Document of The World Bank Public Disclosure Authorized
Report No: 25598
FOR OFFICW USE ONLY
PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ON A
PROPOSED CREDIT
IN THE AMOUNT OF SDR 9.0 MILLION (US$12.80 MILLION E~~ALENT~
TO THE
~EPENDE~TSTATE OF SAMOA
FOR A
Public Disclosure Authorized SECOND ~~S~R~CT~ASSET ~AGEMENTPROJECT IN SUPPORT OF THE SECOND PHASE OF THE
~~S~UC~ASSET ~AGE~E~TPROGRAM
December 3,2003
Transport Sector Unit East Asia and Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties, Its contents may not otherwise be disclosed without World 3ank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective October 3 1,2003)
CurrencyUtlit = Tala 1 Tala = US$0.35
US$1 =; 2.90 Tala
~3~VLA~IONSANL, ACRONYMS
ARNTMS Apia Road Network and Traffic Management Study 3PIP Borrower‘s F’roject Implementat~onPlan CAS Country Assistance Strategy CHZ Coastal Hazard Zone CIMP Coastal Infrastructure Management Plan CIMS Coastal Infiastructwe Management Strategy COEP Codes of Environmental Practice DLSE Department of Lank Survey and Environment DP Displaced Persons EA Environmental Assessment ELA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMP Environment Management Plan EC European Union ~Co~~~ion) FMS Financial Management System FRR Financial Rate of Rem GIS Geographic Information System GoS Govement of Samoa GPS Global Positioning System LA Implementing Agency IAM Lnfrastructure Asset Management (Project) IAPSO Inter-Agency Procurement Services Office ICB International Competitive Bidding IATA International Air Transport Association ICAO International Civil Aviation Organization ICT Infomation and Co~~cationsTechnology ILS Instrument Landing System IPSC IAM Program Steering Committee LTA Land Transport Authority LAW Land Acquisition and Resettiement Framework MWTI Ministry of Works, Transport and Infrastructure MAS Minor Auports Study MNRE Ministry of Natural Resources and Environment MOF Ministry of Finance NCB National Competitive Bidding NDMO National Disaster Management Office NEOC National Emergency Operations Center NGO Nm-govement Organization PCM Project Component Manager PEAR Preliminary Enviromenbl Assessment Report PMU Project Management Unit PSRM Public Sector Re€ormProgram PUMA Planning and Urban Management Agency PWD Public Works Department RFP Request for Proposal RSP Road Sector Plan RTAS Road Transport Administration and Safety SA Social Assessment SAA Samoa Airport Authority sms Samoa Asset Management System SDS Strategy for the Development of Samoa
Vice President: Jemal-ud-din fcassum Country Manag~/D~ector: Xian Zhu Sector ManagerlDirector: Jitendra N. Bajpai Task Team Leaderflask Manager: William D.0, Paterson
This document bas a restricted distribution and may be used by recipients only in the performance of their official. duties. Its contents may not be otherwise disclosed without World Bank authorization.
SAMOA SECOND ~~F~~TRUCT~ASSET M~~G~~~NT PROJECT
CONTENTS
A. Program Purpose and Project Development Objective Page
1, Program pwpose and program phasing 3 2. Project development objective 4 3, Key performance indicators 4
3. Strategic Context
1, Sector-related Country Assistance Strategy (CAS) goal supported by the project 2. Main sector issues and Government strategy 3. Sector issues to be addressed by the project and strategic choices 4, Program description and performance triggers for subsequent loans
C. Program and Project Description Summary
I.Project components 9 2, Key policy and institutional reforms supported by the project 11 3. Benefits and target population 11 4, Institutional and implementation arrangements 12
D. Project Rationale
1. Project alternatives considered and reasons for rejection 13 2. Major related projects financed by the Bank; andor other development agencies 13 3. Lessons leamed and reflected in the project design 14 4. Indications ofborrower commitment and ownership 15 5. Value added of3ank support in this project 15
E, Summary Project Analysis
1. Economic 15 2, Financial 16 3, Technical 17 4. Institutional 17 5. Environmental 18 6. Social 19 7, Safeguard Policies 21 F. Sustainability and Risks
1. Sustainability 22 2. Critical risks 22 3, Possible controversial aspects 23
G. Main Credit Conditions
1. Effectiveness Condition 23 2. Other 23
H, Readiness for Implementation 26
I.Compliance with Bank Policies 26
Annexes
Annex 1: Project Design Summary 27 Annex 2: Detailed Project Description 31 hex3: Estimated Project Costs 40 Annex 4: Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis Strimmy 42 Annex 5: Financial Summary for Revenue-Easning Project Entities, or Financial Summary 47 Annex 6: (A) Procurement ~geme~ts 49 (3) Financial Management and Disbursement Arrangements 54 Annex 7: Project Processing Schedule 60 ~nnexa: Documents in the Project File 61 Annex 9: Statement of Loans and Credits 62 Annex 10: Country at a Glance 64 Annex 1 1: Land Acquisition and Resettlement Framework Summary 66 hex12: Social Assessment Smw 71 Annex 13: Environmental Assessment Summary 77 Annex 14: Road Sector Overview and Assessment a2 SAMOA Second Mastruchre Asset Management Project Project Appraisal Document East Asia and Pacific Region EASTR
Date: December 3,2003 Team Leader: William D. 0,Paterson Sector ~ana~er/~~re~~~r:Jitendra N. Bajpai Sector(s): Roads and highways (70%), Flood protection Country ~ana~er~~e~~or:Xian Zhu (20961, Aviation (10%) Project ID: PO75523 Theme(s): Natural disaster management (P), Rural Lending Instrument: Adaptable program Loan (A~L) services and infrastructure (F), Administrative and civil service reform (PI, Environmental policies and institutions (S), Land management (S)
Commitment Closing
Independent State of Samoa
1 ]Loan Ix] Credit ] Grant I ] Guarantee [ 1 Other: For LoanslCreditslOtfiers: Amount (US$m]: 12.80 Proposed Terms (IDA): Standard Credit Grace period (years): 10 Years to maturity: 40 Commitment fee: 0.00-~,5~~
Borrower: INDEPENDENT STATE OF SAMOA Responsible agency: MINISTRY OF FINANCE Treasury Department P.O. Box 3017 Beach Road 1307 Apia, SAMOA Contact Person: Ms. Hinauri Petana, Chief Executive Officer Fax: 68521312 or 24779 Pht-685 22 498 or 34 333 MINISTRY OF WORKS, TRANSPORT, AND ~F~STRUC~U~ Address: Private Mail Bag, Apia, SAMOA Contact Person: Mr. Vaaelua N. Vaaelua, Chief Executive Officer Tel: +685 20 865 or 21 61 1 Fax: +685 21 927
Other Agency(ie3): MINISTRY OF NATURAL RESOURCES AND E~~RO~ENT Address: Private Bag, Apia, SAMOA Contact Person: Mr. Tu’u’u Ieti Taulealo, Chief Executive Officer Tel: +685 22 48 1 Fax: +685 23 176 Email: Tuu~.~eti~S~oa.Ws Estimated Disbursements ( Bank FMUS$m):
Project implementation period: 5 years Expected effectiveness date: 0313 112004 Expected closing date: 1213 112008
-2- A. Program Purpose and Project Development Objective 1. Program purpose and program phasing: The purpose of the Infrastructure Asset Management Program (IAMP) is to: Enhance the economic, environ~enta~and social sustainability of transport and coastal infrastructure assets, and to manage those assets, natural resources and disaster risks through an effective partnership with private sector s~a~eholder~. The Program is being implemented over a period ofnine years in two phases as follows, to meet the targets shown in the table below, which is updated from the original outline, i.e.:
0 LAM- 1: Meeting Vital Priorities and Strengthening Management (1999-2003) 0 IAM-2: Investing for Sustainable Growth and Protection (2003-2008).
IAMP Phases: Phase IAM-I Phase IAM-2
Period January 1999 - March 2004 July 2003 - December 2008
Project Development ‘ita1 Infrastructure Priorities and Strengthened Investingfor Sustainable Growth and Objective lanagement Protection
0 International air transport infrastructure is 0 Air transport infrastructure consolidated Key Program Outputs sustainably adequate for economic growth and managed sustainably. 0 Reliability and safety of road system assets is 0 Land transport and road system assets improved under restructured and sustainable 0 Environmentallyand socially sustainable management and financing management of coastal infrastructure is 0 Access, capacity, and safety of road initiated system assets enhanced for remote 0 Management of infrastructureassets is communities and Apia becoming service-oriented involving public, 0 Management of environment, natural private and community stakeholders resources and disasters, restructured and in partnership with civil society 0 Environmentallyand economically sustainable protection of infrastructure assets in coastal and other areas 0 Faleolo airport operation complies with 0 All primary road, international airport, Criteria for: ICAO standards; termha1 processing and public coastal infrastructure are under satisfies IATA Categoy C, asset and information management i)Subsequent Adaptable 0 Road Sector Plan (RSP) endorsed by 0 At least 60 percent of road and coastal Program Financing (IAM-1 Cabinet infrastructure developmentsjustified by to IAM-2) and 0 Coastal Zone InfrastructureStrategy appraisal and priorities of approved sector endorsed by Cabinet plans ii)End-of-Program 0 Public Works Deparhent (PWD) new role 0 At least 80 percent of coastal communities and functions endorsed by Cabinet participate in Coastal Infrastructure 0 DLSE reform plan endorsed by Cabinet Management Strategy (CIMS) 0 Public cost recovery targets achieved: 80 percent of full costs for aviation (SAA), and 80 percent of preservation costs of primary roads (MWTI) 0 New MWTI is fully operational and staffed. 0 80 percent of coastline on Upolu and Savai’i adequately protected for 20-yr storm events
-3- 2. Project development objective: (see hex1) As the second Project is the last phase ofthe Program, the two development objectives reflect the Program goal:
e Key infrastructure assets perform satisfactorily with sustainable resilience to natural risks. e Oversight and management of infrastructure, natural resources, and national emergency are effective and efficient, with participation of private sector and stakeholders.
3. Key performance indicators: (see hex1)
The principal performance indicators for monitoring the development objectives are: Establishment, stafig, and hctioningof MWTI and MNRE. Asset mnagment strategies, supported by information sysems, in place for primary roads, aviation, and coastal infrastructure assets, Coastal communities protectedlcovered through infrastructure risk management plans. Achievement ofcost recovery targets for air trmport and road infrastructure. Service quality ratings by road users and affected groups. Reduction in unit costs for maintenance and road user costs. Share ofprivate sector provision of infrastructure works and services.
B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see hex1) Document number: Pacific Regional Strategy, Report No. 20370-EAP Date of latest GAS discussion: May 2000 The framework for the Bank’s engagement in the nine member countries ofthe Pacific region is articulated in the Pacific Regional Strategy, May 2000, The core ofthe 3&s strategy for the Pacific region is poverty reduction through support for “the human capital, policies, institutions, and physical infrastructure” needed for equitable and sustainable growth, The Strategy emphasizes a sectord focus on education, health, transport, and te~eco~~cationssectors, with an added emphasis on strengthening private sector capacity in these areas. Support for transport infrastructure and telecomm~icationsare expected to assist in addressing the remoteness and isolation ofthe Pacific countries. Tae sector-specific goals supported by the project in line with the CAS objectives are to:
e consolidate reform ofthe former Public Works Department, now the Ministry of Works, Transport, and Infrastructure (MWTI) to complete its transition from infrastructure provider to infkastructure asset manager; e continue to enhance the role and capacity ofthe private sector in provision ofworks ; improve construction quality by supporting the introduction ofindependent supervision of works; e promote sustainable transportation through conhued attention to traffic safety, and to environmental and social considerations in infrastracture design, construction, operation, and mainenance; and
-4- promote macroeconomic growth through providing much needed support for coastal protection infrastructure.
2. Main sectox issues and Government strategy: The Samoan government's first Statement ofEconomic Strategy in 1995 laid the foundation for a parhership between the govmentand the private sector, and focussed on economic recovery with appropriate macroeconomic policies and a structural reform program. The gove~ent~~efforts resulted in a strong economic recovery with an average GDP growth rate of4.7 percent per annum between 1995-2002, However, growth slowed down sharply in 2OOLiO2, with real GDP increasing by only 1.9 percent. The government's latest economic strategy for the three year priod, 2002-2004, is presented in the Strategy for the Development of Smoa (SDS), 2002-2004. The Strategy is focussed on maintaining the stable macroeconomic environment established over the last few years, improving education and health standards, continuing to nurture an enabling environment for the private sector, improving infrastructure services, enhancing opportunities in the agricultural and tourism sectors, and continuing significant civil service restructuring. Tfie civil service restructuring is running parallel to the project-supported transport sector reformywhich led to the formation of the Ministry ofWorks, in place ofthe former Public Works Depment, in April 2002, and to its major downsizing on October 2,2002. In January 2003, Cabinet approved a new organizational structure for government under the ongoing hbXic Sector Reform Program (PSRM). Within this structure, the MOW is merged with all infrastructure and transport to form the Ministry ofWorks, Transport, and Infrastructure (MWTI).
The next phase ofreform involves the implementation ofthe re-aligned government structure. Tiis includes particular attention to issues of: (i)redundancy (assisting staff in defining and transitioning to alternate employment); (ii)staffing (recruitment ofsenior management and professional staff); (iii)creating regulatory capacity; (iv) staff training; and (v) sector funding. Once the new structure is in place, the reform program will continue implementation of: (i)perfomce budgeting; (ii)devolution of fmancial control and personnel m~agementto line departments; (iii)introducing strategic and corporate planning in line departments; (iv) requiring project appraisal, monitoring, and evaluation of all public investments; and (v) strengthening infomation systems for performance and monitoring.
3. Sector issues to be addressed by the project and strategic choices: The focus ofthe IAM Program on transport and coastal infrastructure addresses a substantial portion of the scope of the recently merged Ministry, with the other aspects ofenergy and water being supported under other assistance. The existing transport system is fairly well developed. The lan4 marine, and aviation infiastructure is basic, generally appropriate and in good condition as a result ofmoderate investment programs over the past decade. Services are provided by market-oriented companies, service levels are reasonable in terms ofquality and co~ectivity,and there is some choice ofservice.
The primary challenge is the planning and financing ofinvestments and preservation ofthe infrastructure assets that will be adequate to support continued economic growth, while being financially sustainable without dependence on extemal assistance, In respect ofinvestments, the frst Project raised the international airport infrastructure to an operational standard adequate for the medium-term, but the road infrastructure is not adequate to meet the rapid growth in land transport especially in the urban area. In terms ofthe public sector reform ofservice delivery, public works and transport have been leading the way with the reforms achieved under the first Project, but much remains to be done especially in land transport and in addressing institutional capacity. Coastal infrastructure has a priority because much ofthe economic activity and population are concentrated in coastal zones which are vulnerable to natural hazards
-5- and comprise fiagile ecosystems. However, the environment and the small scale of the economy are also exposed to other natural and man-made risks, including climate change, which require careful attention to the management of natural resources, witfiin cultural txaditions, and so there is a need to extend the area of focus to a broader framework of emergency and risk management.
Individual subsector issues include the following:
(a) Aviation Infrastructure: The first Project undertook major rehabilitation of the primary international airport at Faleolo, raising it to full current ICAO (International Civil Aviation Organization) standards, and strengthenedthe business practices ofthe Samoa Airport Authority (SAA). The 2001 Minor Airports Study highlighted the high costs of operating the thee minor airports in the country and recomended closure of the Fagali’i and Asau airports, The minor airports need varying degrees of rehabilitation, and SAA has recently upgraded Maota in Savaii as an international airport for regional traffic, SAA plans to use its own resources to manage the minor airports and is seeking assistance to replace the lnstnunented Landing System (ILS) at Faleolo. SAA needs to implement various strategic actions through their business plans--such as closures, raising revenues, and maintaining safety-in order to reach its goal of financial sustainability. Use of an asset management system would help to plan and reduce maintenance costs.
(b) Road Infiastructure and Transoort: Under IAM-1 , an asset management system was introduced, the road infrastructure assets surveyed (covering all public infrastructure assets under the management of the MWTI including roads, bridges, coastal structures, and buildings), and a l0-year Road Sector Plan prepared. The primary road network, comprising 857 km of road, is in predominantly good condition (80 percent good and 79 percent paved). However, more than 80 km has inadequate traffic capacity and 13 bridges require replacement or improvement. The 2002 Plan showed a high concentration of capacity, upgrading and safety needs in the Apia urban area where traffic has grown more rapidly than elsewhere. It also indicated a need to connect remote villages to the main network, which do not have full motorable access. Administration of the 13,000 vehicle road transport fleet was improved by a computerized vehicle and driver licensing system in 2002, but realignment of functions between transport and police is needed for this to become fully operational and for traffic enforcement to improve. Road safety, which was greatly improved initially in 1999-2000 by the TAM-1 safety program, has not improved fkther and over 70 percent of accidents involve pedestrians. Under W-1 , only 40 percent of the program ofworks was implemented, due to delays, cost increases and reallocation, and the remainder has been transferred to IAM-2. The primary sector issue to be faced is budgetary: the national budget meets about 60 percent of preservation needs when fully allocated, but the developmental needs far exceed the capital available for investment. Tfie 2003 Transport Sector Review (TSR) showed that full cost recovery and financial sustainability is feasible for the road sector with the introduction ofmoderate road user charges (see hex14 for details).
(c) Sustainable Management ofthe Environment. Natural Resources and Risk More than 80 percent of the population and economic activity are located in the coastal zone where the environment is fragile and options for increasing the resilience to natural hazards in an environmentally sustainable way is a high national priority. Detailed mapping of the natural hardzones has shown that 80 percent ofthe 732 km coastline is either sensitive or highly sensitive to erosion, flooding, or landslides. Significant erosion has occurred in
-6- some locations due partly to post-cyclone coastal changes and partly to uncontrolled extraction and reclamation. A four-part program to reduce the risks was initiated under IAM-1 comprising: (i)strengthening requirements for environmental management in all inikastructure activities; (ii)a national strategy for improving the resilience of coastal assets to natural hazards and the preparation of District-level management plans; (iii) improving the quality and accessibility of land and resource-related information through the creation of computerized data, images and maps; and (iv) implementation of more sustainable approaches to coastal protection, It is now apparent that this risk management approach should be raised to a broader national level, strengthening the current provisions for emergency management and adapting to climate change. These are discussed in more detail as follows:
(i) Coastal Risk ~ana~e~e~~:The national Coastal Infrastructure Management (CM) Strategy, developed from consultation with a range of stakeholders at national and district levels, was launched in 200 1. Implementation of the Strategy was begun with the preparation of comprehensive District-level management plans (CM Plans) through participatory consultation in traditional mode at village-level, using aerial photographs and local data to identify vulnerable assets, risk reduction options and priorities. Each District CIM Plan became an official agreement between the villages, District and national Ministry (M">.To date 35 percent of Districts (1 5) have been covered and 28 Districts remain to be covered by similar CIMPlans. Efforts are needed to establish the status of these plans in relation to the new planning regulations and the effectiveness of the approach in controlling adverse development and resource use. The needs for coastal protection are substantial-the initial program has an estimated cost of WST 10 million, and the total needs are likely to exceed WST 30 million (over US$10 million) over 5+ years. Financing and cost recovery for these investments needs to be addressed.
(ii) Land ~d~j~jstra~jon~The wide range of high quality mapping products and imagery of land and infrastructure assets that has been made available to the public following surveys under IAM-1 has established a new computerized information service within the MNRE. Geodetically referenced location data is becoming the national basis for sector planning and asset management. The extension of hfomtion technology into the administration of lands--the registration and titling of land ownership--requires the upgrading of the geodetic survey control network to satisfy cadastral standards of accuracy for land surveys, The current land registration and titling processes are traditional, insecure, difficult to administer, and prone to ambiguity and dispute. Currently, about 19 percent of land ownership is public or private and 8 1 percent is customary. With economic growth, significant sales of lands have been in progress and these need reliable modern titling and registration systems. There is also a need to preserve existing title information because some records are disintegrating. In view of this there is active demand for the upgrading of land adminstration procedures,
(iii) ~n~~r~n~e~tand ~a~~ra~Resource ~u~~ge~e~~: Environmental management of natural resources (covering aggregates and minerals, fisheries, forestry, watersheds, conservation and heritage lands, national parts etc.) is an emerging core function of IvfNXE. The tools and approaches that have been developed and applied to infrastructure management in coastal hazard zones can be extended to the management ofnatural resources, The impact ofsand-extraction in the coastal zones is accelerating erosion in some areas. Coastal resilience can be enhanced by 'soft' measures such as restoring wetlands, Provisions for environmental impact assessment and mitigation plans need to be applied effectively in development works, which requires ongoing training and dissemination among proponents, contractors and regulators,
(iv) Emergency and Risk ~anage~en~,and Ada~~a~~~n~ The National Disaster Management Office (NDMO) was moved to MNRE in July 2003 under the public service reform. The NDMO has focused on preparedness and response issues, including very occasional emergency simulations, but the operational structure and plans need to be made more effective. A National Emergency Operations Center (NEDC) in Apia is in sound condition, but this was not used during the previous cyclones, it lacks co~~cationsequipment and there is no comparable center on Savai'i. Risk management needs to focus more on risk reduction, and to be extended to other natural risks and assets, including for example, watersheds and flooding, and probably also to technical or man-made hmards (oil spills, security, business interruptions, etc.1. Some assessments are being made of climate change impacts for Samoa which may augment the current natural hazard risks, and adaptation options could be included in tfie evaluation of risk reduction measures.
(d) Institutional Capacitv-Building: In addition to institutional strengthening ofthe individual implementing agencies, the L4M Program is supporting substantial public service reform in both the transport sector and the natural resources and environment sector, and building capacity in information and co~~cationstechnology. The issues arising include:
(i) Public Work and Land ~ran~~or~:A major reform in the delivery of public works was achieved in October 2002 when the former Public Works Department was restructured after lengthy preparation and reduced to functions of asset management and sector policy. All service delivery (for engineering design and supervision, construction, equipment maintenance, etc.) is now outsowced to the private sector, most ofit on a competitive basis but with some direct work agreements which will be phased out over a period of two years. Most assets were divested, except for two areas considered vulnerable to monopoly, Le., aggregate production and quality assmancelcontrol. Staffing was downsized by 83 percent from 403 to 58, with a focus on professional and managerial skills, However not all the new positions can be filled and the new organization needs training and support. Subsequently in June 2003, the organization was merged into MWTI which covers all transport modes and infrastructure, As aviation, shipping and ports are already under statutory authorities, the challenge is now to complete the reforms ofroad asset management and land transport a~~strationby merger in a proposed Land Transport Authority, as envisaged by the SDS 2002. The TSR has identified issues to be addressed and suitable options to be followed. Sustainable financing, by cost recovery though road user charges, will be the key to transforming land @amport into a service-oriented provider like a utility and enabling the organization to attract and retain suitably skilled staff, Aspects to be addressed include the assignment ofroad transport administration, regulatory and enforcement functions, the timing and preparation for progression to
-8- commercialized or statutory status, the structure and pace of inkoducing cost recovery, and the authority over expenditures.
(ii) ~a~~ra~~eso~rcesand ~~~~ron~en~: The new h4NR.E acquired several new functions including natural resources, meteorology, disaster management, planning and urban management. Substantial support would be needed to address the proposed reforms on land registration, expansion ofland information services, expansion ofemergency and risk management role, and in finalizing legislation needed on land, environment, and related issues.
(iii) r~for~a~~onand Co~~~n~ca~~~~~ T~c~nolo~(IC?J:In order to facilitate the sharing ofinfrastructure asset information, IAh.4-1 provided assistance in establishing a policy framework on information technology. The Government has since established an ICT Council in 2001 and is progressing with other assistance.
4, Program description and performance triggers for subsequent loans: All performance triggers of the fist Project have been met, as indicated in the table of section A. 1.
C. Program and Project Description Summary 1. Project components (see Annex 2 for a detailed description and hex3 for a detailed cost breakdown): The project is designed around five components similar to the first phase to preserve continuity for the objectives and sub-sector components, as sumxizedbelow (total costs including contingencies).
A, Aimort Infrastructure (US$1.06 million): SA4 will hdhrther development of the international and minor airports fiom their own resources, including an instrumented landing system. Advisory support and establishment ofasset management procedures are incorporated under capacity budding.
3. Road and Other Infrastructure (vStS16.06 million): Friority physical investments to remove bottlenecks and improve road network capacity, rehabilitate a key corridor, and improve safety and pedestrian facilities, access to remote villages, and resilience ofinfrastnrcture to natural hazards, including:
Bridge re~~~ce~en~and re~a~~l~~a~~on: Improving traffic capacity and safety, and providing access to remote areas through replacement of about 4 bridges.
Road re~u~i~i~~~~on~Repair, resurfacing and safety improvements to a primary arterial road, the West Coast Road over a length of 32 h,and also planning services for a future western inland route, Road safely und~ede~~rianfac~~j~~e~: Construction offootpaths and traEc calming measures to improve road safety in two schemes in the Apia urban area
Road network de~elo~~e~~:Development of an arterial road network and improved capacity in Apia through road and bridge widening to up to four lanes on sections of Vaitele Street and Fugalei Street, with design and supervision services.
~~~~~e Access: Upgrading road access in selected remote sites, including Fagaloa Bay, with design and supervision services.
-9- (vi) ~n~a~~c~~reRisk ~~~iga~~n:Construction of coastal protection along about 4,000 linear meters at selected sites in accordance with agreed criteria, with supervision services.
C. Sustainable Management of hfras~c~e,Natural Resources and Rkks (US$2.23 million): Technical and advisory assistance to develop sustainable management of natural resources and the environment, to improve management of emergencies and to empower co~~tiesand organizations to reduce their risk from natural disasters, including: (i) ~n~jro~men~,Risk and Reso~rce~anage~en~: Technical assistance to: (a) strengthen environmental management and regulations; @) adapt the coastal risk management strategy, incorporate climate change risks, and prepare management plans for 28 Districts; (c) establish systems for monitoring and managing use of natural resources; and (d) strengthen national emergency and disaster management, training and equipment for readiness and response, and financing options.
(ii) Land ~d~~n~~~a~~nand Survey: Tecfical assistance for: (a) improving the reliability of survey and geographic information, including upgrading the geodetic survey control, developing technical standards, and training; and (b) improving the accuracy of land administration information, developing the basis for reform of the registration and titling system for public and private lands, and preparing related legislation and policy. (iii) Risk ~d~~~a~ion~e~s~res:Non-structural measures to improve resilience of com~ties by mitigating natural risks through the provision of small grants.
