Report No: 57291-WS

Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: 57291-WS

Public Disclosure Authorized

INTERNATIONAL DEVELOPMENT ASSOCIATION

EMERGENCY PROJECT PAPER

ON A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 6.63 MILLION (US$10.0 MILLION EQUIVALENT) Public Disclosure Authorized AND A

PACIFIC REGION INFRASTRUCTURE FACILITY GRANT

IN THE AMOUNT OF US$1.79 MILLION (AUD 2 MILLION EQUIVALENT)

TO THE

INDEPENDENT STATE OF SAMOA

Public Disclosure Authorized FOR A

SAMOA POST TSUNAMI RECONSTRUCTION PROJECT

October 15, 2010

Timor-Leste, Papua New Guinea & the Pacific Islands Sustainable Development Department East Asia and Pacific Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Public Disclosure Authorized Bank authorization.

CURRENCY EQUIVALENTS (Exchange Rate Effective May 6 2010) Currency Unit = Samoan Tala (SAT) SAT 1 = US$0.384 AUS 1 = US$0.9

FISCAL YEAR July 1 – June 30

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank M&E Monitoring and Evaluation

CAS Country Assistance Strategy MIS Monitoring Information System CERP Cyclone Emergency Recovery Project MNRE Ministry of Natural Resources and Environment

CFAA Country Financial Accountability Assessment MOF Ministry of Finance

CIM Coastal Infrastructure Management MTI Ministry of Trade & Industry COEP Codes of Environmental Practice MWTI Ministry of Works, Transport & Infrastructure CPAR Country Procurement Assessment Report NBF Non Bank Financed CQS Selection Based on Consultant NCB National Competitive Bidding DC Development Consent NCDP National Community Development Project DMO Disaster Management Office NDP National Disaster Plan EIA Environmental Impact Assessment NEOC National Emergency Operations Center

EMF Environmental Management Framework NGO Non Governmental Organization

EMP Environmental Management Plan OM Operations Manual EPP Emergency Project Paper PCA Procurement Capacity Assessment ERC Emergency Recovery Credit PCRFI Pacific Catastrophe Risk Financing Initiative ESSAF Environmental & Social Screening Assessment Framework PDNA Post Disaster Needs Assessment EU European Union PFM Public Financial Management FBS Fixed Budget Selection PIC Pacific Island Countries

FM Financial Management PID Project Information Document

FMR Financial Management Requirements PMT Project Management Team GEF Global Environment Facility PRIF Pacific Region Infrastructure Facility GFDRR Global Fund for Disaster Risk Reduction PUMA Planning & Urban Management Authority GOS Government of Samoa PEAR Preliminary Environmental Assessment Report GWG Goods and works QBS Quality Based Selection IA Implementing Agency QCBS Quality Cost Based Selection

IAMP Infrastructure Asset Management Project RVP Regional Vice President

IBRD International Bank for Reconstruction & Development SA Special Account

ICB International Competitive Bidding SAMS Samoa Asset Management System ICR Implementation Completion Report SAT Samoan Tala IDA International Development Association SBD Standard Bidding Documents IFC International Finance Corporation SIAM-2 Second Infrastructure Asset Management Project ISDS Integrated Safeguards Data Sheet SOE Statements of Expenditure ISN Interim Strategy Note TRG Technical Review Group

LARAP Land Acquisition and Resettlement Action Plan TTL Task Team Leader

LARF Land Acquisition & Resettlement Framework UN United Nations LCS Least Cost Selection WB World Bank LTA Land Transport Authority Vice President: James W. Adams Country Director: Ferid Belhaj Sector Director John A. Roome Sector Manager Charles Feinstein Task Team Leader: Demetrios Papathanasiou

SAMOA

Samoa Post Tsunami Reconstruction Project

CONTENTS

Page A. Introduction ………………………………………………………………………………1 B. Emergency Challenge: Country Context, Recovery Strategy and Rationale ...... 1 C. Bank Response: The Project ...... 3 D. Appraisal of Project Activities ...... 6 E. Implementation Arrangements and Financing Plan ...... 10 F. Project Risks and Mitigating Measures ...... 13 G. Terms and Conditions for Project Financing ...... 15

Annex 1: Detailed Description of Project Components ...... 16

Annex 2: Results Framework and Monitoring ...... 19

Annex 3: Summary of Estimated Project Costs ...... 23

Annex 4: Financial Management and Disbursement Arrangements ...... 23

Annex 5: Procurement Arrangements ...... 31

Annex 6: Implementation and Monitoring Arrangements ...... 31

Annex 7: Project Preparation and Appraisal Team Members ...... 38

Annex 8: Environmental and Social Safeguards Framework ...... 39

Annex 9: Economic and Financial Analysis ...... 44

Annex 10: Documents in Project Files ...... 45

Annex 11: Statement of Loans and Credits ...... 46

Annex 12: Country at a Glance ...... 47

Annex 13: Maps No. IBRD 37665 ...... 49

SAMOA

SAMOA POST TSUNAMI RECONSTRUCTION

PROJECT PAPER

EAST ASIA AND PACIFIC

EASNS

Date: October 15, 2010 Team Leader: Demetrios Papathanasiou Country Director: Ferid Belhaj Sectors: Roads and highways (100%) Sector Manager/Director: Charles M. Themes: Natural disaster management (100%) Feinstein/John A. Roome Project ID: P120594 Environmental category: Partial Assessment Lending Instrument: Emergency Recovery Loan Joint IFC: Joint Level:

Project Financing Data [ ] Loan [X] Credit [ ] Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others: Total Bank financing (US$m.): 10.00 Proposed terms: Standard, with 40 years maturity Financing Plan (US$m) Source Local Foreign Total BORROWER/RECIPIENT 0.00 0.00 0.00 International Development Association (IDA) 10.00 0.00 10.00 Pacific Region Infrastructure Facility Trust 1.79 0.00 1.79 Fund Total: 11.79 0.00 11.79 Borrower: Ministry of Finance Samoa

Responsible Agency: Ministry of Natural Resources and Environment Private Bag Samoa Tel: (685) 22-481 Fax: (685) 23-176 [email protected] The Land Transport Authority Land Transport Authority PO Box 1607 Samoa Tel: (685) 26-740 Fax: (685) 26-739 [email protected] www.lta.gov.ws

Estimated disbursements (Bank FY/US$m) FY 11 12 13 Annual 3.50 3.50 4.79 Cumulative 3.50 7.00 11.79 Project implementation period: Start November 29, 2010 End: March 12, 2013 Expected effectiveness date: November 25, 2010 Expected closing date: April 30, 2013

Does the project require any exceptions from Bank policies? Ref. Section Appraisal of Project Activities [ ]Yes [X] No Have these been approved by Bank management? [ ]Yes [ ] No Does the project include any critical risks rated “substantial” or “high”? [ ]Yes [X] No Ref. Section Project Risks and Mitigating Measures

Project development objective Ref. Section Bank Response The project's Development Objective is to assist the Government of Samoa (GOS) in its efforts to support the relocation and rehabilitation of communities living in the island of Upolu affected by the tsunami of September 29, 2009, through the provision of improved infrastructure access to relocation sites; enhanced transport infrastructure, and assistance to local communities to address future natural disasters.

Project description [one-sentence summary of each component] Ref. Section Bank Response The proposed project is a US$10.0 million IDA Emergency Recovery Credit (ERC) with additional grant co-financing of US$1.79 million (AUD 2 million equivalent) from the Pacific Region Infrastructure Facility to support the transport sector post-tsunami recovery plan of the GOS. The Bank and GOS agreed that the ERC would be implemented through the Land Transport Authority (LTA) and Ministry of Natural Resources and Environment (MNRE), with overall coordination by the Ministry of Finance (MoF).

The proposed Credit incorporates five project components: (a) Component 1. Upgrading of existing access tracks and seawalls US$5.6 million. This component will provide partial retroactive financing for urgent works by LTA to: provide improved road access to relocation areas; construct a new link road that will provide an alternative route along the south coast above the natural disaster risk zone; and reinstate damaged seawalls and construct new seawalls to protect the east and south coast roads. (i) Lepa/Lalomanu link road US$1.1 million. This sub-component responds to the need to provide improved road access to relocation areas and for an alternative route along the south coast above the natural disaster risk zone. (ii) Upgrading of access tracks US$2.8 million. This sub-component responds to requests from village mayors to upgrade existing tracks from the east coast road to areas where residents are relocating after the tsunami. (iii) Sea wall repair and reconstruction US$1.6 million. This sub-component will restore and upgrade seawalls along critical lengths of the coastal roads. (iv) Salani Bailey Bridge repair US$0.04 million. This sub-component will repair damage caused by the tsunami. (v) Technical assistance US$0.06 million. This sub-component will finance specialist technical assistance for storm-water drainage design along all the upgraded routes.

(b) Component 2. Community Coastal Infrastructure Management Plans US$0.2 million. This component will update the mapping of the affected and relocation areas, and revise the community

level Coastal Infrastructure Management (CIM) Plans for these areas to assist with infrastructure planning and monitoring, and disaster risk reduction. CIM plans will be revised through close consultation with communities.

(c) Component 3. East Coast Inland Route (Samusu-Lalomanu) US$4.6 million. This component will provide a new road link along the east coast above the natural disaster risk zone to improve access to and for communities relocating inland from the east coast, and provide a secure transport link between Samusu and Lalomanu. (i) Route alignment study, design & supervision US$0.5 million (ii) Environmental Impact Assessment US$0.1 million (iii) Compensation cost To be determined following route alignment study (iv) Road construction US$4.0 million

(d) Component 4. Dual-purpose pedestrian access routes US$0.6 million. This component will provide new and improved pedestrian access routes to relocation areas above the south east escarpment area, both to facilitate access for resettled families between their new homes and the coast, and to serve as evacuation routes in the event of a tsunami or cyclone. (i) Feasibility study, design and supervision US$0.1 million (ii) Construction of pedestrian access routes US$0.5 million

(e) Component 5. Project Management and Support US$0.3 million. This component will support contracted consultant services, and staffing plus operating costs for in-house project management, administration, and monitoring and evaluation activities by LTA and MNRE. (i) Project Management US$0.23 million. Support for in-house project management, administration, training, and monitoring activities by MoF, LTA and MNRE. (ii) Monitoring & Evaluation US$0.07 million. This sub-component will support TA to establish the project evaluation framework and conduct before-and-after analysis to evaluate the impact of the project.

Given the emergency preparation of the above activities, there are uncertainties regarding the final design and costs of the above components. The project will therefore include an amount of unallocated funds of US$0.50 million to cover contingencies and currently unforeseen needs.

Which safeguard policies are triggered, if any? Ref. Section Appraisal of Project Activities The project triggers OP 4.01. Because of the works taking place where roads already exist and/or the size of the activities is limited, the project is characterized as category B. Samoa has well-developed environmental assessment and monitoring procedures for road works. Relevant Codes of Environmental Practice (COEP) were developed with the assistance of international consultants to modern standards, have been adopted by Samoa, and are used for the SIAM-2. Appropriate environmental and social frameworks have been developed to be implemented under this emergency operation.

Social Issues. The project will restore and improve access to communities and relocation areas. Overall, the impacts are expected to be positive, as access to critical infrastructure (e.g. schools, hospitals, markets) will be restored and improved bringing better development outcomes to affected communities.

A Social Assessment will be conducted early in the implementation period in an effort to (i) increase awareness of the project, (ii) identify relevant social issues that may arise from the project, (iii) discuss potential impacts of the project with the community (and mitigation measures), (iv) (identify and recommend actions that will mitigate negative impacts and/or maximize positive impacts either on the general population or on specific groups, and (v) solicit input from community members into the project

design, in particular the alignments of the Samusu-Lalomanu road and the dual-purpose pedestrian access routes.

The preparation of the social assessment and the consultations will be broad based and representative, paying particular attention to the input and experiences of women, the youth, and other potential vulnerable groups. Any relevant actionable inputs will strengthen the project design, including the Land Acquisition and Resettlement Action Plan's (LARAPs), and the Environmental and Social Screening Assessment Framework (ESSAF).

Component 1 is providing retroactive financing for activities. Due diligence will be undertaken to determine whether the activities were implemented in compliance with national law and the Bank's safeguards policies. The ESSAF provides guidance on the information that is required from the due diligence including summaries of relevant legislation, summaries of the activities' location and scope, description of the scope and magnitude of adverse impacts, and details on measures put in place to mitigate those impacts.

OP 4.12 is triggered as Components 3 and 4 may require involuntary land acquisitions and/or resettlement. The project aims to minimize involuntary land acquisition and/or resettlement, in part by involving communities in the design of the route alignments. In addition, a Land Acquisition and Resettlement Framework (LARF) has been prepared. The project has adopted a framework approach because the alignment of the relevant sub-projects under Component 3 and 4 will not be known prior to project approval.

The LARF provides guidelines for temporary and permanent land acquisition, resettlement (if necessary), and compensation for loss of crops and economic trees. The LARF provides principles for land use which include the avoidance and minimization of involuntary resettlement, land acquisition, and damage to physical assets. It also details procedures on institutional roles and financial responsibilities. The LARF provides guidelines for the preparation of Land Acquisition and Resettlement Action Plans once the specific route alignments of sub-projects are known.

Component 2 is financing the updating of Coastal Infrastructure Management Plans. The Component will include close consultation with affected communities as an integral part of the process of updating the district Coastal Infrastructure Management Plans.

A. Introduction

1. This Project Paper seeks the approval of the Executive Directors to provide an Emergency Recovery Credit (ERC) in an amount of SDR 6.63 million (US$10.0 million equivalent) to Samoa for post tsunami reconstruction.

2. The proposed Credit would help finance the costs associated with the rehabilitation and reconstruction program of the Government of Samoa (GOS) to recover from the tsunami that hit the country in September 2009. Over 5,000 people --more than 1 out of every 50 Samoans-- were affected; Samoa incurred damages and losses equivalent to more than 22 per cent of its Gross Domestic Product (GDP). A significant part of the population has chosen to relocate inland from the shore and is currently in need of assistance to rebuild and rehabilitate their communities.

