Cook Islands National Infrastructure Investment Plan

Inception Report

March 2014

Infrastructure Committee Cook Islands Government

Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Contents

1 Introduction 1 1.1 Purpose and Scope of the Report 1 1.2 Mobilisation and Initial Activities 1 1.2.1 Personnel 1 1.2.2 Project Accommodation and Support 1 1.2.3 Meetings 1 1.2.4 Background Data Collection 3 1.2.5 Institutional Mapping 3 1.2.6 Developing the Methodology 3 2 Proposed Approach 4 2.1 Overall Approach 4 2.1.1 Guidance from Stakeholders 4 2.2 Methodology 5 2.3 Background/Data 5 2.4 Infrastructure Sector Review 6 2.4.1 Demand Analysis 6 2.5 Project Long-list 6 2.5.1 CIIC Database 6 2.5.2 Refining the Project List 7 2.6 Prioritisation 7 2.6.1 Screening and MCA Criteria 7 2.6.2 Preparing the Investment Plan from the Prioritised Project List 9 2.7 Funding Strategy 10 2.8 Climate Change 10 2.8.1 Scope of Climate Change in CI NIIP 10 2.8.2 Overview 10 2.8.3 Climate Change Assessments for CI NIIP 11 2.9 Monitoring and Review 12 2.10 Role of the CI NIIP 12 2.10.1 Linkage with Budget Process 12 2.10.2 Positioning of the CI NIIP 13 2.11 Consultation Strategy 14 2.11.1 Outer Islands 15 3 Infrastructure and Economic Overview 16 3.1 General 16 3.2 Geographic and Island Context 16 3.3 Initial Economic Review 17 3.4 Infrastructure Assessment 18 3.4.1 Existing Infrastructure 18 3.5 Sector and Sub-sector Planning 19

List of Appendices

A Work Plan B Responsibilities for infrastructure C Criteria used in other National Infrastructure Investment Plans D Example of MFEM project sheet E List of projects from 20-Year Infrastructure Master Plan F List of Documents Obtained

List of Figures

Figure 2.1 Proposed CI NIIP Process 5 Figure 2.2 Positioning of CI NIIP 14

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List of Tables

Table 1.1 List of Persons Met 1 Table 2.1 NIIP Stakeholder Observations and Responses 4 Table 2.2 Prioritisation Criteria (Draft for discussion) 8 Table 2.3 Key Tasks and Activities in Climate Change and Disaster Risk Assessment 11 Table 2.4 Key Budget Dates 2014 13 Table 2.5 Infrastructure Committee Budget Review Activities 13 Table 2.6 Programme of Proposed Consultations and Communication 15 Table 3.1 Island Characteristics 16 Table 3.2 Summary of Key Infrastructure 18 Table 3.3 Existing Sector Plans and Studies 20

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Abbreviations

ADB Asian Development Bank AUD Australian Dollar BSG Budget Support Group CEO Chief Executive Officer CIAA Cook Island Airports Authority CIIC Cook Islands Investment Corporation DCD Development Coordination Division EC European Commission EDF European Development Fund EIB European Investment Bank EU European Union GCCA Global Climate Change Alliance GDP Gross Domestic Product GEF Global Environment Facility HOM Head of Ministry ICI Infrastructure Cook Islands ICT Information and Communication Technologies IDA International Development Association IFC International Finance Corporation (of the World Bank Group) JICA Japan International Cooperation Agency JNAP DRM CCA Joint National Action Plan for Disaster Risk Management and Climate Change Adaptation MCA Multi-Criteria Analysis MDGs Millennium Development Goals MFEM Ministry of Finance and Economic Management NGO Non Governmental Organisation NIIP National Infrastructure Investment Plan NSDP National Sustainable Development Plan NZ MFAT New Zealand Ministry of Foreign Affairs and Trade NZD New Zealand Dollar ODA Official Development Assistance OPM Office of the Prime Minister PCCSP Pacific Climate Change Science Programme PCRAFI Pacific Catastrophe Risk and Financing Initiative PRIF Pacific Region Infrastructure Facility ROBOC Revenue on Behalf of the Crown SOE State-Owned Enterprise SPC Secretariat of the Pacific Community SRIC Strengthening Resilience in Island Communities TA Technical Assistance TAU Te Aponga Uira (Power company) UNDP United Nations Development Programme WATSAN Water and Sanitation Programme WB World Bank Group

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Consultant Team

Richard Mabbitt Team Leader, Infrastructure Planning and Policy Specialist David Hamilton Economist Carsten Huttche Climate Change Specialist Bernadette Raffe Finance Specialist Des Eggelton Civil Engineer

“This is a publication of the Government of the Cook Islands.

This report was prepared by Richard Mabbitt, David Hamilton, Bernadette Raffe, Des Eggelton and Carsten Huttche as individual consultants under the guidance of and with support of the Pacific Regional Infrastructure Facility (PRIF) in Sydney, Australia.

PRIF is a partnership for improved infrastructure in the Pacific Region between the Asian Development Bank, the Australian Agency for International Development, the New Zealand Ministry for Foreign Affairs and Trade, the World Bank, the European Union and the European Investment Bank.

The views expressed in this report are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent or from any of the PRIF Partners. ADB or any of the above parties does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use”

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Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

The Cook Islands

Penrhyn

Rakahanga

Manihiki Pukapuka

Nassau

Northern Group Suwarrow

Palmerston Southern Group

Aitutaki

Manaue

Mitiaro Takutea

Atiu

Mauke

Rarotonga

N 100 Km Mangaia

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Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

1 Introduction

1.1 Purpose and Scope of the Report

1 This is the first report under the technical assistance to prepare the Cook Islands National Infrastructure Investment Plan. The work is being supported by the Pacific Region Infrastructure Facility (PRIF).1 The report sets out an initial assessment of the current situation in the infrastructure sub-sectors covered by NIIP, and outlines the approach and work plan for the project.

1.2 Mobilisation and Initial Activities

1.2.1 Personnel th 2 The Team Leader, Infrastructure Planning and Policy Specialist, Richard Mabbitt, mobilised on 9 February and arrived in Rarotonga on the 10th February, 2014.

3 The Economist, David Hamilton, arrived in Rarotonga on 15th February 2014.

th 4 The Finance Specialist, Bernadette Raffe mobilised on 17 February. The Civil Engineer, Des Eggelton, mobilised on 5th March.

5 The international Climate Change Expert, Carsten Huttche has started background research from his home office. He will arrive in the Cook Islands in April.

6 The proposed project Work Plan is shown in Appendix A.

1.2.2 Project Accommodation and Support

7 The CI NIIP project office has been established in the Cook Islands Investment Corporation (CIIC) section of the MFEM building. The team has been provided with access to telephone, internet and printing facilities. Staff of CIIC and Development Coordination Division (DCD) have provided excellent support and assistance.

8 It has been established that the Infrastructure Committee (IC) will take the role of the project’s steering committee. Membership of the IC is comprised of private sector board members of CIIC, plus representatives from ICI, CIIC, MFEM, and the Office of the Prime Minister.

1.2.3 Meetings

9 A number of meetings have been held with stakeholders. A list of meetings held thus far is shown in Table 1.1. (Note: The cut-off point for meetings included in the Inception Report was 14th March).

Table 1.1 List of Persons Met

Date Agency People Met 11th Feb 2014 Development Partners Presentation to Development Partners’ Meeting Meeting Side discussions with: Noriko Ogawa, ADB Andrew Jacobs, EU Adam Bruun, Katrin Bock, EIB Charlie Jebb, Australian High Commission, Wellington Joanna Kempkers, NZ High Commissioner, Cook Islands

1 PRIF is a partnership between the Asian Development Bank, Australian Aid, EC/EIB, New Zealand, the World Bank Group, and JICA

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Date Agency People Met Roger de Bray, Energy Commissioner, Cook Islands Nathalie Rossette-Cazel, Lex Act (France) Teresa Manarangi - Trott, Chamber of Commerce 14th Feb 2014 ADB Coordination Office, Vanessa Jenner, MFEM Development Charmaine Dolan Coordination Division 17 Feb 2014 ADB Coordination Office, Vanessa Jenner - ADB Liaison Officer MFEM Development Charmaine Dolan - ADB liaison Officer Coordination Division Peter Tierney - Manager Development Coordination Division Tunoa Kaina - Accounts Manager Edward Parker - Budget Analyst Angelia Williams - Budget Team 18 Feb 2014 MFEM Richard Neves - Financial Secretary Christina Tatuava – Senior Budget Analyst Teu Teulilo - Treasury Operations Manager Elizabeth Tommy – Crown Account Manager 18 Feb 2014 OPM Otheniel Tangianau - Director for Outer Islands 18 Feb 2014 NZMFAT Howard Markland - Development Manager Cook Islands Program Steve Barrett – Senior Development Program Coordinator 19 Feb 2014 Infrastructure Committee Michael Henry, Chairman - CIIC Board of Directors Julian Dashwood, Chairman - CIIC Board of Directors Malcolm Sword, Member - CIIC Board of Directors Sam Brown, Member Mac Mokoroa, Member Tamarii Tutangata, Member Richard Neves, Member Peter Tierney, DCD Joseph Akaruru, ICI Fred Hosking, ICI 19 Feb 2014 Te Mato Vai Latu Kupa - Project Manager 20 Feb 2014 AECOM Miles Wyatt - Senior Engineer, Asset Management 24 Feb 2014 Energy Commission Roger De Bray - Energy Commissioner 24 Feb 2014 Infrastructure Cook Islands Mac Mokoroa – Secretary Tekao Herman - Acting Director WATSAN Kenneth McDonald – Director, Ambient Adrian Teotahi - Acting Director Water Division Tangi Taoro - WATSAN Program Administrator Joseph Akaruru - Acting Director Planning and Project Division Nooroa Tupa - Acting Electrical Inspectorate Louie Teiti- Building Inspectorate Fred Hosking - Procurement 25 Feb 2014 Telecom Cook Islands Jules Maher - CEO 25 Feb 2014 Bank of Cook Islands Vaine Nooana - Arioka – Managing Director 25 Feb 2014 Chamber of Commerce Steve Anderson - President 26 Feb 2014 Westpac Henry Napa – Senior Relationship Manager David Street – Head of Sales Cathleen Ikurangi – Dealer Financial Markets 26 Feb 2014 Te Aponga Uira (Power Apii Timoti - CEO Utility) Yamanikia Cooray, Manager Financial Services 26 Feb 2014 Ports Authority Bim Tou – General Manager Alfereti Vamarasi – Financial Controller 27 Feb 2014 Inception Workshop Richard Neves, Financial Secretary Peter Tierney, Manager DCD, MFEM Roger de Bray Apii Timoti, CEO, TAU Joe Ngamata, CEO, CIAA Yamanikia Cooray, Manager Financial Services, TAU Alex Napa, Project Director, TAU Steve Anderson, President, Chamber of Commerce Bim Tou, General Manager, Ports Authority