D, Institutional Development in Transwrt and Tnfrastructure (USS1.42 million): Strengthening of institutional capacity, consolidating and extending reforms of air and land transport with the delivery of services through the private sector, including: (i> ~ran~~or~and In~a~~~c~ure Reform: Strengthening the capacity for management and regulation of transport system and assets through continuing reform in land transport, including advisory support for establishing a Land Transport Authority, establishing sustainable financing and aEordable cost recovery through user charges, addressing policy and regulatory issues, advisory support for the Samoa Airport Authority to implement its business and management plans, and transport engineering support to overcome understaffing. (ii) Training: Capacity building and development of competencies for selected stakeholders under the Prqject.
E. Project management (USS1.83 million): Support for the efficient administration of the project, including:
(i) project ~anage~en~:Support of a central project management unit under contract to Ministry of Finance, and two project component magers, to assist management of the Project. (ii) Project ~~d~~jng:Support for an independent auditor. C. Sustainable Management D. Institutional Development
2. Key policy and institutional reforms supported by the project:
(a) For SAA, improving institutional and financial sustainability, through (i)establishment and operation of an airport infrastructure asset management system; (ii) tariff adjustments to keep financial performance on track (including surcharge on Fagalii operations); (iii) acceptable program on development and operation ofminor airports, including phased closure ofFagalii airport; and (iv) reduction in, or full funding of, un-funded community service obligations.
(b) For MWTk (i)commitment to adequately fund annual road preservation program based on an asset management analysis; (ii)schedule for establishment and operation of proposed Land Transport Authority or similar; and (iii)introduction of road user charges, in acceptable form and scale, and related financial arrangements.
(c) For ~~~ and Emergency Management: (i)provision to ensure effective operational structure for emergency~disasterresponse; (ii)codtment to implement risk reduction strategy for natural hazards and climate change aspects; (iiij dated submission of updated environmental legislation and authorization ofrelated regulations; and (iv) commitment to begin reform ofland titling and registration procedures.
3. Bt.nefits and target population: The benefits from the project will derive fiom its outcomes in the following areas:
(a) There would be redresource savings (including foreign exchange) in total road transport costs through reduction of life-cycle road infkastructure costs, reduction ofaccident costs, and lower road user costs. Both roadside communities and road users wodd benefit from improved safety and constraint of the adverse impacts of growing traffic volume, speed, and emissions. where road transport is provided by intermediate service suppliers @ublic bus operators, taxis, fieight, and hauliers), the user savings can be expected to be passed on to the final users (passengers, shippers, businesses, and government agencies) since the markets for road services are quite competitive. Improved accessibility for mral and remote communities will tend to improve livelihood and the delivery of basic public health and education services and hence, the quality oflife for lower income mral villagers saved by the feeder roads within the project,
- 11 - @) Public and private assets in coastal hazard zones would have improved resilience to natural disasters, through improved control of drainage and flooding, physical protection, or control of activities, which will lessen the expected damage from events with a 10-year return frequency to non-critical levels, and from worse events to restorable levels, Village communities which are in coastal hazard zones will have lower risk to their livelihood and assets. Natural resources such as fish populations and sand materials could return. to sustainable levels with appropriate infrastructure design and management.
(c> There would be general socioeconomic benefits and fiscal savings derived from a streamlined public service, a strengthened and expanded private sector, increased community participation, ready access to high quality land- and asset-related information, strengthened land ownership procedures, and sustainable management of, and investment in, infrastructure.
4. institutional and implementation arrangements: The arrangements from IAM-1 , which proved highly successfil, would be followed with minor adjustments.
IAM Program Steering Committee (IFSC): reporting to the Ministry ofFinance as executing agency, comprising heads ofthe implementing agencies and authorities, representatives of other key stakeholders including Ministry for Women, Community and Social Development, Public Service Commission, and a civil society representative, The Froject Management unit can attend as observers.
hdementing Agencies: The implementing agencies are the responsible Ministries, is.: Ministry of Finance, MWTI, and IvINFtE.
Project Management Unit: A small private sector team would be employed as the Project Management Unit, under contract to MOF as central agency, under the direction of the IAM Program Steering Committee (IPSC), and comprising a project manager~procurementspecialist (engineer), accoun~~f~ancialmanagement specialist, social assessment specialist and dissem~atio~a~strativeassistant. The two implementing agencies, MWTI and MNRE, will each appoint a Froject Component Manager (PCM) to manage their respective component activities. In order to defray costs, the PMUwill serve less than fidl-time.
Funds Flow. At central level, the MOF will open one Special Account denominated in USdollar currency for receiving funds from the World Bank, and will set up a separate Froject Account (GPA 99) for W-2, which will be treated as a Bank Account, instead ofopening another account for the project in a commercial bank, Any payments will be charged to individual “child accounts” for each project component identified under the parent GFA 900 coded account with a separate GPA sub-account for the counterpart contribution from which taxes will be paid out. The Special Account will be opened at the Central Bank. The GPA account will have an opening balance from the counterpart con!ibution to W-2under implementing agencies’ budgets and funds transfemd from the Special Account (held with CBS>, based on actual disbursements providedby the PMU,
- 12- E). Project Rationale 1. Project alternatives considered and reasons for rejection: (a) Termination of the IAM Prorrram: Not appropriate, because Government commitment to the Program objectives remains high (Cabinet decision June 2002); the objectives remain relevant; performance on the first phewas generally excellent although an extension of time was required for one component; all trigger criteria were satisfied by August 2003, The APL instrument has proven ideally suited to the Project and Program, and both Government and 3ank task management are fully supportive ofits continuation.
(b) Potential inclusion of other infiastnacture assets or natural resources within the sco~:(i) Water supply and electric power supply both require similar asset management improvements, but are under other forei~-ass~s~ce;and (ii>Watershed mapping and management is crucial to control flooding and water supply~overnmentfinancial resources are insufficient to permit a major input, but the information, mapping, and hazard aspects can be included in the IAM-2.
(c) Expansion ofIAM PromScow The identified needs for a larger program of infrastructure improvements wouldjustify a 20 to 50 percent increase in the value ofthe second phase. Although Govment is heavily committed on development investments in other sectors at present, the prospect of cost recovery and financial sustainability for the road program h;rs made expansion of the project feasible and the Government requested this in September 2003.
2. Major related projects financed by the 3ank andlor other development agencies (completed, ongoing and planned). Latest Supervision Sector Issue Project (PSR) Ratings (Bank-finance projects only) Implementation Development Progress (IP) Objective (00) Bank-financed Infrastructure management, sector Samoa: kd?astructure Asset S HS reform, risk management Management Project S s
Froject Information technology Samoa: Telecommunications s s and Postal Sector Reform
Infrastructure rehabilitation, Samoa: Health Sector S S capacity-building Management Project 3ther development agencies Urban planning and management; AD3 Sewerage and drainage. Water supply EC Institutional strengthening AusAID (various) (Highly Unsatis
- 13- 3, Lessons learned and reflected in the project design: (a) For a Project with multiple sub-sectors (to address the small scale of Pacific operations), the mapping ofindividual agencies over the three main components (SAA, MOW, and DLSE), and the coordination ofthe institutional reform component with the Government’s public service reform agenda, have proved particularly successful in the implemen~tionof the fust phase. Borrower commitment, participation, and control have been fill and high, with consequent effective capacity-buil~gin each agency. This structure has been continued in the design ofPhase 2.
(b) Tfie participatory approach to natural risk management fias proved to be very successful and highly suited to Samoan society. It has become a model for other operations in the Pacific, and warrants extension. Furthermore, the scale of the operation that was made possible by the IDA support has enabled an extent ofimplementation that cannot be achieved through existing regional organizations such as SOPAC and SPREP, but which is consistent with the regional approaches. Such partnerships are likely to be crucial for achieving similar goals in other Pacific Island countries.
(c) The joint financing arrangement with AusAID under L4M-1 , focused on one institutional strengthening subcomponent, proved to be a productive and efficient financing arrangement. For AusAID, it afforded direct support for PWD reform, but withthe fiamework ofa larger Project with its related quality controls and oversight, and minimal administrative requirements, (Not continued for L4M-2.)
(d) The project management arrangements, which were innovative in using a private sector team under contract, proved to be ideal for a project with some major procurement and a relatively complex structure involving multiple implementing agencies and a large number ofproject activities. Tfie focused structure meant that the procurement and fmancial management performance was better than for previous projects in the Pacific. Task management was facilitated by the rapid up-slcilling ofthe PMLJon procurement and accounting, and project oversight by the steering codtteealso benefited through good reporting and responsiveness. Tfie capacity-building achieved in the Wswas focused on project management skills rather than service delivery, and the workload ofproject management did not exacerbate the severe staffing shortage.
(e) Packaging for national procurement, apart from the major intemational contracts, was designed to stimulate the domestic industries though the use ofrelatively small package sizes, It was successful in stimulating private fito form partnerships and attracting regional fums to compete for consulting services, but had a smaller-than-expected effect on increasing local employment. However, it also caused a huge procurement workload, totaling over 70 packages for the first Project, which was one cause for implementation delays. Packaging has been streamlined for the new Project.
-14- 4. Indications of borrower commitment and ownership: The Govement implemented the first phase project well and achieved major reform objectives in public works. Preparation of Phase 2 was initiated early with a Project Concept workshop in November 200 1, Cabinet approved preparation ofPhase 2 in June 2002, and after resolving issues on conditions a preparation Grant Agreement was approved in December 2002. A detailed project design workshop was conducted in February 2003. The Program Steering Committe and preparation team are already in place and adequate budget fias been provided for preparation. Recently on 24 November 2003, Cabinet has also approved a road-map for the next phase ofreform for land transport,
5. Value added of Bank support in this project: Continuity ofBank support within the IAM Program fkamework will help emure achievement and sustainability ofthe outcomes, especially for sector reform. 3an.k experience in and support for emergency and risk management in the Pacific facilitates a full-scale implementation of improvements and risk mitigation measures, and the success ofthe participatory model in the first Phase provides a &g start to completion of the coverage ofall of Samoa. The Bank's experience and knowledge base in institutional reform and asset management for infrastructure and transport sectors has facilitated the success of the first phase.
E. Summary Project Analysis (Detailed assessments are in the project file, see hex8) 1. EconoIxlic (see Annex 4): a Cost benefit NPV=US$89 million; ERR = 46 94 (see hex4) 0 cost effectiveness 0 Other (specify)
The detailed economic evaluation for the project covers the road infrastructure component, comprising 71 percent ofthe project financing (66 percent ofthe project cost), is.: e widening of urban roads and bridges, e upgrading ofrural roads, and e rehabilitation ofthe West Coast Road,
The principal measured benefits included in the analysis are savings in vehicle operating costs, reduction in travel time, and enhanced road safety. The overall economic internal rate ofreturn for the project is estimated at 46 percent. The overall economic net present value 0,based on a 12 percent discount rate is estimated at WST 257 m (UStSXS m), with an overall benefivcost ratio of 10.3. A more detailed description ofthe analysis and results is presented in hex4. All components, and in particular the rural roads component, are expected to have positive social impacts. These impacts have not been quantified and included in the economic analysis, but will be followed through performance indicators. The following table smkesthe results ofthe economic evaluation.
For the coastal infrastructure component, a specific methodology for the evaluation ofthe CIM plans has been developed under IAM-1. The specific investments under this component are detededby the communities and are thus not known in advance. However, each investment under this component will be subject to an economic assessment, based on the methodology defmed under the previous project. Summary of Economic Evaluation
cost ERR NPV Component Description WST(m) (%IWST(m) at 12% 3. Roads and Other 27.7 45 257 Infrastructure 1. Apia Urban Network Vaitele Street West Widening, 7.0 74 98.5 Vaitele Street Central Widening 5.2 1 31 15.2 Fugalei St Widening 4s 41 13.5 Minor Traffic Management Measures 1.5 4.5 2. Rural Roads: Fagaloa Seal road from Le Mafa Pass to Taleafaga 1.5 39 2.0 3aY 3. West Coast Road Periodic Maintenance With Spot 7*0 57 124.0 Improvements
2. Financial (see Annex 4 and Annex 5): NPV=US$ million; FRR = % (see Amex 4)
Air Tr~~s~or~~~~~~~~0~: The wentfinancial performance ofthe SA4 is close to the forecasts made in the IAM-1 Project Appraisal Document, The operating loss is still about WST 1.2 million annually but declining gradually and will improve when the current round oftariff increases is implemented. Servicing of the W-1 credit on-lent from MOF is a major cost to their operation. Updated forecasts are in Annex 5.
Land ~r~~~~~r~~~~s~~~~r:Tfie current level of Govement expenditure on roads is WST 15.0 million per year, compared with a long-term average annual need of WST 25.1 million (or WST 34.1 million if a real 5 percent retum on equity is included). Currently there is no explicit road user charge for recovery of road costs, but revenues from roads include WST 4.5 million from €ked charges (vehicle registration and driver licensing) and WST 17 million from a fuel excise. Thus current road expenditures are covered by these revenues, and an additional WST 6S million is available for general purposes, If a fuel levy ofWST 0.25Liter is added, the annual revenue for road purposes increases to WST 25.1 million without reduction to other Government revenues $e., WST 6.5 million is still available for general purposes), The WST 0.25iLiter fuel levy is equivalent to 15 percent of the retail price of gasoline (WST I.69Liter) and is 60 percent ofthe present excise mount ofWST 0.41 ULiter,
Fiscal Impact: The impact ofthe Project on govement incomeireceipts is likely to be small, Identifiable taxes and duties including VAT are estimated at USs8.4 m over the 5-yr life of the Project (less than one percent of annual revenues). Proposed new road user charges are likely to be neutral in impact because, depending on the scale adopted under the Project, they could raise up to an additional $3.5 miyear (WST 10.5 m) through increased motor vehicle registration fees and a fuel levy, but this would be applied to raise road expenditures to near the optimum required for preserving the road assets. Initially, it was expected that about US$3 m ofthis cost recovery could offset investment costs ofthe Project. Counterpart funding requirements under the Project average WST 5.7 dyear, which is about 2.9 percent ofcurrent expenditures (1.7 percent of total expenditures). The annualized overall project costs are about I3percent of development expenditures. 3. Technical: Studies ofthe technical requirements and options, existing conditions and forecast demands were conducted during the first Phase L4M- 1 and during preparation ofthe second Phase.
Roads. The primary basis for selection ofa road program was the medium-term national Road Sector Plan, prepared in 2002 and endorsed by Govement in August 2003, which was supported by the newly introduced infrastructure asset management system, The resulting 10-year investment plan identified priority investment needs ofWST 40 million and recommendations on: e A critical lack of capacity and rising congestion in the Apia urban network, and the need for improving both the functionality of the network and the traffic capacity ofkey arkrial routes and bridges; e Improved capacity and safety in the western corridor between Apia and the Faleolo international airport on Upolu, with options ofeither improving the existing road or building an alternative route; Upgrading and sealing ofunpaved roads for (i)access to remote villages and (ii)residential areas; Curve improvements on the Cross-Island arterial road; and e Replacement or widening of 10 bridges. These priorities were analyzed in detail through three studies which evaluated the feasibility and developed the specific technical scope and standards proposed for implementation under the Project (see Annexes 4 and 14). The technical standards and methods applied for road geometty, pavement design, structural design and safety design were based on applicable Australian and New Zealand standards, and selected on the basis ofeconomic feasibility. rnfr~~t~ct~r~Risk ~jtjg~t~o~~ Guidelines on technical investigation and design for a variety of intervention options to mitigate natural hmdrisks were developed under IAM-1 + Use ofthese guidelines is required in the preparation of structural protection in coastal OK flooding areas under the Project to ensure (i>the selection ofthe most appropriate form ofintervention, and (ii>adequate performance and life. Some existing seawall structures are showing significant deterioration, thus application ofthe technical design guidelines should be made mandatory for all protective structures in the coastal and river zones, not only those financed under the Project, and be required through planning and EIA consents.
4. Institutional: Samoa has performed well in managing previous projects and has adequate capacity for implementing the Project. 4.1 Executing agencies: MOF, MI,and MNRE are the executing agencies under this Project, The MOF is fully familiar with project implementation procedures and World Bank requirements, and is planning to upgrade its fmancid management system. The newly merged and restructured MWTI has generally adequate capacity for implementation but is currently limited by significant staflshortages in road asset management, contract administration, and transport a~stration--supplementa~staffing support will be needed from some source as previous bilateral grant sources are currently not available, The I"RE has also recently been merged into a larger unit with expansion ofits functions, including disaster management, natural resource managemen4 and the new Planning and Urban Management Agency ~~A)--~nctionaland structural reforms were begun under W-1 and will continue under M-2*Governance is generally sound in all these agencies.
- 17- 4.2 Project management: Project management will be carried out by the IPSC, PMU, and Project Component Manager as set forth under Part C.4 oftfiis PAD, The project management smcture performed well under IAM-1 and includes minor improvements proposed for L4M-2 (as described in Annex 2). While the staffing of the core project management team is through fixed term contract, institutional capacity is being developed within the implementing agencies though the strongly participatory and matrix team approach that has been developed under the Program, the additional training provided, and the operation ofthe project team within the implementing agencies. 4.3 Procurement issues: The processes are generally sound, and experience with applying the Bank's guidelines over the past decade has been positive. Recently, the Government has begun the development of national procurement documents and guidelines, in conjunction with ongoing legal and public service reform and experience €rom past foreign-assisted projects. A CPAR is under preparation, Agreement and clearance ofthe standard documents for NCB works and for local consultant services which will apply to the project will be a condition for effectiveness. Governance risks are generally low, Six packages of civil works will be procured under ICB procedures - 5 in two slice and package bids, plus one. As the works will be concentrated contiguously on the main arterial roads, the aim is to optimize the management of trafXc delays and to stimulate strong competition for works prices. Wnder IAM-I, local consultant services were procured in a large number of individual packages as part ofthe transition from public to private service delivev - under fAM-2, these would be consolidated to reduce the high administrative overheads and delays that were involved. 4.4 Financial management issues: An assessment of ofthe financial management system was carried out and concluded that the project will meet "m Bank financial management requirements. The existing Project Financial Management System (PFMS) and accounting system per€ormed generally well in IAM-1. The PMUcomplied with the audit covenant consistently and the audit reports were unqualified. The banking arrangement is adequate, with the Special Account held at the Central Bank, where IDA funds are deposited. There were not major problem in the flow offunds from IDA to the find beneficiaries, For IAM-2, the software will be upgraded to achieve full functionality for reporting and hcialmonitoring. The system will be capable of report-based disbursement, but the implementation will first continue with transaction-based reporting and move to report-based later when the MOF is ready to apply this to other IDA-assisted projects. The accounting systems and software differ in each Implementing Agency (M), however, the present Project financial management arrangements cope with this and are considered satisfactory, so they would continue under L4M-2 with a few minor adjustments. The details on financial management assessment is in Annex 6 and the assessment report is in the Project file. 5. Environmental: Environmenal Category: 3 (Partial Assessment) 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis, There are not expected to be any environmental issues beyond those addressed though standard operating procedures which are in place (Codes ofEnvironmental Practice (COEP), for implementation of civil works, and Environmental Impact Assessment procedures (EIA)). All road, bridge, pedestrian facility, and coastal risk reduction subprojects would be subject to EL4 screening, and subsequent evaluations where necessary.
- 18- 5.2 What are the main features of the EMP and are they adequate? The initial Environmental Assessment (EA) was submitted to the InfoShop and disclosed in-country (26 February, 2003) and the final EA was submitted on August 2003, The EA, inter alia, assessed the existing environmental management mework(developed under Phase 1) as generally adequate for use in Phase 2, Suggestions were made for strengthening existing consultative, legal, and regulatory procedures to meet the requirements ofW-2. Institutional responsibility for developing and handling the environmental management framework will rest with MNRE. As noted, all road, bridge, pedestrian facilities, and coastal risk reduction subprojects will be subject to EIA screening and evaluations where necessary. Sub-projects considered to have no, or low, adverse environmental impacts codd be waived €rom the €urther requirements ofthe draft EL4 Regulations. Ordinarily the COEP will be considered adequate to cover the environmental management requirements on such projects. Frojects for which there are potential significant adverse environmental impacts will be subject to a full EIA process. For each sub-project, proponents (such as MWTI) will be responsible for liaison with and advising MNRE, preparing all environmental assessment submission documents, developing mitigation measures and alternatives, and ensuring affected com~tiesare consulted and kept ini%rmed. The proponents will also be responsible for implementing the sub-projects within the scope approved under the environmental assessment, implementing the works within the provisions of the COEP, and meeting any specific conditions ofEA approval. Adoption ofan environmental compliance monitoring system is required by June 2004.
5.3 For Category A and 3 projects, timeline and status ofEA Date ofreceipt of final draft: 25 March 2003. 5.4 How have stakeholders been consulted at the stage of(a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms ofconsultation that were used and which groups were consulted? The EA has been based largely on a review ofthe effectiveness of the EL4 provisions put in place for Phase 1 ofthe project, and those provisions have been judged to be generally satisfactory. Key stakeholders were consulted in-country with regard to the rekement of the EA and development ofthe Environment Management Plan (EMP). The draft EIA Regulations (which are yet to be passed by Parliament) require proponents to consult with and keep informed my local comUnities affected by the sub-projects, The draft EIA Regulations emphasize early communication between the proponent and ~vTNREto ensure that procedures are streamlined. The Regulations also require IviNRE to prepare and publish guidelines on EL4 procedures to proponents.
5.5 What mechanisms have been established to monitor and evaluate the impact ofthe project on the environment^ Do the indicators reflect the objectives and results ofthe EMP? Compliance monitoring will be done ofsub-projects to ensure that the scope ofworks does not differ from the scope approved under the draft EL4 Regulations, compliance with any COEP provisions, or conditions of EIA approval, In some instances appropriate baseline environmental information may need to be gathered and submitted with the EM, which should be identified in the subproject implementation plan - this wodd permit evaluation ofthe change of impacts over time. In addition, critical areas such as the coastal hmdzones will be monitored to identify the long-term trends ofnatural processes and quantify changes from the baseline conditions. 6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes, The project is expected to entail modest land acquisition, but no resettlement. A Land Acquisition and Resettlement Framework (LARF) has been developed and disclosed in-country and to the Infoshop (February 27,2003). The Framework outlines procedures which meet both Samoan traditionaUlegal practices and Bank procedures (as set out in OP 4.12) which will be utilized for any subproject involving land acquisition andor resettlement. The LARF includes an Entitlement Framework and Matrix which establishes clear entitlements for various classes of Displaced Persons (DP) and various kinds of assets. A basic Land Acquisition and Resettlement Action Plan was prepared for the Vaitele Street widening works, identifying 95 affected land-holders and land acquisition with an estimated value of WST 4 million, which was endorsed by Government on 21 November 2003 and disclosed on 28 November 2003.
The Social Assessment (SA) conducted for Phase 1 of the Program defmed key stakeholders, involvement of stakeholders in project preparation and implementation, and a community consultation framework for preparation and implementation. A new SA was carried out (see Annex 12 and project files), with the following findings: Improvements to the consistency and inclusiveness ofthe consultation process during implementation;
e Identification of emerging issues that will impact on the sustainability of the project (e.g., compensation). Improved involvement of stakeholders (especially intended beneficiaries) and the inclusion of potentially-excluded groups in decision-making and project benefits,
e Lessons fiom the restructuring of the Ministry of Works include: better strategies required for retaining core competencies, adjustment of the formula for redundancy compensation required, the importance of skills and small business training for those who desire it, and additional support systems needed for those taking redundancy.
e A baseline social assessment, stakeholder analysis and design of a community consultation framework for L4M-2 were produced. These showed overwhelming support for improved access to remote areas, but also a number of issues to be addressed in order to maximize returns fiom the project for the intended beneficiaries.
6.2 Participatory Approach: How are key stakeholders participating in the project? Key stakeholders hve been involved in project design and preparation at all stages. As part of the preparation of the LAW, workshops were held with representatives of local (village level) women’s committees (~~~~~~~T~~a~a~), P~~~~~~Councils (councils of mayors of local communities) and with key government agencies involved in preparation and implementation. The EA adopted a similar approach for participation of key stakeholders, The SA was also participatory, with interviews of all main stakeholders and particular focus on groups with women, youth and vulnerable populations in areas which will be impacted by the remote access component. 6.3 How does the project involve consultations or collaboration with NGOs or other civil society organizations? A variety of community-based organizations have been involved in project preparation and will be involved on a continuing basis during project implementation. As noted, ~~~~~~~ ~~~~~~~ (village level Women’s Committees) have provided important input to the development of the LARF, and will continue to be involved in work on improvement in the Land Titling and Registration process. ~~~e~~~ (Councils of Mayors) have likewise been involved, and will continue to be. Good dialogue has been established with the key national level institutional stakeholders, and this will also be continued during implementation. Various groups at the village level, including women, youth and vulnerable populations, have been consulted as a
- 20 - part of the social assessment, especially in areas which will be affected by the remote access component of the project.
It is anticipated that local groups, possibly civil society organizations, will be involved in ongoing monitoring and evaluation of project activities, particularly with regard to the impacts on remote access villages, Regular visits will be made to the villages involved in the remote access component and views of key local stakeholders will be solicited as an ongoing part of monitoring, evaluation and adjustment of project implementation. 5.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes? The key counterpart agency, MNflE, is fully committed to effectively hplementing the LARF and EMP. They have been hlly involved in the formulation and approval of both frameworks and are committed to their participatory aspects. Further specific monitoring strategies will be developed as a part ofthe SA process. 6.5 How will the project monitor performance in terms of social development outcomes? Performance indicators for social development will be fully developed as a part ofthe SA process.
7. Safeguard Policies:
7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies. Environmental Assessment: Initial EA completed and disclosed in-country and to Infoshop (February 26,2003).
Involm!xy Resettlement: A Land Acquisition and Resettlement Framework (LAW]was developed and disclosed in-country and to Infoshop (February 27,2003) and updated on November 20,2003, A Land Acquisition and Resettlement Action Plan &ARAF) was prepared by MWTI for the road widening works along Vaitele Street to be implemented mder subcomponent B.4 of the Project. Based on a detailed survey2conducted in accordance with the LAW and the preliminary design of the works, the report indicates no resettlement, land acquisition of about 2.1 ha from 95 land holders, and a schedule of compensation for land, structures and amenities which totals approximately WST 4 million. The LARAP, endorsed by MNRE on November 2 I, 2003, will be implemented in full prior to co~encementof the works, in accordance with the LAW and OF 4.12.