3. The proposed Project will help respond to the situation by addressing the needs of the GOS reconstruction plan, focusing primarily on the transport sector and on strengthening the affected communities’ risk management capacity.

4. Partnership arrangements: The Pacific Region Infrastructure Facility (PRIF) agreed, on December 2nd 2009, to co-finance this proposal with an additional US$1.79 million (AUS$2 million equivalent) grant funding. There are no other multilateral or bilateral agencies co-financing the rehabilitation needs of this particular sector.

B. Emergency Challenge: Country Context, Recovery Strategy and Rationale

5. Samoa is highly vulnerable to natural hazards. The World Bank’s Natural Disaster Hotspots study identifies Samoa as the 30th country in the world’s most exposed states to three or more hazards. Seventy percent of Samoa’s population lives on the coast facing coastal hazards such as cyclones, tsunamis, flooding and storm surges. Cyclones Ofa (1990) and Val (1991) have been the most notable, affecting 195,000 and 88,000 people respectively, and costing approximately four times GDP. Geo-hazards such as earthquakes, tsunami and volcanic eruptions are also threats. The National Tsunami Plan of Samoa identifies a wave of between 7m and 9m average run-up height to occur approximately every 50 – 100 years. With the current available analysis, this remains a best design case equivalent to a once-in-a- lifetime event and resembles the recent tsunami.

6. On September 29, 2009, a powerful earthquake struck south of Samoa and was followed by a tsunami that impacted American Samoa, Samoa, and northern Tonga. In Samoa there have been 143 reported deaths and an estimated 5,274 people made homeless. The main affected areas, with about 7 percent of the country’s population, are the southern, eastern and southwestern coast of Upolu Island.

7. The response from the GOS and the international humanitarian community was immediate, swift and efficient. A fully functional National Emergency Operations Centre (NEOC) was activated near the capital Apia. Access roads to affected areas were quickly cleared allowing for rapid response efforts by communities, Non Governmental Organizations (NGO) and the national Disaster Management Office (DMO). With support from the Australian and New Zealand military and disaster relief teams, the Government provided medical facilities, tents and clean water. Strong social networks responded effectively despite the devastation, and many homeless were accommodated by family and friends.

8. The Government’s Disaster Advisory Committee requested assistance from the United Nations (UN) for a multi-cluster needs assessment. Advanced teams arrived in Samoa on October 4 and 5. At the same time the Minister of Finance, in a meeting with World Bank’s East Asia–Pacific Vice President,

1 requested World Bank support for a Post Disaster Needs Assessment (PDNA) to complement the early recovery assessment and formulate a long term recovery and reconstruction strategy. A joint World Bank, Asian Development Bank, and United Nations PDNA team arrived in Samoa on October 7, 2009 to assist the GOS.

9. The Post Disaster Needs Assessment estimated the sum of direct damages and economic losses in Samoa at US$124 million (equivalent to more than 22 percent of Samoa’s GDP). In economic terms, the infrastructure sectors accounted for three quarters of the total damages at US$64.8 million with an additional US$4.3 million in economic losses. The greatest costs were found in the transport sector, where the coastal road and accompanying sea walls were severely damaged. Furthermore, about 13 percent of the country’s housing stock was lost.

10. A significant proportion of the affected population has chosen to relocate inland from the shore and the GOS decided to support this move with the provision of services. This move inland, as part of the recovery and future disaster risk reduction, raises the total post-tsunami recovery costs to about US$167.4 million. The GOS officially requested Bank support to address the reconstruction needs of the roads infrastructure in January 2010.

11. Before the tsunami disaster, Samoa was performing strongly with real per capita income growing steadily since the mid-nineties. However, the country has been recently affected by the global financial crisis with real GDP falling by more than 5 percent in FY 2008/9. Many jobs have been lost in the domestic economy, primarily in the export manufacturing sector, and other jobs and associated remittances have been lost through the closure of a large tuna canning plant in neighboring American Samoa. The agriculture sector also suffered in 2008/09 as fish exports fell. Construction output was reduced due to a decline in activity following the South Pacific Games in 2007. However, the small, but growing tourism sector used to have a positive impact on incomes, but mostly in the tsunami affected area. This was reflected in growth in the hotels, restaurants, and transport and commerce sectors in the affected areas.

12. Despite the global crisis, Samoa’s current account deficit narrowed, as remittances and tourism receipts --together accounting for more than 40 percent of GDP-- continued to grow in 2008. Samoan authorities responded to the crisis by lowering interest rates and increasing development spending. The deficit was budgeted to double to over 10 percent of GDP in FY 2009/10 and would be financed by soft loans and aid grants. Public debt comprises mostly concessional lending from the ADB and World Bank and is expected to reach 41 percent of GDP in 2009/10, slightly above government’s target of 40 percent of GDP.

Government’s Strategy

13. With support from the World Bank’s Infrastructure Asset Management program, Samoa has adopted a modern and comprehensive disaster risk management framework in its 2006 Disaster and Emergency Management Act. The National Disaster Council, chaired by the Prime Minister and served by the Disaster Management Office (DMO), serves as the national coordinating mechanism to oversee disaster risk management in the country, including the tsunami recovery plan. Responsibility for Disaster Management is assigned to the Ministry of Natural Resources and Environment (MNRE) which houses the DMO as a Section of the Meteorology Division with three staff members.

14. A National Samoa Tsunami Recovery Plan has been established by the GOS based on the integrated assessment reports prepared jointly by the GOS and development partners. The plan is coordinated by the Ministry of Finance and a supplementary budget for recovery was approved by cabinet in December 2009. The recovery plan estimates total needs at US$108 million with expenditure at

2 approximately US$26 million per year in the first three years of recovery. The Ministry of Finance confirmed that financing for the recovery effort will be comprised of a mix of resources including multilateral and bilateral grants, loans and restructuring. The plan includes activities already underway and lists priorities for the medium term from 2010-2012. Longer term actions beyond 2012 are to be addressed through ongoing multi-year sector programs.

15. The National Tsunami Recovery Plan calls for a US$27.9 million investment in the transport sector in the next three years. Whilst immediate clearance of roads and superficial repair was conducted in October and November 2009, increased heavy transport combined with weakened or damaged seawalls have left vulnerabilities from displaced rocks and potential coastal erosion in exposed sections of the road. The tsunami recovery plan also calls for the upgrading of roads to resettlement areas and provides for prioritized investments in the following order: (i) restoration of existing roads; (ii) restoration of bridges and main routes; (iii) a new road to resettled communities; and (iv) reconstruction of the seawalls.

16. The GOS approached the Bank to support the recovery program through the financing of transport infrastructure for the resettled communities inland from the coast. The aim is to establish normal living conditions for these communities through the provision of services that will: i) provide better transport access to relocated communities; ii) improve access for agricultural activities in these areas to support income generation; and iii) safeguard the disaster mitigation benefits of moving exposed populations away from the coastal areas, where they are at risk from tsunami and cyclones.

17. Risk factors that affect the Government’s tsunami recovery program include the concatenation of events, such as additional natural hazards that might affect the vulnerable population. Affected families have been stretched for resources and find themselves dependent on their community, the government, and family members abroad as they rebuild. While remittances from abroad have provided in many cases a life-line, the newly relocated communities are still vulnerable. The passage of cyclone Rene on February 14, 2010, and tsunami warning following the Chile Earthquake of February 27, 2010, fortunately did not materialize in significant events in Samoa, but were reminders of the potential risks Samoan communities must mitigate against.

C. Bank Response: The Project

18. At the request of the GOS, within two weeks from the disaster and with financial support from the Global Fund for Disaster Risk Reduction (GFDRR), the Bank led a team of experts from the United Nations (UN) and the Asian Development Bank (ADB), who together with the GOS prepared the PDNA. Early results from the PDNA were used by the Ministry of Finance (MoF) to prepare the mid-year supplementary budget and the post-tsunami recovery program.

19. Given the economic impact of the disaster, the GOS and the Bank agreed to increase Samoa’s IDA allocation to US$41 million. The GOS requested officially in January 2010 from the Bank: (i) assistance for the transport sector post-tsunami reconstruction program (US$10.0 million); (ii) additional financing for the existing Bank’s operation in the health sector (US$3.0 million); and (iii) budget support (US$20.0 million).

20. This proposed Project is a SDR 6.63 million (US$10.0 million equivalent) IDA Emergency Recovery Credit (ERC) with an additional grant co-financing of US$1.79 (AUD 2 million equivalent) from the PRIF to support the transport sector post-tsunami recovery plan of the GOS. The Bank and GOS agreed that the ERC would be implemented through the Land Transport Authority (LTA) and the Ministry of Natural Resources and Environment (MNRE), with overall coordination by the Ministry of Finance (MoF). LTA and MNRE are currently implementing the Second Infrastructure Asset Management (SIAM-2) Bank project. SIAM-2 progress has been satisfactory and it is proposed that

3 established financial and procurement management systems used for SIAM-2 will also be implemented for this Project. After Cyclone Heta in 2004, the Bank financed an Emergency Recovery Project, the ICR of which was satisfactory; lessons learned from that operation were incorporated in the design of this post-tsunami proposed Project.

21. This Project would be complemented by the Pacific Catastrophe Risk Financing Initiative (PCRFI) currently underway. The initiative is expected to deliver analytic results in early 2011. As part of that effort, the project will gather high resolution satellite data for use in mapping the building stock of Pacific Island countries. In the case of Samoa the PCRFI will acquire additional imagery over the affected areas and share this with the government of Samoa and the Tsunami Reconstruction Project team in order to inform the recovery planning and updates of community Coastal Infrastructure Management plans. Additional disaster risk management capacity building will be provided in the future through the Pilot Program for Climate Resilience1.

Project Development Objective

22. The Project’s Development Objective is to assist the GOS in its efforts to support the relocation and rehabilitation of communities living in the island of Upolu affected by the tsunami of September 29, 2009, through the provision of improved infrastructure access to relocation sites; enhanced transport infrastructure, and assistance to local communities to address future natural disasters.

Summary of Project Components

23. The proposed Credit incorporates five Project components:

(a) Component 1. Upgrading of existing access tracks and seawalls – US$5.6 million. This component will provide partial retroactive financing for urgent works by LTA to: provide improved road access to relocation areas; construct a new link road that will provide an alternative route along the south coast above the natural disaster risk zone; and repair damaged seawalls to protect the east and south coast roads.

(i) Lepa/Lalomanu link road – US$1.1 million. This sub-component responds to the need to provide improved road access to relocation areas and for an alternative route along the south coast above the natural disaster risk zone.

(ii) (ii) Upgrading of access tracks – US$2.8 million. This sub-component responds to requests from village mayors to upgrade existing tracks from the east coast road to areas where residents are relocating after the tsunami.

(iii) Sea wall repair and reconstruction – US$1.6 million. This sub-component will restore and upgrade existing seawalls along critical lengths of the coastal roads.

(iv) Salani Bailey Bridge repair – US$0.04 million. This sub-component will repair damage caused by the tsunami.

(v) Technical assistance – US$0.06 million. This sub-component will finance specialist technical assistance for storm-water drainage design along all the upgraded routes.

1 The Pilot Program for Climate Resilience, approved in November 2008, was the first program developed and operational under the Strategic Climate Fund, which is one of two funds within the design of the Climate Investment Funds 4

(b) Component 2. Community Coastal Infrastructure Management Plans – US$0.2 million. This component will update the mapping of the affected and relocation areas, and revise the community level Coastal Infrastructure Management (CIM) Plans for these areas to assist with infrastructure planning and monitoring, and disaster risk reduction. CIM plans will be revised through close consultation with communities.

(c) Component 3. East Coast Inland Route (Samusu-Lalomanu) – US$4.6 million. This component will provide a new road link along the east coast above the natural disaster risk zone to improve access to and for communities relocating inland from the east coast, and provide a secure transport link between Samusu and Lalomanu.

(i) Route alignment study, design & supervision – US$0.5 million (ii) Environmental Impact Assessment – US$0.1 million (iii) Compensation cost – To be determined following route alignment study2 (iv) Road construction – US$4.0 million

(d) Component 4. Dual-purpose pedestrian access routes – US$0.6 million. This component will provide new and improved pedestrian access routes to relocation areas above the south east escarpment area, both to facilitate access for resettled families between their new homes and the coast, and to serve as evacuation routes in the event of a tsunami or cyclone.

(i) Feasibility study, design and supervision – US$0.1 million (ii) Construction of pedestrian access routes – US$0.5 million

(e) Component 5. Project Management and Support – US$0.3 million. This component will support contracted consultant services, and staffing plus operating costs for in-house project management, administration, and monitoring and evaluation activities by LTA and MNRE.

(i) Project Management – US$0.23 million. Support for in-house project management, administration, training, and monitoring activities by MoF, LTA and MNRE.

(ii) Monitoring & Evaluation – US$0.07 million. This sub-component will support TA to establish the Project evaluation framework and conduct before-and-after analysis to evaluate the impact of the Project.

24. Given the emergency preparation of the above activities, there are uncertainties regarding the final design and costs of the above components. The Project will therefore include an amount of unallocated funds of about US$0.50 million to cover contingencies and currently unforeseen needs.

25. This Project does not include a separate capacity building component for disaster preparedness. Samoa has a well-established disaster risk management regime which has been supplemented by awareness-raising, training and hazard management education campaigns carried out under the IDA- supported Cyclone Emergency Recovery Project (CERP) and Infrastructure Asset Management Project (IAMP Phases 1 and 2). Furthermore, Samoa’s natural disasters management will be strengthened by separate future activities under the Pilot Program for Climate Resilience, which in Samoa is managed by the World Bank.

2 GOS will provide counterpart funds, as may be necessary, to fully cover any costs beyond the amounts allocated under the project for this subcomponent. 5

Eligibility for Processing under OP/BP 8.0

26. The affected population requires emergency assistance to rebuild their communities. This Project would address the priority areas of transport access, community infrastructure management plans and enhance the resilience of communities before the next cyclone season. The option of additional financing for the transport sector under the Bank’s SIAM-2 project was discussed, but was not selected because the GOS preferred the flexibility of the Rapid Response to Crisis and Emergency Policy of the Bank to allow for retroactive financing of expenses incurred by the GOS during the relief and early recovery stages of the disaster. In addition, the emergency operation allows for shorter time frames of processing for civil engineering and reconstruction activities.