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Date Agency People Met Otheniel Tangianau, Director for Outer Islands, OPM Tamarii Tutangata, Director, CIIC William Tuivaga, Manager, SRIC Fred Hosking, Capital Projects, ICI Tekao Herman - Acting Director WATSAN, ICI Tangi Taoro, WATSAN, ICI Noeline Mateariki, Cook Islands Tourism Anne Taoro, Property Manager, CIIC Charmaine Dolan, ADB Liaison Officer 28 Feb 2014 CIAA Joe Ngamata - CEO 28 Feb 2014 ANZ Julia Kapi – Chief Operating Officer 3 March 2014 OPM Maria Tuoro, Policy and Planning Officer 4 March 2014 OPM Ana Tiraa, Climate Change Cook Islands William Tuivaga, Manager SRIC 7 March 2014 Ministry of Transport Ned Howard, Secretary 10 March 2014 Aitutaki Terura Bishop, Deputy Mayor Tiraa Arere, Executive Officer Hon. Teina Bishop, MP, Minister of Tourism & Education J.J. Browne, Board Member, Airport Authority Steve Doherty, Board Member, Tourism Rima Tuiravakai, Manager, Aitutaki Power Supply Tukua Upokomanu, Waterworks Supervisor Clive Baxter, Cooperation Manager, Aitutaki Port 11 March 2014 Aitutaki Thomas Koteka, Owner, manager Samade 12 March 2014 John Mansell Principal Maritime Advisor, Maritime New Zealand 12 March 2014 Robert Guild Director, Transport, Energy and Natural Resource Division, Pacific Department, ADB 13 March 2014 Elizabeth Koteka-Wright Chief of Staff, Office of the Prime Minister Petero Okotai, Director of Central Policy and Planning, OPM 14 March 2014 Non-government Kelvin Passfield, Te Ipukarea Society Organisations Rodger HARKNESS, Creative Centre Mousie Skews, Are Pa Metua Taputu Mariri, National Council of Women Kevin Hosking, Cook Islands National Disability Council Polly Tongia, National Council HIV/STI/ Rongo File

1.2.4 Background Data Collection

10 A key activity during the initial period has been the assembly of background reports and data. A list of documents collected to date is shown in Appendix F.

1.2.5 Institutional Mapping

11 As a first stage in the assessment of the institutional background, time has been spent in understanding the responsibilities of the agencies involved in infrastructure planning, provision and management. A draft institutional responsibility matrix is included in Appendix B.

1.2.6 Developing the Methodology

12 Discussion on the approach and methodology for CI NIIP has been ongoing within the team and with Government and development partners.

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2 Proposed Approach

2.1 Overall Approach

13 This section outlines the approach and key tasks proposed in the CI NIIP preparation,and discusses first ideas on the methodology for project prioritization.

2.1.1 Guidance from Stakeholders

14 Experience of the NIIP process has been gained in other Pacific Island countries. Stakeholders involved in those have made a number of observations and recommendations for future NIIPs. The CI NIIP will therefore build on the lessons learned from these, and also take on board comments from other stakeholders received during the Inception Phase of the CI NIIP. Key observations and comments and how the CI NIIP will respond to them are shown in Table 2.1.

Table 2.1 NIIP Stakeholder Observations and Responses

Observations/Recommendations CI NIIP Response (a) NIIPs need to remain concise and relatively high level The CI NIIP will be concise and will strategic planning documents complement the National Sustainable Development Plan and the Budget Policy Statements as strategic national documents. (b) NIIPs should analyse the infrastructure policy context of The CI NIIP will include an analysis of a country and its sub-sectors and identify gaps and infrastructure sub-sectors including gaps in shortcomings service coverage. (c) Improved prioritization processes with quantification of The prioritisation process will draw on costs and benefits where possible experiences of all previous NIIPs and will include cost/benefit analyses where data permits. (d) Prioritization should be considered within and across Priority projects will be presented by sub- sectors and by improving stakeholder participation sector and prioritisation will be a fully consultative process. (e) NIIPs should assess the potential for private sector The private sector is already active in involvement in financing and operating infrastructure Cook Islands and well engaged with Government, and CI NIIP will aim to foster this relationship and help to grow the private sector role. (f) The quality of the technical and financial analysis Demand analysis, current infrastructure applied in the NIIPs should be improved with more assessment, and costing of projects will be attention for demand analysis, assessment of current included in the CI NIIP, subject to data infrastructure and describing and costing the proposed availability. projects (g) The link between the NIIPs and their implementation Implementation and monitoring will be should be strengthened by including an implementation discussed with Government and an agreed and monitoring plan plan included in the CI NIIP. (h) The planning horizon of the NIIPs needs to be realistic The CI NIIP will include a financing and take into account the time needed to identify and strategy based on realistic projections of commit funding and for implementing the projects funding and implementation capacities. (i) In improving the NIIPs it will be necessary to strike a The CI NIIP will aim to optimise the use of balance between what is achievable in an environment available data and the time available for with often limited data and information and the available analyses. PCO budget. (j) CI NIIP should be closely aligned to the existing The CI NIIP will be undertaken in close Government procedures of project evaluation and liaison with the sections of Government budgeting. involved in project evaluation and budget preparation. (k) The CI NIIP should show linkages with the 20-Year The analysis of the project long list will Infrastructure Master Plan (IMP). include appraisals of how the projects relate to the proposals in the IMP.

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2.2 Methodology

15 The methodology being developed for the CI NIIP is being tailored to the situation in the Cook Islands. Whilst the process will be similar to that adopted for previous NIIPs there will be some key differences. One major factor is that the Government wishes to see the NIIP closely integrated into its own budget procedures.

16 Two other particular aspects will impact on the methodology. Firstly the 20-Year Infrastructure Master Plan (IMP) prepared with ADB support in 2007 provides a comprehensive background of infrastructure needs and proposals. A key aspect of the preliminary stages of the process will therefore be the review and updating of information in the IMP. Secondly, MFEM maintains an up- to-date list of all projects submitted for consideration by ministries and other agencies. This will be a key resource in the CI NIIP process as it provides a comprehensive centralised list of proposed projects at various stages of approval and funding.

17 An outline of the CI NIIP process is shown in Figure 2.1 and described in the following sections.

Figure 2.1 Proposed CI NIIP Process

2.3 Background/Data

18 One of the initial tasks in the CI NIIP process is the gathering of information on the infrastructure sectors covered by the project. The information includes:

. General policy documents . Government plans and programmes by sector/ministry . Reports on sub-sector conditions and needs . Development partner reports and programmes . Project lists . Project documents

19 Reports and data are being gathered from a variety of sources including primary sources, third parties, and the internet. Where possible the originators of information have been contacted to check for updates, revisions etc.

20

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2.4 Infrastructure Sector Review

21 Alongside the data collection exercise meetings with stakeholders are being conducted to obtain first-hand insights into the issues, needs and proposals. The needs assessment and demand review will be based on an assimilation of available data, along with an analysis of appropriate responses to needs, and (achievable) targets for levels of service. This will take into account existing and projected technical, administrative and financial capacities.

22 A review of each sub-sector including key issues and needs will be provided in the Infrastructure Status Report scheduled to be submitted in April 2014. This will include an overview of development options for sub-sectors and how these interface with each other, and the roles they play in national development. It will also incorporate key indicators of sector performance, aligned to the indicators in the Pacific Infrastructure Performance Indicators (PIPIs).2

2.4.1 Demand Analysis

23 Demand analysis for infrastructure will be undertaken using a variety of sources and measures. The precise methodology is still being considered but the sources to be reviewed and assessed will include:

. Levels of service put forward in the IMP in 2007 . Service levels and demand as reassessed in the PPTA for the preparation of the Infrastructure Development Project in 2009 . Standards of provision in the PIPIs Report 2011 as updated in 2014 . Water Supply Master Plan 2013 . SWM Report 2009 . Airports Feasibility Study 2013 . Renewable Energy Implementation Plan 2012 . Te Aponga Annual Report 2012 . Energy Commissioner’s demand forecasts

24 An important aspect of the demand analysis will be assessing the effects of the various factors affecting demand, in particular the drivers of demand. The principal drivers of demand are expected to be:

. Increasing economic activity, particularly tourism . The overarching goal to improve quality of life of Cook Island citizens . The trend for increased business and social connectivity through improved and expanded technology . The need to prepare for climate change and disaster management . The aim to achieve increased sustainability, particularly through renewable energy

25 Notably, population growth is not a key factor as the resident population in the Cook Islands has shown a slow decline over the last decade. These drivers of demand and others will be analysed and their significance within different sub-sectors examined.

2.5 Project Long-list

2.5.1 CIIC Database

26 The options for assembling the long list of projects were discussed with MFEM. Initially it was thought that the list from the Infrastructure Master Plan (IMP) would be the starting point. However, based on the MFEM discussions and following examination of the IMP list, it became clear that things have progressed somewhat since that report and that the current proposed project list held by CIIC provides a more comprehensive and up to date reference point.

2 Pacific Infrastructure Performance Indicators, PRIF 2011 (updated 2014)

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27 CIIC maintains a database of all projects put forward for consideration in the annual budget process. The list includes those projects that are in the current funding programme – the ‘Capital Book’ – as well as those projects that do not yet have funding approved.

28 When ministries submit their proposed business plans to MFEM each project in the Plan is described in a project sheet that follows a standard template. An example of a Government project sheet is shown in Appendix D. These sheets will be a useful source of data for the CI NIIP. Once more examples have been assembled a template for CI NIIP will be developed based on the MFEM sheets.

29 Each year MFEM coordinates a review and updating of the database using information submitted by the various ministries and other agencies in their Business Plans. These are then subjected to a multi-stage evaluation process (see section 2.10.1) before being put forward for inclusion in the Budget.

2.5.2 Refining the Project List

30 The current CIIC list captures most, but not necessarily all, of the projects being considered by agencies in the various sub-sectors. It will be refined and supplemented by other projects as described below:

. New projects added based on information collected by the CI NIIP team from consultations and from infrastructure assessments . Projects in sectors not covered by CI NIIP removed . Completed projects removed . Project details edited based on comments received from the Inception Workshop and/or in other discussions with project proponents

31 The issue of a ‘cut-off’ in terms of minimum project size/value was discussed at the Infrastructure Committee and at the Inception Workshop. Figures of around $2-300,000 were considered as possible cut-off points. However, no final decision was taken and it was agreed that, once a consolidated long list is available, the CI NIIP team would examine the effects of different cut-off points (in terms of which projects ‘fall out’, and the resulting size of the list) and report back to MFEM and IC.

2.6 Prioritisation

2.6.1 Screening and MCA Criteria

32 Ongoing and committed projects will automatically form part of the plan, together with a short-list of high priority proposed projects. Prioritisation of the long-list of proposed projects will involve the following steps:

. Screening for:  strategic alignment, to confirm that projects are consistent with the Cook Islands NSDP 2011-2015; and  timing, to confirm that projects are needed within the next 5 to 10 years.

