Emergency Assistance Project

Report and Recommendation of the President to the Board of Directors

Project Number: 41105 June 2007

Proposed Asian Development Fund Grant Solomon Islands: Emergency Assistance Project

CURRENCY EQUIVALENT (as of 12 June 2007)

Currency Unit – Solomon Islands dollar/s (SI$) SI$1.00 = $0.1411 $1.00 = SI$7.0897

ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund AusAID – Australian Agency for International Development EA – executing agency EARP – environmental assessment and review procedures EC – European Commission EMMP – environmental management and monitoring plan GDP – gross domestic product ICB – international competitive bidding IEE – initial environmental examination LBES – labor-based equipment supported MID – Ministry of Infrastructure Development NCB – national competitive bidding NDC – National Disaster Council NDMO – National Disaster Management Office NDP – National Disaster Plan NERRDP – National Economic Recovery, Reform, and Development Plan NGO – nongovernment organization NTF – National Transport Fund NTP – National Transport Plan NZAID – New Zealand Agency for International Development OECD – Organisation for Economic Co-operation and Development PCERP – Post-Conflict Emergency Rehabilitation Project PMCBU – project management and capacity building unit RAP – recovery action plan SIEE – summary initial environmental examination SIRIP – Solomon Islands Road Improvement Project SOE statement of expenditures TA – technical assistance TAT – technical advisory team TTF – transport task force UNDAC – United Nations Disaster Assessment and Coordination Team UNDP – United Nations Development Programme UNOCHA – United Nations Office for the Coordination of Humanitarian Affairs

NOTES (i) The fiscal year of the Government and its agencies ends on 31 December. (ii) In this report, "$" refers to US dollars unless otherwise stated.

Vice President C. L. Greenwood Jr., Operations 2 Director General P. Erquiaga, Pacific Department (PARD) Director I. Bhushan, Pacific Operations Division, PARD

Team leader R. Guild, Senior Transport Specialist, PARD Team members R. Adhar, Senior Project Implementation Officer, PARD E. Brotoisworo, Senior Safeguards Specialist, PARD C. Png, Office of the General Counsel

CONTENTS Page GRANT AND PROJECT SUMMARY i MAP v

I. THE PROPOSAL 1 II. RATIONALE: ANALYSIS, PROBLEMS, AND OPPORTUNITIES 1 A. Disaster Overview 1 B. Damage Assessment 1 C. Economic Impact 2 D. Government’s Response 3 E. Development Partners’ Response 4 F. ADB’s Proposed Response 5 G. Lessons Learned in Disaster Management 6 H. Rationale for the Project 7

III. THE PROPOSED PROJECT 8 A. Impact and Outcome 8 B. Components and Outputs 8 C. Special Feature 9 D. Project Investment Plan 9 E. Financing Plan 9 F. Cofinancing 10 G. Implementation Arrangements 11

IV. TECHNICAL ASSISTANCE 14 V. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS 14 A. Economic Impacts 14 B. Poverty Reduction Impact 15 C. Social Impacts 15 D. Environmental Impacts 16 E. Project Risks and Mitigation 16

VI. ASSURANCES 18 VII. RECOMMENDATION 20 APPENDIXES 1. Design and Monitoring Framework 21 2. Cost Estimates and Financing Plan 23 3. Subproject Eligibility Criteria 24 4. Implementation Schedule 27 5. Master Procurement Plan 28 6. Outline Terms of Reference for the Project Management and Capacity Building Unit 30 7. Technical Assistance for Strengthening Disaster Recovery Planning and Coordination 33 8. Summary Poverty Reduction and Social Strategy 40 9. Summary Initial Environmental Examination 44 10. Guidelines for Project Performance Monitoring Indicators 63

11. Resettlement Framework 65 SUPPLEMENTARY APPENDIXES (available on request) A. Damage Assessment B. Government’s Initial Recovery Strategy C. Initial Environmental Examination—New Georgia South Road D. Sample Subproject Documentation—New Georgia South Road E. Social and Poverty Impact Analysis—New Georgia South Road F. Environmental Assessment and Review Procedures

GRANT AND PROJECT SUMMARY

Recipient Solomon Islands Classification Targeting classification: General intervention Sector: Multisector Subsectors: Transport and communications; water supply, sanitation, and waste management

Themes: Sustainable economic growth, inclusive social development, environmental

sustainability

Subthemes: Fostering physical infrastructure development, human development, global and regional transboundary environmental concerns and issues Environment Category B. An initial environmental examination (IEE) was Assessment undertaken. The summary IEE is in Appendix 9. Project Description The Project will rehabilitate essential infrastructure that was damaged by the earthquake and tsunami in Choiseul and Western provinces, including (i) about 35 kilometers (km) of rural and town roads, along with about 19 bridges and 35 culverts; (ii) about five wharves and jetties; and (iii) the Gizo town water supply and sanitation system. These estimates are subject to detailed damage assessments and cost estimates. The Project will be implemented via a sector approach. Rationale On 2 April 2007, a massive undersea earthquake triggered a tsunami that struck Western and Choiseul provinces. Islands in these two provinces suffered widespread damage to housing, infrastructure, schools, and medical facilities; and several villages were destroyed. An estimated 20,000 people of a total population of 90,000 have been affected, with about 5,000 people displaced and 52 dead. The Government’s damage and loss assessment, prepared with support from the Asian Development Bank (ADB), World Bank, and United Nations Development Programme (UNDP), is in Supplementary Appendix A.

The affected area generates a disproportionate share of Solomon Islands’ national output and almost all of its tourism. The effects of the disaster thus have national economic implications. Recovery and rehabilitation will depend on restoring access to affected areas and maintaining public health. However, the disaster has worsened the ability of major producers and rural people to export agricultural and fisheries products, access markets and social services, support tourism, and enjoy safe water supplies. Negative impacts on growth, poverty, and social indicators are expected. The disaster also revealed the need to reduce the vulnerability of infrastructure to climate change and future disasters. ii

Pro-poor economic growth, as well as improvements in social and health indicators, depends on recovery of the rural economy. Better transportation infrastructure and services are essential to removing barriers to market access, promoting rural production, strengthening public capacity to deliver services, promoting tourism, and reducing poverty. Improved infrastructure will also be less vulnerable to changing climatic conditions.

The Government has requested ADB to help facilitate the recovery process and prepare the Project for reconstruction and rehabilitation. ADB has also provided a disaster recovery adviser to assist the Government in managing the transition phase. The Government’s initial recovery strategy is in Supplementary Appendix B.

ADB’s country strategy and program update (2007–2009) for Solomon Islands identifies the development of transportation infrastructure and services as one of the two main areas for ADB assistance. Through other projects and technical assistance (TA), ADB is also addressing cross-sectoral infrastructure issues and technical capacity building. Existing and proposed projects will be prioritized and sequenced as appropriate to respond to the emergency, complement activities, and maximize benefits.

As a post-conflict and heavily indebted country, Solomon Islands is eligible for grant financing from the Asian Development Fund (ADF). An ADF grant will leverage cofinancing from the European Commission (EC).

Impact and Outcome The goal of the Project is to restore economic and social activities and accessibility in affected areas to pre-disaster levels. The purpose is to assist the Government in rehabilitating damaged infrastructure and make it less vulnerable to climate change and natural hazards. The rehabilitation of damaged infrastructure is expected to restore accessibility in rural areas, allow a resumption of economic activities and social services, and safeguard public health. Project Investment The investment cost of the Project is estimated at $9.75 million. Plan Financing Plan ($ million)

Source Total Percent Asian Development Bank 4.95 50.75 European Commission 4.00 41.03 Government of Solomon Islands 0.80 8.22

Total 9.75 100.00

iii

Grant Amount and ADB will provide a grant of $4.95 million from the ADF. The Terms Government of Solomon Islands will provide $0.80 million in counterpart contributions. The EC will provide grant cofinancing of $4.00 million equivalent, to be administered by ADB, for the road rehabilitation component. ADB and the Government will finance the remaining components and related costs Period of Utilization Until 30 June 2009 Estimated Project 31 December 2009 Completion Date Implementation The Project will be implemented over 2 years. The pre-rehabilitation Arrangements activities of detailed design, preparation of bidding documents, tendering, and awarding of contracts will start in August 2007. Civil works are expected to begin in December 2007, physical completion by 31 July 2009, and grant closing by 31 December 2009. Executing Agency Ministry of Infrastructure Development Procurement Procurement under the Project, including for ADB and Government- financed packages, will follow ADB’s Procurement Guidelines (2007, as amended from time to time), with the flexible interpretation permitted for emergency assistance in accordance with ADB’s Disaster and Emergency Assistance Policy (2004) to ensure maximum expediency in implementing the recovery program. Major civil works will be procured using international and national competitive bidding procedures. Minor civil works will be procured using national competitive bidding, shopping, and community procurement procedures. Consulting Services International and domestic consulting services will be required for (i) engineering design and preparation of bidding documents, (ii) construction supervision, and (iii) project management. The Project will fund 18 person-months of international consulting services and 54 person-months of national consulting services. Consulting services will be engaged through a firm using the single source selection method, in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). Project Benefits and The Project will restore the capacity of infrastructure in the affected Beneficiaries provinces, using appropriate methods and standards to reduce future vulnerability. This will support rural development, economic growth, and poverty reduction by facilitating access to markets and services, export of agricultural and fisheries products, and allow a resumption of tourism.

Subprojects will be assessed based on their contribution to national development objectives and priorities. Selection criteria will require subprojects to be economically viable, with an appropriate economic internal rate of return. The Project will be proactive in ensuring women’s involvement. Poverty and social analysis at the subproject level will be gender-disaggregated, taking into account (i) the differential project impacts and risks facing women, (ii) gender-specific measures to mitigate adverse impacts and manage risks, and (iii) the interests and capacities of women to participate in community contracts. Risks and The project design considers potential risks associated with project Assumptions management, rehabilitation quality, and financial management. The Project will be implemented through an existing ADB-supported project management and capacity building unit to continue strengthening the Government’s capacity. Environmental impacts will be monitored through construction supervision and mitigated at the rehabilitation stage. Technical ADB will provide TA for Strengthening Disaster Recovery Planning and Assistance Coordination to assist Government in (i) establishing coordination capability to administer the current and future recovery response operations; (ii) preparing and monitoring an integrated and environmentally sustainable recovery action plan, and (iii) providing specialist technical services for design and capacity building to reduce vulnerability to natural hazards. The total cost of the TA is $950,000. The TA will be financed on a grant basis by the ADB TA funding program, which will contribute $800,000. The Government will contribute $150,000. The TA will fund 14 person-months of international consulting services and 72 person-months of national consulting services. Consulting services will be engaged through a firm using the single source selection method, in accordance with ADB’s Guidelines on the Use of Consultants.

o 'S 'N 0 0 0 0 0

o 0 0 2 2 o Fataka 12 00'S Anuta I

O T I S

Tikopia

D K G N A O E

A O

L R C

C I I n

I a R 'W C 'W e

0 0

A 0 c 0 I o

0 0

O A A 7 7 o K o

G 1 1 O

N M O c A T S i 166 00'E 166 00'E f i

International Dateline c U IC S a E L L D I H P A B N IJ V

T U A F U F P

L T E O IS S h R D t N Vanikolo u A L ANCE PROJECT o Duff N IS S

S n L O a L D U Utupua A R e M H N U c S A U O A R T N O A A L Peou L

U M

N O S I A c F S V i O Reef f S SANTA CRUZ ISLANDS i E T IA c A S a T a E e S N P S D O

E R

l T Nendo Lata 'E 'E SOLOMON ISLANDS IC A 0 0 a h 0 M 0 R r t o o

E 0 o 0 r D A 5 5 C E E 1 1 o F A IN N U U P G A A P W I E L N A IA R S U T IC E A L N L S B O e A U EMERGENCY ASSIST U D in P P 'S 'N A p F IN E a 0 0 e O R 0 0 ip S

o il 0 0 o h 2 2 0 P o S O U T H P A C I F I C O C E A N S O U T H P A C I F I C O C E 6 00'S Sikaiana Ulawa Kira Kira MARAMASIKE Hauratarata Oteotea SAN CRISTOBAL MALAITA

s Liwe Malu'u ait

DAI tr e S nc de Auki en ep

d Aola In A) Tinggoa Sepi Tulaghi GUADALCANAL BELLONA Luaniua Avu Avu (Lord Howe Atoll) ONTONG JAVA Florida Roncador Reef Buala RENNELL (MUNGAV Savo HONIARA Russell SANTA ISABEL Ke Loma Susubona Yandina Kia VANGUNU its Vangunu a el S o l o m o n S e a tr S nn g ha in C nn e a NEW GEORGIA M ch an

Munda Bl 100 Noro Vaghena CHOISEUL PROVINCE 80 Kolombangara Rendova 60 Gizo N Taro 40 Project Area National Capital Provincial Capital Town International Boundary Kilometers Papara 20 Vella WESTERN Maravar PROVINCE o o 0 Ranongga 156 00'E 156 00'E Boundaries are not necessarily authoritative. Shortland o o 12 00'S 6 00'S

07-1553 HR

I. THE PROPOSAL

1. I submit for your approval the following report and recommendation on a proposed grant to Solomon Islands for the Emergency Assistance Project. The report also describes proposed technical assistance (TA) for Strengthening Disaster Recovery Planning and Coordination and if the Board approves the proposed grant, I, acting under the authority delegated to me by the Board, will approve the TA. The design and monitoring framework is in Appendix 1.

II. RATIONALE: ANALYSIS, PROBLEMS, AND OPPORTUNITIES

A. Disaster Overview

2. On 2 April 2007, a massive undersea earthquake triggered a tsunami that struck Western and Choiseul provinces. Islands1 in these two provinces suffered widespread damage to housing, infrastructure, schools, and medical facilities; and several villages were destroyed. An estimated 20,000 people of a total population of 90,000 in both provinces have been affected. About 5,000 people were displaced and 52 people died. 3. Islands in the affected provinces suffered damage to housing, infrastructure, schools, and medical facilities. The disaster has had a negative effect on tourism in the affected areas, and will impede growth of the industry by worsening access to tourism centers. It has also affected fisheries and agricultural production, and made export of local products more difficult. 4. The force of the earthquake was such that the physical environment of the islands and reefs have changed, leaving a small number of islands and reefs tilted and causing concern about the impact on coastal vulnerability, ground water access and levels, drainage systems (both natural streams and wetlands and constructed drains), agriculture, and livelihoods. 5. Emergency humanitarian relief by development partners and nongovernment organizations (NGOs) has provided temporary shelter and subsistence needs, while government and externally funded programs are working to rebuild education and health facilities and reinstate livelihoods. Recovery and rehabilitation will depend on restoring access to affected areas and maintaining public health. However, the disaster has worsened the ability of rural people to access markets and social services, and reduced access to safe water supplies. Negative impacts on growth, poverty, and social indicators are expected. 6. In recognition of the Asian Development Bank’s (ADB’s) long experience and implementation of ongoing projects and TA in Solomon Islands, the Government requested ADB to prepare the Project for reconstruction and rehabilitation and to assist with overall coordination. To help facilitate the recovery process, ADB immediately provided a disaster recovery adviser to assist the Government with initial coordination of the relief phase. ADB will also provide TA to strengthen coordination, prepare an integrated and environmentally sustainable recovery action plan, and implement the Project through technical design and supervision.

B. Damage Assessment

7. Solomon Islands is a large Melanesian island country, with a land area of about 28,000 square kilometers (km2), comprising six large islands, dozens of smaller islands, and hundreds of islets and atolls. More than 80% of the population of 475,000 is rural, living in

1 Including the islands of Choiseul, Gizo, Kolombangara, Mono, New Georgia, Ranongga, Rendova, Shortlands, Simbo, and Vella Lavella. 2 widely dispersed villages of a few hundred persons. The country, especially in rural areas, lacks adequate infrastructure and services. The disaster has worsened this situation. 8. The national road network is sparse, reaching only 23% of rural villages with about 20% of the national population, mostly on the islands of Guadalcanal and Malaita. Western and Choiseul provinces have relatively short coastal segments of gravel or earth roads near provincial centers. The damaged condition of the network in the affected areas has further reduced rural accessibility, thus restricting the contribution of road transport to economic growth, poverty reduction, and social development. 9. Damage to land transport infrastructure has been extensive. The tsunami has cut off villages from the main centers on the islands. In the worst affected areas, roads and coastal areas have been heavily scoured and covered with debris. Roadside drains and culverts are blocked or damaged because of seismic and tsunami action. Bridge abutments, which were not designed for seismic impacts, have been completely destroyed. A few bridges appear to be in satisfactory condition but will require investigation as the earthquake tremors may have destabilized their foundations. In total, about 70 kilometers (km) of roads, 48 bridges, 0.7 km of seawalls, and 0.7 km of protection works were severely damaged or destroyed. In addition, minor damages have been incurred to other roads, bridges, and retaining walls. Most of the damage has been on the islands of Gizo and Choiseul. 10. Because of the archipelagic nature of the country, the dispersion of population, a predominance of coastal settlements, and the sparse road network, the main form of transport in rural areas is often by small boat around coastal areas and by coastal ships between provinces. However, earthquake tremors have destabilized the substructure of many wharves and jetties, and the tsunami has mostly destroyed their superstructures, leaving them unusable. Some wharves are completely destroyed, while some are repairable. A total of 19 wharves, 14 jetties, and 52 causeways were damaged or destroyed in the areas affected by the earthquake and tsunami. In addition, the earthquake raised parts of some islands and lowered others, which has dramatically impaired physical access and rendered some wharves unusable. 11. In the main town of Gizo, the water supply is operational but damaged. Following the disaster, water flows have slowed and there is significant supply loss from the intake to reservoirs and storage tanks. The distribution main from the intake to the storage reservoir was broken in several locations. The water supply is contaminated and unsuitable for drinking. Given the growing population of Gizo, the intake, purification, distribution, and storage systems need upgrading to meet the growing demand. Sanitation facilities also require improvement. 12. An assessment team led by ADB, with participation from the Australian Agency for International Development (AusAID) and the New Zealand Agency for International Development (NZAID), conducted a rapid damage assessment of transport infrastructure and water supply and sanitation in the affected areas. Based on the damage assessments and a standardized methodology developed with the World Bank and the United Nations Development Programme (UNDP), the cost of damage to transport infrastructure and the water and sanitation sector is estimated at about $7.2 million. The estimated reconstruction cost of all damaged infrastructure is about $40 million. The complete assessment is in Supplementary Appendix A.

C. Economic Impact

13. Solomon Islands is a weakly performing country emerging from several years of conflict, and is one of the least developed of ADB’s Pacific developing member countries. The economy is based on primary commodities from agriculture, forestry, and fishing. Production of commodities is based primarily in rural areas. During the conflict, real gross domestic product (GDP) per capita declined by 35% to about $500. From 2003 to 2005, GDP growth averaged

4–5% per year, but the International Monetary Fund and Central Bank of Solomon Islands estimate that the growth rate will fall to about 3% for the next few years. The socioeconomic situation is characterized by high unemployment (with only about a quarter of the population formally employed) and rapid population growth of nearly 3% per year. In the United Nations’ Human Development Index, Solomon Islands ranks second lowest among Pacific island countries. It is unlikely to meet most of the Millennium Development Goals by 2015. 14. The affected area generates a disproportionate share of Solomon Islands’ national output through forestry, fisheries, and agriculture, and almost all of its tourism. These activities are highly dependent on transport infrastructure, particularly for exports. The effects of the disaster thus have national economic implications. 15. In addition to carrying export cargo and providing passenger services, roads and wharves provide connectivity to rural areas. As a result of the recent damage to transport infrastructure, many villages are without access to transport. Communities are not able to market their produce or access social services. These constraints will adversely affect rural economic development, poverty reduction, and social services within the two provinces. 16. The immediate economic impacts of the disaster relate to the (i) opportunity costs to both the public and private sectors to finance recovery that redirects funding from productive assets to rehabilitation; (ii) lost revenues while private and public services are not functional, with related employment and socioeconomic impacts; and (iii) loss of tourism, fisheries, and agricultural production. These losses will decrease productivity and economic growth as long as key facilities are not rehabilitated. Longer-term negative impacts on the national economy would become serious if production and exports remain restricted by transport problems.

D. Government’s Response

17. The Government quickly mobilized relief and rescue operations and took over the provincial administration in Gizo, which is the most populous center in the affected areas. The Government distributed emergency food relief while NGOs responded with provision of temporary shelter and nonfood relief supplies. 18. Solomon Islands’ overall disaster response is guided by a National Disaster Plan (NDP) authorized under legislation. The NDP facilitates the effective utilization of existing government structures, complemented by a system to mobilize the response of other stakeholders. The National Disaster Council (NDC) headed by the Ministry of Home Affairs has been activated as the oversight authority. The National Disaster Management Office (NDMO), under NDC, acts as secretariat and coordinates assistance. Disaster committees chaired by provincial secretaries implement the NDP at provincial level. However, in the case of Western Province, the disaster’s impact rendered the provincial government inoperative. With assistance from ADB and UNDP, a mechanism has been created to improve coordination between levels of government. The Government also convenes regular meetings of development partners and NGOs. 19. An initial damage assessment was undertaken by NDMO, and refined by line ministries. A technical advisory team (TAT) comprising all relevant ministries has been established and is led by the Ministry of Development Planning and Aid Coordination with assistance from UNDP and ADB to identify needs and issues arising from the disaster, and prepare a recovery action plan (RAP). Given the extent of damage and remoteness of affected areas, the emergency phase has extended beyond a month. As the transition to recovery gathers pace, NDMO and TAT are collaborating to ensure relief and recovery activities continue effectively. The Government’s initial recovery strategy is in Supplementary Appendix B.

