The World Bank Mauritius: Rodrigues Airport Project (P180266) f Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 27-Aug-2023 | Report No: PIDA35642 Aug 01, 2023 Page 1 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Mauritius P180266 Rodrigues Airport Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EASTERN AND SOUTHERN AFRICA 20-Aug-2023 29-Sep-2023 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance, Airports of Mauritius Co. Economic Planning & Ltd (AML), Airport of Development Rodrigues Limited (ARL) Proposed Development Objective(s) The Project Development Objective (PDO) is to improve air transport access and enhance the climate resilience and productivity of the island of Rodrigues. Components Infrastructure Development Technical Assistance for Project Implementation and Sector Reforms Supporting Rodrigues’ sustainable development and the implementation of the SIDPR with a particular focus on water and food security Supporting the sustainable development of the Tourism sector in Rodrigues Contingent Emergency Response (CERC) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 200.00 Total Financing 200.00 of which IBRD/IDA 184.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing Aug 01, 2023 Page 2 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) International Bank for Reconstruction and Development (IBRD) 184.00 Non-World Bank Group Financing Other Sources 16.00 EC: European Development Fund (EDF) 16.00 Environmental and Social Risk Classification High Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context Mauritius 1. Mauritius is a Small Island Developing State (SIDS) consisting of several islands with a population of about 1.25 million people (2021) located off the southeast coast of Africa, neighboring the French island of La Reunion. Mauritius is one of the most stable democracies in Africa due to its strong institutions, and the current Government has a strong mandate. The country’s economy has made great strides since independence in 1968 and is now classified as an upper- middle-income economy. Mauritius has benefited from sound economic management and democratic continuity with peaceful transitions of power virtually uninterrupted since 1968. 2. Mauritius is one of Africa’s most remarkable success stories and has the fourth highest GDP per capita in Africa. At the time of independence in 1968, Gross Domestic Product (GDP) per capita was US$260, and agriculture (mainly sugar cane production) accounted for more than 22 percent of GDP. Over the following years industrial policies paved the way for economic diversification and employment creation and by 2013 economic transformation had reduced agriculture’s share of GDP to just 3 percent. Starting as a monocrop, inward-looking economy, Mauritius moved toward an export- oriented and diversified economy producing textiles, tourism, financial and Information and Communication Technology (ICT) services. Meanwhile, GDP expanded at an annual average of 5.3 percent or 4.4 percent in per-capita terms. Savings were high and reinvested in diversifying the economy. Per capita income of US$9,780 in 2015 is the 3rd highest in Africa and places it solidly in the upper middle-income category. Rodrigues 3. Rodrigues, a 108 km2 island located about 650 km north-east of Mauritius, is part of the Mascarene Islands. Its economy revolves around fishing, farming, handicraft, and a developing tourism sector. The island's population, as of 2022, is approximately 43,650, with the capital being Port Mathurin. Rodrigues holds autonomous status within the Republic and has its own RRA and Executive Council for socioeconomic policymaking. Despite its beauty, Rodrigues faces Aug 01, 2023 Page 3 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) vulnerability to natural hazards and climate change, including tropical cyclones, floods, sea-level rise, and water scarcity. The construction of a new runway aims to enhance the island's resilience to extreme weather and climate impacts. 4. The Rodriguan economy remains highly dependent on Mauritius. Rodrigues’ per capita income is significantly below the national average. Most households are rural, dependent on tourism-related activities and subsistence agriculture livestock-rearing, small-scale fishing, and microenterprises for income and food. Rodrigues island does not have the large-scale sugar cultivation industry of the main island, little to no export manufacturing and while tourism is a source of revenue, it is yet to develop to its full potential. Agriculture is characterized by the predominance of the production of staple food such as maize, sweet potato, cassava, onion, and garlic. The major livestock reared are cattle, sheep, pigs, goats, and poultry. Total livestock production not only meets the subsistence requirements of the island but also generates a small surplus for export to Mauritius – 7000 head of cattle was exported to Mauritius annually before the COVID pandemic. Meanwhile, fishing for subsistence, commercial and recreational purposes is deeply rooted in the culture of Rodrigues. While the octopus is the star product of the island, a wide array of fish species are caught in the lagoon. Off-lagoon or deep-sea resources remain largely untapped and represent a significant opportunity to further develop the fisheries industry of the island. 