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Report and Recommendation of the President to the Board of Directors Project Number: 51268-001 November 2020 Proposed Grant Independent State of Samoa: Central Cross Island Road Upgrading Project Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB's Access to Information Policy. CURRENCY EQUIVALENTS (as of 19 October 2020) Currency unit – tala (ST) ST1.00 = $2.621 $1.00 = ST0.381 ABBREVIATIONS ACDMD – Aid Coordination and Debt Management Division ADB – Asian Development Bank COVID-19 – coronavirus disease EIRR – economic internal rate of return EMP – environmental monitoring plan GHG – greenhouse gas km – kilometer LTA – Land Transport Authority MNRE – Ministry of Natural Resources and Environment MOF – Ministry of Finance MWTI – Ministry of Works, Transport and Infrastructure O&M – operation and maintenance PAM – project administration manual TISCD – Transport and Infrastructure Sector Coordination Division TSP – Transport Sector Plan 2014–2019 NOTES (i) The fiscal year (FY) of the Government of Samoa and its agencies ends on 30 June. "FY" before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ended on 30 June 2020. (ii) In this report, “$” refers to United States dollars. Vice-President Ahmed M. Saeed, Operations 2 Director General Leah Gutierrez, Pacific Department (PARD) Deputy Director Emma Veve, PARD General Director Dong-Kyu Lee, Transport and Communications Division (PATC), PARD Team leader Rustam Ishenaliev, Principal Infrastructure Specialist, PATC, PARD Team members Chandra Arora; Procurement Specialist; Procurement Division 2; Procurement, Portfolio and Financial Management Department Ferila Brown; Safeguards Officer; Pacific Subregional Office in Suva, Fiji (SPSO); PARD Cindy Bryson; Safeguards Specialist; Portfolio, Results and Quality Division (PAOD-PRQ); PARD Ninebeth Carandang, Senior Social Development Specialist, Social Sectors and Public Sector Management Division (PASP), PARD Juan Gonzales, Transport Specialist, PATC, PARD Ronah Lyn Hernandez, Associate Operations Analyst, PASP, PARD Ari Kalliokoski, Senior Transport Economist, PATC, PARD Mairi MacRae, Social Development Specialist (Gender and Development), PASP, PARD Maria Melei; Senior Country Officer; Samoa Pacific Country Office, SPSO; PARD Douglas Perkins, Principal Counsel, Office of the General Counsel Pinky Serafica, Senior Communications Officer, Media and External Relations Division, Department of Communications Hanna Uusimaa, Senior Climate Change Specialist, Energy Division, PARD Jean Williams, Principal Environment Specialist, PAOD-PRQ, PARD Peer reviewer David Fay, Unit Head, Project Administration, SPSO, PARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page PROJECT AT A GLANCE MAP I. THE PROPOSAL 1 II. THE PROJECT 1 A. Rationale 2 B. Project Description 3 C. Value Added by ADB 4 D. Summary Cost Estimates and Financing Plan 4 E. Implementation Arrangements 5 III. DUE DILIGENCE 6 A. Technical 6 B. Economic and Financial Viability 7 C. Sustainability 8 D. Governance 9 E. Poverty, Social, and Gender 10 F. Safeguards 10 G. Summary of Risk Assessment and Risk Management Plan 12 IV. ASSURANCES 12 V. RECOMMENDATION 12 APPENDIXES 1. Design and Monitoring Framework 13 2. List of Linked Documents 16 Project Classification Information Status: Complete PROJECT AT A GLANCE 1. Basic Data Project Number: 51268-001 Project Name Central Cross Island Road Upgrading Project Department/Division PARD/PATC Country Samoa Executing Agency Ministry of Finance Recipient Government of Samoa Country Economic https://www.adb.org/Documents/LinkedDocs/ Indicators ?id=51268-001-CEI Portfolio at a Glance https://www.adb.org/Documents/LinkedDocs/ ?id=51268-001-PortAtaGlance 2. Sector Subsector(s) ADB Financing ($ million) Transport Road transport (non-urban) 30.00 Urban roads and traffic management 10.00 Total 40.00 3. Operational Priorities Climate Change Information1 Addressing remaining poverty and reducing inequalities GHG reductions (tons per annum) 700 Accelerating progress in gender equality Climate Change impact on the Medium Tackling climate change, building climate and disaster resilience, and Project enhancing environmental sustainability Making cities more livable ADB Financing Strengthening governance and institutional capacity Adaptation ($ million) 0.37 Mitigation ($ million) 0.00 Cofinancing Adaptation ($ million) 0.00 Mitigation ($ million) 0.00 Sustainable Development Goals Gender Equity and Mainstreaming SDG 1.1, 1.5 Effective gender mainstreaming (EGM) SDG 5.1, 5.2 SDG 8.2 Poverty Targeting SDG 9.1 Geographic Targeting SDG 10.3 SDG 11.2 SDG 12.5 SDG 13.a 4. Risk Categorization: Low . 5. Safeguard Categorization Environment: B Involuntary Resettlement: B Indigenous Peoples: C . 