Social Safeguards Due Diligence Report July 2017 Tuvalu: Outer Island Maritime Infrastructure Project Prepared by the Ministry of Communication and Transport for the Asian Development Bank. The social safeguard due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgement as to the legal or other status of any territory or area. TABLE OF CONTENTS ABBREVIATIONS 2 EXECUTIVE SUMMARY 3 I. INTRODUCTION 7 A. Project Background 7 B. Project Description 7 II. METHODOLOGY 8 III. PROJECT SCOPE AND LAND USE ON THE PROPOSED SITE 9 A. Project Scope 9 B. Land Requirement, Land Use and Status 10 IV. SOCIOECONOMIC INFORMATION 13 A. People and Community Within the Project Sites 13 B. Project Impacts 14 C. Project Impacts on Communities and Vulnerable Groups 15 D. Gender 15 V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 17 A. Project Stakeholders 17 B. Consultation and Participation Activities 19 VI. PROCESS OF SECURING LONG TERM ACCESS TO THE SITE FOR ASSOCIATED WORKS AND ROAD ACCESS 21 VII. GRIEVANCE REDRESS MECHANISM 23 VIII. INSTITUTIONAL ARRANGEMENTS 25 A. Responsibilities to Monitor and Update the DDR 25 X. BUDGET AND FINANCING 27 APPENDICES 28 Appendix A. Funafuti Workshop Minutes April 2016 & Nanumaga Kaupule Letter 9 June 2016 29 Appendix B. Nukulaelae Minutes of Meeting Endorsing the Workboat Harbour Project (24-25 April 2016) 41 Appendix C. Nukulaelae Meeting Minutes (May 2016) 44 Appendix D. Procedures for Leasing Land for Project Site by Government 48 Appendix E. Template for 3rd Party Verification Letter 49 Appendix F. Photographs (available upon request from ADB) 50 Appendix G. Tuvalu Native Lands Act 51 Appendix H. Nukulaelae Minutes of Meetings held in October 2016 56 Appendix I. Record of Meeting with tenant in house affected by construction (on School lease grounds) October 2016 73 Appendix J. Tree Survey Report and Construction Compensation Payment confirmation, April 2017 76 Appendix K. Confirmation of Lease Signing, Copies of Leases, and Third Party Validation of agreement between Nukulaelae Kaupule and Landowners 78 Appendix L. MOU and TPV forming agreement between Nukulaelae Kaupule and tenant in house on school grounds regarding relocation 87 Appendix M. Minutes of Nanumaga Meetings held October 2016 90 Appendix N. Minutes of Niutao Meetings held October 2016 98 1 ABBREVIATIONS ADB Asian Development Bank APs Affected Persons DDR Due Diligence Report DFAT Australia Department of Foreign Affairs and Trade GRM Grievance Redress Mechanism GEF Global Environmental Facility Km Kilometer MCT Ministry of Communications and Transport MFECP Ministry of Finance and Economic Planning MHARD Ministry of Home Affairs and Rural Development MNREE Ministry of Natural Resources, Energy and Environment MFAT New Zealand Ministry of Foreign Affairs and Trade PPTA Project Preparatory Technical Assistance PDA Project Design Advance PMU Project Management Unit RP Resettlement Plan SPS Safeguard Policy Statement TANGO Tuvalu Association of Non-Government Organizations UNDP United Nations Development Programme 2 EXECUTIVE SUMMARY The Tuvalu Outer Island Maritime Infrastructure Project (the full over-arching project including all phases of works under the ADB funding arrangements) will assist the government’s efforts to rehabilitate and improve the maritime infrastructure in three remote outer islands of Tuvalu including Nukulaelae, Nanumaga and Niutao. The Project scope includes: (i) Detailed design and construction of workboat harbour / small scale maritime facilities in Nukulaelae including new channel dredging, construction of a transit shed, and provision of a truck with crane. (ii) The improvement of boat ramps in Nanumaga and Niutao. (iii) Detailed design of small scale maritime facilities in Nanumaga and Niutao. (iv) Master planning for the transport and fishery sectors including feasibility studies for Nanumaga, Niutao, and Nui maritime facility improvements and other harbour development options. The tasks have ultimately been undertaken in the following packages: > Under the Project Preparatory Technical Assistance (PPTA) the tasks undertaken were: - feasibility studies for the improvement of maritime facilities were undertaken for Nukulaelae, Nanumaga, and Niutao; - concept designs were prepared for the workboat harbour at Nukulaelae; - concept designs were preapred for the improvement of existing ramps at Nanumaga and Niutao. > Under the Project Design Advance (PDA): - detailed design was completed for Nukulaelae, Nanumaga and Niutao workboat harbours; - procurement, including tender documentation and management and assessment