall area of the construction site is safe, suitable and cleared of any danger or harm to the Contractor.

3. The project has the full and unequivocal support of the collective group of Land Owners where the wharf site is situated.

4. Following construction there will be unimpeded access to the wharf for all those wishing to use the wharf, including the use of designated parts of the wharf as a landing for inhabitants, residents and community members of Litzlitz.

5. To bring any dissatisfaction or complaint in regard to the Contractor to MIPU and VPMU and not to hinder the work of the Contractor.

95 6. To address any internal, tribal, clan or family disputes so as not to cause any delay to the smooth and timely construction of the wharf.

E. The Malmelif Clan in consultation with the GOV, will work towards creation of a proper lease agreement for the site of the Litzlitz Wharf only after the wharf has been rehabilitated and becomes operational. To ensure the long term access of the wharf to the general public and all its users.

F. The Malmelif Clan in consultation with the MALAMPA Provincial Government and GOV, work towards establishment of a commercial entity to be incorporated in accordance with the laws of Vanuatu to manage and operate the Port Sandwich Wharf and for such an entity to represent the interests of the GOV, the Land Owners, the users of the Litzlitz Wharf, Shipowners, the local authorities of MALAMPA and MALAMPA Provincial Government respectively.

4. MIPU’s Obligations

1. To facilitate the construction of the wharf in accordance with the specifications and design of the VISSP.

2. To ensure the use of local construction materials and labour, where possible, for the construction.

3. To provide skilled supervision and organization of the project through the use of appointed Contractors.

4. To ensure, through the Contractor has all necessary construction equipment specified within the Contract is available.

5. To provide, through the Contractor, all necessary construction materials as specified in the Contract.

6. To engage the formal support of the GOV to work with the collective group of Malmelif Clan to create a proper lease over the area upon which the Litzlitz Wharf is located.

7. To engage the formal support of the GOV to establish a commercial entity to be incorporated in accordance with the laws of Vanuatu to manage and operate the Litzlitz Wharf and for such an entity to represent the interests of the GOV, the Land Owners, the users of the Litzlitz Wharf, Ship-owners, the local authorities of MALAMPA Provincial Government.

8. To deal with the complaints of the other parties in relation to the presence of the Contractor in order to avoid delays in the construction process. However, MIPU does not accept liability for acts of omissions or defaults of the Contractor.

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Appendix 6: Consultation Records (years 2019 – 2021)

Consultation Date of Consultation Purpose Consultation Participants Site Consultation Lenakel, Tanna 6 November 2019 The Design Consultant (BECA)  Jeffrey Kaut – President,Tafea conducted their site visits with Provincial Government (TPG) guidance from VPMU, and met with  Joe Iautim Secretary General, the TAFEA Provincial Government. – TPG Discussion were based on past  Kukrey Nakat Project Officer, design, and concept designs for the – TPG new project phase, of both the wharf repairs and passenger  Simon Tor Bebe – VPMU shelter.  Alan Sewell – VPMU  Kane Satterthwaite – BECA  Ann O’Meagher – BECA  Andrew Hill – BECA  Piefen Chua – BECA  Nicolson Garae – Kramer Ausenco Litzlitz, Malekula 7 November 2019 The Design Consultant (BECA)  Norbet Ngpan – President, conducted site visit with guidance Malampa Provincial Government from VPMU, and met with the (MPG) MALAMPA Provincial Government.  Kalwajin Skepha – Secretary Discussions were based on past General, MPG design, and new concept design for MPG Concillors next project phase, of both the  wharf repairs and passenger  Lapi Kalmet– Project Officer, MPG shelters.  Simon Tor Bebe – VPMU  Alan Sewell – VPMU  Liku Jimmy - MFAT  Kane Satterthwaite – BECA  Ann O’Meagher – BECA  Andrew Hill – BECA  Piefen Chua – BECA Nicolson Garae – Kramer Ausenco Simonsen, 11 December The Design Consultant (BECA)  Peter Patty – Lord Mayor, Luganville, 2019 conducted site visit with guidance Luganville Town Santo from VPMU, and met with the  Onen Gaviga Deputy Mayor, Luganville Harbour Master, the – Luganville Town Luganville Municipal Council, and Provincial Planner of SANMA  Johnathan Iavere, Town Clerk, Provincial Government Luganville Town Discussions were based on past  Georgina Faerua, Provincial design, and new concept design for Planner, Sanma Provincial next project phase, of both the Government wharf rehabilitations and  Captain Terry Ngwele – Luganville construction of passenger shelters. Harbour Master  Simon Tor Bebe – VPMU  Alan Sewell – VPMU  Kane Satterthwaite – BECA  Ann O’Meagher – BECA