27. The Bank has experience in disaster mitigation and emergency recovery in the region. In particular, the Bank financed the Tonga Cyclone Emergency Recovery and Management Project (2002) and more recently the Samoa Cyclone Emergency Recovery Project (2004), which sought to rehabilitate damaged land transport infrastructure and reduce vulnerabilities to natural hazards. The Project team was also able to draw on the expertise of the East Asia Pacific Disaster Risk Management team with experience across the region, including reconstruction from Earthquake (Wenchuan, China 2009) and Asian Tsunami (2004), as well as the Bank’s newly formed Global Expert Team on Disaster Risk Management.

Consistency with Country Strategy (CAS or ISN)

28. The proposed Project is consistent with the objective of Regional Engagement Framework (2006- 2009) of the Bank, to safeguard service delivery by improving resilience to natural hazards and helping Pacific member countries to manage natural disasters, where the earthquake and earthquake-incurred tsunami will remain the potential threat in the coming years. The Project falls within the ambit of the Bank’s broader development objectives for the region, to help reduce the vulnerability of small island states to economic and physical shocks.

Expected Outcomes

29. The Project outcomes expected to be achieved by the proposed Credit are: (a) improved road and pedestrian access to relocation areas; (b) restored road access to communities affected by the September 29, 2009 through repairs to main and secondary land transport routes and associated seawalls damaged by the tsunami; (c) more resilient road network, that provides continued access to populated areas during and after natural disasters; and (d) improved planning through updated CIM plans and improved base and hazard mapping. The results framework and arrangements for result monitoring are in Annex 2.

D. Appraisal of Project Activities Economic

30. An economic analysis of the operation is not possible at this early stage of the recovery process while the overall pattern of restoration of infrastructure and services across all sectors, and community relocation plans are underway. Subprojects to be financed under this operation are limited to the most urgent and effective works needed to restore access and coastal protection to affected communities and upgrade access to relocation areas.

31. Nevertheless, it is expected that improvement in roads infrastructure will allow for overall better transport services to areas were communities have relocated. Economic and social benefits associated with better roads conditions will positively affect education, health, access to markets and agricultural productivity. In addition, improved road infrastructure to the affected areas will reduce the vulnerability 6 of road assets to potential future disasters and secure alternative access routes to the South of Upolu Island.

Technical

32. The works proposed under the Project – repairs and reconstruction of existing seawalls and roads, improvement of tracks and construction of new roads with associated drainage – are similar in nature and scope to the type of works that Ministry of Works, Transport & Infrastructure (MWTI), LTA, and their consultants and contractors have been designing and implementing under the IAMP and SIAM- 2 projects over the past decade. LTA managers and staff (mostly long-serving MWTI staff transferred to LTA within the last year) have acquired extensive design and construction supervision experience. Through the introduction of its Samoa Asset Management System (SAMS), LTA maintains an accurate current database of the national road network which provides accurate data on individual road lengths and mapping for bid document preparation. The works that have already been, and will be, implemented are all based on simple, conventional, tried and tested technology and are therefore unlikely to present any technical challenges to any of those involved in their implementation.

33. The new/upgraded roads following existing plantation tracks or routes were already identified by the local community and documented in Coastal Infrastructure Management (CIM) plans covering the affected region. These CIM plans were originally developed in 2005 as part of the SIAM-2 project and will be updated within 6-8 months from effectiveness of this Project. This should ensure that potential implementation problems are identified and addressed early, and that the alignment for the new road is developed with strong community involvement and support.

34. Local construction contractors have proven themselves to be cost-competitive for road construction, experienced, and capable of good quality works. All road works under the SIAM-2 project have been won and undertaken by local contractors under internationally competitive bidding procedures. It is expected that local contractors will be used for construction works proposed under this Project, while a significant part of construction materials will be sourced locally. This will provide employment and contribute positively to the local economy.

Sustainability

35. The Project will add some 35 kilometers of upgraded or new roads to the Samoa road network (Components 1 and 3), plus associated access works (Component 4). While this will add to the overall cost of road maintenance in Samoa, Samoa has a strong road maintenance capability and the capacity to sustainably maintain these roads. This capacity has been developed over the last 10 years with Bank support as part of the SIAM Phase 1 and 2 projects. Successful reforms in the sector include:

(a) Outsourcing of routine and emergency road maintenance to the private sector under a system of annual performance-based road maintenance contracts. Under this system, the island of Upolu is divided into 10 zones, each of which has a separate contract for routine maintenance. These contracts are re-bid every 12 months to ensure competitiveness and maintain standards. The system has been in place for more than 5 years and has proven successful in improving both the quality and timeliness of road maintenance, and reducing the cost. Samoa is a leader in road maintenance reform and performance in the Pacific.

(b) Establishment of the LTA that assumed responsibility for road asset management in 2009. LTA is a semi-autonomous government agency with its own Board and funding from a combination of earmarked road user charges and GOS budget allocations. Continuity of road maintenance programs and capacity was achieved by transferring qualified staff and established systems from the MWTI.

36. The road maintenance framework has proved to be effective and should comfortably accommodate the additional length of roads (approximately 35 km) that will be handed over for maintenance on completion under the proposed Project. The maintenance of seawalls that protect coastal roads will also be put out to contract by LTA.

Fiduciary

37. Financial Management arrangements for this Project will follow the system currently operating satisfactorily for the SIAM-2 project. LTA and MNRE already have in place an adequate financial management system which will require little adaptation to suit the needs of the proposed ERC and already meets the Bank’s financial management requirements. The SIAM-2 project has achieved timely submission of the quarterly financial reports and the annual audit reports of good quality. The audit reports have not raised any accountability issue or any significant internal control weakness.

38. Infrastructure works under the Project will be procured through contracting packages under the similar procurement processes and conditions as applied to the ongoing SIAM-2 project (see Annex 5 for details). Procurement performance under SIAM-2 has been satisfactory. Procurement of works under Component 1 for contracts that have been already awarded by LTA and construction has commenced, may be eligible for retroactive financing in accordance with the Procurement Guidelines. Procurement of works, goods and consultancy services are to be procured as described in Annex 5.

Lessons learned

39. Lessons learned from post-disaster reconstruction projects have informed the design of this operation and include recommendations identified in the PDNA, specific lessons learned from the Samoa Cyclone Emergency Recovery ICR, as well as best practices in reconstruction. These include:

(a) Structural investments should be designed to incorporate the natural hazard and climate risks they will face and not merely to previous standards. A drainage engineer is included with the specific objectives of assessing the flood risks and flood management options to safeguard the new road infrastructure. Such drainage designs shall incorporate consideration of longer term climate risks.

(b) Reallocating resources from existing projects affects the ability to attain long-term development goals and is less effective than specific reconstruction lending.

(c) Project design should be simple, based on extensive participation by the local communities and beneficiaries, and take into account local implementation capacity. The project takes advantage of the previously established Coastal Infrastructure Management Plans (CIM), which were drafted before the tsunami in close consultation with the communities and which in the affected area already identified the desired mitigation options and locations of infrastructure to be relocated to reduce cyclone and tsunami risks.

(d) In small countries with relatively small construction sector methodologies for calculating contracts and tendering process needs to be carefully designed and flexible allowing for “slice and package”3 approaches and the possibility of bids to be repackaged or re-advertised. This operation will allow for a slice and package approach to the bidding for road upgrades and road construction whilst maintaining an emphasis on high quality supervision.

3 Slice and Package: A procedure whereby a large homogeneous project is sliced into smaller similar contracts that are bid simultaneously so as to attract the interest of both small and large firms. Firms may offer bids on individual contracts (slices) or on a group of similar contracts (packages) and award is made to the combination of bids offering the lowest cost to the Employer. 8

(e) Supervision needs to be relatively intensive. Emergency loans are put together over a shorter time period and as a result some details are left to be defined during project implementation. Flexibility will be required to deal with changing post-disaster conditions, therefore more Bank supervision effort will be applied to this Project.

Safeguards

40. The Project triggers OP 4.01 due to civil works impacts from the rehabilitation of access roads and sea walls and construction of a new segment of national roads. Because the civil works would mostly take place in existing roads and the size of the activities is limited in scope, the Project is characterized as category B.

41. Samoa has well-developed environmental assessment and monitoring procedures and has developed, issued and implemented the Samoa Codes of Environmental Practice (COEP) since April 2007 for road works, coastal protection, quarry development and operations, drainage and construction of communications facilities, among others. The COEP were developed with the assistance of international consultants and is on par with modern and international standards. The COEP have been updated and used for the SIAM-2 project.

42. To ensure compliance with the Bank’s environmental safeguards policies, before disbursements are made for the retroactively financed activities, the Bank will review for compliance the Environmental Management Plans (EMP) included in the works contracts relating to these activities. Disbursements will be made only when the Bank’s environmental specialists confirm that environmental safeguards were properly addressed.

43. An appropriate Environmental and Social Screening Assessment Framework (ESSAF) has been developed building on the Samoa COEP for works for which Requests for Proposals will be issued following Board approval (Components 1.3, 3 and 4). The ESSAF provides guidance on the information that is required from the due diligence including summaries of relevant legislation, summaries of the activities’ location and scope, description of the scope and magnitude of adverse impacts, and details on measures put in place to mitigate those impacts. The ESSAF will guide the implementing agencies in addressing environmental and social impacts during implementation.

44. Social Issues. The Project will restore and improve access to communities and relocation areas. Overall, the impacts are expected to be positive, as access to critical infrastructure (e.g. schools, hospitals, markets) will be restored and improved bringing better development outcomes to affected communities.

45. To ensure compliance with the Bank’s social safeguards policies, before disbursements are made for the retroactively financed activities, the Bank will review written reports, to be provided by the GOS, addressing social safeguards issues relating to these activities. Disbursements will be made only when the Bank’s social specialists confirm that social safeguards issues were properly addressed.

46. For contracts for works to be financed under the Project and for which Request for Proposals will be issued following Board approval, a Social Assessment will be conducted early in the implementation period in an effort to (i) increase awareness of the Project, (ii) identify relevant social issues that may arise from the Project, (iii) discuss potential impacts of the Project with the community (and mitigation measures), (iv) identify and recommend actions that will mitigate negative impacts and/or maximize positive impacts either on the general population or on specific groups, and (v) solicit input from community members into the Project design, in particular the alignments of the Samusu-Lalomanu road and the dual-purpose pedestrian access routes.

47. The preparation of the social assessment and the consultations will be broad based and representative, paying particular attention to the input and experiences of women, the youth, and other potential vulnerable groups. Any relevant actionable inputs will strengthen the Project design, including the Land Acquisition and Resettlement Action Plan (LARAP), and the ESSAF.

48. OP 4.12 is triggered as Components 3 and 4 may require involuntary land acquisitions and/or resettlement. The Project aims to minimize involuntary land acquisition and/or resettlement, in part by involving communities in the design of the route alignments. In addition, a Land Acquisition and Resettlement Framework (LARF) has been prepared. The Project has adopted a framework approach because the alignment of the relevant sub-projects under Component 3 and 4 will not be known prior to Project approval.

49. The LARF provides guidelines for temporary and permanent land acquisition, resettlement (if necessary), and compensation for loss of crops and economic trees. The LARF provides principles for land use which include the avoidance and minimization of involuntary resettlement, land acquisition, and damage to physical assets. It also details procedures on institutional roles and financial responsibilities. The LARF provides guidelines for the preparation of Land Acquisition and Resettlement Action Plans once the specific route alignments of sub-projects are known.

50. Component 2 is financing the updating of Coastal Infrastructure Management Plans. The Component will include close consultation with affected communities as an integral part of the process of updating the district Coastal Infrastructure Management Plans.

E. Implementation Arrangements and Financing Plan

Institutional Arrangements

51. Implementation Agencies. The implementing agencies (IA) for the proposed Credit are LTA (Components 1, 3, 4) and MNRE (Component 2), while the MoF will handle overall Project coordination.

52. MNRE is responsible for the sustainable development and management of Samoa’s natural resources and environment. It is an implementing agency for the ongoing SIAM-2 project and was an IA for the CERP project. LTA is a statutory authority with responsibility for road use management (vehicle registration, driver licensing, traffic management); road safety programs; and road asset management (construction, maintenance). It was formed in 2008 as part of Government reform initiatives that consolidated road use and road asset management functions from agencies into LTA. In particular, this involved transferring road asset management functions, staff and systems along with experience with Bank safeguard policies and financial management and procurement procedures from MWTI to LTA. LTA builds on the established track record of MWTI in implementation of road construction and maintenance projects, including works under the ongoing Bank-financed SIAM-2 project and recent

CERP project. As a result of the reforms, LTA has assumed effective management of several ongoing road projects under SIAM-2.

53. Project Management. The Project will be managed by a Project Management Team (PMT) and a Project Steering Committee. The PMT will be responsible for the day-to-day management, monitoring, and coordination of the Project activities. It will report to the Project Steering Committee, providing updates on progress in Project implementation. To leverage the existing project management facilities and experience, the PMT will work in coordination with the SIAM-2 Project Management Unit (PMU). Component 5 will support contracted consultant services for the PMU, and staffing plus operating costs for in-house project management, administration, and monitoring and evaluation activities by LTA and MNRE.

54. The Project Steering Committee will provide general oversight and policy direction during Project implementation and review progress and the results of periodic monitoring and evaluation (M&E) activities. The ongoing SIAM-2 project (which also involves roads sector activities) has an established Steering Committee that comprises representatives of MOF, Attorney-General, MWTI, MNRE and NGO; plus established processes for progress reporting and review. To streamline Project oversight across the sector, this Steering Committee will extend its scope to also provide oversight and guidance for this Project, and to facilitate implementation coordination, it will be expanded to include representatives from Samoa Water Authority and the Electric Power Corporation. Further details of institutional arrangements are provided in Annex 6.