- 21 - F. Sustainability and Risks 1. Sustainability: The sustainability of the new slim arrangements for managing road and transport infrastructure (the current MWTI) after the major downsizing and reform in 2002 will be crucially dependent on successful staffing, and on advisory support in the transition stages.
2. Critical Risks (reflecting the failure of Critical assumptions found in the fourth column of Annex 1): Risk Risk Rating Risk Mitiaation Measure From Outputs to Objective Aviation-related revenues or restructuring M measures are restricted, or additional SAA Business plan and monitoring through expenditure obligations are imposed on Project SAA.
Budget allocation for road and bridge M Annual program and budget requirements to be preservation inadequate based on SAMs output. Road user cost recovery policy being advanced. Inadequate measures to apply and enforce M Issue of EIA regulations, and strengthening risk management plans, environmental status of CIMplans through link to regulations conservation, and controls on land use and on planning and urban management. behaviors
Establishment ofLand Transport M Monitor implementation ofestablishment of Authority inadequate to address issues of LTA and road cost recovery under "roadmap" staffing and operation adopted by Cabinet
Road user charges not implemented or M Timebound requirements for an action plan and structured to achieve substantial cost policy implementation plan on land transport recovery sector reform. From Components to Outputs Counterpart funding inadequate N Annual review and monitoring
Procurement procedures not applied N Regular review through IDA supervision transparently or competitively
Procurement delays impact M Regular reporting and monitoring through implementation schedule procurement schedule Legislation for major improvements to M Technical improvements to information land registration and titling not authorized management for land registration and titling are still beneficial. Implementation of land acquisition S Execution ofworks contract contingent upon delayed. completion ofLARAP, and budget plan. Overall Risk Rating M Maintain quality of project management by Borrower and of supervision by IDA I Risk Rating - H (High Risk), S (Substantial Riz I, M (Modest Risk), b Negligible or Low Risk)
- 22 - 3. Possible Controversial Aspects: Introduction of fuel levy for road cost recovery. Air transport - strong measures for improving financial sustainability, including minor airport closures,
G. Main CreditConditions 1. Effectiveness Conditions
(a) the Memorandum of Agreement has been entered into between the Borrower and the Samoa Airport Authority.
(13) the Program Steering Committee has been established; (c) the Project Management Unit has been established; (d> the Project component managers have been retained; (e) the fmancial management system has been upgraded; (f) the Borrower has adopted bidding documents for works and consultants' services; and (8) the Borrower has adopted the Operational Manual for administering grants,
2. Other [classify according to covenant types used in the Legal Agreements,] (a) The BOrroWer shall enter into a Memorandum of Agreement with SAA, acceptable to the Association, for the carrying out of Component A of the Project, under temand conditions which shall have been approved by the Association, including that SAA shall: (i)maintain operational standards on safety, co~~cationsand services at Faleolo International Airport and Maota Airport in accordance with ICAO and other international standards on safety, comm~icationsand services, including replacement or upgrading, in a timely manner, of instrumtnted landing system at Faleolo International Airport and any other selected equipment necessary for the maintenance of said standards; (ii)manage airport infrastructure assets at Faleolo International Airport and Maota Airport, provide budget, and carry out selected works, which works shall be selected based on an airport asset management system to be established under the Project, all aimed at achieving standards which meet performance requirements, satisfactory to the Association, for passenger, freight and aircraft; (iii)incorporate in its corporate strategy and business plans a plan for achieving full cost recovery of operating expenditures and investments supporting the requirements of (i)and (ii)above witfiin a hefkmeto be agreed with the Borrower; and (iv) adopt, by October 3 1,2004, a time bound action plan for rationalization of airport infrastructure, including consolidation of operations at the Faleolo International Airport and Maota Airport on Upolu and Savai'I, respectively, and the closure of air traffic operations at the Fagalii Airport, the disposition ofthe Fagalii land, and the facilitation of the associated changes in travel and operation.
Froiect Management
(b) Tne Borrower shall establish and, thereafter, maintain, until completion of the Project, a Program Steering Committee established within the Ministry ofFinance, chaired by the Chief Executive Officer of the Ministry of Finance and comprising representatives of the MI,MNRE, Ministry for Women, Community, and Social Development, and Public Service Comssion, and community, including two deputy chairpersons acceptable to the Association; with tems of reference satisfactory to the Association and assigned with such funds, responsibilities and resources as shall be required to enable it to provide
-23- overall guidance in the carrying out of the Project, review the progress of Project implementation, assist in achieving the Project objectives and complying with the terms and conditions ofthe Credit Agreement.
(c> The Borrower shall establish and, thereafter, maintain, until completion of the Project, the PMU within MOF, headed by a Project manager/proc~ementspecialist, provided with sufficient resources and such powers, responsibilities, organization and funding as shall be required to enable it to carry out the day-to-day management, monitoring and coordination of procurement, accounting, disbursement, financial management and other Project related activities, and reporting to the Program Steering Committee, and staffed with competent personnel in adequate numbers, including a Roject accoun~~financi~ management specialist, a social assessment specialist, and an a~s~ative/~o~atio~dissemination assistant, all under temof reference acceptable to the Association. (d) The Borrower shall retain and, thereafter, maintain, until completion ofthe Project one Project component manager within each MI and MNRE, for purposes of managing, monitoring and coordinating procurement, accounting, disbursement, €mancial management and other activities related to the carrying out of Components E and D ofthe Project, and Component C of the Project, respectively, all with qualifications and experience and terms of reference satisfactory to the Association,
(e) The 3orrower shall upgrade its ficialmanagement system for the Project by: (i>installing an accounting software, acceptable to the Association, in the PW,and thereafter training the respective staff in the use of said software; and (ii>preparing, adopting, and thereafter implementing, a financial management manual for the Project, acceptable to the Association, setting forth policies and detailed procedures for internal control, flow of funds, accounting and auditing, and maintenance of records.
(f) The Borrower shall: (i)maintain until completion of the Project, a financial management system for the Project, acceptable to the Association; and (ii>not abrogate, amend, assign, repeal, suspend or waive any provisions of the fmancial management manual. without the prior agreement of the Association.
(g) The 3orrower shall, by June 30,2004, appoint an independent auditor acceptable to the Association, under terms of reference satisfactory to the Association, to carry out annual audits of Project accounts and financial statements under the Project.
Project Implementation
@> The Borrower shall prepare and furnish to the Association, in a manner and substance satisfactory to the Association, bidding documents for works and comltmts' services to be procured under Components 3, C, D and E of the Project and, thereafter, finalize and adopt said bidding documents. (i) The 3orrower shall cause SA4 to: (i>maintain its corporate business plan; and (ii>by November 30 of each calendar year, commencing November 30,2004, until completion of the Project, review its financial performance, operation, and infrastructure rationalization, including minor airports, and prepare and furnish to the Association, for its review and comments a report integrating the results of said review, and, thereafter, finalize said report taking into consideration the comments and recommendations of the Association, and implement the recommen~tio~of said report. 0) For purposes of camgout Component 3 of the Project, the Borrower shall select Project sites in accordance with criteria satisfactory to the Association, and, thereafter, implement the respective Component 3 ofthe Project in a manner and substance satis€actoryto the Association. ($1 The Borrower shall: (i>prepare, adopt and thereafter apply the Operational Manual, satisfactory to the Association, as such manual may be amended from time to time with the prior agreement of the Association, in the implementation of Component C.4 of the Project, which Operational Manu1shall provide, inter alia, for: (A> procedure and criteria for appraisal and selection of Beneficiaries; @) appraisal
- 24 - criteria for design and screening for the carrying out of non-structural measures to mitigate risks from natural hazards; (C) terms and conditions governing the Grant Agreements; @) procurement procedures for goods, works and services to be financed out of the proceeds of the Grant; (E) process for monitoring implementation; and (F) financial management and disbursement ~angements;and (ii)not abrogate, amend, assign, repeal, suspend or waive any of the provisions ofthe Operational Manual and the Grant Agreement without the prior agreement of the Association.
(1) For purposes of the carrying out of Component (2.4 of the F'roject, the Borrower shall enter into a Grant Agreement with each Beneficiary on tenns and conditions satisfactory to the Association,
(m) The Borrower shall: (i)carry out the Project in accordance with the provisions of the Environmental Policy Framework, the Land Acquisition and Resettlement Framework, and the Resettlement Action Plan, as the case may be; and (ii)not abrogate, amend, assign, repeal, suspend or waive the provisions of the Environmental Policy Framework, the Land Acquisition and Resettlement Framework, and the Resettlement Action Plan without the prior agreement of the Association,
(n) The Borrower shall, by June 30,2004, establish an environmental compliance monitoring system within MNFSi, satisfactory to the Association and, thereafter, operate said system.
(0) The 3orrower shall, by June 30,2004: (i)prepare, in a manner and substance satisfactory to the Association, a he-bound action plan to develop, adopt and implement a transport sector reform, including reco~en~ti~nson cost recovery and sustainable financing for the road subsector, the establishment of the Land Transport Authority on terms and conditions satisfactory to the Association, and a consolidation of reforms in MWTI; (ii)adopt and, thereafter, carry out such action plan, in a manner satisfactory to the Association; and (iii)not abrogate, amend, assign, repeal, suspend or waive the provisions of the he-bound action plan, without the prior agreement of the Association. (p)- The 3orrower shall, though MNRE: (i)by October 3 I,2004, prepare and furnish to the Association, for its review and comments, draR regulations on environmental impact assessment and environmental management; (ii)January 3 1, 2005, adopt the regulations referred to in subparagraph (i) above, and, thereafter, retain relevant staff in adequate numbers shall be required to enable it to implement said regulations; (5)by June 30,2005, adopt regulations to enforce the application of requirements of the Coastal In€ras!mcture Management Plans which have or will be adopted by the Borrower, through its Ministry of Natural Resources and Environment and participating district communities, in the carrying out of assessments of compliance and clearance for planning of infrastructure development, land use and natural resource use in coastal zones; and (iv) by March 3 1 of each calendar year, commencing March 3 1,2005, monitor natural hazards zones and changes in baseline conditions, and, thereafter publish said information at least every three (3) years. (s) The Borrower shall, through MWTI: (i)enforce the requirements of the Interim Code of Environmental Practice dated January 3 1,2002, adopted by the Borrower for purposes of ensuring that sound environmental practices are adopted in all publicly-~ancedcivil works; (ii)by January 3 1, 2005, adopt the Code of Enironmental fractice for civil works, satisfactory to the Association, and thereafter enforce said code,
(r) The Borrower shall, by June 30,2004, authorhe the implementing agencies under this Froject to approve changes to contracts for civil works within the limits specified within the contract, and for contracts for consultants' services and goods within a limit of fifteen percent (1 5 percent) above the original price, notwitfistanding any law or regulation requirement in this regard in effect at the time of issuance of said authorization.
-25- Monitoring and Reports
(s) The Borrower shall maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators agreed upon with the Association, the carrying out ofthe Project and the achievement ofthe objectives thereof; and carry out a mid-tern review by 3 1 March 2006, and review said mid-term review with the Association by 30 June 2006,
(t) The Borrower shall: (i)through MWTI, by 3 1 March of each calendar year, commencing 3 1 March 2005, until completion ofthe Project, prepare, in accordance with the Samoa Asset Management System adopted by the Borrower on 3 October 2002, for the purpose of emuring efficient management of infrastructure assets, as updated from time to time, and thereafter implement, in a manner and substance satisfactory to the Association, a program ofmaintenance and rehabilitation ofprimary roads, bridges and coastal infrastructure to preserve the perfomance ofroad network assets within performance targets to be established and agreed with the Association by 3 1 March 2005; and (ii)through MOF, propose that budgetary funds are allocated as shall be required to ensure that the MWTI is able to prepare and implement the program referred to in subparagraph (i)above.
H. Readiness for Implementation €%I 1. a) The engineering design documents for the first year's activities are complete and ready for the start ofproject implementation. 0 1. b) Not applicable.
2, The procurement documents for the first year's activities are complete and ready for the start of project implementation. €%I 3, The Project Implementation Plan has been appraised and found to be realistic and ofsatisfactory qUality. CI] 4. The following items are lacking and are discussed under loan conditions (Section G):
1. Compliance with Bank Policies 1. This project complies with all applicable 3ank policies. 0 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies.
h/ 74 t 4 /A L William I). 0,Paterson Jitendra N. Bajpai Xan Zhu Team Leader Sector ManagerlDirector Country ManagedDirector
- 26 * Annex I: Project Design Summary SAMOA: Second Infrastructure Asset Management Project Key Performance Data Collection Strategy Indicators Critical Assumptions Sector-related CAS Goal: Sector Indicators: I Sector1 country reports: from Goal to Bank Mission) [mprove the quality and mproved and reliable . Rising perfonnance Treasury - Summary of justainability of country's nfrastructure promotes standards of transport Departmental performance nfrastructure :conomic growth and poverty infrastructure indicator reports illeviation - Risk mitigation program Public sector reform review active and expanding reports annually and nationally 'rogram Purpose: End-of-Program Indicators: 1 Program reports: from Purpose to Goal) Cey infrastructure assets are Cost recovery levels for each - Entity annual reports for sustainable and managed ubsector SAA, LTA and MNRE :ffectively by a partnership of Service quality ratings €or stakeholders. .oads, and for environmental nanagement
I Coverage of risk nanagement plans and :ompliance 'roject Development 3utcome I Impact 1 Project reports: from Objective to Purpose) 3bjective: ndicators: IAM-2 End-of-Project Peflected in two development Indicators ibjectives: e MWTI and MNRE are e Annual asset management e Reduced direct provision by Key infrastructure assets established, fully staffed and plans from MWTI and SAA. government will achieve perform satisfactorily with functioning. better use of public funds, sustainable resilience to e Project feasibility reports and promote sustainable natural risks. e All primary road, aviation, and MWTI program budget development of and public coastal report. infrastructure assets. e Oversight and management infrastructure assets are of infrastructure, natural under quantitative asset e PMRs and Min. Internal e Adequate competitionand resources and national management procedures Affairs records. innovation is maintained under thin market emergency are effective e Air transport, roads, and e Annual audited accounts conditions, with controls and efficient, with coastal infrastructure from SAA and MWTI. over risk of private sector participation ofprivate investments conform with monopolistic practices. sector and stakeholders. appraisal and sectoral plan e Authorization of CIM Plan. requirements, for at least e Good govemance 80% of national e NewMWTIannual environment maintained. investments. corporate report. e Incidence and impacts of e Protectionof coastal e Coastal asset management climate change and other communities is provided database. natural hazards are within through a Coastal expected range. InfrastructureManagement e Periodic reviews of vehicle Strategy (CIMS),adopted by operating costs, surveys of e Economy attracts and retain5 at least 80% of Districts, road conditions, traffic sufficient professional staff and accidents. and skills to sustain sector Cost recovery for public management. infiastructure assets reaches agreed targets, e No major external economic
- 27 - shock.
The share of infrastructure works and services provided through the private sector is at least 80 percent. Iutput Indicators: Project reports: from Outputs to Objective) Component: Outputs to Objectives) outputs A. Aviation infiastructure e ICAO operational standards e Safety and Performance No major disruption of financially sustainable and maintained Audits of Faleolo Airport. airline industry or travel in Percentage increase in pas- region. meets service and safety Independent Safety and sengers serviced, in line requirements. Operations Audit to ICAO e Unfunded obligations are with economic growth, standards; SAA records. not imposed on SAA or Airline.
3, The road system has 0 Length arterial roads with e Samoa Asset e Road and bridge improved capacity, safety and adequate capacity Management System preservation budget and program are based on resilience, and access for Number of bridges (SAMS) outputs. current SAMs output and remote communities and rehabilitated. data. Number of accidents per e Majority of the road Year* development program is fully appraised and based on the approved road sector plan. Road Safety Action Plan is fully adopted and implemented.
MNRE fully staffed and Leaders and politicians of Key natural resources and C. functional. coastal Districts endorse infrastructure assets are CIM Plans and managed sustainably with Coastal Asset environmental respect to environment, social Management database regulations. traditions, and risks. fully populated and 0 Ready access to geographic functionally integrated information will improve with SAMs. awareness of and response e Computerized land to development risks. e Geo-referenced land data
- 28 - I registration and titling will support broader use of system established. GIs-based asset e CIM Plans endorsed by management systems and coastal communities in at improve property least 80% percent of boundary data. Districts (34 of43).
D. Institutional Reforms e LTA established by 2005 vfvVT1 road sector reform 8 Transport authorities are complete and operational for e Road user charges begun oadmap ofNov. 2003 empowered and authorized land transport. July 2004 for cost recovery,
e Environmentallegislation I and regulations are approved.
E. IAM Program objectives e Percent progress and 2uarterly progress reports e Outputs and processes achieved on schedule and slippage against 2uarterly financial reports produced through the IAMP within budget implementation schedule will be sustained and built on by Government after closc a Actual costrestimated cost ofhoject ofthe Project.
Project Components I Futs: (budget for each 'reject reports: from Components to Sub-components: :omponent) futputs) A. Airport Infrastructure i1.06 m juarterly progress reports. AA obtains financing for A5. Air traffic control system. i1.06 m (goods, SAA) istmmented Landing System
B. Road and Other ;15.05 m idequate counterpart budget Infrastructure
3 1. Bridge replacement: i 1I 10 m (works and services e Adequate budget provided - about 4 bridges annually for preservation program. 32. Road rehabilitation: ;2.%3m (works and services) Improved procurement - West Coast Road resurfacing procedures applied & safety improvements (32 transparently, with full km). competition
B3. Road safety, pedestrian 11.26 m (works and services) and traffic facilities: - 3,000 m footpaths, and various traffic calming measures
B4, Road Network '8.93 m (works and services) .and compensation filly paid Development: In time - 4.1 km road widening
B5. Remote access roads: 10.97 m (works and services) e Selection criteria reflect - 3.9 km road upgrading. highest poverty impact
BS. Infrastructure Risk 10.96 m (works and services) Mitigation: - 1,000 m protection schemes and further program C. Sustainable Management $2.23 m a Legislative actions and of Infrastructure, Natural political endorsement are Resources and Risks timely
C4. Environment, Resource j1.50 m (goods and services) and Risk Management: 8 Adequate coordination Environmental mgt between DLSE, MWTI, e CIM Plans in 28 Districts and village councils. 8 Resource management 8 CIM strategy and Plans 8 Emergency management have adequate status to ensure implementation of risk mitigation measures C5. Land Administration and i0.53 m (goods and services) e MNRE has upgraded Survey computer technology and customer service. CS. Risk Adaptation $0.10m (grants) e Improvements Measures substantially completed before next major emergency event L I). Institutional Capacity 61.42 m Building
D5. Transport and ;1.3 1 m (services) 8 MWTI adequately staffed; Infrastructure strengthening: staff trained and MWTI functions empowered. e Land Transport Authority Functional transfer of 8 Road cost recovery transport functions from 8 SAA advisory support police to MWTI e MWTIsu~po~ satisfactorily completed. e Appropriate and timely actions on Statutory Authority status for roads & road transport. D7. Training 60.1 1 m (training, SOE)
E. Project management 61.83 m
E4. Management of IAM-2: 6 1.79 m (services) e Steering Ctte meets 8 PMU regularly 8 PCMforMW~ 8 Project mgt decisions e PCM for MNRE authorized by IA's E.5 Project Audit $3.04 m (services)
- 30 - Annex 2: Detailed Project Description SAMQk Second Infrastructure Asset Management Project
The Program objective to be achieved by the end ofthis Project is that ‘The transport and coastal infi-astructure assets of Samoa will become economically, environmentally and socially sustainable, managed by an effective partnership of all stakeholders”.
The first Phase, with a focus on “Meeting Vital fiorities and Strengthening Management”, invested in international airport infrasixucture crucial to economic resilience and strengthened the business management ofaviation; invested in smllprograms ofroad bridge upgrading and pedestrian facilities; shifted the public sector role in roads and coastal infrastructure to one ofasset management and service regulation and increased the private sector delivery of works and services; developed road asset management, transport and safety administration systems to support that role; assessed the risks ofcoastal zones to natural hazards and developed a national strategy and District-level plans for mitigating these risks and improving the resilience ofcommunities in a sustainable way, developed a valuable resource of geographic and land information accessible to all, and catalyzed development of information and co~~~atio~technology and policy.
This second and concluding Phase (LAh.I-2), with a focus on “Investing for Sustainable Growth and Resilience”, would fmance the support needed to enhance the economic, environmental and social sustainability of transport and coastal idfastructure assets, and to manage those assets, natural resources and disaster risks through an effective partnership with the private sector stakeholders. The physical investment includes road widening, bridge replacement, upgrading access to remote areas, safety and coastal protection works. Institutional strengthening will continue reforms ofair and land transport with the delivery ofinfrastructure services tfirough the private sector. It will also develop Sustainable management ofnatura3 resources and the environment and empower comunities and organizations to reduce their risks from natural. disasters.
The key elements include:
e Priority capacity and safety improvements to road infrastructure that were identified by the 2003 Road Sector Plan (7 1 percent); e Strengthening ofenvironment, risk and natural resource management, including completion ofthe risk mitigation plans for coastal Districts, strengthening the national approach to emergency management for natural and m-made risks, and improvements to land administration (1 1 percent); Priority coastal protection works and non-structural measures for mitigation ofdisaster risks (1 1 percent); and e Completing the current phase ofinstitutional reform in transport and infrastnncture, with emphasis on land transport and cost recovery (7 percent).
M-2will be implemented over four and a half years ending in June 2008 with the Credit closing in December 2008. It is structured around five component outputs, using the same structure as the first Project for consistency in the overall Infrastructure Asset Management Program (ZAMP).
-31 - Project component total costs in USD equivalent at negotiations, including contingencies but excluding VAGST; detailed costs including base costs can be found in Annex 3, Table 3. By Component:
Project Component A Airport Infrastructure - US$1.06 million OUTPUT A : All a~rport~n~as~ct~re assets are pe~o~i~~sa~sfac~~r~~,~n~er an asset ma~a~eme~t system a~d~na~c~al~s~~a~na~~e.
The performance ofthe Samoa Airport Authority (SAA) and ofits infrastructure assets at Faleolo Intemational Airport and the minor airports ofFagdi’i, Maota and Asau will be monitored against a strategic plan to be agreed by June 2004, SAA will manage the existing assets under a rolling 3-year business plan and new asset management system installed under Component D, No major new investments are planned, and maintenance and minor improvements will be financed by the SAA. A new Insbmnented Landing System will be installed at Fdeolo under SA4 financing (estimated cost USSl.0 m). The minor airport infixstructure will be rationalized in accordance with the 200 1 Minor Airports Study (MAS), including implementation of a phased closure ofFagali’i airport: on Upolu and review ofAsau airport on Savai’i, Under task D.6, specialist advisory services would support the installation of an asset management system cowering all airport infiastructure, and an annual review of the agency performance.
Project Component 3: Road and Other Infrastructure - US$16,06 million OUTPUT B : The road system has ~mpro~e~capacit)? safety and res~l~ence~and access for remote c~mm~n~t~esand Apia.
In Phase 2 this component supports investments in expanding capacity and extending the primary road network based on priorities identified under the Road Sector Plan, endorsed by Cabinet in August 2003, establishing an arterial road network to relieve rising congestion in Apia and lialr. with growth areas to the west, a small program ofimproved road access to remote areas, and continuation ofthe bridge upgrading, pedestrian facilities, road safety, and coastal risk reduction program.