5. Employment in Rodrigues centers on service sectors, agriculture, forestry, and fishing, with limited manufacturing and construction for the local market. The pandemic significantly affected employment in 2020 and 2021. The updated Tourism Development Plan (TDP) in 2022 aims to attract higher-spending international tourists, encourage longer stays, and boost local spending through sustainable, low-volume, high-yield tourism targeting niche markets. 6. Over the last two decades the tourism sector has emerged to become the key pillar of the Rodriguan economy, however its full potential is yet to be developed. To enhance Rodrigues’ overall development and increase its tourist carrying capacity, the RRA is developing a Sustainable Integrated Development Plan for Rodrigues (SIDPR) supported by the EU and in consultation with local stakeholders. A Tourism Development Plan (TDP) has been in place since 2001 and has been recently updated by the RRA with support from the European Union (EU)1. The plan focuses on sustainable tourism to enhance the island’s carrying capacity and economic development, while preserving its natural ecosystem. Rodrigues carrying capacity and tourism-related income is well below several comparators and there is potential for growth through sustainable development and management. The TDP focuses on low-volume, high-yield tourism to ensure sustainable growth. To enhance the islands carrying capacity and improve the sustainability of the island, the SIDPR, calls for introducing a sustainable energy policy and for increased use of renewables for electricity production, with a target of 50% electricity production from renewables by 2030. It also includes measures to address climate change - for both mitigation and adaptation - and for greening of the island’s services, processes and infrastructure. It has also an important focus on wastewater management and water sustainability: the plan includes the construction of five desalination plants on the island to double potable water capacity; the construction and upgrading of reservoirs, dams, and boreholes, and the expansion of the successful rainwater harvesting scheme for island households. Government of Mauritius (GoM) and RRA are mobilizing large resources for the implementation of the SIDPR be it from own resources such as about $220 million for Rodrigues water sector, or with the help and/or borrowing from development partners such as the AFD, the EU, and the World Bank. Sectoral and Institutional Context Tourism Sector 7. Tourist arrivals on Rodrigues Island have been steadily increasing for the past 20 years, reaching a peak of approximately 78,000 visitors (domestic and international) in 2019 out of 100,000 passenger arrivals. The tourism 1 Rodrigues Tourism Development Plan 2022 Aug 01, 2023 Page 4 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) industry has been strong, with 220 registered tourism enterprises. The majority of tourists (around 70%) are Mauritian nationals, followed by 14% from Reunion Island, 11% from France, and the remaining 5% mainly from Europe, Australia, and South Africa. Peak air traffic occurs between October and May, with December being the busiest month. 8. Following the reopening of borders in March 2022 after the COVID-19 pandemic, Rodrigues experienced a surge in demand for air travel, highlighting the need for airport infrastructure improvements. The goal for 2030, as per the revised 2022 TDP, is to accommodate 120,000 passengers, necessitating airport upgrades to accommodate larger jet aircraft, reduce travel time, increase cargo transport capacity, and attract more direct flights. The expansion is expected to boost tourism's impact on the island's economy and society, projecting around 100,000 visitors by 2025 and 120,000 by 2030, contributing approximately US$26 million to the economy by 2030 and creating 2,600 to 3,000 direct jobs in the tourism sector. 9. The growth in the tourism sector must be balanced with environmental and social preservation efforts. Authorities plan to increase room capacity to around 1,500 with at least 63% bed occupancy rates to accommodate projected tourist numbers. The focus is on preserving Rodrigues' unique ecological and cultural assets. To attract higher- spending tourists, investments and upgrades in the tourism sector are needed, including improving service standards, upgrading accommodations and tourist sites, and providing training. Reforms are necessary to attract more investors and tourists, involving improvements in government-to-business services, streamlining and digitizing licensing and permits, enhancing air transport sector regulations, and implementing green certification programs to bolster Rodrigues' environmentally sustainable branding. Aviation Sector 10. The islands Plaine Corail Airport serves as the primary portal to the world but has limited capacity due to its short runway2. Currently, it accommodates only the Air Mauritius ATR-72 fleet3, affecting the airlines’ operating costs, ticket fares, growth, and cargo opportunities. The airport also plays a crucial role during emergencies (including medical) that necessitate evacuation to Mauritius. With daily flights to Mauritius and a few scheduled flights to Reunion Island during peak seasons, the airport's limited reach due to the short runway is a key impediment to development. To address these limitations a new runway is proposed at Plaine Corail, which aligns with the TDP, a new runway is proposed to increase capacity and allow larger aircraft for more direct flights from international locations, boosting tourism and reducing travel costs. 