The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 18-Oct-2022 | Report No: PIDC34818 Oct 01, 2022 Page 1 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Fiji P178694 Fiji Tourism Development Program in Vanua Levu (P178694) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EAST ASIA AND PACIFIC Mar 09, 2023 May 25, 2023 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Economy Airports Fiji Limited, Fiji Roads Authority, Labasa Town Council, Ministry of Commerce, Trade, Tourism and Transport, Ministry of Fisheries, Ministry of Forestry, Ministry of Waterways and Environment, Savusavu Town Council, Water Authority Fiji Proposed Development Objective(s) The development objectives of the Project are to address urgent infrastructure and essential service gaps in Vanua Levu, increase private sector participation in tourism, and reduce negative environmental externalities of tourism. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 40.00 Total Financing 40.00 of which IBRD/IDA 40.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing Oct 01, 2022 Page 2 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) International Development Association (IDA) 40.00 IDA Credit 40.00 Environmental and Social Risk Classification Concept Review Decision Substantial Track II-The review did authorize the preparation to continue Other Decision (as needed) Oct 01, 2022 Page 3 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) B. Introduction and Context Country Context 1. Fiji is considered the hub of the South Pacific, located at the crossroads of Polynesia and Melanesia, providing both economic and transportation services to the region. The country encompasses 18,000 square kilometers in land size and more than 1.28 million square kilometers in its exclusive economic zone. It is the most populous of the Pacific Island Countries (PICs), with 889,953 people (2019) spread across 110 of its 330 islands. Most of the population lives on the two largest islands, Viti Levu and Vanua Levu. Vanua Levu, the project location, hosts about 15 percent of the country’s population in just under 5,600 square kilometers of rough, hilly terrain and coastline surrounded by coral reefs. 2. Fiji is especially vulnerable to natural disasters and climate events. Frequent occurrences of tropical cyclones, together with high exposure to rising sea levels, floods, and landslides, makes Fiji one of the world’s most vu lnerable nations to climate change and climate-related disasters. These natural hazards impose high costs on the country and impact the viability of key economic sectors, with often disproportionate impacts on Vanua Levu given its location. The average losses due to floods and tropical cyclones are estimated at more than FJD 500 million (USD 220 million equivalent) per year, representing 5 percent of Fiji’s gross domestic product (GDP).1 Long-term warming, continued sea- level rise, and increase in the frequency and intensity of extreme weather events would lead to severe damage to infrastructure, with adverse impacts on communities and livelihoods in Fiji. 3. Tourism plays a crucial role in Fiji’s economy. Fiji is one of the world’s 20 most tourism-dependent nations. The sector directly and indirectly contributes nearly 40 percent of annual GDP.2 It accounted for approximately FJD 3 billion 1 Fiji Climate Vulnerability Assessment. 2 According to 2019 estimates from the World Travel and Tourism Council. Oct 01, 2022 Page 4 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) (USD 1.32 billion) of earnings in 2019.3 Tourism is a major source of income for Fijians and supports nearly one-third of the labor force. In Vanua Levu tourism is one of the few economic sectors that offers formal employment and entrepreneurship opportunities, positioning it as a dominate sector for growth. In addition to tourism’s direct contributions to the economy, linkages to other sectors stimulate growth and lead to economic spillover effects. 4. Limited development outside of tourism in Viti Levu has contributed to persistent poverty, especially in rural areas and those away from tourism hubs. The Household Income and Expenditure Survey (HIES) indicates a national poverty rate of 24.1 percent. Poverty is substantially higher in rural areas (36.5 percent) than urban areas (14.0 percent), particularly given a lack of formal employment and limited tourism opportunities currently available in rural area. There are also striking regional disparities with the highest rates of poverty in the Eastern (39.2 percent) and Northern (29 percent) Divisions,4 the latter predominately comprised of Vanua Levu and surrounding small islands. 5. Since 2020, the COVID-19 crisis and tropical cyclones have severely impacted Fiji’s tourism industry . Before the COVID-19 pandemic, international visitor arrivals to Fiji grew consistently for nearly 10 years, reaching 894,000 in 2019. The pandemic caused a steep drop-off—2021 figures were 96 percent lower than in 2019. The economic impact has been devastating. More than half of private tourism businesses were shuttered or fully closed by mid-May 2020. This was exacerbated by two major tropical cyclones—Yasa in December 2020 and Harold in January 2021. Damage from Tropical Cyclone Yasa was concentrated in the Northern Division. A survey by the International Finance Corporation (IFC) and the GoF found that Yasa impacted 95 percent of businesses in the Northern Division, causing FJD 24.9 million (USD 10.95 million) in damages. Real GDP contracted by 17.2 percent in 2020 and 4.1 percent in 2021. 6. Fiji’s full economic recovery is expected to be achieved over the medium term. Fiji’s border reopening in December 2021 is supporting an economic rebound. The Reserve Bank of Fiji is forecasting that the country will reach 55 percent of 2019’s international arrivals in 2022, 85 percent in 2023, with full recovery to pre-pandemic levels by 2024. Fiji’s GDP is anticipated to grow by 12.4 percent in 2022, 7.8 percent in 2023, and 4.6 percent in 2024, assuming tourism’s full recovery to pre-pandemic levels. Other key drivers of growth are the service, industrial, and primary sectors. Risks that could derail the growth outlook include the Ukraine war, natural disasters, reemergence of a pandemic, and global recession. Fiji’s dependence on tourism is also a risk to sustained recovery and highlights the need for diversification, including within the sector itself. 