. Multi-criteria Analysis (MCA)

33 Projects passing the initial screening will be ranked using Multi-criteria Analysis (MCA). MCA is a rapid appraisal technique, used to guide project prioritisation in the absence of more complete project documentation and cost-benefit analysis for most projects in the long-list. MCA involves identifying criteria relevant to project prioritisation, weighting criteria in accordance with their perceived importance, and applying a scoring system capturing the performance of projects against the criteria. It should be recognised that MCA does not establish the viability of projects (i.e. the precise relationship between benefits and costs); rather it provides for ranking of projects in relation to their performance against selected criteria. Criteria have been selected to give some

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recognition to project costs as well as benefits. Prior to implementation, all projects need to be fully documented and subjected to more detailed assessment of viability.

34 Criteria selected for the MCA are of necessity general in nature, as they need to be applied to projects across all infrastructure sub-sectors. It is important that criteria are measurable to the extent that they allow projects to be ranked. Criteria and sub-criteria should also be kept to a manageable number to prevent the prioritisation exercise from becoming unwieldy.

35 In identifying criteria for the prioritisation process for the Cook Islands NIIP, consideration was given to the objectives and strategies set out in the NSDP and other statements of government policy including sector plans and the annual budget documentation. Discussions were held with the Infrastructure Committee, and other key stakeholders in infrastructure sub-sectors. Note was taken of lessons learned in the preparation of NIIPs in other Pacific countries, as identified in the review recently undertaken by PRIF. The criteria are also based on a review of criteria used in previous NIIPs. The criteria used in all NIIPs are shown in Appendix C, from which it can be seen that they have now evolved into a concise set of parameters that can be scored. Whilst criteria should be tailored to fit each country’s requirements, there is now some consistency emerging in the criteria used.

36 A draft set of criteria was presented to the workshop held on 27 February 2014, for review by stakeholders. Discussion among stakeholders recognised the need to strike a balance among a range of important considerations, and there was broad agreement with the draft presented. Workshop participants have been invited to submit any further comments on the draft, prior to the finalisation of criteria in the lead up to the next workshop scheduled for 28 April. The draft project prioritisation criteria are presented below:

Table 2.2 Prioritisation Criteria (Draft for discussion)

Headline Sub-criteria Cross-ref. to Key questions to aid scoring criteria NSDP Goals Economic Impact on costs and efficiency of 1,2,3 Will the project result in lower infrastructure users costs for infrastructure users through lower tariffs or slower growth in tariffs, time savings, reduced operating costs? Impact on economic growth and 1,2,3 Will the project facilitate employment expansion of industries e.g. tourism, fisheries, agriculture? Project viability 1,2,7 Is there evidence that the benefits of the project to the economy will exceed the costs by a sufficient margin? Social Support for improved social 2,3,4,5,8 Will the project facilitate the services delivery of health and education services? Service coverage 2,3,4,5,8 Will the project extend basic infrastructure service coverage to new areas and/or more people3, or prevent loss of coverage? Other social benefits 2,4,5,7,8 Will the project have other benefits for the community e.g. improving the lives of women and children, alleviating poverty, responding to rural/urban drift, improved safety? Environmental Impact on land and water 2,5,6 Will the project involve any resources (inverted scale where damage to the environment e.g. impact is negative) land, water resources, coastal and marine environments?

3 Where possible the number of beneficiaries of a project will be assessed, but will be used as one consideration in this criteria, not as an absolute value

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Headline Sub-criteria Cross-ref. to Key questions to aid scoring criteria NSDP Goals Degree of resilience to climate 2,5,6 How well will the project be able variability or climate change to cope with the potential effects of climate variability or climate change? Disaster risk management or 2,5,6 Does the project have an existing climate change adaptation or potential disaster risk function management or climate change adaptation function? Project Financial 1,2,7 Will the project be able to support sustainability the ongoing costs of operation and maintenance through user charges etc.? Technical 1,2,7 Will the technology used in the project be appropriate, and able to be operated and maintained? Institutional 1,2,7 Will the institution responsible for the project have sufficient capacity for implementation, operation and maintenance?

Key: NSDP 2011-2015 Goals 1. A vibrant Cook Islands economy 2. Infrastructure for economic growth, sustainable livelihoods and resilience 3. Energy security 4. Opportunity for all people who reside in the Cook Islands 5. Resilient and sustainable communities 6. Environment for living 7. Good governance 8. A safe, secure, just and stable society

37 Weights will be applied to headline criteria and sub-criteria based on their perceived importance. These weights are still under discussion with stakeholders, and the starting point for discussions is to weight headline criteria as follows:

. Economic 35% . Social 30% . Environmental 20% . Project sustainability 15%

38 It is proposed to score criteria on a scale of 0 to 5, with scores of 0 and 1 representing weak performance against the criteria, scores of 2 and 3 representing moderate performance, and scores of 4 and 5 representing strong performance.

39 It is planned that scoring be undertaken initially by a relatively small group with representation from the Infrastructure Committee (including representatives of ICI, MFEM, OPM, and the private sector) working with the consulting team, with the results presented for review by all stakeholders at the workshop on 28 April. It is also suggested to involve 1-2 representatives from the “productive sectors” in the prioritization process, such as tourism, commerce and/or agriculture/fisheries

2.6.2 Preparing the Investment Plan from the Prioritised Project List

40 The funding strategy will help guide the overall size and phasing of the infrastructure investment plan, as will an assessment of implementation capacity (both in relation to project preparation and capital works). Other considerations which are likely to be important in finalising the investment plan are the geographic balance of the plan, and possible linkages and synergies among projects. Consideration was given to including a specific criterion for ‘island balance’ but it is proposed that this is dealt with as part of a final review/check on the prioritisation outcomes.

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41 It is noted that proposed projects not forming part of the current 5 to 10 year infrastructure investment plan may be taken up in the plan in future years as it is rolled over.

2.7 Funding Strategy

42 The funding strategy will commence with an assessment of the demand for infrastructure finance. This will involve estimating whole-of-life costs for all projects in the plan (whole-of-life costs include all up-front costs, as well as maintenance costs and other operational costs as appropriate over the life of the infrastructure). The capital and recurrent costs associated with ongoing and committed projects will be assessed, as well as the costs related to the short-list of high priority proposed projects.

43 This demand-side analysis will need to be iterated with an assessment of financing options including finance from Government, SOEs, Development Partners (both grants and loans, and including funding modalities specific to climate change adaptation and disaster risk management), and domestic financial institutions. The potential for private sector involvement in infrastructure provision and operation will be examined. Attention will also be given to mechanisms for funding maintenance. For SOEs an assessment will be carried out to what extent they will be able to recover operation and maintenance costs. For Government agencies past budget allocations for operation and maintenance will be reviewed . In cases where there has been or will be shortage of funding for maintenance, the effect on project prioritization will be assessed. A review for more efficient ways of handling maintenance such as outsourcing some functions will also be carried out.

44 Work in the inception stage of the project has concentrated on data collection to prepare for assessment of:

. The capacity of SOEs to fund maintenance and capital expenditure; . Government’s fiscal position including existing and projected debt, together with trends in capital and maintenance expenditure in relation to infrastructure; . Historical and projected levels of support for infrastructure investment by Development Partners; . The capacity of domestic financial institutions to participate in the financing of infrastructure; and . Potential for increased private sector involvement in infrastructure provision and operation.

2.8 Climate Change

2.8.1 Scope of Climate Change in CI NIIP

45 The CI NIIP will include climate change and natural risk adaptation and mitigation measures for each of the projects included in the short list of priority investments. In addition it will highlight more general climate change issues and potential approaches for each infrastructure sub-sector. This might include the identification of specific strategies or projects to mitigate climate change. The detailed scope and approach have yet to be determined, but initial observations are given below.

2.8.2 Overview

46 The climate of the Cook Islands can be defined as warm tropical oceanic climate. Temperatures are mild all year round, with annual average temperature of the Northern Group Islands at 28°C and Southern group Island at 24.5°C. Two-thirds of the annual rain falls from November to April. The precipitation in this period is characterised by heavy rains forming cyclones. Between 1969 and 2010, 47 tropical cyclones were recorded within 400 km of Rarotonga (PCCSP, 2011)4. The most devastating ones were cyclones Martin and Pam in 1997 and cyclone Pat in 2010, where wind and storm surge caused widespread damage on the infrastructure of Manihiki Atol and Aitutaki islands (PCRAFI, 2011)5.

6 47 According to the Pacific Climate Futures (web-based tool) temperatures will continue to increase on Cook islands. Slightly higher temperature increases are expected in the North islands (from

4 Pacific Climate Change Science Program (PCCSP), 2011: Current and future climate of the Cook Islands, 5 Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), 2011: Country Risk Profile: Cook Islands 6 www.pacificclimatefutures.net

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1.4°C to 2.7°C) compared to the South islands (1.4°C to 2.5°C) according to low and high climate scenarios for 2090. The average annual seasonal rainfall is projected to increase in all 3 future scenarios; while extreme rainfall days are likely to occur more often (PCCSP, 2011; GCCA, 20127). As a consequence the tropical cyclones are expected to be more intense in the future and potentially cause more damage to existing and up-coming infrastructure development. Estimated direct cost losses for next 100 years represent 42.2% of Cook Islands GDP (103.0 Million USD) with additional 30.0% (23.6 Million USD) of emergency cost losses (PCRAFI, 2011).

48 Current rate of the sea level rise is about 3 mm/year worldwide. For the Cook Islands the sea level is expected to rise even more steadily (PCCSP, 2011). The projections for the medium emission scenario show the rise in sea level in the range of 4-15 cm by 2030; 10-30 cm by 2060 and 18-55 cm by 2090 (relative to year 1990). This implies that especially coastal lowland areas and their related infrastructures will be prone to the coastal flooding.

49 Natural disasters like tsunamis can pose threats to human lives and infrastructure of the Cook Islands in the future. In 1909, a tsunami with waves up to three meters high caused damage to roads, bridges and crops in Rarotonga. According to the earthquake hazard predictions, Cook Islands are situated in a relatively quiet seismic area and have low chance of experiencing a strong earthquake in the next 50 years. Nonetheless, the larger tectonic area of Pacific “Ring of Fire” can in the future generate tsunamis that may affect the Cook Islands' shores (PCRAFI, 2011).

2.8.3 Climate Change Assessments for CI NIIP

50 As part of the CI NIIP a high level and pragmatic assessment will be undertaken of the potential risks and vulnerability of proposed economic infrastructure to climate change and natural disasters. This will be based on a review of existing studies and reports. Using available information the CI NIIP team will prepare an assessment of vulnerability by location. Particular climate-sensitive hotspots will be identified and confirmed against the projected climate change trends. On this basis, if an acute need is identified, the team might propose specific climate change adaptation projects to be added to the long-list for the CI NIIP.

51 The team will assess and develop general adaptation measures for specific types of infrastructure and give an overview of the cost implications of the climate change adaptations by sub-sector.