98  Andrew Hill – BECA  Piefen Chua – BECA  Cushla Loomb - BECA

Port Sandwich, 12 December The Design Consultant (BECA)  Lulu Leymang – Area Lamap, 2019 conducted site visit with guidance Administrator, Lamap Malekula from VPMU, and met with the Area  Chief Mathias Administrator of Lamap representing the MALAMPA  Custom landowners: Chief Leonard Provincial Government in the area, Naly, Chief Vanusoksok Filibert, the Chief and the custom Chief Toktok Rudy, Chief Noel landowners of Port Sandwich Luan, and their family members. Wharf.  Simon Tor Bebe – VPMU Discussions were based on past  Uravo Nafuki – VPMU design, and new concept design for next project phase, of both the  Alan Sewell – VPMU wharf rehabilitations and  Kane Satterthwaite – BECA construction of passenger shelters.  Ann O’Meagher - BECA The custom landowners signed a new MOA as the previous one had  Peifen Chua – BECA expired.  Cushla Loomb – BECA  Andrew Hill - BECA Litzlitz, Malekula 26 October 2020 The VPMU team visited the  Pierre Chanel – Vice President, MALAMPA Provincial Government MPG (MPG) representatives and  Kalwajin Skepha SG, MPG provided an update to the Litzlitz – Wharf project as well as the Port  Lapi Kalmet – Project Officer, MPG Sandwich Wharf project.  Jone Roqara – VPMU The MPG team offered their  Kiery Manassah – VPMU continued support and stated that the project site is part of their overall  Simon Tor Bebe – VPMU 10 year plans.  Uravo Nafuki – VPMU  Jessy Kone Ham – VPMU

Lenakel, Tanna 29 October 2020 The VPMU team visited the TAFEA  Jeffrey Kaut – President, TPG Provincial Government  Joe Iautim SG, TPG representatives and provided an – update to the Lenakel Wharf  Kukrey Nakat – Project Officer, project. TPG The TAFEA Provincial Government  Kiery Manassah – VPMU (TPG) relayed their appreciation  Simon Tor Bebe – VPMU that the project was being revived and offered their continued support.  Uravo Nafuki - VPMU South Paray, 17 February 2021 The VPMU team, and officers from  Matarau Tefeke Clan – Barak Port Vila the relevant Government Sope, Witeu Sope, Ioane Simon departments, updated the South Omawa Paray wharf custom landowners on  Tuekot Tribe Johnson Wabaiat, the project status. – Kaltoi Mermer, Elisabeth Wabaiat  Camillia Garae – Commissioner of Mines  Troy Vutingele – Representative from Public Works Department  Seloni Toakuu – Office of the Maritime Regulator

99  Hickson Siba – Office of the Maritime Regulator  Robson Tari – Acting Director, Department of Ports & Marine  Henry Worek – Acting DG MIPU  Anna Salwai Tavoa – Director, VPMU  Kiery Manassah – VPMU  Jone Roqara – VPMU  Simon Tor Bebe – VPMU  Uravo Nafuki – VPMU South Paray, 19 February 2021 The VPMU team updated members  Belinda Paulan – Mtakseu Mama’s Port Vila of the South Paray Community Association, Pango Village Liaison Committee(CLC) on the  Apikaili Sope South Paray Wharf project status. – Mtakseu Mama’s Association, Pango Village  Leitonga Kalsakau - Wataba This was the first CLC meeting after Women’s Group, Ifira Island the project was halted.  Serah Paton – Mtakseu Association, Pango  Matthew Ayong – Ifira Water Taxi Association, Ifira Island  Jerry Songolapa – Diver, Mele Village  Amos Ronnie – Department of Tourism  Jeffrey Kaitip – Department of Local Authority  Kiery Manassah – VPMU  Jone Roqara – VPMU  Uravo Nafuki – VPMU  Simon Tor Bebe - VPMU

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JDS Divers, Mele Village

Ifira Water Taxi Association, Ifira Island

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