B,1 Bridge W~~r~d~ng($1~10m base cos@: A sub-program comprising tvvo bridge replacements carried forward from W-1, plus others identified in the 2003 Road Sector Plan, is proposed, with specific subprojects being reviewed case by case against agreed criteria. Other priority bridge replacements have been included in the capacity improvements designated under section €34. e 3 1.05 Fagali‘i Bridge: A small ford on a peri-urban collector road on Upolu is to be replaced by culvert-type low-cost construction. e E1.06 Falefa Bridge: A low traffic single lane bridge, 33 m length, replacing an old unsafe bridge providing the sole access to remote villages in north-eastem Upolu from the Le Mafa Pass road. e B1.07 Bridge design services: Preparation ofengineering design and bidding documents for all bridges in the sub-program. e I3 1.08 Bridge supervision services: Supervision ofconstruction of all bridges in the subprogram, e Other candidates for bridge replacement to be reviewed as a sub-program against similar criteria (eg, possibly including Mulivai, Sili, Talimatau, etc. bridges):
- 32 - B.2 RoadR~~a~~~~t~t~o~($2.83 m): The West Coast Road, which is the existing main westem arterial on Upolu, the leading accident blackspot and vulnerable to erosion, will be resurfaced with localized safety improvements over the €ull length of 32 km, The treatment standard is less than full rehabilitation because the 2003 feasibility study ofthe western corridor showed preference for a Westem Mand Route (WR) to be built in the medium term of 5-20 years (see Annex 14). Special attention is given to improving pedestrian safety, public transport zones, and traEc calming through the many communities that straddle the road. The works have been designed under IAM-1by an international-local consultant team. Three packages totaling about $2.2 m will be procured under IC3 on a slice and package basis. Supervision will be by one local consultant firm. Implementationperiod Mar-04 to Jun-05.
e 32.01 West Coast Road rehabilitation design services (financed under VIM-1) a 32.02 West Coast Road rehabilitation supervision services a 32.03 West Coast Road rehabilitation works #1 - 11 km length a 32,M West Coast Road rehabilitation works #2 - 11 km length e 32-05 West Coast Road rehabilitation works #3 - 10 km length e 32.06 Westem Mand Route Planning and Design services B.3 Road safety and ~e~e~~~a~~~~~~~~~es($1.26 m): A program of high priority measures to provide pedestrian access and improve road safety in Apia around school, market and hospital areas, and around village settlements, where accident rates are highest, was begun under L4M-1 and will be conhued under WM-2. The interventions combine footpaths with trafic calming measures to create distinct safe environments for the interaction ofmotorized and pedestrian traffic, and help to modify pattems ofdriver and pedestrian behavior in urban and settlement areas, A new program ofminor works for traffic management to improve the efficiency and traffic capacity of the network and safety in the Apia urban area, identified by the Apia Road Network and Traffic Management Study, will be implemented. The works to be financed include: e B3.05 Lelata Street Pedestrian Improvements: Footpaths and pedestrian-related works on Vailele, Vaimase and Toomatagi Streets, with total length of3,050 1in.m. Contract awarded under LAM-1 through NCB procedures, expected completion Mar-04. 33.06 Apia Traffic Management Measures: Measures to improve traffic flow and safety at a number of locations in Apia will be designed under the ongoing Apia road network capacity design services, procured under NC3, with expected completion by 2006. Supervision ($0.03 m) to be delivered under 34 services. 3.4 RoadNetwork~eveEo~rtzent($8,93 m): The Project will €icea program of priority road capacity improvements which establish an arterial road network in Apia to relieve rising congestion and to link with growth areas to the west (see Annex 14). The primary east-west artery comprises a southern bypass ofthe central business district, along the existing Vaitele St, extending westwards towards the light industrial area in Vaitele and eventually eastwards to connect with the Apia port area, A secondary north-south artery would extend along Fugalei St through Vaimoso towards Faleata in the southwest. Core portions ofthis program comprising about 4.5 km ofkey arterial roads are to be constructed in time for the South Pacific Games (SPG) to be held in August 2007. The program comprises thee civil works packages, including road widening to four-lanes, bridge replacement, pedestrian and drainage works. Procurement will be in three packages under ICE procedures, two of which are on a slice and package basis, The feasibility studies and prelimhay designs were prepared during Project preparation, and detailed engineering and supervision will be €hanced under the Froject. The packages include:
* 33 - B4.01 Design and engineering services for road network capacity improvements: procurement by SSS as phase two of the feasibility study contract (ARNTMS); B4,02 Road Network Development Supervision services B4.03 Vaitele Road West civil works: comprising: (i)widening from 2 to 4 lanes from Vaimoso to Vailoa with 1.6 km length; (ii)construction of two small 4-lane bridges at Vaimoso (over Gasegase Stream) (30 lin m) and Lepea (over Fdtdasoa River) (20 lin m); and (iii)improvements to the junction at Vaimoso tr&k circle, Some land acquisition is required, estimated to be 2,023 sq. m. Procurement will be by ICB under slice and package with B4,03, €or a scheduled implementation period of 24 mths from mid-2004 to mid-2006 B4,04 Vaitele Road Central civil works: comprising: (i)widening from 2 to 4 lanes from Vain” to Falealili Street (the cross-island road) on 1.8 km length and (ii)construction of4-lane bridge at TaufUsfialovea over Vailima Stream, with 15 lin m length. Clearance of encroachments in the 22 m wide right-of-way will be be required but no land acquisition. Procurement by ICB under slice and package with B4,02, and scheduled implementation period of24 mths from mid-2004 to mid-2006. 34.05 Fugalei Street civil works: comprising: (i) widening the existing road fiom 2- to 4-lanes from Vairnoso to Convent Street, on 1.2 km length; (ii)widening of Fugalei bridge with length of 12 lin, m; and (iii)pedeskian footpaths and drainage improvements. Procurement by IC3 procedures, with scheduled implementation period of 18 months from mid-2005 to late 2005. €34.06 Resettlement Compensation: Expenditures on land acquisition and compensation for structures and amenities relating to road works, determined in accordance with the Land Acquisition and Resettlement Action Plan prepared for Vaitele Street works and such other works as may require them. Financed by Borrower through MNRE, 3.5 Remote Access Roads ($0.97 m]: Civil works for road upgrading will be financed on one section of Fagaloa Bay road, with 3-5 m wide sealed surface for 3.9 hlength from LeMafa Pass to Taleafaga, providing improved access to the hydroelectric power station and several coastal. settlements and reducing high maintenance costs associated with frequent instability repairs. Procurement will be by NCB procedures, with scheduled implementation of 12 mths fiom early 2004 to early 2005. a 35.01 Fagaloa Bay Road design and supervision services e B5.02 Fagaloa Bay Road road upgrading works: procured though NCB in one package, for implementation Mar-04 to Mar-05,
3.6 Infr~~~r~ct~reRisk ~~tiga~on ~e~s~res ($0.96 m): The Project will fmnce a rolling program of small works and interventions, identified from official Coastal Mastructure Management (C1IL.i) Plans endorsed by the participating communities and Government (MNRE;) and designed to reduce the risks from natural hazards. The program will implement three coastal protection schemes designed and procured under LAXII-I, and prepare and implement a small additional selection ofworks being identified from the CMPlans for 2004105, Le.: B6.0 1 IftM design services
a B6,02 ~~~~perv~~~o~services e 36.03 t in^'^ coasta~~rotec~ionworks: construction ofcoastal protection with length of about 3,000 lin. m. Procurement through NCB and implementation in 2004,
-34- e 36.04 ~~~fo~o-u~aand ~a~ono-ufa coas~a~ work: construction of coastal protection with length of about 3,000 Xin. m, Procurement through NC3 and implementation in 2004. e I3605 IRiM Works Program 20041'05: comprising civil works for a program ofrisk mitigation to be identified through the Samoa Asset Management System and the relevant CIM Plans.
Project Component C: Sustainable Management of Infrastructure, Natural Resources and Risks - US$2.23 million
OUTPUT C : Infrastructure assets, natural resources, land and national emergency systems are under environmentally and socially sustainable management.
This component addresses a range ofissues affecting the sustainable management of infrastructure assets and natural resources, under the themes of environmental management, natural risk management (particularly the impact of natural hazards on infkastructure), emergency management, land management (including land administration and management ofnatural resources), and infortnation management. It is structured into two sub-components for the purposes ofimplementation, as follows. Each will be implemented under MNRE though a consulting fm procured internationally through QC3S procedures - certain tasks will require high participation by local fums and personnel.
C.4 ~~~~ro~~e~~,Risk and Resource ~a~ageme~~($1.50 m): Advisory services and equipment as follows:
e C4.01 ~n~~ron~enf,Risk and Resource l an age men^^ Technical assistance dl be provided through one consulting services contract procured through QC3S covering four tasks:
(1) Environmental Minagement: This will help environmental management become a mainstream activity ofthe MNRE and all stakeholders in inf3-astructuredevelopment and maintenance, through the following activities: (a) Findise the EMregulations so that they can be endorsed by Cabinet and passed into law - the requirements would then apply to all government and private sector proponents; (b) Provide hrther support and training in environmental management practices (including the Codes ofEnvironmental Practice) relating to physical works, especially targeted at the construction industry; and (c) Institutionalise the process ofdata collection for environmental monitoring and impact assessment as a routine activity.
(2) Natural Risk Management: The existing approach on risk management would be broadened, including completing the coverage ofDistrict-level management plans nationwide, and assessing the effectiveness ofthe current approach, through the following activities: (a) Adaptation and broadening of the Coastal Mastructure Management (CIM) Strategy to address all natural risks in both coastal and dand areas by: (i)incorporating issues relating to climate change adaptation (which, apart fiom sea-level rise effects which is in the strategy a present, considers inter alia changes in the persistence and frequency of extreme events); and (ii)incorporating strategies for other types ofhazards (e.g. flooding, landslips etc.); (b] Preparation ofCIM Plans for the remaining 28 Districts on Upolu and Savaii, following the highly participatory approach developed under IAM-1 involving the effective participation ofvillage inhabitants, endorsement ofthe village councils (fiono), coordination within the District, and endorsement by the Minister; and (c] Survey the effectiveness of the management plan approach with respect to public awareness and acceptance ofthe CIM Plans across various comunity groups (e.g. ma~a~,women, youths etc,),
- 35 - and implement modifications as appropriate. [Note: The CIM Plans are currently used to control the risks relating to the use ofnatural resources, inhtructure development and economic activities - it is proposed that they should be used as National Planning Documents and be accepted as Sustainable Management Plans (SMPs) as provided for under the proposed PUMA Act.]
(3) Resource Management: Environmental management of natural resources (covering aggregates and minerals, fisheries, forestry, watersheds, conservation and heritage lands, national parts etc.) is an emerging core function ofTviNRE. The tools and approaches that have been developed and applied to infi-astructure management in coastal hazard zones can be extended to the management ofnatural resources. This task would train and support MNRE to better manage and provide policy advice to government on natural resources using GIS as an analysis tool. The specific activities will be identified during project implementation, but will be strongly tied to the initiatives identified from, or making use of, the ClM Plans and the policy development objectives for IviNRE as specified in its corporate plan. One example is likely to relate to policies on sustainable aggregate supply. There would also be coordination with related activities, especially those addressing 'soft solutions to risk mitigation, such as proposed GEF-financed activities (e.g., conservation ofglobally significant wetland ecosystems in Samoa; and Climate change adaptation in coastal communities), and other activities (e.g,, SPREP project on capacity-building for development ofadaptation measures in Pacific Island countries, a PUMA study on sanitation and drainage study, etc.).
(4) Emergency Management: The National Emergency Management Plan would be updated to be consistent with best Pacific practice, so that there is an emphasis on risk reduction as well as readiness and response to emergencies. Under a best practice model, the leadership and emergency management during a response phase would be confined to a few (perhaps three) people with significant executive authority. Apart from rewriting the Plan, the activities would include: (i) workshops to align the approach forward amongst various stakeholders; (ii)training and professional development; (iii)community and organisation awareness training (implemented in conjunction with the CIM Plan consultation process); (iv) event simulations; (v) additional equipment; (vi) preparation of supporting legislation; and (vii) review ofoptions for disaster management insurance. Direct or bilateral support fiom major emergency management agencies in the region, or existing regional programs, will be sought where appropriate to assist in the supply of equipment, to guide implementation and operation, and to assist in mentoring, professional development and training.
C4.02 EWe~~~~ent: (i)Information technology to support disaster and emergency management, natural resources and environment management; (ii)Establishment ofnew disaster and emergency management office; (iii)Satellite radio communication equipment - procured through international and national shopping. e C4.03 Vehicles: Two vehicles for support ofthe reformed emergency management organization, procured through UnitedNations IAPSO.
e C4.04 ~~cre~entul~~eruting Costs for ~~~ Incremental operating costs incurred by MNRE directly related to the Project, including travel per diem and transport ofProject staff and other participants, rental of facilities, publication and dissemination ofProject-related materials, office supplies and consumables, and communication, but excluding salaries and allowances.
- 36 - C.5 Land Ad~jn~~~a~~onand Survey ($0,53 m) : Improving the reliability and accuracy of location-referenced information, including the registration of land titles and the administration oflands, through the provision oftechnical assistance and equipment, Le.:
C5.01 Land Admin~~~a~iOnand Suwey Services: Technical assistance through consulting services procured under QCBS procedures for two tasks, Le*:
(1) Survey and Geographic Information: Modem survey and information technology would be established as the basis for managing all location-based data and land administration data. First the accuracy ofthe survey control network for the national Samoa Integrated Grid (SIG) would be upgraded to a standard suitable for cadastral survey, and to tie into the currently used Lemuta cadastral datum. This upgrade would allow all forms ofsurvey information, e.g., data from aerial photographs or detailed ground surveys, to be accurately linked within databases for scientific, engineering, planning, management and policy development purposes. The associated survey regulations would also be upgraded to reflect the new survey standards, Second, technical standards would be developed to eliminate technical barriers to the exchange of information between agencies, such as discrepancies found in location data deriving from differing technologies. These new standards (e.g., the precise definitions for geographical datums, projection standards, methods ofdatum conversion, topographical data dictionaries, and meta-data standards for layers and details used in geographical databases and drawing files) would be published by MNRE, probably through their webpage for convenient access. This initiative is consistent with the GoS’s dr& policy on ~nfo~at~onand C~~m~ni~a~ion Tec~no~o~je~ to ensure “cooperation between stakeholders,”
(2) Strengthening ofLand Administration: The land administration system (registration and titling) would be strengthenedfrom the cutrent largely deeds-based system to one based on the Torrens system. Associated legislation and procedures would be developed through a consultative approach, and extensive training and liaison provided for MNRE and industry stakeholders lawyers and surveying professionals. The initial improvements to land administration under IAM-2 would focus on the administration of freehold and government land which is through MNRE, and involve: (i)Systematizing the cadastral system so that all stakeholders are utilizing an accurate GIS mapping system which is miform and easily translatable across d clients; and (ii)Changing the legal framework from a deeds to a Torrens system, which will substantially reduce the contestability oftitle. For customary land, the system would be designed to allow the authority ( pule) over customary lands to be recorded, and customary land would be gradually brought into the improved mapping system in two ways, viz: (i)when a customary land issue is brought to the Lands and Title Court for adjudication, the land would be surveyed and recorded in the new system; and (ii)when customary land is leased the h4NRE has the responsibility to survey the land to determine exact boundaries for leasing purposes. It is not intended to incorporate the Lands and Titles Cowt itself in the reforms at this stage, however, relevant stakeholders would be consulted to assess any support for extending the reform initiative, perhaps under separate assistance.
e C5.02 Land Adm~n~~a~~nand Suwey ~~u~~ent: Global positioning system, land administration software and related goods, through international shopping.
C.6 ~j~~ Ada~~a~~nMeasures ($0.20 m) - In conjunction with and complementary to the infrastructure risk mitigation program, a program of adaptation measures to mitigate natural risks will be undertaken through the provision ofsmall grants to communities, Eligible activities include non-structural actions to
- 37 - mitigate natural risks, e,g., rehabilitation of rnangrove areas, bioengineering stabilization techniques, beach replenishment, dissetionand awareness raising, control ofsand-extraction, etc., especially those identified in an authorized risk mitigation plan, including a CIM Plan. Eligible recipients include village or District councils, and non-govemment organizations (NGO)). Grants wodd be disbursed after submission and clearance ofeligibility compliance and an implementation plan.
Project Component D: Institutional Development in Transport and Infrastructure - LIS$1.42 million OUTPUT D : r~~t~tjona~reforms are co~~~eted,~pera~ona~ and s~ta~na~~e for efective policy, oversight and asset managementf~r the infras~~t~~esector.
D.6 ~ran~p~rtand rnfra~~ct~re Sector reform and strengthen~ng($1,31 m): The subcomponent will help to develop the new Ministry ofWorks, Transport and Infrastructure and strengthen its performance, though two related activities, i.e.:
D6.O 1 ~ran~p~rtand rn~as~r~c~~re Sector refom and s~engt~enjngServices: Tecfinical assistance €or : (i)establishing appropriate institutional structures for land transport, roads and other public infrastructure responsibilities, such that it will be able to function eRectively in providing the roles ofpolicy and planning, regulation, inhstructure and operations management, and service delivery; and (ii)advisory support for air transport infrastructure. Areas that have been identified for assistance include: e Preparation ofa Corporate Plan
0 Advice on effectively combining Works and Transport under one Ministry e Creation of a Road Operation Division
0 Transfer and strengthen the functions ofvehicle and driver administration in the new Ministry e Strengthen Policy and Regulation functions for all transport e Design and introduction ofroad user charges to recover road preservation costs
0 Improved design and implementation ofthe Road Safety program e Assistance with human resource development, in training and shffmg
0 Strengthen asset management procedures for road and coastal infiastructure program development, budget preparation and monitoring using the SAMs (Samoa Asset Management System) e Asset monitoring support
0 Improvement ofthe procurement processes
0 Improvements to contract preparation and administration procedures e Advice and assistance with the design, legislation and establishment ofa Land Transport Authority by late 2005, a Advisory support for Sarnoa Airport Authority (SAA), with regard to the Program objectives, corporate and business plans, operation and planned closures of minor airports, financial performance, etc.; and
- 38 - Establishment and training in operation ofasset management system for the SAA, covering all airport infrastructure.
A consultant firm will be selected through international QC3S procedures, and &e services will be provided over a period ofthree years from 2004 to 2006 on an intermittent basis.
D6.02 ~ngjneer~~g~u~~ort to MWTL Provision of two individual engineering specialists to support MWTI operations during the institutional development phase.
D6.03 ~ncre~en~Q~~~erat~~g Costs in ~~: Incremental operating costs incurred by MWTI directly related to the Project, including travel per diem and transport ofProject staff and other participants, rental offacilities, publication and dissemination ofProject-related materials, office supplies and consumables, and communication, but excluding salaries and allowances.
D.7 ~ra~n~~g($0.11 m): Development ofkey competencies in staff involved in project-supported functions in selected stakeholders under the Project, including the provision of training.
Project Component E: Project Management - US$1.75 million OUTPUT E : The Project achieves the ~~~~r~gra~de~elo~me~tobjectives and targets, within budget, on time and in c~m~~iancewith safe~Qrd and lega~~roy~~~on~.
E.4 Project Ma~~geme~t(31.83 m]: The project management framework established for IAM-1 will be continued with modifications. A Project Management Unit (PMU), administered by the MOF and reporting to the multi-agency Project Steering Committee, would be responsible for delivering the project outputs within budget, on time and in compliance with the safeguard and legal provisions ofthe Government and IDA. The PMU would be staff% by three persons (project manager, project accounmt and administrator) through a consulting h,on a less-than-fullthe basis. Each other implementing agency, MWTI and MNRE, would either employ an individual consulmt or designate a staff person as a project component manager (PCht), to manage the procurement, supervision, contract administration and progress reporting for all activities implemented by the respective agency, The firm would be procured on basis of single source selection, extending the services ofthe existing firm under revised terms ofreference. The two PCMs would be procured under individual consultant selection procedures. The contracts comprise: E4.0 1 Project Management Unit (firm): comprising a Project Manag~/procur~entspecialist, a Project Accoun~~f~cialmanagement specialist, and a ~isseminatio~A~s~ativeperson, employed on a less-than-full tirne basis over the duration ofthe Project; E4,02 MWTI Project Component Manager (individualj E4.03 MNfiE Project Component Manager (individual) E4.04 Project Dissemination materials: for the purpose ofraising public awareness ofthe objectives and achievements ofthe Project, and sharing knowledge with other natiod and international stakeholders. E.5 Project Audit ($~.~4m]: h independent auditor acceptable to txle Association would undertake annual fmcial audits ofthe Project accounts. Financed by Government.
- 39 - Annex 3: Estimated Project Costs SAMOA: Second Infrastructure Asset Management Project
Local Foreign Total Project Cost By Component US $million US $million US $million 1. Airport Infrastructure 1.04 0.00 1.04 2. Road and Other Infrastiructure 9.26 5.02 14.28 3, Sustainable Management 1.16 0.99 2.15 4, hstitutional Development 0.72 0.64 1.36 5. Project Management 1.06 0.70 1.76 Total Baseline Cost 13.24 7.35 20.59 Physical Contingencies 0.71 0.47 1.18 Price Contingencies 0.52 0.3 1 0.83 Total Project Cost: 14.47 8.13 22.60 Total Financing Required 14.47 8.13 22.60
Local Foreign Total Project Cost By Category IUS $million US $million US $million Goods 1.22 0.16 1.38 Works 8,23 5.22 13.45 Services 3.70 2.71 6.41 Training 0,06 0.04 0*10 Grants 0.10 0.00 0*10 Operating Costs 0.10 0.00 0.10 Resettlement Compensation 1.06 0.00 1.06 Total Project Cost: 14,47 8.13 22.60 Total Financing Required 1 14.47 8.13 22.60
Note: Costs net of VAT
-40 - Table 3: Detailed Project Costs by Subcomponent U8D Mllllon sass Cost Base Cost Total Wl IDA Oovt Tala Total Contingencies Total Total
A. Airport Infrastructura 3.00 1.04 1.06 1.06 A6 Air Traffc Control 3.w 1.@4 1.06 1.M
B. Road B Other Infraotructura 41.39 14.28 18.08 9.11 8.5 6.1 Brldge Upgrading 2.85 0.98 1.10 0.68 0.42 31.05 Fagalii Bridge 0.65 0.22 0.25 0.15 0.10 31.06 Faieia Bridge 0,85 0.22 0.28 0.15 0.10 31.07 Mulivai Bridge 1.w 0.35 0,40 0.24 0.16 31.08 Other Bddges 0,w 31.09 EngineeringDesigns 0.35 0.12 0.12 0,09 0.04 31.10 Constructlon Supervision 0.20 0,07 0.07 0.05 0.02 31 Road Rshabllltatlon 7.30 2.52 2.83 1.73 1.10 32.02 WCR Construction Supervision 0.5s 0.19 0.20 0.15 0.05 82.03 West Coast Road -A 2.15 0.74 0.84 0.51 0.34 82.04 West Coast Road - 3 2.15 0,74 0.84 OS1 0.34 82.05 West Coast Road - C 2.14 0,74 0.84 030 0.34 82.06 WIR Planning 8 Design 0,343 0.10 0.10 0.06 0.04 3.3 Road Safaty and Trafflc 3.23 1.12 1.26 0.76 0.49 33.05 Feiafa Streets 2.40 0.83 0.92 0.56 0.x 83.06 Apla Traffc Management 0.85 0.29 0,33 0.20 0.13 1.4 Road Network Devslopment 23.00 7.94 8.93 4.73 4.20 84.01 Design Services 0.70 0.24 0.25 0.15 0.10 84.02 SUpeWbion I.40 0.48 0.50 0.30 0.20 34.03 Vaitele St. West 7.10 2.45 2.80 1.69 1.1'1 34.04 Vaitele St. Central 6.20 2.14 2.47 1.48 0.99 34.05 Fugalei St. 4.m 1.59 1.85 1.11 0.74 84.06 Land Compensation 3.M) 1.04 1.06 1.06 B.5 Remote Access 2.49 0.88 0.97 0.80 0.38 85.01 EngineeringDesign and Supervision 0.29 0.10 0.11 0.08 0.03 35,02 Fagaloa Bay Woda 2.20 0.78 0.66 0.52 0.35 B.6 InfrastructureFilsk Mitlgatlon 2.50 0.88 0.98 0.59 0.37 86.01 IRM Design 0.10 0.03 0.03 0.03 0.01 86.02 IRM Supervision 0.20 0.07 0.07 0.05 0,02 86.03 Mulinuu 0.67 0.30 0.34 0.20 0.14 86.04 Manonoifaslioo 1.03 0.36 0.40 0.24 0.16 36.05 IRM Program 200-4105 0.30 0.10 0.12 0.07 0.05
C. Sustainabla Management 6.23 2.15 2.23 1.33 0.84 CA Environment, Riok, and Resource B Emergency Managament 4.M I.4d 1.50 0.91 0.58 C4.01 ERREM Servloes 3.40 1.17 1.22 0.73 0.49 C4.02 ERREM Equipment 0,40 0.14 0.14 0.09 0.m 01.03 Vehicle3 0.20 0.07 0.07 0.04 0.03 W.04 MNRE Incremental Operating Costs 0.18 0.06 0.07 0.05 0.02 C.5 Land Admlnlstratlon8 Survey 1.75 0.80 0.83 0.38 0.25 C5.01 Land Administration 8 Survey Services 1.43 0.50 0.52 0.31 0.21 C5.02 !AS Equipment 0.30 0.10 0.11 0.06 0.04 C.8 Risk Adaptation Measures 0.30 0.10 0.10 0.10
D, Institutional Dsvelopment 5.96 1.37 1.42 0.96 0.47 0.8 Transport and InfrastructureDsvslopment 3,8% 1.28 1.31 0.84 0.47 D6.01 Transport and Inhelructure Strengthening 2.66 0.99 1.04 0.62 0.41 06.02 Transport Engineer Support 0.72 0.25 0.26 0.20 0.05 D6.03 MWTl lnuemenialOperating Costs 0.06 0.02 0.02 0.02 0.01 0.7 Trainlng 0.30 0.10 0.11 0.11
E, Projed Management 5.10 1.78 1.83 1.31 0.43 E.4 Project Management 5.00 1.73 1.80 1.35 0.45 €4.01 Project Management Unit 3.20 1.10 1.15 0.66 0.29 E4.02 Project Managers MWTl 0.90 0.31 0.32 0.24 0.08 E4.03 Project Managers MNRE 0,w 0.31 0.32 0.24 0.03 E.5 Project Audit 0.10 0.03 0.04 0.04
contlngsncies 5.80 2.00
Total Project Cost (excluding VAT) 65.50 22.60 22.60 12.80 9.81 1 Identifiable taxes and duties are 5.62 (US$m) and the total project cost, net oftaxes, is 16.98 (US%m), Therefore, the project cost sharing ratio is 75.38% of total project cost net of taxes.
-41 - Annex 4: Cost Benefit Analysis Summary SAMOA: Second Infrastructure Asset Management Project
Summary of Benefits and Costs:
1. The Second Infrastructure Asset Management Project @AM-2) continue~extendsinvestments in physical components initiated under W-1 , and adds a new component on rural roads identified under the 10-year Road Sector Plan. The economic evaluation of the project covers the following project components: (i) upgrading of urban roads and bridges; (ii] ma1roads upgrading; and (iii) West Coast Road maintenance. The coastal protection works will be subject to an economic analysis, sub-component by sub-component, as the communities decide on the works to be included 2. The economic internal rate ofreturn (EIRR) for the major portion ofthe project is 46 percent, with a cost of WST 28 m and net present value of WST 258 m, Tfie following table sm~zes,by component, the results of the economic analysis.
