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FOR OFFICIAL USE ONLY Report No: PAD2884 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 21.8 MILLION (US$30.5 MILLION EQUIVALENT) AND A PROPOSED GRANT Public Disclosure Authorized IN THE AMOUNT OF SDR 14.7 MILLION (US$20.5 MILLION EQUIVALENT) TO THE SOLOMON ISLANDS FOR A SOLOMON ISLANDS ROADS AND AVIATION PROJECT UNDER THE PACIFIC AVIATION INVESTMENT PROGRAM Public Disclosure Authorized (MARCH 7, 2019) Transport & Digital Development Global Practice East Asia And Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2019) Currency Unit = = US$1 US$1.4007 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Guangzhe Chen Practice Manager: Almud Weitz Dung Anh Hoang Task Team Leader(s): Naoki Kakuta ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank ADS-B Automatic Dependent Surveillance-Broadcast AGL Airfield Ground Lighting ARAP Abbreviated Resettlement Action Plan ATC Air Traffic Control AWOS Automatic Weather Observation System CAASI Civil Aviation Authority of Solomon Islands CERC Contingent Emergency Response Component CO2 Carbon Dioxide CPF Country Partnership Framework CPIU Central Project Implementation Unit DBST Double Bituminous Surface Treatments DFAT Department of Foreign Affairs and Trade DME Distance Measuring Equipment EIRR Economic Internal Rate of Return EMP Environmental Management Plan ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FM Financial Management GBV Gender- Based Violence GDP Gross Domestic Product GPN Global Practice Note GPS Global Positioning System GRM Grievance Redress Mechanism GRS Grievance Redress Service HIR Honiara International Airport IA Implementing Agency ICAO International Civil Aviation Organization ICR Implementation Completion and Results Report IDA International Development Association IFC International Finance Corporation IMF International Monetary Fund IPF Investment Project Finance JICA Japan International Cooperation Agency LBES Labor-Based, Equipment-Supported LMMA Locally Managed Marine Areas MCA Ministry of Communications and Aviation MFAT Ministry of Foreign Affairs and Trade MID Ministry of Infrastructure Development MOFT Ministry of Finance and Treasury MRIMP Malaita Road Improvement and Maintenance Program MTTAP Medium Term Transport Action Plan MUA Munda Airport NDB Non-Directional Beacon NDS National Development Strategy NFD National Fisheries Development NGO Non-Governmental Organization NPV Net Present Value NSC National Steering Committee NTF National Transport Fund NTP National Transport Plan O&M Operation and Maintenance OHS Occupation Health and Safety OPRC Output- and Performance-based Road Contract PAD Project Appraisal Document PAIP Pacific Aviation Investment Program PASO Pacific Aviation Safety Office PCERP Post-Conflict of Emergency Rehabilitation Project PDO Project Development Objective PIC Pacific Island Country PNG Papua New Guinea POM Program Operations Manual PPSD Project Procurement Strategy for Development PRIF Pacific Region Infrastructure Facility PSC Program Steering Committee PST Project Support Team QBS Quality Based Selection QCBS Quality and Cost Based Selection RAI Rural Access Indicator RED Roads Economic Decision RFB Request for Bid RFQ Request for Quote RFS Rescue and Fire Service RPEC Regional Procurement Evaluation Committee RSSAT Road Safety Screening and Appraisal Tool SCD Systematic Country Diagnostic SCF Standard Conversion Factor SDR Special Drawing Rights SIACL Solomon Islands Airport Corporation Limited SIG Solomon Islands Government SIRAP Solomon Islands Roads and Aviation Project SIRIP Solomon Islands Road Improvement Project SIRIP II Second Road Improvement (Sector) Project SITAMS Solomon Islands Transport Asset Management System SOP Series of Project SORT Systematic Operations Risk-rating Tool STEP Systematic Tracking of Exchanges in Procurement STIIP Sustainable Transport Infrastructure Improvement Program TAL Tonga Airports Limited TFSU Technical and Fiduciary Services Unit TIMS Transport Infrastructure Management Services TMP Traffic Management Plan TSDP Transport Sector Development Project US$ United States Dollar USOAP Universal Safety Oversight Audit Program UXO Unexploded Ordnance VAC Violence against Children VSAT Very Small Aperture Terminal WB World Bank The World Bank Solomon Islands Roads and Aviation Project (P166622) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 II. PROJECT DESCRIPTION .................................................................................................. 11 A. Project Development Objective ..................................................................................................... 11 B. Project Components ....................................................................................................................... 12 C. Project Beneficiaries ....................................................................................................................... 14 D. Results Chain .................................................................................................................................. 15 E. Rationale for Bank Involvement and Role of Partners ................................................................... 17 F. Lessons Learned and Reflected in the Project Design .................................................................... 18 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 19 A. Institutional and Implementation Arrangements .......................................................................... 19 B. Results Monitoring and Evaluation Arrangements......................................................................... 20 C. Sustainability ................................................................................................................................... 20 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 20 A. Technical, Economic and Financial Analysis (if applicable) ............................................................ 20 B. Fiduciary .......................................................................................................................................... 27 C. Safeguards ...................................................................................................................................... 28 V. KEY RISKS ..................................................................................................................... 29 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 31 ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN ............................. 43 ANNEX 2: DETAILED PROJECT DESCRIPTION .................................................................. 60 ANNEX 3: ECONOMIC ANALYSIS .................................................................................... 68 ANNEX 4: SAFEGUARDS ................................................................................................ 73 ANNEX 5: CONTINGENT EMERGENCY RESPONSE COMPONENT ...................................... 83 ANNEX 6: MAP OF SOLOMON ISLANDS WITH PROJECT SITES ......................................... 85 The World Bank Solomon Islands Roads and Aviation Project (P166622) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Solomon Islands Solomon Islands Roads and Aviation Project Project ID Financing Instrument Environmental Assessment Category Investment Project P166622 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [✓] Series of Projects (SOP) [✓] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 28-Mar-2019 31-Dec-2024 Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination Proposed Development Objective(s) Improve operational safety and oversight of air transport and associated infrastructure, strengthen the sustainability and climate resilience of the Project Roads, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. Page 1 of 86 The World Bank Solomon Islands Roads