FOR OFFICIAL USE ONLY Report No: PAD3361 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 25.9 MILLION (US$35.5 MILLION EQUIVALENT) AND A PROPOSED GRANT Public Disclosure Authorized IN THE AMOUNT OF SDR 22.3 MILLION (US$30.5 MILLION EQUIVALENT) TO THE REPUBLIC OF VANUATU FOR A VANUATU CLIMATE RESILIENT TRANSPORT PROJECT UNDER THE PACIFIC CLIMATE RESILIENT TRANSPORT PROGRAM Public Disclosure Authorized December 31, 2019 Transport Global Practice East Asia And Pacific Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective November 30, 2019) Currency Unit = Vanuatu Vatu (VUV) VUV117 = US$1 US$1.3729 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Regional Director: Ranjit Lamech Practice Manager: Almud Weitz Task Team Leaders: Dung Anh Hoang, Naoki Kakuta ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement (French Development Agency) ARAP Abbreviated Resettlement Action Plan ASA Advisory Services and Analytics CAT-DDO Catastrophe-Deferred Drawdown Option CBR California Bearing Ratio CCA Community Conservation Area CERC Contingent Emergency Response Component CESMP Contractor’s Environmental and Social Management Plan DA Designated Account DBST Double Bituminous Surface Treatment DCP Dynamic Cone Penetrometer DFAT (Australian) Department of Foreign Affairs and Trade DRM Disaster Risk Management DSC Design and Supervision Consultant ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union FMIS Financial Management Information System GAP Gender Action Plan GBV Gender-Based Violence GCF Green Climate Fund GDP Gross Domestic Product GESI Gender Equality and Social Inclusion GFDRR Global Facility for Disaster Reduction and Recovery GIS Geographic Information System GOV Government of Vanuatu GRM Grievance Redress Mechanism GRS Geosynthetic Reinforced Soil GRS Grievance Redress Service GRSF Global Road Safety Facility IDA International Development Association IMF International Monetary Fund IPF Investment Project Financing JICA Japan International Cooperation Agency M&E Monitoring and Evaluation MCCA Ministry of Climate Change Adaptation MFAT (New Zealand’s) Ministry of Foreign Affairs and Trade MFEM Ministry of Finance and Economic Management MIPU Ministry of Infrastructure and Public Utilities NDMO National Disaster Management Office NGO Non-Governmental Organization NSDP National Sustainable Development Plan OM Operations Manual PAD Project Appraisal Document PCRTP Pacific Climate Resilient Transport Program PDO Project Development Objective PIC Pacific Islands Countries PISR Project Implementation Status Report PIU Project Implementation Unit PLTA Public Land Transport Association POM Project Operations Manual PPA Project Preparation Advance PPSD Project Procurement Strategy for Development PST Project Support Team PWD Public Works Department RCC Reinforced Cement Concrete R4D Roads for Development RIMS Road Inventory Management System RPF Regional Partnership Framework RSSAT Road Safety Screening and Appraisal Tool RTSIDS Resilient Transport in Small Island Developing States SCD Systematic Country Diagnostic SIDS Small Island Developing States SOP Series of Projects STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance VAC Violence against Children VCRTP Vanuatu Climate Resilient Transport Project VIRIP Vanuatu Infrastructure Reconstruction and Improvement Project VISIP Vanuatu Infrastructure Strategic Investment Plan VMGD Vanuatu Meteorology and Geo-hazards Department VNAO Vanuatu National Audit Office VUV Vanuatu Vatu VWC Vanuatu Women’s Center WHO World Health Organization The World Bank Vanuatu Climate Resilient Transport Project (P167382) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives ............................................................................................. 11 II. PROJECT DESCRIPTION .................................................................................................. 13 A. Project Development Objective ..................................................................................................... 13 B. Project Components ....................................................................................................................... 13 C. Project Beneficiaries ....................................................................................................................... 15 D. Results Chain and Theory of Change .............................................................................................. 16 E. Rationale for Bank Involvement and Role of Partners ................................................................... 17 F. Lessons Learned and Reflected in the Project Design .................................................................... 18 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 19 A. Institutional and Implementation Arrangements .......................................................................... 19 B. Results Monitoring and Evaluation Arrangements......................................................................... 21 C. Sustainability ................................................................................................................................... 21 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 21 A. Technical and Economic Analysis ................................................................................................... 21 B. Fiduciary .......................................................................................................................................... 24 C. Safeguards ...................................................................................................................................... 25 V. KEY RISKS ..................................................................................................................... 31 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 34 ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN ............................. 42 ANNEX 2: DETAILED PROJECT DESCRIPTION .................................................................. 53 ANNEX 3: ECONOMIC ANALYSIS .................................................................................... 57 ANNEX 4: SAFEGUARDS ................................................................................................ 60 ANNEX 5: GENDER-BASED VIOLENCE ............................................................................. 65 ANNEX 6: CONTINGENT EMERGENCY RESPONSE COMPONENT ...................................... 69 ANNEX 7: PCRTP SOP .................................................................................................... 70 ANNEX 8: MAP OF VANUATU WITH PROJECT SITES ....................................................... 73 The World Bank Vanuatu Climate Resilient Transport Project (P167382) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Vanuatu Vanuatu Climate Resilient Transport Project Project ID Financing Instrument Environmental Assessment Category Investment Project P167382 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [✓] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 23-Jan-2020 31-Dec-2025 Bank/IFC Collaboration No Proposed Development Objective(s) To improve the climate resilience of the Recipient's road network, with emphasis on the selected project road, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. Components Component Name Cost (US$, millions) Page 1 of 73 The World Bank Vanuatu Climate Resilient Transport Project (P167382) Component 1: Sectoral and Spatial Planning Tools 0.28 Component 2: Climate Resilient Infrastructure Solutions 60.75 Component 3: Strengthening the Enabling Environment 4.97 Component 4: Contingent Emergency Response 0.00 Organizations Borrower: Republic of Vanuatu Implementing Agency: Ministry of Infrastructure and Public Utilities PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost