Ebeye Water Supply and Sanitation Project (Additional Financing) (RRP RMI 46346)

Due Diligence Report

Project Number: 46346-003 Date: October 2020

Republic of the Marshall Islands: Ebeye Water Supply and Sanitation Project (Additional Financing)

Prepared by the Kwajalein Atoll Joint Utility Resources, Inc. (KAJUR) for the Asian Development Bank.

This 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. Your attention is directed to the “terms of use” section of this website.

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.

ABBREVIATIONS

ADB – Asian Development Bank ASPA – American Samoa Power Authority COVID-19 – coronavirus disease DBO – design-build-operate DDR – due diligence report EA – executive agency (MOF) EIA – environmental impact assessment EMP – environmental management plan EWSSP – Ebeye Water Supply and Sanitation Project FY – Financial year GORMI – Government of the Republic of the Marshall Islands GRM – grievance redress mechanism IA – implementing agency (MOI) KADA – Kwajalein Atoll Development Authority KAJUR – Kwajalein Atoll Joint Utility Resources Inc. PMU – Project Management Unit PSC – project steering committee RMI – Republic of the Marshall Islands SPS – Safeguards Policy Statement

WEIGHTS AND MEASURES ha - hectare m - meter m2 - square meter m3 - cubic meter TEU - twenty-foot equivalent units

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EXECUTIVE SUMMARY

On 28 September 2015, the Asian Development Bank (ADB) approved a project grant for the administration of the Ebeye Water Supply and Sanitation Project (EWSSP). The project impact will be reduced incidence of waterborne disease on Ebeye and the project outcome will be improved access to safe water and improved sanitation. The Project has five outputs: (i) secure and safe freshwater supplies; (ii) effective and efficient sewerage services; (iii) enhanced hygiene awareness and improved hygiene behaviors; (iv) secure electricity supply for water and sewerage operations; and (v) financial and technically sustainability of the Kwajalein Atoll Joint Utility Resources Inc. (KAJUR). The project was declared effective on 3 December 2015 and is scheduled to close on 30 June 2022. Substantial progress has been made towards delivering the project’s impact, outcome, and outputs. However, further assistance is required to ensure that the Project remains sustainable.

The additional financing (the project) will support the operation and maintenance to ensure the sustainability of the current project and improve water supply and hygiene behaviors essential to prevent the transmission of the coronavirus disease (COVID-19). This Due Diligence Report (DDR) has been prepared to record the due diligence process that was conducted to examine the land acquisition and resettlement impacts of the additional financing. This DDR will be disclosed to key stakeholders and uploaded onto the ADB website.

Scope of Land Acquisition and Involuntary Resettlement The additional financing components will not require additional land acquisition, nor will there be any involuntary resettlement impacts. Most activities to be implemented under the additional financing involve capacity development and organizational strengthening of KAJUR. There are three components that will require civil works and/or related activities. (i) The upgrade of the desalination plant will involve anti-corrosion protection treatment to pipes and equipment, minor structural improvements, and the addition of a back- up generator. The upgrading activities will be located within the existing KAJUR facility where the desalination plant is located. The KAJUR facility is under a master lease agreement with the traditional landowners. There will be no physical or economic displacement impacts. (ii) The installation of the high-voltage electrical switchgear will be located within the existing KAJUR power station. This KAJUR facility is under a master lease agreement. There will be no physical or economic displacement impacts. (iii) The additional financing will also extend the household fixtures program for 2 years to enhance demand management by reducing water wastage from faulty plumbing fixtures and to ensure the poorest households can have access to safe water and improved sanitation. The program will be conducted with the consent of owners and will not have adverse impacts on structures or assets. There are no known legacy issues, land disputes or cumulative impacts related to the original project and additional financing.

Indigenous Peoples The people of Ebeye do not meet the ADB criteria (distinctiveness and vulnerability) of indigenous peoples. They are part of mainstream Micronesian society, and there are no communities on Ebeye that have cultural, social, and political institutions distinct from dominant society. The additional financing will not directly or indirectly affect the dignity, human rights, livelihood systems or culture of indigenous peoples. Impacts on livelihoods or the cultural, ceremonial, and spiritual uses are not envisaged to any groups.

Consultations and Information Disclosure Consultations were carried out with key project stakeholders on Ebeye to ensure that the final project design has stakeholder ownership and sustainably addresses the needs of project beneficiaries including the Government of RMI, the Kwajalein Leadership, the Kwajalein Atoll Local Government (KALGOV), KAJUR and more importantly, the wider Ebeye community. Results from these consultations were shared with the project feasibility team and incorporated into design.

During project implementation, these consultations will continue with identified key stakeholders, as well as households that live near to the desalination plant and power station. A community wide communications campaign about the household fixtures program will continue during the additional financing, and additional consultations will be held with communities of Loi, Ebwaj, and Guegeegue regarding their sanitation systems. This due diligence report will be disclosed to the project steering committee and uploaded onto the ADB website.

Grievance Redress Mechanism A grievance redress mechanism (GRM) has been established to uphold social and environmental safeguards performance by addressing concerns and complaints promptly and transparently with no impacts (cost, discrimination) for any reports made by affected peoples. The GRM works within existing legal and cultural frameworks, providing an additional opportunity to resolve grievances at the local, project level.

Legal Framework The project’s principles relating to social safeguards are guided by RMI Laws and ADB SPS principles on land acquisition, resettlement, and compensation. The principal Marshall Islands laws governing land acquisition, resettlement, and compensation presently include (i) RMI Constitution and (ii) Land Acquisition Act 1986.

Institutional Arrangements The executing agency is the Office of the Chief Secretary, and the implementing agency is KAJUR. A project steering committee (PSC) provides strategic direction and guidance. A project management unit (PMU) has been established within KAJUR and is responsible for the overall implementation of the project and additional financing.

Monitoring and Reporting The PMU will monitor all unanticipated social safeguards impacts on an ongoing basis and report these matters within the project’s quarterly progress reports and semi-annual safeguard monitoring reports. If there are changes during implementation that require land or cause additional impacts, KAJUR will prepare an updated due diligence report or resettlement plan. The safeguards documents will be cleared by ADB and uploaded to the ADB website prior to the commencement of land clearance and construction works.

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CONTENTS

ABBREVIATIONS EXECUTIVE SUMMARY I. INTRODUCTION 1 II. BACKGROUND 1 III. PROJECT DESCRIPTION 3 IV. SCOPE OF LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT IMPACTS 1 V. INDIGENOUS PEOPLES 3 VI. CONSULTATIONS AND INFORMATION DISCLOSURE 4 VII. GRIEVANCE REDRESS MECHANISM 5 VIII. LEGAL FRAMEWORK 6 IX. INSTITUTIONAL ARRANGEMENTS 7 X. MONITORING AND REPORTING 8 XI. ANNEXES 1

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I. INTRODUCTION

1. In September 2015, the Asian Development Bank (ADB) approved a grant for the Ebeye Water Supply and Sanitation Project (EWSSP) for the Republic of the Marshall Islands. The project is being co-funded by the Government of Australia, with counterpart funds from the Government of the Republic of the Marshall Islands. The project is scheduled to close on 30 June 2022. The Government of the Republic of the Marshall Islands has requested additional financing to support the operation and maintenance to ensure the sustainability of the current project and improve water supply and hygiene behaviors essential to prevent the transmission of the coronavirus disease (COVID-19).

2. The project and the proposed additional financing is aligned with RMI’s water and sanitation policy objectives, as articulated in RMI’s draft National Strategic Plan 2020-2030 of (i) improved sanitation for better health and well-being, and (ii) constant access to drinking water that meets World Health Organization standards.1 The project will contribute to goal 6 of the Sustainable Development Goals to ensure access to water and sanitation for all. It aligns with the ADB’s Strategy 2030 operational priorities to: (i) address remaining poverty and reducing inequalities (OP1); (ii) accelerating progress in gender equality (OP2); (iii) tackle climate change, building climate and disaster resilience, and enhance environmental sustainability (OP3); (iv) make cities more livable (OP4); and (v) strengthen governance and institutional capacity (OP6). The Project executive agency is the Office of the Chief Secretary, and the implementing agency is Kwajalein Atoll Joint Utility Resources, Inc. (KAJUR).

3. This DDR has been prepared to record the due diligence process that was conducted to examine the land acquisition and resettlement impacts of the additional financing. This DDR will be disclosed to key stakeholders and uploaded onto the ADB website.

II. BACKGROUND

4. An assessment of the current project implementation status and achievements demonstrate solid project progress. Over the past 4 years, the project has increased Ebeye’s capacity to produce freshwater from 249 cubic meters per day (m3/day) to 1,660 m3/day increasing the availability of water from 26 liters per person per day to 180 liters per person per day, expanded the island’s freshwater, saltwater, and sewerage networks by 8.5 kilometers (km), rehabilitated and expanded the existing sewerage system by 2.6 km, installed new sewage treatment facilities (1,400 m3/day) and a constructed a new 0.35 km long sewage marine outfall. A contract to upgrade Ebeye’s electrical distribution system (replacement of switchgear and power poles) is ongoing and is scheduled to be completed in August 2020 but may be delayed due to COVID-19 impacts including restrictions on the movement of contractor personnel and disruptions to equipment and materials supply chains.

5. There is also measurable progress towards delivering the project’s target impact and outcomes. The average monthly number of cases of diarrhea reported by the Ebeye Hospital has declined by almost 20% since following the implementation of the project’s hygiene awareness and education program and the commissioning of the new desalination plant (provided by the project through a design-build-operate contract). All 1,465 household on Ebeye now have access to freshwater, saltwater, and sewerage networks service.

1 Republic of the Marshall Islands. 2020. National Strategic Plan 2020–2030. Majuro.

6. However, further assistance is required to build the financial and technical capacity of KAJUR (the project implementing agency). KAJUR has developed a new water and sewerage tariff framework to apply to all water and sewerage services and targeting recovery of water and sewerage operations and maintenance costs. The tariff framework is scheduled to apply from 1 October 2020. While KAJUR has conducted consultations on the willingness to pay with the Ebeye community on universal water and sewer tariffs, the recovery of O&M costs may take a longer time than initially anticipated due to the shrinking of households’ income due to COVID- 19. Therefore, further investment is required before cost recovery of O&M is achieved.

7. Further assistance is also required to build KAJUR’s technical capacity to operate and maintain the new desalination plant and water supply system, which will also help to achieve financial sustainability. When the plant’s design-build-operate (DBO) contract finishes in July 2020, KAJUR would not be able to take it over due to the limited operations and maintenance capacity. The existing DBO contract needs to be extended to enhance skill transfer to KAJUR to operate and maintain the plant after the contact ends. Additional minor investments to protect the plant from corrosion and to strengthen the plant building structure, and the provision of a standby generator will also improve the sustainability of desalination plant.2

8. As part of the response to COVID-19, the government requested ADB support to review and recommend approaches to improve the onsite sanitation systems in the small islet communities immediately north of Ebeye. Additional requirement of hygiene awareness and handwashing campaign to prevent the transmissible diseases including COVID-19, will be delivered under the proposed ADB regional technical assistance.3

9. The project has been confirmed to meet the eligibility criteria for additional financing. The project has been effective but further work is required to ensure its sustainability. The government is complying with the grant covenants and assurance (although some have been complied late) and project’s environmental and involuntary resettlement safeguard requirements are being met. The additional financing modality is suitable because of (i) close linkages with the current project’s scope and will be efficiently implemented under the same implementation arrangements; (ii) the natural continuity of the current project; and (iii) the opportunity to sustain the benefits of the current project. Project preparatory activities include (i) environmental and social assessments are carried out under the current project; (ii) review of the ongoing DBO contract; and (ii) terms of reference of the capacity building consultants.

10. The project remains highly relevant in the COVID-19 context. The sustainable water supply and sanitation, and hygienic conditions are essential to stop the transmittable virus spreading and help to restore the economics in a safe environment.

2 The unreliable supply of electricity to desalination plant between February and August 2019 and in January 2020 resulted in substantial transient hydraulic loads which damaged some plant pipework and highlighted the need to strengthen several structural elements of the plant building. The standby generator, as well as improvements to Ebeye’s electricity generation systems, will reduce the risk of damage from transient hydraulic loads caused to power outages. 3 ADB. 2020. Draft Technical Assistance Report: Strengthening Water, Sanitation and Hygiene Practices and Hygiene Behavioral Change in the Pacific [Project Number: 54227-001]. Manila. 2

III. PROJECT DESCRIPTION

11. The additional financing will support the operation and maintenance to ensure the sustainability of the current project and improve water supply and hygiene behaviors essential to prevent the transmission of COVID-19. The project sustainability will be improved which is in line with the lessons learned for the Pacific Department in the Independent Evaluation Department’s Annual Evaluation Report of 2019. The project design reflects lessons from the current project and previous relevant ADB and development partner sector operations in Pacific developing member countries. Key lessons include (i) ensuring adequate financial and technical capacity are essential to sustainable delivery of water supply and sewerage services, and (ii) urban service demand and willingness to pay must be ensured.

12. The impact and outcome statement will remain same as the current project. The overall project impact will be reduced incidence of waterborne disease on Ebeye and is aligned with the Marshall Islands’ national development water and sanitation policy objectives of (i) improved sanitation for better health and well-being, and (ii) constant access to drinking water that meets World Health Organization standards, as articulated in the country’s National Strategic Plan, 2020–2030. The outcome will be improved access to safe water and improved sanitation. The overall project outputs will be strengthened. The additional financing will support following key outputs:

(i) Output 1: Secure and safe freshwater supplies ensured. The sustainability of KAJUR’s water supply operations will be strengthened by (a) extending the desalination plant DBO contract for another 2 years with provision of remote monitoring and O&M support to strengthen the operations and maintenance capacity of KAJUR desalination plant personnel. (b) upgrading the desalination plant by providing anti-corrosion protection treatment to pipes and equipment, minor structural improvements, and provisions of 440 kVA backup generator. (ii) Output 2: Effective and efficient sewerage services provided. The additional scope of Output 2 will include a survey and review of onsite sanitation systems in the islet communities of Loi, Ebwaj, and Guegeegue (approximately 50 households or 320 people) linked by the Ebeye-Guegeegue causeway. The sanitation survey and review will recommend approaches to improve the sanitation, which plays important role to stop the transmissible disease such as COVID19. (iii) Output 4: Secure electricity supply for water supply and sewerage operations ensured. Output 4 will be expanded to include the provision of additional high voltage electrical switchgear will ensure the security of the electricity supply to the desalination plant and to other KAJUR water supply and sewerage assets. (iv) Output 5: Financial and technical sustainability of KAJUR improved. Additional activities to be delivered under output 5 include: (a) further strengthening of KAJUR’s financial management capacity by extending the services of KAJUR’s financial management advisor through intermittent inputs (8 months) over 2 years. The advisor will help KAJUR to implement the water and sewerage tariff framework during the initial implementation stage. By the end of 2 years, the tariff collection will cover the O&M cost of KAJUR; (b) strengthening KAJUR’s water supply asset management capacity to optimize freshwater and saltwater network operations and reducing the non-revenue water. A water distribution specialist will be recruited to provide intermittent on- the-job training (6 months over 2 years);

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(c) a technical advisor will be recruited to assist KAJUR’s capital works planning to further strengthen KAJUR’s project management capacity (4 months of intermittent inputs over 2 years); and (d) extension of the EWSSP household fixtures program for 12 months to enhance water demand management by maintaining plumbing fixtures and prepaid meters. This will also ensure the poor households on Ebeye can access safe water and improved sanitation.