Table 4.1: Summary of Economic Evaluation Description cost Em NPV Benefit (WSTrn) (96) (WSTm) Cost at1294 Ratio 1. Apia Urban Network Vaitele Street West Widening - Vailoa 7.0 74 98.5 15.1 St to Fugalei St Vaitele Street Central Widening - 62 31 152 3.5 ~ugaleiSt to Falealili St kugalei St Widening 4.5 1 41 1 13.6 1 4.0 borTraffic Management Measures 1.5 j N/A j 4.5 1 4.0
2, Rum1 Roads: Seal road &om LeMafa Pass to 1.5 39 2.0 2.3 Fagaloa 3ay Taleafaga 3. West Coast Road Periodic Maintenance With Drainage 7.0 57 124.0 18-7 and Spot Safety Improvements Total 27.7 1 46 1 257.8 10.3
Source: Consultants estimates
Main Assumptions:
3. The analysis is based on the actual and forecasted data on traffic volumes, economic project costs, vehicle operating costs, benefits to transport users, and communities served by rural roads. The following inputs and assumptions were used in the economic evaluation:
-42- evaluation ofbenefits over a 20 year period;
m base year (2003) traffic estimates derived from traffic counts (200 1~ 20021, and origin and destination surveys (2003); e an annual traffic growth rate of3 percent is assumed across the network, except 3.5 percent for the West Coast Road and 6 percent for Fagaloa Bay due to suppressed and generated traffic; e capital investments and maintenance costs reflect 2003 prices; e the benefits stream, discounted to the opening year ofthe road being evaluated, includes savings in VOC and travel time. 4. This annex describes the economic evaluation ofthe three main components described above - urban roads and bridges, rural roads, and the West Coast Road,
Urban Roads and 3ridges 5. The proposed civil works investments in roads, bridges, and pedestrian facilities have the objectives ofimproving the efficiency and safe operations ofthe road tramport system, and enhancing the Apia road network capacity, in the context of increasing motorization and traffic growth. These works are in line with the overall priorities for expanding capacity and enhancing the primary road network, identified in the Road Sector Plan and endorsed by Cabinet in August 2003. 6. Roads and bridges proposed for inclusion in the project are assessed within a programmatic framework. The Samoa Asset Management System (SANISj for investment program analysis has been developed and implemented under WM-1, incorporating a life-cycle economic analysis based in part on the Batik's Highway Development and Management model (HDM-4j. SAMs was used to evaluate asset conditions and service levels; these evaluations then provide the quantitative basis for work prioritization and annual budget allocations. Bridge works yield benefits in the form ofreduced accidents, maintenance of access, lower life cycle costs, and time savings from smoother traffic flow. The bridge replacement work within JAM-2, includes completion of two bridges (Saleia and Falevao) and construction oftwo bridges carried over from IA.M-1. These are Fagali’i ford and Falefa bridge, justified as shown in Table 4.2. Other priority bridge replacements have been included in the capacity improvements for the Apia urban road network.
Apia Urban Road network 7. An. Apia Road Network and Traffic Management Study (AWMSj was completed during preparation to identify a program of works to improve traffic conditions and reduce congestion in Apia. The study included development ofa traffic model, based on extensive data collection, consultation and site inspections (see Annex 14). The study and modelling exercise resulted in preparation ofa road hierarchy for Apia; the traffic assignment model developed for the study relied on the assumptions and inputs described in paragraph 3 above. For pedestrian facilities, the cost-benefit analyses assessed the expected savings deriving from reduction ofaccidents, fatalities and injuries. Sensitivity analyses tested the impact of varying costs and benefits on the economic viability.
-43- Table 4.2: Proposed Priority Bridge Replacements
3ridge Cost (USD m) MDT ]Benefit, Condition Fmctiod (vehlday) Cost Alternatives ratio Saleia 0.13- L4M-2 3 150 4.6 single lane, east On only link to share of contract approach washed south coast of cost 0.52m away Savai'i Falevao 0.22 -L4M-2 > 250 11.6 single lane, bailey On only link to share of contract timber deck some E-SE coast of Upolu cost 0.96m corrosion Fagali'i 0.36 1,125 4 1.5 lane ford, slab Main link to broken & scoured domestic airport Falefa 0.77 > 40 7s Single lane, Only link to two corrosion below villages, and no timber deck alternative routes
8. The following priority investments, demonstrating the best economic return, are included in this component.
Improvement Road condition Em
141 , Vaitele St. West widening: Vailoa - High traffic flows and bad congestion 74 Vaimosa A2. Vaitele St. Central widening Upgrading needed to arterial standard 31 A3. Urban Traffic Management schemes Necessanr to imnrove traffic flows NIA 144. Fugalei Street widening Upgrading needed to accommodate 41 traffic flows
9. The AJ3"MS has identified a program ofminor works for traffic management-the interventions combine footpaths with traffic calming measures, and help to modify patterns ofdriver and pedestrian behavior in the urban area. These measures, which will be implemented under LAM-2, help improve the efficiency and traffic capacity of the network and safety in the Apia urban area.
West Coast Road
10. The existing West Coast Road (WCR-)provides access from Apia to Fakolo Aqort and Mulifanua inter-island whrK It was identified in the Coastal Mmtrucwe Management Strategy (CIMS] as being at risk of severe storm damage and closure. The existing pavement is deteriorated and the road requires periodic maintenance and widening to cater for future traffic demands. The economic analysis showed that there was a strong case for creating a new idand route which would allow the existing WCR to revert to a local access road, increasing safety and reducing pollution. This inland route wodd also eliminate the risks of road closure due to cyclones. The cost of the WRwill depend upon &e €mal route selected and its connection to the existing network in Apia as discussed in Annex 14. The feasibility study proposed locating the WIR. 0.5-1.2 hinland from the existing WCR and terminating at the WCR in Vaitele. This was estimated using f-IDM to cost WST 42 m with an EBR of45 percent. 11 As a result ofthe above finding, the standard ofrehabilitation ofthe existing WCR was reduced to resurfacing and selected rehabilitation, and resealing drainage and spot safety improvements to all sections ofthe West Coast Road. The cost is estimated at WST 7 m. Using I-IDM, the ERR was 66 percent and the NPV WST 124 m at a discount rate of 12 percent. High retums such as these are con" when there has been a persistent shortfall in maintenance expenditure over a network and a large backlog ofwork has accumulated.
Rural Roads
12. Tfie rural roads feasibility studies included three rural roads providing all-weather access to remote communities: Fagaloa Bay road, Sauniatu and Tiavea roads. Feasibility studies were done on three rural road projects where communities were remote and dis~vantagedby the poor passability of the roads: Fagaloa bay, Tiavea and Sauniatu. The Sauniatu road upgrading was found to be uneconomic, even with a 3 m sealed width and, instead, a cost sharing mgement with the local organization was being considered. The Tiavea road services a small comunity of 6 families4 was not possible to justify upgrading this road, however?the Appraisal Mission recommended that the IdWTI perform limitedmaintenance and regravelling to restore passability and to ensure that the road is kept open.
13. Fagaloa Bay is a moderately sized commdty of approximately 1,000 persons in four main villages (Taelifaga, Lona, Musunusu and Ulfato). The existing connection to Le Mafa Pass Road is unpaved and travels over a steeplands area. it is often closed due to landslides or pavement failure due to inadequate design and drainage. The residents of the area are severely disadvantaged by the road condition as it often creates difficulties for accessing medical care and schools. It also limits the opportunities for economic development as there is a high risk that produce cannot be taken to market. The improvement of the road linking the village of Taelefaga with Le Mafa Pass Road to a 3 m paved road in mountainous areas, and 5 m on flat sections, was found to be economically justifiable. Widening would also be provided on curves. Extending the road 3,1 km. from Talefaga to Lona is marginally uneconomic due to the additional costs of coastal protection works. The ERR for this investment was calculated using HDM as 39 percent and the NPV WST 2.0 m (pp 18 Supplementary Economic Assessment report). Inclusion of additional uncosted development and access benefits would have resulted in an even higher level of economic retum.
LeMafa Pass - Talefaga / 3.9h Cost WST 1.5 M Motorized traffic (MDT: 2002) 47 NPV WST2.0M
Traffic growth rate/ year (including generated 6% BCR 2.3 and suppressed traffic)
Coastal Protection Infrastructure
14. Samoa is exposed to severe hazardous weather, specially cyclone events. These events damage the natural coastline as well a man-made assets located in the coastal hazard zone. The Coastal Infiastmcture component ofIAM-1 focussed on the development of a Coastal Mastructure Management Strategy (CIMS), based on an integrated and environmentally sustainable approach to planning and managing coastal infi.astxucture assets. The Strategy includes the development of Coastal hfkastructure Asset Plans
-45- for all (28 plus) districts in Samoa, these plans operationalize the Strategy. The CIM plans have been developed through a process ofintensive and systematic consultation with communities living in the hazard zone. The Strategy has also identified a methodology for the economic evaluation ofproposed investments withthe Coastal Infrastructure Management (CIM) Plans. Based on this, the coastal protection works identified for inclusion under IAM-2 are: (i>Satui-Manono-uta, (ii)Fasito'o-uta--cmhuing protection of the WC Road, and (iii)M~u'u--comple~g the gap in the Apia harbor wall.
Sensitivity analysis I Switching values of critical items:
Apia Urban Road Network
15. The ARNTMS study sensitivity analysis showed that the road improvements were econonomically viable @IRR > 12 percent) when the construction costs were increased by 20 percent. Decreasing travel thecosts by 20 percent made the A.4 Fugalei St widening marginally uneconomic. Decreasing traffic growth by 50 percent made A.2 Vaitele Central and A.4 Fugalei St widenings uneconomic. All scenarios showed that there was a strong case for A1. Vaitele West widening. No switching values were provided in the consultant's report.
West Coast Road
15. The consultant's study found that the most sensitive factor was the amount oftraffic diverting to the new inland route along with the length ofthe idand route, The project was economically viable even when capital costs were increased by 30 percent and traffic growth decreased by 25 percent. A reduction of 30 percent in the vehicle operating costs did not affect project viability.
17. The switching vdue was 502 percent for capital cost increase and 80 percent for road user benefit reductions.
Rural Roads
Sensitivity test and switching values for this component were not available.
-46- Annex5 Financial Summary SAMOA Second Infrastructure Asset Management Project Years Ending June I IMPLEMENTATlON PERIOD I Year1 I Year2 1 Year3 j Year4 I Year5 I Year6 I Year7 Total Financing Required Project Costs Investment Costs 1.5 4.7 6.1 5.1 3.7 1.5 0.0 Recurrent Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Costs 1-5 4.7 6.1 5.1 3.7 1.5 0*0 Total Financing 1.5 4.7 6.1 5.1 3.7 1.5 0.0 Financing IBRDHDA 0.8 2.4 3.2 3.2 2.3 0.9 0.0 Govemment 0.7 2.3 2.9 1.9 1.4 0.6 0.0 Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Ca-financiers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 User FeeslFJeneficiaries 0.0 0*0 0.0 0*0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Financing 1.5 4.7 6.1 5.1 3.7 1.5 0*0 Main assumptions:
- 47 - 1.053 1338 0.853 1,059 1.240 1.334 1,436 1.546 I 663 4.2% 5.0% 2.5% 1.59 1 1.996 2.053 1.823 2,810 3,169 3,573 4.028 4.542 15.3% 10.0% 2.5% 0.059 0.075 0.070 0.066 0,083 0,087 0.091 0,096 0,101 8.6% 2.5% 2.5% 2.704 3.308 2.986 2,958 4,133 4.590 5.100 5.670 6,306 11.2% 2,421 2,736 2.435 2.659 2,650 2,784 2.925 3.073 3.229 2.3% 2.5% 2.5% 0.352 0,520 0,439 0,320 0,461 0.497 0.534 0.575 0.619 7.0% 5.m 2.5% 0,144 0244 0.197 0.389 0.392 0.43 1 0.475 0.524 0.577 28.4% 7.5% 2.5% 5,621 6,809 6,056 6.325 7.636 8.302 9.035 9.842 10.731 8.% 0.149 0.137 0.113 0.141 0.120 0.123 0,126 0.129 0,132 -5.2% 0.0% 2.5% 5.770 6,946 6.169 6.467 7.756 8.425 9.161 9.971 10.863 7.7%
3.395 3.957 4,913 5,059 4.m 4.982 5.170 5.365 5568 9.W 1.25% 2.556 1,977 2,576 3.422 3.628 3.700 3.581 3.466 3.355 3.247 17,Wo 0.321 1,163 1.213 1.250 1,250 1.250 1.250 1.250 0.079 0,076 0,155 0.241 0.250 0.256 0 153 0.269 0.276 33.2% 0.056 2.5% Total 5,451 6,931 9,654 10.151 10.m 10.069 10.149 10,239 10.341 16.4% NeI hcow- ~Lmsi 0,319 0,015 0,485) (3.684) (2.244) (1.6~) (0.9881 (11,268) 0,522 3. CpsflFIOw Cprh iWw I“ operndng afdvidps cash w pmvided f“: cashfiwnc”€?z 5.381 7.364 6.516 7.119 7.756 8,425 9,161 9.971 10.863 &h was disburred 10: hy”6 to SuPpIiaJ, enqlloyss 13.198) (4.014) (5.656) (5543) (5.050) (5238) (5.433) (5.635) (5.844) lntmat paid M OVcrdraA (0.003) (0.m5) (0.013) (0.027) - SUbtoBL (ash dihmsd) (3.201) (4.018) (5.659) (5,570) (5.050) (5.238) (5.433) (5.635) (5.844) Net 4 Row OPBaring 2,180 3.345 0,848 1.549 2.706 3.187 3,728 4.336 5.019 Ea& %ow Iram lamliag adivitkr Cndlmpnidedfiwn: Fmd assoL3 saicr 0.010 0.076 0,025 0.101 0.050 0.050 0.050 0,050 0.050 IlItPmt on t€¶n deposit 0.049 0.097 0.096 0.076 0.043 0,022 SubmmI (df” i“m) 0.059 0.172 0.122 0.177 0.093 0,072 0,050 0,050 0.050 cash waj applied to : Fired nszee purchases (1552) (1.863) (1.480) (1,359) (1.500) (1.500) (1.500) (1.500) (1,503) hcleasz in Lcnn *ita - (0.Scq) - (1.190) - Redudion in m liabilities - (0.2%) (1.3Ml) (1.930) (2,536) -
P3imipl q”mt ~ (3,217) Intnramwloan - (0305) (0.463) (0300) (0303) (03W) (03W) (0,300) (0.300) Suhtal (cash m for ioveshnr) (l.SS2) (2.767) (1.943) (2.849) (2,056) (3.160) (3.730) (4,336) (5.0ln Ne cash Row invsring (1.493) (2.595) (1,822) (2.673) (1.963) (3,088) (3.680) (4.286) (4.%7) casll balm= Net ina(k.j cash irld 0,587 0.750 10.974) (1.123) 0.743 0.099 0.048 0.051 0.052 4 h@t fwd 1.129 1.815 2165 1.591 0.468 1.211 1,310 1,358 1.409 ~faj~~~1.815 2.565 1.591 0.468 1.211 1.310 1,358 1,409 1,461
53.568 62.700 62.700 62.700 59.432 60,114 60.629 60.999 61.224 (19.959) (19,871) t-23.4w (27,Wl) (29.28s) (30,929) (31.917) (32.185) (3 1.663) 33.598 42.829 39296 35.660 30.147 29,185 28.712 28,814 29.561
0.742 0,830 0.000 0” 0.842 1,309 1.358 1,409 1.461 1.073 1,735 1,828 0.717 0.369 0.w O.m 0.W O.m 1.096 1,274 1,087 (0.007) l.w 1.w l .m 1.W 1.m 2.169 3.w 2.914 0,710 2.21 1 2.310 2.358 2,409 2.461 (0.680) (2.147) (1.472) (6.503) (6.503) (5.143) 13213) (0.677) (0.6-n) 2,232 1.692 1.442 (1.174) (4292) 0.833) (0.%54) 1,nz 1.784 (19.182) (20.519) (19.776) (19.776) (19.776) (19.776) (19.776) (16.559)
62,021 93.256 94,719 96256 97.706 99.1% 100.635 102056 103.5M (30.654) (32,937) (36.346) (39.6%) (43.491) (47.362) 151.263) (55.198) (59,170) 31,366 60.319 58,373 56.610 54,215 51,794 49 342 46,838 44335 Td 33,598 42,829 39.2% 35.6M1 30.147 29.185 28.712 28,814 29.561
- 48 - Annex 6(A): Procurement Arrangements SAMOA: Second infrastructure Asset Management Project
Procurement
General 1. Procurement of works and goods will follow the Guidelines-Procurement under XBRD Loans and IDA Credits dated January 1995, revised in January and August 1996, September 1997 and January 1999 (the Guidelines). IDA'S Standard Bidding Documents (including standard prequalification and bid evaluation documents) will be used for all IDA financed procurement canied out by Xntemational Competitive Bidding (XCB). Bidding procedures for contracts procured under National Competitive 3idding (NCB) will use local procedures and bidding documents, as modified to ensure economy, efficiency, transparency, and consistency with Section I of the Guidelines, The main modifications needed are in the areas of: participation in bidding, advertising and time for bid preparation, use of Standard Bidding Documents, classification of contractors, qualification and post-qualification, registration, bid opening and evaluation, rejection of bids, post-bidding negotiations and inspection and auditing of accounts, all of which are covered in an Annex to the DCA. Procurement of consulting services will conform to the Guidelines - Selection and Employment of Consultants by World 3ank Borrowers dated January 1997, revised in September 1997, Jan~mry1999 and May 2002. A Procurement Plan, providing a timeline for each step in the procurement process is included in the Project Xmplementation Plan (BPI€'), and will be updated quarterly.
Procurement Assessment of Implementing Agencies
2. An Assessment of Agency's Capacity to hnplement Project Procurement has been carried out in respect of the three agencies involved in this project, namely, the MOF, the WE,and the MNRE. All these agencies have previous experience in donor-financed procurement, but there have been some staff changes because of a govemment reorganization, so some additional support and training will be necessary. The Action Plan in the Assessment proposed the following key actions: by negotiations - completion of the 3orrower's Project Implementation Plan @PIPj, addressing the procurement issues specific to this project including the Procurement Plan (draft cleared); by credit effectiveness - establishment of PMU, appointment of Project Component Managers, agreement on a set of national bidding documents being prepared by the Govemment, and preparation of fust year's bidding documents; recruitment and training of procurement staff will be reviewed on an on-going basis during implementation of the project. The conclusion of the assessment was that the oved procurement risk was Average and the mitigation measures suggested are aimed at controlling and lowering the risk.
Procurement methods (Table A) 3. The project costs by procurement arrangement are shown in Table A. Works with an estimated contract value of US1 million equivalent and over for a total cost of $9.63 million will be procured by XC3. The remaining works include small and scattered contracts for bridges, roads, road safety, traffic management, and coastal protection for a total of $3.82 million, and will be procured by NC3. Clearance of bidding documents for works is a condition ofcredit effectiveness. IC3 will be used for 72 percent ofthe value ofworks procured under the project.
4. Goods to be procured under the project are limited in quantity and are mainly specialised equipment related to the cadastral survey and land registration information management components.
-49- Goods with a contract value estimated to be US$l~0,~00equivalent and over for a total cost of $0.2 million will be procured by IC3, and other goods will be procured through International and National Shopping. Vehicles, with an estimated contract value of ~S$70,000, will be procured through the Inter Agency Procurement Services Office &AJ"'). ICB will be used for 67 percent of the value of goods procured under the project.
5. Consultants will be selected using DA Standard Request for Proposals (MI?)- Selection of Consultants dated July 1997, revised April 1998, July 1999 and March 2002 for contracts estimated to cost ~S$2~~,~00equivalent and over with a total cost of $3.74 million. Contracts estimated to cost less than US$2~~,~~~equivalent with a total cost of5 1.77 million will be procured using local RFF documents, which are based on IDA'S Standard Request for Proposals. Clearance ofthese documents is a condition of credit effectiveness, Firms will be appointed using Quality and Cost-Based Selection (QCBS) for most contracts having a total cost of $3.96 million, with an option for using Least Cost Selection (LCS) or Consultants' Qualifications (CQ) for small contracts of less than $100,000, as shown in Table AI. Firms will be appointed using Single Source Selection (SSS) in three cases with a total cost of $1.51 million where justified in accordance with the Guidelines and with IDA approval, eg: (i)for detailed engineering of the road widening works, selected competitively as phased services under the Project preparation activities; (ii)for engineering of the remote access roads, in continuity from feasibility studies and due to the smd scale; and (iii)for project management, where continuity between project implementation and preparation phases was deemed crucial to timely performance. Individuals will be appointed for the two Froject Component Manager positions using competitive selection as the default method. Sole Source Selection for individuals may be used where justified in accordance with the Guidelines and with IDA approval. All consulting assignments with a contract value estimated to cost more than ~S$200,000 equivalent will be advertised in UN Development Business, All assignments will be advertised in two national newspapers.
6. Miscellaneous, Some small activities to the value of US~~00,000will be carried out through Grants to local communities or NGOs, disbursed and monitored in accordance with procedures outlined in an Operational Minual, which is required as a condition ofcredit effectiveness. Incremental ouerating costs incurred by the hrrower for eligible activities directly related to the Project with a total cost of $~0,000 and expenditures on eligible activities would be reviewed and disbursed through Statement of Expenditure procedures,
7. Contractors for IC3 works, with a total cost of $9.63 million, will be prequalified in accordance with IDA guidelines. Contractors for NCB works are registered according to class with MWTI, but foreign contractors who wish to bid are permitted to do so and will be post-qualified. The conditions of acceptability ofthe registration procedures are indicated in an Annex to the legal agreement,
Prior review thresholds (Table I))
8. The thresholds for procurement by ICB, NCB, and Other methods are shown in Table B. The thresholds for prior review are ~S$6~0,000for Works plus the first contract under each sub-component valued at under ~S$600,000, US$50,000 for Goods, and US$l00,000 for consultant services contracts with €iand US$50,000 for consultant services contracts with individuals. Prior review would apply to 89 percent of the total value ofworks, goods and consultant services procured under the project. Ex-post review would cover 30 percent ofcontracts not subject to prior review,
- 50 - National Competitive Bidding - Mandatory Provisions
9. Because of some differences between the Tenders Board Guidelines for Procurement and the Sank’s Guidelines, a sideletter has been attached as an Annex to the DCA detailing the mandatory provisions to be followed when procuring goods or works through NC3. Procurement methods (Table A)
Table A: Project Costs by Procurement Arrangements (US$ million equivalent)
Figures in parentheses are the amounts to be financed by the IDA Credit. All costs include contingencies.
21 Includes goods to be procured through international and national shopping, vehicles to be procured through MPSO, consulting services, training, incremental operating costs related to supporting field and consultation activities for the project, and grants to communities and NGO’s for non-structural risk reduction measures.
- 51 - 1 (0.00) (0.00) (0.00) 1 (0.00) 1 (0.00) (0.68) 1 (0.00) 1 (0.68) Total 3.96 0.00 0.00 0.00 0.00 2.41 0.04 6.41 (2.49) (0.00) (0.00) (0.00) (0.00) (1.77) (0.00) (4.26)
Note: QCBS = Quality- and Cost-Based Selection QBS = Quality-based Selection SFB = Selection under a Fixed Budget LCS = Least-Cost Selection CQ = Selection Based on Consultants’ Qualifications Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial Practices, etc. N.B.F. = Not Bank-financed Figures in parentheses are the amounts to be financed by the Bank Credit.
- 52 - Prior review thresholds (fable 3)
Table 8: Thresholds for Procurement Methods and Prior Review'
Contract Value Contracts Subject to Threshold Procurement Prior Review Expenditure Category (USS thousands) Method (US$ millions) 1, works Civil Works =. 1000 IC3 1w Civil Works <1000 NCB All contracts of US~b00,000and over and first contract less than ~S~b00,000under each sub-cmp"nt 2. Goods >100 IC3 All 400 LAPS0 1w contracts over ~S~~0,000 3. Services Consulting Services - All QCSS, Other All contracts over firms US$l00,000 and all SSS contracts Consulting Services - Other 1 ndividuals All All contracts over US$50,000
Total value of contracts subject to prior review: USS17.5 million Overall Procurement Risk Assessment: Average Frequency of procurement supewision lnissions proposed One every 12 months (includes special procurement supervision for p~st-~ev~ew~a~~~~
L\ Thresholds generally differ by country and project. Consult "Assessment of Agency's Capacity to Implement Procurement" and contact the Regional Procurement Adviser for guidance.
- 53 - Annex 6(B): Financial Management and Disbursement Arrangements SAMOA: Second Infrastructure Asset Management Project
Financial Management 1. Summary of the Financial Management Assessment
Financial Management. The fitInfrastructure Asset Management Project has an established fmancial management system (FMS), including accounting, reporting, budgeting, auditing and proper internal control systems. The financial management reports, consisting of sources and uses of funds, special account statement and related procurement reports are currently generated, partially from a computerized accounting system.
The FMS was subject to a detailed review and assessment carried out by an IDA accredited Financial Management Specialist, in accordance with the Bank's OPBP 10.02, the Project Financial Management Operations Manual (FMOhii), Guidelines for FM Assessment, Financial Monitoring Reports: Guidelines to Staff, and Assessment of Financial Management Arrangements in World-Bank Financed Projects. The FMS ofthe PWmeets the mini" IDA financial management requirements.
The FMS and disbursement arrangements for the second IAM Project are being redesigned together with the Ministry of Finance, to resolve the difficulties encountered in the first IAM Project. The computerized accounting and financial management system will be upgraded to a higher version to facilitate the reporting system and meet the requirements of both the Government and the World Bank. The associated financial risks in project implementation were identified and basic financial accounting controls are put in place to mitigate the risks during supervision.
The FMS is designed according to the scope, objectives, and components of the Project. The organizational arrangements for project implementation will follow the same set-up as IAM-1. A Project management team, engaged as external consulting fm, will supervise project implementation and procurement administration. The Project will follow the same Government system for arranging disbursements and project accounting, through the Central Bank ofSamoa.
The audit reports under IAM-1 were received regularly in accordance with the legal agreement, and all audit opinions were unqualified.
FM Risk Analysis. A risk analysis exercise to identify significant hancial management risks associated with this project was conducted, and the risks assessments are highlighted below:
I~~ere~tCountw Risks. The inherent country risks relate to the potential impact of the environment in which the project operates, is., Government rules and regulations. Overall, based on the following discussions, the inherent country risks are rated as moderate. The risk rating moves along a graded scale: high, substantial, moderate and low.
(a) ~u~~et~~system for timely compilation of departmental and national budgets is in place. Budgets are prepared for both financial and physical outcome parameters. Mechanisms are in place to link these budgets to the national economic strategy (SES); quarterly reporting ofactual reasults is also in place; and recent legislation (e.g., the Public Financial Management Act) introduced significant changes in improving public fmancial accountability and transparency in the count^^. The Ministry ofFinance is leading the implementation of these changes. Govern~enta~co~nting system follows the double-entry method, and maintains a moued-cash basis in accordance with the intemational accounting standards (though the Government expects to move to accrual basis in the future). The MOF’s 10-year old computerized accounting system will undergo an upgrade, according to the Government’s plan. Quarterly financial results are reported on a regular basis, in compliance with the Government laws and policy, The government accounting is centralized at the Treasury Department of the MOF, and the accounting system in some of the line ministries (e.g,, MWTI) and departments are currently undergoing changes to improve the capacity. The plan is to install a computerized accounting system in the line ministries and departments to establish direct communication with the MOF, as well as promote good governance and transparency in the system.