52 The project prioritisation will incorporate criteria addressing climate change and sustainability. For the projects proposed to be included in the Draft CI NIIP the climate change and natural risk adaptation and mitigation measures will be presented. These will summarise the type of action, how and when it could be implemented in the planning period of the CI NIIP and, where possible, an indicative assessment of the costs. Potential sources for climate change aspects of the projects will be identified. Recommendations will also be put forward for other policies, strategies and measures that should be undertaken to mainstream climate change and natural disaster issues in the CI NIIP.

53 The key tasks and activities to be undertaken are summarised in Table 2.3.

Table 2.3 Key Tasks and Activities in Climate Change and Disaster Risk Assessment

Tasks Activities Rapid climate and natural Develop baseline information on risks posed to economic infrastructure disaster risk assessment that can be used to guide subsequent steps of process.

Long-list of projects Identify new economic infrastructure or DRM/CCA projects for long-list, or modify existing projects to address key risks. Multi-criteria analysis Include consideration of DRM and CCA issues in overall MCA process to prioritise investments. Optimise climate resilience of Evaluate climate impacts on priority economic infrastructure priority economic infrastructure investments and develop and cost resilience building measures. projects

7 Global Climate Change Alliance: Pacific Small Islands States (GCCA: PSIS) project, Cook Islands Climate Change Profile, 30 June 2012

11 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Optimise functionality of priority Develop planning, design, construction and operation details for priority adaptation infrastructure adaptation infrastructure options and undertake costings. projects

Enabling environment Identify the required enabling environment improvements required to support economic and DRM/CCA infrastructure. Funding options Identify a mix of suitable funding options that could be leveraged to support resilience building and adaptation infrastructure. Monitoring and evaluation Include DRM and CCA considerations in the NIIP monitoring and evaluation framework to facilitate adaptive management.

2.9 Monitoring and Review

54 The CI NIIP should not be seen as a one-time exercise. It should be updated on a regular basis to align with the latest planning and budget priorities, and reflect progress on implementation. Recommendations will be put forward for the process of monitoring and review.

55 As well as reviews at regular intervals, there will be occasions on which intermediate reviews should be undertaken. The triggers for this would include such things as:

. Major amendments to the NSDP . Publication of new sector or sub-sector plans . Significant changes in development partner programmes . Identification of major new projects

56 Measuring the progress of CI NIIP should blend qualitative and quantitative M&E methods, careful to only collect data needed to draw conclusions and recommend changes. It should also take place at a number of levels – project, sector, and national.

57 Project indicators should be simple and meaningful, able to inform practical decision-making during project implementation. Initial screening criteria for strategic alignment, readiness, and return on investment, as well as financial, social, environmental, and institutional prioritization criteria used for project selection should continue to gauge whether a project is on track to deliver intended results. Where possible, projects should collect comparable data.

58 At the higher level, the PIPI indicators developed by PRIF could be used to assess the impact of CI NIIP on overall infrastructure performance. A role for PRIF in CI NIIP development should also be considered. PRIF has now assembled an invaluable resource in the form of NIIPs for a number of countries including follow-up reviews of the earlier ones.

2.10 Role of the CI NIIP

2.10.1 Linkage with Budget Process

59 The Cook Islands Government is keen to achieve close linkage between the CI NIIP and the existing Budget process. The aim is to improve the quality of the project information and project appraisal process associated with the 2014/15 Capital Plan (Book 3 of the budget documentation, which sets out plans for capital works and other public investment for the next three years). For this reason the work of the CI NIIP has been scheduled to fit with key dates in the budget review. The major milestones in the Budget programme for 2014 are shown in Table 2.4.

12 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Table 2.4 Key Budget Dates 2014

Date Milestone 14 March Final ROBOC estimates submitted to MFEM 10-21 March BSG review budget submissions and business plans 31 March Final budget funding envelope to BSG 24 March – 4 April Budget interviews with HOMs and portfolio ministers 25 April BSG recommendations to HOMs and Minister of Finance 30 April Budget recommendations tabled in Cabinet 30 April Capital Plan Budget Book due 30 April – 9 May Cabinet deliberates over Budget Book 9 May Budget 2014/15 finalised and approved by Cabinet 4 June Budget tabled in Parliament Key to Abbreviations: ROBOC – Revenue On Behalf of Crown, BSG – Budget Support Group, HOM – Head of Ministry

th 60 The CI NIIP prioritisation workshop has been scheduled for 28 April in order to feed into the final stages of the project review process.

61 As part of the overall budget process the Infrastructure Committee undertakes its own programme of project review and assessment. Key dates in this programme are shown in Table 2.5. CIIC operates as the secretariat for the Infrastructure Committee Secretariat and the CI NIIP team will liaise closely with CIIC during this period of project review. As the (medium term) priority projects of the CI NIIP are proposed to be incorporated in the government budget, the CI NIIP priorities should fully align with the IC priorities for the coming years.

Table 2.5 Infrastructure Committee Budget Review Activities

Date Activity 28 February 2014 Infrastructure Committee Secretariat receives capital proposals from Budget Secretariat March – April 2014 Infrastructure Committee conducts stakeholder consultation, project prioritising and ranking 30 April 2014 Infrastructure Committee priority project recommendations to Cabinet

2.10.2 Positioning of the CI NIIP

62 As described above the Government wishes to fully integrate the CI NIIP with the existing procedure of assembling the book of capital projects for the annual budget. The positioning of the CI NIIP shown in Figure 2.2 below is adapted from previous NIIPs and illustrates the desired close linkage. The degree of linkage and integration that is achievable will be better known after the proposed prioritisation workshop in April. At that point this issue will be re-visited.

13 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Figure 2.2 Positioning of CI NIIP

NATIONAL SUSTAINABLE DEVELOPMENT PLAN

MINISTRY PLANS AND CI NIIP MACRO-ECONOMIC PROGRAMMES PLANNING

SECTOR STRATEGIC PLANS ANNUAL BUDGET (e.g. IMP)

DEVELOPMENT OUTER ISLAND PARTNERS & PLANS AND PROGRAMMES PRIVATE SECTOR

2.11 Consultation Strategy

63 As mentioned above, the CI NIIP process will involve close involvement of stakeholders. This has commenced with many meetings with key government, private sector and other agencies and will continue throughout the project. The programme of key consultation events is shown in Table 2.6 along with indications of how and when the CI NIIP events and outputs will be communicated publicly. It is proposed that all formal communications are made through regular communication channels on behalf of the IC and CIIC.

14 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Table 2.6 Programme of Proposed Consultations and Communication

Project Stage Consultations Communications*

Inception . Presentation to Development Communicate the start of preparing the Partners’ Meeting CI NIIP, with emphasis on country . Meetings with government, SOE, ownership, the scope of the CI NIIP and private sector, development consultation with stakeholders from partners and other stakeholders government, private sector and civil to introduce CI NIIP and to gather society. information on sector issues and programmes . Inception Workshop Project long-list . Continuation of stakeholder Communicate the process of development meetings for long-list preparation prioritization, the consultation process and Infrastructure and update of infrastructure and the linkages between the CI NIIP Status status and the government budget

Project prioritisation . Working group for initial Communicate on the fact that a draft prioritisation report has been produced and is now . Prioritisation workshop (all sent for comments to public and private national stakeholders) stakeholders. . Meeting with infrastructure committee to discuss prioritisation outcomes Draft CI NIIP . Presentation to key stakeholders Communicate on the priority projects, of Draft CI NIIP and distribution the underpinning funding strategy, the of Draft CI NIIP for comments to climate change assessment and the national stakeholders and consultative process. development partners * Channels of communication: local newspapers, radio, TV, (and social media, e.g. Twitter, if appropriate)

2.11.1 Outer Islands

64 Initial discussions have been held with IC and with OPM regarding possible mechanisms for actively involving outer islands stakeholders in the CI NIIP process. The travel times and distances to many of the islands mean that it is impractical for the CI NIIP team to either visit8 several of the islands or to assemble all the island mayors (or other representatives) in Rarotonga specifically for the CI NIIP. The intention is therefore that liaison with the Island Governments will be achieved through the Director for Outer islands in the OPM. It was also suggested that the current chair of the Mayor’s Forum is asked to represent the islands, and to attend the Prioritisation Workshop.

65 It is understood that there is a possibility that there could be a mayors’ meeting around the time of the Prioritisation Workshop. If this happens it is hoped that the mayors will attend the workshop.

8 The team leader visited Aitutaki and met with the Aitutaki Island Government

15 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

3 Infrastructure and Economic Overview

3.1 General

66 An Infrastructure Status Report will be submitted in April. This will describe the current situation for the infrastructure sub-sectors covered by CI NIIP and will include, amongst other things, the policy context, existing coverage and service levels, and demand analysis. At this stage an initial overview is provided below.

3.2 Geographic and Island Context

67 The Cook Islands faces many challenges in the provision of infrastructure. In particular, the country’s geography with 15 islands stretched over a distance of some 800 km presents enormous problems for meeting the population’s demands for urban services. Moreover, the need for achieving some sort of ‘island equity’ in infrastructure development is a key issue. Understanding the provinces, their locations, sizes and characteristics will therefore be very important for CI NIIP. A summary of island characteristics is shown in Table 3.1.

Table 3.1 Island Characteristics

Island Land Area Population Characteristics Km2 (% of total) (% of total) Rarotonga 67.1 13,095 Rarotonga – the most populated island and seat of government in (28.3) (73.6) the Cook Islands is a dominant rugged volcanic up thrust, with an outlying reef system and varying width lagoons. The population is generally spread around the lowlands and lower slopes of the island. The main township Avarua is the capital of the Cooks and its main commercial centre. Tourism is the predominant industry, followed by off-shore banking agriculture and fishing. Aitutaki 18.3 2,038 Aitutaki is 140 nautical miles from Rarotonga. (7.7) (11.5) The island is of atoll makeup with the population concentrated on the major land mass in its north western corner. The land here reaches to 260 metres above sea level. A large lagoon makes up approx 70% of its area. The island is serviced daily by a regular air service and usually receives two overseas cargo ships a month. Second most popular tourism island, many years ago Aitutaki was a major exporter of bananas. Mauke 18.4 307 Mauke is 150 nautical miles from Rarotonga. (7.8) (1.7) A small island mass made up of makatea (coral reef) with the community generally spread along the south western coast. It has an airfield and recently (2012) its harbour was upgraded. Maire eis (flower garlands) are its main export (to Hawaii). Mitiaro 22.3 189 Mitiaro is 142 nautical miles from Rarotonga. (9.4) (1.0) A small island mass made up of makatea with the community located generally in the one village known as Atai. It has an airfield and recently (2012) its harbour was upgraded. Manaue 6.2 Nil Manaue is 124 nautical miles from Rarotonga, located between (2.6) Atiu and Aitutaki (24 nautical miles). This island is made up of two separate land masses and a fringing coral reef with no easy passage to its lagoon. Once a thriving copra industry and a small airstrip operated on Manaue. Atiu 26.9 480 Atiu is 116 nautical miles from Rarotonga. (11.4) (2.7) A small harbour and airfield are located on the north western low lands while the interior rises up to 80 metres above sea level. The majority of the population and commercial activity operates on this higher land about the village of Areora in the centre of the island. Coffee is the main crop of Atiu grown in the valleys. Third most popular tourism island by visitor numbers. Mangaia 51.8 572 Mangaia is 110 nautical miles from Rarotonga. (21.9) (3.2) This island is the most southern of the Cooks group located to the south east of Rarotonga, also the oldest island in the Pacific being an upraised coral mass. Oneroa the main village is located on the western side of the island close to the small harbour (presently