A. Project Location

The project, including the activities within the additional financing, is located on Ebeye Islet, which sits at the southeastern end of Kwajalein Atoll in the Republic of the Marshall Islands, roughly midway between Australia and Hawaii in the western Pacific Ocean (

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13. Figure 1). Ebeye is a small, low-lying coral islet with a land area of about 40 hectares and a maximum elevation of about 3 meters above mean sea level. A short ferry ride to the southwest of Ebeye lies Kwajalein Island, which houses the main airfield and central base of the United States missile defense testing and space tracking facility known as the Ronald Reagan Ballistic Missile Defense Test Site. The scattered facilities of the base occupy and utilize most of the rest of the land and lagoon area of Kwajalein Atoll.

14. Ebeye is a densely populated urban community that serves as the commercial and government center of the Ralik Chain of the Marshall Islands. The 2011 Census recorded 1,103 households with 9,614 people on Ebeye with an average household size of 8.7 persons. One of the reasons for the dense population on Ebeye is its access to jobs at the US base, known locally as “Kwaj,” where roughly 1,000 Marshallese work at any one time. The great majority of these Marshallese workers live on Ebeye and commute daily by ferry to the base, but some live semi- permanently on the base and visit their family and friends on Ebeye during free time. Ebeye population fairly stable with an average increase of just 0.4% per annum.

B. History of Land Acquisition

15. Most land on Ebeye is occupied or used with permission from the traditional chiefs/landowners, who are known as Iroij and Alap (71% of land), by family rights or by those closely related to title holder (21%) or through a recognized land title (4%). There are four Alaps on Ebeye. The Iroij, Senior Dri Jerbal and the four Alaps are members of the Project Steering Committee. Much of the land needed under the original project was physically alienated from the traditional owners and placed in public hands many decades ago. Firstly, this occurred during the Japanese occupation and then during the post-WWII period of US military administration, and finally, to a lesser extent, during the period of Marshallese self-government from 1979 until independence in 1986. In the 1980s the Kwajalein Atoll Development Authority (KADA) was established as a result of the first U.S.-RMI Compact of Free Association. KADA signed a comprehensive land lease agreement with the landowners of Ebeye that dedicated existing and planned road and utility corridors to public use “in perpetuity” and “for no additional compensation” while also securing annual lease payments for the remainder of the leased area, specifically including the land underlying all existing and planned government facilities on Ebeye.

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Figure 1: Project Location

16. The KADA lease formalized and monetized the long-standing use of customary land for public purposes on Ebeye. The lease itself was made possible by and explicitly contingent on continued U.S.-RMI Compact funding. The lease dedicated existing and planned utility corridors “for public use in perpetuity”, however, it did not designate any entity to manage those corridors on behalf of the public. The Kwajalein Atoll Joint Utilities Resources (KAJUR) was incorporated in 1990 under the laws of the RMI. KAJUR was established by the Kwajalein Iroijlaplap Imata J. Kabua, originally as a private entity governed by the KADA Board of Directors. However, in October 1999, RMI and KADA awarded a 2-year management contract to the American Samoa Power Authority (ASPA) to assume operational control of KAJUR with another 2 additional years thereafter. In April 2003, ASPA’s contract ended.

17. In May 2006, the RMI Cabinet approved the transfer of all management responsibilities of KAJUR to the Board of Directors of the Marshalls Energy Company Inc., a component unit of RMI. On July 24, 2006, the Cabinet approved the introduction of legislation to the Nitijela (legislative power) to repeal the enabling legislation that created KADA. At its current status, KAJUR’s financial statements are incorporated into the financial statements of the RMI Government, as a component unit. KAJUR is recognized as a state-owned enterprise. When KADA was dissolved in the 2000s, KAJUR nor any other entity did not take over the lease, as U.S.-RMI Compact funds were being used to subsidize KAJUR’s operating losses rather than paying the land lease. As a

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consequence, the lease was broken repeatedly by non-payment. A new Master Lease was negotiated in 2016.

18. The land for public purposes, including water and wastewater facilities and infrastructure, is leased by the government from traditional landowners. During the technical assistance project, there were extensive consultations with traditional landowners and the government to secure the formal right to occupy land underlying existing and proposed infrastructure of KAJUR. Due to the lapse of the earlier lease, legal ownership of all KAJUR facilities on Ebeye lay with the traditional owners. Throughout the years, however, the landowners have continued to be supportive of KAJUR operations and services. The consultations have led to a new Master lease agreement with the traditional landowners (Iroji, Alaps and Dri Jerbal) and RMI government for public facilities on Ebeye.

19. The Master Lease became effective on 21 October 2016 and will terminate on 20 October 2066 (Annex 1). It covers all waste water facilities, water facilities, powerplant and associated areas, sea-water reverse osmosis plant and associated tanks; and north and south fresh water head reservoirs, docks, public schools, hospitals, shelters, government office buildings, public recreational facilities, and other existing facilities for public use. This is on the condition that (i) the user continues to pay rent at the existing annual rate, and (ii) the facilities continue to be used for public purposes.

20. The new Master Lease also acknowledges the need to develop public facilities and, in the process, demolish existing facilities. It also states that the Lessor (traditional landowners) will exercise all rights and powers as landowners under traditional Marshallese Customary Law and Practice to assist the Lessee in its efforts to relocate occupants as necessary from existing residences or business premises in order to permit the Lessee to complete redevelopment activities. In such circumstances, the Master Lease states that the Lessee shall pay the owner of such residence or business premises just compensation for the value of such residence or business. The Master Lease also includes the causeway extending north of Ebeye to Gugeegue and further including the entirety of lands to the pass consisting of Lojjerok, Bwijinkur, Ebwaj and Gugeegue.

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IV. SCOPE OF LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT IMPACTS

21. The additional financing components will not require additional land acquisition, nor will there be any involuntary resettlement impacts. Most activities to be implemented under the additional financing involve capacity development and organizational strengthening of KAJUR. There are two components that will require civil works and/or related activities. Table 1 provides a summary of the activities to be implemented within the Additional Financing, and below are further details of the land-related activities.

Table 1: Summary of Land and Involuntary Resettlement Impacts

Involuntary Output Activities Land Requirements Resettlement Impacts Output 1: Extending the desalination None None Secure and safe plant design-build-operate Capacity No civil works. freshwater contract for another 2 years strengthening of supplies with provision of remote operations within ensured. monitoring and O&M support KAJUR. to strengthen the operations and maintenance capacity of No civil works. KAJUR desalination plant personnel.

Upgrading the desalination Yes None plant by providing anti- The upgrading There will be no corrosion protection activities will be physical or treatment to pipes and located within the economic equipment, minor structural existing area of the displacement improvements, and desalination plant. impacts. provisions of 440 kVA backup This is an existing generator. All activities will be KAJUR facility under a within the existing master lease KAJUR facility. agreement.

Output 2: Survey and review of onsite None None Effective and sanitation systems in the islet Technical advice. No civil works. efficient communities of Loi, Ebwaj, and sewerage Guegeegue (approximately 50 No civil works. services households or 320 people) provided linked by the Ebeye - Guegeegue causeway. The sanitation survey and review will recommend approaches to improve the sanitation, which plays important role to stop the transmissible disease such as COVID19.

Output 4: Provision of additional high Yes None Secure voltage electrical switchgear The installation of the There will be no electricity will ensure the security of the high voltage electrical physical or supply for water electricity supply to the switchgear will be economic

Involuntary Output Activities Land Requirements Resettlement Impacts supply and desalination plant and to other located within the displacement sewerage KAJUR water supply and existing area of the impacts. operations sewerage assets. power station. This is All activities will be ensured an existing KAJUR within the existing facility under a master KAJUR facility. lease agreement.

Output 5: Strengthening of KAJUR’s None None Financial and financial management capacity Capacity No civil works. technical by extending the services of strengthening of sustainability of KAJUR’s financial financial management KAJUR management advisor through within KAJUR. improved intermittent inputs (8 months) over 2 years. The advisor will No civil works.

help KAJUR to implement the water and sewerage tariff framework during the initial implementation stage. By the end of 2 years, the tariff collection will cover the O&M cost of KAJUR.

Strengthening KAJUR’s water None None supply asset management Capacity No civil works. capacity to optimize freshwater strengthening of water and saltwater network personnel within operations and reducing the KAJUR. non-revenue water. A water distribution specialist will be No civil works. recruited to provide intermittent on-the-job training (6 months over 2 years).