Auditing* The Chief (External) Auditor has the benefit of institutional independence, as provided by the country’s constitution. The Audit Offke is a member of the INTOSM, the international professional body of Supreme Audit Agencies. The audit scope includes financial compliance, and gradually extended to performance audits as well, Extensive pre-audit checks are exercised on all budget payments processed by the Finance Division of the Treasury Department. Audit reports are publicly disclosed after these have been tabled at parliament. Regular training programs are arranged to upgrade skills available. The audits of public accounts are not completed on a timely fashion, with delays ofup to one year (e.g., the audit report for the fiscal year June 30, 2001 was submitted to the parlilament a year later). The Audit General has plans to reduce this starting
2003 I
Risks inhere~tin s~ecificproject entities related to FM risks inherent in entities involved actively in project implementation or management. 3ased on the existing FM capacity in the PMU and the needs of IAM-2, the risks inherent in specific project entities are moderate in both the Treasury Department (TD), Ministry of Works, Transport, and Infrastructure (MWTI) and the PMU. The TD and the MWTI are currently upgrading the financial accounting systems and intemal controls are strengthened. In the MWTI, there is a need to strengthen the capacity and accounting skills of the staff. The old accounting policies require an evaluation to ensure internal controls are in place, The accounting skills and capacity are better in both the TD and the PMU, The accounting systems are computerized, and the financial statements are produced regularly. Payment processing controls in the TD appear tight, with pre-audit ofall transactions by the Audit Office; and adherence to international accounting standards is kept. The audit reports for the past years have been unqualified. in her en^ risks specific to the proposed IAM-2 and the proposed action plan, Based on earlier discussions regarding inherent risks and the project design features, the existing financial management arrangements will be enhanced and the following were agreed upon:
~it~drawalApplica~jo~ MAS). The current arrangement under IAM-1 will continue, as illustrated herein: (i)For replenishment ofthe Special Account, a withdrawal application will be prepared monthly by the PMU (with supporting documents) and submitted to TD-Finance Division for verification, certification and signature before transmitting to IDA; and (ii)WA for reimbursement will be prepared by the PMU on a quarterly basis (with supporting documents such as SOE statements or FMRsj and sent to TD for verification, certification and signature prior to transmittingto IDA.
~inancialReaorts and Acco~n~in~Procedures. The PMU will adopt the same procedures used in preparing financial reports under IAM-1. Quarterly financial management reports will be prepared by the PMU and included the overall quarterly progress reports submitted by the PMUto both TD and IDA. The
- 55 - accounting procedures (discussed in detail in the assessment report of July 22-27,2003) currently used by the FWwill continue in the proposed IAM-2. These procedures allow for minimum basic financial controls: (i)reconciliation of disbursements recorded in project accounts with bank statement provided by TD to the Special Account; (ii)monitoring of unspent balances against each procurement contracts; (iii)a check on serial numbering of payment vouchers; (iv) comparison of actual expenditure against budgeted amounts for each sub-component of the Project, as well as for line item expenditures, is., goods, civil works, and consulting fees; and (v) monitoring ofphysical progress ofproject implementation.
Project Reporting Requirements, Monitoring and Evaluation Arrangements. These will include: (i) submission of quarterly financial management reports; (ii)conduct bi-annual IDA Supervision missions; (iii)carry out a mid-term review (about two years later, after the date of effectiveness of the credit); and (iv) joint-preparation of the implementation completion report by IDA and the Government within six months ofthe project’s closing date.
IDA will conduct bi-annual supervision mission and mid-term review (after two years from date of effectiveness) with TD on the basis of a report prepared by the PW,and this includes: (i)an assessment of progress in the implementation ofkey actions and performance indicators (see Annex 3); (ii)verification of the continued validity of the design assumptions in light of implementation experience and the evolving environment; and (iii)identification of remedial actions that might prove necessary to achieve the objectives of the Froject. Bank supervision mission,s including financial management will be conducted twice a year, Quarterly FMRs including mual audit reports will be submitted to IDA for review and comments,
The related covenants to the fmancial management systems are included in Section G of this report, and described specifically as: The borrower^^ shall submit audit of its project accounts witfiin six months after the end of each fiscal year; (ii)The Bo~ower~~shallfiunish quarterly financial management reports to IDA within 30 days after each quarter,
2. Audit Arrangements
A combined audit ofthe kancial statements, Special Account and the financial management reports will be conducted under tams ofrefmmce acceptable to IDA. An independent auditor will be appointed by June 30,2004 under terms of reference acceptable to IDA
3. Disbursement Arrangements
Funds Flow, At central level, the MOF will open one Special Account denominated in US dollar currency for receiving funds from the Bank, and will set up a separate Project Account (GFA 99) for UM-2, which will be treated as a Bank Account, instead ofopening another account for the project in a commercial bank. Any payments will be charged to individual “child accounts’’ for each project component identified under the parent GPA 900 coded account with a separate GPA sub-account for the counterpart contribution from which taxes will be paid out. The Special Account will be opened at the Central Bank,
The GPA account will have an opening balance from the counterpart contribution to UM-2under implementing agencies’ budgets and hdstransferred from the Special Account (held with CBS), based on a payment request provided by the PW. The payments to third parties will be initiated by the Phrlu based on approved contracts. The MOF-TD will record all payments based on the illustration below:
- 56 - Tfie detailed procedures follow:
(a) Project Component Manager (PCM) approves invoice submitted by consultant i supplier based on a signed contract and work progress (b) Head of Implementing Agency certifies payment voucher prepared for approved consultant’s / supplier’s invoice (c) PMU (Project Manager I Project Accommt) will veri9 payment voucher (with approved invoice and contract as supporting document) by stamping it with ‘approved for payment’ stamp (hcomplete payment voucher is returned to WPCM for fiwther action) (d) PMU (Project Accoun~t~records transaction in project accounting system and submits it to MOF (Finance division); a copy ofthe payment voucher is retained at PMU for follow up (e) MOF - Finance division checks payment voucher and passes to Accounts division for processing of cheque or telegraphic transfer (TT) out of the GPA account (8 PMU receives all cheques and remittance advices oftelegraphic tmmfers from Finance division for updating the project accounting system (g) PMU dispatches all cheques directly to consul~nts/supp~ers a) PMUrequests monthly GPA account statements fiom Finance division - MOF for reconciliation and preparation ofquarterly Financial Management Reports (FMb)
- 57 - Withdrawal Applications (WAS), (i]For replenishment of the Special Account, a withdrawal application will be prepared monthly by the PW(with supporting documents) and submitted to TI>-Finance Division for verification, certification and signature before transmitting to IDA; (ii)WA for reimbursement will be prepared by the PMU on a quarterly basis (with supporting documents such as SOE statements or FIVE&] and sent to TD for verification, certification and signature prior to transmitting to IDA.
Supenision Plan. The Bank‘s Financial Management Specialist will join the supervision team at least twice a year to ensure the financial safeguards are in place. The quarterly financial reports @MRs) and annual audit reports will be reviewed and comments will be provided to the PWMOF.
Allocation of credit proceeds (Table C]
Table C: Allocation of Credit Proceeds , Expenditure Category Amount in USSmillion Financing Percentage Works 7.34 Goods 0.19 local expenditures (ex-factory cost) and 90% oflocal expenditures for other items proired loca~~y. Services 4.26 80% for foreign individual consultants, 75% for local finas and local individual consultants, and 67% for foreign fms. Incremental Operating Costs 0.07 75% Training 0.10 ~-~100% - 100% ofgrant amount disbursed Unallocated 0.74 Total Project Costs with 6ank 12.80
Total 12.80
Use of statements of expenditures (SOEs): Similar to the current system used under W-1, withdrawals from the credit will be made using transaction-based disbursement procedures which include full documentation of expenses and SOEs, SOEs will be used for: (i)works costing less than US$600,000 equivalent per contract; (ii]goods under contracts costing less tfian ~S~50,000equivalent eacfi; (iii)for consultants’ services contracts costing less than ~S~l00,000in the case of fm,and less than US~50~000or equivalent in case of individuals; (iv] training; and (v) incremental operating costs. The TDMOF is planning to adopt the reporbbased disbursement system, and decision will be made as soon as the capacity of the Prvlu to produce all the required FMRs are fully established.
- 58 - Special account: The Central Bank of Samoa will open a Special Account in US dollars for IAM-2, When withdrawals are not Report-based Disbursement the Special Account will have an "Authorized Allocation" ofUSD 1, 200,000 (10 percent offace value ofthe credit) however the "initial authorized allocation" will be USD 600,000 (5 percent offace value) until the aggregate amount ofwithdrawals from the credit account including the total mount ofall outstanding special commitments entered into by IDA pursuant to Section 5.02 ofthe general conditions shall be equal to or exceed the equivalent ofSDR 1,800,000 (20 percent of face value ofthe credit). When withdrawals are Report-based Disbursements, the deposit into the Special Account wil be equal to the lesser of: (a) the amount requested and (b) the amount which the association has determined based on the reports,
The current PMU staffing arrangement for fnancial management under IM-1will continue with the Project, with corresponding job descriptions. The Project accountant will supervise the financial accounting, prepare the F1MRs, assist in monitoring physical implemmation and veriwgFMRs. The accounts staff will process and verify papentrequests against procurement contacts, monitor financial comitments and unspent balances against contracts, and will maintain the project fnancial accounting using the upgraded software package and conduct key reconciliations with TD, Le., bank reconciliation.
Agreement was reached during appraisal on the formats for FMRs and upgrading ofthe acwunting software to be used, including the training of accounting staff. These will all be completed by project effectiveness. Agreement on the terms ofreference for audit was also finalized during negotiations.
Retroactive Financing
In order to finance implementation activities that have been ongoing but not fully financed under the fist Phase, retroactive €icingin an amount up to SDR ~5~,~00(10 percent ofthe Credit) will be provided. Payments made for consultant services and civil works under Component B, Road and Other Infrastructure and for consultant services under Component E Project Management, procured in accordance with the provisions above and expended after July 1,2003, shall be eligible for retroactive financing. This provision allows for a smooth transition ofimplementation between the two phases ofthe Progam.
- 59 - Annex 7: Project Processing Schedule SAMOA Second Infrastructure Asset Management Project
Project Schedule Planned Actual /Time taken to prepare the project (months) I 12 I 20 I I First Bank mission (iden~~~cat~on~ I 0310 112002 I ~31~412~~2 I 1 Appraisal mission departure I 051191'2003 I 0~130~2003 I Negotiations 06104120~3 1112712003 Planned Date of Wfectiveness 1013112003
Prepared by: William D.O. Paterson
Preparation assistance: Saraswathi Sundaram, Chris De Serio (Cost tables)
Bank staff who worked on the projec included: Name Speciality William D.O. Paterson Task Team Leader, Lead Highway Engineer Kavita Sethi Senior Transport Economist Josephine Masanque Senior Financial ~ys~inancialManagement Specialist Patricia Miranda Legal Counsel Hung Kim Phung Senior Finance Officer (ti11 August 3 1,2003) 3ehaad Nowroozi Senior Financial Management Specialist Bruce Harris Senior Social Scientist Richard Leonard Frocmement specialist Hilarion3meau Senior Finance Officer (from September 1,2003) Christopher R. Bennett Senior Transport Specialist
- 60 - Annex 8: Documents in the Project File* SAMOA: Second Infrastructure Asset Management Project
A. Froject Implementation Plan 1. Land Acquisition and Resettlement Framework Febm27,2003 2, Social Assessment and Consultation Framework Study, April 2003 3. Enviromentd Assessment Report, August 2003 4. Apia Road Network and Traffic Management Studies Report, July 2003 5. Road Sector Plan, March 2003 5. West Coast Road - Design and Inception Report, April 2003 7. West Coast Road - Safety Audit, May 2003 8, West Coast Road Feasibility ofAlternative Routes Report, September 2003 9. Assessment ofthe Land Registration and Titling in Samoa (with Addendum), June 2003 10. Borrower‘s Draft Project Implementation Plan, September 2003
1 1I Transport Sector Review (Report and Technical Appendicies), June 2003 13. Land Acquisition And Resettlement Action Plan for the Widening ofVaitele Street, November 29, 2003 14. Road Feasibility Study for Fagaloa Elay. Supplemental Report, September 2003.
0. 0ank Staff Assessments 1. Financial Management Assessment July 2003 2. Assessment ofAgency’s Capacity to Implement Project Procurement (December 2003)
C. Other
*Including electronic files Annex 9: Statement of Loans and Credits SAMOA: Second Infrastructure Asset Management Project ~6*~~g*2~~3 Difference between expected and actual Original Amount in US$ Millions disbursements' ProjedlD FY Purpose l3RD IDA Cancel. Undisb. On3 Frm Rev'd PO75739 2003 Samoa - TeBcommunications8 Post Reion 0.00 4.48 0.00 4.77 0.00 0.00 PoB492B 2001 WS-Health Sector Management Project 0.00 5.00 0.00 4.75 206 0.00 PO52293 I999 WSlnfrast, Mgnt (APL) 0,00 44.40 0.00 19 245 0,Q4
Total: 0.00 23.33 0.00 11,49 4.51 0.94
- 62 * SAMOA STATEMENT OF IFC's Held and Disbursed Portfolio June 30 - 2003 In Millions US Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic e"""mnn PIIF NBS 0.00 0.00 0.10 0.00 0.00 0.00 0.10 0.00 0 PIIF Wilex Cocoa 0.27 0.00 0.00 0.00 0.27 0.00 0.00 0.00 1995 PIIF MedCen Sam0 050 0.00 0.00 0.00 0.50 0.00 0.00 0.00 Total Portfolio: 0,77 0.00 0.10 0.00 0.77 0.00 0.10 0.00
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic 2002 PIIF SamoaVCF 0.00 0.00 0.40 0.00 Total Pending Commitment: 0.00 0.00 0.40 0.00
- 63 * Annex 10: Country at a Glance SAMOA: Second Infrastructure Asset Management Project East Lower- POVERTY and SOCIAL Asia B middle- Samoa Pacific income Development diamond' 2002 Population, mid-year (millions1 0.18 1,838 2,411 Lie expedancy GNl per capita (Atlas method, US'$) 7,420 950 7,390 GNl (Atlas method, US$ billrbns) 0.25 1,740 3,352 Average annual growth, 199ft.02 , T Population (%I 1.0 1.0 1.0 GNI Gross Labor force (74) 1.2 1.2 per primary Most recent eatlmate (latest year available, 1996-021 , "a nrollment Poverty (96 of~~ulati~below national pow& line) , Urban population (74 of total po~ula~io~) 23 3a 49 Life expectancy at birth (years) 69 69 69 Infant morIality (per f,OOO live births) la 33 30 Child malnutrition (% ofcbMren under 5) 15 11 Access to improved water source Access to an improved water sourca ('74 of populetion) 99 76 ai Illiteracy (99 of ~pulationage Is+) I 13 13 Gross primary enrollment (?A ofschool-age ~opula~jon) 103 1oa 171 -Samoa Male IO5 105 111 - - ~o~r-mjdd~~ncomegroup Female 101 106 110 KEY ECONOMlC RATIOS and LONG-TERM TRENDS 1982 1992 2001 2002 Economic ratios' GDP (US$ billions) 0.12 0.24 0.26 Gross domestic investmentlGDP Trade Exports of goods and sewviceslGDP Gross domestic savingslGDP Gmss national savingdGDP Current account baiance/GDP -44.5 Domestic Investment Interast paymenWGDP 1.1 0.5 0.5 savings Total debtlGDP 100.0 83.6 Total debt selvicelexports 10.4 5.5 Present value of debYGDP 58.1 Present value of debtlexports Indebtedness 2001 2002 200246 -Samoa 6.2 1.3 Lower-middle-income group GDP per capita 32 50 0.0 I
STRUCTURE of the ECONOMY 1982 I992 2001 2002 /Growth of investment and GDP (%I (% of GDP) Agriwlture /bo T Industry Manufacturing Services Private consumption General govemment consumption imwrts of goods and services
1982-92 1992-02 2001 2002 1 Orowth of exports and imports (x) (avemge annu~~g~~~ 1 Agriculture -0.1 -4.6 Industry 1.5 11,l Manufacturing -0.8 73.4 Services 7.3 73 Private consumption General govemment consumption Gross domestic investment lmports of goods and sewices 9,l
* The diamonds show four key indicators in the country (in bold) compared with ib rncomkQroup average, If data are missing, he diamondwill be incomplete,
-64- PRICES and GOVERNMENT FINANCE ma2 1992 2001 2002 Inflation I%) Domestic prices (96 change) ‘4 T Consumer prices 18.2 8.9 Implicit GDP deflator 3.3 2.5 Government finance (96 of GDP, includes current grants) Current revenue 51.8 Current budget balance 13.1 Overall surplusldeficit -18.2
TRADE 1982 1992 2001 2002 Export and imporl levels (US$ mill.) (US$ miilions) Total exports (fob) 6 n.a, Coconut oil 0 Manufactures Total imports @if) 90 Food Fuel and energy capital goods Export price index (199S=lOO) import price index (f005=100) Terms of trade (1995=1OO)
3AMNCE of PAYMENTS 1932 1992 2001 2002 Current account balance to GDP (#) (US$ miliions) Exports of goods and selvices 22 43 Imports of goods and services 58 133 l3 Resource balance -36 -97 Netinwme -2 4 Net current transfers 32 35 Current account balance -52 Financing items (net) 39 Changa?in net reserves -1 13 Memo: Reserves induding gold (US$ millions) Conversion rate (DEC, local/US$) 1.2 2.5 3.5 34
WERNAL DEET and RESOURCE FLOWS 19a2 1992 200i 2002 (US$ miiions) Composition of 2001 debt (US$ mill.) Total debt outstanding and disbursed 70 118 204 l8RD 0 0 0 IDA 9 32 48 Total debt service 4 5 7 IERD 0 0 0 IDA 0 0 1 Composition of net resource flows Official grants 12 22 20 Official creditors 6 9 0 Frivate creditors -1 0 0 Foreign direct investment 0 0 I Portfolio equity 0 0 0 D 31 World 3ank prcgrem Commitments 0 0 .0 A - tem E - Bilateral Disbunements 1 7 ‘3 3 - IDA D - Other multilateral F - Privata Principal repayments 0 0 1 c - 1MF G - Shorl-tam Net flows 1 7 2 Interest payments 0 0 0 Net transfers 1 7 2
Note: I nrs male was QMUW imm me ueveiopment tmnomics central aaraoase, tvzvuy
- 65 - Additional Annex 11 : land Acquisition and Resettlement Framework Summary SAMOA Second Infrastructure Asset Management Project
Introduction:
It is not anticipated that there will be significant land acquisition andor resettlement under the project, Nonetheless, given the fact that a number of activities under the project have not yet been fully defmed, it was considered prudent to design a LARF to cover the possibility that some land acquisition or resettlement might occur under the project and to ensure that any such activities are carried out in accordance with IDA policy and procedures. The framework establishes parameters for the conduci of land acquisition and resettlement ofDisplaced Persons @Ps),
Land Tenure in Samoa
Land in Samoa is ofthree types: customary (approximately 81 percent), freehold (12 percent), and public lands (7 percent), Customary land is protected by the Constitution for the “customs and usages” of the people of Samoa, Such land is usually held in the name ofthe ~ata~or head ofthe family who determines the distribution offamily land among members of the family. Most Samoans have access to customary land. Customary land can be alienated in only two ways-by lease to a person determined by the matai ofthe family, and through the Taking of Lands Act (19644) for a “public purpose”, Most customary land is not formally registered or surveyed, and the boundaries are known to the family from years ofuse and traditional knowledge. Where there are disputes concerning ownership or use ofcustomary Ian4 they are referred to the Lmds and Titles Court for adjudication. Freehold land is land registered under a Deeds registration system established prior to Independence in 1962, Freehold land is situated mainly in the Apia urban area and adjacent areas. The limited amount of freehold land has resulted in a robust real estate market in which land prices have increased rapidly over the past several decades. Residence on freehold land is not subject to the authority ofthe chiefs and orators of a village, even if located within village boundaries. Public (or Government) land is publicly held land which is administered by a Land Board established by the Lands Surveys and Environment Act (1989). The amount ofPublic Land has been pdually diminishing as Government has occasio~llyreleased several hundreds ofacres at a befor sale to the general public, such as when a village indicates it no longer has sufficient land for cultivation or to cater for a growing village population.
Legal and Institutional Framework
The Constitution of Samoa staies in Clause 14 that: No proper& shal~be taken possession of co~pu~sori~and no right over interest in any property shall be acquired compulsori~except under the law which of itself, or when read with any other law ~~~u~re~the payment within a reasonable time of adeq~atecompensat~on; Gives the person right of access to the ~~pre~eCourt regarding the a~o~ntof pensati at ion; Gives the right of appeal to the Court o~App~al.
- 66 - The focal piece of legislation concerning land acquisition is the Taking of Lands Act (1954) which states that “every person ha~ingan estate or interes~in any land taken under this Act for any purpose, or ~njur~ous~afected thereby or suferjng any dumag~~omthe exercise of any of the~o~ersgiven by this Act shall be ent~~ledto full andjust compen~ation..~orthe same~omthe ~j~~s~eras soon as reasonably ~ossiblea$er any person becomes en~tle~to com~ensa~on under this Act; the ~in~stershall ofer such sum as he t~in~~t~” If the owner does not accept the offer from Government, the Supreme Court is to determine the compensation payable and the decision may be appealed to the Court ofAppeal, Sub-section 37 ofthe Act further stipulates that ...the amobunt of compensa~ion[will be]. .. taken to be that a~obun~which the land, sold on the open ~ar~etby a willing seller on the specific date might realize.
The valuation offreehold land presents few problems, as an active mrket exists and many comparators are generally available, even though the Government of Samoa does not undertake regular valuations of freehold land, Valuation of customary land is rare and present difficulties since it cannot be sold or otherwise alienated other than by lease, and such land is not subject to rates or land tax payments, although “mket value” can generally be taken as the market value of comparable freehold land in the same area. hyland or other assets acquired under activities resulting from implementation ofUM-2 will be replaced at “replacement value” rather than market value, though market value will clearly be an important component ofthe calculus.
Traditional Methods of Negotiation and Grievance ~rocedures
There is a long tradition of negotiation and consensus building in traditional Samoan life. There is also a strong sense of Tautua or service to the country or one’s village and family. Frequently improvements are made which require contribution of land or other assets, and often this is done willingly and without compensation, as long as the process ofnegotiation is followed. However, sometimes negotiation and consensus lead to compensation, and when this occurs it is not unusual for payments to be made to certain individuals and also to the Alii and ~a~ule(councils of matrai) ofa village as part ofthe traditional gifts made by those who approach a village or community with a request to use a village’s lands or other resources.
Under the project clear guidelines will be established for the expression ofgrievances. Currently when there are grievances, the most frequent avenue for expressing them is direct approaches to Government, usually to the relevant Minister ofState directly responsible for the activity. It will be important under the project to establish a means by which DPs can express grievances in the fist instance to the PMU, which will then attempt to resolve them. As noted above, Samoan law provides for a fodappeal process to the Supreme Court, and Court of Appeals should individuals or families feel the need to use it, though this is infrequent. The first step is to make the proper initial contact, in which case negotiation and agreement by consensus will provide the best avenue to iron out and resolve any grievances.
Tn the event that land is contributed voluntarily (as Tabutuaj steps will be taken to ensure that such contributions are, indeed, voluntary, and that no undue pressure has been exercised to compel such contributions.
Given the nature oftraditional Samoan practices with regard to land and land issues, and the legal heworkestablished by Samoan law, the following approach will be used under the project to deal with land acquisition and resettlement issues.
- 67 - Direct and early approaches will be made to villages and individuals likely to be affected by activities under the project. Clear information should be provided concerning the rights and entitlements of DPs to ensure that all those who are due compensation are aware oftheir rights and entitlements. Negotiation and co~ensus-b~ldingcan be carried out on the basis ofthat information.
Information about grievance procedures will be supplied to all potential DPs. The fitavenue of grievance will be through the PMU, with the understanding that the provisions of Samoan law are available to those who desire to use them, Valuation ofland and other assets will be at replacement value. Entitlements will be determined in accordance with the Entitlement Framework. A fidl copy of the Entitlement Matrix is in the LARF document which is available in project fdes,
Entitlement Framework
Following is a summary ofthe main points ofthe Entitlement Framework
DPs losinp more than 20 percent ofheir productive, or in cases when the remaining assets are not economically viable, are entitled to:
a Full compensation at replacement cost ofthe entk asset or at dhect landasset replacement.
a Rehabilitation assistance that allows them to enhance or at least maintain their standard of living.
DPs losinp less than 20 vercent oftheir productive assets and where the remaining assets remain viable for continued use are entitled to cash compensation at replacement cost for the affected asset.
A~ic~l~ralland will be replaced by:
8 Land ofequal market value or bushess potential, whkh is acceptable to the PAP or Full compensation at replacement cost where land is not available.
Co~~ercjal~re~j~en~al or other real property will be replaced by:
Land ofequal market value or business potential which is acceptable to the PAP; or Full compensation at current market value, where suitable replacement land is not available or at the informed request ofthe PAP. Replacement ofdamaged or lost crops will be based on full market value for one year and will be paid in cash. DPs whose land is temporarily taken will be compensated at full replacement cost for their net loss ofincome andlor damaged assets, including a reasonable amount for the opportunity cosfls. Appropriate transfer and subsistence allowances will be given during the transition phase as part of the rehabilitation assistance package to allow DPs to enhance or at least maintain their standards of living.
- 68 - 8 Verification oftitles to land and any payments (e.g. tax or stamp duty on conveyance) shall be undertaken before land replacement or cash compensation is made.
For DPs losing ~es~dent~alland and ~tr~cture~
e The provision ofreplacement residential land (house site and garden) ofequivalent size, satisfactory to the PAP and cash compensation reflecting full replacement cost ofthe structures, without depreciation.
e If the PAF wishes and the portion ofthe land to be lost represents 20 percent or less ofthe total area ofthe residential land area; and the remaining is still a viable residential lot, cash compensation, at fdlreplacement (market value), will be provided to the PAP.
8 Ifafter acquisition, the residential land andor structure is huEcient to rebuild the residential structure lost, then at the request ofthe PAP the entire residential land and structure will be acquired at hll replacement cost, without depreciation. Tenants who have leased a house for residential purposes wiU be provided with a cash grant of thee months rental fee at the prevailing market rate in the area and will be assisted in identifying alternative accommodation.