55. Coordination in Implementation. This Project is part of a multi-sector reconstruction and recovery effort that also includes reinstatement of power, water, telecommunications and other services in affected areas, and providing access and services to relocation areas. Coordination therefore will be required with a range of public partner agencies during the infrastructure planning, design and construction phases. In particular, the Project will rely on cooperation with key Project partners including MWTI, Samoa Water Authority, Electric Power Corporation, SamoaTel, and others. Coordination will be managed in several ways, including regular meetings with all partner agencies at key stages of the implementation, and expansion of the Project Steering Committee to include representatives from Samoa Water Authority and the Electric Power Corporation, as described above.

Project Costs and Bank Financing

56. The estimated Project costs and Bank financing are detailed in Table 1. The costs of item 3.3 concerning land acquisition that may be needed will be determined during Project implementation. GOS will provide counterpart funds, as may be necessary, to fully cover any costs beyond the amounts allocated under the Project for this subcomponent.

Financial Management and Disbursement Arrangements

57. The financial management arrangements of the proposed Credit and PRIF Grant will use the established systems currently in place for SIAM-2. The PMT will be responsible for the day-to-day overall Project financial management activities and will manage the Project’s Special Account (SA). At a central level, the MOF will open one SA denominated in US Dollar currency for receiving funds from the Bank, and will set up a separate Project Account (GPA 99) for this ERC which will be treated as a Bank Account, instead of opening another account for the Project in a commercial bank. Any payments will be up to US$4 million equivalent under the Credit and up to US$0.7 million of the PRIF Grant, will be provided in accordance with the Procurement Guidelines and subject to the Bank’s satisfactory review of compliance with applicable environmental and social safeguards policies (see safeguards section above).

Procurement Arrangements

58. The procurement arrangements of the proposed Credit will use the established processes and procedures currently in place for SIAM-2. Under the guidance of the PMU, the implementing agencies will be responsible for procurement of their respective components, including preparation of bidding documents, evaluation and contract award, inspection and certification of completion of works, and management of contracts.

Table 1. Project Costs

Total IDA Financing PRIF Financing Government Project Cost by Component/Activitiy (US$) (US$) (US$) (US$) Component 1: Existing access road upgrading 1.1 Lepa - Lalomanu link road 1.10 1.10 1.2 Access roads upgrading (about 20 km) 2.79 2.10 0.69 1.3 Sea wall repair and reconstruction (about 6 km) 1.60 1.60 1.4 Salani Bailey Bridge repair 0.04 0.04 1.5 Technical assistance (drainage design for 1.1) 0.06 0.06 Component 2: Community Risk Management Plans 2.1 High resolution imagery 0.10 0.10 2.2 Update Coastal Infrastructure Management (CIM) plans 0.10 0.10 Component 3: East coast inland route (Samusu – Lalomanu) 3.1 Route alignment, design & supervision 0.50 0.50 3.2 EIA 0.10 0.10 3.3 Land Acquisition/Compensation * TBD TBD TBD 3.4 Road construction works 4.00 4.00 Component 4: Dual-purpose pedestrian access routes 4.1 Feasibility and design of accesses 0.10 0.10 4.2 Construction of accesses 0.50 0.50 Component 5: Project Management 5.1 Project Management 0.23 0.23 5.2 Monitoring & Evaluation 0.07 0.07

Unallocated 0.50 0.50 Total Project Costs 11.79 10.00 1.79

* GOS will provide counterpart funds, as may be necessary, to fully cover any costs beyond the amounts allocated under the project for this subcomponent.

59. MNRE is an Implementing Agency (IA) for the ongoing SIAM-2 project and was an IA for the CERP project. It has established processes and experience with Bank procurement procedures. Procurement is one of the core functions of LTA and it has established processes and experienced staff transferred to LTA from MWTI as part of overall sector reforms. The LTA organizational structure includes a Procurement and Programming Division with Procurement Manager and staff whose core function is contracting and contract supervision. This has ensured continuity of a strong procurement and 12 contract management capacity, and familiarity with Bank guidelines. This capability was originally developed under the Bank-supported IAMP and CERP programs, through on-the-job training and TA in works procurement and contract management. Further support for procurement and compliance with Bank procedures will be provided under the Project Management component (for further details on procurement, see Annex 5).

Monitoring and Evaluation

60. Project Monitoring and Evaluation will be on two levels. Periodic Project monitoring will involve quarterly reports that track progress in terms of distribution of inputs; disbursement of funds; and achievement of targeted indicators as outlined in the Results Framework in Annex 2. Project evaluation will measure outcomes achieved against a Project baseline. The key instrument for Project evaluation will be before-and-after analysis undertaken by specialist consultants under Component 6.2. This will have two core elements:

(a) Socio-economic surveys – the Project design includes before-and-after surveys of residents in the immediate vicinity of the upgraded access routes. These surveys will set a baseline (before) and gauge the impact of the Project on key socio-economic indicators (after).

(b) Analysis of network performance – the M&E framework will also track several key accessibility metrics. These metrics will be finalized as an early output from the consultancy but are expected to include measures such as walking distance to a bus route; time/distance to schools, shops, etc; network vulnerability indicators; and network performance under normal and degraded network conditions, such as may happen in the aftermath of a cyclone or tsunami.

61. The PMU will be responsible for the overall management and implementation of the Monitoring Framework. This will include providing timely monitoring reports with operational data, and managing the before-and-after analysis.

62. The Bank will conduct semiannual supervision missions to ensure adequate supervision.

Closing Date

63. The closing date for the proposed Credit is April 30, 2013.

F. Project Risks and Mitigating Measures

64. Table 2 presents the main risk factors identified and the proposed mitigation measures.

Table 2. Risk factors and Mitigating Measures

Risk factors Description of risk Rating Mitigation measures Rating of of risk residual risk Procurement LTA has many ongoing Additional project management and procurement activities for SIAM- procurement support has been provided in

2 and its self-funded operations. Component 5. S M This could be a source of potential delays. Institutional LTA will be implementing two Additional Project management support has Bank Projects plus its been provided in Component 6. Also

contracting works from its own component 2 will provide technical

budget. There is a risk of a lack S assistance for specialized engineering related M of institutional capacity to be to drainage and flood management. able to manage all Projects. Supply-side Reconstruction work may come Contracts will be packaged in such a way so on-line at the same time as as to attract both smaller and larger SIAM-2 and other works, contractors. Implementation will be causing a shortage both of M scheduled over about two years. L contractor capacity and raw materials. Financial Cost and time over-runs Project will employ competitive procurement M using standard bidding documents and L increased ex post supervision Land Land acquisition or Samoa has well developed procedures compensation, if required, may following the SIAM-2 project and will apply pose a risk of delays and cost a Land Acquisition and Resettlement increases Framework; additionally updates of the Community Infrastructure Plans will include S widespread consultation and community M decisions on the management of communal land. GOS will provide counterpart funds, as may be necessary, to fully cover any costs beyond the amounts allocated under the Project for land compensation. Social Outcomes diluted by population The recovery plans provision of services to drift back to the coast the relocated areas and for community information. The Project management unit will ensure effective coordination with these S services and communication. Additionally M the improved access to resettled areas will facilitate livelihood activities such as farming which will mitigate the risk of populations returning to the coast. Coordination Outcomes diluted by lack of The Ministry of Finance and the Project coordination among utilities Steering Committee will coordinate the M L activities amongst utilities according to the tsunami emergency recovery plan. Overall Project Risk S M

G. Terms and Conditions for Project Financing

65. The proposed Project will be an IDA operation through a Credit of SDR 6.63 million (US$10 million equivalent) with a total maturity of 40 years including a 10 years grace period.

66. The PRIF funds are provided on grant basis.

67. There are two conditions of effectiveness for this Credit: (i) execution and delivery of the subsidiary agreement between the MoF and LTA for the transfer to LTA, on a grant basis, of the proceeds of both the Credit and the PRIF Grant; and (ii) execution and effectiveness of the PRIF Grant Agreement. Both of these are expected to be met at, or shortly following, the date of signature of the Legal Agreements.

68. To ensure compliance with the Bank’s environmental and social safeguards policies regarding activities to be retroactively financed under Component 1 of the Project, a condition of disbursement is applicable. The GOS and LTA will provide to the Bank for its review and approval relevant documentation, as described in paragraphs 42 and 45 of the Safeguards section above, before funds are disbursed to retroactively finance those activities.

69. Finally, to ensure adequate human resources for the implementation of the Project, there are disbursement conditions relating to: (i) the composition and responsibilities of the Program Steering Committee; and (ii) the appointment of (a) the Project Management Unit; and (b) Project Managers in LTA and MNRE. These conditions are expected to be met within a month of Project effectiveness.

Annex 1: Detailed Description of Project Components

SAMOA: Samoa Post Tsunami Reconstruction

1. The proposed Credit and PRIF Grant incorporate five Project components:

Component 1. Upgrading of existing access tracks and seawalls – US$5.6 million

(a) Lepa/Lalomanu road – US$1.1 million. This sub-component will provide retroactive financing for upgrading by LTA of an agricultural access road to national road standards that will provide an alternative route along the south coast between Lepa and Lalomanu. The road will follow the route of an existing track, and the works will incorporate construction of gravel sub-base, base course and a 6m wide bitumen surface, with longitudinal and cross drainage. Bid documents were prepared by LTA dividing the work into two equal packages so that work can progress from both ends concurrently. Construction commenced in May 2010 with completion of both packages expected by December 2010.

(b) Upgrading of short length access tracks – US$2.8 million. To provide improved access to facilitate the process of house reconstruction inland, LTA has responded to requests from village mayors to upgrade existing tracks from the east and south coast roads by prioritizing the construction of 2km long bitumen surfaced secondary or tertiary roads. This sub-component will provide retroactive financing for the construction of these roads. All works will be packaged into contracts to be procured through an open competitive bid process.

(c) Sea wall repair and reconstruction – US$1.6 million. The east and south coast roads are in places adjacent to the shore and rely on protection against erosion and wave damage by sea walls, which were damaged or destroyed in the tsunami. LTA is planning to repair existing seawalls along critical lengths of these and two other coastal roads. This sub-component will provide retroactive financing for the construction of these roads. All works will be packaged into contracts to be procured through an open competitive bid process.

(d) Salani Bailey Bridge repair – US$0.04 million. The Salani Bailey Bridge connects neighboring villages and is a key link in the coastal road. The alternative route involves a long detour. The abutments of the Salani Bailey Bridge were damaged in the tsunami. This sub-component will provide retroactive financing for repair of the bridge.

(e) Technical assistance – US$ 0.06 million. The scope of works contained in the bid documents prepared by LTA for Component 2 implementation is in all cases based on typical cross-sections, which determine the quantity of road construction and drainage works. Given the extremely high annual rainfall (approximately 4m) and intensity of storms experienced in the area, it is proposed that the longitudinal and cross drainage to be provided should be the subject of careful analysis and design to avoid the risk of flooding, erosion and potentially serious damage to the asset or the surrounding environment. This sub-component will finance the provision of technical assistance through the short-term input of an experienced Drainage Design Engineer to undertake storm-water drainage design along all the routes to be upgraded to determine locations, hydraulic capacity, inlet and outlet details of culverts, for inclusion in bid documents and works contracts.

Component 2. Community Coastal Infrastructure Management plans – US$0.2 million. This component will provide procure high resolution imagery of the affected and relocation areas, and update the Coastal

Infrastructure Management (CIM) Plans for these areas to assist with infrastructure planning and monitoring, and disaster risk reduction.

(a) Baseline Mapping of Affected Areas – US$0.1 million. This sub-component will acquire satellite imagery and GPS equipment for baseline maps in support of the recovery planning activities and as inputs for the community CIM plan updates (sub-component b). The acquisitions include: (i) high resolution optical scenes of the resettled areas dated after the tsunami event; (ii) moderate to high resolution optical or radar scenes for eastern Upolu and interior; and (iii) handheld GPS units. The high resolution imagery will be used to delineate building footprints, for planning of the new communities and as an up-to-date base layer for the CIM plans. The GPS units will help the Planning and Urban Management Authority (PUMA) within MNRE to geo-reference new structures being built in the resettled areas. The moderate resolution imagery or radar will also serve as input to the CIM plans and support broader resource and hazard identification.

(b) Update Coastal Infrastructure Management (CIM) plans – US$0.1 million. This sub-component will finance consulting services to support the consultation and updating of district Coastal Infrastructure Management plans. These CIM plans were originally developed for the affected communities in 2005 and have since been expanded by the GOS to cover the entire country and no longer restricted to coastal areas only. Due to the highly participatory nature of plan development with communities, and the inclusion in the plans for natural hazards and risk mitigation options, the CIM plans have often been used as the basis for developing community disaster risk management plans or climate adaptation strategies at local level. This component will ensure that the CIMs are updated in close consultation with affected communities and coordination with the DMO risk awareness programme for affected communities. In so doing, the CIM plans are expected to also provide the communities and DMO with the basis for community risk management plans including contingency and preparedness actions.

Component 3. East Coast Inland Route (Samusu – Lalomanu) – US$4.6 million. A new inland main road is proposed to a) improve access to and for communities relocating inland from the east coast, and b) provide a secure transport link between Samusu and Lalomanu. The need for such a road has been highlighted in the CIM plans of this region, but the relocation inland resulting from the tsunami has increased the urgency for its implementation.

(a) Route alignment study, design & supervision – US$0.5 million. This sub-component will finance the consulting services to undertake the route alignment study, detailed design and construction supervision of a new inland road. (b) EIA of link road – US$0.1 million. This sub-component will finance a comprehensive environmental impact assessment of the proposed Samusu – Lalomanu link road.

(c) Compensation cost – To be determined. This is to cover possible compensation cost associated with land acquisition or compensation along the route. GOS will provide counterpart funds, as may be necessary, to fully cover any costs beyond the amounts allocated under the Project for this subcomponent.

(d) Road construction – US$4.0 million. This sub-component will finance the road construction works contracts.

