Cook Islands National Infrastructure Investment Plan Inception Report March 2014 Infrastructure Committee Cook Islands Government Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 Contents 1 Introduction 1 1.1 Purpose and Scope of the Report 1 1.2 Mobilisation and Initial Activities 1 1.2.1 Personnel 1 1.2.2 Project Accommodation and Support 1 1.2.3 Meetings 1 1.2.4 Background Data Collection 3 1.2.5 Institutional Mapping 3 1.2.6 Developing the Methodology 3 2 Proposed Approach 4 2.1 Overall Approach 4 2.1.1 Guidance from Stakeholders 4 2.2 Methodology 5 2.3 Background/Data 5 2.4 Infrastructure Sector Review 6 2.4.1 Demand Analysis 6 2.5 Project Long-list 6 2.5.1 CIIC Database 6 2.5.2 Refining the Project List 7 2.6 Prioritisation 7 2.6.1 Screening and MCA Criteria 7 2.6.2 Preparing the Investment Plan from the Prioritised Project List 9 2.7 Funding Strategy 10 2.8 Climate Change 10 2.8.1 Scope of Climate Change in CI NIIP 10 2.8.2 Overview 10 2.8.3 Climate Change Assessments for CI NIIP 11 2.9 Monitoring and Review 12 2.10 Role of the CI NIIP 12 2.10.1 Linkage with Budget Process 12 2.10.2 Positioning of the CI NIIP 13 2.11 Consultation Strategy 14 2.11.1 Outer Islands 15 3 Infrastructure and Economic Overview 16 3.1 General 16 3.2 Geographic and Island Context 16 3.3 Initial Economic Review 17 3.4 Infrastructure Assessment 18 3.4.1 Existing Infrastructure 18 3.5 Sector and Sub-sector Planning 19 List of Appendices A Work Plan B Responsibilities for infrastructure C Criteria used in other National Infrastructure Investment Plans D Example of MFEM project sheet E List of projects from 20-Year Infrastructure Master Plan F List of Documents Obtained List of Figures Figure 2.1 Proposed CI NIIP Process 5 Figure 2.2 Positioning of CI NIIP 14 i Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 List of Tables Table 1.1 List of Persons Met 1 Table 2.1 NIIP Stakeholder Observations and Responses 4 Table 2.2 Prioritisation Criteria (Draft for discussion) 8 Table 2.3 Key Tasks and Activities in Climate Change and Disaster Risk Assessment 11 Table 2.4 Key Budget Dates 2014 13 Table 2.5 Infrastructure Committee Budget Review Activities 13 Table 2.6 Programme of Proposed Consultations and Communication 15 Table 3.1 Island Characteristics 16 Table 3.2 Summary of Key Infrastructure 18 Table 3.3 Existing Sector Plans and Studies 20 ii Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 Abbreviations ADB Asian Development Bank AUD Australian Dollar BSG Budget Support Group CEO Chief Executive Officer CIAA Cook Island Airports Authority CIIC Cook Islands Investment Corporation DCD Development Coordination Division EC European Commission EDF European Development Fund EIB European Investment Bank EU European Union GCCA Global Climate Change Alliance GDP Gross Domestic Product GEF Global Environment Facility HOM Head of Ministry ICI Infrastructure Cook Islands ICT Information and Communication Technologies IDA International Development Association IFC International Finance Corporation (of the World Bank Group) JICA Japan International Cooperation Agency JNAP DRM CCA Joint National Action Plan for Disaster Risk Management and Climate Change Adaptation MCA Multi-Criteria Analysis MDGs Millennium Development Goals MFEM Ministry of Finance and Economic Management NGO Non Governmental Organisation NIIP National Infrastructure Investment Plan NSDP National Sustainable Development Plan NZ MFAT New Zealand Ministry of Foreign Affairs and Trade NZD New Zealand Dollar ODA Official Development Assistance OPM Office of the Prime Minister PCCSP Pacific Climate Change Science Programme PCRAFI Pacific Catastrophe Risk and Financing Initiative PRIF Pacific Region Infrastructure Facility ROBOC Revenue on Behalf of the Crown SOE State-Owned Enterprise SPC Secretariat of the Pacific Community SRIC Strengthening Resilience in Island Communities TA Technical Assistance TAU Te Aponga Uira (Power company) UNDP United Nations Development Programme WATSAN Water and Sanitation Programme WB World Bank Group i Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 Consultant Team Richard Mabbitt Team Leader, Infrastructure Planning and Policy Specialist David Hamilton Economist Carsten Huttche Climate Change Specialist Bernadette Raffe Finance Specialist Des Eggelton Civil Engineer “This is a publication of the Government of the Cook Islands. This report was prepared by Richard Mabbitt, David Hamilton, Bernadette Raffe, Des Eggelton and Carsten Huttche as individual consultants under the guidance of and with support of the Pacific Regional Infrastructure Facility (PRIF) in Sydney, Australia. PRIF is a partnership for improved