A technical advisor will be None None recruited to assist KAJUR’s Capacity No civil works. capital works planning to further strengthening of strengthen KAJUR’s project project management management capacity (4 within KAJUR. months of intermittent inputs over 2 years). No civil works.

Extension of the EWSSP Yes None household fixtures program for Household fixtures will The installation of 12 months to enhance water be installed onto household fixtures demand management by house structures with will not have maintaining plumbing fixtures the consent of the adverse impacts on and prepaid meters. This will structure owner. structures or assets. also ensure the poor households on Ebeye can Unanticipated access safe water and impacts (such as improved sanitation. accidental damage) will be monitored by

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Involuntary Output Activities Land Requirements Resettlement Impacts KAJUR, with replacement assets/ structures provided or compensation at replacement value.

22. Upgrading of the desalination plant. The upgrade will involve anti-corrosion protection treatment to pipes and equipment, minor structural improvements, and the addition of a back-up generator. The upgrading activities will be located within the existing KAJUR facility where the desalination plant is located. The KAJUR facility is under a master lease agreement. Figure 2 shows photos inside the desalination plant. There will be no physical or economic displacement impacts.

23. Installation of high voltage electrical switchgear. The high-voltage electrical switchgear will be located within the existing KAJUR power station. This KAJUR facility is under a master lease agreement. There will be no physical or economic displacement impacts.

24. Installation of household fixtures. The Additional Financing will extend the household fixtures program. The program funds and installs household fixtures to support access to the water supply and sanitation services for poor households. The household fixtures program will not have adverse impacts on structures or assets. If there are unanticipated impacts during installations (such as accidental damage to personal property/assets) KAJUR will replace or fix the asset or provide compensation at replacement value.

Figure 2: Inside the Desalination Plant

25. There are no known legacy issues, land disputes or cumulative impacts related to the original project and additional financing. If there are changes during the implementation that require land or cause additional impacts, KAJUR will prepare an updated due diligence report or resettlement plan. The safeguards documents will be cleared by ADB and uploaded to the ADB website prior to the commencement of land clearance and construction works.

V. INDIGENOUS PEOPLES

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26. The people of Ebeye do not meet the ADB criteria (distinctiveness and vulnerability) of indigenous peoples. They are part of mainstream Micronesian society, and there are no groups in RMI or on Ebeye that have cultural, social, and political institutions distinct from dominant society. The additional financing will not directly or indirectly affect the dignity, human rights, livelihood systems or culture of indigenous peoples. It will not cause any physical displacement and is not linked with commercial development of the cultural resources of indigenous peoples. Impacts on livelihoods or the cultural, ceremonial, and spiritual uses are not envisaged to any groups.

VI. CONSULTATIONS AND INFORMATION DISCLOSURE

27. The project has three primary project stakeholders of importance to land-related matters. The first are the traditional landowners, which under Marshall Island’s law means principally the Iroij, Alap, and Senior Dri Jerbal (if any) of each weto (plot of clan land). By their signatures, the three individuals of the Iroij, Alap, and Senior Dri Jerbal, holding the titles over a particular piece of land, are taken legally to represent and commit all other persons having a traditional claim to that land. None of the traditional titles mentioned above are in dispute on Ebeye at present.

28. The second primary stakeholder in regard to land matters is the national and local government, which is represented by KAJUR and its parent company, RMI Combined Utilities Board, and by the Chief Secretary of the national government, who chairs the Project Steering Committee (PSC). The PSC meets quarterly to provide strategic direction, guidance, and oversight of the original Project and will continue for the Additional Financing. Other members of the PSC include: (i) the Deputy Chief Secretary, (ii) a Senator representing Kwajalein, (iii) Mayor of Kwajalein, (iv) 2 representatives from KALGOV; (v) the Assistant Secretary of Health (Ebeye), (vi) the Assistant Secretary of Finance (Ebeye), (vii) the Assistant Secretary of Education (Ebeye), (viii) a representative from the Environment Protection Agency (Ebeye), (ix) the General Manager of KAJUR, and (x) 2 representatives from Ebeye-based NGOs or CSOs.

29. During the original project, KAJUR has kept the Iroij informed about each step of project design and implementation and has confirmed that the Iroij participated in the lease negotiations and agreements. Specifically, with regards to the new utility corridors, new pumping stations, new sewage outfall pipe and other aspects of new land requirements for public purposes, KAJUR consulted individually with the three senior landowners all expressed their support for granting easements for the project components. All gave as their reason for supporting the easements that the development would be good for the people.

30. During preparation of the additional financing, consultations were carried out with key project stakeholders on Ebeye to ensure that the final project design has stakeholder ownership and sustainably addresses the needs of project beneficiaries including the Government of RMI, the Kwajalein Leadership, the Kwajalein Atoll Local Government (KALGOV), KAJUR and more importantly, the wider Ebeye community. Results from these consultations were shared with the project feasibility team and incorporated into design. A summary of consultations held are included in Annex 2. During project implementation, KAJUR will also undertake the following: (i) consultations with nearby residents before the upgrading activities at the desalination plant; (ii) quarterly meetings with the Project Steering Committee; (iii) community-wide communications campaign about the household fixtures program; and

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(iv) consultations with the communities of Loi and Ebwaj regarding their needs and feedback on onsite sanitation treatment system options.

31. This Due Diligence Report has been disclosed to the Project Steering Committee and uploaded onto the ADB website.

VII. GRIEVANCE REDRESS MECHANISM

32. A grievance redress mechanism (GRM) has been established to uphold the project’s social and environmental safeguards performance. The purpose of the GRM is to record and address any complaints that may arise during the implementation phase of the project and/or any future operational issues that have the potential to be designed out during implementation phase. The GRM is designed to address concerns and complaints promptly and transparently with no impacts (cost, discrimination). The GRM works within existing legal and cultural frameworks, providing an additional opportunity to resolve grievances at the local, project level.

33. A GRM has been developed by the PMU to address complaints or concerns by persons that may be impacted by the project (Annex 3). A grievance is an issue, concern, problem, or claim (perceived or actual) that an individual or group wants KAJUR, the project management unit (PMU) or one of its contractors to address and resolve. The GRM is also open to employees to address their concerns if the concern is related to the project.

34. It outlines the procedures in which grievances concerning the performance or behavior of KAJUR, PMU, its contractors or employees will be accepted, assessed, and resolved. The GRM aims to reduce impacts and risks of the project and promote mutually constructive and trust-based relationships with the residents of Ebeye.

35. The GRM has been developed in accordance with the KAJUR policies and procedures, as well as ADB Safeguards Policy Statement. The GRM is designed to work within existing legal and cultural frameworks, providing an opportunity to resolve grievances at the project level. Specifically, the project GRM has been designed to: (i) be understandable, culturally appropriate, and accessible to project-affected persons, with its availability communicated to residents of the island; (ii) address a wide range of grievances and concerns – both those based in factual data and those arising from perceptions or misperceptions; (iii) be transparent and allow persons to submit a grievance at no cost and without retribution to the party that expressed the issue or concern; (iv) protect the identity of the persons raising the grievance; (v) resolve concerns in a timely manner, via consultation with stakeholders, or forward any unresolved cases to the relevant authority; (vi) report back to the community (through the Steering Committee) periodically on the types of cases and how they were resolved; and (vii) be evaluated periodically to ensure that it is working effectively.

36. ADB Accountability Mechanism. In addition to the GRM, people who are, or may in the future be, adversely affected by the project may submit complaints via the ADB’s accountability mechanism. The accountability mechanism provides an independent forum and process whereby people adversely affected by ADB-assisted projects can voice, and seek a resolution of, their problems, as well as report alleged violations of ADB’s operational policies and procedures.

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Before submitting a complaint to the accountability mechanism affected people should make an effort, in good faith, to solve their problems by working with the concerned ADB operations department. Only after doing that, and if they are still dissatisfied, should they invoke the accountability mechanism.