11. The new runway will also enhance the island's resilience to climate change impacts, improving disaster response during tropical cyclones, the airport becomes a critical point in its transport network. The current capacity constraints hinder rapid evacuation and disaster response, especially during a tropical cyclone. The new runway will accommodate larger aircraft, improving the island's preparedness and response to disasters, and ensuring a regular supply of necessities. 12. Furthermore, the construction of the new runway will enable air cargo services, vital for the import and export of high-value perishable goods, supporting the development of high-yield tourism on the island. Currently, cargo is predominantly transported by ship, with limited capacity and inefficient logistics.4 The new runway will meet the tourism industry's needs, particularly for time-sensitive import requirements and fresh products. Air transport will also be 2 The airport’s current runway is a short asphalt runway measuring 1,287m by 30m. 3 The ATR-72 is a twin-engine turboprop, short-haul regional airliner developed and produced in France and Italy by aircraft manufacturer ATR. The number "72" in its name is derived from the aircraft's typical standard seating capacity of 72 passengers. It only allows the carriage of 64 passengers without cargo due to the limited length of runway in Rodrigues. 4 Shipments to the island currently arrive once every week to ten days. Aug 01, 2023 Page 5 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) beneficial for perishable products like fresh fish, fruits, flowers, and urgent goods like medical supplies, machinery and spare parts. 13. The construction of the new runway will also have significant spillover benefits for Rodrigues' broader economy. According to a 2019 Deloitte study, the new runway will stimulate the agriculture and livestock sectors, creating approximately 600 direct jobs and developing the fishing industry. Moreover, the enhanced cargo space will allow local seafood to be made available for local consumption and export to Mauritius and other neighboring islands, potentially increasing the gross output of the fisheries sector. 14. The Airport Rodrigues Limited (ARL), a public company, operates the Rodrigues’ Plaine Corail Airport and is owned by Airport Holdings Limited (AHL). The ownership structure in the aviation sector in Mauritius comprises various public companies, including AML and ARL, each with separate Boards of Directors and accounts. Civil aviation in Mauritius and Rodrigues is regulated by the Department of Civil Aviation, under the Department of External Communications. Mauritius has pursued a gradual air transport liberalization policy since 2005 and has 60 bilateral air service agreements (BASAs), though they are restrictive and do not facilitate a liberal or “Open Skies� policy. The government has expressed willingness and support to review relevant BASAs to allow direct flights into Rodrigues in conjunction with the development of the new runway. 15. The project can help to address the gender gap in women’s employment in the transport and aviation sectors. Women make up only 17% of the transport and storage sectors, with female pilots accounting for just 6-9% worldwide and 1% in Africa5. ARL, in line with global trends, has only 25% female employees, none of whom work on activities related to aircraft maintenance6. Overcoming barriers across the career cycle and incorporating more women into the aviation sector can contribute to reducing the gender wage gap and addressing the supply shortage in the aviation sector. C. Proposed Development Objective(s) Development Objective(s) (From PAD) 16. The Project Development Objective (PDO) is to improve air transport access and enhance the climate resilience and productivity of the island of Rodrigues. Key Results 17. Progress toward achievement of the PDOs would be measured through the following PDO indicators: a. Number of unique destinations served by direct flights from Rodrigues (number); b. Improved climate resilience and operational safety (Yes/No); c. Number of direct jobs created on Rodrigues Island (disaggregated by gender) (number). D. Project Description 18. The proposed project will finance the following components: Component 1: Infrastructure Development a. This component will fund the construction of a new airport runway and associated facilities on Rodrigues