For DPs Losing A~ir~lt~ralLands and orlother Crops
8 The general mechanism for compensation oflost agricultural land will be through provision of "land for land" arrangements ofequal productive capacity, satisfactory to the PAP. However, if the PAP so wishes and the portion of the land to be lost represents 20 percent or less ofthe total area ofthe landholding, and the remaining land is still a viable economic holding, cash compensation, at full replacement cost (market value), will be provided to the PAP.
8 Ifmore than 20 percent ofa person's agricultural land is acquired and the remaining holding is not viable, then the Project will acquire the entire landholding and provide compensation ofthe acquired land at direct land replacement value.
8 DPs will be compensated for the loss of standing crops and fruit or industrial trees at full (current) market price,
8 DPs whose land is temporarily taken by the works under the Project will be compensated for their loss of income, standing crops, and for the cost ofsoil restoration and damaged infrastructure, including a reasonable amount for opportunity cost's.
e DPs who will lose their income will be provided opportunities for alternative livelihood through skills and entrepreneurship training, job matching or business development assistance.
For DPs Losing a 3~sin~~s
8 The provision ofan alternative business site ofequal size and accessibility to customers, satisfactory to the PAP. Cash compensation for lost business structure reflecting full replacement cost ofthe structures, without depreciation.
e Cash compensation for the loss ofincome and opportunity during the transition period,
- 69 - Cost of money in case of delays of one year or more in releasing papent.
Other Cases
In cases where community infrastructure such as schools churches, health centers, water sources, roads or electrical and water supply connections are damaged, the Project will ensure that these are restored or repaired as the case may be, at no cost to the com~ty.
A public awareness campaign through local television and radio stations about the proposed project could be launched prior to the project implementation which would provide notice to the DFs of the land areas affected by the project and allowing all DFs the opporhmity to be involved in any negotiations for compensation.
- 70 - Additional Annex 12 Social Assessment Summary SAMOA Second Infrastructure Asset Management Project
1. INTRODUCTION:
A social assessment was canied out for the project with the following objectives:
8 Assess the extent the recm"&tions made in the SA for IAM-1 have been implemented and the success and failure ofthose arrangements in improving social outcomes.
0 Identify emerging issues downstream that would impact on the sustainability of the project.
8 Suggest changes or improvements in the arrangements used in iAM-1 to improve involvement of stakeholders (especially intended beneficiaries) and to improve the extent to which potentially excluded groups are included in decision making and project benefits.
0 Assess the outcomes and experience ofthe reorganization exercise in the MOW, both for application to that dstryand to other ministries to be reorganized in the future.
8 Conduct baseline social assessment, stakeholder analysis and SIA, including design ofa comm~qconsultation framework, covering the new ~as~acti~tiesproposed for IAM-2.
2. LESSONS PROM IAM-1 Lessons from the Social Assessment for IAM-1 The examhation of the SA for IAM-1 highlighted the need for: ~~~~o~~~datu, particularly with regard to gender and the vulnerable. Data should be disaggregated by sex, age, and socio-economic variables to show consultation has taken place. ~~~t~~~u~~lj~.Measures are needed to ensure s~taine~meanin~l comm~ty participation. This could include expansion ofthe DLSE program of training community participation practitioners who understand and are cormnitted to community participatory strategies, as well as refining systems for government-village consultation and inter-village consultation.
Co~~~~j~Access to ~~f~r~u~~o~and Datu. W-1activities focused on national- and global-level information dissemination strategies. IAM-2 should focus on local-level systems for education and information exchange, such as village resource rooms (at school and korniti house) to house project materials and ensure communi9 access to information.
Fa~#~er~~~s.IAM-1 organizational system have developed good partnerships. Ministries and departments have developed the habit of working together through the meetings ofthe Steering Committee and through PMU activities. These strong national-level relationships should be more hlly integrated with the local-level to support integrated local-level planning.
~yal~u#~~~.IAM-1 monitoring ofsocial issues was weak. Evaluation should be an on-going and progressive activity through the project cycle, including strategies to enmcommunity groups participate in evaluating the goals they have helped set.
~~l~j-~ec~~rulCo~~~~j~Social ~~~e~~~e~#~.SLAs are often combined with Ems, but care is required to ensure that the social, economic and political implications ofproject activities are well documented and taken into account in project decisions.
-71 - Lessons of the Redundancy Exercise in MOW Lessons learnt fiom the restructuring of the MOW include:
e Strategies to ensure a smooth transition, and that the Ministry retains the core expertise they need to hlfill their core hctions, should be in place prior to the restructuring. These include decisions on salaries, benefits, and other incentives relating to career pathways.
e Information and discussions on how decisions about the core strengths needed and functions to be divested are made should be more transparent and open to public debate.
e The private business option ogered by the MOW to its employees is generous, but giving former employees who form a business preference in contracting poses ethical and perhaps legal problems. This needs to be considered carefully.
e Need to reduce the length ofthe negotiating process leading up to the redundancy packages.
e The Small Business Training courses are critical, as shown by the number opting to start small businesses, This should be deepened and expanded.
e The possibility ofsome form ofsupport system for those taking the redundancy package, for a one year period. This would include assistance in getting a job. Also, the importance ofmonitoring the progress of this group with a view to improving subsequent schemes.
e The stipulation that those taking the redundancy package cannot work for the government for 3 years needs reconsideration, particularly for those on very low rates of redundancy.
3. LAM-2 SOCIAL ASSESSMENT Both a General Social Assessment (GSA] and a Detailed Social Assessment @SA) were carried out for fAM-2. The Mow road upgrading components for IAM-2 were used as case study material for both the GSA and DSA. Materials from the IAM-1 Social Framework were the basis for the GSA Framework. For the DSA one of the proposed three rural isolated roads for upgrading in IAM-2--the Saunia~anunu Road extension-was the pilot conm~ty.
General Social Assessment and Consultation Framework LAM-2 The General Social Assessment (GSA] consists of identification and analysis ofkey stakeholders and their interests, a project consultation fi-amework, participation measures, a monitoring and evaluation framework, and a project heworkfor public relations and information.
~ta~~~ld~~~d~n~~cat~~nand analysis The GSA identified 44 key stakeholders and presents a stakeholder matrix with key interests ofeach group identified. In summary, the key beneficiaries for each project component are: The primary beneficiaries ofthe airport improvements are the passengers, greeters, local and foreign airlines, air cargo shippers and concessionaries.
e The primary beneficiaries ofthe bridge and West Coast and isolated roads, the pedestrian facilities, and the road safety program include the traveling public, agricultural and industrial producers, consumers, and local communities where the infrastructure investments and safety programs are implemented.
- 72 - 4 The beneficiaries ofthe coastal zone inhstructwe strategy and the disaster management strategies are primarily the communities where these projects are carried out and the national govemment, which hopes to protect its roads and other assets in those commities. It is too early to tell who will be the primary beneficiaries ofthe institutional strengthening or restructuring ofthe Department ofLands, Survey and Environment (DLSE).
Social ~~~~c~~OJW-2
The social impacts ofIAM-2 roading upgrades are expected to be strongly positive, including: increased safety and convenience ofpublic bridges and roads, more efficient and cost effective delivery of govemment services. improved natural resource use and disaster management. enhanced cooperation between govemment and communities. More widespread participation by gender and other vulnerable groups in consultations. Access to project information and data on project activities through resource rooms and specially packaged project data (maps, pamphlets, booklets and charts). Youthjobs and job training skills through participation in project and training in maintaining infrastructure. School children have access to information and data about their village through repacking of project materials
Some potential negative social impacts include:
There will be some local and small-scale acquisition ofland for bridge and associated road improvements, and these are to be compensated appropriately under Samoan law. Women's activities in informal tradeiexchange ofgoods may be affected as better roads encourage people to shop in Apia and there is reduced room for kerbside shops. The resulting loss ofincome will affect sole-income families and women-headed households especially. Land taken for roading may increase pressure on land, which in turn will affect women and girls and youth access to land for production for home use, sale and exchange. Road widening and new road construction can be expected to generate more traffic accidents, including more accidents involving pedestrians. There is the risk of inadequate consultation, especially between those who would implement the procedures and those who are the intended targets ofthe procedures.
These risks can be "ized by fully invdving all stakeholders at the start of the project, mid-way in implementation and again at the end ofthe project, to determine such things as:
8 Perceptions of the eEectiveness ofthe project, and how these are playing out over the, including whether the benefits of the development are being widely spread.
- 73 - Any unintended effects ofthe project and strategies to addresslcapitalize on these. Education, training and other support services which are needed at different stages.
Project ~ram~orkfor Comm~n~~ Con~~ltu~ion and partic~ation
A Community Consultation Framework lists tasks which need to be done during initial consultations, ongoing consultations, and consultations on completion. A matrix is presented listing which agencies should be involved in each ofthese steps and in decisionmaking at each step, including implementing agency, steering committee, government or NGO groups, and community institutions, and stakeholders.
Methods to be used to ensure ongoing participation include suweys (e.g., time use and case study), workshops about the proposed project at national and local-level, focus group discussions with relevant stakeholders, local community discussions at both central-level and at local-level to discuss local concerns and priorities and particular project design features relating to specific project sites, consultations with and between national-level NGOs and local NGOs with an interest in specific aspects of the project, and informal interviews and participatory observation
A mechanism which has proven useful in other projects in Samoa is the Village Management Team (VMT). A VMT should be established at village level with no more than ten members, composition to include representatives from women’s groups (2); youth (2). Duties ofthe VIdT would include: Being the liaison point for project team with villagehillage groups and stakeholders, including information on evaluation and monitoring. Responsibility for information dissemination for the project, Be the local troubleshooter for the project, predicting needs and alerting to unintended outcomes. Making decisions on the project, through consultation with village groups concerned. Responsibility for managing the maintenance and operation of the asset in good condition.
Reporting to the Village Fono on project progress.
~o~jto~ngand ~ul~~tion of ~c~i~e~ent ofproject objectives.
Key groups in ongoing monitoring and evaluation include:
The Steering Co~~jtte~.The major official stakeholders are represented on the Steering Committee. It is responsible for seeing that an agreed process for in€orming the public and for consulting with the other major stakeholders is carried out. The PMU through the Steering Committee is responsible for coordinating and keeping track ofthe on-going monitoring and evaluation ofsocial assessment factors.
YMT will oversee and guide the levels ofparticipation, liaise with the Project team, whose role it will be to provide training in monitoring and evaluation, Together, these groups will firm up procedures for evaluation including the review ofthe potential use ofparticipatory impact assessment (PIA).
- 74 - Project ~ra~~or~~or~~~1~~ ~ela~ions and ~nfor~u~~~~ Official idormation will be available to the public fiom the following sources:
e World Bank offices and document libraries in Washington, DC, and on World Bank's world wide web site, National offices, document libraries, and web sites of bilateral donors (as AusAID and NZODA). Offices in Apia ofthe High Commissioners ofbilateral donor countries,
e Project Management Unit office in Apia.
e Office of the Ministry ofForeign Affairs, Government of Samoa, Apia,
Policies and Procedures to Redress ~t~~~~ld~rGrievances
In most cases, stakeholder grievances concerning Program or Project-level issues should be presented in writing to the head of the PW,who will be responsible for investigating the matter and resolving it if possible, The head of the FMU must report all such grievances and their resolution promptly and in writing to the Project Steering Committee, which will satisfy itself that the matter is handed appropriately Committee for investigation and resolution.
Stakeholder grievances concerning component-level issues should be presented to the office ofthe Secretary or Director ofthe government department heading that component. That Secretary or Director must report all such grievances and their resolution in writing to the PW, which will satisfy itself that the matter is handed appropriately,
Allegations of conuption in the project, whether arising in Samoa or ovaseas, should be directed to the Office of the Attorney General in Samoa or in the counby where the alleged corruption has ocwe4 as well as to the Project Team Leader at the World Bank.
Detailed Social Assessment @SA) and Framework for Participatory Consultation
The proposed Sauniatu RoadiManunu extension was the case study used for the Detailed Social Assessment. The s!xategy employed was what could be called a "second swath" strategy of: (i)consulting women through the women's committees (village and church); (ii]talking mainly but not only with women in their workplacehome setting; and (iii]combining techniques of survey, participatory observation and iniiomal interviews. This approach was taken because a multi-criterion feasibility study for this road upgrading had been carried out in December 2002. Of the 15 interviews carried out (groups and individuals) all the males had been notified and participated, but none of the females had been notified and only one of the females hew the consultation had taken place. This "alternative swaW of interviews collected the views ofa group not consulted.
A baseline profile was developed using demographic data, Education data, Agricultural Census, Ministry of Women's Affairs interviews, Mormon Relief Women's Committee, CIMs data and the &ai3 report for Sauniatu Road from the Feasibility Study (MOW). The Basic Social Profile provides information on which groups of stakeholders should be consulted, including likely vulnerable groups. A draft question schedule was prepared with questions on household composition, income sources, role of women, access to
- 75 - resources and production systems and marketing activities, local tenure arrangements and use of comunity and natural resources ,
The DSA presents a stakeholder matrix which lists the key stakeholders with their interests in relation to the road upgrading component and the likely impact of the component on these interests. Listed also is stakeholder capacity and interest in participating in the proposed project by decision-making, planning, implementation, supervision and evaluation, and meas~e~avenue~for consultation which could support this participation.
Generally speaking, as a result of the poor standard of the ~aunia~anunuroad, inland communities particularly, are extremely vulnerable in the following ways: Economic isolation (agricultural sales, jobs in Apia) hence vulnerable to cash poverty, impacts on food semrityfquality of life, and on community assets such as school equipment, Social isolation from coastal village activitiesfchwch fellowship. Constraints in access to health care, medicines, and education,
Political isolation, though males and matai more likely to be hfiormed ofmeetings, etc. Information and comunication isolation (only one telephone along the whole road, no access to television).
The overwhelming number ofviews about the proposed road upgrading were strongly positive. h upgraded road would improve quality of life through increasing agriculture and employment options for families (especially the youth), opening up social and recreational options, and improve access to schooling (for teachers and pupils), health care and the new sports field, The opening of inland areas would encourage families to build homes and reside there (rather than the present plantation shelters) so reducing over-crowding in Saoluafata as well as making use ofthe land.
Compensation for land taken was not an issue with the group living along the roadsides, the attitude being, "we will gladly give the land to get a good ma&', nor was maintenance an issue. Village Road Committees already exist, and their role could be expanded easily.
Some negative impacts warranting hther attention include:
e Sometimes after the euphoria ofgetting the asset, people may rethink the idea ofcompensation, Land compensation issues should be well negotiated before work begins. One respondent said the land she, her husband, and family worked was her brothers' land and they might lose some of it ifaccess improved and his children decided to farm
e Safety was not seen to be an issue-the Pulenuu said they would deal with this aspect, and the teachers said they already taught road safety rules.
e Informal trading and exchanges may reduce, as a result ofpeople taking goods directly to Saoluafata or Apia markets, This will aRect women in particular.
- 76 - Additional Annex 9 3 Environmental Assessment Summary SAMOA Second Infrastructure Asset Management Project
Introduction 1. An Environmental Assessment (EA) was conducted for IAM-2. The initial report was endorsed and publicly disclosed on February 26, 2003 and the final report of September 2003 was endorsed and disclosed on November 12,2003 The purpose ofthe Study was to:
e Identify the environmental issues associated with the project; Indicate any adverse environmental impacts ofproposed activities; e Assess the efficacy ofthe existing environment management hmework, and subproject specific environmental assessment procedures; e Suggest measures to strengthen and lor enhance existing consultative, legal, and regulatory procedures to meet the requirements ofTAM-2; e Determine the need for Merin-depth reviews and environmental mitigation plans under the project; and e Assist the Department ofLands, Survey, and Environment MNXE to fdkeand disseminate the EA for LAM-2.
Environmental Procedures Under IAM-1
2. An examination ofthe environmental procedures under W-1revealed several areas which required some refinement, e,g.:
(a) the EA procedures that were established under the IAM-1project appear to have been implemented successfully and with some refinerrent and adjustment will provide the basis for sound mvironmental management under the new project;
(b) there is a need to formally enact the drafi Regulations over the course ofthe L!,.M-2 project so that the improvements in EA procedures and standards brought about under the project will be sustainable after project completion;
(e> there is a need to consider the present compliance monitoring regime particularly in relation to the me ofthe GIS developed under IAM-1 and the design of an improved feedback management system to assist in the incorporation of design and site mitigations into €ha1 design and operation of road and coastal infrastructure sub-projects; (d) the completion and implementation of the interim Codes of En~mentalPractice (COEPs) and additional training to institutionalize the system should be an objective of W-2; and
(e) there may be a need for MOW to cany out further institutional strengthening on he implementation of the guidelines that have arisen from the Coastal Infrastructure Management Strategy (CIMS).
Procedures to be Applied Under W-2 3. It is proposed under M-2that the set ofInterim COEPs developed for DIM-1 be applied for routine smaller projects with minim1environmental impacts. The COEP was adopted by the then Public
- 77 - Works Department and Department ofLands, Survey and Environment through a Memorandm of Agreement dated January 3 1,2002, and are specified in contract documents as the required operating procedures for environmental practices in all civil works undertaken the MOW,
4. When the scope of the project cannot be handled by implementation of a COEF a sub-project with some adverse environmental impacts (is., a Categov 3 project) should be the subject of an Environmental Management flan (EMF) which can stand on its own or be an integral part of the Project Implementation Plan (BPIF). The EMP will not be conked to just on-site effects, but should also include the effect of off-site activities, for example trucking routes, sediment outwash, traEc diversion and spoil dumps. The exact nature of the mitigation measures will depend on the location of the site relative to potentially sensitive settings {e.g., coastal fiinges, f&g corridors and village comunities). Tfie EMP should be initially developed by the proponent and then ratified by the Plegand Uhan Management Agency (PUMA). It would then need to be agreed to by the Project Manager and the site contractor(s).
5. Key areas in which this is likely to be necessary under LAM-2 are outlined below.
Project Component and Sub- Key Environmental Issues &vimnmental Category Components Of Project Sub-Component Road Sector Works New Road ConStructi~n@AM-2) Broad range of potentially 3 These include the Apia By-Pass , the West sensitive issues such as Coast Road which are subject to FS and will ecological, social, hydrological, require at least an EMP under World Bank visual 62 agricultural Procedures. RdUpgrading or Minor Widening (LQFVI- propaty hntage acquisitions
Road Rehabilitation and Periodic Operatingprocedures Inkrim B h.laintenance @AM-2) COEP's have been working and will be fmdised under the I I project. Bridge Replacements (KV-2) I Rivedstream values and road I B
Coastal hbstmeture IAM-2 (see Note 1) Recreational, visual, access and B (mjority of works) lagoon ecological values C (very minor works)
Note 1: Projects that have a classificationof3 in termoftfie World Bank Operational Policy 4.01 may still require an EMunder the draft EL4 Regulations, This is likely to be the case for most seawall and coastaf defence systems,
6, The draft EL4 Regulations require proponents to consult with and keep informed any local communities affected by the sub-projects. The && EL4 Regulations emphasize early communication between the proponent and MNRE to ensure that procedures are streamlined, The Regulations also require MNRE to prepare and publish guidelines on EMprocedures to proponents.
* 73 - Because the draft EM Regulations have not yet been enacted by Cabinet, a number of features in the Regulations cannot realistically be adopted (e.g. Ministerial approvals, functions of the Environment Board, and application of penalties), For the purposes of the L4M Project, suitable alternative delegations for these aspects have been adopted that keep the actions within the M".The new environmental laws the Flanning and Urban Management Bill does not contemplate the adoption of any regulations to support the new law so the previous interim Regulations would conhue to apply.
7, Two areas ofmonitoring will need to better implemented under IAM-2 in support of environmental management as follows: (a) Monitoring ofsub-projects to ensure that the scope ofworks does not differ from the scope that was approved under the draft EMRegulations, and to ensure compliance wih any COEP provisions or conditions ofEM approval. In some instances appropriate baseline environmental information may need to be gathered and submitted with the EL%. Such preparatory monitoring should be identified in the implementation plan for the sub-project. This will pennit the evaluation of impacts over time compared with baseline data. At present here are no specific provisions in the Inkrim Regulations. Although not literally provided in the EL4 Guidelines, the expectation is that monitoring of impacts should be undertaken, The proponent is also required to carry out monitoring ofimpacts through data collection and the provision of it to PMfor its evaluations . According to PUMA, such provisions need to be inserted into the guidelines. (b) Critical areas such as the coastal hazard zone should be monitored to identify the long-term trends ofnatural processes and so quantify changes in the baseline conditions, As the inventory ofcoastal. hazard zones has been completed monitoring should be facilitated due to the presence of detailed baseline hi"mation in mapped output with indicators ofsensitivity.
- 79 - Examples ofmonitoring regimes that need to be better implemented are presented in the following table:
To be Carried Activity out By: MNRE,PUMA Compliance Observation to ensure that proponents are meeting Monitoring conditions required under the COEP, EMP, PEAR or EIA. As there is now a computerised information system on line , a more detailed quantitative monitoring system should be a condition of loan effectiveness. The role of MNRE should be evaluation of compliance monitoring carried out by proponent Departments, A management system for compliance monitoring should be designed and implemented by the time of loan effectiveness. MOW Compliance Some discussion has indicated that MOW has not Monitoring implemented a compliance monitoring system as this should be the responsibility of the proponent with an operational budget, Evaluation of monitoring should be carried out by PUMA. Proposal for Project Environmental Officer included under COEP's discussion. MNRE Aerial Photography MNRE will use this for CRZ assessment and monitoring long-term changes to the coastline. MOW will use this for engineering design. MOW/M~RE/ Oblique Photographes Used by MOWISAA for monitoring asset condition. SAA Used by MNRE for evaluating trends and environmental effects over time. M 0 W i'MNRE Beach Surveys Monitoring of beach profile changes. MOW would use this as part of asset condition monitoring. MNRE would use this for evaluating long-term trends as part of a CHZ assessment. MOWiSAA Condition Surveys of Development of maintenance programmes for coastal coastal protection assets and defence systems, systems. MNRE Routine water quality Evaluation of water-quality in the lagoons and scientific & ecosystem surveys of ecosystems. This is seen as a long-term monitoring routine activity to be carried out by MNRE (and MAFFM) independently of the IAMP.
Conclusions from Phase 2 EA Preparation
8, The key lessons and conclusions from the Phase 2 EA are as follows:
e The EA procedures that were established under the M-1project appear to have been implemented successfidly with only several instances found where the agreed system appears to have not satisfied all requirements.
8 There do not appear to be sub-projects under the various components that would be rated as Category A projects under the World Bank OF 4.01. Wsdoes not preclude the possibility of a full EM being required by PUMA under the interim Samoan EL4 regulations. The most likely sub-project which will require more detailed investigation is the Apia Road Network component which has potential for impacts on wetlands and also displacement of residents on some route options.
a Even though there is Myno investment in the airports sector under M-2,the minor airports study prepared under MM-1 drew attention to the on-going noise and safety issues at Fagalii Airport which have yet to be resolved by GOS, It should be emphasized that the Sinclair Knight Merz reported unacceptable noise and safety hazards for a significant number of neighboring houses ofthis airport and suggested a number of options to mitigate the problem but to date, the GOS have made no proposals.
- 80 - a A new agency known as the FUMA began operation in July, 2002 with interim provisions in place until the enactment ofthe new integrated planning and environmental legislation. All recent projects under IAXII-1 and those to be funded under IAM-2 have consulted closely with PurvzA in the preparation ofPEAR documents and comparative environmental and social evaluations for several feasibility studies. There is a need to formally enact the draft EMRegulations over the course ofthe IAM-2 project so that the improvements in EA procedures and standards brought about under the project will be sustainable after project completion. There is no present schedule for enactment of the implementing regulations including environmental procedures which will follow enactment ofthe enabling Bill on Planning and Urban Management. It is proposed that the same procedures carried out under IAM-1 be carried out until the second year of implementation using the previous draft regulations, The aim would be to ensure that the regulations mder the new legislation would then be enacted There is a need to consider the present compliance monitoring regirne particularly in relation to the use ofthe GIS developed under IAM-1and the design ofan improved feedback management system to assist in the incorporation ofdesign and site mitigations into final design and operation of road and coastal itlfrastructure subprojects. Technical assistance in the form of a locally recruited environmental officer to support the func.tions ofthe present rylwTi component manager is recommended. Tiis position would be responsible for all liaison on environmental and sodissues arising from the project between MWTI and PUMA and should run at least until such heas the officer within the Asset Management Branch returns ftom overseas. If such a position is made available, the environmental and social aspects, particularly those associated with monitoring, compliance, auditing, and enforcement will continue to be low priority tasks. The completion and implementation ofall interim COEPs and additional training to institutionalize the system should be an objective ofIAM-2 and should be integrated with the responsibilities ofthe environmental officer. A full description of all of the tasks ofthe proposed position is set out in the full EA text.
a There is also a need for I'd",in close consultation with MWTI, to cany out additional technical assistance to refine the CIMS process taking account ofthe needs ofGOS implementation Ministries and the community expectations which have been raised by the planning process to date. The CIMS process needs to pay particular attention to a mechanism to prioritize proposals both witbin and between Districts for projects which are clearly the responsibility ofthe GOS rather than individual villages.
9, Another important issue coming up will be the need to place the CIMS in the overall planning framework of the new Planning and Urban Management 3iU which contemplates Sustainable Minagement Plans as the overall formal land-use planning mechanism which would provide the policy and development standards for implementation of a new development approval process. The use of land use planning and development standards is considered to be a more sustainable strategy to address the issues of illegal coastal reclamation, wetland preservation and sand mining which were highlighted in many of the CXMS documents.
-81 - Additional Annex 14: Road Sector Overview and Assessment SAMOA: Second Infrastructure Asset Management Project
A. Road Infrastructure and Operation Road System 1 The two main islands of Samoa, Upoh and Savai'i, have a combined area of 2,860 km2 and a population of approximately 180,000. The capital and commercial center Apia accounts for 22 percent of the population, with north west Upolu a further 30 percent. Savai'i has only 24 percent ofthe population. 2, The road system in Samoa comprises 857 km of principal roads (78.5 percent paved) Table 1. There is also an estimated 680 km of village and 800 km of plantation tracks. The principal roads are maintained by the Ministry of Works, Transport and Infrastructure (MWTI) while the plantation and village roads are maintained locally. Figure 1 comparing the Samoa principal road network with countries of a similar size and level of development shows that although the network density is high in relation to the population, it is also affordable given the size ofthe economy.