20. The Government’s development vision, priorities, and strategies are articulated in the National Economic Recovery, Reform, and Development Plan (NERRDP).2 This identifies key strategic areas for revitalizing the productive sector and rebuilding infrastructure, and for restoring basic social services and fostering social development. The NERRDP recognizes the importance of transport infrastructure as an enabling input for community development. The National Transport Plan3 (NTP) provides the framework and action plan for developing and maintaining physical infrastructure, facilitating transport services, improving the capacity of government agencies, and enhancing private sector participation. An official transport task force (TTF) including representatives of the Government, transport users, and transport service providers advises the Government on key issues, development options, and priorities. 21. The RAP is the Government’s reconstruction and rehabilitation program for the medium and longer term. It includes the overall damage and loss assessments, prioritized actions and investments, a plan to monitor program implementation and report progress to NDC, and a plan for donor coordination. The RAP has been developed consistently with the NDP, NTP, and NERDDP. The RAP has been reviewed by ADB, endorsed by the TAT and NDC, and will be approved by the Government to officially guide the reconstruction and rehabilitation program. The RAP serves as the sector development plan to guide project implementation to ensure that activities are complementary and sequenced in accordance with recovery priorities.

E. Development Partners’ Response

22. Government, development partners, NGOs, and the private sector provided immediate assistance in response to the disaster. Estimates of emergency humanitarian relief—including food and nonfood items, water supply and sanitation, shelter, health, medical care, and logistics support—that were provided in the first month after the disaster are shown in Table 1.

Table 1: External Assistance for Emergency Relief ($ million)

Source Purpose Cash Goods/Services Government Humanitarian assistance contributions, 0.71 Not assessed relief aid, transport etc. Bilateral partners Humanitarian assistance contributions, 3.21 0.86 relief aid, transport etc. Multilateral agencies Humanitarian aid, response and 0.01 0.34 assessment support, emergency and family kits Nongovernment organizations Disaster kits, emergency supplies, 0.4 0.6 medical teams, family kits, water tanks and filtration/purification systems, outboard motors and relief and assessment staff. Business, community, and Money and goods for relief efforts 0.17 0.23 private donations

Total 4.50 2.03 Source: Asian Development Bank estimates.

2 Government of Solomon Islands. 2003. National Economic Recovery, Reform, and Development Plan 2003–2006. Honiara. (A successor to this plan is being prepared.) 3 Prepared under ADB technical assistance (TA) 4494-SOL, approved in December 2004 for $700,000: ADB. 2004. Institutional Strengthening in the Ministry of Infrastructure and Development. Manila.

23. The United Nations Disaster Assessment and Coordination Team (UNDAC) mobilized three days after the disaster to assist NDC in coordinating the response to the emergency, followed by a joint UNDAC/NDC team which arrived two days later with a team in Gizo to support the Provincial Disaster Council and coordinate the relief effort. NDMO has also been supported by the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA). Early in the emergency phase, cluster working groups on shelter, health, water and sanitation, non-food item distribution, and child protection were facilitated by UNDAC. 24. UNDP is continuing to assist the Government, through the NDC-NDMO-TAT structure, in the recovery phase to (i) augment on-going emergency assistance operations through measures that foster the self-reliance of the affected population and help rebuild livelihoods, (ii) promote spontaneous recovery initiatives by the affected population and mitigate the rebuilding of risk, and (iii) establish the foundations for longer-term recovery. 25. Several development partners are planning to provide assistance in the affected areas. Although details of sites and activities are not yet available, civil works could be included. The Project will coordinate civil works with all partners to complement activities and avoid duplication. ADB will also provide TA for coordination, to assist government and development partners in finalizing assistance through a process of consultation and joint review.

F. ADB’s Proposed Response

26. To provide immediate disaster response, ADB dispatched staff to support infrastructure assessments, communications, programming, and donor coordination. Staff visited the affected areas, supported the Ministry of Infrastructure Development (MID) in carrying out initial infrastructure damage and needs assessment, and provided strategic advice to the Ministry of Development Planning and Aid Coordination in defining and establishing the process toward recovery and rehabilitation. The team engaged with the Government to determine the role ADB could play in the recovery and rehabilitation phases. 27. The Government has requested ADB, on the basis of a Cabinet decision, to coordinate the overall reconstruction and rehabilitation process. Staff specialized in disaster risk management have been fielded to assist Government in the management of the transition phase and planning toward recovery. In addition, ADB has agreed to assist the Government in the reconstruction and rehabilitation of infrastructure damage. This effort will be closely aligned with ongoing ADB-supported infrastructure projects in Solomon Islands. 28. To support recovery and rehabilitation of the affected areas, a three-part approach is proposed. First, ADB will continue to provide technical support to assist in the coordination and drafting of a comprehensive damage assessment and rehabilitation plan. Second, ADB will prioritize and sequence activities within existing projects to respond to urgent needs. Third, the proposed Project has been processed and will be implemented under ADB’s Disaster and Emergency Assistance Policy (2004) to restore essential infrastructure as efficiently as possible. 29. ADB is implementing the Post-Conflict Emergency Rehabilitation Project,4 which is nearly complete, and the Solomon Islands Road Improvement Project5 (SIRIP), which is just beginning. Both are implemented through project management units under the direction of MID

4 ADB. 2000. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to Solomon Islands for the Post-Conflict Emergency Rehabilitation Project. Manila. (Loan No. 1823, approved in December 2000 for $10 million equivalent, increased in February 2006 to $18.5 million equivalent). 5 ADB. 2006. Report and Recommendation of the President to the Board of Directors on a Proposed Grant to Solomon Islands for the Road Improvement (Sector) Project. Manila. (Grant Nos. 0048/40/50, approved in July 2006 for $16.85 million equivalent).

6 and the respective project steering committees. To avoid duplication the Project will be implemented through the SIRIP project management and capacity building unit (PMCBU). 30. Infrastructure investments are needed to support economic growth, employment, poverty reduction, and social development. ADB’s current country strategy and program update for Solomon Islands6 prioritizes two major areas for ADB assistance: transportation infrastructure and services, and an enabling business environment. It also identifies institutional capacity development as central to all activities. These three themes are complementary.

G. Lessons Learned in Disaster Management

31. Unlike most other countries that have recently experienced natural disasters, the rebuilding situation in Solomon Islands is far more sensitive given the post-conflict environment. There are four major challenges and lessons, drawn from other recent natural disasters in the Asia Pacific region, and implementation of previous ADB emergency projects in Solomon Islands, which have guided the design of ADB support. 32. First, extensive but diverse forms of support, especially from NGOs, mean that coordination is vital. The Government needs to outline principles and practices to guide the support from the private sector, NGOs and public-private partnerships, and it ought to effectively coordinate among different donors. ADB will support these activities but given the likely lead time involved in finalizing a medium-term programmatic framework and the complexities in channeling fund flows effectively to finance its components, a hybrid approach of supporting project and sector-based modalities will be adopted. Integrated and multisectoral programming is needed to significantly facilitate planning and implementation. Needs assessment should be done jointly by development partners active in the country, with responsibility for implementation divided by sector. Coordination groups should be kept manageable with a regular forum where partners can interact with Government on policy issues and project design. ADB and other development partners have agreed to work through the TAT for these purposes. 33. Second, dealing with a natural disaster in a post-conflict environment calls for a well- rounded approach to rebuilding with participatory mechanisms and equitable distribution of resources across affected areas in a transparent and accountable manner. Allocation of resources to different areas needs to be in line with assessed damages and losses. A conflict- sensitive approach is more likely to improve prospects of genuine improvement through rehabilitation and reconstruction. Phasing of response/recovery should follow where possible the expressed needs of the affected population. Careful poverty targeting and sensitive project design can lead to major poverty reduction impacts even under difficult circumstances. 34. Third, the rebuilding process will take place in an environment with depleted public administration systems, yet one that is decentralized down to the district level. Even in normal circumstances, local government capacity has generally been weak. Now, the disaster has further weakened the capacity in the affected provinces. It is vital that the provinces are respected and credibility and trust are built up among the affected local officials and the citizens. Weak local capacity requires support of the national Government in the first phase to facilitate and develop local capacities for implementation programs, including through NGOs, while not undermining the responsibilities of provincial and local governments. ADB will continue to work with UNDP to support capacity of local governments that are being revived and establish working groups parallel to the ones at the central level.

6 ADB. 2005. Country Strategy and Program Update (2006–2007): Solomon Islands. Manila.

35. Fourth, geological changes in many areas may have caused shifts in the demographic and social composition of communities. In the mainly coastal communities, the rebuilding process will not be initiated until spatial plans are finalized. The Government has proposed rezoning of some coastal areas and resettlement of coastal communities. In the most affected coastal zones, rebuilding infrastructure and public facilities will be based on the environmental assessment process and consultations with the affected communities. If families have to move from their customary land, resolution of land allocation may prove to be one of the most complex and time-consuming issues. A serious challenge is to develop participatory mechanisms to truly enable the people to determine issues such as those related to spatial location. A consistent policy framework needs to be adopted on land titling and spatial planning that takes into account the likelihood of sea level rise and future natural disasters. Consultation and participatory processes will be addressed under TA as described in Appendix 7.

H. Rationale for the Project

36. Pro-poor economic growth and improvement in social and health indicators depend on the revitalization and decentralization of the rural economy, made more urgent by the disaster. The damaged condition of the transport network is a constraint to the movement of people and goods, a disincentive to productive rural activity, and an impediment to the recovery and growth of tourism. Improved transportation infrastructure and services, which would restore access to domestic and international markets for agricultural and fisheries products, are critical to restarting and rebuilding rural economies in the affected areas. The focus on restoring rural accessibility will therefore enhance poverty reduction. 37. Prior to the disaster, deteriorating rural infrastructure and lack of access to rural services and markets hampered rural production and constrained the development of tourism. Damage to the transport network has exacerbated the situation. Economic restoration and employment growth, therefore, is severely constrained. A rehabilitated and sustainable rural transport network can enhance rural economic development significantly by restoring access, which will raise rural incomes and stimulate production and employment. 38. The disaster is also evidence of the Solomon Islands’ increased vulnerability to changes in climatic conditions. Climate change is expected to increase extreme weather events, and to cause sea level to rise. Roads, bridges, and wharves require improved environmental protection and higher construction standards to withstand potential future natural events. The Project will be designed to withstand a projected increased likelihood of such effects within the expected life of rehabilitated infrastructure. While design criteria for climate change adaptation are not available for the Solomon Islands the methodology to incorporate climate proofing within design is detailed in an ADB publication.7 39. Communities have a clear interest in a good transport network, which creates an opportunity to involve them actively in rehabilitation and maintenance. Contracting maintenance through community participation and labor-based methods will generate income for the rural population. Consultations allow them to determine how they will contribute, and on what terms (e.g., by contributing labor or local materials). A participatory approach to rehabilitation and maintenance allows the capacities and contributions of communities, including the large numbers of unemployed, to be utilized proactively. A gender-aware approach to community liaison and consultations can ensure that the perspectives and capabilities of women are taken into account, and that an appropriate participation strategy is devised.

7 ADB. 2005. Climate Proofing: A Risk Based Approach to Adaptation. Pacific Studies Series. Manila.

40. The Project and TA have incorporated the lessons described above by emphasizing improved designs to reduce vulnerability, enhancing coordination, and providing for community participation. The Project will preserve the gains being made under ADB’s strategy for Solomon Islands by (i) restoring transportation infrastructure, (ii) facilitating expanded transportation services, and (iii) providing opportunities for direct private sector and community participation. Further, TA attached to the Project will guide external assistance through better aid coordination and consistent development planning.

III. THE PROPOSED PROJECT

A. Impact and Outcome

41. The goal of the Project is to restore economic and social activities and accessibility in affected areas to pre-disaster levels. The purpose is to assist the Government in rehabilitating damaged infrastructure and make it less vulnerable to climate change and natural hazards. The rehabilitation of damaged infrastructure is expected to restore accessibility in rural areas, allow a resumption of economic activities and social services, and safeguard public health. The Design and Monitoring Framework for the Project is in Appendix 1. B. Components and Outputs

42. The Project will be implemented via a sector approach. Each subproject will be prioritized and selected in accordance with the process and eligibility criteria in Appendix 3. A systematic and consultative approach will be established for subproject appraisal, covering (i) social, economic, and environmental evaluation; (ii) design; (iii) procurement; (iv) implementation; and (v) monitoring. Each subproject feasibility study will provide sufficient evidence of its eligibility under the agreed criteria, and will be in accordance with the detail and quality required to enable ADB to assess the viability and suitability of the subproject. Implementation will incorporate HIV/AIDS awareness and prevention and general health and safety activities, as appropriate. 43. Component A: Road Rehabilitation. The Project will finance rehabilitation of damaged land transport infrastructure. This will include repair of about 35 km of unsealed roads and about 35 watercourse crossings (culverts and wet crossings), and replacement of about 19 bridges. The proposed bridge structures will be designed and constructed in accordance with seismic standards to withstand earthquakes of similar or larger magnitude. Designs will incorporate lateral movement of the structure compatible with earthquake and tsunami forces. Similarly, protection works and sea walls will be also be designed and constructed to withstand tsunami or cyclone-generated forces. 44. Component B: Wharf and Jetty Rehabilitation. The Project will finance rehabilitation of damaged water transport infrastructure. This will include reconstruction of about five wharves and jetties. The proposed wharves and jetties will be designed and constructed in accordance with seismic standards to withstand against an earthquake of similar or larger magnitude. Designs will incorporate lateral movement of the structure compatible with earthquake and tsunami forces. Wharves and jetties will be constructed and protected to withstand against tsunami or cyclone-generated forces. 45. Component C: Gizo Water Supply and Sanitation Rehabilitation. The Project will finance rehabilitation of the Gizo town water supply and sanitation system. This will include (i) repairs to the distribution main and restoring flows to pre-disaster level; (ii) cleaning, repairs and improvements to intake and reservoirs; (iii) upgrade existing water supply systems with more reliable source development; (iv) shipment and installation of storage tanks; (v) procurement of

9 electrical components and cables of the submersible pump; (vi) installation of a purification system for safe drinking water; and (vii) repairs to the sanitation system. 46. Component D: Maintenance via Community Participation. During implementation the Project will finance minor routine maintenance on rehabilitated infrastructure through community participation and labor-based methods. Small specialized maintenance equipment will be procured for future sustainability of labor-based methods and ongoing road maintenance contracts by the community.

C. Special Feature

47. ADB, AusAID, NZAID, and the European Commission prepared the Project through a joint mission to draw on their existing partnerships in the Solomon Islands transport sector. This collaboration has ensured incorporation of the experience, perspectives, and lessons learned by the Government and its development partners.

D. Project Investment Plan

48. The Project is estimated to require an investment of $9.75 million. A detailed cost estimate is in Appendix 2. The costs of the components are summarized in Table 2. Table 2: Project Investment Plan ($ million) Item Total Cost A. Base Cost 1. Civil Works a. Road rehabilitation 4.00 b. Wharf and jetty rehabilitation 2.15 c. Gizo water supply and sanitation rehabilitation 1.01 d. Maintenance 0.25 Subtotal (A1) 7.41 2. Equipment, Vehicles, and Furniture 0.25 Subtotal (A2) 0.25 3. Consulting Services a. Design and supervision 0.34 b. Project management 0.34 Subtotal (A3) 0.68 Subtotal (A) 8.34 B. Contingencies 1. Physical Contingencies 0.71 2. Price Contingencies 0.70 Subtotal (B) 1.41 Total 9.75 Source: Asian Development Bank estimates.

E. Financing Plan

49. The Government has requested a grant of $4.95 million from ADB’s Asian Development Fund to help finance the Project. The Government of Solomon Islands will provide $0.80 million in counterpart contributions. The EC will provide grant cofinancing of $4 million equivalent, to be administered by ADB, for the road rehabilitation component. ADB and the Government will

10 finance the remaining components and related costs. The detailed financing plan is in Appendix 2, and is summarized in Table 3.

Table 3: Financing Plan

($ million) Source Total Cost Percent Asian Development Bank 4.95 50.75 European Commission 4.00 41.03 Government of Solomon Islands 0.80 8.22 Total 9.75 100.00 Source: Asian Development Bank estimates.

F. Cofinancing

50. An underlying objective of ADB's Disaster and Emergency Assistance Policy is to coordinate with development partners, minimize duplication, encourage cofinancing, and catalyze the provision of additional resources. It is likely that a number of these partners may be willing to complement ADB’s funds for this Project through cofinancing. ADB has typically sought approval from its Board of Directors for the administration of loan or grant funds from cofinanciers only when cofinancing commitments are in place. In light of the need for expediency and efficiency in ADB's response to the disaster, Management requests Board approval of the administration of any cofinanced funds obtained from development partners subsequent to the date of Board approval. Approval of such cofinanced funds will be confirmed and approved by Management, and reported to the Board in accordance with standard procedures. This procedure will be adopted only to the extent that the additional funds provided by cofinanciers will not materially alter or fundamentally affect the objectives, purposes, and scope of the Project. Any proposed cofinancing that will materially affect the objectives, purpose, or scope of the Project would be processed as a major change of scope and circulated to the Board in accordance with the usual procedures under ADB's Project Administration Instructions, section 5.04. 51. As described above, the EC has committed to provide joint cofinancing in the amount of $4 million equivalent, allowing ADB to catalyze additional resources for the Project. For the EC to participate, it requires nondiscrimination in procurement processes against legal persons, firms, and goods established in EC-recognized official candidate countries, member states of the European Economic Area, and developing countries as specified in the Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee rules.8 Management requests Board approval to allow procurement in, and procurement of eligible goods and services from, the above mentioned entities. 52. The request for Board approval is being made pursuant to Article 14(ix) of the ADB Charter, which states that the Board may, by vote of the Directors representing not less than two thirds of the total voting power of the members, approve procurement from ADB nonmember countries in appropriate circumstances.9 The EC cofinancing of $4 million

8 Regulation (EC) No. 2110/2005 of the European Council and Parliament, 14 December 2005. 9 The Charter provides one, nonexclusive example of what may constitute "appropriate circumstances" for allowing procurement in non-ADB member countries or procurement of goods and services produced in ADB nonmember countries. It states that the Charter's requirement that procurement occur only in member countries may be lifted "in the case of a nonmember country in which a significant amount of financing has been provided to the Bank". This example is similar to the current proposal.

11 equivalent will finance the road rehabilitation component. The Board’s approval for lifting the procurement restriction is requested only in support of this component of the Project. G. Implementation Arrangements

1. Project Management

53. The Executing Agency (EA) for the Project will be MID. The Government’s TTF10 will serve as the project steering committee, overseeing and monitoring all aspects of project implementation, including (i) policy guidance and coordination, (ii) subproject feasibility study and selection, (iii) project progress reports and other project documentation, and (iv) audited accounts and financial statements. 54. The existing PMCBU for SIRIP, directed by the permanent secretary of MID, will be responsible for implementation. The PMCBU will (i) conduct subproject feasibility assessments, design, and supervision; (ii) manage tendering processes; (iii) manage contracts; (iv) prepare withdrawal applications; (v) prepare project progress reports and a project completion report; (vi) maintain project accounts for auditing; (vii) monitor the Project’s socioeconomic and environmental impacts; and (viii) complete related project management activities, as necessary to implement the Project successfully and comply with ADB policies and guidelines. 55. Although the PMCBU is fully integrated with MID professional and technical staff as counterparts, the volume and schedule of existing activities under SIRIP and MID’s limited technical staff resources mean that the PMCBU needs to be supplemented with additional technical support for these services as described below and in Appendix 7.

2. Implementation Schedule

56. The Project will be implemented over 2 years. Recruitment of the PMCBU consultants, initiated under advance procurement, will be completed by July 2007. Other preparatory activities for initial works will be completed by December 2007, including feasibility studies, detailed design, tender documentation, award of contract, and mobilization. Rehabilitation activities will be physically completed by 30 June 2009. The grant is scheduled to close by 31 December 2009. The implementation schedule is in Appendix 4.

3. Procurement

57. Procurement under the Project, including packages financed by ADB and the Government, will follow ADB’s Procurement Guidelines (2007, as amended from time to time). Civil works will be divided into packages to be procured using international competitive bidding (ICB), national competitive bidding (NCB), shopping, or community procurement procedures as appropriate. A number of packages for maintenance contracts, to be determined during implementation, will also be procured using NCB, shopping, or community procurement procedures. Before the commencement of any procurement activity under NCB, ADB and the Government will review the Government’s procurement procedures to ensure consistency with ADB’s Procurement Guidelines. Any necessary modifications or clarifications to the Government's procedures will be documented in the procurement plan. Technical and financial qualifications of contractors will be reviewed in conjunction with the review of the bid proposals.

10 The TTF is chaired by the permanent secretary of the Department of Planning and includes the permanent secretaries of the departments of infrastructure and development, provincial development, and finance and treasury as members. The MID Transport Policy and Planning Unit acts as the TTF secretariat. AusAID and NZAID are also members by invitation of the Government in recognition of their key role.

Contractors might be awarded more than one contract package based on the least-cost combination of contracts. Evaluation of ICB contracts will include a margin of preference for domestic contractors as specified in ADB’s Procurement Guidelines. The procurement plan is in Appendix 5.

4. Advance Procurement Action 58. Given the urgency of the recovery activities, ADB approved advance action for the procurement of goods and services, and recruitment of consultants by direct selection. The Government has been advised that approval of such advance action does not commit ADB to finance any part of the recovery program.