Component 4. Dual-purpose pedestrian access routes – US$0.6 million. A near-vertical 100m high escarpment behind the narrow coastal plain between Lepa and Matautu (near Lalomanu) on the south coast, forms a physical barrier to access between the coast and inland areas for a continuous 10km section of the south coast. Following the tsunami and the relocation inland of a large proportion of the coastal

17 population, there is a need to provide new and improved pedestrian access routes up the escarpment at regular intervals, both to facilitate access for resettled families between their new homes and the coast, and to serve as evacuation routes in the event of a tsunami or cyclone.

(a) Feasibility, design and supervision of pedestrian accesses – US$0.1 million. This sub-component will finance the investigation and design of a number of feasible pedestrian routes, and construction supervision.

(b) Construction of pedestrian access improvements – US$0.5 million. This sub-component will finance the construction of footpaths and stairways identified in the feasibility study to provide access and emergency evacuation routes for pedestrians in coastal areas where the existing topography does not permit road construction.

Component 5. Project Management and Support – US$0.3 million. This Project will be implemented in parallel with the ongoing SIAM-2 project and with contracted road maintenance and upgrading works self-funded by GOS. This has the potential to stretch the procurement and project management resources of LTA. This component will support contracted consultant services, and staffing plus operating costs for in-house project management, administration, and monitoring and evaluation activities by LTA and MNRE.

(a) Project Management – US$0.23 million. The sub-component provides support for in-house project management, administration, and monitoring activities by LTA and MNRE.

(b) Monitoring & Evaluation – US$0.07 million. This sub-component will support specialist technical assistance to establish the Project evaluation framework and conduct before-and-after analysis of the impact of the Project on access to relocation areas and road network performance and resilience in the south-east corner of Upolu.

Given the emergency preparation of the above activities, there are uncertainties regarding the final design and costs of the above components. The Project will therefore include an amount of unallocated funds of US$0.50 million to cover contingencies and currently unforeseen needs.

Annex 2: Results Framework and Monitoring

SAMOA: Samoa Post Tsunami Reconstruction

Project Development Objective Project Outcome Indicators Use of Outcome Information To assist the GOS in its efforts to . Restored road access to . To inform the GOS on the support the relocation and communities affected by the progress of rehabilitation rehabilitation of communities September 29, 2009 tsunami and reconstruction efforts living in the island of Upolu . Improved road and pedestrian . To inform GOS planning affected by the tsunami of access to relocation areas for tsunami recovery and September 29, 2009, through the . More resilient road network, that disaster preparedness provision of improved provides continued access to . To adapt and update risk infrastructure access to relocation populated areas during and after mitigation and response sites; enhanced transport natural disasters plans infrastructure, and assistance to . Improved planning through local communities to address updated CIM plans and future natural disasters. improved base and hazard mapping

Intermediate Outcomes Intermediate Outcomes Use of Intermediate One per Component Indicators Outcome Monitoring

Component 1: Upgrading of . To plan and coordinate the existing access tracks and provision of infrastructure seawalls and services effort to relocation areas . Improved access to relocation . 20 km of existing access roads areas by upgrading and sealing upgrade and sealed of existing access roads . 12 kms of Lepa - Lalomanu link road upgraded and sealed . % of relocated houses with improved transport access to social/educational/ commercial opportunities

. Restored protection of coastal . 9 km of existing seawalls roads and communities by repaired repair and reconstruction of seawalls

. Reinstatement of access . Salani Bailey Bridge repaired between coastal communities

Component 2: Community Coastal Infrastructure Management Plans

. Baseline information on . New structures in relocated . To support planning of relocated areas communities geo-referenced for services for relocated use in maps communities

. Community Infrastructure and . District CIM plans updated and . To support infrastructure Risk Management plans published and community resilience established . Community consultation on risk awareness performed

Component 3: East Coast Inland Route (Samusu- Lalomanu)

. Alternative east coast road link . Feasible route identified and . To plan and coordinate the outside the cyclone and road designed provision of infrastructure tsunami risk area . Samusu - Lalomanu link road and services effort to constructed (around 5km) relocation areas . compliance with EMP . To inform GOS strategy for road network development

Component 4: Dual-purpose pedestrian access improvements

. Improved pedestrian links to . Feasible pedestrian links . To plan and coordinate the relocation areas and escape identified and designed provision of infrastructure and routes . Feasible access pathways services effort to relocation constructed areas . To inform GOS on options for development of improved pedestrian access

Component 5: Project Management

. Effective implementation and . Satisfactory Quarterly progress . To track Project progress supervision of Project reports against work plan and and identify actions and components budget delivered measures to facilitate Project delivery.

. Assessment of quantitative . Before-and after study of . To monitor the and qualitative impact of the relocated communities effectiveness of the Project Project . Accessibility indicators in meeting GOS and (time/distance to services, bus development objectives routes, etc) under normal conditions and under degraded network performance, such as may happen in the aftermath of a cyclone or tsunami

Arrangements for results monitoring

Target Values Data Collection and Reporting Project Development Objective Baseline YR1 YR2 YR3 Frequency Data Responsibility and Reports Collection for Data Instruments Collection Restored road access to communities affected by the 0 100% 100% 100% Semi-annual LTA LTA September 29, 2009 tsunami

Improved road and pedestrian 0% 40% 80% 100% Semi-annual LTA LTA access to relocation areas More resilient road network, that provides continued access to NA 100% 100% 100% Semi-annual LTA LTA populated areas during and after natural disasters Intermediate Outcome Baseline YR1 YR2 YR3 Frequency Data Responsibility Indicators and Reports Collection for Data Instruments Collection Access restored for and emergency response and clean-up 0% 100% 100% 100% Annual LTA LTA activities Coastal protection repaired prior NA 100% 100% 100% Semi-annual LTA LTA to next cyclone season 20 km of existing access roads 0% 100% 100% 100% Annual LTA LTA upgrade and sealed 10 km of Lepa - Lalomanu link NA 50% 100% 100% Semi-annual LTA LTA road upgraded and sealed % of relocated houses with improved transport access to Beneficiary 0% 50% 80% 100% Annual LTA social/educational/commercial survey opportunities 9 km of existing seawalls repaired 0% 50% 80% 100% Semi-annual LTA LTA Salani Bailey Bridge repaired NA 0% 100% 100% Annual LTA LTA New structures in relocated communities geo-referenced for NA 100% 100% 100% Annual MNRE MNRE use in maps District CIM plans updated and NA 100% 100% 100% Annual MNRE MNRE published

Community consultation on risk NA 100% 100% 100% Annual MNRE MNRE awareness performed Feasible route identified and road NA 50% 100% 100% Annual LTA LTA designed Samusu - Lalomanu link road NA 0% 50% 100% Annual LTA LTA constructed (around 5 km) 100% compliance with EMP NA Yes Yes Yes Annual LTA LTA Feasible pedestrian links NA 0% 50% 100% Annual LTA LTA identified and designed Feasible access pathways NA 0% 50% 100% LTA LTA constructed Quarterly progress reports against NA 100% 100% 100% Quarterly LTA LTA work plan and budget Before-and after study of Beneficiary NA 50% 50% 100% Annual LTA relocated communities survey Accessibility indicators (time/distance to services, bus routes, etc) under normal Beneficiary conditions and under degraded NA 50% 50% 100% Annual LTA survey network performance, such as may happen in the aftermath of a cyclone or tsunami

Annex 3: Summary of Estimated Project Costs SAMOA: Samoa Post Tsunami Reconstruction

Unallocated 0.50 0.50 Total Project Costs 11.79 10.00 1.79

* GOS will provide counterpart funds, as may be necessary, to fully cover any costs beyond the amounts allocated under the project for this subcomponent.

23 Annex 4: Financial Management and Disbursement Arrangements SAMOA: Samoa Post Tsunami Reconstruction

A. General

1. This annex summarizes the assessment of financial management arrangements in place for the proposed Government of Samoa Post Tsunami Reconstruction Project. The scope of the assessment is set out in the “Financial Management Practices in World Bank-Financed Investment Operations” issued by the Financial Management Sector Board on November 3, 2005. Under the Bank’s OP/BP 10.02 with respect to Projects financed by the Bank, the borrower and the Project implementing agencies are required to maintain financial management systems -- including accounting, financial reporting, and auditing systems -- adequate to ensure that they can provide the Bank with accurate and timely information regarding Project resources and expenditures. These arrangements are deemed acceptable if they are capable of correctly and completely recording all transactions and balances relating to the Project. In addition, such arrangements are acceptable if they can facilitate the preparation of regular, timely and reliable financial statements and safeguard the Projects assets; and are subject to auditing arrangements acceptable to the World Bank. The financial management arrangements have been assessed as adequate.

2. The Financial Management arrangements for this Project will be primarily the same as arrangements currently in place and operating satisfactorily for the SIAM-2 project. Assuming the same PMU is employed to maintain the financial management arrangements as currently exist in SIAM-2, the overall FM risk for this Project is Low based on the capacity of the PMU and the quality of the FM work produced throughout the SIAM project.

3. Country Background. The government has an excellent record in the financial management of donor Projects and has created an Aid Coordination Unit within the MOF to oversee the government’s roles and responsibilities relating to donor funds.

4. While there is always a risk foreign currency funds can be diverted temporarily to meet the country’s short-term needs, this is deemed to be a low risk in Samoa.

5. The table below gives details of the financial management risk assessment for the Program including any mitigating measures proposed or already put into place:

Risk Risk Rating Risk Mitigation Measures Risk after Mitigation (H,S,M,L) Incorporated into Project Condition of Negotiation, Design Board or Effectiveness

1. Country Level

1.1 Country Public Financial Management Modest GOS has an Aid Coordination Unit Low Systems within the Ministry of Finance (MOF) which specializes in The Government of Samoa (GOS) has had managing donor funding. extensive experience in managing World Bank (WB) projects.

2.1 Entity Level Substantial The FM requirements for this Modest project (account keeping, There are two implementing agencies, the preparation of financial reports) Ministry of Natural Resources and will be contracted out to a private Environment (MNRE) and the Land company. This agency will work Transport Authority. (LTA) MNRE have with the MOF Aid Coordination experience in implementing World Bank Unit to ensure all FM aspects of the projects but limited experience in the FM project are completed. aspects of the project management. LTA is a Public Beneficial Body established on December 1 2008. The body was formed from Ministry of Works and has experience on the technical side of the implementation of the SIAM project

3. Project Level

3.1 Project Size Approximately IDA Credit of Modest Accounts will be retained by the Low approximately USD 9 million. There will contracted agency. be additional co-financing of AUD2 million. The GoS will also provide USD4 million. The proposed closing date of the project is December 30 2012.

3.2 Program Complexity Substantial A review will be required of the Modest There are 6 components including documentation for the initial component 1 which requires retroactive emergency works to determine the financing. There is a risk the adequacy of the documentation. documentation relating to the retroactive financing may be inadequate.

Modest OVERALL INHERENT RISK Modest

25 CONTROL RISK

1 Funds Flow Modest Funds will flow through a special Low purpose account managed by the The MOF has experience in operating WB MOF. projects using similar funds flow processes. The MOF has a discrete division (Aid Coordination Unit) to manage donor funding. The flow of funds into the project may lead to an accumulation of funds in the Special Purpose Account if there are delays in the program implementation.

2 Budgeting The GOS budget includes information on Modest All expenditure will be generated Modest off-budget government expenditure financed through the contracted agency. by donors.

3 Accounting

3.1 Capacity of Program Management and Substantial On selection of the agency, provide Modest FM Staff FM advice to the accounting staff on the World Bank requirements. SIAM projects are currently contracted to a private engineering company that has expertise both in the infrastructure requirements of the project and a strong The Aid Coordination Unit within accounting division. Currently the agency the Ministry of Finance can also has not been selected so there is a risk that provide advice on the FM the capacity of the FM may be limited. requirements.

3.2 Accounting Systems Modest Monthly reconciliations will be Low required between the contracting As with the SIAM project documentation agency and the MoF records. will be prepared by the contracted agency but will be authorized by the GoS. Regular FMS supervision missions to ensure reconciliations are carried There is a risk of delays in payments and the out and are accurate. records of the contracted agency not agreeing to the MoF records for the project.

4 Financial Reporting Substantial Modest Reporting, will be by component, and Quarterly financial reports will be category, as in the SIAM project, however required in a format to be agreed. reports will be kept separate to the SIAM project even if the same contracting agency FM supervisions will include a is employed. review of the financial system used to record the financial information. As SIAM funds were kept on spreadsheets there is always the risk of corrupted data and Funds will require to be discrete incorrect data through overriding of from previous SIAM funds. formulas.

26 5 Internal Controls Similar arrangements will be put into place Modest Regular FMS supervision missions Modest as the SIAM project where no material to review project internal controls. internal control issues have arisen. The GOS accounting processes ensure authorization and payment processes are clearly segregated. All payments are prepared by the contracted agency, authorized separately at the payment stage then the MOF.

6 Auditing Low Low Program funds will be subject to annual FMS will remind the contracting financial audits. This will be carried GOS agency of the requirement for the Audit Office who is an acceptable audit to audit to be completed at least 3 the Bank. months before the audit date due. The audit will be standalone and not include SIAM funds, implementing agency or contracting agency funds or any government cofinacing of the project. The major risk is audits not been completed within the agreed timeframe.

CONTROL RISK Modest Modest

OVERALL RISK RATING Modest Low

6. FM Arrangements in the SIAM-2 Project. The existing arrangements in place for SIAM-2 are set out in the Legal Agreements and have been the subject of regular supervision. Four FM supervision missions occurred since November 2005 and all ratings have been satisfactory.

7. Entity Level. While the implementing agencies remain the same for this Project as for the SIAM- 2 project the FM work is primarily carried out by a contracted agency. As this agency has not yet been selected there is a risk that the FM level of expertise of the new agency may not be as strong as the contracted agency for the SIAM projects. This may lead to additional training required by the FM staff to ensure World Bank FM requirements are met.

8. Funding Sources & Funds Flow. The Program has five components: (i) upgrading of existing access tracks and seawalls; (ii) community risk plans; (iii) east coast inland route; (iv) dual purpose pedestrian routes; (v) Project management support.