Island. The primary element is the construction of a new 2,100 m long by 45 m wide runway, designed in accordance with ICAO standards. The runway will have a 140m clear strip on 5 https://pilotinstitute.com/women-aviation-statistics/ 6 Data provided by ARL (2023) Aug 01, 2023 Page 6 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) either side of the centerline and includes Runway End Safety Areas (RESA) complying with ICAO standards at either end. b. Apart from the new runway, the project will finance the construction of new taxiways linking the existing runway to the new one, the strengthening of part of the existing runway to be used as a taxiway and the construction of three new aircraft parking stands for jet aircraft. The scheme also includes expanding the current apron. Presently, Plaine Corail Airport has two aircraft stands for ATR-72 or smaller aircraft. The new runway requires three stands for single- aisle (A321/B737) jet aircraft in addition to the current two ATR-72 stands. These will be constructed west of the existing apron, designed for 'nose-in' and push-back operations. The apron expansion will have ground power units and a new hydrant refuelling system serving all new aircraft parking stands. c. The project also funds the construction of stormwater drains, airfield ground lighting, control systems, floodlighting, and navigational aids. Additional infrastructure includes a perimeter road, service road, fencing, a gate post, access roads, a car park, landscaping works, and new power and water supply systems. Building infrastructure includes a new control tower, a rescue and fire-fighting station, a boat house, ramp and jetty, a new meteo building, quarantine building, power center building, and cold storage and incinerator buildings. These facilities adhere to energy-efficient performance standards equivalent to Level 1 EDGE Certification and are fully electrified, using renewable energy sources. The design, operations, and maintenance of these facilities consider resilience features, particularly flooding. Component 2: Technical Assistance for Project Implementation and Technical Reforms a. Sub-component 2.1: Support to sector development and air transport liberalization. This sub-component will encompass technical assistance for developing a national air and maritime transport strategy, supporting the government to develop a strategy for liberalizing its aviation sector, and revising BASAs to include Rodrigues airport for select regional carriers. It aims to facilitate more direct international flights into Rodrigues and assess potential climate change impact on Plaine Corail airport infrastructure and operations. Additionally, it will finance capacity building to enhance safety oversight, bolster expertise, and ensure Mauritius’s compliance with the Chicago Convention and its annexes for effective aviation safety. Training initiatives will focus on climate change, resilience, promoting women in aviation, and aviation safety for ARL, AML, and relevant GoM staff. It will also support the government to review the implications of joining the Single African Air Transport Market (SAATM) to bolster regional economic integration. b. Sub-component 2.2: Support to project implementation. This will include the financing of necessary consultancy services, studies, equipment, and technical assistance for the direct management of the project, such as the recruitment of a Project Implementation Unit (PIU), the PIU’s Project Technical Units, environmental and social studies and audits, trainings, analysis of barriers and facilitators for women to participate in the aviation sector and development of Gender Action Plan, among others. Component 3: Support Rodrigues’ Sustainable Development and the Implementation of the SIDPR with a particular focus on water and food security Aug 01, 2023 Page 7 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) The main objective of this component will be to support local governments, rural communities, and the private sector on the island of Rodrigues to carry out small key investments and implement a sustainable territorial development strategy for Rodrigues. This component will finance technical assistance and some small key investments aimed at enhancing Rodrigues’ agri-food system (agriculture and fisheries) as well as water resources sustainability. Investments will be designed with significant participation by women in fisheries and agriculture. a. Sub-component 3.1: Strengthening of the local food systems. This sub-component aims to enhance food security, value addition, and reduction in food waste through technical assistance and capacity building for local authorities in areas like extension services, fisheries management, post-harvest efficiency, food safety, and climate-smart technologies. It seeks collaboration with local institutions and the private sector to secure reliable food access and, where possible, increase exports from Rodrigues. Activities also include fostering farmers organizations and SMEs, assessing key value chains, identifying potential new markets, and explore the potential for climate-friendly