16 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

being upgraded ) and airfield. The interior sits up to 70 metres above sea level and offers good agriculture land. Palmerston 2.1 60 Palmerston is 270 nautical miles from Rarotonga. (0.9) (0.3) A large coral atoll with fringing land scattered about its outer reef system. Its small population is located on one of the land masses on the south western corner. Access is by irregular shipping service from Aitutaki or Rarotonga. Subsistence living and fish exports to Rarotonga. Pukapuka 1.3 451 Pukapuka is 715 nautical miles from Rarotonga. (0.6) (2.5) An atoll with a number of separate land masses and a deep lagoon. The majority of the population resides on the northern land mass. A passage from the open sea to the lagoon enables supplies to be landed on the island. At the southern end of the island some 8 N miles, is a small airstrip. An open boat and barge operates to facilitate passengers to the main northern island. This island is the most western of the Cook islands. Nassau 1.3 73 Nassau is 673 nautical miles from Rarotonga. (0.6) (0.4) A small island mass with the community located generally in one village area on the south western corner. The closest island is Pukapuka a distance of 48 nautical miles away. Manihiki 5.4 239 Manihiki is 650 nautical miles from Rarotonga. (2.3) (1.3) An atoll with two separate land masses and a very deep lagoon. Each land mass has its own Village with the population being split equally between the two. The Village of Tukao on the north side supports a small airstrip and both Villages have their own respective harbours (recent contract for upgrading has been let). This island is the central of black pearl production for the Cook Islands. Rakahanga 4.1 77 Rakahanga is 674 nautical miles from Rarotonga. (1.7) (0.4) A small island with the population centralised in one area. This island’s access is by way of motor launch from Manihiki - a distance of 24 nautical miles. Some time ago the airport was destroyed by a cyclone and has never been rebuilt due to the need to re-site it to a more secure location. Penrhyn 9.8 213 Penrhyn is 737 nautical miles from Rarotonga. (4.1) (1.2) A large coral atoll with fringing land scattered about its outer reef system. The main village of Omoka is situated on the southern side and supports the majority of the population. The airfield and a deep water port within the lagoon is located in the Omoka village area.The deep water port is often used by fishing vessels who call to refuel. Suwarrow 0.4 NIL Suwarrow is 513 nautical miles from Rarotonga. (0.1) This island is a pure atoll with entry to its lagoon available through a large opening in the reef. The island is registered as a World Heritage Park. Many visiting international yachts stop here on their south Pacific ventures between April and October at which time two caretakers are positioned on the island. Total 236.7 17,794 Notes: 1. There are a total of fifteen islands - the one missing from the list above is Takutea, a bird sanctuary just off the coast of Atiu. 2. Atiu, Mauke, and Mitiaro islands are all close together to the east of Rarotonga being within 30 to 50 nautical miles from each other and are known locally as Ngaputoru.

3.3 Initial Economic Review 9 68 The Cook Islands is a middle income economy , which has made strong progress in measures of human development in education and health. The economy is largely dependent on tourism. Flows of official development assistance also make a significant contribution to the economy, while remittances from Cook Islanders overseas are thought to be less significant (though difficult to measure). Marine resources (fish and pearls) and agriculture make smaller contributions to the economy, and have shown little growth in recent years. The large exclusive economic zone of the Cook Islands (1.8 million square kilometres) provides potential for new industries such as extraction of sea-bed minerals, but realisation of this potential may be well into the future.

9 GDP per capita (of resident population) amounted to $24,200 in 2011.

17 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

69 While income levels are high, the economy is small and open. Economic performance is vulnerable to changes in international markets (particularly tourism source markets), and to natural disasters including cyclones and associated storm surges.

70 MFEM estimates that growth in real GDP slowed from 4.6 percent in 2011/12 to 3.2 percent in 2012/13. Growth is forecast to slow further to 1.8 percent in 2013/14, while declines in GDP are forecast in 2014/15 and 2015/16 amounting to 1.4 percent and 2.1 percent respectively. MFEM attributes this decline to slower forecast growth in tourism and decreases in aid commitments.

71 Tourism is concentrated on the islands of Rarotonga and Aitutaki, while source markets are becoming concentrated on New Zealand and Australia as longer haul markets have declined (possibly due to a combination of the global financial crisis, and security concerns in the international arena encouraging potential visitors to holiday closer to home). MFEM forecasts visitor arrivals to reach just under 128,000 in 2013/14 (having reached the 100,000 level for the first time in 2009), with annual visitor numbers now more than nine times current estimates of the resident population. Visitor expenditure is forecast to reach $222 million in 2013/14, equivalent to 52 percent of forecast nominal GDP.

72 Linked to its role in driving the economy, tourism is also the major driver of investment in economic infrastructure, particularly large scale infrastructure in Rarotonga and Aitutaki. A second driver of investment in economic infrastructure is the need to provide an adequate level of services to a population dispersed over a vast area of the Pacific Ocean (albeit in the face of a declining resident population, particularly in the outer islands).

3.4 Infrastructure Assessment

3.4.1 Existing Infrastructure

73 Data gathering was ongoing at the time of submitting this Inception Report. A summary of key infrastructure information by infrastructure sub-sector assembled to date is shown in

74 Table 3.2. The data presented here is an initial update of the table in the Concept Note for the CI NIIP. The details will be further ratified and expanded for the Infrastructure Status Report. Where appropriate the indicators used will be based on the PIPIs.

Table 3.2 Summary of Key Infrastructure

Sub-sector Summary of Infrastructure Performance Transport - Land Rarotonga Service Provider: Infrastructure Cook Islands (ICI) Total road network 295 km of which 70% sealed 2.7 km --- Hot Mix finish ------remainder chip seal.

Outer Islands: Service Provider: Outer Island Governments

Transport - Aviation Rarotonga and Aitutaki Service Provider: Cook Islands Airport Authority Rarotonga International Airport (concrete paved) 2013 Movements:* . International aircraft ------2,398 . International passengers ---- 266,516 . Domestic movements ------5,663 . Domestic passengers ------69,266 Aitutaki Airport (chip sealed) 2013 Movements : . Aircraft ------3,214 . Passengers ------55,573

Outer Islands: Service Provider: Outer Islands Councils, Administrations, Community Groups with technical support from MOIP and CIAA. Airports in Atiu, Mangaia, Mauke and Mitiaro in the Southern Group (coral runways) Airports and Manihiki, Penrhyn and Pukapuka in the Northern Group (coral runways)

*Movements include both in and out flights Transport - Maritime Rarotonga Service Provider: CI Port Authority (for Rarotonga and Aitutaki)

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1 International Port and 1 Cruise Jetty (for adverse weather conditions) . 2013 Rarotonga Port Statistics . Ship movements ------50 . Tonnage ------58,230 tonnes . No Containers ------2,376

Aitutaki . No Containers ------373

Outer Islands: Service Provider: Outer Island Governments (with technical support of MICI and CIPA) Wharves, anchorages, jetties

Water supply & Rarotonga: sanitation Service Provider: Infrastructure Cook Islands Number of connections: ------5,400 Population served: ------8,400 Volume of water produced: ------7.20 m3/day/connection Coverage in service area: ------92 % Hours per day service: ------24 Water tariff: ------Nil

Outer Islands Service Provider: Outer Island Governments Small distribution systems in some islands Rainwater tanks

Solid Waste Rarotonga: Management Service Provider: Infrastructure Cook Islands --- WATSAN Unit Rarotonga Landfill and settling ponds in Rarotonga Collection by private contractors: Approximately 320 tonne per month in bales. Tipping fees at the landfill . Car Boot & small truck ------$ 10 . Utility & commercial Bin/Skip --- $ 20 . Truck Load ------$ 40 . Liquid Waste ( 4000 Lts ) ------$ 50

Outer Islands Service Provider: Outer Island Governments Dump sites at Outer Islands

Energy/Power Rarotonga Service Provider: Te Aponga Uira (100% CIG) Generation Capacity ------12.7 MW, Actual Capacity ------10.25 MW, Peak Demand ------4.49MW Customers: ------4,631 Average tariff: ------NZD 0.78 per kwh Solar Input to grid ------700 Kw

Outer Islands Service Provider: Outer Island governments with technical support of MICI/TAU Generators and small distribution systems

Cook Islands ICT Service Provider: Telecom CI (40% CIG/60% Telecom NZ). Mobile subscribers ------11,500 Landlines, ------7,800 available to 98% of the population Broadband connections, ------2,700 available to 98% of the population Underground fibre cable loop around Rarotonga 3 G mobile internet service start up 1st March 2014.

3.5 Sector and Sub-sector Planning

75 Existing sector plans, strategies and studies are summarised in Table 3.3. The status of sector plans and strategies varies across infrastructure sub-sectors. For the sub-sectors without existing comprehensive investment strategies the team will assemble information from corporate plans, business plans, and other policy statements.

19 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

76 The prioritisation process in CI NIIP will have to allow for the different levels of information available between sub-sectors. This will require a careful balancing act to ensure some commonality between sub-sectors but also not losing significant information available in the sub- sectors with more extensive data.

Table 3.3 Existing Sector Plans and Studies

Sector/Sub-sector Sector Plans and Studies Transport - Land Te Kaveinga Nui National Sustainability Development Plan (NSDP) 2011-2015 Priority Area 2 provides in broad statements the strategy for improving transport infrastructure and road management.

Strengthening Disaster Management and Mitigation (Component 2: Preventative Infrastructure Master Plan) (PIMP) 2007 identifies priority projects for implementation over the short and long term.

Ministry of Infrastructure and Planning / Infrastructure Cook Islands Business Plan 2013/14 (Output 2) includes the development of a 3-year road sector plan for Rarotonga, plans and designs for upgrading 15 roads on Rarotonga, and the completion of 5 kilometres of road improvements in Avarua (Project City).

Transport - Aviation NSDP 2011-2015 Priority Area 2 prioritises improvements to airstrips and terminals on Aitutaki, Atiu, Manihiki and Mangaia.

IMP 2007 prioritised international and domestic airstrip and terminal upgrade projects on Rarotonga, Penrhyn and Manihiki, and recommended a comprehensive transport policy study.

ADB TA7287 Infrastructure Services Improvement Mid-Term Report September 2010 includes a draft transport policy (yet to be adopted).

Airport Authority Statement of Corporate Intent 2013/14-2015/16 outlines plans to develop and upgrade airport infrastructure on Rarotonga and Aitutaki.