9. Funds will be provided by IDA (10 million USD), AusAID through PRIF (2 million AUD) and additional counterpart funding from the Government of Samoa.

10. Disbursement and Fund Flow Arrangements. The Government of Samoa will open a new segregated designated account in USD to enable both the IDA and PRIF funds to be deposited into this account. It is intended that the IDA and PRIF funds will each fund discrete activities within the Project. A designated account will not be required for PRIF funds as the disbursement will be through reimbursement and direct payments only. Retroactive funding for amounts incurred before the Project commences will be through reimbursement. Separate Withdrawal Applications will be required for each

27 source of funding. The amount of Withdrawal Applications for the designated account will be report based on the expected cash requirements for the following six months.

11. The Project could use three disbursement methods: (a) advances into the DA; (b) direct payment; and (c) replenishment.

12. IDA funds will be initially advanced based on expected Program expenditures for the first six months and subsequently advanced based on quarterly financial reports showing projections of expenditure and evidence of the use of previously advanced funds.

13. Budgeting. The budget for the Project will be prepared by MoF based primarily on Procurement Plan which will be provided by the contracted agency. Budgets were often overstated in the SIAM projects due to delays of awarding contracts and the progress of contracts.

14. Audit. As with all Projects in Samoa the audit is undertaken by the Office of Auditor General. Financial statements have been prepared in a timely fashion and submitted for Audit within three months of the financial year end. Audit opinions have been unqualified and Management Letters have not revealed matters requiring any special IDA monitoring and follow up actions.

15. Accounting Systems. As a condition of effectiveness of SIAM-2, the borrower was required to install accounting software, acceptable to the Bank. This was done and subsequent FM supervision missions agreed with a GOS proposal to use solutions that largely rely on Excel spreadsheets for reporting purposes (reconciled to the underlying government accounting system). No changes are envisaged to the accounting and reporting systems.

16. The PMU will maintain the accounts but all payments are authorized by the MoF. The MoF will also maintain a record of the transactions and the contracted agency will be required to reconcile the MoF records to their own accounts on a monthly basis.

17. The Retroactive Funds will be recorded into the accounting system as this will be financed by the IDA funds. For this to be eligible expenditure the documentation will still be required to meet the normal standards of acceptable documentation. This will include evidence that the funds were paid to a third party, that the work was completed and approved, and that the expenditure is consistent with the Project description (emergency access restoration, repair & reconstruction of roads and sea walls).

18. Reporting and Monitoring. Reporting for this Project will be required to be separate from SIAM accounts. Hence it is recommended that a new spreadsheet is created for this purpose. Financial reports will require a breakdown by component, activity, disbursement category and should identify the source of funding IDA or PRIF for each expenditure. Reporting can be on a cash basis. Counterpart funding provided by the GoS may also be recorded in these records but this will not be required for donor reporting requirements.

19. Quarterly interim financial reports will be required to be produced in a format agreed to by the World Bank. This format will be required to be provided by the Bank before the first disbursement of Project funds. The PMU will be required to provide to the Bank quarterly interim financial reports within 45 days of the end of the reporting period. It has been agreed to harmonize the reporting requirements hence the report can be used for both IDA and PRIF reporting requirements.

28 20. While the reporting format for Samoa Post Tsunami Reconstruction Project may require some changes from the SIAM quarterly interim financial reports format it is recognized the SIAM reports are comprehensive and meet the obligations as set out in the Legal Agreements inasmuch as they: (a) present actual sources and applications of funds for the Project, both cumulatively and for the period covered by the report, and projected sources and applications of funds for the Project;

(b) describe physical progress in Project implementation, both cumulatively and for the period covered and explains variances between the actual and previously forecast implementation targets; and

(c) present the status of procurement under the Project and expenditures under contracts financed out of the proceeds of the Loan.

21. Internal control. Government Financial Management is guided by the Public Financial Management Act of 2001 in Samoa. The Finance Secretary is responsible for setting policies, practices and procedures for all financial management practices and provides any financial information required on the subject in accordance with generally accepted accounting principles and practices. As the authorization of payments is done through the MoF, and hence requires complying with government financial policies. This provides a basis for the internal controls which include segregation between the processing and payment of accounts, a comprehensive set of authorizations throughout the life of the transactions and adequate checks and balances before any payment is made.

22. External Audit. The Program financial statements will be audited under the supervision of the Audit Office (which is an independent auditor acceptable to all donor parties). Audits will be required for each fiscal year of the Program. These reports must be received by the World Bank, within 6 months of the end of the fiscal year for which the reports have been audited and include an accompanying management letter outlining matters that have arisen during the audit. This audit must be separate from the SIAM audited reports and the government counterpart funding for this Project. As the Project design is similar to the SIAM project there is no need for additional Terms of Reference for the scope of these audits.

23. The Samoa Constitution confers the responsibility of auditing public institutions to the Controller and Chief Auditor. He has been given the powers to sub contract audit of such public institutions if the Chief Auditor feels he does not have adequate capacity. The MOF will be responsible for ensuring that Program funds are audited.

24. Supervision. As the overall assessment for this Program is modest, financial management supervision will be carried out by the Bank Financial Management Specialist (FMS) at least once a year. This supervision will initially be done concurrently with the SIAM supervisions given the similarity of the FM requirements and the Project design. If there is a different contracting agency to the SIAM project an initial supervision will be required before disbursement to outline the Bank FM and disbursement procedures and to prepare the Interim Financial Reports format. The FMS will also review the annual audit reports and management letters from the external auditors and follow-up on material accountability issues by engaging with the TTL, Client, and/or auditors.

29 25. Financial management Supervision Plan

FM activity Frequency Desk reviews Interim financial reports review (IFRs) Quarterly Project audit report review Annually On site visits Annually, based on the modest Review of overall operation of the FM system risk rating Monitoring of actions taken on issues highlighted in audit reports, auditors’ management letters, systems audit report, and other reviews As needed Can be done as needed in case Transaction reviews (if needed) of any issue arising Capacity-building support FM training sessions with finance staff from MNRE and Before Project start and LTA thereafter as needed

26. Financial Management Action Plan. The action plan below indicates the actions to be taken for the Project to strengthen its financial management system and the stage at which they must be completed.

Action plan to strengthen Financial Management

Action Date due by Responsible GoS, Contracted Agree on the formats of unaudited IFRs agency & Bank FM 1 that will be used for the project. Negotiations specialist

30 Annex 5: Procurement Arrangements SAMOA: Samoa Post Tsunami Reconstruction

A. General

1. Procurement for the proposed Project would be carried out in accordance with the World Bank’s “Guidelines: Procurement Under IBRD Loans and IDA Credits” dated May 2004, revised October 2006 and May 2010, and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers” dated May 2004, revised October 2006 and May 2010, as well as the provisions stipulated in the Financing Agreement. The general descriptions of various items under different expenditure category are described below. For each contract to be financed by the Credit and PRIF, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank Project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual Project implementation needs and improvements in institutional capacity. Procurement follows the streamlined procedures envisaged for Emergency Response Operations processed under OP 8.00.

2. Procurement of Works: Civil Works procured under this Project include: several km of road upgrades, bridge repairs, re-building of sea walls (Component 1); and construction of pedestrian escape and access routes to connect with the interior of the island (Component 4). In addition the Project will finance the construction of the new connection road from Samusu to Lalomanu (Component 3).

3. There are several contracts for civil works which have already been awarded (Sub-components 1.1, 1.2 1.4) and the Bank reviewed during appraisal for compliance with WB procedures and determined that they may be eligible for retroactive financing.

4. International Competitive Bidding (ICB): method will be used for the construction of a new main road from Samusu to Lalomanu (about 5 km and located away from the coast), with a preliminary cost estimate of about US$4 million; detailed costing will be provided as part of the design/engineering contract. This contract is not considered for retroactive financing.

5. National Competitive Bidding (NCB): In line with the simplified procurement procedures, contracts with values up to US$ 1 million equivalent may be procured under NCB, following the provisions for NCB, as stated in the Samoa Operational Procurement Review (Annex 2), dated May 2006. Due to emergency needs, accelerated bid times for NCB procedures were followed for the Lepa- Lalomanu road Package 1, which has been awarded and signed for an amount of SAT 1.14m (US$ 462,000). Bid preparation may be set at no less of 10 days from invitation or issuing of documents, whichever is the latest in accordance with OP/BP 8.00.

6. Shopping: Works contracts for road upgrades and sea walls construction will be procured by requesting quotations and comparison of at least 3 proposals from qualified contractors in response to an invitation that includes scope of work, drawings, specifications and all related documentation. Contracts to up to US$1,000,000 may be procured under the shopping method (OP 8.00).

7. Access Roads. Contracts awarded, signed and commencement of construction procured under the shopping method (Request for Quotations).

31 Access Road Successful Bidder Bid Price- Samoa US $ equivalent Tala Utufaalalafa/Saleaumua Lucky Construction 1,276,638.00 US$ 514,773 Malaela/Satitoa Ulia Construction 1,385,106.00 US$ 559.510 Mutiaele/Ulutogia Ott Transport 1,102,436.00 US$ 444.530 Vailoa/Lalomanu King Construction 919,471.00 US$ 370,374 Lepa-Lalomanu Package 2 Silva Transport Ltd 1,486,817 US$552,720 Total 4,683,651.00 US$ 1,188,568

8. Direct Contracting: May be used to carry out emergency works which may need to be completed before the rainy season and bridge repairs.

9. Procurement of Goods: Goods procured under this Project would include mainly construction material as gravel to fill potholes, fencing and signage to alert route changes/ temporary detours. Contracts for goods under ICB are not envisioned. Procurement methods for goods under the Project will consist of shopping and direct contracting. One contract under direct contracting for gravel from the closest quarry has been identified for retroactive financing for a value under US$75,000.

10. Procurement of non-consulting services: Services needed for aerial photography/High Resolution Imagery of the affected areas by the tsunami, will be procured through shopping or direct contracting depending on availability of qualified companies.

11. Selection of Consultants: Technical assistance by firms and individuals will consist of road engineering and drainage design, Coastal Infrastructure Mapping Plan update, route alignment, pedestrian access design, monitoring and evaluation, an Environmental Impact study, as well as project management, including procurement and financial management expertise, and any required audit reports as well as construction supervision. Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

12. Quality Cost Based Selection: (QCBS) This method will be followed for the engineering design of the Samusu-Lalomanu road.

13. Least Cost Selection: (LCS) may be used for any required Project audits, but are not expected at present as the Auditor General will be responsible for Project audits.

14. Selection Based on Consultant’s Qualification: Assignments for a contract value of less than US$200,000, for Environmental Impact Assessment, Monitoring and Evaluation as well as pedestrian access routes design, may be selected under the Consultants Qualification method.

15. Single Source Selection: May be followed for assignments related to the emergency reconstruction, for instance to expedite the drainage/engineering design for emergency works. In addition, assignments that are the continuation of SIAM-2 project management who are already familiar with processes and procedures of IDA will be considered for an efficient response for the emergency reconstruction. Sole source contracts will require prior review of the Association.

16. Individual Consultants: Such contracts will consist of individual consultants providing technical assistance required to support Project implementation, as well as technical expertise to assist the

32 implementing agencies. Individual consultants should be selected through the comparison of at least three curriculum vitae that meet the requirements of the Terms of Reference as well as the qualifications and minimum years of experience. For emergency assignments sole source of individual consultant may be considered.

17. Training: All costs associated with training for the implementing agencies will be financed by the Credit. A training plan should be submitted to the Association for its review and concurrence.

18. Operational Costs: Incremental expenditures for the Project related to the operations of LTA and MNRE, based on annual budgets acceptable to the Association, will be financed under the Project, including: (i) maintenance and operation of equipment and vehicles procured or used for the management of the Project; (ii) salaries paid to staff hired for the purposes of the Project, other than the Recipient’s civil servants’ salaries and honoraria; (iii) travel costs and per diems; (iv) consumable office supplies; (v) communication, printing and publications; (vi) bank charges; and (vii) other miscellaneous costs as may be agreed with the Association from time to time.

B. Assessment of the agency’s capacity to implement procurement

19. Responsibility for overall Project execution will be with the Ministry of Finance, similarly to the arrangements for the previous Projects, SIAM-2 and the Additional Financing dated August, 13, 2007. The Land Transport Authority (LTA) has been supported under SIAM-2 to manage the roads components. LTA is headed by a Chief Executive Officer, who is competitively selected for a period of 3 years. LTA consists of 6 divisions, and the Procurement and Programming Unit is tasked with planning, procurement, in-house design and estimating. The unit has 8 staff, and is headed by a newly appointed manager.

20. An assessment of the capacity of the Implementing Agency to implement procurement actions for the Project has been carried out on April 15, 2010. The assessment reviewed the organizational structure for implementing the Project and the interaction between the Project’s staff responsible for procurement and the Ministry’s relevant central unit for administration and finance. The assessment was based on OP/BP 8.00 for emergency operations.

21. LTA follows the MTI, Tenders Board Guidelines, GOS Guidelines for Government Procurement and Contracting of Goods and Works (GWG) issued by MOF, dated June 2008; and Guidelines for Government Procurement and Contracting Consultant, June 2008. The Guidelines are subject of the Public Finance Management Act 2001, Treasury Regulations, Treasury Instructions and Operating Manuals, the B4 Schedule and Cabinet Directives.

22. National Competitive Bidding Documents used are based on the WB ICB for smaller contracts; similarly, Request for Quotation follows the WB sample documents.

23. The Guidelines referred to above are based on WB Guidelines. NCB requires advertising, invitation to bid and public bid opening as well as comparison of quotations/proposals for shopping/consultants. Foreign bidders are allowed to participate.

24. The Manager of the Procurement and Programming unit of the LTA will be responsible for all roads and related services. A Procurement Specialist under the credit may be hired to support the unit during the emergency Project.

33 25. All contracts above SAT$500,000 go through Tenders Board Review, as well as Cabinet. Once Cabinet has approved the recommendation, the Attorney General prepares the contract with the successful bidder.