cold chains. These activities will shape post-harvest investment strategies, including through financing mechanisms to attract private investors. Technical support will align with the Sustainable and Profitable Fisheries Strategy 2023-2032 for Rodrigues, including a focus on the potential to develop untapped off-lagoon potential. Value chain analyses and interventions will consider gender perspectives to address barriers for women in agriculture and fisheries. b. Sub-component 3.2: Supporting improved water management and development. This sub-component will finance technical assistance as well as small investments to support the strengthening of Integrated Water Resources Management and Development (IWRMD) in Rodrigues Island. it includes: (i) small works for the protection and rehabilitation of existing water sources including desalination plants and for improving the quality of supplied water; assessing the potential of groundwater, identification and designing of a new reservoir(s) to reduce the demand-supply gap; (ii) development of sanitation improvement plans for safe treatment and disposal of wastewater and fecal sludge; (iii) institutional development support for Rodrigues Public Utility Company (RPUC) including on tariff setting to improve the financial sustainability of water supply operations as well as capacity building for staff, and (iv) TA to support the development of regulation and technical standards for desalination plants. Component 4: Supporting the Development of the Tourism Sector in Rodrigues a. Sub-component 4.1: Supporting tourism promotion and attraction of investments. Initiatives include a review of the Commission's (and other relevant agencies) institutional capacity followed by a tailored strengthening program focusing on structure, strategic alignment, resourcing and service delivery. Support will also be provided for the green certification of the island. An international branding consultancy will be hired to develop a distinctive brand for Rodrigues, currently lacking visibility and identity in the tourism markets. This involves creating a brand manual, training programs, brand signage, digital marketing strategies and promotional products, and upgrading local handicraft producers with a strong emphasis on women. This process will be coordinated with the Tourism Commission and private sector stakeholders. The sub-component will also support improvement of government-to- business (G2B) services, including digitization of registration, licensing, and permitting procedures in the Aug 01, 2023 Page 8 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) tourism sector to enhance attraction of investments. b. Sub-component 4.2: Skills development to support the tourism sector. This sub-component will finance a comprehensive skills development program in Rodrigues' tourism sector. Implemented by a specialized hospitality training entity, the program will offer targeted courses for a range of tourism-related roles including hotel management, service staff, maintenance personnel, tour guides, taxi drivers, artisans, and public officials. The trainings aim to uplift service standards, introduce professionalism, and promote career potential to the youth of the island. At least half of the participants will be female, with provisions made to alleviate transport and childcare constraints and to encourage women's participation in traditionally male-dominated professions. Trainings will also cover green sustainability practices. A preliminary assessment will be conducted to ascertain specific training and certification needs, ensuring that the program aligns with the demands of the tourism sector. c. Sub-component 4.3: Supporting sustainable tourism among SMEs. This sub-component will provide matching grants to small businesses for sustainable upgrades and retrofits aligning with Rodrigues' brand standards. This may include green upgrades, interior remodelling, compliance with safety standards, and promotional materials. The grant approval process will prioritize women-led or owned businesses and emphasize sustainability. Upgrades must comply with top energy efficiency standards, similar to the US Energy Star or the EU's A level standard. The facility will offer grants up to US$50,000 to incentivize formalization of businesses. These initiatives, coupled with targeted training and certification, will promote business formalization, women's empowerment, and environmental sustainability in Rodrigues' tourism sector. d. Sub-component 4.4: Strengthening sustainable tourism infrastructure. This sub-component will invest in enhancing tourism product offerings in Rodrigues, focusing on infrastructure, signage, trails, and site development. It will inventory key sites like caves, scenic overlooks, and turtle sanctuaries and invest in their improvement, including signage and grooming of trails. Existing trails may be upgraded and walking, hiking routes around the island enhanced. Landscape enhancements in village locations will be carried out. All initiatives will integrate harmoniously with the natural landscape, promoting conservation and sustainability. These efforts aim to enrich the ecological and natural experience of the island, supporting Rodrigues' brand attributes and promoting environmental responsibility. Component 5: Contingent Emergency Support Provision of immediate response to an Eligible Crisis or Emergency, as needed. . . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Aug 01, 2023 Page 9 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) Summary of Assessment of Environmental and Social Risks and Impacts . 19. The overall Environmental and Social Risk Classification (ESRC) for the project is rated High, with High Environmental Risk and Substantial Social Risk ratings. A preliminary Environmental and Social Impact Assessment (ESIA) was prepared in 2019, in line with the World Bank ESF and World Bank Group ESHG for the airport expansion based on preliminary design. A rapid gap analysis was undertaken by the Bank, to identify information gaps in the preliminary ESIA (2019) which were addressed during the preparation of a final ESIA, which will be consulted and disclosed prior to Board. The main impacts identified include among others, impact on critical endangered and endangered tree species, impact on marine ecology due to the proposed reclamation of 2.7ha of land, impact of natural resources such as availability of potable water, and lack of available landfill site including potential land and marine pollution due to poor waste management, increase contribution to Greenhouse Gas emissions and downstream cumulative impacts on the island due to the increase in air traffic and tourism, degradation of air quality due to waste incineration and air traffic. The preliminary ESIA identifies preparation of various management plans. Other instruments required include Stakeholder Engagement Plan (SEP) including a Grievance Mechanism (GM), Labor Management Procedures (LMP), GBV Risk Assessment, SEA/SH Action Plan and revised Marine and Terrestrial Biodiversity Management Plan. The timing and preparation of the additional management plans are captured in the ESCP. 20. The project will further support technical assistance (TA) under Components 2, 3 and 4 to support sector reforms, improve freshwater supply, cold chain and value addition systems to strengthen food security including fisheries and to develop tourism on the island. The technical assistance will largely focus on development of master plans and skills development with a low to moderate impact, while support to development of the cold chain and value addition and fisheries may have a moderate to significant downstream impacts if fishing activities are not adequately managed to prevent over exploitation and damage to marine ecosystems. The Terms of References for the TAs will incorporate environmentally sustainable considerations in line with national laws and those of good international industry practices to make provision for the consideration of adequate mitigation measures associated with downstream risks and impacts. Under sub-component 3.2, minor rehabilitation works to existing desalination plants are considered, the scope has not yet been defined, but is considered to likely have a moderate to low risk due to the allocated value of the activities. Similarly, the grant match to the value of 50,000 USD to support small scale enterprises and last mile infrastructure development under Component 4, are seen as low to moderate risk but can only be fully assessed once the scope has been defined. 21. The Social risk rating for this project is considered Substantial, due primarily to the potential adverse and irreversible impacts of physical and/or economic dislocation that may be caused by the project to households, businesses, a primary school, and a health care center located in or near the projects Component 1 footprint. These include people with farming, livestock herding and fishing interests, but the number of affected PAPs for Component 1 is expected to be relatively small, including 61 members of 15 displaced households and 37 non-residents involved in fishing, livestock herding or farming identified to date. However, the relocation of people to nearby communities and the need to share community land for farming and herding activities may cause some localized tensions or competition for scarce resources including water. The resettlement activities were already planned and implemented prior to the World Bank involvement in the project, so an audit was conducted of the status and outcomes of the resettlement process with recommendations provided to ensure the RAP implementation meets ESS 5 standards. The airport expansion, especially as it relates to national and island government plans for expansion of tourism and related economic activities could have downstream social impacts on the communities surrounding the airport but also more broadly across the island, which has limits on land availability, water resources or ability to manage waste products. Some stakeholders, including women and other vulnerable groups may be excluded from accessing benefits provide by the project and related economic opportunities. Component 3 water and food security investments, which will include some civil works, as well as some Component 4 tourism development activities such development of hiking and biking trails, may incur some social risks, Aug 01, 2023 Page 10 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) including possible physical or economic displacement, increased risk of SEA/SH (currently assessed as Moderate Risk) or exclusion of some groups or individuals from the benefits of these components. Given the relatively small-scale works anticipated for these components, these risks and appropriate mitigation measures will only be determined once Component 3 and 4 sites and activities have been determined and can be screened for social risks. 