Airport Feasibility Study Project Aitutaki, Atiu, Manihiki and Mangaia in the Cook Islands Report July 2013 outlines the scope of improvements and cost estimates.

Ministry of Transport Business Plan 2013/14 key deliverables includes the development of a 10-year Transport Plan to provide guidance for planned initiatives.

Transport – NSDP 2011-2015 Priority Area 2 identifies priority port development projects to be Shipping (Ports) implemented.

Ports Authority Statement of Corporate Intent 2013/14-2015/16 outlines plans to develop and upgrade port infrastructure on Rarotonga and Aitutaki.

Ministry of Infrastructure and Planning / Infrastructure Cook Islands Business Plan 2013/14 (Output 2) includes completion of and designs for new harbour developments in the outer islands.

Water Supply and NSDP 2011-2015 Priority Area 2 outlines the strategy for improving community Sanitation access to water.

CI National Integrated Water Resources Policy 2013 (draft) establishes policies that will guide planning, actions and efforts in ensuring the sustainable management of water resources in the Cook Islands.

Water Supply Master Plan for Rarotonga (draft) sets out the overall objectives of the Te Mato Vai water partnership project and defines the design scope and standards, level of water treatment, and total project cost estimates.

Cook Islands Sanitation Policy 2013 establishes the principles and objectives that form the framework for future sanitation strategies, plans and solutions that will address the sanitation needs of the Cook Islands.

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Sanitation in the Cook Islands 3-year Plan 2013-2016 outlines the activities to be undertaken to improve sanitation systems and monitoring on Rarotonga and Aitutaki, and to scope the upgrades on other outer islands.

Public Health (Sewage) Regulations 2008 and Public Health Sewage Code 2008 sets out the minimum standards for domestic and commercial sanitation systems.

Ministry of Infrastructure and Planning / Infrastructure Cook Islands Business Plan 2013/14 (Output 4) supports the delivery of water and sanitation improvement initiatives.

Solid Waste NSDP 2011-2015 Priority Area 2 sets the policy for the National Solid Waste Management Management Strategy (NSWMS).

NSWMS 2013-2016 outlines the priority areas and key objectives, and sets the way forward. It includes putting in place the legal and funding framework to support waste management and control.

Ministry of Infrastructure and Planning / Infrastructure Cook Islands Business Plan 2013/14 (Output 4) includes implementation of the NSWMS priority activities.

Energy/Power NSDP 2011-2015 Priority Area 3 sets out government’s policy, goals and key objectives for transforming the country’s electricity sector, from fossil fuel to renewable energy sources.

The CI Renewable Energy Chart (CIREC), CIREC Implementation Plan and CIREC Implementation Plan Island Specific sets the strategy and approach on energy transformation targets. The Plans will be reviewed in 2013/14 to reflect the revised timeframes and financing plans for each island.

Te Aponga Uira Statement of Corporate Intent 2013-14-2015/16 outlines plans to develop and upgrade energy generation and grid infrastructure on Rarotonga, to meet 100% renewable energy targets set out in the Renewable Energy Chart.

Office of the Prime Minister Business Plan 2013/14 outlines the timeframe for renewable energy developments on each island and energy efficiency programmes, and its plans for reducing energy demand.

Aitutaki Power Supply Business Plan 2013/14 includes plans to maintain and upgrade the reticulation network system on Aitutaki (transfer from overhead to underground).

ICT NSDP 2011-2015 Priority Area 2 outlines the strategy for improving telecommunications, including strengthening regulatory frameworks that result in better infrastructure and services.

National ICT Policy 2010 is the policy document with the objective of providing an ICT strategic framework to facilitate the socio-economic development of the Cook Islands.

Office of the Prime Minister Business Plan 2013/14 outlines its plans to develop an ICT Strategic Action Plan to effectively implement the National ICT Policy, with appropriate Monitoring and Evaluation framework in place. The plan will be implemented from 2014/15 onwards.

Multi-sector Joint National Action Plan on Disaster Risk Management and Climate Change Adaptation 2011-2015 (JNAP DRM CCA) outlines the policy, strategies and financing plans for strengthening key coastal infrastructure, promoting long term water security and strengthening sanitation infrastructure, and strengthening energy transportation, supply and storage systems in the outer islands (Strategic Area 4).

Tourism Master Plan 2005-2015

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Appendices

A Work Plan B Responsibilities for infrastructure C Criteria used in other National Infrastructure Investment Plans D Example of MFEM project sheet E List of projects from 20-Year Infrastructure Master Plan F Documents obtained

22 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Appendix A - Proposed Work Plan

Work Plan February March April May June July 3 10 17 24 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 30 Easter Stage 1: Infrastructure Needs Analysis 1 Contact stakeholders, data collection 2 Review NSDP, IMP 2007 and prepare workplan and Inception Report 3 Review forecasts, policies, strategies, standards and demands 4 Review service levels, sector plans and supply gaps 5 Long list of projects and complementary measures for infrastructure, 6 Climate change overview 7 Prioritization methodology for project ranking 8 Review Govt Budget, cost recovery of SOE's & other fudning sources 9 Inception Workshop 10 Long list of costed project interventions, infrastructure status report Stage 2: Options Prioritization and Plan Formulation 11 Shortlist of prioritized and costed projects 12 Assess climate/disaster risks, quantify costs and benefits 13 Prioritisation working group 14 Prioritisation workshop 15 Prepare funding strategy, implementation schedule, Govt budgeting 16 Draft CI-NIIP for submission to the Government and PCO 17 Review of Draft CI-NIIP by government and development partners 18 Final CI National Infrastructure Investment Plan

Team Leader (3 months) National Engineer (3 months) Economist (1.5 months) National Financial Expert (2 months) Climate Change Specialist (1 month) Field Home

23 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Appendix B - Responsibilities for Infrastructure

Scope of Services Institution Providing Regulation/ Planning/ Policy Sector Services Monitoring National Development Policy & Planning PM National Sustainable Policy & Planning Planning Office Development PM Office Committee

Economic MFEM MFEM MFEM

Land ICI/Justice ICI/Justice Policy & Planning PM Office NB: No zoning plans

Transport – Roads Rarotonga ICI ICI/Police ICI/Police/ Land Transport ICI Roads Pa Enua Is Council /OPM Island Council

Transport – Airports (Pa Enua) Island Govt Min of Transport/ Island Govt/OPM Aviation Island Govt Airport International Airports (2) Airport Authority NZ Civil Aviation Authority/CIIC Organisation/ Min of Transport Transport – Inter Island Private Min of Transport OPM Shipping Rarotonga & Ports Authority Ports Authority Ports Aitutaki Ports Authority/CIIC

Other Pa Enua Ports Island Govt/ICI Not regulated Island Govt/OPM

Water Rarotonga ICI Environment/Health/ ICI Supply ICI

Pa Enua Island Govt Health Island Govt/OPM

Sanitation National Private Public Health Health/ICI

Drainage National Private/ICI ICI ICI

Solid Waste Rarotonga ICI Environment/Health ICI Management Pa Enua Island Govt Environment Island Govt/OPM

Telecom/ National Telecom Cook Islands Telecom Act OPM ICT No regulatory body

Energy/ Rarotonga Te Aponga Uira TAU Board TAU/Energy Power Commission

Aitutaki Aitutaki Power Supply Island Govt Energy Commission

Pa Enua excl Island Govt Island Govt/ICI Energy Aitutaki Commission

24

Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Appendix C - Criteria used in other National Infrastructure Investment Plans

Stage Tonga Samoa Vanuatu Tuvalu Nauru Solomon Islands Tonga NIIP2

Initial Strategic Merit Strategic alignment Strategic alignment - No initial screening No initial screening Strategic Alignment - Strategic alignment - Screening - consistent with national - alignment with SDS, consistency with Projects which do not consistency with strategic and corporate other Government government policy fit with overall socio- government policy objectives, policy statements, economic development - any significant relevant sector plan; Readiness - strategies; Timing – impediments to - sector-wide approach checking that the Affordability - Whether the project will implementation? to planning; project will be ready to Projects which are be ready in the next 5 - project definition and proceed within the clearly not affordable years assumptions; timeframe of VISIP, within the timescale; - environmental noting any key issues and sustainability. requiring resolution Timing - before project Projects which are implementation, and unlikely to be ready for noting availability of implementation within cost-benefit analysis. the next 5 – 7 years, either because they require primary legislation, have major land ownership issues, or are only at a very early stage of development.

Criteria

Policy Policy - Policy - Will the project Will the project contribute towards contribute towards meeting long term meeting long term National Sustainable National Sustainable Development Plan Development Plan goals? goals? Addresses Long Term Addresses Long Term Goals Addresses Short Goals Addresses Short Term Goals Term Goals

Economic/ Economic: the extent to Economic Financial and Economic - Economic - Economic – Economic - Financial which the project (employment Economic - Will the project Will the project Is the scheme likely to Whether the project delivers benefits in generation, effect on the Impact on costs and contribute to national contribute to national support identified areas creates new economic terms of economic and cost/quality of efficiency of economic development economic development of investment and opportunities, private sector infrastructure services); infrastructure users and growth? and growth? growth, providing especially through development or Ability to meet on-going Does it add to Exports – Does it add to Exports – infrastructure to unlock improving access to infrastructure service costs (operation and Foreign Exchange Foreign Exchange key elements of these markets, with flow on

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Stage Tonga Samoa Vanuatu Tuvalu Nauru Solomon Islands Tonga NIIP2 efficiency/capacity or maintenance) Potential to enhance Potential to enhance projects? effects such as job conversely, the adverse Impact on economic private sector activity private sector activity Will the scheme help to creation. impact if the project growth and employment and jobs and jobs remove barriers to Whether the project does not go ahead; and Optimal utilisation of Is this project critical to Is this project critical to trade, by removing reduces the cost to existing infrastructure continuing an existing continuing an existing infrastructure consumers and/or the essential service? Does essential service? Does constraints such as cost of supply (through the project contribute to the project contribute to transport, efficiency gains). other sectors? other sectors? communications and Whether the project Financial - Financial - reliable power maintains or increases Will the project Will the project supplies? capacity to cater for contribute to national contribute to national Does the scheme have demand for services, revenue? revenue? the potential to support especially demand Is there potential for Is there potential for expansion of the arising from increased user charges to cover user charges to cover tourism industry? economic activity. full cost of service? full cost of service? Does the project cover Does the project cover the costs of O&M? O&M? Have all other Have all other refurbishment and refurbishment and repair options been repair options been exhausted for this exhausted for this service? service? Social Social: the extent to Social (access to social Social - Social - Social - Social – Social – which project enhances opportunities and Social access (access Will the project lead to Will the project lead to Will the scheme Whether the project the quality of life of interaction); to key social services improved living improved living provide affordable improves access to Tongans (especially such as health and standards? standards? transport, energy, social services and those on outer islands), education) Contributes to meeting Contributes to meeting water supply and opportunities, including taking into account Number of beneficiaries minimum level of minimum level of sanitation infrastructure education and health factors such as access Gender impact service standards Does service standards Does to support socio- services, recreation to Other social benefits it enhance service it enhance service economic development etc. social/educational/health (e.g. serving rural delivery? delivery? and income Whether the project services and quality of communities, poverty Does it lead to health Does it lead to health generation? extends basic service basic services alleviation, improving improvements improvements What is the total coverage to new areas (coverage, safety) population served by and/or more people. safety/security, the scheme? Whether the project reliability); Will the scheme improves the overall specifically support the quality, reliability, or household and income safety of infrastructure generation activities of services delivered to women, reducing the consumers. burden for basic tasks, whilst improving women's and children's health and nutrition? Will the scheme assist in improving access to and delivery of