5. Consulting Services

59. Consulting services will be required to supplement the PMCBU, which will handle (i) engineering design and preparation of bidding documents, (ii) construction supervision, and (iii) project management. The Project will fund approximately 18 person-months of international consulting services and 54 person-months of national consulting services, provided by a firm. Consultants will be supervised by the current PMCBU project manager. The outline terms of reference are in Appendix 6. 60. Consultants will be recruited in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). At the request of the Government, ADB will recruit the PMCBU consultants. Given the emergency nature of the Project, the critical requirement to ensure continuation and integrate activities with ongoing projects, and the satisfactory performance of the existing firm, engagement of consultants through a firm using ADB’s single source selection method is justified.

6. Disbursement Arrangements

61. The grant will be disbursed in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time). The disbursement procedures will include direct payments and reimbursements. The PMCBU will open and maintain dedicated imprest accounts for each funding source in a domestic bank. The maximum amount in each account will be 10% of the eligible funding from each source, or the equivalent of 6 months of expenditures from each source, whichever is lower. The initial amount deposited in each imprest account will not exceed $250,000 equivalent. Withdrawals from the grant accounts will be made on the basis of 100% of eligible expenditures for each claim received, up to the total amount to be financed by the grant. The statement of expenditures (SOE) procedure may be used for reimbursement of eligible expenditures and liquidation of imprest account expenses, and is applicable to individual payments not exceeding the equivalent of $50,000, upon review and approval by ADB. Payments in excess of the SOE ceiling will be reimbursed based on the normal process with full supporting documentation. Direct payments will be encouraged for most civil works and consulting services.

7. Accounting, Auditing, and Reporting

62. Reports. MID will submit to ADB quarterly progress reports on preconstruction activities and construction of civil works, including (i) physical and financial progress, (ii) status of land acquisition and resettlement (if required),11 (iii) environmental management, (iv) public

11 Since all work will involve rehabilitation of existing facilities within existing rights-of-way, neither land acquisition nor resettlement is expected to be necessary.

13 communication campaigns, and (v) other activities critical to project implementation. To facilitate performance monitoring and post-project review, the Government has agreed to provide ADB, within 3 months of physical completion of the Project, a completion report that will cover implementation details, costs and benefits, and any other information that ADB might require. 63. Accounts and Audits. MID will maintain separate records and accounts that will identify the goods and services financed from the grant, the expenditures incurred for the Project, and the use of counterpart funds. The project accounts will be established and maintained in accordance with sound accounting principles and practices that will follow internationally accepted accounting standards. External auditors acceptable to ADB may be used to audit the accounts and annual financial statements annually. The audit reports will include an auditor’s opinion on the use of the grant proceeds, compliance with the financial covenants included in the grant and project agreements, the use of the SOE procedure, and use of imprest accounts. The Government will provide ADB with the annual audited financial statements, audited project accounts, audit reports, management letters, and other related statements no later than 6 months after the end of each fiscal year throughout the implementation period.

8. Project Performance Monitoring and Evaluation

64. MID will establish a project performance and monitoring system within 3 months of grant effectiveness. ADB and the Government, in consultation with the Project’s development partners, will agree on a set of indicators for monitoring and evaluating project performance in achieving its goals and purposes. These indicators will be refined and monitored during project implementation. The indicators will include data for monitoring economic development, social development, environmental impacts, and maintenance. Monitoring and evaluation will be based on gender-disaggregated data for social and poverty impact indicators. MID will monitor and evaluate the Project’s progress annually, and provide a final report within 6 months of the end of the contract period. Guidelines for baseline values for subprojects, data collection and analysis, and periods for future monitoring are in Appendix 10.

9. Project Review

65. ADB, together with the EC and the Government, will undertake regular review missions approximately every 6 months. Reviews will evaluate the scope, implementation arrangements, and other relevant aspects of the Project (including administrative, organizational, technical, environmental, social, poverty reduction, resettlement, economic, and financial aspects) that might affect project performance, viability, and achievement of scheduled targets.

10. Anticorruption

66. ADB’s Anticorruption Policy (1998, as amended to date) was explained and discussed with the Government and the EA. Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive, or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included in the grant regulations and the bidding documents for the Project. In particular, ADB-financed contracts for the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

IV. TECHNICAL ASSISTANCE

67. The disaster has revealed a need to improve the Government’s capacity to manage emergency response, improve infrastructure analysis and planning, and develop an effective framework for mitigating vulnerability to climate change. TA can strengthen disaster management, infrastructure planning, and mitigation capacity to ensure that (i) future infrastructure designs incorporate adaptation, and (ii) mitigation strategies and are less vulnerable to climate change and potential future disasters. 68. The TA will (i) strengthen disaster and emergency management; (ii) analyze, plan, and monitor infrastructure rehabilitation in the affected areas; and (iii) design and build capacity for preparation of environmentally sustainable infrastructure subprojects that reduce vulnerability to climate change and natural hazards in the recommendations for future development. The TA will also help the Government establish an effective response capability by coordinating across relevant ministries to administer current and future recovery response operations. To improve planning, the TA will help the Government adopt a systematic approach to mitigating the country’s vulnerability to adverse weather conditions through design of environmentally sustainable infrastructure. Although some TA activities are related to project implementation, a flexible approach to the use of TA is justified to leverage ADF resources and build capacity for implementation of an emergency response in a weakly performing country. 69. ADB will provide TA for Strengthening Capacity Building for Disaster Recovery Planning and Coordination. The total cost of the TA is $950,000. The TA will be financed on a grant basis by the ADB TA funding program, which will contribute $800,000. The Government will contribute $150,000 equivalent in counterpart contributions through the provision of counterpart staff, office space and administrative support, and logistics and local transport. ADB will engage consulting services for the TA as specified in Appendix 7 in accordance with ADB’s Guidelines on the Use of Consultants for the selection and engagement of international and national consultants.

V. PROJECT BENEFITS, IMPACTS, ASSUMPTIONS, AND RISKS

70. The Project will directly benefit the rural population in affected areas, many of whom are poor or extremely poor, by restoring access to economic opportunities and social services and safeguarding public health. Government agencies and private sector companies that use the transport network to deliver products and services will benefit similarly. The estimated benefits to these groups, as well as other impacts, assumptions, and risks, are based on overall project analysis and on the sample subproject documented in Supplementary Appendix D.

A. Economic Impacts

71. Rehabilitation of roads and bridges, wharves, and water supplies is essential to restoration of economic activities—including agricultural exports from the affected areas and access for tourism—and will thus improve the prospects for economic growth and poverty reduction. In the affected areas, efficient and effective transport infrastructure is essential for access to economic opportunities and social services by rural people who are disproportionately poor and disadvantaged. Damage to the transport network is restricting the delivery of food, fuel, and building materials necessary for recovery. The rehabilitation program will mitigate the potentially extended negative impacts of the disaster and enable the country to recover with only a temporary setback. 72. Project activities will be technically sound, cost-effective, and represent a least-cost alternative with appropriate adjustment for climate-resistant design. Economic evaluations of subprojects will be carried out using methods appropriate to the context, including economic

15 internal rates of return and sensitivity analyses. The evaluations will be required to demonstrate that subprojects are economically justifiable and will be used to prioritize individual subprojects. The economic criteria are in Appendix 3.

B. Poverty Reduction Impact

73. The Project will restore the country’s efforts to reduce poverty by reinstating people’s access to local and provincial markets for agricultural and fisheries products, thereby restoring income generation opportunities. The Project also will reduce poverty by offering direct employment on the Project. During implementation, employment will be created in construction and maintenance for civil works. Following completion, employment opportunities will arise for routine maintenance conducted through community contracts. 74. During the poverty and social analysis of the subprojects, the economic impacts of the Project on the poor and nonpoor will be assessed using secondary and field data. Distributional analysis will not be needed unless the initial assessment is considered insufficient, and if the extra data collection and analysis required for distributional analysis is considered worthwhile. A summary poverty reduction and social strategy is in Appendix 8. A social and poverty impact analysis of the sample subproject is in Supplementary Appendix E.

C. Social Impacts

75. The Project will restore access to social services and safe water for Gizo town residents. Positive social impacts include restoration of access to education facilities, which will help maintain school enrolment and retention rates, and restoration of access to health services, which will promote more frequent use and facilitate rapid care during medical emergencies. Other social benefits include restoration of access to administrative and service centers, including communication facilities. 76. As part of the poverty and social analysis of subprojects, consultations will be undertaken in each subproject location with (i) resource owners, (ii) households, (iii) the poor and nonpoor, (iv) females and males, (v) young and old, (vi) the disabled, (vii) community-based organizations and NGOs, (viii) transport service providers and users, (ix) local contractors, and (x) provincial and district governments. The TTF is expected to establish local consultative groups that will be the primary contact point between the Project and communities on project- related matters, including recruitment of labor and access to aggregates. 77. Poverty and social analysis at the subproject level will be gender-disaggregated to determine (i) the differential project impacts and risks facing women, (ii) gender-specific measures to mitigate adverse impacts and manage risks, and (iii) the interests and capacities of women to contribute to infrastructure rehabilitation and maintenance. The Project will be proactive in ensuring the involvement of women. 78. While the reported number of HIV/AIDS infections remains low across the country, Solomon Islands is vulnerable to HIV/AIDS. Appropriate education and prevention will be integrated to the Project. Construction contractors will be required to provide their crews and communities access to education and control programs. 79. The rehabilitation subprojects are not expected to require resettlement or land acquisition, as all works are expected to be undertaken on existing facilities within existing rights-of-way. If changes in conditions require land acquisition or resettlement for civil works, the Government will inform ADB and prepare a resettlement plan according to relevant laws and regulations, the resettlement framework in Appendix 11, and ADB guidelines.

80. Native Melanesians, who comprise the vast majority of the population, are the indigenous people of Solomon Islands. For the indigenous population, the rehabilitation subprojects will improve access to health, education, livelihood, and social services. The Project is not expected to have a differential impact on indigenous peoples.

D. Environmental Impacts

81. The Project is classified environmental category B, in accordance with ADB’s Environment Policy (2002) and Environmental Assessment Guidelines.12 Field surveys of sample subprojects were conducted to help assess environmental impacts of the Project. All activities are expected to be confined to existing locations and rights-of-way, and neither land acquisition nor resettlement should be required. An initial environmental examination (IEE) incorporating an environmental management and monitoring plan (EMMP) has been prepared and is in Supplementary Appendix C. A summary IEE (SIEE) is in Appendix 9. Environmental Assessment and Review Procedures are in Supplementary Appendix F. ADB’s assessment procedure is aligned with the environmental impact assessment requirements of the Government’s Environment Act, 1998. 82. The Project will be designed to withstand the increased likelihood of future disasters and natural hazards. The environmental impact of the disaster has altered the coastline and changed surface and undersea conditions in some areas. Some zones near former wharves, jetties, and sea walls may be more vulnerable to erosion, wave removal of sand, and projected sea level rises. The design process will include analysis of alternatives for construction that will be reviewed for potential environmental impacts and enhanced environmental sustainability. 83. Subproject environmental selection criteria will ensure that the Project will not permanently harm any ecologically or culturally sensitive areas and that all negative impacts identified will be avoided or mitigated through the design. The construction of improved drainage structures, stabilization of slopes through bioengineering, and other measures undertaken by the Project will have long-term beneficial impacts on the environment. Short-term impacts will be unavoidable during construction. These might include noise, dust, and other temporary impacts such as loss of vegetation due to earth moving; and minor sedimentation of waterways and the coastal environment near the shore. These impacts will be addressed, and methods specified in the EMMP will mitigate them. 84. Each subproject will be subject to an IEE, which will include a detailed, site-specific EMMP prepared under the responsibility of the PMCBU. The EMMP will specify the required mitigation measures and monitoring activities to ensure their effectiveness. Environmental assessment review procedures (EARP) have been prepared that will guide the environmental management of the sector project and preparation of environmental assessment of the subsequent subprojects.

E. Project Risks and Mitigation

85. The risks and mitigation related to the Project include:

(i) Technical risks. Weak capacity within the EA could lead to implementation problems. Underestimation of resource allocation and improper construction methods and equipment might cause delays and increase costs. Limited availability of aggregates in some areas could pose difficulties. The project

12 ADB. 2003. Environmental Assessment Guidelines. Manila.

design will mitigate these risks by (a) managing the Project through the existing PMCBU, which has demonstrated satisfactory performance, (b) incorporating provisions in tender documents for evidence of satisfactory past performance by contractors in similar conditions; (c) requiring a minimum level for provision of physical plant at mobilization, detailed quantification of engineering risks, and adequate contingencies for unforeseen items; and (d) holding community consultations in advance, with government support, on subproject selection and access to resources. (ii) Financial risks. Grant-financed budgetary allocations for the Project could be inadequate as a result of underestimated construction costs, more-than-routine supervision of contractors, inflation during implementation, and the potential cost of defending construction claims lodged by contractors. To mitigate these risks, the PMCBU will (a) use conservative cost estimates; (b) use strict and effective contract conditions to mitigate slow contractor performance; (c) develop measures to mitigate uninsurable risks during preparation of the contract documentation to limit the employer’s exposure, including requirements for foreign exchange hedging by contractors; and (d) require a guarantee by the contractor for 1 year following rehabilitation to ensure construction quality. Government budgetary allocations for counterpart contributions could be inadequate because of poor national financial management. Ongoing programs supported by development partners are strengthening the Government’s budgetary processes, financial management systems, and provincial governance and will thus improve the environment for project implementation and institutional capacity building. ADB project and TA review missions, as well as country consultation missions, will engage in regular dialogue to maintain support and commitment. ADB also will continue to work closely with development partners to promote sector governance improvements. (iii) Environmental risks. Civil works, including material acquisition, could create negative impacts on the environment. Although the high rainfall climate, ecologically sensitive coastal and forested landscapes, and high level of biodiversity and endemism provide a high potential for environmental impacts, activities will be undertaken in a narrow corridor. The Project will not disturb major habitats, most activities will be in areas previously used for similar infrastructure, and an environmental management plan will be put in place for each set of subprojects. Adherence to best engineering practices during rehabilitation, and strict enforcement of the EMMP, will avoid or adequately mitigate all of the rehabilitation-related impacts. There are increasing risks of a greater frequency or severity of natural events caused by climate change. The risks to rehabilitated infrastructure are mitigated by using higher engineering standards for construction. (iv) Land and material acquisition risks. Landowners and rural populations are expected to welcome rehabilitation for social and economic benefits. The existing practice in Solomon Islands is for local landowners to grant access to local materials as their counterpart contribution. Existing policies of the Government and development partners supporting counterpart contributions will mitigate the risk of demands for compensation. (v) Social and post-conflict environment risks. Social risks occur through possible encroachment of project activities onto customary land or areas of cultural significance; and through demand for resources such as water, gravel,

and sand, without prior discussion with local land or resource owners. The post- conflict environment is stable, particularly in the affected areas which were relatively uninvolved in the original conflict, and the economy is recovering. The business environment is increasingly positive, as contractors and consultants respond to business opportunities. If political instability increases or the peace and order situation deteriorates, prospective bidders might have less interest in the Project, increasing tender prices. This also could reduce community support for the Project. These risks can be managed in each subproject through prior discussions with local landowners, in cooperation with ongoing community development assistance provided by development partners. (vi) Governance risks. Civil works and consulting contracts implemented by EAs are subject to risks of inappropriate procurement and potentially corrupt practices. The Government has well-documented procedures that require all contracts to be procured through a ministerial tender board. ADB TA has also helped Government develop a contract procedures manual for major, minor, and community contracts. All procedures are advertised and implemented publicly. 86. An analysis of the project risks shows the potential adverse social and environmental impacts not to be significant and capable of mitigation. Cost and implementation risks will be managed through the proposed approach to contractor selection, contract conditions, financial incentives, and penalties to avoid the late performance problems of previous projects. The risks are manageable and do not constitute barriers to successful project implementation.

VI. ASSURANCES

87. In addition to the standard assurances, the Government has given the following assurances, which will be incorporated in the Grant Agreement: (i) Counterpart contributions. The Government shall allocate, on a timely basis, adequate counterpart funds in accordance with its disaster recovery action plan. The Government shall ensure that MID has adequate budget to maintain staffing and support its routine operations, including transport and subsistence allowances for staff participating in field activities. (ii) Cofinancing. The Government shall take all necessary measures to facilitate the timely mobilization of the necessary cofinancing required for implementing the Project. In the event that cofinancing from the EC does not become available, the Government shall consult ADB to reduce the scope of the Project, or make other arrangements acceptable to ADB to cover the funding shortfall. (iii) Subproject selection. Prior to the detailed design of any subproject, the Government shall obtain ADB’s concurrence on the inclusion of the subproject for financing under the Project, based on the appraisal and selection criteria agreed between the Government and ADB. (iv) Land acquisition and resettlement. The Government shall ensure that all project rehabilitation works are undertaken within existing rights-of-way. In the event of any unforeseen land acquisition or resettlement needs, the Government shall inform ADB and prepare a resettlement plan according to applicable laws and regulations, the resettlement framework, and ADB’s Involuntary Resettlement Policy (1995). The Government, through the PMCBU, shall ensure that no construction activities begin until ADB has reviewed and approved such resettlement plan.

(v) Environment. The Government shall ensure that (a) the Project is carried out in accordance with applicable laws and regulations and ADB’s Environment Policy, (b) no civil works under the sector project shall commence until the Government’s environment agency has cleared the environmental assessment of any subproject, (c) the IEE and preliminary EMMP are prepared in accordance with the EARP, reviewed and updated at the engineering design stage, and submitted to ADB for approval, (d) the Project complies with the EMMP reflected in the updated IEE, (e) the EMMP is reflected as part of bidding documents and civil works contracts, (f) civil works contractors are closely supervised to ensure that adverse environmental impacts arising from the Project are minimized by implementing the agreed mitigating measures and standard operating practices are changed to avoid their recurrence. (vi) Gender and employment. The Government shall: (a) encourage project contractors to employ women in rehabilitation and labor-intensive maintenance; (b) provide equal pay to men and women for work of equal type, in accordance with national laws and international treaty obligations; (c) provide safe working conditions for male and female workers; and (d) ensure that project contractors comply with applicable labor laws and abstain from child labor. Specific provisions to this effect shall be included in the bidding documents. (vii) Health risks. The Government, through the PMCBU, shall ensure that all civil works contractors engaged under the Project participate in an HIV/AIDS prevention program to be funded under the Project in construction campsites. In addition, the PMCBU shall ensure that information on the risk of transmission of HIV/AIDS and other sexually transmitted diseases is disseminated to local communities in coordination with national agencies working on the issue. The PMCBU shall also include specific provisions to this effect in civil works contracts and strictly monitor compliance. (viii) Project performance monitoring and evaluation. Within 3 months of the grant effectiveness date, the Government, through the EA, shall finalize and adopt a project performance and monitoring system acceptable to ADB, based on indicators and procedures agreed between the Government and ADB. The EA shall monitor the indicators according to the agreed framework on a quarterly basis to determine the efficiency and effectiveness of the Project, and shall provide to ADB monitoring reports from the commencement of project implementation until completion. (ix) Anticorruption measures. The Government shall: (a) undertake necessary measures to create and sustain a corruption-free environment; (b) ensure that its anticorruption laws and regulations and ADB’s Anticorruption Policy are strictly enforced and are being complied with during project implementation, and that relevant provisions of ADB’s Anticorruption Policy are included in all bidding documents for the Project; (c) facilitate ADB’s exercise of its right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive or coercive practices relating to the Project; (d) ensure that the EA conducts periodic inspections on the contractors’ activities related to fund withdrawals and settlements; and (e) ensure that all contracts financed by ADB in connection with the Project include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all contractors, suppliers, consultants and other service providers as they relate to the Project.

VII. RECOMMENDATION

88. I am satisfied that the proposed grant would comply with the Articles of Agreement of the Asian Development Bank (ADB) and recommend that the Board approve: (i) the grant of $4,950,000 to Solomon Islands for the Emergency Assistance Project from ADB’s Special Funds resources on terms and conditions that are substantially in accordance with those set forth in the draft Grant Agreement presented to the Board herewith, and; (ii) the administration by ADB of loans or grants in accordance with the proposal set forth in paragraph 50 of this Report to Solomon Islands for the Emergency Assistance Project, to be provided by any development partner or cofinancier on a loan or a grant basis after the date of the Board's approval for such Project. 89. I also recommend that the Board approve the administration by ADB of a grant from the European Commission not exceeding the equivalent of $4,000,000 to Solomon Islands for the Emergency Assistance Project, provided that the Directors representing not less than two thirds of the total voting power of the members shall have approved, pursuant to Article 14(ix) of the Articles of Agreement, the expansion of the procurement eligibility for the road rehabilitation component to include procurement of eligible goods and services from countries eligible for procurement under European Commission regulations.