infrastructure in the Pacific Region between the Asian Development Bank, the Australian Agency for International Development, the New Zealand Ministry for Foreign Affairs and Trade, the World Bank, the European Union and the European Investment Bank. The views expressed in this report are those of the authors and do not necessarily reflect the views and policies of ADB or its Board of Governors or the governments they represent or from any of the PRIF Partners. ADB or any of the above parties does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use” i Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 The Cook Islands Penrhyn Rakahanga Manihiki Pukapuka Nassau Northern Group Suwarrow Palmerston Southern Group Aitutaki Manaue Mitiaro Takutea Atiu Mauke Rarotonga N 100 Km Mangaia i Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 1 Introduction 1.1 Purpose and Scope of the Report 1 This is the first report under the technical assistance to prepare the Cook Islands National Infrastructure Investment Plan. The work is being supported by the Pacific Region Infrastructure Facility (PRIF).1 The report sets out an initial assessment of the current situation in the infrastructure sub-sectors covered by NIIP, and outlines the approach and work plan for the project. 1.2 Mobilisation and Initial Activities 1.2.1 Personnel th 2 The Team Leader, Infrastructure Planning and Policy Specialist, Richard Mabbitt, mobilised on 9 February and arrived in Rarotonga on the 10th February, 2014. 3 The Economist, David Hamilton, arrived in Rarotonga on 15th February 2014. th 4 The Finance Specialist, Bernadette Raffe mobilised on 17 February. The Civil Engineer, Des Eggelton, mobilised on 5th March. 5 The international Climate Change Expert, Carsten Huttche has started background research from his home office. He will arrive in the Cook Islands in April. 6 The proposed project Work Plan is shown in Appendix A. 1.2.2 Project Accommodation and Support 7 The CI NIIP project office has been established in the Cook Islands Investment Corporation (CIIC) section of the MFEM building. The team has been provided with access to telephone, internet and printing facilities. Staff of CIIC and Development Coordination Division (DCD) have provided excellent support and assistance. 8 It has been established that the Infrastructure Committee (IC) will take the role of the project’s steering committee. Membership of the IC is comprised of private sector board members of CIIC, plus representatives from ICI, CIIC, MFEM, and the Office of the Prime Minister. 1.2.3 Meetings 9 A number of meetings have been held with stakeholders. A list of meetings held thus far is shown in Table 1.1. (Note: The cut-off point for meetings included in the Inception Report was 14th March). Table 1.1 List of Persons Met Date Agency People Met 11th Feb 2014 Development Partners Presentation to Development Partners’ Meeting Meeting Side discussions with: Noriko Ogawa, ADB Andrew Jacobs, EU Adam Bruun, Katrin Bock, EIB Charlie Jebb, Australian High Commission, Wellington Joanna Kempkers, NZ High Commissioner, Cook Islands 1 PRIF is a partnership between the Asian Development Bank, Australian Aid, EC/EIB, New Zealand, the World Bank Group, and JICA 1 Cook Islands National Infrastructure Investment Plan Inception Report, March 2014 Date Agency People Met Roger de Bray, Energy Commissioner, Cook Islands Nathalie Rossette-Cazel, Lex Act (France) Teresa Manarangi - Trott, Chamber of Commerce 14th Feb 2014 ADB Coordination Office, Vanessa Jenner, MFEM Development Charmaine Dolan Coordination Division 17 Feb 2014 ADB Coordination Office, Vanessa Jenner - ADB Liaison Officer MFEM Development Charmaine Dolan - ADB liaison Officer Coordination Division Peter Tierney - Manager Development Coordination Division Tunoa Kaina - Accounts Manager Edward Parker - Budget Analyst Angelia Williams - Budget Team 18 Feb 2014 MFEM Richard Neves - Financial Secretary Christina Tatuava – Senior Budget Analyst Teu Teulilo - Treasury Operations Manager Elizabeth Tommy – Crown Account Manager 18 Feb 2014 OPM Otheniel Tangianau - Director for Outer Islands 18 Feb 2014 NZMFAT Howard Markland - Development Manager Cook Islands Program Steve Barrett – Senior Development Program Coordinator 19 Feb 2014 Infrastructure Committee Michael Henry, Chairman - CIIC Board of Directors Julian Dashwood, Chairman - CIIC Board of Directors Malcolm Sword, Member - CIIC Board of Directors Sam Brown, Member Mac Mokoroa, Member Tamarii Tutangata, Member Richard Neves, Member Peter Tierney, DCD Joseph Akaruru, ICI Fred Hosking, ICI 19 Feb 2014 Te Mato Vai Latu Kupa - Project Manager 20 Feb 2014 AECOM Miles