VIII. LEGAL FRAMEWORK

37. The project will comply with laws and regulations of the Republic of the Marshall Islands Government and the ADB’s Safeguard Policy Statement 2009 (SPS). The principal Marshall Islands laws governing land acquisition, resettlement and compensation presently include (i) RMI Constitution and (ii) Land Acquisition Act 1986.

A. Republic of the Marshall Islands Legal Framework

1. Constitution of the Republic of the Marshall Islands

38. The Constitution of the Republic of the Marshall Islands came into effect in 1979 and amendments were made in 1995. The Constitution sets forth the legitimate legal framework for the governance of the Republic. The Marshall Islands has a bicameral legislature consisting of the lower house or Nitijela (legislative power) and the upper house or Council of Iroij (customary power). The legal system comprises legislature, municipal, common, and customary laws. 2. Judiciary of the Republic of the Marshall Islands

39. According to the Constitution: the judicial power of the Republic of the Marshall Islands shall be independent of the legislative and executive powers and shall be vested in a Supreme Court, a High Court, a Traditional Rights Court, and such District Courts, Community Courts and other subordinate courts as are created by law, each of these courts possessing such jurisdiction and powers and proceeding under such rules as may be prescribed by law consistent with the provisions of this Article. 40. It is noted with regards to resettlement that: The jurisdiction of the Traditional Rights Court shall be limited to the determination of questions relating to titles or to land rights or to other legal interests depending wholly or partly on customary law and traditional practice in the Republic of the Marshall Islands. 3. Traditional Rights

41. The Constitution preserves the traditional rights of land tenure, indicating in ‘Article X Traditional Rights’ that: (i) Nothing in Article II shall be construed to invalidate the customary law or any traditional practice concerning land tenure or any related matter in any part of the Republic of the Marshall Islands, including, where applicable, the rights and obligations of the Iroijlaplap, Iroijedrik, Alap and Dri Jerbal. (ii) Without prejudice to the continued application of the customary law pursuant to Section 1 of Article XIII, and subject to the customary law or to any traditional practice in any part of the Republic, it shall not be lawful or competent for any person having any right in any land in the Republic, under the customary law or any traditional practice to make any alienation or disposition of that land, whether by way of sale,

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mortgage, lease, license or otherwise, without the approval of the Iroijlaplap, Iroijedrik where necessary, Alap and the Senior Dri Jerbal of such land, who shall be deemed to represent all persons having an interest in that land. 4. Land Acquisition Act 1986

42. The RMI Land Acquisition Act 1986 is defined as an Act to make provision for the acquisition of lands and servitudes for public use for payment of just compensation in terms of Article II, Section 5 of the Constitution of the Marshall Islands. The Act defines “land” to include “things attached to the earth”. The act covers the general provisions, preliminary investigation and declaration of intended acquisition, proceedings in court, payment of compensation, possession, and disposal, divesting of land and general items pertaining to such land acquisition. B. ADB Safeguard Policies

43. The Additional Financing must meet the requirements of the ADB’s Safeguard Policies. These are operational policies that seek to avoid, minimize or mitigate (and/or compensate for) adverse environmental and social impacts, including protecting the rights of those likely to be affected or marginalized by a development.4 The goal of the policies is to promote sustainable project outcomes by protecting the environment and people from the potential adverse impacts of projects. Alongside aiming to avoid and minimize adverse effects, they aim to help borrowers to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

44. The ADB sets out relevant policy criteria within its SPS and its internal procedural requirements involve the following processes: (i) screening and scoping of the main issues as soon as potential projects are identified. This continues throughout the project cycle; (ii) impact assessment, the preparation of safeguard plans summarising mitigation measures, monitoring programmes and proposed institutional arrangements, and arrangements are made to integrate the proposed safeguards into the project design and implementation; (iii) affected people are consulted during project preparation and implementation and information is disclosed in a form, manner and language accessible to them; and (iv) safeguard plans are disclosed to the general public and the information is updated at various stages in the project cycle.

45. A comparison between ADB policies and the laws and practices of land acquisition and resettlement used by the Republic of the Marshall Islands Government has been conducted and is included in the resettlement plans for the original project, along with a set of project policies and an entitlement matrix. As there will not be land acquisition nor physical or economic displacement due to the additional financing, these policies have not been included here. If there are unanticipated impacts during the implementation of the Additional Financing, KAJUR will prepare a Corrective Action Plan based on the project policies and national laws outlined in the resettlement plans for the original project.

IX. INSTITUTIONAL ARRANGEMENTS

4 Asian Development Bank (2009). Safeguards Policy Standards. Manila: Asian Development Bank 2009. 7

46. The Office of the Chief Secretary is the executing agency (EA) and KAJUR is the implementing agency (IA). A project steering committee (PSC) provides strategic direction and guidance for the project, and the PSC will continue throughout the implementation of the Additional Financing. The PSC meets at least once every quarter. A project management unit (PMU) has been established within KAJUR and is responsible for the overall implementation of the project and additional financing, including ensuring that all land lease issues are resolved by the Government of RMI. Consultants have been recruited by the Government of RMI to assist the PMU to implement the project and to build capacity within KAJUR.

47. The PMU ensures compliance with assurances, including safeguards, and prepares and submits semi-annual safeguards monitoring reports. As the upgrading works at the desalination plant and power station, as well as the installation of the household fixtures will continue to be implemented by the original contractor, the PMU has already approved the Contractors’ Construction Environmental Management Plan (CEMP), Stakeholder Communication Plan, and Occupational Health & Safety (H&S) Plan.

48. There are no land or resettlement related impacts anticipated, consequently, it is not predicted that such issues will need to be managed in the implementation of the additional financing. Should this requirement arise, the PMU will bring this to the attention of the IA and EA and develop a corrective action plan in compliance with the ADB’s SPS and National laws.

X. MONITORING AND REPORTING 49. KAJUR with assistance from the PMU will monitor the processes and consultations relating to the additional financing. The PMU will also monitor all unanticipated social safeguards impacts on an ongoing basis and report to ADB on these matters within semi-annual safeguard monitoring reports. KAJUR will continue to implement the project-level GRM and report on any grievances within semi-annual safeguard monitoring reports.

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XI. ANNEXES

Annex 1 Copy of Master Lease

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Annex 2 Consultation Summary

Introduction The Asian Development Bank (ADB) is presently working on a Project Readiness Financing (PRF) undertaking in Ebeye to assist the Kwajalein Atoll Local Government in preparing the Ebeye Solid Waste Management Project (ESWMP) and assist KAJUR with the Ebeye Water Supply and Sanitation Project (EWSSP) – Extra Financing. Outputs from the PRF are intended to ensure a smooth transition from preparation to design and implementation of the projects, and to minimize contracting delays and guarantee rapid projects start-up. A Project Preparation Facilitator was engaged on 06 May with an estimated completion date of 14 August 2020. This report covers project preparation activities for the months of May and June 2020.

In general, the role of the Project Preparation Facilitator is to facilitate surveys, discussions and agreement with key project stakeholders on Ebeye to ensure that the final project design has stakeholder “ownership” and sustainably addresses the needs of project beneficiaries including the Government of RMI, the Kwajalein Leadership, the Kwajalein Atoll Local Government (KALGOV), KAJUR and more importantly, the wider Ebeye community. However, it was recognized at the onset that the narrow window of opportunity to secure project financing and the inability of international project experts to travel to Ebeye were huge challenges facing this project engagement. It was therefore a huge relief for national consultants in Ebeye to receive support from two local experts from the ADB office in Majuro who traveled to Ebeye for two weeks during this period to provide technical support to national consultants in Ebeye.