Haruhiko Kuroda President

18 June 2007

Appendix 1 21

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Data Sources/ Assumptions and Risks Targets/Indicators Reporting Mechanisms Impact Normal economic and Employment and income Development partners’ Assumptions social activities and opportunities reinstated country reports accessibility resumed in to pre-disaster levels in Continued political stability affected areas the project area by Socioeconomic monitoring reports Sound management of financial completion* resources Accessibility of public Household income and expenditure survey Sufficient incentives for rural services reinstated to agriculture to resume in pre-disaster levels in the Environmental monitoring response to restored transport project area by reports that include natural completion* environmental changes and Damage to repaired constraints Risk infrastructure minimized Increased frequency or severity in event of future natural of natural events disasters Outcome Access to markets for Road transport services Household income and Assumptions agricultural and fisheries operate at pre-disaster expenditure survey products, social services, levels on rehabilitated Continued availability of and tourism areas via land roads* National Transport Plan transport services transport restored annual monitoring reports Continued successful Ministry of Planning performance on infrastructure Access to markets for Interisland ships resume socioeconomic monitoring maintenance agricultural and fisheries services to ports with reports products, social services, rehabilitated wharves Continued coordination and tourism areas via sea and jetties* Ministry of Health monitoring between development partners transport restored reports and Government

Risks to public health Safety and reliability of caused by unreliable and water supply improved to unsafe town water system meet minimum reduced government standards Effective disaster recovery Adoption of revised coordination coordination processes Reduced vulnerability of Reduced maintenance infrastructure to hazards for rehabilitated facilities Outputs 1. Provincial and secondary About 35 kilometers of Road condition and field Assumptions roads rehabilitated to roads repaired to good surveys restore full accessibility condition by project No interruptions from force completion Ministry of Infrastructure majeure Development Marine Division About 19 bridges inspection reports Project management unit repaired to good staffed with qualified people condition by project Ministry of Health inspection reports Appropriate design standards completion adopted and employed Outcomes of development About 35 culverts and fords repaired to good partner meetings condition by project Project progress and completion completion reports

22 Appendix 1

Design Summary Performance Data Sources/ Assumptions and Risks Targets/Indicators Reporting Mechanisms 2. Water landings About 5 wharves and Risks rehabilitated to restore jetties repaired to safe access to interisland usable condition by High staff turnover in project shipping project completion management unit and government counterpart agencies 3. Gizo town water system Water supply reliability Possibly low labor availability, restored to normal repaired to pre-disaster especially for women, on a functionality levels by project seasonal basis completion Limited local contractor Water quality meets personnel and equipment health standards by capacity project completion 4. Maintenance on At least one community rehabilitated infrastructure contract implemented for conducted through each segment of community participation rehabilitated road by and labor based methods project completion 5. Disaster recovery Finalized standards, processes prepared guidelines, monitoring plan Activities with Milestones Inputs General Project 1.1 Damage assessment completed by June 2007 Asian Development Bank: $4.95 million grant funded by Asian 1.2 Recruitment of consultants by August 2007 Development Fund 1.3 Government to prepare and approve priority list of subprojects by November 2007 Cofinancing: $4.00 million grant 1.4 Procurement actions to commence by November 2007 funded by the European Commission 1.5 Inception of civil works by January 2008 and completion by July 2009 Government of Solomon 1.6 Project performance and monitoring system established by November 2007 Islands: $0.80 million Technical Assistance Project Components Asian Development Bank: 2.1 Rehabilitation of about 35 km of roads to fair conditions by July 2009 $800,000 grant 2.2 Repair or replacement of about 19 bridges by July 2009 Government of Solomon Islands: $150,000 2.3 Repair or replacement of about 35 culverts and fords by July 2009

2.4 Repair of about 5 wharves and jetties by July 2009 2.5 Repairs to Gizo water supply, distribution, storage, and sanitation systems by July 2009 2.6 Technical assistance provided for (i) disaster recovery coordination and (ii) infrastructure assessment and planning by July 2009 * Values for indicators to be determined during implementation and revised in the inception report

COST ESTIMATES AND FINANCING PLAN ($ million) Item Cost Financing

European ADB Commission Government

A. Base Cost 1. Civil Works a. Road rehabilitation 4.00 0.00 4.00 0.00 b. Wharf and jetty rehabilitation 2.15 1.95 0.00 0.20 c. Gizo water supply and sanitation 1.01 0.91 0.00 0.10 d. Maintenance 0.25 0.15 0.00 0.10 Subtotal (A1) 7.41 3.01 4.00 0.40

2. Equipment, Vehicles, and Furniture 0.25 0.20 0.00 0.05

3. Consulting Services a. Design and Supervision 0.34 0.27 0.000.07 b. Project Management 0.34 0.26 0.00 0.08 Subtotal (A3) 0.68 0.53 0.00 0.15

Subtotal (A) 8.34 3.74 4.00 0.60

B. Contingencies 1. Physical Contingencies 0.71 0.61 0.00 0.10 2. Price Contingencies 0.70 0.60 0.00 0.10 Subtotal (B) 1.41 1.21 0.00 0.20

Total 9.75 4.95 4.00 0.80 ADB = Asian Development Bank, LBES = Labor-based equipment supported No interest charges during construction as all financing is on a grant basis.

Taxes and duties are not included as externally-funded projects are exempt 2 Appendix Total and subtotal amounts might differ due to rounding. Source: Asian Development Bank estimates.

24 Appendix 3

SUBPROJECT ELIGIBILITY CRITERIA

A. Project Components 1. The Solomon Islands Emergency Assistance Project will rehabilitate essential infrastructure that was damaged by the earthquake and tsunami in Choiseul and Western provinces, including (i) approximately 35 km of rural and town roads, (ii) about 19 rural bridges and 35 culverts and water crossings, (iii) about five wharves and jetties, and (iv) the Gizo town water supply and sanitation system. Subprojects will be selected based on agreed eligibility criteria (section B). 2. Roads to be rehabilitated are gravel and earthen roads, which have been damaged due to seismic and tsunami action. Road surfaces are heavily scoured and covered with debris. Roadside drains and most culverts are silted or blocked and a number of culverts have been damaged.

3. Many bridges and their foundations and abutments, which were not designed for seismic activities, have been completely destroyed. A few bridges appear to be in satisfactory condition or in need of minor repairs but will require thorough investigation for seismic loading as the earthquake destabilized their foundations and they may no longer be sound for heavy loads.

4. Similarly, many wharves were damaged. In some cases only the superstructure is damaged and in need of repairs. In others, the gabions, abutments, and foundations have suffered major damage, and in a few cases the structures have been completely destroyed. Potential underground and underwater damages will require further investigation

5. The Gizo water supply is operational but damaged. The distribution main from the intake to the storage reservoir was broken in several locations, the intake capacity needs improvement, the distribution main upgraded, and water storage capacity and purification increased. Sanitation facilities also require attention.

6. Rehabilitation subprojects will be subject to investigation and design criteria, though a range of engineering solutions will be considered. Assessments will include analysis of least cost alternatives including full life cycle costs, potential environmental impact, and sustainability to natural hazards.

B. Subproject Eligibility Criteria 7. Subprojects will meet the following general eligibility criteria: (i) The subprojects will rehabilitate infrastructure assessed as high development priorities based on their contribution to the objectives of the NERDDP, particularly: (a) improved accessibility to social services among poor and rural households, including schools, health facilities, and Government extension services; (b) restored opportunities for employment and income generation among poor and rural households; and (c) contribution to economic growth and poverty reduction among poor and rural households.

Appendix 3 25

(ii) The Government will endorse the subprojects through the project steering committee. 8. Subprojects will be economically viable, and will demonstrate an appropriate economic internal rate of return. An economic analysis will be conducted in accordance with the Asian Development Bank’s (ADB) Guidelines for the Economic Analysis of Projects (1997). In addition to standard parameters1 of analysis, subprojects will be assessed for their contribution to: (i) potential for restoration of agricultural production; (ii) potential for restoration of exports of agricultural and marine products; (iii) potential for restoration of tourism; (iv) employment of local communities and contractors for maintenance and small scale works; (v) restoration of incomes, particularly among poor and rural households; and (vi) contribution to economic growth.

9. Environmental screening will be conducted for all subprojects in accordance with ADB's Environmental Assessment Guidelines (2003). In selecting subproject sites, including extraction sites for materials to be imported to construction sites, the following environmental criteria will be used for the first level of screening. If any of these criteria are found applicable to the site, then the subproject will require the production and approval of an environmental impact assessment (EIA), following the procedures and requirements of an environmental category A project according to ADB’s environmental guidelines: (i) sites in or adjacent to areas classified as ecologically sensitive; (ii) requirement for major re-alignment of an existing road or complete relocation of an existing bridge or wharf that may cause significant environmental impacts; (iii) significant adverse impacts on natural/primary forest or near-shore marine environments such as reefs, mangroves, or other sensitive coastal areas; (iv) permanent negative effect on a known rare or endangered species; and (v) permanent damage to irreplaceable cultural relics and archaeological sites. 10. Screening for land acquisition and resettlement impacts will be conducted for all subprojects. Any subproject that would entail involuntary resettlement, according to ADB's Involuntary Resettlement Policy (1995) will require production of a resettlement plan according to relevant laws and regulations, the Resettlement Framework, and ADB guidelines.2

1 Such as assessments of alternative modes of transport, full life cycle costs of rehabilitation and maintenance, traffic forecasts based on forecast economic growth and income elasticity of travel demand in project areas, and use of appropriate shadow pricing and conversion factors for economic benefits. 2 “Involuntary resettlement” addresses social and economic impacts that are permanent or temporary and are (i) caused by acquisition of land and other fixed assets, (ii) by change in the use of land, or (iii) restrictions imposed on land as a result of an ADB operation. An “affected person” is one who experiences such impacts. The term affected person includes any people, households, firms, or private institutions who, on account of changes that result from the project will have their (i) standard of living adversely affected; (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence, or habitat adversely affected, with or without displacement.

26 Appendix 3

C. Subproject Assessment Process 11. A long list of potential subprojects will be identified and prioritized based on high-level assessments of (i) existing networks and levels of usage; (ii) technical feasibility of providing access by alternative modes; (iii) positive and negative economic, social, and environmental impacts; (iv) the need for connecting infrastructure, and (v) implications of any proposed changes to spatial planning or land use rezoning. Subprojects will be restricted to facilities damaged in the disaster. 12. The Executing Agency, assisted by the Project Management and Capacity Building Unit (PMCBU), will conduct and document an assessment of each subproject based on the criteria described in Section B. Each assessment will involve collecting and analyzing baseline data to determine the detailed feasibility and impacts expected, using generally accepted planning methods. Community consultations will be conducted to (i) validate baseline data; (ii) identify positive and negative impacts; and (iii) evaluate technical, social, and environmental risks. Throughout the process, particular attention shall be paid to data collection to enable benefit monitoring, according to the performance indicators described in Appendix 10. 13. Each subproject assessment will include (i) a technical feasibility assessment; (ii) an economic impact analysis; (iii) a social and poverty analysis; and (iv) an initial environmental examination and a full EIA if warranted, in accordance with the environmental assessment and review procedures. Each component of the assessment will confirm acceptable ratings against the criteria, or recommend further work to complete the assessment. 14. The transport task force, in its capacity as the project steering committee, will endorse the subprojects that meet all the eligibility criteria. Before the detailed design of any subproject, and its inclusion for financing under the Project, proposed subprojects are subject to approval by ADB.

Appendix 4 27 27

IMPLEMENTATION SCHEDULE

2007 2008 2009 Project Component Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Grant Effectiveness Jul

Project Management PMCBU recruitment Pre-feasibility, subproject identification Public consultations Feasibility studies Detailed design and preparation of bidding documents Tendering, evaluation, and mobilization

Civil Works Rehabilitation of roads Rehabilitation of bridges Rehabilitation of wharves Rehabilitation of water supply and sanitation

Road maintenance

Technical Assistance Recruitment

MID = Ministry of Infrastructure Development, PMCBU = Project Management and Capacity Building Unit Source: Asian Development Bank estimates.

28 Appendix 5

MASTER PROCUREMENT PLAN

Table A5.1: Project Information Country Solomon Islands Name of Grantee Government of Solomon Islands Project Name Emergency Assistance Project Project Reference SOL 41105 Date of Effectiveness July 2007* Amount $9.75 million Of which, Committed — Executing Agency Ministry of Infrastructure Development Approval Date of Original Procurement Plan June 2007* Approval of Most Recent Procurement Plan June 2007* Publication for Local Advertisements Expressions of Interest: August 2007* General Procurement Notice: August 2007* Invitation for Bids: November 2007* Period Covered By This Plan July 2007–December 2007 * = estimated date — = not applicable Source: Asian Development Bank estimates. Table A5.2: Procurement Thresholds for Works, Goods, and Related Services Procurement Method Value To Be Used Above ($) ICB Works $1,000,000 ICB Goods $500,000 NCB Works Less than $1,000,000 NCB Goods Less than $500,000 Shopping Works Less than $100,000 Shopping Goods Less than $100,000 Exceptional Methods: Community participation in procurement will be Less than $50,000 employed for small scale works and maintenance, in which local groups are contracted for routine road maintenance. Source: Asian Development Bank estimates.

Appendix 5 29

Table A5.3: Procurement Thresholds for Consulting Services Procurement Method Value To be Used Above ($) Quality- and Cost-Based Selection (QCBS) — Consultants Qualifications Selection — Least-Cost Selection — Exceptional Methods — Single source selection will be used to Less than $650,000 select consulting services due to the emergency nature of the Project. — = not available. Source: Asian Development Bank estimates.

Table A5.4: Contract Packages Exceeding $100,000 for Goods, Works, and Consulting Services Ref Contract Estimated Procurement Expected Date Prior Comments Description Cost Method of Review Advertisement Y/N ($) 1 Civil Works – 4,000,000 ICB / NCB November 2007* Y The number roads and size of contracts to 2 Civil Works – 2, 150,000 ICB / NCB November 2007* Y be finalized wharves once subprojects November 2007* 3 Civil Works – 1, 010,000 ICB / NCB Y are appraised water supply and selected /sanitation 3 Civil Works - 250,000 CC January 2007* maintenance 5 Consultants 650,000 Direct — Services selection CP = community procurement, ICB = international competitive bidding, km = kilometer, LBES = Labor-Based Equipment Supported, NCB = national competitive bidding, S = shopping. * = estimated date — = not available. Source: Asian Development Bank estimates.

30 Appendix 6

OUTLINE TERMS OF REFERENCE FOR THE PROJECT MANAGEMENT AND CAPACITY BUILDING UNIT

A. Introduction 1. The existing Project Management and Capacity Building Unit (PMCBU) provides day-to- day project management on behalf of Government for the Solomon Islands Road Improvement (Sector) Project (SIRIP). The PMCBU will be tasked with providing similar project management for the Solomon Islands Emergency Assistance Project (SIEAP), as necessary to implement the Project successfully and comply with ADB policies and guidelines. 2. Although the PMCBU is fully integrated with MID professional and technical staff as counterparts, the volume and schedule of existing activities under SIRIP and MID’s limited technical staff resources mean that the PMCBU needs to be supplemented with additional support for these services. Consultants will be selected through a firm using ADB’s single source selection procedure. At the request of the Government, ADB will recruit the consultants.1

B. Scope of Work 3. The PMCBU will (i) provide day to day project management in the role of resident engineer, (ii) conduct on-site field supervision; (iii) manage contracts, including those for community maintenance; (iv) prepare withdrawal applications; (v) prepare project progress reports, socioeconomic and environmental impact monitoring reports, and a project completion report; and (vi) maintain project accounts for auditing. 4. The team may include but is not necessarily limited to a resident engineer, two works supervisors, and a community works coordinator, along with appropriate levels of support staff. The PMCBU follows national labor regulations, and is expected to offer equal opportunities to women and minorities. The consultants will work through the PMCBU, reporting to the existing Project Manager, to support MID in implementing the Project in the following areas: Resident Engineer (International, 18 person months) (i) Supervise preliminary and final technical documentation, including engineering design and specifications, for subprojects. Technical documentation from ongoing ADB projects and TA can be adapted. Designs should be based on least-cost life cycle analysis of available local materials and procedures. (ii) Administer, implement, and monitor international and local contracts for civil works, equipment, and consulting services under the Project. (iii) Establish a project performance and monitoring system, in accordance with the design and monitoring framework, guidelines for project performance monitoring indicators, environmental management plans, and environmental assessment and review procedures, all of which are appendices in the RRP. (iv) Establish and administer a financial management system for the Project in accordance with the relevant ADB guidelines, including the guidelines for the financial governance and management of projects,2 concerning administration of disbursements, imprest account replenishment, submission of withdrawal applications, and arrangement of direct payments to contractors.

1 Specialized technical support to reduce vulnerability to natural hazards and improve community consultations in response to the disaster will also be provided under technical assistance (TA) as described in Appendix 7 2 ADB. 2003. Handbook for Borrowers on the Financial Governance and Management of Investment Projects financed by the Asian Development Bank. Manila.

Appendix 6 31

(v) Manage and facilitate the timely disbursement of project funds in accordance with ADB’s Loan Disbursement Handbook (2007, as amended from time to time).

Works Supervisors (National, two positions, 18 person months each) (i) Provide field supervision of subprojects to ensure quality control of civil works. (ii) Assist with environmental and socioeconomic monitoring of subprojects, in support of technical specialists (iii) Provide monthly supervision reports to the Resident Engineer.

Maintenance Coordinator (National, 12 person months) (i) Establish and implement community liaison processes to facilitate consultation and engagement of community groups (ii) Implement and monitor community contracts for maintenance of infrastructure. (iii) Facilitate environmental and socioeconomic monitoring of subprojects, in support of technical specialists (iv) Provide monthly supervision reports to the Resident Engineer

Provisional Technical Services (National, 6 person months) (i) In addition to the specialist tasks detailed above, a provisional sum for engagement of up to 6 person months of additional technical services, to be provided by national consultants, is included. (ii) These tasks may include, but are not limited to, engineering drawings, materials testing, and community development.

5. The PMCBU shall produce the following outputs: (i) Subproject feasibility assessments. (ii) Designs and specifications for all civil works. (iii) Evaluation reports for all proposed civil works contracts. (iv) Executed civil works contracts. (v) Completed roads rehabilitation program, as agreed for the Project. (vi) Project reports (as detailed in Section C). (vii) Detailed project performance monitoring system (including detailed indicators).

C. Reporting 6. The consultants will support the MID with reporting requirements, including: (i) Inception report, within 4 weeks of start of the Project. (ii) Quarterly progress reports in ADB format, submitted within a month of the end of the quarter. (iii) Draft final report and draft project completion report in ADB format (vi) Final report and final project completion report 1 month after receiving the comments on the draft final report from the Government and ADB.

D. Cost Estimates 7. The total cost of implementation assistance will be $640,000 equivalent, financed by grant proceeds, as shown below.

32 Appendix 6

Table A6.1: Cost Estimates ($) Item Total

1. Remuneration and Per Diem 555,000 i. International Consultants 396,000 ii. National Consultants 159,000 2. International and Local Travel 21,000 i. International 6,000 ii. Local 15,000 3. Reports and Communication 12,000 4. Administration and Support Costs 36,000 5. Contingencies 56,000

Total 680,000 ADB = Asian Development Bank. Source: Asian Development Bank estimates

Appendix 7 33

TECHNICAL ASSISTANCE FOR STRENGTHENING DISASTER RECOVERY PLANNING AND COORDINATION

A. Rationale 1. On 2 April 2007 a massive undersea earthquake triggered a tsunami that struck Western and Choiseul provinces. Islands in these two provinces suffered widespread damage to housing, infrastructure, schools, and medical facilities, and several villages were destroyed. An estimated 20,000 people of a total population of 90,000 in both provinces have been affected. About 5,000 people were displaced and 52 people died. 2. The Emergency Assistance Project will restore economic and social activities and accessibility in the affected area to the pre-disaster level and make it less susceptible to future natural disasters. The Project will assist the government in rehabilitating damaged infrastructure and make it less vulnerable to climate change. 3. The disaster has revealed a need to improve the Government’s capacity to manage emergency response, improve infrastructure analysis and planning, and develop an effective framework for mitigating vulnerability to climate change. Developing a reconstruction strategy requires vision, the focus and involvement of the communities affected, strong implementation arrangements and monitoring systems. In devising a strategy to guide the reconstruction process, decision makers should build on the damage assessment by: (i) developing a reconstruction strategy through a consultative process; (ii) rapidly mobilizing of reconstruction funds and activities; (iii) focusing on the needs of the local population; (iv) establishing the highest fiduciary standards and efficient system managing the funds, and (v) updating and monitoring needs and results. Community consultation is imperative to devising the plan for reconstructing. 4. Implementing that plan and coordinating all elements of what will be an extremely complex undertaking is just as crucial. Rebuilding the affected areas will involve all levels of government from national to village as well as domestic and international organizations, bilateral and multilateral institutions, donors and community groups. Coordinating these organizations within the overall recovery and reconstruction process is a major task. One international advisor and two local coordinators will be required to meet this challenge.

B. Impact and Outcomes 5. The goals of the technical assistance (TA) are to strengthen disaster management, infrastructure planning, and capacity to ensure that infrastructure designs incorporate adaptation and mitigation strategies and are less vulnerable to climate change and potential future disasters. 6. The outcomes will (i) strengthen disaster and emergency management by establishing an effective coordination process across relevant ministries to administer the current and future recovery response operations, and (ii) improve assessment, analysis, and subproject preparation in the affected areas that incorporate climate change adaptation, thereby helping Government develop an effective approach to mitigating the country’s vulnerability to adverse weather conditions.