6. Financing Modality and Sources Amount ($ million) ADB 40.00 Sovereign Project grant: Asian Development Fund 40.00 Cofinancing 0.00 None 0.00 Counterpart 15.00 Government 15.00 Total 55.00 Currency of ADB Financing: US Dollar 1 The project reduces greenhouse gas emissions. However, it does not fall under the eligibility criteria for climate mitigation finance as defined by the joint multilateral development bank methodology on tracking climate finance, which notes that not all activities that reduce greenhouse gases in the short term are eligible to be counted towards climate mitigation finance. Accordingly, greenfield fossil fuel projects are excluded, and climate mitigation finance is considered zero. Source: Asian Development Bank This document must only be generated in eOps. 10062020164743386719 Generated Date: 10-Nov-2020 8:45:36 AM o o 172 40'W 171 30'W S A M O A CENTRAL CROSS ISLAND ROAD UPGRADING PROJECT Project Road National Capital Town/Village Safotu Fagamalo International Airport Falealupo o Asau Samalaeulu Road o 13 30'S Safune 13 30'S Sataua Ferry Crossing River Falelima International Boundary Puapua Boundaries are not necessarily authoritative. S A V A I ‘ I I S L A N D Faga Salailua Tuasivi Palauli N Taga Salelologa Satupaitea Ferry Crossing Faleula Leulumoega Malua Faleolo Airport Vaiusu 0 5 10 15 Apolima APIA Satapuala Laulii Manono Saoluafata Mulifanua Kilometers o 172 40'W Manono-uta Solosolo Fusi Falelatai Falefa Fagaloa Bay ADB'S DEVELOPING MEMBER COUNTRIES IN THE PACIFIC U P O L U I S L A N D Uafato NORTHERN Tiavea MARIANA ISLANDS HAWAII Lefaga GUAM MARSHALL ISLANDS o Poutasi Salani Lepa o N O R T H P A C I F I C O C E A N 14 00'S 14 00'S Siumu Lalomanu FEDERATED STATES Lotofaga REPUBLIC OF OF MICRONESIA PALAU NAURU PAPUA K I R I B A T I NEW GUINEA SOLOMON TUVALU ISLANDS SAMOA COOK VANUATU FRENCH P A C I F I C O C E A N ISLANDS FIJI POLYNESIA NIUE NEW TONGA A U S T R A L I A CALEDONIA 200728 20SAM S O U T H P A C I F I C O C E A N This map was produced by the cartography unit of the Asian Development Bank. The boundaries, colors, denominations, and any other information shown on this map do not imply, on the N E W Z E A L A N D part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, colors, denominations, or information. ABV o 171 30'W I. THE PROPOSAL 1. I submit for your approval the following report and recommendation on a proposed grant to the Independent State of Samoa for the Central Cross Island Road Upgrading Project. 2. The project will finance (i) the upgrade of about 20 kilometers (km) of national road incorporating climate-proofing considerations, innovative technologies, road safety measures, and gender-inclusive elements; (ii) 3-year routine maintenance with gender-inclusive elements; and (iii) gender-sensitive capacity strengthening for the road transport subsector. It will help meet a key infrastructure need in Samoa—improve, sustain, and climate-proof its road network and boost transport sector governance. 3. Samoa implemented quarantine measures because of a measles outbreak in late 2019 and the subsequent coronavirus disease (COVID-19) pandemic, which severely curbed economic activity. The declining revenues and the government's stimulus expenditures to protect sectors and vulnerable groups led to forecasts of high fiscal deficits. The project is expected to help boost the economy through local employment, tax revenues, and inflows of foreign exchange. II. THE PROJECT 4. The Government of Samoa requested assistance from the Asian Development Bank (ADB) to upgrade Central Cross Island Road—a priority investment in the transport sector. The project was originally part of the World Bank’s assessment of critical road links to be covered by the Enhanced Road Access Project, which the government implemented in 2015 with World Bank support, but was not finalized.1 In 2018, the World Bank approved a $35.75 million grant for the Samoa Climate Resilient Transport Project to improve parts of West Coast Road and East Coast Road, both identified as vulnerable to climate change impacts.2 ADB financing was requested to supplement these efforts to improve the road network infrastructure. This is one of two ADB-assisted transport projects in Samoa, the other is the Enhancing Safety, Security, and Sustainability of Apia Port Project.3 5. Samoa’s coastal communities, where 70% of people live and where most public facilities, economic infrastructure, and job opportunities are, rely heavily on coastal roads and cross island roads for their transportation needs. The main island, Upolu, features three cross-island roads along its eastern, western, and central parts, providing access and livelihoods to inland communities. Central Cross Island Road is the key artery connecting West Coast Road in Apia— the country's capital, and the island's main commercial center and only deepwater port—with South Coast Road in Siumu.
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