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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