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Stage Tonga Samoa Vanuatu Tuvalu Nauru Solomon Islands Tonga NIIP2 healthcare and education? Environmental Environment: the Environment (climate Environmental - Environmental - Environmental - Environmental – Environmental – positive/negative impact change mitigation, other Impact on land and Will the project Will the project Will the scheme Whether the project on environmental environmental impacts); water resources contribute to a better contribute to a better improve the impacts on ambient sustainability and Disaster management (inverted scale where environment? environment? environment or enable soil, water, or air climate change; factors (climate change impact is negative) Directly improves the Directly improves the actions to protect the quality. adaptation, disaster Susceptibility to climate physical environment physical environment environment, reduce Whether the project preparedness) change and natural Has no negative Has no negative pollution and damage impacts on terrestrial disasters (inverted environmental impacts environmental impacts to the environment, or and/or marine scale) improve sustainability? ecosystems. Environmental benefits Institutional Institutional - Strength of institutional and regulatory environment Sector plan or sector study available Readiness Readiness: this criteria Readiness - Readiness - has two dimensions (a) What is the Project’s What is the Project’s whether preparatory readiness? readiness? work has already How advanced in the How advanced in the defined the project in planning stage? planning stage? How sufficient detail to make How advanced is ID of advanced is ID of a it ready to proceed; and a development partner. development partner. (b) whether adequate Are there land or social Are there land or social institutional and financial owner impacts owner impacts structures are in place that will allow full value return from the investment. For projects that fail this criterion, further preparatory work (such as institutional strengthening or business model reform) is necessary before the project proceeds. Maintenance Maintenance - Maintenance - Maintenance – Maintenance will be Maintenance will be Are the ongoing adequate? adequate? maintenance and Is there the current Is there the current operational costs of the technical capability to technical capability to scheme affordable maintain infrastructure? maintain infrastructure? either through scheme Is there an appropriate Is there an appropriate generated revenues or organizational structure organizational structure SIG support? to maintain to maintain

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Stage Tonga Samoa Vanuatu Tuvalu Nauru Solomon Islands Tonga NIIP2 infrastructure? Is there infrastructure? Is there the financial capacity to the financial capacity to maintain infrastructure? maintain infrastructure? Dependency Project dependency - - are there viable alternatives that have not been fully investigated? - is the project so highly inter-linked with other possible projects that it cannot be considered separately? - does the project rely on other things happening first or at the same time so that it can deliver its full value? Climate Climate Change – Climate Change/DRM Change/ DRM Can the scheme Whether the project improve Solomon has an existing or Islands resilience to potential DRM or the effects of climate climate change change and natural adaptation function. hazards? Whether the project is Is the scheme robust able to cope with the against the effects of potential effects of climate change and climate variability or natural hazards? climate change. Whether the project has an impact on GHG emissions. Sustainability Technical – Financial – Does the scheme Whether the project is utilise or connect well able to support the with existing ongoing costs of infrastructure? operation and Does the scheme use maintenance through appropriate technology user charges etc. for Solomon Islands? Technical – Institutional – Whether the Does the scheme technology used in the promoter have the project is appropriate, capacity to manage the and able to be implementation of the operated and scheme, to budget and maintained. programme, and is Institutional –

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Stage Tonga Samoa Vanuatu Tuvalu Nauru Solomon Islands Tonga NIIP2 there a clear and Whether the institution approved sector responsible for the strategy? project has sufficient capacity for implementation, operation and maintenance.

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Appendix D – Example of MFEM Project Sheet

Capital Project Title Pa Enua Renewable Energy Projects – Land Acquisition New or Existing Existing Program Strategies Compensation for acquisition of land (taken by warrant or lease) in the Pa Enua for Renewable Energy farms. Ongoing / One off – timeframe 2 years commencing 2013/14

Approach to Market Land is identified by the Renewable Energy Development Division at the Office of the Prime Minister and legalised by CIIC and Crown Law Office. Background on the proposed This project supports the Renewable Energy Chart to transform 50% of the Northern Capital Project/Purpose Group Islands Electricity System to Renewable Energy and at the same time increase the renewable energy uptake for the rest of the Islands. The initiative will cover legal fees, land compensation and associated costs for acquiring the land required for solar farms and power stations in the Pa Enua.

This project is aligned to the 2011-15 NSDP and 13/14 Budget Policy Statement priorities: - NSDP Priority 1: Vibrant Cook Islands Economy

- NSPD Priority 2: Infrastructure for Economic Growth, sustainable livelihoods and resilience

- Budget Policy Statement 2: Investing in Infrastructure

- Budget Policy Statement 3: Progressing energy security

Capital Breakdown 2014-15 2015-16 2016-17

Feasibility Design Costing Procurement 1,910,000 0 0 Construction Retention Total Cost 1,910,000 0 0

Current estimated costs is $XXXX per ¼ acre or $XXXX per m2. Per island cost is approximately: Rakahanga Warrant 5.662 m2 $ XXXX Manihiki – Tukao Warrant 8,498 m2 $XXXX Manihiki – Tauhunu Warrant 6,626 m2 $XXXX Penryhn – Omoka Warrant 4,570 m2 $XXXX Penryhn – Te Tautua Warrant 3,192 m2 $XXXX Pukapuka Agreement 9,031 m2 $XXXX Nassau 4,021 m2 $XXXX Palmerston Agreement 4,057m2 $XXXX Mitiaro 2,500m2 $XXXX Mauke 14,450m2 $XXXX Mangaia 14,725m2 $XXXX Atiu 6,000m2 $XXXX Aitutaki 20,000m2 $XXXX

Total Estimate for Land Acquisition $XXXX

Coordination with other Crown Law Office, REDD-OPM, Ministry of Justice, ICI, CIIC, Islands Councils Government Departments/ Organisations Other Funding Sources - Authority Reference (legislative or - cabinet minute) Strategic Objectives Activity/Key Objectives Standards/Targets

Administer, manage and acquire all Government’s land interests All land required for solar energy in the Pa CIGPC/Crown interests in land in particularly Leasehold interests are Enua is successfully acquired by the Crown, accordance with best commercial secured by 30 June 2015. practices and good governance principles.

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Appendix E - List of Projects from 20-Year Infrastructure Master Plan

Time Project ID Project Name Cost Estimates (NZ$M) Frame Capital O&M AIR TRANSPORT SECTOR 1-5 ATW06PYE Penrhyn Airport Improvement 0.8 0.1 Years ATW05MHX Manihiki Airport Improvement 0.8 0.1 ATW07PZK Pukapuka Airport Improvement 0.8 0.1 ATW08RAR Rarotonga Airport Passenger Terminal Improvement 3.5 SHORT TERM TOTAL 5.8 0.2 Medium ATW09RAR Rarotonga Airport Cyclone Protection Works 5.0 to Long ATW01AIU Atiu Airport Improvement 0.8 0.1 Term ATW03MUK Mauke Airport Improvement 0.8 0.1 ATW04MOI Mitiaro Airport Improvement 0.8 0.1 ATW02MGS Mangaia Airport Development 5.0 0.1 ATW10AIT Aitutaki Airport Improvement for International Operations 13.0 OVERALL TOTAL FOR AIR TRANSPORT SECTOR 31.0 0.5

MARINE TRANSPORT SECTOR 1-5 MTW01AIU Atiu Harbour Repairs 0.2 0.1 Years MTW05MHX Manihiki Harbours Reconstruction 2.4 0.1 MTW06NAS Nassau Harbour Development 0.3 0.1 MTW02MGS Mangaia Harbour Reconstruction 2.2 0.1 MTW03MUK Mauke Harbour Reconstruction 1.8 0.1 MTW04MOI Mitiaro Harbour Reconstruction 2.5 0.1 MTW07PYE Penrhyn Harbour Rehabilitation 0.9 0.1 MTW10RAR Avatiu Harbour Western Basin Development Completion 2.0 0.0 SHORT TERM TOTAL 12.3 0.6 Medium MTW11RAR Avatiu Container Facilities Development 3.5 0.0 to Long MTW14RAR Avarua Waterfront Protection 20.0 0.0 Term MTW08PZK Pukapuka Jetty Development 0.3 0.1 MTW09RAK Rakahanga Harbour Improvement 0.0 0.1 MTW12RAR Avatiu Harbour Waterfront Development 1.5 0.0 MTW13RAR Avatiu Harbour Expansion 20.0 0.0 MTW15AIT Aitutaki Harbour Development 5.0 0.0 OVERALL TOTAL FOR MARINE TRANSPORT SECTOR 62.6 0.7

ROAD TRANSPORT SECTOR 1-5 RTW07RAR Inner Ring Road Improvement Nikao-Takuvaine 2.0 0.0 Years RTW01RAR Rarotonga Road Safety Program 0.9 0.1 RTW06NAT Outer Islands Road Improvement Program 2.4 0.1 RTW02RAR Rarotonga Traffic Management Improvements 0.3 0.1 RTW05AIT Aitutaki Road Improvements 3.3 0.2 SHORT TERM TOTAL 8.8 0.4 Medium RTW03RAR Rarotonga Main Ring Road Rehabilitation 30.0 0.3 to Long RTW04RAR Rarotonga Inner Ring Road Development 12.0 0.0 Term OVERALL TOTAL FOR ROAD TRANSPORT SECTOR 50.8 0.8

WATER SUPPLY SECTOR 1-5 Replacement of old sections of the distribution sub-main on 3.2 Years Rarotonga WSW02RAR Installation of distribution system isolation valves on Rarotonga 0.2 0.0 WSW19MUK Mauke water supply distribution system upgrade 1.1 0.0