of tenders, was undertaken for the construction of the Nukulaelae workboat harbour. > Under the Project Support and Master Planning (PSAMP) Project, Cardno will: - develop a Masterplan for the transport and fishery sectors; - undertake the construction supervision of: ▪ the workboat harbor / small scale maritime facilities in Nukulaelae, and ▪ The re-construction of boat ramps at existing sites in Nanumaga and Niutao. It is noted that the tender for the construction of the Nukulaelae work boat harbor and re-construction of boat ramps at existing sites in Nanumaga and Niutao has not yet been awarded, and it is anticipated to occur in the next month. It is also noted that the construction of the workboat harbors in Nanumaga and Niutao is currently planned to be funded by World Bank. The construction of the 3 workboat harbors in Nanumaga and Niutao fall outside of the scope of these works and this DDR. This document is based on the PPTA DDR, but has been updated to reflect all the activities undertaken under the PDA phase of the project. Indigenous Peoples Safeguard The project does not trigger the indigenous peoples safeguard as the affected inhabitants identify as mainstream Tuvaluans. Involuntary Resettlement Safeguard The project site in Nukulaelae does not trigger the involuntary resettlement policy as all affected lands and assets have been acquired through negotiated settlement. All affected persons voluntarily agreed to enter into leases which did not result in any government expropriation. One family leasing a house in Nukulaelae was transferred to a property with equal amenities and the same monthly rent (to the same owner and lessor, Nukulaelae Kaupule) due to potential impacts to their family from noise and dust during construction. Land Requirement and Status The sea side facilities will be constructed on Crown land1 while the associated structures such as transit shed and access road will require private land acquired through negotiated settlement. These private lands are generally bush area containing a small number of quality productive trees including coconut. The leases between the Kaupule and the landowners for the first year of construction have been calculated, and the Kaupule has paid for the first year (April 2017-April 2018) of the construction leases based on the rate of $3,000AUD per Acre. In line with Tuvalu law, the trees within these lease areas have been surveyed by the Department of Lands, and the appropriately calculated compensation has been paid to each of the landowners for the trees that will need to be cleared in the Nukulaelae work boat harbour lease area. The project sites where existing boat ramps will be rehabilitated in Niutao and Nanumaga do not involve displacement of people and physical structures. The boat ramps are built on the foreshore area which is on Crown land (foreshore area) thus will not require establishment of a government lease2. Impacts on the land and people by the future construction of the workboat harbours at Niutao and Nanumaga (to be developed by World Bank based on detailed designs developed during this current project) will need to be assessed according to funding requirements of the donor agency. Conclusion We confirm that the project complies with all ADB safeguards requirements and that as at the completion of the PDA phase, there are no outstanding safeguards issues for resolution. To the extent possible, the project team has prepared documents, processes and systems including a draft EMP, contractor requirements concerning working in the communities in the TOR, and a grievance resolution mechanism, to support the next (construction) phase of the project to meet ADB safeguards requirements. 1 Crown land, also known as royal domain or demesne, is a territorial area belonging to the monarch, who personifies the Crown. This is considered as government or public land, although the term still exists in Tuvalu which used to be a British Protectorate. 2 Foreshore and Land Reclamation Act (Section 2) defines 'foreshore'' as the shore of the sea or of channels or creeks that are alternately covered and uncovered by the sea at the highest and lowest tides. 4 Summary of Land Requirement and Land Use Current Status of Project Need for Additional Land Component Activities Land ownership or Components and/or Potential Issues Use 1. Construction of These will include: small scale 1. Construction of a new The foreshore area is Will require construction of maritime facilities flexmat boat ramp and a Crown land. access roads to link the (Nukulaelae) wharf at new site on wharf