Table 1: National Road Network
Figure 1: Samoa Road Network Compared to Similar Countries
- 82 - 3. Table 1 shows a significant increase in the number ofpaved roads in Samoa in the last 13 years. This is due in part to large scale reconstruction after Cyclones Ofa and Val (1990 and 19911, especially on Savai’i, but also reflecting government policy of providing all weather roads to ensure village access. However, 21 percent of the principal road network is still unpaved including 25 percent ofurban roads on Upolu (Table 2).
4, In recent years Samoa has undergone rapid motorization. As shown in Table 3, in the period 1987-2000 the vehicle fleet grew by 7.3 percent pa. Using historical traffic count data in conjunction with traffic counts fiom comprehensive surveys undertaken in 200 1, traEc growth rates of 5.6 percent pa. for Savai’i and 7.3 percent pa. for Upolu were calculated. The growth rates were higher in urban areas, with growth of over 10 percent pa. Apia. For both islands traffc growth was substantially higher than the national GDP growth rate of 3.3 percent p.a. over the same period.
Table 3: NUIXI~~Kof Registered Vehicles
Keear Number of Registmxd Vehicles by Vehicle Type Yo Private Taxis Pickup HmPy Buses Othedll Total Increase Cars Trucks since 1987 1987 1,473 3 63 1,925 391 212 188 4,552 1988 1,531 41 1 1,936 346 196 222 4,642 20 1990 1,898 616 2,45 1 349 248 243 5,805 84 1991 1,950 715 2,775 436 227 209 6,3 12 85 1992 2,240 1,099 2,610 377 381 41 9 7,126 94 1993 1,269 936 1,936 47 2 334 158 5,105 19 1994 2,134 1,057 2,701 510 209 869 7,480 74 1995 2,380 1,013 2,784 579 243 947 7,946 72 1996 2,813 718 2,639 426 239 539 7,374 55 1997 2;lSS 628 2,597 404 355 497 7,037 45 199m 2,100 804 2,080 26 1 159 409 5,813 22
- 83 - 5. T”ae road network is fi”ental1y different on the two islands, both in terms oftraffic and condition, The Miclevels on Savai’i are light, with most flows below 500 vehiday, except in the vicinity
of Sdelologa where flows of up to 2,300 vehlday were observed in 200 1~ Upolu has much higher tragc flows along the north coast and in Apia where flows of20,000 veldday have been observed, In other parts of Upolu the flows are much lower and ofthe same magnitude as Savai’i. On the basis of2001 traEc surveys, the total annual vehicle travel was 217.3 million veh-km, of which 84 percent was in Upolu.
5. Public transport plays an essential role in Samoa, In Apia bus transport and taxis account for roughly 26 percent and 19 percent ofdaily person travel, For “I areas bus transport and taxis account for roughly 38 percent and 13 percent ofdaily travel. The reliance on public transport results in relatively high pedestrian flows and the failure to adequately provide for these flows is reflected in the traffic accident rates, The majority of crashes and accidents occur between Apia and the airport with a high proportion of these involving pedestrians. Accident rates on this road were estimated to be 48 per 100 million veh-h compared to an expected level of 15 for the same road with proper design features and pedestrian facilities. There is a high incidence of child pedestrian casualties, although this has decreased in recent years following the road traffic safety programs introduced under the first phase.
Road Infrastructure Assets Condition
7, Most paved roads have a surface dressed pavement; unpaved roads are gravel. The road network comprises predominantly one lane and narrow two-lane roads, Table 4 shows that 86 percent of the road network has a width of 5.0 m or less. Using the functional adequacy approach ofthe 2002 Road Sector Plan, 10.5 percent of urban roads have inadequate road width (Le., capacity) or pedestrian facilities for their traffic flows. Capacity is generally adequate for mral roads, however geometric standards are low except where there has been post-cyclone reconst”. In urban areas significant delays are also observed at critical intersections due to inadequate intersection capacity and inappropriate traffic control devices.
Table 4: Principal Road Network Widths
r: 100 I97 65 7 0 269 100 - 300 48 114 0 0 153 301 - 1,oao 50 178 29 1 258 1,001 - 3,000 2 54 60 3 119 3,001 - 10,000 0 27 7 0 34 > 10,000 0 0 13 2 IS Total 297 439 115 6 858
Sowce Mission Analysis ofSM data
8. The inadequate road capacity and intersection controls coupled with the growth in traffic are causing congestion problems in Apia, particularly in the western approaches leading to the industrial area near Vaitele. There is an inadequate road hierarchy to support existing land use patterns and the forecast future developments. Current growth to the south-west ofApia is forecast by the Planning and Urban Management Agency IpTJMA) to continue as this is the primary growth area for the city. The demands on
- 84 - the road infrastructure in this area, and competition between pedestrians and motorized trafiic, will therefore rapidly increase over time. Examples ofthese problems are already present on the West Coast Road (WCR) which is the main arterial connecting the airport at Fale'olo and the secondaq port at Mulifanua to Apia. The WCR passes through many villages but there are few provisions for pedestrian traRk (e.g., sidewalks, bus bays, etc.). This contributes to a large number ofpedestrian related accidents.
9. Figures 2 and 3 present the results ofroughness and condition surveys from 2001. This shows that the condition ofthe sealed and unsealed road network in Savai'i is substantially better than in Upolu. The consistently high annual road budget allocations and low traffic flows on Savai'i mean that much ofthe road network, which was reconstructed after Cyclones Ofa and Val (1992 and 19941, is still in excellent condition, The mean roughnesses for Savai'i were 4.80 ". IRI paved, 8.30 "I IfiI unpaved compared on Upolu to 6.6 "i IRI paved and 16.4 "i IRI unpaved. Those roads on Upolu reconsmcted after the cyclones are largely still in good condition but overall the condition ofthe road network in Upolu is inferior to Savai'i.
Figure 2: Roughness Distribution (dkm IRI) 10. One lane bridges constitute 37 percent ofthe bridges in Samoa (Table 5). It will be noted that there are no bridges with more than 2 lanes, For the 2002 Road Sector Plan, the bridges were assessed based on three criteria: (i>the bridge condition using a visual condition survey; (ii>the structural adequacy for traffic loading; and (iii)the functional adequacy given the traffic volume. As shown in Table 5,21 percent are in need ofreplacement. Six bridges require widening to handle the traffic levels, as do two fords and one culvert. There is a serious problem with ford maintenance, with 39 percent requiring maintenance or complete repair. Only two of28 culverts required maintenance or widening.
fund in^ and Exwnditures
11. Xn recent years, the domesticaUy fimded budget has been in the region ofWST 15 m, ofwhich some 35 percent was classified as overheads. This included loan financing of some WST 5 m per year under LAM-I. Table 6 shows that typically 90 percent ofthe expenditure is on roads. From 1998-2000 the expenditure was fairly evenly distributed between routine, periodic, rehabilitation and capital works. However, since 2000 routine maintenance has accounted for 50 percent ofthe budget.
Table 5: Drainage Structure Condition
Attribute f Condition Zlane 1-lane Tatal Bridges Number 33 19 52 Deficient Structurally -Replace 5 5 Deficient Functionally -Replace and widen 5 1 6 Deficient - Repair 1 1 2 For& Number 24 20 44 Deficient Structurally -Replace 2 2 4 Deficient Functionally - Replace with bridge or widen 1 1 2 Deficient - Repair 2 9 11 CUlverts Number 25 5 30 Deficient Functionally - Widen 1 0 1 DeGcient - Repair 1 0 1
Source: 2002 Road Sector Ph
12. The 2d03 Transport Sector Review Study indicates that there is a need to substantially increase the rate ofinvestment in road maintenance. The long-term average annual budget for rehabilitations, periodic and routine maintenance should be WST 18.4 mi'year, in addition to the administrative and other costs (Table 3.81, Excluding a return on equity the total annual cost of road transport is WST 25.1 dyear; WST 38.4 &year including return on equity and exernalities.
- 86 - Table 5: Annual Expenditure on Roads and Seawalls
Audited Annual Expenditure by Fiscal Year Expenditure Category (WST ‘000) 1998199 199912000 20001200l 200112002 Road Management Routine maintenance Upolu 2,825 1,974 5,209 4,110 Routine maintenance Savaii 1,356 1,765 2,332 2,097 Periodic maintenance Upolu 1,660 2,135 1,983 2,171 Periodic maintenance Savaii 1,422 186 249 102 Rehabilitation Upolu 3,452 2,424 1,710 2,781 Rehabilitation Savaii 0 837 364 293 Capita1 Works Upolu 1,446 2,540 1,740 716 Capital Works Savaii 2,134 1,016 85 1 614 Total - Road Management 14,295 12,877 14,437 12,883 Seawalls Maintenance Upolu 265 237 511 1,130 Maintenance Savaii 117 650 3 84 352 Capital Works Upolu 699 580 769 973 Capital Works Savaii 404 85 0 0 Total - Seawalls 1,485 1,552 1,564 2,455 Total Expenditure 15,780 14,429 16,101 15,338
Source: MWTI (2003)
B. Road Program Evaluation
Phase I- Preserving the Asset
13. Figure 4 shows the key elements ofthe L9M Program. Phase Iof the IAM Program developed tools for asset management. The former Public Works Department (PWD) lacked a formal planning process or tools for identifylng investment priorities in the network. The organization was also built around a force account system so the identification and delivery of maintenance and improvements was not always done efficiently.
14. The fitIAM developed the Samoa Asset Management System (SAMs) to provide the tools for the planning, prog;ra”ing and budgeting ofroad asset management. Supported by a comprehensive data collection survey, SAMs stores data on roads, bridges and seawalls which can be used by a prioritization module to identlfy candidate investment projects. It is currently used as input to prepare the annual MWTI prom.
15. The SAMs system was used as input to the 2002 Road Sector Plan which had the objective of identifying the network investments required to meet the vision of“a 8~8~a~~~~~eroad ~etwor~~roy~d~~~ ~o~~ec~o~to all town8 and yil~age~, al~o~ing sa& and e~~~enttravel between them.” The Road Sector Plan identified the preservation and investment needs for the network, as described below, Weeprojects were undertaken on investment areas identified in the Road Sector Plan: Apia Road Network Tfic Management Study; West Coast Road Improvement Study; and Remote Roads Feasibility Studies.
* 87 - -...... r“‘ . I Data Collection Surveys (2001) I1 Previous Data 1 I i j Inventory Condition Traffic 1 Bridges Inventory Traffic 1
L ...... i 7””’ L I -~
Samoa Asset Management System Statement of Economic Strategy (2001 State Development Strategy
Road Sector Other Government Policies (2002)
10 Year Medium Term Strategy Network Traffic Management Additional Data r-c c I Preservation Investment Programme Programme
v I_ Annual MWTl IAM-2 Program Program
! I. -. - .- .-. - .- .- .-. - .- .-. -. -. - .- .- .- .- Transport Sector impacts annual budget Study Reform Plan
Figure 4: LAM Program Components
Network Preservation Needs Roads 16. The road maintenance program was developed using an economic efficiency method applied by SAMs system using a life cycle economic analysis approach. The analysis showed that there was a substantial backlog ofmaintenance and a need for a raising the annual preservation expenditure, particularly on Upolu. Table 7 summarizes current needs by maintenance treatment and length of road.
- 88 - Table 7: Road Network Preservation. Needs (2002)
Rehabilitationwith ?4urface Treatment 73.6 11.2 534.7 Reconstruction with SdweTreatment 61 1.6 36.5 60 mm Asphalt OverIay 11.6 3.9 96.7 Total 154.2 18.5 75R6
Source: Mission analysis ofmaintenance program data
17. The asphalt overlays are limited to high volume roads in urban Apia. Approximately 20 percent of the reseals (13.1 km) are for roads with traffic volumes below 200 vehiday. While this is below the threshold where vehicle operating cost savings justify sealing roads in many countries, in Samoa there are many additional benefits fiom sealing roads such as controlling erosion which is a major problem due to the high rainfall and flow conditions, mitigating health problems caused by dust propagation, and reducing the environmental impact ofthe road,
~~~~~~~S 18. Of the 52 bridges in Samoa, only two required preservation maintenance through the form of deck repairs. However, the condition surveys indicated a need for higher levels ofroutine maintenance to repair guardrails, clear drains, etc. which, if not done, could lead to more major problems. Fords had a serious maintenance problem with 25 percent in need ofrepairs. Only one culvert required maintenance.
~~~Wa~~~ 19, The analysis of seawalls indicated that ofthe 28.9 km of seawalls, 87 per cent (25 km) required only routine maintenance, To arrest ikther deterioration, maintenance to the toe, wall and crest is required on 3.3 km of seawalls, with an estimated cost ofWST 0.5 m. However, recent observations indicate that non-engineered walls disintegrate rapidly and have a short life. Significant deterioration has also occurred on some parts of engineered walls where these have been exposed to severe storms. A more structured and intensive management of the seawalls will be needed to achieve sustainable performance.
Network Investment Needs Roads 20. The 2002 Road Sector Plan identified a number of areas ofroad investment needs:
a Ania Local Cauacitv Imurovement: Investing in capacity, connectivity and intersection improvements in the Apia urban area to cater for the high traffic flows. West Coast Road: Either widening the West Coast Road (Apia to Fde’olo airport) or creating a new inland route to relieve travel demand. Unsealed Roads: A total of56.4 km ofunsealed roads, many in Apia, were identified as being potentially suitable for upgrading to paved roads.
2 1~ ADia Urban Network The Apia RoadNetwork Traffic Management Study (mS),conducted during project preparation, created an urban traffic model ofApia in TRIPS. This was calibrated using
- 89 - origin-destination surveys as well as traffic count data and used to forecast the future demands on the network. It was found that there was an inadequate road hierarchy which was contributing towards congestion. Currently, sections ofVaitele St. are approaching, or above capacity, and within 5 years the entire road would exceed capacity. Many other links and intersections will be approaching or exceeding capacity within 5-10 years.
22. The study identified a functional road hierarchy to increase the capacity and efficiency ofthe road network, comprising (i)a main east-west arterial along Vaitele Street to the south ofApia eventually extending eastwards to link with the port area and the East Coast Road, and a southern arterial along Falealili Street i Cross-Island Road; (ii)District distributor roads into the central business district (Fugalei Street, Beach Road, Falealili Street) and to the southwest (Faleata); and (iii)various local distributor roads. The South-West Arterial leading towards the sports stadium would be comprised ofwidened local roads and a new connection to Vaitele street. The viability ofthis arterial is dependent on the route selected for an alternative route to the West Coast Road (see below).
23. To handle the forecast traffic flows on Vaitele St. widening was shown to be needed within 3-4 years. Currently, it is two lanes and 7 m width for much ofits length and four lanes are estimated to be required to meet the demand. It would also be necessary to widen several bridges, which was also identified as a priority in the 2002 Road Sector Plan. An extension ofVaitele St. to provide better access to the port was identified, which would help reduce the need to improve the Vaisigano bridge on Beach Road which currently operates under a load restriction; truck tr&ik from the port would be able to easily divert to western Upolu through the new extension and light traffic would also divert. The Mdivai bridge on Beach Road would then not require widening. Widening to four lanes is required for Fugalei St. which distributes tra& to the market and bus stations, as well as providing access from the west to central Apia. Other network improvements, such as extending Convent St., were not found to be as beneficial, although significant benefits would come from improving the trflic control and designs at a number of intersections.
24. West Coast Road: The existing WCR is the primary arterial road in the country, linking the international airport at Faleolo to the city and to the two ports at Apia and Mulifanua, the road bisects many communities, it has the highest accident rate, the pavement condition is only fair, and it is vulnerable to coastal erosion and storm damage. It is deficient in a number ofrespects, including, but not limited to: (i) inadequate width for the motorized and non-motorized traffic levels which results in dangerous conditions for pedestrians; (ii)it serves as both a local access road for the many villages and the main arterial linking Apia with the airport and the wharf at Mulifanua; (iii)poor pavement condition over much ofthe length with significant cracking and some shoving and rutting; (iv) inadequate drainage resulting in frequent ponding; (v) unsafe locations ofpower poles; and (vi) inadequate parking facilities and bus bays
25. The feasibility study conducted under IAM-1 showed that there was a compelling argument in favor of constructing a new Westem Inland Route @VIR_>mid-way between the WCR and Aleisa Rd. for risk management, social and economic reasons: (i)the WIR would be located outside the Coastal Hazard Zone providing redundancy in the network and emuring good connectivity with the west ofUpolu in the event of cyclone damage; (ii)the existing WCR would become a local distributor road mainly servicing local traffic, which would improve the traffic safety and significantly reduce the mentsocial disruption caused by traffic; (iii)the WRwould reduce travel time between Apia and Fale’olol Mdifanua thereby reducing flow on the WCR with through traffk diverting inland (shorter distance and faster tr&c flows); (iv) the improved linkage ofApia with Fale’olo airport could facilitate the closure ofFagali’i airport and encourage more efficient use ofFale’olo airport.
- 90 - 26. There are hvo possible connections for the WIR. to Apia’s network {i)via the proposed South-West Arterial connecting the WIR to Vaitele Street, passing through Faleata to Vaimoso, or (ii)to the existing WCR west ofVaitele. From a network development point ofview the South-West arterial route offers many advantages, including providing improved access to the sports stadium at Faleata which will be used for the 2007 South Pacific Games (see Figure 5). However, there is potential for high land acquisition costs in which case connecting to the WCR would be the better option. The final route will be confirmed after conducting detailed route investigations.
27. The cost ofthe WIR will depend upon the fmal route selected and its connection to the existing network in Apia, The study proposal, locating the WIR 0.5 - 1.2 km from the existing WCR and terminating at the WCR in Vaitele, was estimated to cost WST 42 m with an ERR of45 percent. Land acquisition costs were approximately 40 per cent ofthe construction cost. With Meranalysis, it is expected that an alternative alignment may give higher benefits.
28. In the interim, the standard oftreatment on the WCR was reduced ftom rehabilitation to resurfacing, with priority improvements to safety and traffic flow, which resulted in a reduction of average cost from US~330,000/lunto $70,00O/lun over the proposed length of32 km. The saving ofabout US$8 million represents about 70 percent ofthe cost ofconstructing the new WIR. and thus represents a sound investment planning strategy for the Government.
3 1. Unsealed Roads: As shown in Table 8, the 2002 Road Sector Plan identified 56.4 km of unpaved roads for upgrading to sealed surface, of which 9.4 km had strong BenefitfCost Ratio (BCR) values between 3 and 11. It will be noted that only roads in the Aipa environs were considered to have sufficient traffic to return a benefitfcost ratio greater than 2. However, the detailed study of Fagaloa Bay road (see Annex 4) showed that this was economically viable by using a more cost effective treatment and considering benefits other than vehicle operating costs. Other roads with marginal BCR should also warrant lower cost treatments, such as regravelling and improvement ofdrainage and crossings.
-91 - 32. There is a need to improve the bctional capacity of several structures due to the traffic levels as shown in Table 10. The largest problem is with bridges in the Apia area where there are Egh traffic flows.
Table 8: Unsealed Road Upgrading Opportunities
BenefitiCost Ratio Length @m] Location 3-11 9,4 Apia environs 2-3 10.7 Apia environs 1-2 36.3 Rltd access
source: 2002 Road Sector Plsn
Table 9: Structure Investment Needs
Span"' ADT Recommended Cost TYPe Name Road (m) Treatment (WST m) Bridge Vaimoso Vaitele 15 20,000 Replace With 4 lanes 4.10 Taufusi Vaitele Street 12 15,500 Replace With 4 Lanes 3.30 Mulivai Beach Road MA 15,500 Replace With 4 Lanes 3.00 Fugalei Fugalei 12 15,500 Replace With 4 Lanes 3.30 Vaisigano Beach 75 15,500 Replace With 4 Lanes 15.20 Talimatau Talimatau Rd 12 3,750 Replace With 2 Lanes 1.90 Laulii &st East Coast 12 2,250 Replace With 2 Lanes 2,oo Letogo East Coast 33 2,250 Replace With 2 Lanes 4.20 Solosolo East East Coast 12 1,125 Replace With 2 Lanes 1.go LUWUIUEast East Coast 6 1,125 Replace With 2 Lanes 1.oo LuaWu'u Centre East Coast 12 1,125 Replace With 2 Lanes 2.00 Ford Sinamoga Moamoa 2,250 Replace 0.10 Vaimea 2,250 Replace With 2 Lanes 0.20 Lotosamasoni Lotosamasoni - 50 Replace 0.10 Sasina 175 Replace 0.10 Salailua South Coast 375 Replace 0.10 Tapueleele Tapueleele 375 Replace 0.10 Culvert Fugalei Fugalei 15,500 Widen
(1) NIA =Not available
Source: 2002 Road Sector Plan
Seawalls 33. No investments in seawalls were identified in the 2002 Road Sector Plan. however9there are continual requests macle by comunities for coastal erosion protection. These need to be evaluated against the Coastal Infrastructure Management Plans and the design guidelines.
* 92 - C. Institutional Reform Public Works Reform
34. The first phase ofreform in public works began with two institutional studies in 1995 (with AusAID) and 1997 @A>. These evaluated the appropriateness ofalternative models for the Samoa context, which is characterized as a ‘thin market’ (a small economy with limited competition) and strong social impacts, These outlined a phased approach, beginning with internal reorganization and reformed business processes to operate as a commercially oriented department, and aiming ultimately at an autonomous operation in the form ofa statutory authority.
35. Under W-1, the reform focused on improving the business model ofthe then Public Works LIepattment (IrwD), changing its role fiom one ofimplementing public works to one ofmanaging road system assets, with its service delivery functions being progressively outsourced to the private sector, both in civil works and in engineering services. Cautious policies and support during the period 1999-2001 resulted in repeated reviews and internal consultations within the Department, Ministry and Public Service Commission. The issues included staffretention and the transfer of services to the private sector, the divestiture ofassets, and the ultimate status ofautonomy and commercialized operation for a department responsible for a substantial portion ofpublic expenditure. With a change ofleadership in 200 1, the Government broadened its program of public service reform an& with the business process improvements and consultations already in place, the public works reform strategy and implementation plan were approved by Cabinet in August 2001.
36. Initially, the PWD was converted into its new organizational structure and named the Ministry of Works (MOW) in March 2002, with powers for forming business Units and divesting assets, Three divisions reflected its new role: Asset management, commercial operations, and administration services. By this time, most services and works were being outsourced, and only routine maintenance, road sealing, emergency works, quarry and laboratory services, and limited design and supervision services were implemented in-house, Business units were formed around these special functions and trained tfirough the private Small 3usiness Enterprise Corporation. Then, in August 2002, the Cabinet opted to fast-track the transition and after further consultations in which staff were fully briefed on their options, the MOW was re-sized in October 2002: staffing was reduced by 83 percent from 401 to 58, with 57 percent accepting redundancy, 25 percent forming private businesses (with transitional support), and 1 percent transferring to other departments. The quarry and asphalt plant operations were established as a business, and many civil works staff and building inspectors formed two conkacting companies - these have been provided with a share ofwork in FY2002103 under performance targets, and will have to compete fully after ihee years.
37. In parallel to this sector-specific structural reform, a broad public service reform was implemented in early 2003, consolidating all Ministries, with the result that MOW was combined with transport, power and water into the Ministry of Works, Transport and Infrastructure (MWTI). The road M-astructure division ofMWTI, however, is impacted by a high staffing shortage and currently requires additional suppoit fkom two individual consultants to handle line functions. The shortage arises because ofthe small pool ofprofessionals available, the remuneration gap with the private sector which was not closed much at the time ofthe refom and the incentives that accompanied the restructuring, Aside from this issue, the implementation of structural reform ofpublic works has been considered a model and blueprint in for public service reform in Samoa, and indeed is a good practice example for the road sector internationally and in the PacSc region.
- 93 - Land Transport Refom
38. The ~ru~~~rtSector Review Study provided an in-depth analysis of the sector and the reforms to date, and outlined the me&"term actions for completing these reforms to place the sector on a sustainable basis. In particular, it recommended:
Consolidating the merger ofthe land transport and road asset management functions of the present Ministry of Works Transport and Ir&astmcture, realigning some administrative functions &om the Police Department, and progressing to the establishment of these functions under a statutory authority or state-owned enterprise with commercialized operation. Three options for the structure and schedule for reaching this have been identified, and the preferred option emerging from the joint discussions would result in the establishment of a Land Transport Authority by the end of 2005, in line with the Statement of Development Strategy, It is believed that this move would also address the critical staff &o~gecurrently being experienced.
Instituting full cost recovery from road users for at least the preservation of the road assets and potentially with a return on equity that would finance modest development of the net6This could be achieved thou&: (i)introduction of a fuel levy, with dedication ofpresent road spending portion offuel excise fls0.25 per liter) and an increase ofT$0.25 per liter; (ii)modest increase in vehicle registration charges; (iii)no reduction in the portion of fuel excise devoted to general taxation fl$0.16 per liter); and (iv) separate accounting of the revenues in a special account or road fund. The road fund wodd allow direct and full funding of the road preservation program. With progressive introduction over two years, the resulting fund could support the full amrial preservation program by 2006, and possibly some development also, These objectives would also be in line with the Government's strategic objectives for requiring all SOEs to become sustainable, as announced in June with the FK 2003104 budget.
39. Figure 6 shows the tentative %oad Map for Land TmportReform?' along with a proposed implementation of the user cost recovery. In introducing Road User Charges @UC) it was recognized that care is needed to avoid eroding the competitive margin that has been achieved through the national bulk purchase of hel, in ensuring that fidl efficiency gains have been achieved in expenditures onboth traffic administration and on road asset management so that costs are "ked, and that the RUC be well-designed and not rely solely on fuel as a revenue source. A nominal level ofRUC would be introduced initially and subsequent increases would be based on a detailed re-analysis ofcosts, including review ofthe optimal expenditures for road preservation.
- 94 - Agreed Road Map for Land Transport Reform
1. Preparation and Endorsement of the Road Map for Land Transport Reform - November 2003 2. Detailed design of Land Transport Authority - Au~st 2004 3. Establish Land Transport Authority - March 2005 4. Introduce Road User Charges - July 2004
Figure 6: Road Map for Land Transport Reform
- 95 -