31 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

Time Project ID Project Name Cost Estimates (NZ$M) Frame Capital O&M WSW17MGS Mangaia water supply distribution system upgrade 1.8 0.0 WSW14NGI Northern islands community rainwater catchment & storage 0.2 0.0 refurbishment WSW15NGI Supply and installation of household rainwater systems for northern 1.2 0.0 islands WSW07AIT Aitutaki water supply headworks upgrade 0.4 0.0 WSW18AIU Atiu water supply system upgrade 0.5 0.0 WSW20MOI Mitiaro water supply system upgrade 0.8 0.0 SHORT TERM TOTAL 9.4 0.1 Medium WSW01RAR Rarotonga distribution network rehabilitation 3.0 0.2 to Long WSW04RAR Supply and installation of property connection meters on Rarotonga 1.2 0.0 Term WSW03RAR Construction of Rarotonga water treatment facilities 7.0 0.4 WSW11SGI Construction of disinfection facilities on the southern islands 0.2 0.0 WSW09AIT Construction of Aitutaki water treatment plants 1.5 0.2 WSW13NGI Northern islands EMC water storages rehabilitation/construction 0.1 0.0 WSW05RAR Rarotonga water loss reduction program 0.5 0.0 WSW06SGI Southern islands EMC water storages rehabilitation/reconstruction 0.1 0.0 WSW12SGI Installation of property service meters on the southern islands 0.5 0.0 OVERALL TOTAL FOR WATER SUPPLY SECTOR 23.5 1.1

SANITATION SECTOR 1-5 SNW01RAR Construction of Rarotonga village sewerage networks – Stage 1 4.5 0.2 Years SNW03RAR Rehabilitation of Tereora/Tepuka neighbourhood sewerage system 0.3 0.0 SHORT TERM TOTAL 4.8 0.3 Medium SNW02RAR Construction of Rarotonga village sewerage networks – Stage 2 2.0 0.2 to Long SNW06AIT Construction of Aitutaki village sewerage networks 3.5 0.1 Term SNW12NGI Construction of septage treatment facilities on the northern islands 0.2 0.0 SNW05RAR Improvement of effluent disposal systems in foreshore areas of 0.0 0.0 Rarotonga SNW08SGI Review adequacy & upgrade sanitation facilities at EMC on 0.3 0.0 southern islands SNW09SGI Construction of septage treatment facilities on the southern islands 0.1 0.0 SNW10NGI Review adequacy & upgrade sanitation facilities at EMC on 0.2 0.0 northern islands OVERALL TOTAL FOR SANITATION SECTOR 11.0 0.6

SOLID WASTE MANAGEMENT SECTOR 1-5 SWW01RAR Construction of Rarotonga solid waste transfer station 0.5 0.0 Years SWW02RAR Rarotonga hazardous waste handling facilities upgrade 0.5 0.1 SHORT TERM TOTAL 1.0 0.1 Medium SWW05SGI Construction of new landfill sites on the southern islands 0.6 0.0 to Long SWW03RAR Construction of Rarotonga compost facilities 0.5 0.1 Term SWW09NGI Construction of new landfill sites on the northern islands 0.8 0.1 OVERALL TOTAL FOR SOLID WASTE SECTOR 2.9 0.2

ENERGY SECTOR 1-5 Aitutaki eletricity generator replacement 0.9 Years Rakahanga stand-by generator repair 0.0 Rakahanga wind power generator erection 0.1 ENW09AIU Atiu electricity supply distribution system upgrade 1.2 0.2 ENW02PYE Exchange of Penrhyn generators 0.0 ENW03NAT Outer islands electrical wiring standardisation program 0.2 0.0 ENW04PZK Pukapuka electricity supply upgrade 2.5 SHORT TERM TOTAL 4.9 0.2 Medium ENW16RAR Construction of second Rarotonga power station 35.0 1.5 to Long ENW05SGI Southern islands electricity supply systems rehabilitation program 1.2 0.2 Term ENW06NGI Northern islands electricity supply systems rehabilitation program 1.0 0.2

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Time Project ID Project Name Cost Estimates (NZ$M) Frame Capital O&M ENW07NGI Electricity supply system upgrades on Manihiki and Rakahanga 0.8 0.1 ENW08MGS Mangaia electricity supply system upgrade 0.4 0.1 ENW32AIT Aitutaki high voltage electricity supply distribution system upgrade 1.5 0.2 OVERALL TOTAL FOR ENERGY SECTOR 44.8 2.4

MAINTENANCE FACILITIES 1-5 MFW05NGI Construct Northern Group regional facility for repair of plant and 0.2 0.1 Years machinery MFW03SGI Build new facilities and supply tools for Aitutaki, Atiu and Mauke 0.6 0.2 MFW04NGI Build new facilities and supply tools Rakahanga, Palmerston and 0.5 0.2 Nassau MFW01SGI Modify and refurbish facilities and supply tools on Mangaia, and 0.3 0.1 Mitiaro MFW02NGI Modify and refurbish facilities on Penrhyn and Pukapuka 0.3 0.1 OVERALL TOTAL FOR MAINTENANCE FACILITIES 1.8 0.6

EVACUATION MANAGEMENT CENTRES 1-5 EMW04NGI Construct and furnish new EMC on northern islands 6.1 0.1 Years EMW03MHX Complete repair works on Manihiki facilities 0.4 0.0 SHORT TERM TOTAL 6.5 0.1 Medium EMW02SGI Modify and refurbish existing facilities on southern islands 1.7 0.2 to Long EMW01RAR Refurbish existing facilities on Rarotonga 0.9 0.1 Term OVERALL TOTAL FOR EVACUATION MANAGEMENT CENTRES 9.1 0.3

OVERALL TOTAL FOR ALL SECTORS FOR SHORT TERM PROJECTS 55.2 2.6

OVERALL TOTAL FOR ALL PROJECTS FOR ALL SECTORS 237.5 7.3

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Appendix F – Documents Obtained

ADB Country Operations Business Plan Cook Islands, 2014-2016, August 2013 ADB Proposed Policy-based Loan for Subprogram 2 Cook Islands: Economic Recovery Support Program, RRP, October 2012, ADB Cook Islands Avatiu Port Development Project, RRP, November 2008, ADB Cook Islands Avatiu Port Development Project, Supplementary Loan, PAM, February 2011, ADB 2011 Cook Islands Population Census Report, Statistics Office, MFEM, December 2012 2014 Pacific Infrastructure Performance Indicators (PIPIs), Water and Sanitation, Energy, Transport Sub-Sector, PRIF 2014 Airport Feasibility Study Project Aitutaki, Atiu, Manihiki and Mangaia, Consultants’ Final Report, July 2013 Avatiu Port Project RRP, ADB, March 2011 Climate and Disaster Compatible Development Policy 2013-2016, Cook Islands Government, Climate Risk Assessment for Avatiu Port and Connected Infrastructure, Water Research Laboratory, University NSW, October 2013 Coastal Adaptation Needs for Extreme Events and Climate Change, Avarua, Rarotonga, Project Stage 1: Scoping and Collation of Existing Data, Water Research Laboratory, University NSW, October 2013 Coastal Adaptation Needs for Extreme Events and Climate Change, Avarua, Rarotonga, Project Stage 2: Topographic and Bathymetric Survey Data Collection, Water Research Laboratory, University NSW, November 2013 Coastal Adaptation Needs for Extreme Events and Climate Change, Avarua, Rarotonga, Project Stage 3: Coastal Engineering Vulnerability Assessment, Water Research Laboratory, University NSW, November 2013 Cook Islands 2014-15 Budget Policy Statement and 2013-14 Half-Year Economic & Fiscal Update, MFEM, December 2013 Cook Islands Economic Report, ADB, AusAID, 2008 Cook Islands Government Procurement Review Report, May 2012 Cook Islands Ministry of Infrastructure and Planning, Review, Final Report, Local Government New Zealand Cook Islands National Strategy for the Development of Statistics, Roadmap, 23 Aug 2013 Cook Islands National Strategy for the Development of Statistics, Strategic Planning Workshop Outcome Report, February 2014 Cook Islands National Waste Strategy, Consultants’ Report, November 2004 Cook Islands Renewable Energy Chart Implementation Plan - Island Specific, OPM, February 2012 Cook Islands Renewable Energy Chart Implementation Plan, OPM, February 2012 Cook Islands Water Snapshot, MOIP, 2012 Cook Islands, Budget Estimates 2013-2014, Budget Book 1 - Appropriation Bill, MFEM, June 2013 Cook Islands, Budget Estimates 2013-2014, Budget Book 2 - Ministry Budget Statements, MFEM, June 2013 Cook Islands, Budget Estimates 2013-2014, Budget Book 3 - Capital Plan, MFEM, June 2013 Development of a Water Utility Benchmarking System, Pacific Water and Wastes Association, December 2011 Economic Analysis of Cook Islands Air Route Underwrite Agreements, Covec, 2013 Infrastructure Maintenance in the Pacific, Challenging the Build Neglect Rebuild Paradigm, PRIF, 2013 Infrastructure Maintenance in the Pacific, Summary Paper, PRIF 2013 Infrastructure Services Delivery Improvement, ADB TA 7287, Mid-Term Report Appendices, September 2010 Infrastructure Services Delivery Improvement, ADB TA 7287, Mid-Term Report, September 2010 Joint National Action Plan for Disaster Risk Management and Climate Change Adaptation 2011-2015,January 2012 Millennium Development Goals Report June 2010

34 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014

National Sustainable Development Plan 2011-2015 National Sustainable Development Plan Workshop 2: Principles of Strategic Planning and developing a Forward Work Program, 3-6 February, 2014 National Sustainable Development Plan, UNDAF Results Matrix, December 2012 Nauru Economic Infrastructure Strategy and Investment Plan, Final Report, November 2011 O3b Presentation by Mike Mullis at APT Aug 2013 Pacific Infrastructure Performance Indicators, PRIF 2011 Peer Review of Cook Islands, Aide Memoire, Forum Compact, PIFS, Final Report, January 2014 PIPIs Final Edition 2 November Preparing the Infrastructure Development Project, ADB TA 7022, Volume 3 Water Supply and Sanitation, April 2009 Preparing the Infrastructure Development Project, ADB TA 7022, Volume 4 Power Sector, April 2009 Preparing the Infrastructure Development Project, ADB TA 7022, Volume 5 Poverty, Social and Gender, April 2009 Preparing the Infrastructure Development Project, ADB TA 7022, Volume 9 Profiles of Small Projects, April 2009 Preventive Infrastructure Master Plan, ADB TA 4605-COO Strengthening Disaster Management And Mitigation, Consultants’ Report, March 2007 Private Sector Trade Directory, January 2014 Proceedings of the Pacific Regional Consultation on Water in Small Island Countries – Country Briefing Papers Rarotonga & Aitutaki Waste Management Facilities, Consultants’ Independent Review, August 2009 Review and Assessment of National Infrastructure Investment Plans, Independent Review for PRIF, May 2013 Samoa National Infrastructure Strategic Plan Annexes Feb 2011 Samoa National Infrastructure Strategic Plan, Main Report, Feb 2011 Solomon Islands NIIP June 2013 Te Aponga Uira - Cook Islands Electricity Annual Report, 2011-2012 Te Mato Vai - Water Supply Master Plan for Rarotonga, Draft Report, AECOM, October 2013 Telecom Pricing History Presentation, Telecom CI, Feb 2010 Tonga NIIP Final Report, October 2010 TONGA NIIP REVIEW Tonga NIIP2 DRAFT Annexes 2013 Tourism Master Plan 2005-2015 Vanuatu Infrastructure Strategic Investment Plan, Final Report, August 2012

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