34 Appendix 7

C. Outline Terms of Reference 7. Approximately 32 person-months of international consulting services and 126 person- months of national consulting services are required in total. Consulting services will be required for two components as described below. 1. Component 1—Disaster Recovery Coordination 8. Component 1 of the TA for disaster management will provide technical support to the Government’s newly-established Finance and Economic Development Unit (FEDU) to develop and maintain the coordination process in Honiara and the affected areas in Western and Choiseul provinces. The component will improve the Government’s capacity to manage emergency response and develop an effective framework for mitigating vulnerability to climate change by establishing an effective response capability through efficiently coordinated networks across relevant ministries to administer the current and future recovery response operations. Implementation will require a transition from ongoing arrangements and responsibilities of the National Disaster Management Office (NDMO), and the Ministry of National Development Planning and Aid Coordination—Technical Assessment Team (MDP/TAT). 9. Consultants for Component 1 will be selected as individuals. Three consultants are required as follows Adviser for Disaster Reconstruction and Rehabilitation (International, 4 person months) 10. The adviser will be in a facilitating role supporting the transition of responsibilities from the NDMO and MDP/TAT to the FEDU, in direct support of Government and involving all stakeholders through the reconstruction and rehabilitation process. The adviser will work closely with MOF and the Director of the FED and in coordination with all relevant stakeholders. The nature of the work will require flexibility, depending on developments and emerging priorities in the course of the assignment. The flexibility requirement notwithstanding, the adviser is expected to undertake the following specific tasks: (i) Coordinate closely with UNDP in their early recovery efforts (including implementation of the Recovery Action Plan [RAP]). The adviser will ensure that the RAP is closely coordinated with the efforts in the rehabilitation phase. (ii) Provide continuity and input during the transition of responsibilities from NDMO to MDP/TAT to the FED. (iii) Ensure the application and dissemination of standards, guidelines, and approaches to full recovery. (iv) Assist Government in coordinating donor relationships around (i) the implementation of rehabilitation and reconstruction activities, (ii) regular interaction with donor agencies to report progress and get feedback to support engagement in the process. (v) Prepare a comprehensive reconstruction and rehabilitation monitoring framework and program including reporting documentation. Ensure that there is sufficient consultation among key stakeholders. (vi) Taking into consideration damage and loss assessment and existing donor resources available to address emergency rehabilitation needs, assist in carrying out a financial gap analysis as part of the reconstruction and rehabilitation plan. (vii) Assist the Government in the preparation and coordination of critical input papers for a donor conference and help support government officials to effectively and efficiently lead the conference. (viii) Facilitate the launching of the implementation of a committed reconstruction and rehabilitation program.

Appendix 7 35

(ix) Transfer skills and knowledge to relevant Ministry officials to enable them to learn from the current experience and to better prepare for future disaster recovery and reconstruction and rehabilitation responsibilities. (x) Provide advice to all stakeholders with respect to international good practice in disaster reconstruction and rehabilitation. (xi) Work with Government and other stakeholders towards the following outputs: a monitoring and evaluation framework for the recovery program, a final report to Government and stakeholders on progress towards return to normal activities in the earthquake and tsunami affected areas. Coordinators for Disaster Recovery and Rehabilitation (National, 48 person months) 11. ADB has accepted the lead coordination role in the recovery and rehabilitation efforts underway. This requires a longer outlook and engagement in activities. Consequently, a National Coordinator and a Provincial Coordinator will be engaged for a period of 24 months each to support successful implementation of the reconstruction and rehabilitation plan. They will be responsible for enhancing communication and coordination among stakeholders and between the national and provincial Government. Strengthening this link and flow of information is critical for the implementation of the reconstruction and rehabilitation effort. It will also help support the application and dissemination of transparent and equitable standards, guidelines, and approaches to full recovery. This includes sustaining forums between Government, civil society, nongovernment organizations (NGOs), knowledge networking and information sharing, database management and effective monitoring of progress. The coordinators will initially work directly with the adviser for the first 4 months to establish systems and processes. Each coordinator will have a Government counterpart to support capacity building and joint engagement in these activities. General tasks applicable to both the national and provincial coordinators include but are not limited to: (i) Contribute to the FEDU to at the national and provincial level to enhance coordination of all agencies and stakeholders in the early and long-term reconstruction efforts strengthening links between Government, national and provincial activities. (ii) Maintain the beneficiary database developed by NDMO database, and use it to identify gaps and potential overlaps, provide clear information to all actors on needs and plans, and monitor equity and efficiency of aid delivery. Ensure this information is communicated to Government and stakeholders. (iii) Liaise with Ministry of Infrastructure Development (MID) and others key ministries to ensure that rehabilitation activities continue to progress. Exchange and verify information on progress with the provincial counterpart provide updates to Government counterparts and ADB. (iv) Streamline public information systems and communication on reconstruction and rehabilitation progress and planned interventions. (v) Provide information to affected communities and village disaster committees to assist in their recovery planning and implementation. (vi) Provide support and information to ADB staff as required during this period. (vii) Work with Government and other stakeholders at the national and provincial level to institutionalize coordination mechanisms, apply and maintain the monitoring mechanisms and framework for the reconstruction and rehabilitation plan, and engagement of all stakeholders.

12. In addition to the general tasks described above, the National Coordinator (24 person months) shall:

36 Appendix 7

(i) Support Government efforts to coordinate recovery, reconstruction, and rehabilitation activities of various agencies at the national level. This includes engaging stakeholders and NGOs and developing systems to streamline information sharing and among relevant agencies and groups. (ii) Assist in coordinating consultations involving Government and relevant stakeholders. (iii) Promote and report on the dissemination of standards, guidelines, and approaches to full recovery ensuring equality and transparency of process and application. (iv) Support Government efforts to compile, process, analyze and disseminate data and information related to relief and recovery activities, including semi-annual progress reports on reconstruction and rehabilitation activities. (v) Enhance existing NDMO databases to develop a common beneficiary database using survey data, assessment reports, and local level recovery planning activities for capturing damage, needs, resources and gaps to avoid duplication of efforts and optimum use of resources. (vi) Work with the national and provincial authorities in monitoring the requirements and delivery of recovery services

13. In addition to the general tasks described above, the Provincial Coordinator (24 person months) shall: (i) Provide information to local communities to assist in their recovery planning and implementation. Assume a facilitating role in direct support of the Government and involving all stakeholders. (ii) Facilitate interactions and coordination among all agencies on the provincial level (i.e., NGOs, Government, UN agencies, donors, and civil society) by supporting Provincial Government efforts in convening regular meetings, encouraging participation of stakeholders in forums, and networking with all key organization representatives and experts. (iii) Sustain and streamline information sharing and coordination platforms between all relevant agencies. (iv) Support the organization of consultations involving Provincial Government, line ministries, and relevant stakeholders to promote the dissemination of standards, guidelines, and transparent approaches to recovery. (v) Support the provincial government in monitoring the requirements and delivery of recovery services.

2. Component 2—Infrastructure Assessment and Planning 14. Component 2 of the TA will improve the Government’s capacity for infrastructure analysis and planning for rehabilitation in the affected areas, and provide specialist technical services to reduce vulnerability to natural hazards. The component will provide technical support for design and capacity building to the Project Management and Capacity Building Unit (PMCBU) of the Solomon Islands Road Improvement Project (SIRIP), which will prepare the subprojects, for engineering, procurement and contract management, environmental monitoring, and community development. 15. Given the emergency nature of the project, the critical requirement to ensure continuation and integrate activities with ongoing projects, and the satisfactory performance of the existing firm, consultants for Component 2 will be selected through a firm using ADB’s single

Appendix 7 37 source selection method. The consultants will work through the PMCBU, reporting to the Project Manager, to support MID in implementing the Project in the following areas: Road Engineer / Procurement Specialist (International, 6 person-months) (i) Conduct subproject feasibility assessments, including baseline data collection, detailed feasibility studies, economic analysis, and environmental and social impact assessments, in accordance with Asian Development Bank’s (ADB) Guidelines for the Economic Analysis of Projects, Handbook for Incorporation of Social Dimensions,1 and Environment Policy (2002). (ii) Ensure that engineering designs for roads and coastal protection works incorporate improved appropriate construction standards to improve environmental sustainability and withstand potential future natural disasters including sea level rise, earthquakes, and tsunamis. (iii) Prepare preliminary and final technical documentation, including engineering design and specifications, for subprojects. (iv) Facilitate participation of Government counterparts in ongoing capacity building activities to ensure skills transfer for improved sustainability of designs. (v) Prepare tender documents and conduct the tender process for all contracts for civil works, equipment, and consulting services under the Project, in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time) and Sample Bidding Documents. Structural Engineer (International, 3 person-months) (i) Contribute specialist advice including preliminary designs and cost estimates to subproject feasibility assessments. (ii) Ensure that engineering designs for wharves, bridges, and causeways incorporate improved environmental protection and appropriate construction standards to withstand potential future natural disasters including sea level rise, earthquakes, and tsunamis. A methodology to incorporate climate proofing within design is detailed in an ADB publication.2 (iii) Facilitate participation of Government counterparts in ongoing capacity building activities to ensure skills transfer for improved sustainability of designs. (iv) Prepare preliminary and final technical documentation, including engineering design and specifications, for subprojects. (v) Prepare recommendations help the Government adopt a systematic approach to mitigating the country’s vulnerability to extreme weather conditions and natural hazards through design of environmentally sustainable infrastructure. Civil Engineer (International, 1 person-month) (i) Prepare engineering designs, specifications, and tender documents for rehabilitation of the Gizo town water supply and sanitation system. (ii) Review all subproject environmental management an monitoring plans, and provide technical advice to PMCBU staff on means to ensure compliance with environmental assurances under the Project. Environmental Specialist (National, 12 person-months)

1 ADB. 1997. Guidelines for the Economic Analysis of Projects. Manila; ADB. 1994. Handbook for Incorporation of Social Dimensions in Projects. Manila; ADB. 2002. 2 ADB. 2005. Climate Proofing A Risk Based Approach to Adaptation. Pacific Studies Series. Manila

38 Appendix 7

(i) Prepare Initial Environmental Examinations for all subprojects, including site- specific Environmental Monitoring and Management Plans. (ii) Integrate mitigation measures presented in the IEE into bidding documents and ensure provisions are made for contractors to include their approach/costs for mitigations in their bidding documents. (iii) Advise bid evaluation teams on ability of contractor proposals to achieve mitigation measures identified in the bidding documents. (iv) Provide guidance to contractors after being awarded contracts to prepare EMPs that include implementation, monitoring, and reporting of their mitigation measures. (v) Conduct site visit spot-checks of contractor's mitigations and review contractor's regular monitoring reports. (vi) Monitor compliance with environmental management plans, as necessary, and ensure compliance with environmental assurances under the Project. (vii) Facilitate participation of Government counterparts in ongoing capacity building activities to ensure skills transfer for improved sustainability of designs. Community Development Specialist (National, 6 person-months) (i) Prepare community consultation plans for each subproject and report feedback as part of each subproject assessment and progress report. (ii) Arrange and assist MID with initial and ongoing public consultations for subproject feasibility assessment and implementation of civil works. (iii) Assist with socioeconomic monitoring and preparation of necessary reports Provisional Technical Services (National, 6 person-months) (i) In addition to the specialist tasks detailed above, a provisional sum for engagement of up to 6 person months of additional technical services, to be provided by national consultants, is included. (ii) These tasks may include, but are not limited to, engineering drawings, materials testing, and community development.

D. Implementation Arrangements 16. The Executing Agency (EA) for the TA will be the Ministry of Finance and Treasury. The Implementing Agency for Component 1 of the TA will be the Ministry of Finance and Treasury, for which the Government’s Finance and Economic Development Unit (FEDU) will serve as the steering committee. The Implementing Agency for Component 2 of the TA will be the Ministry of Infrastructure Development, for which the Government’s TTF3 will serve as the steering committee. Each IA will be responsible for overseeing and monitoring its respective aspects of that component of TA implementation, including (i) policy guidance and coordination, (ii) specific outputs as described in the terms of reference, and (iii) project progress reports and other project documentation. 17. Consultants will be engaged in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time).

3 The TTF is chaired by the Permanent Secretary of the Department of Planning and includes the Permanent Secretaries of the Departments of Infrastructure and Development, Provincial Development, and Finance and Treasury as members. The MID Transport Policy and Planning Unit acts as the TTF secretariat. The Governments of Australia and New Zealand are also members by invitation of Government in recognition of their key role in the sector.

Appendix 7 39

E. Reporting Requirements 18. The consultants for both components will report all activities and monitoring outcomes under the TA including, but not limited to, the following: (i) Inception report, within 4 weeks of start of the Project, including a design and monitoring framework, an outline program and milestones; approach, methodology, and work plan; any cost implications or consulting services, and recommendations for changes in the implementation arrangements. (ii) Quarterly progress reports, summarizing activities and progress to date against the work plan, submitted within a month of the end of the quarter. (iii) Draft final report, summarizing activities and achievements against the terms of reference, including recommendations for future activities, within one month of completion. (vii) Final report 1 month after receiving the comments on the draft final report from the Government and ADB.

F. Cost Estimates and Financing Plan 19. ADB will provide TA for Strengthening Capacity Building for Disaster Recovery Planning and Coordination. The total cost of the TA will be $950,000 equivalent. The TA will be financed on a grant basis by ADB’s TA funding program which will contribute $800,000. The Government will contribute $150,000 equivalent in counterpart contributions through the provision of counterpart staff, office space and administrative support, and logistics and local transport. Table A7.1: Cost Estimates and Financing Plan ($) Item Total A. ADB Financing 1. Remuneration and Per Diem 596,000 i. International Consultants 350,000 ii. National Consultants 246,000 2. International and Local Travel 57,200 i. International 14,000 ii. Local 43,200 3. Reports and Communication 30,000 4. Administration and Support Costs 48,000 5. Contingencies 68,800 Subtotal A 800,000 B. Government Financing 1. Remuneration of Counterpart Staff 96,000 2. Office Accommodation 24,000 3. Per Diem of Counterpart Staff 10,000 3. Transport 10,000 4. Administrative Support, Others 10,000 Subtotal B 150,000 Total 950,000 ADB = Asian Development Bank. Source: Asian Development Bank estimates.

40 Appendix 8

SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY

A. Links to the Country Poverty Analysis

Is the sector identified as a national priority in Is the sector identified as a national priority in country poverty analysis? Yes country poverty partnership agreement? Yes Contribution of the sector and/or subsector to poverty reduction in Solomon Islands: On 2 April 2007 a massive undersea earthquake measuring 8.1 on the Richter scale triggered a tsunami that struck the islands of Choiseul, Gizo, Kolombangara, Mono, New Georgia, Ranongga, Rendova, Shortlands, Simbo, and Vella Lavella in Western and Choiseul Provinces. There is concern on the impact of this natural disaster on coastal vulnerability, ground water levels, agriculture, fisheries and livelihoods. All islands in the two affected provinces suffered widespread damage from the earthquake and tsunami to housing, infrastructure, schools, and medical facilities. Several villages were completely destroyed. Most of the people from the affected areas have been traumatized by the event and have fled to higher ground where they are being housed in makeshift camps. Health conditions in the camps are inadequate with regard to water, food, sanitation and medical support. Immediate food availability is also a concern and access for food security issues must be addressed. The Solomon Islands Emergency Assistance Project (SIEAP) will restore access to the highest priority transport infrastructure, social services and provide safe water. It will also facilitate positive social impacts including the restoration of access to education facilities, which will help maintain school enrolment and retention rates, and restoration of access to health services, which will promote more frequent use and facilitate rapid care during medical emergencies. Other indirect social benefits include restoration of access to administrative and service centers, including communication facilities.

B. Poverty Analysis Proposed Classification: General intervention What type of poverty analysis is needed? Poverty and Human Development in Western and Choiseul Provinces: A recent ADB participatory poverty assessment identified that poverty of opportunity exists in the country. There is also rural poverty in terms of access to basic needs and infrastructure. To a certain extent, poverty of opportunity has resulted from “misuse” whereby the resources available to the country are used to satisfy the wants of a few while many do not have even their basis needs met. The role of government in poverty reduction is in the area of provision of basic infrastructure that the poor and disadvantaged cannot be excluded from. People from the Choiseul Provinces are socio-economically and environmentally vulnerable poor due to the low coverage of basic transport infrastructure and water supply facilities. Western Province is slightly better off than Choiseul through having more transport infrastructure coverage resulting in more economic activities especially in terms of tourism. For example, Western Province has an adult literacy rate of 94%, the highest in the country (including Honiara) and considerably greater than the national average of 76.6%1. A major contributing factor is the number of schools, with Western Province having the highest number of schools in the country, and their relatively even distribution among populated areas. Enrolment rates (5–19 year olds) in Western Province are 65.4%, well above the national average of 56.3%2. Prior to the disaster, Western province was second only to Honiara in terms of accessibility to health

1 1999 Population and Housing Census. 2 1999 Population and Housing Census.

Appendix 8 41 services, when accessibility is defined as being within one hour or less of health services using the prevailing mode of transport. Some 73.1% of WP’s population enjoyed such access. Gizo is also well serviced, having two of the three hospitals in the “North Solomon region” (Western and Choiseul Provinces), with the other one being located in Munda. Human development refers to development that improves peoples’ lives and livelihood, and places people at the heart or centre of all other development efforts. It refers to the process of enlarging the range of people’s choices – increasing their opportunities for education, health care, income and employment, and covering a full range of human choices, from a sound physical environment to economic and political freedom. It also involves an accumulation of material wealth as well as social capital. The SIEAP is designed to rehabilitate transport infrastructure which addresses the real root causes of poverty and human deprivation. Human development in the Solomon Islands calls for a basic needs approach. The basic needs identified include two elements: (a) minimum requirements of a family for private consumption—adequate food, shelter and clothing, as well as certain household equipment and furniture. (b) Essential services provided by and for the community— such as safe drinking water, sanitation, public transport, health, education and cultural facilities. This approach relies on the participation of people. The initial social assessment (ISA) of SIEAP focused on the population affected directly or indirectly by the earthquake and tsunami in Western and Choiseul Provinces. The ISA was carried out in two stages. The first stage involved gathering and analyzing secondary data on the population living within the affected areas, including information on poverty, human development, livelihoods, and accessibility of social services. Sources of preliminary secondary data include the 1997 census, United Nations Development Program Provincial Development Profiles, the 2002 Solomon Islands Human Development Report, and National Household Income and Expenditure Survey and the most recently completed Participatory Poverty Assessment. More in-depth secondary data possibly may be obtained from line ministries. The second stage of the ISA involved direct engagement with appropriate stakeholders within the two affected provinces. The impact assessment involved a combination of key informant interviews and where appropriate, focus group discussion with a range of stakeholders, social networks (such as church women’s groups identified by leaders of affected communities), and disadvantaged groups including women, old people, and transport providers. Damages, Losses and Earthquake/Tsunami impacts: The loss of human lives due to the earthquake and tsunami was amplified by the destruction of properties, livelihoods and social and transport infrastructure. The poverty impact of the disaster is localized and experienced more severely at the village and community levels, especially for households involved in fishing, gardening and village-based micro-enterprises. This destruction added to their hardship and increased their poverty of opportunity. Destruction of roads, bridges, wharves, jetties, water sources and water supply facilities has disrupted mobility and accessibility of the affected communities to essential social, economic and relief services. Since damage is largely confined to rural areas, the incidence and severity of rural poverty is likely to increase among affected communities. The most damage was sustained on Gizo and Choiseul islands. About 20,000 people of a total population of 90,000 in Western and Choiseul Provinces have been affected, with about 5,000 people displaced and 52 dead. Infrastructure damages are described in Supplementary Appendix A. Project Benefits and Impacts: The goal of the project is to restore economic and social activities and accessibility in affected areas to pre-disaster levels and increase sustainability. The purpose is to assist the government in rehabilitating damaged infrastructure and make it less vulnerable to climate change and natural hazards. The rehabilitation of damaged infrastructure is expected to restore accessibility in rural areas, allow a resumption of economic activities and social services, and safeguard public health. The project will address the repair and re-construction of physical infrastructure including; rural and town roads, bridges and culverts, wharves and jetties, and the Gizo town water supply. Reconstruction will be

42 Appendix 8 required for (i) existing facilities in their present locations and (ii) where facilities are so badly damaged new facilities may be erected in their present location. Restored water supply in Gizo town will improve overall public health. It will also reduce women’s drudgery on collecting/storing water and accrue improved health, hygiene and productivity benefits to the community, especially women and children. Reconstruction of localized wharves and jetties will improve rural market and fish landings as well as commercially important products such as copra and cocoa. It will also improve local access to essential services and support local livelihoods through labor opportunities during implementation. The transportation component will restore provincial roads and bridges, thereby re- connecting the loss networks which will enable affected population to resume social and economic activities.

C. Participation Process Is there a stakeholder analysis? Yes The SIEAP preparation involved the identification and consultation of key primary and secondary stakeholders, especially during the joint assessment of needs and damages. The key primary stakeholders are the earthquake and tsunami affected communities in Western and Choiseul Provinces. Other primary stakeholders are small farmers, women engaged in village-based micro-enterprises and vulnerable groups such as the disabled and old people. The secondary or institutional stakeholders include the National Disaster Management Office (NDMO), the provincial governments of Western and Choiseul Provinces, international relief and reconstruction agencies and other donor agencies such as NZAID and AusAID. These same stakeholders also will have opportunity to provide inputs and comments during the implementation stage, which is being led by the NDMO. Is there a participation strategy? Yes A community participation strategy is integrated into the overall project design. The reconstruction and recovery strategy emphasizes (i) utilizing decentralized and transparent decision making and community participation processes; (ii) providing employment opportunities to earthquake and tsunami affected communities; (iii) building good working relationships with implementing agencies, church networks, and community-based institutions; (iv) strengthening sustainable operation and maintenance capacity of the provincial governments. Participatory approaches will be encouraged in designing subprojects, implementation, operation and maintenance, and monitoring and evaluation arrangements. The process will involve information sharing, consultations, interviews, focus group discussions, collaborative decision making. The subproject selection criteria include targeting of most affected groups, especially women and the newly vulnerable groups, community consultations on subprojects, practical and feasible mechanisms such as labor based equipment supported (LBES) reconstruction works, preferential use of local labor and local procurement for livelihood support.

