Technical Assistance Consultant’s Report Project Number: 38031 December 2007 Regional: Mainstreaming Environmental Considerations in Economic and Development Planning Processes in Selected Pacific Developing Member Countries (Financed by TASF) Prepared by: James T. Berdach and Michelle Llegu For ADB This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. ASIAN DEVELOPMENT BANK TA: 6204-REG SOLOMON ISLANDS COUNTRY ENVIRONMENTAL ANALYSIS December 2007 Prepared by: James T. Berdach and Michelle Llegu cover photos (clockwise from top center): Ngalibiu Bridge, Central Guadalcanal, damaged during the recent conflict; subsistence agricultural cultivation on steep slopes near Honiara; Soltai Tuna, Ltd. loading dock, Noro, New Georgia Island, Western Province; aerial photo of atoll islets, Western Province; damaged wharf, Marau, Eastern Guadalcanal; mahogany and teak plantation, Takaboru Village, Western Guadalcanal; village children, Marau, Eastern Guadalcanal (all photos by James Berdach) The views expressed in this document are those of the authors and do not necessarily represent positions of the Asian Development Bank or the Solomon Islands Government. i CURRENCY EQUIVALENTS (as of 18 October 2007) Currency Unit = Solomon Islands Dollar (SI$) SI$ 1.00 = $0.131 $1.00 = SI$ 7.634 ABBREVIATIONS AND TERMS ADB – Asian Development Bank ADF – Asian Development Fund ADTA – advisory technical assistance AusAID – Australia Agency for International Development BOD – biochemical oxygen demand CBD – Convention on Biological Diversity CDM – clean development mechanism CEA – country environmental analysis CITES – Convention on International Trade in Endangered Species COP – conference of parties CSP – country strategy and program CSPU – country strategy and program update cu m – cubic meter dbh – diameter at breast height DFEC – Department of Forest, Environment, and Conservation DMC – developing member country EC – European Commission ECD – Environment and Conservation Division (of DFEC) EEZ – exclusive economic zone EIA – environmental impact assessment EIS – environmental impact statement ERU – Economic Reform Unit EU – European Union EVI – environmental vulnerability index FAO – Food and Agriculture Organization FFA – Forum Fisheries Agency FFV – foreign fishing vessel GDP – gross domestic product GEF – Global Environment Facility GHG – greenhouse gas GIS – geographic information system ha – Hectare ICLARM – International Center for Living Aquatic Resources Management JICA – Japan International Cooperation Agency km – kilometer km2 – square kilometer KSA – key strategic area kwh – kilowatt-hour LDC – least-developed country LMMA – locally-managed marine area ii m – meter MCS – monitoring, control and surveillance MDG – millennium development goals MoA – memorandum of agreement MoU – memorandum of understanding MPA – marine protected area mt – metric ton mw – megawatt NAP – national action programme NAPA – national adaptation plan of action NBSAP – national biodiversity strategy and action plan NDMO – National Disaster Management Office NEMS – national environment management strategy NERRDP – national economic recovery, reform, and development plan NGO – nongovernmental organization NIS – national implementation strategy NTFP – non-timber forest product NZAID – New Zealand Agency for International Development OCR – ordinary capital resources ODS – ozone-depleting substance OFCF – Overseas Fishery Cooperation Foundation (Japan) PARD – Pacific Department (ADB) PCERP – Post-Conflict Emergency Rehabilitation Project (ADB) PDMC – Pacific developing member country (ADB) PIASA – Pacific Islands Air Services Agreement PICASST – Pacific Islands Civil Aviation Safety and Security Treaty PICCAP – Pacific Islands Climate Change Assistance Program PMU – project management unit POP – persistent organic pollutant PPTA – project preparatory technical assistance PRES – Pacific Region Environmental Strategy PSA – private sector assessment RAMSI – Regional Assistance Mission to the Solomon Islands RETA – regional technical assistance RFEP – Rural Fisheries Enterprise Project (EU) SICHE – Solomon Islands College of Higher Education SIDS – small island developing state SIEA – Solomon Islands Electricity Authority SIG – Solomon Islands Government SILMMA – Solomon Islands Locally-Managed Marine Area (Network) SISDAC – Solomon Islands Sustainable Development Advisory Council SIWA – Solomon Islands Water Authority SOE – state-owned enterprise SOLFRIP – Solomon Islands National Forest Inventory Project SOPAC – South Pacific Applied Geoscience Commission SPC – Secretariat of the Pacific Community SPREP – Secretariat of the Pacific Regional Environment Programme TA – technical assistance TAC – total