26. Timeliness of payment may be affected by budget allocations.

27. LTA keeps records of all documentation electronically and in hard copies.

28. Most of the issues/ risks concerning the procurement component for implementation of the Project have been identified and include the emergency rapid response demand on accelerated processes and procedures. The manager of the Procurement and Programming Unit is new. The corrective measures which have been agreed are: The PMU established under SIAM-2 is expected to continue to assist, and additional technical assistance will be provided. The Sydney Procurement Hub will organize in-country procurement training around November 2010 as requested by LTA.

29. The overall Project risk for procurement is Average/Moderate.

C. Procurement Plan

30. The Borrower, at appraisal, developed a Procurement Plan for Project implementation which provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team on Appraisal and is available at the LTA office. It will also be available in the Project’s database and the Bank’s external website. The Procurement Plan will be updated in agreement with the Project Team annually, or as required, to reflect the actual Project implementation needs and improvements in institutional capacity.

D. Frequency of Procurement Supervision

31. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended semiannual supervision missions to carry out post review of procurement actions. Thresholds for Procurement Methods and Prior Review specified in the Financing Agreement are identified in the table below, in accordance with the Rapid Response to Crisis and Emergencies: Streamlined Procurement Procedures. The agreed procurement plan determines which contracts will be subject to Bank’s prior review.

Expenditure Contract Value Procurement Contracts Subject to Category (Threshold) Method Prior Review US $ thousands US$ thousand 1.Civil Works >1,000 (1m.) ICB >500 <1,000 (1m) NCB First Contract <1,000 (1m) Shopping First 3 Contracts Regardless of value Direct Contracting All 2. Goods >500 ICB All <500 NCB First Contract <500 NCB First contract <500 Shopping First contract Regardless of value Direct Contracting All 3. Consulting All TORs to be reviewed by Services Bank’s TTL -3.A Firms >500 QCBS,QBS,FBS,LCS, Refer to Proc. Plan <200 CQS Refer to Proc, Plan Individual Regardless of value Single Source All Consultants Comparison of 3 CVs None Note: ICB = International Competitive Bidding; NCB = National Competitive Bidding; QCBS = Quality- and Cost-Based Selection; QBS = Quality-Based Selection; FBS = Fixed Budget Selection; LCS = Least-Cost Selection; CQS = Selection Based on Consultants' Qualifications; TOR = Terms of Reference.

Details of the Procurement Arrangement involving international competition.

Goods and Works and non-consulting services. (a) List of contract Packages which will be procured following ICB and Direct contracting:

Ref Contract Estimated Procurement PQ Domestic Review Bid- Comments No Description Cost (US$) Method Preference by Bank Opening (Prior / Date Post) W9 Samusu/ 4.1 m ICB N/A N/A Prior 2011 Pending Lalomanu Engineerin Road g Design Gi Emergency 0.075 DC N/A N/A Post Sept 2009 Gravel Materials (reviewed at procured appraisal) directly from Quarry

(b) ICB Contracts estimated to cost above US$ 500,000 per contract and all Direct contracting will be subject to prior review by the Bank.

Consulting Services. (a) List of Consulting Assignments with short-list of international firms.

35 1 2 3 4 5 6

Description Estimated Review Expected Ref. No. Selection of Assignment by Bank Proposals Submission Cost Method (Prior / Post) Date Drainage Engineering C1 US$ 110,000 SSS Prior November 2010 Design Route Alignment C3 Engineering US$ 500,000 QCBS Prior January 2011 Design C7 Project Management US$ 230,000 SSS Prior November 2011

(b) Consultancy services estimated to cost above US$200,000 per contract and Single Source selection of consultants (firms) for assignments regardless of value will be subject to prior review by the Bank. Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

36 Annex 6: Implementation and Monitoring Arrangements SAMOA: Samoa Post Tsunami Reconstruction

Institutional Arrangements

1. The GOS has designated LTA and MNRE to serve as implementing agencies for the proposed Credit; overall responsibility for Project coordination and Executing Agency for the Project will be the Ministry of Finance.

2. Although LTA is a relatively new organization (established legally in 2007), it builds on the established track record of MWTI in implementation of road construction and maintenance projects, including works under the ongoing Bank-financed SIAM-2 project and recent CERP project. The experience with Bank safeguard policies and financial management and procurement procedures have been transferred to LTA from MWTI as part of recent Government reforms. LTA has assumed effective management of several ongoing road projects under SIAM-2.

3. Road asset management is a core function of LTA and it has structured its management and processes to deliver efficiency, effectiveness and innovation in implementation. TA was provided under SIAM-2 to assist with the establishment of LTA management and financial systems and ensure a smooth transition of functions from MWTI. In addition to its management team, LTA has a Board of Directors, appointed by the Government, which comprises 3 directors who represent the interests of the community, commercial sector and road users; 2 directors who represent the interests of government; and the LTA Chief Executive Officer, who has no voting rights. The Project will also procure the services of a range of consultants to support core program management functions. Consultants will be recruited for the independent supervision of works, technical and financial audits and impact evaluation amongst other key activities.

4. Institutional arrangements will also include a Steering Committee that will be established to provide general oversight and policy direction during project implementation and review progress and the results of periodic monitoring and evaluation (M&E) activities. The ongoing SIAM-2 project (which also involves roads sector activities) has an established Steering Committee that comprises representatives of MOF, Attorney-General, MWTI, MNRE and NGO; plus established processes for progress reporting and review. To streamline Project oversight across the sector, it is anticipated that this Steering Committee will extend its scope to also provide oversight and guidance for this Project.

Coordination in Implementation

5. This Project is part of a multi-sector reconstruction and recovery effort, which also includes reinstatement of power, water, telecommunications and other services in affected areas, and providing access and services to relocation areas. This means that coordination will be required with a range of public partner agencies during the infrastructure planning, design and construction phases. The Project will rely on cooperation with key Project partners including MNRE, MWTI, Samoa Water Authority, Electric Power Corporation, SamoaTel, and others. Regular meetings will be held with all partner agencies at key stages of the implementation.

37 Annex 7: Project Preparation and Appraisal Team Members SAMOA: Samoa Post Tsunami Reconstruction

Planned Actual PCN review N/A 06/02/2010 Initial PID to PIC 06/10/2010 Initial ISDS to PIC 06/10/2010 Appraisal 06/17/2010 Negotiations 06/10/2010 09/30/2010 Board/RVP approval 03/25/2010 11/02/2010 Planned date of effectiveness 11/25/2010 Planned date of mid-term review 02/15/2012 Planned closing date 04/30/2013

Key institutions responsible for preparation of the project:

Ministry of Finance; Ministry of Natural Resources and the Environment; Land Transportation Authority.

Bank staff and consultants who worked on the Project included:

Name Title Unit Demetrios Papathanasiou Senior Infrastructure Specialist – TTL EASNS Amin Saskai Mohammad Team Assistant EACNF Angela Nyawira Khaminwa Social Development Specialist EASER Carlos Ricardo Escudero Lead Counsel Consultant LEGLA Changkun Yang Infrastructure Specialist EASNS Colleen Butcher-Gollach Consultant EASIN Edward Anderson Disaster Risk Management Specialist EASIN Evelyn Villatoro Senior Procurement Specialist EAPPR Glen D’Este Consultant Transport Specialist EASNS John Lowsby Consultant Engineer EASIN Josefo Tuyor Senior Environmental Specialist EASPS Mark Walker Chief Counsel LEGES Stephen Hartung Senior Financial Management Specialist EAPFM Fiona Doube Team Assistant EACNF

Bank funds expended to date on Project preparation: 1. Bank resources: $60,221 2. Trust funds: $29,698 3. Total: $89,919

Estimated Approval and Supervision costs: 1. Remaining costs to approval: $3,000 2. Estimated annual supervision cost: $85,000

38 Annex 8: Environmental and Social Safeguards Framework SAMOA: Samoa Post Tsunami Reconstruction

1. The Project would restore and improve transport access to areas and communities affected by the tsunami, increase the resilience of transport infrastructure to disasters and strengthen the disaster risk management capacities of local communities. Overall, the environmental and social impacts of the Project are expected to be positive, as access to critical infrastructure (e.g. schools, hospitals, markets) will be restored or improved bringing better development outcomes to affected communities.

2. The Project triggers OP 4.01 due to civil works impacts from the rehabilitation of access roads and sea walls and construction of a new segment of national roads. Because the civil works would mostly take place in existing roads and the size of the activities is limited in scope, the Project is characterized as category B. In addition, some land acquisition may be required and therefore OP 4.12 will be triggered.

3. An appropriate Environmental and Social Screening Assessment Framework (ESSAF) that builds on the Samoa Codes of Environmental Practice (COEP) has been developed for works for which Requests for Proposals will be issued following Board approval (Components 1.3, 3 and 4). The ESSAF provides guidance on the information that is required from the due diligence including summaries of relevant legislation, summaries of the activities’ location and scope, description of the scope and magnitude of adverse impacts, and details on measures put in place to mitigate those impacts. The ESSAF will guide the implementing agencies in addressing environmental and social impacts during implementation.

4. Samoa has well-developed environmental assessment and monitoring procedures and has developed, issued and implemented the Samoa Codes of Environmental Practice (COEP) since April 2007 for road works, coastal protection, quarry development and operations, drainage and construction of communications facilities, among others. The COEP were developed with the assistance of international consultants and is on par with modern and international standards. The COEP have been updated and used for the SIAM-2 project.

5. The Ministry of Natural Resources and the Environment is a well-established entity with adequate professional staff and systems in place to manage land and environmental issues in Samoa. The MNRE and its Planning and Urban Management Agency (PUMA) have incorporated several of the elements of strengthening environmental practices introduced in Samoa under the SIAM-1 as well as the ongoing SIAM-2 projects into their normal sector operations, building on these in several ways. In the ongoing works done so far, all major works of the MWTI/LTA have undergone a Preliminary Environment Assessment Report (PEAR) while general maintenance and small works are following the National Codes of Environment Practice (COEP).

6. The Samoa Codes of Environmental Practice (COEP) were updated under SIAM-2 and adopted by Samoa covering: Road Planning, Design and Construction (COEP 2); Consultation (COEP 3); Construction Camps (COEP 5); Road Construction Erosion Control (COEP 6); Slope Stability (COEP 7); Quarry Development and Operations (COEP 8); Gravel Extraction (COEP 9); Coastal Protection (COEP 10); Drainage (COEP 11); Traffic Control During Construction (COEP 12); Earthworks (COEP 13).

7. In the preparation of designs as prescribed in the Request for Proposals for all works, an environmental assessment either in the form of a Preliminary Environmental Assessment Review or full EIA (whichever is applicable) is required and this is integrated in the design. An Environment Management Plan (EMP) is also prepared as the main documentation to be attached to the Development

39 Consent (DC) Application from MWTI to the PUMA of MNRE. MNRE also seeks DC from the Planning and Urban Management Agency for works implemented as part of the former's Small Grants Scheme.

8. The PUMA evaluates DC applications for construction works through the consideration of findings of the required PEAR or full EIA (whichever is applicable). Safeguards requirements for this Project remain the same as those originally stipulated under the existing Environment Management Plan under SIAM-2 which sets out the approaches proposed by the selected design and supervision consultants on behalf of the MWTI, to mitigate or avoid adverse environment impacts.

9. Among other things, design and supervision tenders, as well as contractors are required to clearly indicate how they will complete fulfill their respective obligations. An appropriate Development Consent (DC) is then issued by PUMA.

10. During construction, the PUMA officers conduct at least two monitoring evaluations to ensure that the Development Consent requirements (and any conditions that have been attached) are strictly adhered to.

11. PUMA has the powers under its Act to stop the construction at any time where DC conditions are not being met by the Contractor and it has in the past invoked this provision to achieve contractor compliance. The construction supervisors are also required to follow the EMP requirements and DC conditions during the monitoring of specific Project activities. For the Samoan Airport Authority, MWTI and MNREM, their compliance history in relation to these environmental requirements is highly satisfactory, with all Project activities going through the Development Consent process.

12. The environmental issues that will be monitored under the Project include: (a) adequate storm water and run-off disposal and management along the alignment; (b) public road safety; and (c) traffic noise and control. Construction impact includes: (a) quarrying and sand mining, material preparation and storage, equipment maintenance and disposal sites; (b) transport, soil erosion, and sedimentation control and management of impact on water quality of surface watercourses; (c) dust and noise control during construction period; (d) soil disposal and management; and (e) waste management, for both solid waste and hazardous liquid waste and used lubricants. Since most of the construction works are relatively small and the system in place for monitoring compliance is working well, there have been very few problems so far and this is expected to continue.

Retroactive Financing

13. Component 1 would provide retroactive financing for certain activities. These sub-Projects include:

(a) Upgrading of an existing agricultural road to national road status – Lepa/Lalomanu. This would provide an alternative route along the south coast between Lepa and Lalomanu. The road follows the route of an existing agricultural access road.

(b) Upgrading short length access tracks. These agricultural access roads exist along the east and south coast roads and will include for each one about a 2km long bitumen surfaced secondary or tertiary roads.

40 14. Before disbursements are made to retroactively finance the above activities, due diligence will be undertaken by the Bank to ensure that these activities were implemented in compliance with the Bank’s environmental policies. To ensure compliance with the Bank’s environmental safeguards policies, before disbursements are made for the retroactively financed activities, the Bank will review for compliance the Environmental Management Plans (EMP) included in the works contracts relating to these activities. Disbursements will be made only when the Bank’s environmental specialists confirm that environmental safeguards were properly addressed. The ESSAF provides guidance on the information that is required from the due diligence including summaries of relevant legislation, summaries of the activities’ location and scope, description of the scope and magnitude of adverse impacts, and details on measures put in place to mitigate those impacts.

Social

15. The Project will restore and improve access to communities and relocation areas. Overall, the impacts are expected to be positive, as access to critical infrastructure (e.g. schools, hospitals, markets) will be restored and improved bringing better development outcomes to affected communities.

16. To ensure compliance with the Bank’s social safeguards policies, before disbursements are made for the retroactively financed activities, the Bank will review written reports, to be provided by the GOS, addressing social safeguards issues relating to these activities. Disbursements will be made only when the Bank’s social specialists confirm that social safeguards issues were properly addressed in the retroactively financed components.

17. A Social Assessment will be conducted early in the implementation period and will include a series of in-depth consultations with community members and other stakeholders. The consultations will be undertaken in an effort to:

(a) Obtain a better understanding of the socio-economic landscape in the Project area, including key stakeholders, vulnerable groups, income-earning opportunities, etc. in an effort to understand the impact and opportunities inherent in the Project and inform the implementation of the Project.

(b) Increase awareness of the Project among communities likely to be in the Project area.

(c) Explore innovative ways in which communities can be engaged in the Project, for example in monitoring Project implementation.

(d) Solicit input from community members into the Project design, for example, the alignments of the Samusu-Lalomanu road and the dual-purpose pedestrian access routes.

18. The consultations will be broad based and representative, paying particular attention to the input and experiences of women, the youth, and other potential vulnerable groups.

19. Any relevant actionable inputs will strengthen the Project design, the LARAPs, and the ESSAF.

OP 4.12 20. OP 4.12 is triggered as Components 3 and 4 may require involuntary land acquisitions and/or resettlement. The Project aims to minimize involuntary land acquisition and/or resettlement, in part by involving communities in the design of the route alignments. In addition, a Land Acquisition and

41 Resettlement Framework (LARF) has been prepared. The Project has adopted a framework approach because the alignment of the relevant sub-projects under Component 3 and 4 will not be known prior to Project approval.

21. The LARF includes guidelines and details procedures on the following issues:

(a) Guidelines for temporary and permanent land acquisition, resettlement (if necessary), and compensation for loss of crops and economic trees. (b) Principles for land use which include the avoidance and minimization of involuntary resettlement, land acquisition, and damage to physical assets.

(d) Guidelines for the preparation of Land Acquisition and Resettlement Action Plans once the specific route alignments of sub-projects are known.

Coastal Infrastructure Management Plans

22. Component 2 is financing the updating of Coastal Infrastructure Management Plans. The Component will include close consultation with affected communities as an integral part of the process of updating the district Coastal Infrastructure Management Plans.

Consultations

23. The Project design envisions community consultations at its core. Consultations are part of the Social Assessment which will be undertaken early in Project implementation, they are also part of the revision of the Coastal Infrastructure Management Plans. In addition, consultations with community members who may lose their land is an important facet.

24. The Project adopts the Governments’ procedures for consultation which are entrenched in the Codes of Environment Practices (COEP – 3). These procedures were developed as a result of Bank support to the Infrastructure Asset Management Program. The COEP is applied to all works undertaken by the Government of Samoa.

25. In order to provide a rapid response, and in compliance with OP 8.00, actions required to ensure compliance with Bank policies will be carried out in a sequential fashion:

(a) The LARF has been prepared during the Project preparation stage and is included in the ESSAF.

(b) The review of retroactive financing and compliance with Bank policy (for Components 1) will be undertaken in the early months of Project implementation.

(d) Individual LARAPs will be prepared once the route alignment and Project areas of specific projects are known.

42 (e) In preparing the LARAPs, the GOS will ensure that there are broad based and representative consultations with affected and nearby communities to ensure that members of the community have an opportunity to provide input into the Project and are aware of the choices available to them vis-à-vis compensation and resettlement, if necessary.

Institutional Capacity

26. The Bank has been engaged in the infrastructure sector over the past decade through the Infrastructure Asset Management Program (SIAM 1 and SIAM 2). As a result of this engagement, the Ministry of Works, Transport, and Infrastructure (MWTI) developed significant experience on Bank safeguards policies. The Land Transport Authority was formed in 2008 as part of Government reform initiatives to consolidate road use and road asset management functions. As part of the consolidation, significant experience on Bank safeguard policies was transferred to LTA from MWTI. The development and institutionalization of the Codes of Environment Practice (which emerged directly from SIAM-1) is testament to the extent to which Bank procedures have been ingrained in the infrastructure sector. The GOS will also prepare and implement a communications strategy in the Project affected area to ensure that nearby and affected communities are aware of the Project, including its goals and objectives.

43 Annex 9: Economic and Financial Analysis SAMOA: Samoa Post Tsunami Reconstruction

Not Applicable for Emergency Operations

44 Annex 10: Documents in Project Files SAMOA: Samoa Post Tsunami Reconstruction

1. Samoa Post Disaster Needs Assessment

2. Request from the Government of Samoa

3. Reconstruction and Recovery Plan

4. Coastal Infrastructure Management Plans (for tsunami-affected areas)

5. Tender documentation for Construction of Lepa Lalomanu Link Road

6. Tsunami Program Budget Schedules (Land Transportation Authority)

45 Annex 11: Statement of Loans and Credits SAMOA: Samoa Post Tsunami Reconstruction

Difference between expected and actual Original Amount in US$ Millions disbursements

FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d 2008 WS-2ND HEALTH SECTOR MGMT 0.00 6.00 0.00 0.00 0.00 4.45 0.02 0.00 PROG SPT PRJ 2004 WS-INFRA ASSET MGMT APL2 0.00 21.07 0.00 0.00 0.00 4.06 -4.92 2.79 2003 Samoa - Telecommunications & Post 0.00 4.48 0.00 0.00 0.00 1.73 1.11 0.00 Reform Total: 0.00 31.55 0.00 0.00 0.00 10.24 - 3.79 2.79

SAMOA STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions of US Dollars

Committed Disbursed IFC IFC Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2 PIIF SamoaVCF 0.00 0.40 0.00 0.00 0.00 0.00 0.00 0.00 Total portfolio: 0.00 0.40 0.00 0.00 0.00 0.00 0.00 0.00

Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic.

Total pending commitment: 0.00 0.00 0.00 0.00

46 Annex 12: Country at a Glance SAMOA: Samoa Post Tsunami Reconstruction

East Lower- POVERTY and SOCIAL Asia & middle- Development diamond* Samoa Pacific income 2008 Population, mid-year (millions) 0.18 1,931 3,702 Life expectancy GNI per capita (Atlas method, US$) 2,820 2,631 2,078 GNI (Atlas method, US$ billions) 0.50 5,081 7,692

Average annual growth, 2002-08 Population (%) 0.1 0.8 1.2 Labor force (%) -0.3 1.2 1.6 GNI Gross per primary M ost recent estimate (latest year available, 2002-08) capita enrollment Poverty (% of population below national poverty line) ...... Urban population (% of total population) 22 44 41 Life expectancy at birth (years) 72 72 68 Infant mo rtality (per 1,000 live births) 22 22 46 Child malnutrition (% of children under 5) .. 13 26 Access to improved water source Access to an improved water source (% of population) 88 87 86 Literacy (% of population age 15+) 99 93 83 Gross primary enrollment (% of school-age population) 99 111 109 Samoa M ale 100 112 112 Lower-middle-income group Female 99 110 106

KEY ECONOM IC RATIOS and LONG-TERM TRENDS 1988 1998 2007 2008 Economic ratios* GDP (US$ billions) 0.12 0.22 0.54 0.52 Gross capital formation/GDP ...... Exports of goods and services/GDP .. 36.3 30.7 33.5 Trade Gross domestic savings/GDP ...... Gross national savings/GDP ...... Current account balance/GDP -5.5 6.6 -14.9 -6.0 Interest payments/GDP 1.4 0.6 0.5 0.7 Domestic Capital savings formation To tal debt/GDP 63.2 68.8 43.1 49.1 Total debt service/exports 10.3 5.2 7.1 7.7 Present value of debt/GDP .. .. 189.2 29.4 Present value of debt/exports .. .. 595.8 84.8 Indebtedness 1988-98 1998-08 2007 2008 2008-12 (average annual growth) GDP 1.5 4.5 6.4 -3.4 .. Samoa GDP per capita 0.6 4.2 6.4 -3.4 .. Lower-middle-income group Expo rts o f go o ds and services 15.3 -0.9 ......

STRUCTURE of the ECONOM Y 1988 1998 2007 2008 Growth of capital and GDP (%) (% of GDP) Agriculture .. 19.2 11.0 10.8 8 6 Industry .. 24.3 31.4 29.3 4 M anufacturing .. 13.9 13.8 11.7 2 Services .. 56.5 57.6 60.0 0 -2 03 04 05 06 07 08 Household final consumption expenditure ...... -4 General gov't final consumption expenditure ...... GCF GDP Imports of goods and services .. 56.3 57.6 55.4

1988-98 1998-08 2007 2008 Growth of exports and imports (%) (average annual growth) Agriculture 1.5 -1.8 6.9 -9.0 15 Industry -0.3 5.9 13.7 -10.3 12 M anufacturing .. 2.2 17.5 -19.0 9 Services 13.3 5.4 2.8 1.3 6 3 Household final consumption expenditure ...... 0

General gov't final consumption expenditure ...... 03 04 05 06 07 08 Gross capital formation ...... Exports Imports Impo rts o f go o ds and services 2.9 1.1 .. ..

Note: 2008 data are preliminary estimates. This table was produced from the Development Economics LDB database. * The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be inco mplete.

47 Samoa

PRICES and GOVERNMENT FINANCE 1988 1998 2007 2008 Inflation (%) Domestic prices (% change) 20 Consumer prices 8.5 2.3 5.5 11.5 15 Implicit GDP deflato r 18.4 3.2 7.1 2.8 10 Government finance 5 (% of GDP, includes current grants) 0

Current revenue .. 35.5 34.3 31.2 03 04 05 06 07 08 Current budget balance .. 14.0 11.2 4.1 GDP deflator CPI Overall surplus/deficit .. 2.0 1.1 -3.3

TRADE 1988 1998 2007 2008 Export and import levels (US$ mill.) (US$ millions)

Total exports (fob) 15 19 12 12 300 Other fo o d .. 9 6 6 250 Co co a 2 1 1 1 200 M anufactures 0 1 2 1 Total imports (cif) .. 97 225 261 150 Fo o d .. .. 59 .. 100 Fuel and energy .. .. 49 .. 50 Capital go o ds .. .. 51 .. 0 Export price index (2000=100) ...... 02 03 04 05 06 07 08 Import price index (2000=100) ...... Exports Imports Terms of trade (2000=100) ......

BALANCE of PAYMENTS 1988 1998 2007 2008 Current account balance to GDP (%) (US$ millions) Exports of goods and services 42 77 167 176 3

Imports of goods and services 85 124 313 290 0 Resource balance -43 -47 -146 -114 -3 02 03 04 05 06 07 08 Net income 1 2 -37 -38 -6 Net current transfers 36 59 102 121 -9 Current account balance -7 15 -81 -31 -12

Financing items (net) 15 -23 96 16 -15 Changes in net reserves -8 8 -15 16

Memo: Reserves including gold (US$ millions) 49 61 .. .. Conversion rate (DEC, local/US$) 2.1 2.9 2.6 2.7

EXTERNAL DEBT and RESOURCE FLOWS 1988 1998 2007 2008 Composition of 2008 debt (US$ mill.) (US$ millions) Total debt outstanding and disbursed 75 154 235 257 IB RD 0 0 0 0 IDA 14 45 78 79 E: 36

Total debt service 8 4 12 14 B: 79 IB RD 0 0 0 0 IDA 0 1 2 2 Composition of net resource flows Official grants 18 12 9 17 Official credito rs 2 0 18 22 P rivate credito rs 0 0 0 0 Fo reign direct investment (net inflo ws) 0 3 2 6 P o rtfo lio equity (net inflo ws) 0 0 0 0 D: 142 World Bank program Co mmitments 0 0 4 3 Disbursements 1 2 7 3 A - IBRD E - Bilateral Principal repayments 0 0 1 1 B - IDA D - Other multilateral F - Private C - IMF G - Short-term Net flo ws 1 2 6 2 Interest payments 0 0 1 1 Net transfers 1 2 5 1

Note: This table was produced from the Development Economics LDB database.48 12/9/09 172°30'W 172°00'W SAMOA TSUNAMI-AFFECTED SOUTH PACIFIC OCEAN AREAS TSUNAMI-AFFECTED AREAS

SAMOA SELECTED CITIES AND TOWNS NATIONAL CAPITAL RIVERS MAIN ROADS Fagamalo DISTRICT BOUNDARIES Savai'i Safotu

Mauga 172°30'W

13°30'S Falealupo 13°30'S Asau Tufutafoe 0 5 10 15 Kilometers A'opo VAISIGANO GAGA'EMAUGA GAGAIFOMAUGA 0 5 10 15 Miles Taga Mt. Silisili Pu'apu'a (1,857 m) SATUPA'ITEA FA'ASALELE'AGA Samata T u a s i v i SATUPA'ITEA R i d g e PALAULI Faga

Safotulafai Sala'ilua PALAULI Salelologa Fa'a'ala Maota Papa t GAGA'EMAUGA a i Taga t r Sale'imoa Fale'ula Tafua S Upolu a Apolima Leulumoega APIA m l i Mulifanua o p Manono Lauli'i A AIGA-I-LE-TAI Aleisa Solosolo A'ANA Falefa 172°30'W Samatau Falelatai VA'A-OFONOTI TAUMASAGA Mt. Fito Falease'ela (1,115 m) Uafato Sataoauta ATUA Tiavea Matautu Ti'avea Si'umu Samusu 14°00'S 14°00'S GAGA'EMAUGA Poutasi Fanuatapu Tiavea Uta Namu'a LAND AFFECTED Lotofaga Amaile Lalomanu ROADS Mt. Seuga Samusu See inset for details Nu'utele Utufaalalafa Nu'ulua Samusu Uta Saleaaumua Mutiatele Malaela Satitoa SOUTH PACIFIC OCEAN Vavau Ulutogla Lotofaga Vaigalu Siupapa This map was produced by the Map Design Unit of The World Bank. MARCH 2010 Aufaga Lepa Saleapaga The boundaries, colors, denominations and any other information IBRD 37665 Lalomanu shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries. 0 1 2 3 4 Kilometers 172°00'W 172°30'W