Community Consultations Prior to engaging the community in survey and data collection activities, coordination meetings were held with KALGov and the Kwajalein senior Alap (Jesse Riketa) to schedule consultations with Iroijlaplap Mike Kabua, the mayor and local council, and the senior land owners (Alaps) of Kwajalein Atoll. The list below outlines consultations that were completed during this period: 1. Asst Secretaty Glorine Jeadrik (MoHHS) …… May 12, 2020 (Romeo) 2. Iroijlaplap Mike Kabua ……………………………… May 14, 2020 (Romeo, Yumi & Alap Jesse) 3. Kwajalein Atoll Local Council & Alap ………… May 25, 2020 (Romeo, Yumi & Scott) 4. Business Community ……………………………….. May 28, 2020 (Romeo & Yumi) 5. Refuse Collection Crew ……………………………. May 31, 2020 (Romeo & Yumi) 6. Mayor Hirata Kabua …………………………………. June 11, 2020 (Romeo, Yumi, Ellen, Denise, Scott) 7. GM Joe Pedro (KAJUR) ……………………………… June 11, 2020 (Romeo, Ellen & Denise) The primary focus of these initial consultations was to ensure that key government and traditional leaders are aware of the two projects being proposed for Ebeye. Additionally, in a

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small and closely-knit community such as Ebeye, it is culturally and politically appropriate, even necessary, that leaders are aware of these planned survey and community-wide consultations before these activities take place. Consequently, after project awareness and support was secured with the community leadership, national consultants and survey teams were able to seamlessly implement survey activities throughout the island community. Other planned consultations which have already been planned for the month of July after the ADB virtual mission include the following: 1. Kwajalein Education Association (KEA) ..….. Pending 2. Kwajalein Atoll Development Authority …… Pending 3. Gugeegue Community ……………………………. Pending 4. Ebwaj Community …………………………………… Pending 5. Looj Community ……………………………………… Pending 6. North Camp Community …………………………. Pending 7. Rest of Ebeye (Community Gym)……………… Pending The Project Preparation Facilitator had also proposed a Project Working Team with cross-representation from key organizations such as KALGov, KAJUR, PSS, MOHHS, Youth, Kwajalein NGO’s, and Kwajalein Alaps. The proposed Project Working Team’s listing is with KALGov awaiting membership confirmation. As conceptualized, this Project Working Team can later continue to serve as the Project Steering Committee during the project design and project implementation phases if KALgov and KAJUR accept this arrangement. Presentation Before the Local Council on the Ebeye Solid Waste Management Project (ESWMP) (1:00 PM, 25 May 2020)

The following is a brief synopsis of a presentation done by ESWMP National Consultant Team Romeo Alfred and Yumi Crisostomo before the Kwajalein Atoll Local Council on 25 May 2020 at the Local Government Conference Room in Ebeye, Marshall Islands. The Kwajalein Atoll City Manager, Scott Paul presented the request for this presentation to the Mayor. After receiving a positive response from Mayor Hirata Kabua, and with the understanding that there were other presenters at this council meeting including the Kwajalein Military Base Commander, The Minister of Health and Human Services, and the Kwajalein Atoll Development Authority, the ESWMP Team limited its presentation to only 15 minutes and reserved another five minutes to answer questions.

There were just three questions/comments raised by Iroijlaplap Iroij Mike Kabua, Councilman Telmong Kabua, and Alap Jesse Riketa. All three question/comments centered on sanitation services for communities along the causeway up to Gugeegue; primarily, whether sanitation services to these communities could somehow be included in the ESWMP. Iroij Mike Kabua’s comments were more pointed when he insisted that KADA and the Kwajalein Atoll Local Government seek budgetary allocations to provide for a larger sewage vacuum5 unit with greater capacity to service the needs of

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communities by the causeway as soon as practical. The full line-up of council members and alap (senior landowners) who were present at this meeting include the following:

8. Mayor Hirata Kabua 8. Council Member Conny Livai 9. Iroijlaplap Michael Kabua 9. City Manager Scott Paul 10. Council Member Telmong Kabua 10. City Clerk Capelle Antibas 11. Council Member Morson James Jr. 11. Alap Jesse Riketa 12. Council Member Tony Maika 12. Alap Nelson Bolkeim 13. Council Member Michael Luther 13. Alap Rep. Juren Jatios 14. Council Member George Luther 14. Alap Rep. Jerry Jacklick

Council members listen to Iroijlaplap Mike Kabua explain the needs of communities by the causeway

Consultation with Ebeye’s Business Community on the Ebeye Solid Waste Management Project (ESWMP) (12:00 noon, 25 May 2020)

The following is a summation of a consultation between project team members in Ebeye and representatives from major business operations in Ebeye. The project team generated a list of ten questions to help promote lively discussion among the group. The list of questions is provided in attachment (A). Two major business operators (H2 Imports and Lucky Star) were not represented at this meeting as managers from these two business establishments were not available during the period this consultation was conducted. Businesses that were represented at this consultation included Triple J, DIY, Ebeye Fish Market, Best Choice, Bing’s Store, MIR (Ebeye Hotel), Bank of Marshalls, and Ralik Store.

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General Description on the Existing Garbage Collection Service by the Business Community

Under the existing schedule, garbage in Ebeye is collected on Mondays, Wednesdays, Fridays, and Saturdays. On Tuesdays and Thursdays, garbage collection is done for communities along the causeway. Most businesses felt that the existing service is good, as long as equipment are functioning. Some businesses like Ebeye Hotel felt that their business generates waste much quicker than the frequency of collection service established under the existing collection schedule. Consequently, the hotel does its own garbage delivery daily and does not rely on the garbage collection service provided by KalGov. Similarly, Bank of Marshalls who also operates a retail and food establishment, does its own garbage delivery on a daily to basis. By their estimation, both Ebeye Hotel and Bank of Marshalls generate an average of three full bins daily. Other than Ebeye Hotel and Bank of Marshalls, all businesses rely 90% of the time on the garbage collection service provided by KALGov. The other 10% is for periods shortly after the arrival of the supply barge every two to three weeks when the stores generate more waste from new merchandise

Business operators present include from left: Bruce Bevin (Triple J), Tom Butler (Ralik), Jesse (Best Choice), Samantha Inok (Ebeye Hotel) Romeo Alfred (Consultant), Patrick Bing (Meko Store), Loen Pam (DIY), Lise Sheet (Fish Market), and Yumi Chrisistomo (Consultant). causing huge garbage pile-up in their collection areas. During these periods, business operators supplement the collection and disposal efforts using their own vehicles.

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Large businesses operations such as Triple J and DIY were issued the larger size garbage bins. However, based on information shared by these two retail/wholesale operators, they returned the bins that KALGov issued them and fabricate their own out of woods. Reason being that the bins issued to them were torn from improper use of forklift to lift the bin during garbage collection periods. The Ebeye Hospital ran into similar problem with its government issued garbage bin, and like Triple J, had to get rid of its plastic bin. The hospital now uses a fabricated wooden base garbage bin to contain its general wastes.

Overflowing garbage bins was also noted as a common occurrence among business operators. Some alluded this as another reason why they opted to build their own (larger) trash containers as oppose to using the large plastic container provided by KALGov which all feel inadequate for their needs.

A huge tear at bottom of large plastic bin issued to Triple J (left). The wooden garbage collection bin fabricated out wooden pallets (right) is what Triple J is using now.

RMI Legislation banning plastic bags and foam products

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All businesses who spoke on the existing legislations on plastics and foams products confirmed that these legislations are being enforced to some extent in Ebeye. Special consideration is given to produce (plastic) bags whereby plastic bags are allowed in the produce section area and used to carry fruits and vegetables. The Ebeye fish market is appreciative of the existing loose enforcement of the ban on plastic bags as it still uses plastic bags to sell its fish and ice. At present, all businesses understand and support the ban on plastic bags given the flexible nature of its enforcement. On the other hand, all businesses present find it unfair that the Container Disposal Legislation (CDL) tax on beer and soda has been enforced in Ebeye for a year now with no mechanism for recycling in place. As the imposed tax is passed down to consumers and no recycling program nor any recycling machines are available on island, the intended benefits to the community is simply not there. A grace period in implementing this CDL tax would have been a more fair and equitable approach for the Ebeye community.

Segregation of waste is NOT a common practice among business operators although Triple J does segregate its cooking oil. The main issue now is that they (Triple J) has no place to properly dispose of their used cooking oil. Open dumping is practiced by all the rest of the businesses when it comes to disposal of cooking oil. Oil from vehicles and equipment are being transported to the dumpsite for disposal.