22. The project will be implemented by a Project Implementation Unit within the Airport of Mauritius Limited (AML), a public owned enterprise. AML is considered a sophisticated operator, with experience in implementing large airport construction projects including experience with implementation of lender funded airport and infrastructure construction projects under the French Development Agency and EU. It has an established integrated environmental and safety management system (IESMS) in line with international standards, including a carbon reduction and energy efficiencies management plan for its operations. The IESMS makes provision for rigorous health and safety and environmental training and the monitoring and review of system effectiveness. The existing IESMS systems will be assessed during appraisal to determine areas of strengthening to align with the ESF for implementation of existing facilities as part of the project. Experienced environmental and health and safety resources are established within AML and will be supplemented with social specialist resources to address social risks across all components of the project. E. Implementation Institutional and Implementation Arrangements 23. The project will be executed by Airport of Mauritius Ltd. (AML) with a dedicated Project Implementation Unit (PIU) based on Rodrigues Island. The Ministry of Finance, representing the Government of Mauritius, will be the borrower for this sovereign loan. A subsidiary agreement will transfer the funds to AML as a grant, defining AML's roles in project implementation, including technical, procurement, financial management, monitoring and evaluation, and environmental and social safeguard aspects. RRA will closely work with the PIU, specifically on construction planning, coordination, and safety oversight. 24. The PIU will be housed within ARL offices for seamless collaboration. Key staff will include a project coordinator, procurement specialist, FM specialist, accountant, social specialist, environmental specialist, civil engineer, airfield pavement engineer, aeronautical engineer, health and safety specialist. Additional consultants will be recruited as needed, and a Project Technical Unit, staffed by technical specialists, will be established within the RRA and overseen by the PIU, to support various project activities under Components 3 and 4 and to provide capacity building. 25. A Project Steering Committee (PSC) will provide regular project oversight, comprising representatives from AHL, Department of External Communication, Department of Civil Aviation, RRA, and the Ministry of Finance. AML will work closely with all relevant agencies and sectoral institutions. For civil aviation-related activities, the PIU will closely collaborate with the Department of Civil Aviation. To ensure alignment with the sustainable development plan, a territorial development working committee will provide technical input to the PSC, comprising staff from key sectors nominated by the RRA and a private sector member. Private sector consultations will be held to guide tourism-related activities. 26. The project will follow the Project Operations Manual (POM), which will detail implementation arrangements, rules, guidelines, standard documents, and procedures. The POM's preparation, initiated with World Bank support, is expected to be completed two months post project effectiveness. Any revisions to the POM require World Bank review and approval. . CONTACT POINT Aug 01, 2023 Page 11 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) World Bank Marc Marie Francois Navelet Noualhier Senior Transport Specialist Edward Andrew Beukes Senior Transport Specialist Wei Yan Transport Economist Borrower/Client/Recipient Ministry of Finance, Economic Planning & Development Visvanaden Soondram Deputy Financial Secretary vsoondram@govmu.org Implementing Agencies Airport of Rodrigues Limited (ARL) Gail Leong Kye Airport Manager gail.leongkye@arl.aero Airports of Mauritius Co. Ltd (AML) Navin Bhobun Manager of Projects, AML navin.bhobun@aml.aero FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Marc Marie Francois Navelet Noualhier Task Team Leader(s): Edward Andrew Beukes Wei Yan Aug 01, 2023 Page 12 of 13 The World Bank Mauritius: Rodrigues Airport Project (P180266) Approved By Practice Manager/Manager: Country Director: Zviripayi Idah Pswarayi Riddihough 27-Aug-2023 Aug 01, 2023 Page 13 of 13