D. Gender and Development Strategy to maximize impacts on women: The SIEAP will restore and improve women’s access to income generating activities, essential social services, community structures, decision-making mechanisms and other local recovery and reconstruction-related information. Improved water supply infrastructure and other public health and health care benefits to women and their families and provide more time for productive income-generating activities by reducing the drudgery of collecting water. The SIEAP will be proactive in ensuring that women are involved in suitable infrastructure reconstruction and rehabilitation works. Has an output been prepared? No

Appendix 8 43

E. Social Safeguards and Other Social Risks

Item Significant/ Strategy to Address Issues Plan Not Required Significant/ None Resettlement Not significant The rehabilitation subprojects are not expected to No require resettlement or land acquisition, as all works

are expected to be undertaken on existing facilities within existing rights-of-way. If changes in conditions require land acquisition or resettlement for civil works, the Government will inform ADB and prepare a resettlement plan according to relevant laws and regulations and ADB guidelines. Indigenous None Native Melanesians, who comprise the vast majority of No Peoples the population, are the indigenous people of Solomon Islands. For the indigenous population, the rehabilitation subprojects will improve access to health, education, livelihood, and social services. The Project is not expected to have a differential impact on indigenous peoples. Labor Not significant Labor-intensive rehabilitation and maintenance No activities, and small-scale local labor contracting, will provide opportunities for the employment of under- or unemployed workers, with a proactive focus on women’s employment. Affordability None No tolls are proposed for the use of the roads. No Other Risks Not significant While the reported number of HIV/AIDS infections No and/or remains low across the country, Solomon Islands is Vulnerabilities vulnerable to HIV/AIDS. Appropriate education and prevention will be integrated into the Project. Construction contractors will be required to provide their crews and communities access to education and control programs.

44 Appendix 9

SUMMARY INITIAL ENVIRONMENTAL EXAMINATION

A. Introduction 1. On 2 April 2007 a massive undersea earthquake measuring 8.1 on the Richter scale triggered a tsunami that struck the islands of Gizo, Simbo, Ranongga, Rendova, Shortlands, New Georgia, Mono, Vella Lavella, Kolombangara and Choiseul in Western and Choiseul Provinces of the Solomon Islands. The force of the earthquake was such that the physical environment of the islands and reefs changed. One side of Ranongga Island lifted some 3 meters and some of the adjacent islands and reefs of Simbo and Rendova sunk, causing concern about the impact on coastal vulnerability, ground water levels, agriculture, fisheries and livelihoods. 2. All islands in the affected provinces suffered widespread damage to housing, infrastructure, schools, and medical facilities. Several villages were completely destroyed. Most people from the affected areas have been traumatized by the events and have fled to higher ground where they are being housed in makeshift camps. Health conditions in the camps are inadequate with regard to water, food, sanitation and medical support. 3. The Government formally requested ADB, on the basis of a Cabinet decision, to help coordinate the reconstruction and rehabilitation process. To assist in planning its response, ADB requires that the interventions be assessed for their possible impact on environmental values. This Summary Initial Environment Examination (SIEE) report aims to (i) describe the Solomon Islands Emergency Assistance Project (SIEAP), (ii) describe the potential environmental impacts and corresponding mitigation measures, and (iii) explain the environmental assessment and review procedures that will be adopted during project implementation. The SIEE procedure follows ADB’s Environment Policy (2002) and Environmental Assessment Guidelines (2003) as well as the Australian Government’s Environment Protection and Biodiversity Conservation (EPBC) Act.

B. Description of Project 4. The goal of the project is to restore economic and social activities and accessibility in affected areas to pre-disaster levels and increase sustainability. The purpose is to assist the government in rehabilitating damaged infrastructure and make it less vulnerable to climate change and natural hazards. The rehabilitation of damaged infrastructure is expected to restore accessibility in rural areas, allow a resumption of economic activities and social services, and safeguard public health., including: (i) approximately 35 km of rural and town roads. Road rehabilitation is expected to include reshaping and resurfacing, repair of drains, and repair of culverts and other drainage structures. (ii) About 19 rural bridges, include repair of foundations and abutments, and 35 culverts and water crossings. (iii) About five wharves and jetties. Wharf and jetty rehabilitation is expected to include repairs to above-water structures in about half the locations and complete replacement in the other half. (iv) The Gizo town water supply and sanitation system. Water supply rehabilitation is expected to include repairs to the reservoir, intake structure, pumps, and distribution system. Sanitation rehabilitation requires minor repairs.

Appendix 9 45

5. All structures will be designed with the aim of ensuring that they can withstand future high levels of seismic activities, ocean waves and adverse climatic conditions.

C. Description of the Environment

1. Physical Resources 6. Solomon Islands is an archipelago in the Southwest Pacific about 1,900 km northeast of Australia comprising some 992 islands stretching over a 1,450 km chain southeast from Papua New Guinea across the Coral Sea to Vanuatu. The terrain ranges from rugged mountainous volcanic islands to low coral atoll islands and covers a total land area of 28,370 km2 with an Exclusive Economic Zone (EEZ) of about 1.3 million km2. The six major island groups form two roughly parallel island chains, with Choiseul, Isabel, and Malaita in the northern group and New Georgia, Guadalcanal, and Makira in the south. 7. The affected islands of Western and Choiseul Provinces include Choiseul, Gizo, Kolombangara, Mono, New Georgia, Ranongga, Rendova, Shortlands, Simbo, and Vella Lavella. The large islands of Choiseul, New Georgia, Ranongga, Rendova, Kolombangara and Vella Lavella have rain-forested mountain ranges of mainly volcanic origin, deeply entrenched narrow valleys, and coastal belts fringed by reefs and lined with coconut palms. The smaller islands are low coral-based islands fringed with reefs. Western Province has an active volcano on Simbo Islands and a marine volcano known as Kavachi. The country is geologically active, and earth tremors are frequent. The previous last major earthquake recorded was in 1977 when more than 1,000 people were evacuated from the Weather Coast of Guadalcanal and resettled on West Guadalcanal in the Aruligo area. Soil quality ranges from extremely rich volcanic soils to relatively infertile limestone-derived soils. 8. The islands' ocean-equatorial climate is extremely humid throughout the year, with a mean temperature of 27°C and few extremes of temperature or weather. June through August is slightly cooler. From April to October, the southeast trade winds blow, gusting at times to over 30 knots. November to March is the wet season which is typically warmer and is accompanied by the northwest monsoon. The Solomon Islands experiences adequate rainfall throughout, with Honiara recording an annual average rainfall of 3,100 mm. Rainfall is well distributed throughout the year with the maximum and minimum monthly rainfall being 11% (Feb and March) and 6% (June) of the total annual rainfall respectively. Cyclones have been recorded in the Solomon Islands in 1986 (Namu); 1993 (Nina); 1996 (Fergus); 2003 (Zoe) which have caused loss of life and resulted in heavy economic cost.

2. Ecological Resources 9. The Solomon Islands State of the Environment (SOE) Report1 indicates that there is greater animal diversity in Solomon Islands than anywhere else in the Pacific, especially in avifauna. The plant life of the Solomon Islands also shows great diversity and endemism. Many unique species occur on only one or two islands making their populations vulnerable. 10. Western and Choiseul Provinces have two provincially designated marine protected areas or Locally Managed Marine Areas (LMMA), and the World Wide Fund for Nature’s (WWF) Gizo Marine Protected Areas. WWF also included the Western and Choiseul Provinces under its Bismack Solomon Seas Programme.

1 Leary, T. 1993. Solomon Islands State of the Environment Report. Strategic Action Programme for International Waters, South Pacific Regional Environment Programme (SPREP). Apia, Western Samoa

46 Appendix 9

3. Economic Development 11. Most of the Western and Choiseul populace live in rural areas and derive their income from a mix of subsistence and semi-commercial agricultural activities, however these two provinces also contribute to the export earning for the country from its copra, tuna cannery and logging activities. Soltai Ltd, the Solomon Islands Government and Western Province joint venture tuna fishing and cannery company at Noro, is the largest employer in the region with up to 200 personnel. Tourism, particularly diving, is also an important service industry for Western Province. However growth in tourism is hampered by lack of infrastructure and transport limitations. Much of the limited infrastructure in place has been destroyed by the earthquake and tsunami leaving even less basis for growth than before.

D. Screening of Potential Environmental Impacts and Mitigation Measures 12. The main objective of the Project is to put in place an emergency rehabilitation project to urgently restore physical infrastructure and the livelihoods of communities that have been devastated by the tsunami and earthquake. The Environmental Management and Monitoring Plan (EMMP) has been prepared so as to create awareness and provide guidance within the reconstruction teams. The adoption of the EMMP within the reconstruction process will ensure that future environmental risks are lessened. 13. The most damage was sustained on Gizo and Choiseul islands. Infrastructure damage includes: Roads and bridges: On Gizo, about 17km of road, 11 bridges and 24 cross culverts were destroyed with major scouring and wash-out of road pavement materials. On Choiseul about 23km of road in south Choiseul, 24 bridges and 24 culverts were completely destroyed. On New Georgia island, 14.5km of roads suffered major damage and 5 bridges were completely destroyed. On Kolombangara island, one bridge was destroyed and a few isolated road sections suffered major damage. On Vella Lavella island, while there has been no major damage to the road, two bridges have been completely destroyed. Wharves and jetties: Ranongga’s two wharves were totally destroyed. The earthquake lifted the island by about three meters and the formerly productive reef surrounding the island which provided the main source of sea food is exposed, and the ecosystem will take decades to re-establish. On New Georgia and Kolombangara islands, the two main wharves at Munda and Ringi Cove were completely destroyed, and the jetty at Nusa Tupe island, which provided the main link and services for tourists to Gizo has also been completely destroyed. Munda wharf which provided services to populations on the south is no longer serviceable. On Rendova, the two main wharves, Ughele and Kokelo have been completely destroyed. On Vella Lavella two main wharves servicing the north east populations at Lambulabu and Boro have also been completely destroyed. The wharf at Vonunu did not sustain any major damage but the concrete apron to the deck and the protection works to the causeway sustained major damage. On Simbo Island, the 50 m bridge connecting the road to Nusa Simbo has been completely destroyed. Simbo island has sunk by about 2 m. The wharf and the causeway at Legana Station have subsided and are under water during high tides and barely exposed during low tides. Other wharves destroyed include the Korovou and Nila wharves on Shortlands and the Falamae wharf on Mono Island. Three major wharves located in Choiseul have been totally destroyed. These include Taro, Katurasele and Posaare wharves. Water Supply: The Gizo water supply suffered extensive damage from the earthquake and tsunami. The earthquake caused ruptures and loosened joints of the water pipes,

Appendix 9 47

destabilized foundations and walls of reservoirs, intakes, and storage tanks, blocked intake sources with landslide debris and boulders, and destabilized the foundations of the pump-house. The tsunami scoured the pipe trenches eroding the beddings and broke the water pipes at several locations. 14. The project will address the repair and re-construction of physical infrastructure including: rural and town roads, bridges and culverts, wharves and jetties, and the Gizo town water supply. Reconstruction will be required for: (i) existing facilities in their present locations and (ii) where facilities are so badly damaged new facilities may be erected in the same locations, or they may be relocated. Where reconstruction activities are to be undertaken at pre- existing locations there will be few environmental concerns as the facility has an established footprint in the area and the conditions outlined within the EMMP can be applied. Where new locations are required and depending on the magnitude and the location of the facility to be reconstructed, additional environmental assessment may be necessary. 15. In designing the rehabilitation activities and in the conduct of actual construction works, local communities will be consulted and their concerns will be incorporated in the plans and programs of activities.

E. The Environmental Management and Monitoring Plan 16. Impacts have been identified for the various project activities for pre-construction, construction and operation. The activities mainly relate to design measures and construction impacts. While many different types of infrastructure reconstruction will be addressed by the project, the activities that have been identified within the SIEE and EMMP are considered representative of the expected range of activities. Within the EMMP, mitigation and monitoring measures are developed for each activity and responsibilities allocated for these. The EMMP is described in the following sections for the activities according to pre-construction, construction and operation. A matrix of the EMMP is attached as Table A9.1.

1. Pre-construction 17. Pre-construction activities address design and planning issues and include (i) siting of infrastructure, (ii) land and property acquisition (when necessary) and social concerns, (iii) sourcing construction materials, and (iv) inclusion of seismic risk and projected climate change in the design. These issues will be transferred to a design brief which identifies the Design Engineer as being responsible for addressing these issues. All of these issues will need to be addressed before reconstruction activities commence: Sourcing construction materials: Sources of rock, gravel and sand will be required for reconstruction activities. Where existing sources are available with some form of proxy approval, they can be used. Where new extraction sites are to be opened, approval will need to be obtained from the relevant authority or landowner. Compensation will be payable for any new material sites that are located on private land. Selection and approval of quarries and borrow pits will be the responsibility of the Design Engineer with assistance from the EMC. Ensuring operation follows approved quarries plans will be the responsibility of the Supervising Engineer. Inclusion of seismic risk in design: Assessment of the seismic risk and inclusion within the design will be addressed by the Design Engineer. Inclusion of climate proofing in design: Climate change is expected to increase extreme weather events, in particular intense rainfall and wave surges, and to cause sea level rise. While climate change influenced design criteria are not available for the Solomon Islands the methodology to incorporate climate proofing within design is detailed in an

48 Appendix 9

ADB publication.2 The Design Engineer will be responsible for incorporating climate change requirements within the structural designs.

2. Construction 18. Construction related activities include (i) removal and disposal of debris, (ii) controlling erosion and sediment movement, runoff and storm water, (iii) excavation of sites and management of spoil and stockpiles, (iv) storage and handling of materials including fuel and lubricants, (v) siting and management of construction camps, (vi) noise and dust from construction activities, (vii) worker and local community health and safety, (viii) vehicle and machinery hazards to communities and other road users, (ix) solid and liquid waste management, and (x) rehabilitation and closing of construction sites. Re-construction impacts will be short term and can be readily mitigated by addressing the EMMP requirements. The overall responsibility for the completion of the work and direction of the contractor or labor to meet the EMMP requirements will be the responsibility of the Project Supervising Engineer (SE) who will be supported by the Environment Management Consultant (EMC).

3. Operation 19. The only issue that has been identified for operation is to ensure that the infrastructure is now adequately maintained. Maintenance will be supported by an adequate budget allocation and the development of awareness within the responsible ministry to undertake this on a timely basis. Maintenance will be undertaken by community groups who could do this under the direction of local government councils.

F. Institutional Requirements and Environmental Monitoring 20. The Environment Act of 1998 defines the responsibilities of the Environment and Conservation Division and establishes a framework for environmental assessment. The principal national government agency charged with environmental policy, management and monitoring responsibilities is the Department of Environment and Conservation (DEC) of the Ministry of Natural Resources. However the capacity for project environmental management is being built within the MID and particularly in this situation, which is one of emergency relief, the Solomon Islands Government will allow the requirements of the IEE to be used as the basis for establishing environmental compliance. 21. In the event that a subproject design undergoes changes following the approval of the SIEE and the new design has elements that impinge on the environmental impacts identified and addressed in the original SIEE/EMMP, or introduces new potential environment impacts, the SIEE/EMMP must be revised and be subjected to reapproval, to address these new impacts. 22. The National Disaster Management Office (NDMO) will be the implementing agency for the Project. A Project Management Unit (PMU) will be created within the NDMO to administer and coordinate daily activities of the project. An Environment Management Consultant (EMC) will be appointed to the PMU who will report to the PM and will organize the implementation of the EMMP together with the Supervising Engineer (SE).

2 ADB. 2005. Climate Proofing A Risk Based Approach to Adaptation, Pacific Studies Series, Manila

Appendix 9 49

G. Public Information and Information Disclosure 23. A second ADB and MID engineers team, together with an environmental consultant as well as a social and poverty impact assessor have evaluated these damaged areas and determined the initial reconstruction requirements. Further consultations were held with national and provincial government officials as well as the communities of the affected areas. 24. Public consultation will be an essential part of the relief effort so as to ensure that the community requirements are being addressed within the project design and reconstruction activities. Public consultation will be undertaken by the NDC with support from the PMU so as to allow the community to identify with the reconstruction process.

H. Findings, Recommendations, and Conclusion 25. The activities outlined in the project are mainly clean up, repair and rehabilitation of damaged infrastructure along narrow infrastructure corridors. These activities are expected to have no significant negative impacts on the environment, and mitigating measures can be put in place. 26. The activities identified in the EMMP will allow damaged infrastructure to be repaired and reconstructed providing it is not located within any environmentally sensitive area. The EMMP provides realizable mitigation measures that are Best Construction Practices and that will enhance the environmental sustainability of the relief operation. Compliance monitoring of the mitigation measures will be the responsibility of the Site Engineer who will be supported in this role by an Environment Management Consultant. 27. It is recommended that the project proceeds as planned and that the mitigating and monitoring measures that have been identified within the EMMP are implemented during the pre-construction, operation and maintenance phases of the project’s implementation by incorporation into contracts of services. Based on the IEE findings it is concluded that there are no outstanding environmental issues remaining and no further environmental assessment is required for the project. If any work is required within environmentally sensitive areas these activities will need to be assessed according to ADB environmental safeguards.

50 Table A9.1: ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN

Appendix 9 Appendix IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring Activity Environmental Responsibility Cost be monitored and means of responsibility Cost Impact Verification PRE-CONSTRUCTION Siting of re- Intrusion into a. Evaluate all reconstruction sites for a. EMC and Included as Location of a. Once, verify EMC and Cost constructed environmentally EMC to identify natural areas, Design part of infrastructure design. Project included in infrastructure sensitive areas especially environmentally sensitive Engineer project facility with Engineer project b. Design is to (forests, or ecologically fragile areas. design cost regard to design b, c, d, and e: address any wetlands, presence of budget b. Locate optional construction Contractor other marine sensitive areas sites/activities away from sensitive comments environments areas. received from and protected public areas), need to c. Ensure construction personnel are consultation. minimise aware of locations of sensitive areas negative and keep out of them. impacts on sensitive d. If the proposed construction must ecosystems or encroach onto or pass close to the natural sensitive areas, construct temporary environment fences or permanent bunds or trenches to confine machines and activities. e. Use geotextiles or matting to minimise construction impacts in wetlands Land Loss of a. Compensation to be paid for loss a. LARP Team If required Monthly LARP Outlined in NGO Cost to be acquisition (if livelihood from of land (if any) as outlined in the to be report or EMC LARP organisation (if determined b to h: Design property is to acquisition of LARP. determined reports procedures necessary) in hiring Engineer and be acquired) private land and NGO b. Advise the local men and women Contractor and property; and of the project plans in advance of accounting for avoidance of construction, and where possible social or social involve them in planning. community disturbance to maximise c. Avoid disturbances near living

e. Control runoff and manage sediments near garden areas. f. Arrange for local people to be employed and trained as part of the project. g. Include women’s and other community groups in project activities. h. Negotiate with the community about disposal areas and stockpiles. Acceptance Regular tidal or a. For infrastructure planned to last Design Included as Final site plans Once, verify in EMC and Cost by planners extreme storm ~50 years, take a conservative Engineer part of design Project included in that sea surge impacts approach and plan for a sea level project Engineer project levels will will damage ~500mm above 2005 level. design cost design rise, storm infrastructure re- budget b. Where construction in immediate surges will be located close to coastal zone is unavoidable, plan for more extreme shoreline structures that can be replaced readily if damaged by wave action. Sourcing If poorly located a. Determine suitable sites during a, b, c and d: Included as Environmental Once, verify EMC and Cost construction sites are opened planning. EMC and part of suitability of locations in Project included in materials, results in long- Design project raw material design. Engineer project b. If sites are accessible materials are sand, rock term loss of Engineer design cost sites design to be drawn from approved sites. Rehabilitation and gravel environmental budget 9 Appendix Otherwise extraction sites will need to plan prepared resources. be verified. (forests, agricultural c. For new extraction areas, prepare areas, rivers, quarry management plans using the wetlands and 51

52 IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring

Activity Environmental Responsibility Cost be monitored and means of responsibility 9 Appendix Cost Impact Verification marine following guide:

environments) For solid rock quarries identify The proposed plan of extraction The methods which will be used for containment (of sediment-loaded runoff and contaminants) at the site Safety measures which will be employed to avoid any loss of load from trucks Methods which will be employed to reduce dust emission from the loads Number and timing of truck trips to and from the quarry site Safety methods which will be put in place to reduce potential road accidents in village or urban areas Safety measures which will be employed to ensure stability of exposed faces or overburden stockpiles Plans to rehabilitate or (re)vegetate the site after use, to reduce visual impacts and sediment runoff Limestone quarries present additional potential problems associated with karst drainage, and the likely presence of human burials (ossuaries in caves or crevices) and cave-bats. Quarry plans in such areas should

Additionally, for floodplain gravel quarries the quarry management plans should address: The areas to be quarried and the removal sequence The channel and bank stability in the area to be quarried Methods which will be established to protect the channel banks, to avoid causing discontinuities in the bed, and to minimise erosional impacts upstream, and sediment loading

problems downstream of the quarry 9 Appendix site Methods for containing oil leaks or spillages to prevent pollutants reaching the river 53

54 IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring

Activity Environmental Responsibility Cost be monitored and means of responsibility 9 Appendix Cost Impact Verification d. Prepare Rehabilitation Plan

Inclusion of Unexpected and Ensure established seismic design Design Project Structural and Once, verify Project Cost seismic costly failure of criteria is incorporated in design. Engineer and design cost location design structural and Engineer and included in strength infrastructure; drawings location EMC project EMC factors in roads, wharves design. design design and water budget supply systems CONSTRUCTION Removal and Improper a. Debris to be dumped in land fill a, b and c: Costed by Verify dump Once, verify Supervising Cost disposal of dumping leading sites to be approved by EMC. Contractor contractor site meets locations for Engineer and included in debris to loss of and cost environmental non- EMC PMU b. Contaminated material disposed of environmental carried into criteria. contaminated manageme separately resources and contract and nt budget human c. Sites to be closed and rehabilitated contaminated livelihoods. materials

Reducing In wet conditions a. Limit size of disturbed areas and a to g: Costed by Spot checks Contractor, Cost erosion at sediment can be plan work so that excavation is Contractor contractor and weekly included in Supervising excavation lost from the site completed quickly within waterways and cost inspections of PMU Engineer and and on land. carried into construction manageme construction contract sites and EMC nt budget b. Reduce the time surfaces remain sites bare. Keep vegetation clearing to a minimum. Avoid disturbance on steep slopes. c. plan drainage to control soil

Controlling Stormwater a. Install control structures at the a to h: Costed by Spot checks Cost sediment at containing outset of construction. These may Contractor contractor and weekly included in any sediment can need to include silt traps along flow and cost inspections of PMU operational have a negative lines. carried into construction manageme sites impact on contract sites. nt budget b. (Re)vegetate or prepare for natural streams and revegetation all disturbed areas not to coastal systems be paved (eg batters) after final land shaping. c. Phase ground disturbance so that it is limited to areas of a workable size. d. Schedule construction so that large areas of soil are not laid bare during wet seasons. e. Place construction sites on flat ground. Appendix 9 Appendix f. Contain construction areas by using a bund or trench, or isolate the areas from other surface runoff, and clean and rehabilitate them when construction is complete. 55

56 IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring

Activity Environmental Responsibility Cost be monitored and means of responsibility 9 Appendix Cost Impact Verification g. If the road is on loose or unstable

rock, gently slope the batters, provide steps or horizontal benches for high batters, and (re)vegetate where necessary. h. Avoid discharging water onto unstable slopes or old landslips. Managing Contaminated a. Have prior agreement with local a to e: Costed by Spot checks Cost runoff water runoff water can landowners for accessing/abstracting Contractor contractor and weekly included in and harm any water to be used. and cost inspections of PMU controlling ecosystems and carried into construction manageme b. Divert (temporarily) runoff from stormwater cause contract sites. nt budget non-construction areas around the inconvenience construction areas to keep natural to local flow separate from construction communities runoff. c. Pass stormwater runoff from construction areas through a gross pollutant trap (to filter plastics, cans, etc) and over a vegetated surface to remove petroleum-based organic pollutants before discharging it into culverts or drainage systems. d. Design drains and culverts to remove all runoff water without scour. If necessary, step drains on steep slopes using rock slabs or gravel in gabion baskets. e. Store oil and bituminous products at a contained location away from drainage lines and in an appropriate manner.

IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring Activity Environmental Responsibility Cost be monitored and means of responsibility Cost Impact Verification Removal and a. Sediment a. In areas close to water courses a to i: Costed by a and b. a, b, c and d, Contractor, Cost disposal of arising from use soil conservation technology to Contractor contractor excavated sites Spot checks included in Supervising waste (spoil) construction control sediment . and cost stabilized. and weekly PMU Engineer for; roads, sites entering carried into inspections of manageme b. Hold discussions about dumping c. water quality bridges and water courses contract construction and EMC nt budget with local landowners. maintained culverts, and marine sites. wharves and environments. c. Ensure site plans include all d. Sites jetties, drainage provisions suggested for revegetated b. Possible trenches and construction sites. and presence introduction of water of invasive invasive d. Choose the stockpile or spoilheap systems species species. location to avoid blocking surface runoff or drainage lines. If the site is not a ridgecrest or flat plain, level and contain the base. e. Cover the spoilheap or stockpile containing fine sediments if it is to remain bare for long in a high rainfall area in order to prevent erosion and sediment runoff. f. Subject spoilheaps and stockpiles to stability calculations to safeguard against major slippage. g. Revegetate bare areas as quickly as possible to reduce erosion and avoid invasive species establishing. h. Discuss with local landowners or community groups whether they can or want to use spoil locally. If they do, 9 Appendix ensure that a clear level site is prepared on which the spoil can be dumped. i. Where possible, use spoil to backfill 57

58 IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring

Activity Environmental Responsibility Cost be monitored and means of responsibility 9 Appendix Cost Impact Verification quarry areas or waste disposal pits

before they are vegetated. Storage and Contamination a. Prepare material storage areas a, to e: Costed by Fuel and a. Verify fuel Contractor, Cost handling of of soil and water with impermeable bases and suitable Contractor contractor lubricant storage areas Supervising included in construction resources bund drainage. and cost storage and Engineer (SE) PMU b. At start then materials, fuel carried into handling manageme b. Bund fuel tank storages to 110% of spot checks as and EMC and lubricants contract procedures nt budget tank capacity required implemented b. Refuel vehicles and equipment 20 m away from water courses c. Dispose of used oil and oil filters to meet accepted industry procedures, or by using crush-burn and bury process where no waste disposal facility is available. d. Prepare an accidental spill handling action plan e. Have appropriate spill clean-up equipment available. Siting and a. Loss of a. Recruit local labor so as to avoid a to f Costed by a. local people a. Camp sites Contractor, Cost management environmental bringing in workers from outside Contractor contractor preferentially verified before Supervising included in of resources areas. and cost employed erection. Engineer (SE) PMU construction carried into manageme b. Worker health b. No camps to be constructed within b. camp b. At start and and EMC camps contract nt budget and the 3 km of forest areas, or within 50m of location then spot maintenance of wetlands, reefs, beaches. checks as c. provision of environmental required. c. Camps to be provided with suitable potable water, health accommodation, potable water, sanitation and c. On closure c. Pollution of sanitation and waste handling waste facilities of camp and fresh and facilities to meet MoH before final marine water standards. contract d. Dispose of sewage into hygienic pit and soil though payment made latrines or into a septic tank system. d. area

IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring Activity Environmental Responsibility Cost be monitored and means of responsibility Cost Impact Verification sewage and In low-lying areas, to ensure that no rehabilitated waste disposal sewerage pollution of the local groundwater occurs, elevate the latrine areas and construct them on and drain septic effluent into a mound of sandy sediment that may need to be built up for this purpose. e. Dispose of solid waste in a 'sanitary landfill' area, ensuring (if no well-managed local facility is available) the process involves three stages: (i) burning non-recyclable wastes in a well-aerated incinerator that should be installed at the construction camp site, (ii) crushing all unburned residues, (iii) burying the crushed residues in a pit dug to avoid contamination of the watertable and covered regularly with a veneer of sediment. f. When finished camps to be closed and rehabilitated Noise from a. Nuisance to a. Use modern and well-maintained a to e: Costed by Workers and Spot checks Contractor, Cost 9 Appendix construction surrounding equipment fitted with approved sound Contractor contractor communities and monthly Supervising included in equipment; communities suppression equipment and cost satisfied with inspections: Engineer (SE) PMU e.g. air carried into conditions for: a. Noise manageme b. Workplace b. Use noise screens or mounds near and EMC compressors contract nt budget b. hearing 59

60 IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring

Activity Environmental Responsibility Cost be monitored and means of responsibility 9 Appendix Cost Impact Verification and pile hazard residential areas. protection

driving c. Operators provided with ear machines protection d. Limit activities to daylight hours e. Advise local people when there will be blasting or unusual, unavoidable noise. Dust a. workplace a. Contractor to include water tanker a, b, c and d: Costed by Water tanker Spot checks Contractor, Cost hazard in List of Equipment to be brought to Contractor contractor provided. and monthly Supervising included in site. and cost inspections Engineer (SE) PMU b. community Contractor’s carried into manageme hazard from b. Contractor to spray water on Dust Spraying and EMC contract nt budget haul traffic exposed surfaces of work areas and record roads as required during dry periods. c. health risks or inconvenience c.Contractor to Install wind breaks or due to dust fences around mixing/batching plants. production d. Contractor to wet quarry loads or road-fill loads being carried in open trucks. Worker and Accidents and a. Contractor to implement workplace a to f: Costed by Inspection and Spot checks Contractor, Cost local loss of worker safety awareness program. Contractor contractor verified by and monthly Supervising included in community productivity and cost Contractor’s inspections Engineer (SE) PMU b. Ensure all occupational health and health and carried into Labour manageme Need to ensure safety requirements are in place on and EMC Safety contract Accident nt budget maximum safety construction sites and in work camps. Report of construction c. Workers to be provided with safety personnel and equipment and instructed in its use. local residents d. Establish a project hazard reduction plan. e. Install cautionary signs in

Solid and Soil and water a. All solid and liquid wastes to be a to g: Costed by Visual Spot checks Contractor, Cost liquid waste pollution from disposed of to meet Removal and contractor inspection of and monthly Supervising included in Contractor management solid wastes and Disposal of Debris criteria. cost carried work sites inspections Engineer (SE) PMU sewage into manageme b. Contain all stores waste within Local and EMC contract nt budget construction sites. community complaints of c. During site clean-up, burn all exposed spilled fuel oils. rubbish or d. Crush, burn and bury all inorganic leachate solid waste, including paper used in seeping from bitumen spraying, in an approved pits disposal area or a pit sited above the watertable, prepared for this purpose. Appendix 9 Appendix e. Remove all disabled machinery from the project area. f. Use above-watertable pit latrines or composting toilets at residential 61

62 IMPACT MITIGATION IMPACT MONITORING Project Potential Proposed Mitigation Measure Implementing Mitigation Parameter to Frequency Monitoring Monitoring

Activity Environmental Responsibility Cost be monitored and means of responsibility 9 Appendix Cost Impact Verification construction sites.

g. Compost or use as animal food all green or organic waste. Rehabilitation Impairment of a. Remove all waste and a, b and c: Costed by Sites closed Following Contractor, Cost and closing environmental contaminated soil contractor according to completion of Supervising included in Contractor construction resources, cost carried requirements work. Before Engineer (SE) PMU b. Restore sites by replacing topsoil sites aesthetics and into final payment manageme and raking or loosening all Local and EMC community contract nt budget compacted ground surfaces, or re- community safety mean shaping batters and road margins reports of need to concerns minimise c. Revegetate area by establishing a ongoing impacts site (re)vegetation plan, engaging after where possible local women’s groups construction is to provide materials and implement completed (re)vegetation. The vegetation plan should include: name(s) of landowner or community group summary discussions / decisions on what will be planted a list of stock to be provided, by whom, agreed price agreement for planting / tending. OPERATION Regular Early failure of a. Arrange budgets for maintenance Responsible Responsibl Reconstructed Six monthly. Line Agencies Line maintenance infrastructure Line agencies e Line facilities Infrastructure agencies b. Arrange maintenance contracts of leading to more agencies maintained and meets cost with local communities infrastructure costly operate as operating replacement expected requirements

EMC = Environment Management Consultant, located within the PMU PMU = Project Management Unit; LARP = Land Acquisition and Resettlement Plan; SE = Supervising Engineer (owner’s engineer, located within PMU)

Appendix 10 63

GUIDELINES FOR PROJECT PERFORMANCE MONITORING INDICATORS

1. A project performance and monitoring system will be established within 3 months of grant effectiveness. Performance indicators to be monitored before, during, and after construction should include those for (i) economic development, (ii) transport sector performance, (iii) socioeconomic development, (iv) environmental impacts, and (v) maintenance. Based on these guidelines the Executing Agency (EA) and the Project Management and Capacity Building Unit (PMCBU) will develop quantitative indicators for monitoring and evaluating project performance in relation to its goals and purposes before project commencement, and will refine these indicators during project implementation. 2. Baseline data for these indicators, which will be collected during the subproject feasibility analysis, will be monitored after subproject completion. Some baseline data might become available from two national surveys—of household income and expenditure, and of demographics and health—to be conducted in 2006–2007. Monitoring and evaluation will be based on gender-disaggregated data where feasible. The PMCBU will monitor and evaluate progress on these indicators annually, and provide a final report within 6 months of the end of the contract.

A. Economic Development 3. Improved accessibility is expected to increase output volume and prices of agricultural commodities in the subproject areas. Baseline data on the production and prices of copra, cocoa, and market produce should be collected and updated. 4. Baseline data on formal and informal employment, disaggregated by sector or activity, should be collected and updated. During and after rehabilitation, data should be kept on the amount of employment created in rehabilitation and regular maintenance. 5. Indicators for annual household income and sources of income should be developed, baseline data collected, and updated annually. The percentage of poverty or hardship of the population or households in the project area also should be estimated.

B. Transport Sector Performance 6. Subproject feasibility studies will document the conditions of roads, and measure and forecast a range of technical performance indicators (Table A10.1). Appropriate indicators should be developed for rural conditions, which can be used during feasibility surveys, updated after rehabilitation, and monitored before and after annual maintenance. In addition, because transport demand is linked to gross domestic product (GDP), the real annual GDP growth rates for the country (and for the provinces, where available) should be reported with the results.

Table A10.1: Transport Sector Performance Indicators

Item Indicators Remarks Condition • Roughness • Poor/fair/good • Accessibility • All weather/seasonal Performance • Traffic volumes • AADT • Traffic growth • % per year • Travel times to key destinations • Average

64 Appendix 10

Item Indicators Remarks • Vehicle ownership • By vehicle type • Frequency of public transport services • Number per day • Cost of passenger transport services • SBD per kilometer • Cost of freight transport services • SBD per kilometer • Accident rates • Number per year AADT = average annual daily traffic, SBD – Solomon Islands dollar. Source: Asian Development Bank.

C. Socioeconomic Development 7. Indicators should be developed on access to social services, including school enrollment, visits to health facilities, and visits to government centers. 8. In addition to the economic development indicators specified above, information on gender-specific impacts of the Project should be developed, including increased employment and income for women and youth.

D. Environmental Impacts 9. The summary initial environmental examination for the Project includes environmental management plans that identify specific environmental impacts that must be monitored during and after rehabilitation.

E. Road Maintenance Inputs 10. All road maintenance work, including routine and periodic work carried out by traditional and labor-based equipment supported methods, should be recorded, including (i) nature of the work; (ii) physical quantities of work performed; (iii) cost of the work; (iv) form of execution (by direct labor, small contract, or large contractor); and (v) location and extent of the work.

Appendix 11 65

RESETTLEMENT FRAMEWORK

A. Project Background

1. The Project will rehabilitate infrastructure that was damaged by the 2 April 2007 earthquake and tsunami in Choiseul and Western provinces, including (i) approximately 35 kilometers of rural and town roads, along with about 19 bridges and 35 culverts, (ii) about four wharves and one jetty, and (iii) the Gizo town water supply and sanitation system. The Project will be implemented via a sector approach. 2. All civil works are expected to be conducted on existing facilities within existing rights of way, therefore they will most likely not require land acquisition or involuntary resettlement. However it is possible that construction clearing to original designs and minor realignments necessitated by disaster damage could cause resettlement impacts. Therefore, this framework provides a screening mechanism, which will identify possible resettlement impacts for each rehabilitation activity before the commencement of civil works, and provides guidelines on how to address them if they occur. In any case, the number of potentially affected households is small and within the category of “insignificant resettlement impacts” under ADB’s policy on Involuntary Resettlement (1995). 3. In the rare event that an activity requires physical or economic displacement, Resettlement Plans (RP) will be prepared. This Resettlement Framework (RF) outlines the resettlement policy principles, procedures, and institutional arrangements to ensure that if resettlement needs are identified, the project Executing Agency (EA) follows the procedures for involuntary resettlement in compliance with the Government’s applicable laws and regulations, and ADB’s policy on Involuntary Resettlement (1995) and Handbook on Resettlement (1998), and the agreed resettlement framework for the Project.

B. Land Tenure and Management

4. Traditional land and resource management in Solomon Islands is community based. Some 87 per cent of land is under customary resource tenure and all natural resources i.e. forests, minerals, reefs, and islets belong to customary land owners.1 The remaining land, including that of Gizo town, is considered “alienated” and is subject to registration under the Land and Titles Act 1988. The Act covers customary land rights which includes land owned, used or occupied by a person or community in accordance with current customary usage. 5. Access to land and resources is bound in social relationships and expressed as “rights” to exploit resources. Small kin-ship based groups living in villages manage their own resources and exercise the right to exploit them. The clan or kin group, known as a ‘line’, is made up of “primary right holders” - the leaders of the clan or group - who collectively have the authority to allocate use rights through the spokesman of the line. The rest of the line holds “secondary” rights. Such rights may be inherited or gained through marriage to a primary rights holder. The transfer of rights differ with custom from island to island, some islands (Guadalcanal, Central and Western provinces) typically practice matrilineal inheritance and the remaining provinces practice patrilineal inheritance.2

1 Exemptions being the lands of the federal capital area (Honiara) and provincial headquarters. 2 A small area on Guadalcanal – Marau – practices patrilineal inheritance due to influence of customs of Malaita through Malaitans which have relocated to Guadalcanal.

66 Appendix 11

6. Acquisition of customary land is usually only undertaken for non-public works such as gold mines, oil palm plantations, or hotels. For public works requiring location on customary land, MID, Solomon Islands Electricity Authority, and Solomon Islands Water Authority (SIWA) typically consult with the members of a line and any other person who claims an interest in the land. For public works the land is not acquired as such, it is gifted or contributed following an extensive period of consultation and agreement through signing of a Memorandum of Understanding (MOU). The MOU waives the customary interest in the land in lieu of the public infrastructure (wharves, roads, schools, clinics and other public utilities). 7. A recent exception is the land set aside for the Koguli Reservoir in Honiara, which has been leased by SIWA from the customary land owners. Other exceptions are projects funded through international aid assistance where the donor agency has insisted on registration of the land, which in effect alienates the land from customary ownership and must go through both a customary process for identifying those with an interest in the land as well as the process established in the Land and Titles Act. This process involves:

• Commissioner of Lands or Provincial Secretary appointing an Acquisition Officer; • The Acquisition Officer, who has the power of a Magistrate, after a series of meetings and hearings, identifies a group of trustees (of between two and five people) who will represent the line in the acquisition process; • A notice is published specifying the date of the next hearing and listing the people initially identified as trustees; • Following the hearing, a second notice is published and posted in public places nominating the trustees. The notification process is three months during which time appeals as to the nomination of trustees can be made; • If there is an appeal, adjudication can be a two step process (as described in Item C. below); • If there are no appeals as to the trustees, the area is surveyed and a Land Officer prepares a valuation report and certificate. Discussions are held with the trustees about whether the transaction will be through lease arrangements or complete acquisition, as well as initial discussions about the price; • Final negotiations are held with the trustees based on the valuation report and their own determination of the price for the land; • According to the Act, agreement to the compensation award must be obtained from the “majority” of persons with an interest in the land; and • Following agreement on the price the payment is made, a one-off payment (known as the premium) for acquired land or a premium plus rent for leased land. The Lands and Titles Act specified the term of a lease as 33 years unless an alternative agreement is reached. • Acquisition of alienated land follows the procedure for acquiring alienated or registered land established in the Land and Titles Act. The process is more straight- forward than that of dealing with customary land. This process is essentially a transaction between the Commissioner of Lands, through an Acquisition Officer and Valuation Officer and the land-owner.

Appendix 11 67

C. Resolving Disputes over Land Ownership

8. Any disputes arising over alienated land, usually in relation to compensation as ownership is clear, are referred to the Magistrates Court and follow the procedure set out in the Land and Titles Act and civil code. 9. For disputes over customary land, there is a two-step process; (i) the civil procedure through the Magistrates Court, and (ii) the customary procedure. 10. The hearing in the Magistrates Court will determine whether the case can be dealt with through civil proceedings or whether the case is better handled through the customary process. 11. The customary process starts with Chief Hearings, proceeds to the Local Court if not settled, and if still not resolved after is presented as a case before the Customary Land Appeal Court (CLAC), which usually settles the case. In the event that the appellant is not satisfied with the ruling of the CLAC, appeals may be brought before the High Court but only on points of law rather than disputes about ownership. In some cases the CLAC will refer the case back to the Chief Hearings where the CLAC is of the view that the Chiefs can adequately determine genealogy and therefore ownership of, or interest in, the land under dispute.

D. Policy Framework and Entitlements

12. As noted above the current legislation governing land acquisition for public or development purposes is the Land and Titles Act. Sections 71 through 85 of the Act deal with land acquisition for public purposes and sections 184 through 190 set out the requirements for public rights-of-way. 13. The legislation does not cover project-affected people without titles or ownership records, such as informal settlers/squatters (non-titled APs), while they are covered under ADB’s policy. 14. The Act provides for compensation to be paid (i) in the form of rental for any land used or occupied on a temporary basis or (ii) for permanent acquisition of the land. Compensation is assessed on such things as the condition of the land, use of the land and impact on the value of contiguous land, and while the Act includes a provision for interest to be paid it is not free of taxes or other deductions and does not necessarily constitute market or replacement value, as required under ADB’s policy. 15. Furthermore, the legislation does not take account of the social and economic consequence in terms of restoration of livelihoods and incomes. Thus, owing to the absence of a policy consistent with ADB’s Policy on Involuntary Resettlement and poverty reduction, the provisions in this project-specific RF will be adopted. The RF and resettlement procedural guideline stipulations contained in this document will apply to all subprojects to be prepared and approved under the Project. 16. The RF reflects the Government’s land acquisition laws/regulations and ADB’s policy on involuntary resettlement and guidelines. It stipulates eligibility and provisions for compensating all types of losses (land, crops/trees, structures, business/employment, workdays/wages and access to assets). All affected people (APs) and households, including non-titled or informal dwellers, will be compensated for lost assets (crops, structures, trees) and will receive (i) compensation at replacement value in cash or kind , and (ii) other resettlement assistance such as shifting allowance, assistance to rebuild structures and compensation for loss of workdays/income due to dislocation. Lost livelihoods and incomes will be replaced by new incomes sources and livelihoods, which ensure that the living conditions of the affected people

68 Appendix 11 are equal or higher the pre-project levels. Titled APs will receive compensation for land acquired by the project at replacement cost, this will be in cash at replacement value or land-for-land (of equal size and/or productive value and be satisfactory to the AP). Non-titled APs are not eligible for compensation for land but will receive compensation for assets attached to land and other assistance as required (especially in the case of poor or vulnerable APs) and will be assisted to have a legal and affordable access to land (through leasing agreements etc.). Households headed by women and other vulnerable households such as those with handicapped and elderly people will be eligible for further assistance to fully mitigate project impacts. Table 1 below presents the project’s entitlement matrix, based on potential losses. Table 1 - Entitlement Matrix Type of Loss Application Definition of Entitlement Expected People Affected Results Loss of land Land on the project Legal owner(s) of Cash compensation under Compensation of right-of-way to be land, customary land law with additional grants to the value of the acquired meet the replacement value land to the people affected Loss of access to Agricultural and Legal tenants of land Cash grant for portion of Livelihood land commercial plots on (renters, land sharecropped restoration the project right-of- leaseholders, according to sharecropping way sharecroppers) agreement; Cash grant for portion of land rented according to rental agreement; Assistance in locating other suitable land for cultivation and assistance in gaining title to that land

Loss of access to Agricultural and Non-titled land users Assistance in locating other Livelihood land commercial plots on (informal and suitable land for cultivation restoration the project right-of- squatters) and assistance in gaining way title to that land Loss of trees, crops, Standing crops, Legal owner(s) of Compensation at scheduled Compensation for perennials trees on the right-of- land and owners of rate by the Forest Division standing crops way crops or trees for timber trees and the and trees to (whether having Department of Agriculture ensure income legal or customary for crops with additional restoration title to land or not) grants to enable them to buy trees, etc. of equal or higher quality Partial or total Structures All APs (whether Compensation for affected Restoration of removal of structure (residential or having legal title to structures at replacement dwelling and/or (house or commercial) in right- land or not) value without deductions for commercial commercial of-way salvaged materials; and structure structure) assistance in locating suitable alternative housing or commercial building; Shifting allowance for relocating household or business goods and support while re-establishes Affected vulnerable Vulnerable Vulnerable Additional cash grant to Livelihood households households on the households head of affected households restoration and right-of-way (both identified by social poverty reduction titled and non-titled) assessment Employment in the project measures and (households headed construction work, if

Appendix 11 69

Type of Loss Application Definition of Entitlement Expected People Affected Results by women, elderly, available development disabled, poor households) and severe affected households (losing 10% or more of their productive land or agriculture income) Displacement of Community structure Community Replacement as agreed with Restoration of community structure on the project right- representatives as community or cash community of-way, if removed identified by the compensation under law structure for project interest social impact with additional grants as assessment required to meet for common replacement value without benefits deductions for any materials salvaged Assistance with dismantling and reconstructing structure or property Unforeseen or Any impact identified Concerned affected Determined as per the spirit No impact is left unintended impacts at the final design people of this resettlement unmitigated. stage framework

E. Screening of subprojects

17. Subproject screening is used to identify the types and nature of potential impacts related to the activities proposed under the Project, and to provide adequate measures to address these impacts which ensure that potential APs are: • Informed about their options and rights pertaining to resettlement; • Included in the consultation process and given the opportunity to participate in the selection of technically and economically feasible alternatives; and • Provided with prompt and effective compensation at full replacement cost for losses of land, assets and access to assets and livelihoods attributable to the subproject(s). 18. On the basis of the screening, the EA proposes which of the following option should be put in place: • an option assessment of alternative subproject designs in view to avoid and/or reduce displacement risks; • the elaboration of an RP to address all resettlement risks (see draft terms of reference in Annex C); • For projects not anticipated to result in displacement, and where loss of assets are anticipated to be negligible, then this information shall also be indicated in the subproject application form along with a request to waive the requirement for a RP. 19. The screening process is described in annex A. It is based on the screening checklist (Annex B), which will be completed by the PMCBU. The screening form will be approved by ADB, which will advise whether an additional assessment should be done to avoid or reduce the physical or economic displacement or whether the argument of the subproject proposal provides sufficient evidence for the decision proposed and confirm the best course of action.

70 Appendix 11

F. Procedure for Resettlement Plan Preparation

20. If the screening identifies possible resettlement impacts, a Resettlement Plan (RP) will be prepared in accordance with ADB’s Policy on Involuntary Resettlement (1995) and the Handbook on Resettlement (1998) and in close collaboration with those affected. The RP must comply with ADB’s policy on involuntary resettlement and other social safeguard policies (such as its policy on indigenous peoples) and establish a safety net mechanism and assist in the identification of appropriate livelihood restoration measures. Detailed terms of reference (based on the draft in Annex C), approved by ADB, will be given to the consultants to ensure that RPs meet ADB’s policy requirements. RPs will be reviewed by the EA and submitted to ADB for review and approval. 21. If impacts on indigenous people are identified, and these impacts are likely to be significant, then either a specific action will need to be included in the RP or a stand-alone indigenous peoples development plan (IPDP) must be prepared according to ADB’s Policy on Indigenous Peoples (1998). In the event that an IPDP is required detailed TOR, approved by ADB, will be given to the consultants to ensure that the IPDP meets ADB’s policy requirements. The IPDP will be reviewed by the EA and submitted to ADB for review and approval. 22. For subprojects, the EAs will carry out social impact assessment surveys (census and 20% socioeconomic survey of those affected), based on preliminary technical designs. An inventory of losses (IOL) will be completed for all APs losing land or assets to the Project. The RP will also include measures to ensure that socioeconomic conditions, needs, and priorities of women are identified, and to ensure that land acquisition and resettlement does not disadvantage women. Consultants preparing the RPs must be familiar with ADB’s requirements and have a track record of preparing satisfactory RPs. 23. The RP will include a budget for RP implementation identifying where the funds will come from and an implementation schedule linked with the civil works. Construction civil works will not commence until compensation has been paid to APs (see paragraph 24 below). Compensation will be determined based on published rates from relevant government agencies (as set out in Item G) with additional grants as required to ensure compensation at replacement value and livelihood restoration.

G. Institutional Responsibilities

24. The Ministry of Infrastructure Development, as EA of the Project, will implement any required land acquisition and resettlement program with the assistance of the Project Management and Capacity Building Unit (PMCBU) for the Project. The EA will undertake a land acquisition survey, census, and the IOL survey, and prepare the RP and proposals for land acquisition with the help of a qualified social scientist. During the process, the EA will ensure that entitlements and mitigation measures are established in the RP consistent with this RF; and suitable budgetary provisions are made for timely RP implementation. The EA will also ensure that the RP is submitted to ADB for approval, and that funds for entitlements under the RP are fully provided by the Government to people affected prior to the award of the civil work contract and before acquiring any land, changing land use patterns or restricting people’s access to common land for the purposes of the Project. 25. Depending on the nature of assets to be acquired other government agencies will be involved in establishing compensation rates. Based on scheduled rates the replacement value will be determined in consultation and negotiation especially in respect of assets on customary land.

Appendix 11 71

26. For removal of crops and trees, compensation will be based on the published schedules of Ministry of Agriculture (Agricultural Extension Division) for root crops and tree crops and Ministry of Forests, Environment and Conservation (Forestry Division—Commercial Section) for plantation trees and wood/timber trees. The rates for root crops are based on value of product per m2 and tree crops are valued according to age, size and productivity of individual trees. The crop rate schedule has recently been updated but has not been gazetted as yet. The rates for timber or wood trees are based on size and grade (quality) of logs per m3. The August 2006 schedule was updated in April 2007. 27. Structures (houses and commercial structures) are valued through the Ministry of Lands, Housing and Survey (Housing Division). Government or state buildings are valued according to condition and vary from $700/m2 for poor condition buildings to $2,800/m2 for good condition buildings. Private buildings are valued at replacement rate plus relocation expenses. 28. Land is also valued through Ministry of Lands, Housing and Survey (Commissioner of Lands). A valuation report is prepared based on the size and condition of land and closest comparable values that are obtainable. This can be difficult in respect of customary land or land located on remote islands as there is little exchange of land and often the closest value land can be “rated” land which is urban or township land. The negotiation process to arrive at an agreed price for customary land can be lengthy. Alienated land is easier to value because it is has been registered and effectively exists within a functioning real estate market. 29. All scheduled rates should be verified through a market appraisal undertaken by PMCBU which will undertake a brief survey of market rates and comparison with the scheduled rates. Additional grants may be needed to “top-up” the rates of some assets where the published rates do not reflect market or replacement value.

H. Consultation, Information Disclosure, and Grievance Redress

30. The RPs will be prepared and implemented in close consultation with affected persons and communities. The PMCBU will consult affected households, leaders, and representatives of community associations to ascertain their needs and concerns about land acquisition and resettlement. The PMCBU will inform affected people of their entitlements through public consultations. A resettlement booklet containing the entitlement matrix, measurement of losses, detailed asset valuations, grievance procedures, timing of payments and displacement schedules will be distributed to the affected people and read in pigin or any other local language to those, who have problems to read English, while the RPs will be made available for further reference in public places in the vicinity of the Project. The EA will ensure the participation of APs in the implementation of the RP, and consultation will be detailed in the RP. 31. The PMCBU will establish an independent grievance redress mechanism to receive and address concerns that are raised by affected persons and provide for recourses to resolve disputes in an impartial manner. Through public consultations, those affected will be informed that they have a right to grievance resolution and where they can voice them. Other than disputes relating to land ownership rights under the appropriate court of law, grievance procedures will address all resettlement benefits, relocation, and other assistance. It will be important the grievance redress mechanism reflects the existing process for resolving land disputes, especially in respect of customary land. Beside this grievance redress mechanism directly related to the project, people who are directly, materially and adversely affected by ADB operations during formulation, processing, or implementation can also file a complaint under ADB’s Accountability Mechanism. According to ADB’s Communication Policy the approved RP will be uploaded to ADB’s website and disclosed to the affected people.

72 Appendix 11

I. Monitoring and Evaluation

32. The RP will contain a monitoring framework and the EA will establish a monitoring system within the PMCBU to monitor reconstruction and livelihood restoration of all affected persons on a quarterly basis. The PMCBU will monitor the progress of all aspects of resettlement and land acquisition, if any. It will particularly monitor the delivery of resettlement entitlements to displaced and affected households. The PMCBU will involve leaders and representatives of community associations to monitor the programs. The PMCBU will submit a quarterly review on resettlement and land acquisition through EA to ADB for review. ADB review missions will specifically check the progress of resettlement and land acquisition programs.

Annex A: Decision Tree for Sub-project Preparation and Approval

ADB: APPROVE, Identify monitoring requirements

Refer to Form 1: Screening Checklist, Refer to Form 2: Project Report Form Refer to Chapters 7 and 8

1. Screening 2. Screening 3. Appraisal by ADB 4. Resettlement Plan Checklist Prepared Checklist Reviewed by PIU by ADB (social safeguard specialist)

Refer to Form 1: Screening Checklist, Refer to Form 2: Project Report Form

ADB:

REJECT

REQUEST AMENDMENT AND REAPPLICATION

Appendix 11 Appendix

74 Appendix 11

Annex B: Subproject Screening Form (to be filled by a social scientist)

A. Project Title Project No. XXXXX-XX

Subproject Title: ______Date: ______

Short Subproject Description:

Location and impact area:

Probable Involuntary Resettlement Effects* Yes No Not Known Possible Remarks Will the project include any physical construction work? Does the project include upgrading or rehabilitation of existing physical facilities? Are any project effects likely lead to loss of housing, other assets, resource use or incomes/livelihoods? Is land acquisition likely to be necessary? Is the site for land acquisition known? Is the ownership status and current usage of the land known? Will easements be utilized within an existing Right of Way? Are there any non-titled people who live or earn their livelihood at the site or within the Right of Way? Will there be loss of housing? Will there be loss of agricultural plots? Will there be losses of crops, trees, and fixed assets? Will there be loss of businesses or enterprises? Will there be loss of incomes and livelihoods? Will people lose access to facilities, services, or natural resources? Will any social or economic activities be affected by land use-related changes?

Appendix 11 75

If involuntary resettlement impacts are expected: Are local laws and regulations compatible with ADB’s Involuntary Resettlement policy? Will coordination between government agencies be required to deal with land acquisition? Are there sufficient skilled staff in the Executing Agency for resettlement planning and implementation? Are training and capacity-building interventions required prior to resettlement planning and implementation? *Whenever possible, consider also any future subprojects or investments.

Information on Affected Persons: Any estimate of the likely number of households that will be affected by the Project? [ ] No [ ] Yes If yes, approximately how many? ______Are any of them poor, female-heads of households, or vulnerable to poverty risks? [ ] No [ ] Yes If yes, please briefly describe their situation ______Are any APs from indigenous or ethnic minority groups? If yes, please explain? ______

Proposed by:

______PMCBU Director Date Social Dev’t Specialist Date

Checked by: Endorsed by:

______ADB Social Dev’t Date Mission Leader Date Safeguard Specialist

76 Appendix 11

Annex C: Draft Terms of Reference for Elaboration of Resettlement Plan

The scope and level of detail of the resettlement plan vary with magnitude and complexity of resettlement. The plan is based on up-to—date and reliable information about ( a) the proposed resettlement and its impacts on displaced persons and other adversely affected groups, and (b) the legal issues involved in resettlement. The resettlement plan covers elements, as relevant. When any element is not relevant to project circumstances, it should be noted in the resettlement plan. Description of the sub project: General description of the sub project and identification of sub project area. Potential Impacts: Identification of (a) the sub project component or activities that give rise to resettlement, (b) the zone of impact of such component or activities, (c) the alternatives considered to avoid or minimize resettlement; and (d) the mechanisms established to minimize resettlement, to the extent possible, during project implementation. Objectives: The main objectives of the resettlement program. Socio-economic studies: The findings of socio-economic studies to be conducted in the early stages of project preparation and with the involvement of potentially displaced people, including; (a) the results of a census survey covering; current occupants of the affected area to establish a basis for design of the resettlement program and to exclude subsequent inflows of people from eligibility for compensation and resettlement assistance. standard characteristics of displaced households, including a description of production systems, labor, and household organization; and baseline information on livelihoods ( including, as relevant, production levels and income derived from both formal and informal economic activities) and standards of living ( including health status) of the displaced population the magnitude of the expected loss, total or partial, of assets, and the extent of displacement, physical or economic information on vulnerable groups or persons, for whom special provisions may have to be made; and provisions to update information on the displaced people’s livelihoods and standards of living at regular intervals so that the latest information is available at the time of their displacement. (b) Other studies describing the following; land tenure and transfer systems, including an inventory of common property natural resources from which people derive their livelihoods and sustenance, non-title-based usufruct systems ( including fishing, grazing, or use of forest areas) governed by local recognized land allocation mechanisms, and any issues raised by different tenure systems in the sub project area. The patterns of social interaction in the affected communities, including social support systems, and how they will be affected by the sub project Public infrastructure and social services that will be affected; and Social and cultural characteristics of displaced communities, including a description of formal and informal institutions ( e.g. community organizations, ritual groups, non governmental

Appendix 11 77 organizations (NGO’s) that may be relevant to the consultation strategy and to designing and implementing the resettlement activities. Legal Framework: The findings of an analysis of the legal framework, covering, (a) the scope of the power of eminent domain and the nature of compensation associated with it, in terms of both the valuation methodology and the timing of payment, (b) the applicable legal and administrative procedures, including a description of the remedies available to displaced persons in the judicial process and the normal timeframe for such procedures, and any available alternative dispute resolution mechanisms that may be relevant to resettlement under the sub project, (c) relevant law ( including customary and traditional law) governing land tenure, valuation of assets and losses, compensation, and natural resource usage rights, customary personal law related to displacement, and environmental laws and social welfare legislation, (d) laws and regulations relating to the agencies responsible for implementing resettlement activities, (e) gaps, if any, between local laws covering eminent domain and resettlement and the Bank’s resettlement policy, and the mechanisms to bridge such gaps, and, (f) any legal steps necessary to ensure the effective implementation of resettlement activities under the project, including, as appropriate, a process for recognizing claims to legal rights to land, including claims that derive from customary and traditional usage . Institutional Framework: The findings of any analysis of the institutional framework covering; (a) the identification of agencies responsible for resettlement activities and NGOs that may have a role in project implementation; (b) an assessment of the institutional capacity of such agencies and NGOs; and (c) any steps that are proposed to enhance the institutional capacity of agencies and NGOs responsible for resettlement implementation. Eligibility : Definition of displaced persons and criteria for determining their eligibility for compensation and other resettlement assistance, including relevant cut-off dates. Valuation of and compensation for losses: The methodology to be used in valuing losses to determine their replacement cost; and a description of the proposed types and levels of compensation under local law and such supplementary measures as are necessary to achieve replacement cost for lost assets. Resettlement Measures: A description of the packages of compensation and other resettlement measures that will assist each category of eligible displaced persons to achieve the objectives of OP 4.12. In addition to being technically and economically feasible, the resettlement packages should be compatible with the cultural preferences of the displaced persons, and prepared in consultation with them. Site selection, site preparation, and relocation: Alternative relocation sites considered and explanation of those selected, covering, (a) institutional and technical arrangements for identifying and preparing relocation sites, whether rural or urban, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources,

78 Appendix 11

(b) any measures necessary to prevent land speculation or influx of eligible persons at the selected sites, (c) procedure for physical relocation under the project, including timetables for site preparation and transfer; and (d) legal arrangements for regularizing tenure and transferring titles to resettlers. Housing, infrastructure, and social services: Plans to provide ( or to finance resettler’s provision of) housing, infrastructure ( e.g. water supply, feeder roads), and social services to host populations; any necessary site development, engineering, and architectural designs for these facilities. Environmental protection and management. A description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts ( coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement). Community Participation: a description of the strategy for consultation with and participation of resettlers and host communities, including (a) a description of the strategy for consultation with and participation of resettlers and hosts in the design and implementation of resettlement activities, (b) a summary of the views expressed an how these views were taken into account in preparing the resettlement plan, (c) a review of the resettlement alternatives presented and the choices made by displaced persons regarding options available to them, including choices related to forms of compensation and resettlement assistance, to relocating as individual families or as parts of pre-existing communities or kinship groups, to sustaining existing patterns of group organization, and to retaining access to cultural property ( e.g. places of worship, pilgrimage centers, cemeteries); and (d) institutionalized arrangements by arrangements by which displaced people can communicate their concerns to project authorities throughout planning and implementation, and measures to ensure that such vulnerable groups as indigenous people, ethnic minorities, landless, and women are adequately represented. Integration with host populations: Measures to mitigate the impact of resettlement on any host communities, including, (a) consultations with host communities and local governments, (b) arrangements for prompt tendering of any payment due the hosts for land or other assets provided to resetters, (c) arrangements for addressing any conflict that may arise between resettlers and host communities, and (d) any measures necessary to augment services ( e.g. education, water, health, and production services) in host communities to make them at least comparable to services available to resettlers. Grievance procedures: Affordable and accessible procedures for third-party settlement of disputes arising from resettlement, such grievance mechanisms should take into account the availability of judicial recourse and community and traditional dispute settlement mechanisms.

Appendix 11 79

Organizational responsibilities: The organizational framework for implementing resettlement, including identification of agencies responsible for delivery or resettlement measures and provision of services; arrangements to ensure appropriate coordination between agencies and jurisdictions involved in implementation; and any measures (including technical assistance) needed to strengthen the implementing agencies capacity to design and carry out resettlement activities; provisions for the transfer to local authorities or resettlers themselves of responsibility for managing facilities and services provided under the project and for transferring other such responsibilities from the resettlement implementing agencies, when appropriate. Implementation Schedule: An implementation schedule covering all resettlement activities from preparation through implementation, including target dates for the achievement of expected benefits to resettlers and hosts and terminating the various forms of assistance. The schedule should indicate how the resettlement activities are linked to the implementation of the overall project. Costs and budget: Tables showing itemized cost estimates for all resettlement activities, including allowances for inflation, population growth, and other contingencies; timetable for expenditures; sources of funds; and arrangements for timely flow of funds, and funding for resettlement, if any, in areas outside the jurisdiction of the implementing agencies. Monitoring and evaluation: Arrangements for monitoring of resettlement activities by the implementing agency, supplemented by independent monitors as considered appropriate by the Bank, to ensure complete and objective information; performance monitoring indicators to measure inputs, outputs, and outcomes for resettlement activities; involvement of the displaced persons in the monitoring process; evaluation of the impact of resettlement for a reasonable period after all resettlement and related development activities have been completed; using the results of resettlement monitoring to guide subsequent implementation.