allowable catch TNC – The Nature Conservancy iii UNCCD – United Nations Convention to Combat Desertification UNDP – United Nations Development Programme UNFCCC – United Nations Framework Convention on Climate Change VMS – vessel monitoring system WB – World Bank WFC – WorldFish Center (formerly ICLARM) WHO – World Health Organization WPWP – Western Pacific warm pool WSSD – World Summit on Sustainable Development NOTE In this report, "$" refers to US dollars. Acknowledgements The authors wish to thank the many people who contributed directly or indirectly to the production of this report. Mr. Edy Brotoisworo of ADB’s Pacific Department (PARD) in Manila, has ably directed the overall project effort. Mr. Winfried Wicklein and Mr. Robert Guild, who have responsibility for ADB’s country programming for the Solomon Islands, provided valuable input and suggestions. Ms. Ophelia Iriberri and Ms. Pearl Cruz (PARD) provided logistical support. Mr. Lope Calanog, ADB’s Manila-based consultant on the project, has supported the preparation of the analysis, and done extensive research to obtain important background information. Thanks are expressed to the staff of the Economic Reform Unit (ERU), Department of Finance and Treasury, who provided office space during the consultancy. Ms. Dalcy Tozaka of the ERU was especially helpful in providing all necessary administrative assistance to the consultants for the duration of the project. Finally, the authors express gratitude to the many stakeholders including representatives of Solomon Islands Government, resource owners, nongovernmental organizations, regional and international institutions, community-based groups, academia, and private sector, who gave freely of their time to contribute their views and knowledge through the consultation process. For the stakeholders, the challenging task and hard work of building a sustainable future through effective environmental mainstreaming is only in its early stages. Best wishes are extended to them to make the goal of environmentally-sustainable development in the Solomon Islands a reality. v Executive Summary The Asian Development Bank (ADB) uses country environmental analysis (CEA) as a tool to assist with incorporation of environmental considerations into country partnership strategies (CPS), formerly referred to as country strategies and programs (CSP) and updates (CSPU), for its developing member countries (DMC). The CEA provides targeted information necessary for informed decision-making on environmental constraints, needs, and opportunities, including those that impinge upon poverty partnership agreements. The focus is on adding value to planned and ongoing development initiatives by (i) reducing environmental constraints; (ii) exploiting environment-related opportunities; and (iii) promoting actions that can lead to improved mainstreaming of environmental considerations into national economic development and planning processes. This CEA for the Solomon Islands describes (i) the general environmental status and trends in the country, including the role of the environment and natural resources in the economy; (ii) the existing policy, legislative, institutional, and budgetary frameworks for environmental management; and (iii) the principal constraints upon, and opportunities for, improving environmental sustainability. The CEA identifies not only proposed measures to strengthen ADB’s country program, but also other measures that government, other donors and international agencies could undertake to help to mainstream environmental considerations into future economic development planning and policy-making in the country. 1. Policy, Institutional and Legal Framework To address pressing needs that arose out of the recent ethnic conflict, the Government adopted a new policy and planning statement, the National Economic Recovery, Reform, and 1 Development Plan (NERRDP), in October 2003.0F The major focal areas, or “key strategic areas” (KSA) for development in the post-conflict context, articulated in the NERRDP 2003-2006, were (i) law and order; (ii) financial stability; (iii) ensuring good governance and democracy; (iv) revitalizing the productive sector and rebuilding supporting infrastructure; and (v) social services and health. In this framework, the environment is considered as “supporting infrastructure” that can facilitate the revitalization of the productive sector. The lower priority of the environment in the NERRDP, understandably, is due to the more immediate need to focus on post-conflict 2 economic recovery.1F However, even prior to the conflict, and despite some attempts in previous years, the Solomon Islands has never formulated a sustainable development policy, nor