On the subject of “Willingness to Pay”, the general feeling among business operators is that everyone should pay for that service. Based on their personal observation, all business felt that is much easier to collect payment for services from businesses than from individual members of the community. And that “everyone should pay a reasonable price” for the service. Unfortunately, some businesses observed that it is just as difficult to collect from the “needy” as it is from the “well off” members of the community.

Commenting on pests and rodents, most businesses do not associate the existing problems with flies and rats in Ebeye with businesses’ garbage management practices. It is obvious there is currently an infestation of flies. It used to be seasonal, but it’s been bad for over a year now. Yet, none of the businesses thinks it is linked to their garbage management practices.

Consultation with Refuse Collection Crew (KALGov)

The following information was taken from a consultation done between ESWMP national consultation project team and employees who are tasked with collecting solid waste throughout Ebeye and the communities along the causeway between Ebeye and Gugeegue. The crew consists of six employees. Only five employees are required to perform this daily operation, permitting normal operations to continue with one person out sick or on scheduled Paid Time Leave. Similar to the format used in the business community consultation, a set of eighteen basic questions were developed to generate discussions among the group. The set of questions are provided in attachment (B). This consultation was done on a Sunday, the only day that garbage collection is not performed.

Composition and Work Schedule

The six-man crew that makes up the Solid Waste Management team comprises of the following team members:

1. Hanner Nuka ………………………………………. Truck Driver & Team Leader 2. Romeak Leon ……………………………………… Truck Bin Operator

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3. Kanel Benjamin ………………………………….. Truck Bin Operator 4. Ioseph Rowa ………………………………………. Refuse Collector 5. Takaio Hanchor ………………………………….. Refuse Collector 6. Tony Amlej …………………………………………. Refuse Collector The crew’s work schedule starts at 8 AM and ends at 5PM Monday through Saturday. Overtime is allowed when the team falls behind schedule and needed additional time to complete their scheduled collection. Their pick-up schedule is broken down into two primary areas of Ebeye Proper and communities along the causeway. The image below shows the tip of Ebeye (farthest right) and the rest of the islands connected by the causeway.

In any given week, garbage is collected in Ebeye on Monday, Wednesday, Friday, and Saturday. Tuesday and Saturday are set aside for communities along the causeway. There are no specified pick-up points for the garbage truck. During scheduled days for pick-up, families just drag their wheeled garbage bins close to the roadside for easy pick up. Roughly 30 – 40% of bins in Ebeye and communities along the causeway have lost their wheels. In this case it requires two persons to carry these bins with no wheels over to the roadside for collection.

Tools and Equipment

When asked about the adequacy of tools and equipment which are readily available for the Refuse Collection Team to use, the consensus among team members is that one garbage truck is adequate to do the job. However, one truck does not allow much time for the team to properly perform clean up and proper daily maintenance on the garbage truck. By the time they are done collecting, they are tired already and often delay cleaning the garbage truck to the next day or the following day. It is not uncommon for truck cleaning tasks to be delayed for three days. It is almost impossible to do maintenance on the truck because it is constantly used Mondays to Saturdays. The crew is forced to request repairs on the garbage truck only when they run into mechanical issues. In the event of mechanical break-down, the Refuse Crew uses a Front Loader and a regular Dump Truck (pictured below) to resume their island-wide garbage collection efforts.

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On the topic of Personal Protective Equipment (PPE) the crew explained that they are providing for themselves. They do not have any protective coverall and had to provide for their own gloves, masks, and safety shoes. They understand that KALGov is under much financial stress and so they have to do with what they can provide on their own in order to protect themselves on the job. In addition to Personal Protective Equipment, the crew also expressed needs with pressure washer, raincoats, coverall, cleaning tools and of course higher pay. They pointed out that the lowest paid person is being paid $3.15/hr while the highest paid refuse collector gets $3.95/hr. With the going price of rice on Ebeye at around $10.00, a waste collector will have to work 2-3 hours just to earn a bag of rice.

Some Challenging Aspects in the Job of the Refuse Collection Team

Improper handling of food waste products and especially adult and baby diapers that are tainted with human feces appears to be the number one undesirable aspect of their job. Some families just place these items in the garbage bins as they are, without using plastic or paper bags even to properly secure these wastes. Occasionally, these types of wastes would splatter on them if they are not careful. It was also noted that a common practice among families in Ebeye is dumping food wastes in the lagoon or ocean. Children are normally instructed by their older siblings to dump food waste products in this manner. We observed one such incident and took the photos below. In the incident we observed below, kids have somehow discovered an empty cooler a few yards from the ocean shoreline and uses it to dump their food wastes to avoid having to go all the way down to the shorelines. Flies and maggots were clearly visible, an indication that the cooler has been sitting there for several days.

Two kids were observed dumping their family food waste in a cooler they discovered among a pile of concrete rubbles close to the ocean. Lagoon/ocean food waste dumping is common.

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Some families gather food wastes to feed pigs mostly in communities along the causeway as raising livestock is not permitted in Ebeye. One practice expressed by the team involves the common practice of just throwing their wastes on the ground expecting the refuse crew to gather and load their garbage manually onto the garbage truck. The crew believes that one reason behind this practice is that some families have either lost their garbage bins or their bins are no longer usable due to wear and tear. In either case, the local government is not able to replace old or lost receptacles because there are none available at the moment. The quantity of electric meters that were hooked up to various households throughout Ebeye and communities by the causeway was used to determine the quantity of bins to order. As such, 1,500 small bins and around 10 large size bins were distributed to businesses, schools, and government organizations. Commenting on the conditions of existing bins, the team observed that most are in pretty bad shape and needs to be replaced. If this is to be part of the plan moving forward, the team suggested that the ESWMP team may want to consider a slight modification on bin specifications to allow the next batch of garbage bins to last in Ebeye’s harsh and corrosive environment.

Pulling the 6-man refuse collection crew on their only day off to discuss garbage collection in Ebeye.

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Photo above provides some idea on how garbage bins are pulled from their usual locations immediately outside living quarters to roadside for collection during scheduled days for collection in Ebeye or communities by the causeway.

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Annex 3 Grievance Redress Mechanism

1. Introduction

This Grievance Redress Mechanism (GRM) serves to address complaints or concerns by persons that may be impacted by the Ebeye Water Supply and Sanitation Project (herein referred to as ‘the project’). A grievance is an issue, concern, problem or claim (perceived or actual) that an individual or group wants Kwajalein Atoll Joint Utilities Resources Inc.(KAJUR), the project management unit (PMU) or one of its contractors to address and resolve. The GRM outlines the procedures in which grievances concerning the performance or behaviour of KAJUR, PMU, its contractors or employees will be accepted, assessed and resolved. The GRM aims to reduce impacts and risks of the project and promote mutually constructive and trust-based relationships with the residents of Ebeye.

2. Background

The purpose of this GRM is uphold the project’s social and environmental safeguards performance. It must be noted, however, that existing grievance mechanisms already exist for residents of Ebeye, which should be integrated with processes relating to project-specific grievance claims.

Island Level The community on Ebeye is an established society with existing traditional and cultural grievance redress mechanisms. Community leaders play an active role in resolving everyday community or social disputes on the island.

These mechanisms involve the traditional landowners, which under Republic of the Marshall Islands (RMI) law includes the Iroij, Alaps and Senior Dri Jerbal. It is customary for land-related grievances and/or issues pertaining to structures on land, or relocation or resettlement of persons, to be resolved by traditional landowners. This may also extend to involve local legal systems (such as the Ebeye Police) and/or community level committees, such as as the Party of Five and church groups.

There may be issues caused by the project that are raised and resolved through these existing community level grievance redress mechanisms. In such cases, the PMU will coordinate with the relevant traditional leaders and authorities to provide assistance, as required, and will record the complaint/outcomes of any dispute. A grievance committee will be established by KAJUR General Manager, if required due to the nature and number of grievances. This grievance committee will be established with permission from the traditional landowners to aid in their ability to hear and resolve community level complaints about the project.

Nonetheless, residents will be encouraged to raise project grievances firstly through project representatives as detailed in this GRM. Project representatives are from Ebeye and are familiar with traditional island-level grievance processes. When the project representative feels the grievance needs to involve traditional landowners and/or local legal systems/committees, they will consult KAJUR General Manager first, before inviting traditional land-owners, local legal systems or committees to provide support in resolving grievances.

Judiciary level

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The project level process detailed below will not impede affected persons access to the RMI legal system. At any time, the complainant may take the matter to the appropriate legal or judicial authority as per the laws of RMI.

3. Objective

The objective of the project GRM is to establish guidelines for accepting, assessing, resolving, monitoring and evaluating grievances concerning the project.

4. Scope

This mechanism covers policies and procedures related to the management of grievances. It is intended for KAJUR/PMU/contractor employees who will process grievance claims, as well as persons wishing to file grievances.

5. Principles

The GRM has been developed in accordance with the KAJUR policies and procedures, as well as ADB Safeguards Policy Statement. The GRM is designed to work within existing legal and cultural frameworks, providing an opportunity to resolve grievances at the project level. Specifically, the project GRM has been designed to: • Be understandable, culturally appropriate and accessible to project-affected persons, with its availability communicated to residents of the island; • Address a wide range of grievances and concerns – both those based in factual data and those arising from perceptions or misperceptions; • Be transparent, and allow persons to submit a grievance at no cost and without retribution to the party that expressed the issue or concern; • Protect the identity of the persons raising the grievance; • Resolve concerns in a timely manner, via consultation with stakeholders, or forward any unresolved cases to the relevant authority; • Report back to the community (through the Project Steering Committee) periodically on the types of cases and how they were resolved; • Be revised if it is not working effectively.

6. Confidentiality

All KAJUR and PMU employees, contractor and subcontractor personnel involved in the resolution of grievances are required to keep confidential the nature of the claim, the claimants and the outcomes of the resolution process. KAJUR will periodically report back to stakeholders (through the Project Steering Committee) on the types of issues raised and how they were resolved, but this reporting will not feature the names of the aggrieved person/s or claimants, nor provide specific details of the issue/s.

Types of grievances In the context of the project, grievances could encompass:

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7. Procedures

Implementing the GRM involves five steps, which are described below in further detail and outlined in Figure 1. A project representative has been nominated to act as the grievance officer to receive, review and address project related concerns. This person is:

Ms Yumiko Crisostomo Deputy Team Leader KAJUR / Ebeye Water Supply and Sanitation Project (+692) 329-3799 or [email protected]

Yumi is from Ebeye and is a trusted member of the community. She is knowledgeable about the project, as well as local and legal forms of grievance redress mechanisms on Ebeye. She has met with traditional landowners to explain the project and will explain the project GRM at the next scheduled Steering Committee Meeting (May 2017). When Yumiko Crisostomo is not available, the grievance officer will be:

Mr Edward Bobo Project Manager KAJUR / Ebeye Water Supply and Sanitation Project (+692) 329-3799 or [email protected]

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Step 1: Receive grievance claims

Grievances, complaints and concerns are to be submitted to Ms. Yumiko Crisostomo or Mr. Edward Bobo. This can be via KAJUR’s contractor or the sub-contractors. Contractor’s and subcontractors will be informed of the GRM, as well as who to notify in PMU/KAJUR when a grievance claim has been made. In addition, grievances and concerns can be made: • In person at the KAJUR office • Verbally via telephone to (+692) 329-3799 • In writing by email to [email protected] and [email protected] • In writing by letter sent or delivered to

Ms Yumiko Crisostomo KAJUR / Ebeye Water Supply and Sanitation Project 5819 Mon kubok weto Ebeye, MH 96970 Marshall Islands

Ms Yumiko Crisostomo KAJUR / Ebeye Water Supply and Sanitation Project PO Box 5806 Ebeye, MH 96970 Marshall Islands

Step 2: Record and acknowledge grievance claims

Any person (other than the two grievance officers) receiving the grievance claim will notify Yumiko/Edward who will log it on the Grievance Claim Log Sheet (Appendix A) and assign a reference number or identifier, and complete a Grievance Claim Reporting Form (Appendix B). The grievance officer will provide the claimant with information about the process, their assigned reference number and the timeframe in which a response can be expected. The following details will be recorded when receiving grievance claims: 1. Date 2. Manner in which the grievance claim was received (phone, email, letter, in-person etc.) 3. Name of the person who received the grievance claim 4. Summary of the grievance claim 5. Name and contact details of the claimant/s

All incoming claims to the grievance officer will be acknowledged within three working days, by the quickest method available. If the claim is received by the grievance officer in person or verbally over the telephone, it will be acknowledged on the spot. If the claim is in writing, then an email, telephone call or text message will be returned acknowledging that the grievance claim has been received, with details of the process and timeframe in which a response can be expected.

Step 3: Screen and assess grievance claims

Received grievance claims are then screened, assessed and investigated (if required) by the grievance officer to verify validity. This includes establishing the nature of the grievance to determine the measures needed for review and investigation.

The grievance officer will either: 1. Assign personnel (including themselves) to complete actions to resolve the grievance OR 2. Elevate the claim directly to the KAJUR General Manager to resolve or facilitate the resolution of the grievance. The KAJUR General Manager will meet with the claimant and then assign personnel to complete actions or establish a grievance committee to aid in the resolution of the grievance. 3. If required, the KAJUR General Manager will convene a meeting with the EWSSP Grievance Committee to assist in resolving grievances. The EWSSP Grievance Committee will include one landowner, and representative of the EPA, representative of the Chief Secretary and representative of the Mayor of Kwajalein.

Grievances which do not apply to the project will be referred to the appropriate entity, and the claimant notified that this has occurred.

The Grievance Claim Reporting Form will be kept up-to-date regarding the status of the grievance claim and the actions required and completed.

Step 4: Decide on a response or resolution and monitor issues

The grievance officer (and the relevant GRM committee when needed) will decide on the response or resolution of the grievance claim and notify the claimant within 20 working days. The response may be in the form of a written letter/email or verbally through a meeting with the claimant/s or a telephone call. The Grievance Claim Reporting Form will be amended to reflect the closure of the grievance claim and future dates for monitoring. All documentation will be filed according to the reference number assigned and remain confidential.

Where an agreement on the resolution cannot be reached or if the claimant is not satisfied with the resolution, the grievance officer will provide the claimant with the details of RMI Office of the Chief Secretary (Executing Agency).

Step 5: Evaluate the GRM and report periodically

On a periodic basis, the grievance officer is to publish an evaluation report on the types of grievance claims and cases that were received and how they were resolved. The evaluation will include a report on the: • number and types of grievance claims received • number of claims that have been resolved/reached agreement • number of claims that have gone to mediation • number of claims unresolved

The report should also include an assessment of the effectiveness of the GRM and KAJUR/PMU in responding to the grievance claims. This report will be shared with the Project Steering Committee.

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Figure 1: Grievance mechanism framework

8. Communication of the GRM

It is the responsibility of the PMU to ensure the Ebeye community is informed of the GRM. The PMU has translated the GRM into Marshallese and will provide details/training about the GRM to new contractors and the Project Steering Committee (scheduled for month year). Information about the GRM will be publicized at the following locations or events: • At KAJUR office • At construction sites or at the contractor’s management office (if one is set up) • Notice boards on the island • At meetings held with stakeholders

A poster has been developed in Marshallese and English (Appendix B). The PMU will use these posters and develop additional materials (as needed) to explain the GRM process in Marshallese and English.

9. Resources

Financial resources to cover the operational costs of the GRM are part of the project budget. Costs for resolving grievance claims will come out of contingency funds set-aside for unanticipated social and environmental impacts during design and construction. Costs for grievances made during the operation phase will be shouldered by KAJUR.

Appendix A – EWSSP Grievance Claim Log Sheet

Appendix B – EWSSP Grievance Reporting Form

Appendix C – EWSSP Poster