7. Fiji’s women offer untapped productive potential. While educational attainment up to secondary level is on a par for females and males, women’s participation in the labor force is 37 percent lower than that of men—one of the largest gaps in the East Asia and Pacific (EAP) region. This gap is especially pronounced on Vanua Levu, where just 29 percent of women participate in the labor force, compared with 82 percent of men.5 Unpaid domestic work and care is almost entirely done by women, a key constraint to them working outside the home. Within tourism and related sectors, women are about one third of the workforce, predominately in lower paying jobs, and only hold a quarter of managerial and professional level positions.6 Many women in the sector, especially in rural areas, work informally and in self- employment, leaving them vulnerable to external shocks. Waged employees, representing most women working in tourism, suffered immediate lay-offs as COVID-19 hit. Gender-based violence (GBV) remains a persistent issue in Fiji. 3 Government of Fiji, Ministry of Commerce, Trade, Tourism and Transport. 2019. Fiji International Visitors Survey. 4 Fiji is divided administratively into four division: Central (including the capital of Suva), Western (main tourism hub), Northern (including Vanua Levu), and Eastern. 5 HIES 2019-2020. 6 Asian Development Bank, Fiji Country Gender Assessment, 2015 Oct 01, 2022 Page 5 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) Sectoral and Institutional Context 8. Tourism is the backbone of Fiji’s economy and the Project aims to unleash Vanua Levu’s potential for growth . The homogenous nature of Fiji’s tourism sector makes it vulnerable to external shocks. The Government is working to address this risk by diversifying its tourism sector—increasing both its geographic spread and the type of experience on offer. Vanua Levu’s abundant and untapped nature-based tourism resources offer great potential to help achieve this. While only 4 percent of international tourists currently visit Vanua Levu, they are Fiji’s highest-spending visitors (between 70 percent and 200 percent more than the average traveler to Fiji). Detailed market demand analysis shows the main barriers to Vanua Levu’s development as a tourist destination have been insufficient transport infrastructure and essential services, uncoordinated plans and institutions, and a cumbersome business environment. Addressing these binding constraints will boost tourism development, enhance livelihood of local communities, and improve business climate for the private sector. The project presented in this Concept Note is the first stage of a 10-year, multiple phase program that support a whole-of-government approach to address these challenges and unleash Vanua Levu’s potential. 9. The Government’s aim is for a more sustainable, inclusive, and resilient tourism sector. In 2019, Fiji attracted 40 percent of all tourists to the Pacific, 64 percent of them short-haul, mass-market arrivals from Australia and New Zealand.7 Reliance on these relatively low spend markets, and concentrating tourism spend in a few well-developed regions, has limited the sector’s benefits to Fiji’s economy. To better enable Fiji’s recovery from the pandemic and to build high value arrivals, the Government has adopted a long-term strategy to grow the value of the tourism sector. It focuses on boosting arrivals from high-value, long haul markets, ensuring coordination among the many stakeholders, increasing the share of revenue retained in the local economy, and spreading the benefits of tourism throughout the country. Vanua Levu is well positioned to support this strategy as it already attracts a larger share of high value tourists than the national average (55 percent versus 23 percent). 10. Vanua Levu’s success as a high-value tourism destination faces three main challenges—a) infrastructure and essential tourism-enabling services; b) a lack of coordination and planning; and c) natural and climate-related hazards. 11. a) Infrastructure and essential tourism-enabling services. A detailed IFC analysis, conducted as part of the preparation for this operation, concluded that improving Vanua Levu’s infrastructure and essential services is a priority for destination growth and to stimulate private sector investment, both of which are catalyst for job creation.8 The limited convenient, regular, affordable, and quality air and sea access to Vanua Levu has inhibited investment on the island. Infrastructure for solid waste and wastewater management is insufficient for current demand, posing an environmental threat that will only increase as tourist numbers grow. Water supply infrastructure is inadequate and outdated and requires modernization to reach the required level of visitor readiness. Most tourism businesses in Savusavu and Labasa rely on expensive, air polluting, and high carbon-emitting diesel-generated power, and climate-friendly energy solutions are cost-prohibitive and in limited supply. Although information and communications technology (ICT) connectivity improved in 2019 with the landing of the submarine cable, some areas still lack adequate connection. 12. b) National coordination and planning need to improve. Tourism policy, research, development, and investment are guided by Fiji’s Ministry of Commerce, Trade, Tourism and Transport (MCTTT) in partnership with Investment Fiji (IF), the country’s investment promotion agency. Tourism marketing is led by Tourism Fiji, a statutory body overseen by a joint public and private sector board and staffed with local and international tourism experts. Other than Tourism Fiji’s board, there is no formal tourism committee supporting coordination in the sector. This puts additional pressure on 7 Short haul visitors to Fiji from Australia and New Zealand spend FJ$2,503 and FJ$2,237 per trip, respectively, while higher value markets such as the United States (FJ$4,673), Canada (FJ$7,868), Europe (FJ$5,893) and China (FJ$4,805) spend significantly more. 8 IFC, Vanua Levu Tourism Market Demand Assessment, 2020 Oct 01, 2022 Page 6 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) MCTTT’s Tourism Unit to lead consultations with line ministries and agencies. Line ministries do not always coordinate their activities in the tourism sector, and often do not fully understand the holistic or market-driven nature of tourism. In some cases, this has led to contradictory policies and regulations created by multiple ministries, or inappropriate investments at sensitive tourism sites. Coordination issues have also been hindered by vacancies in several senior positions in the Tourism Unit. Private sector coordination is largely facilitated by the Fiji Hotel and Tourism Association and a collection of other industry and regional associations that advocate to Government. 13. Numerous uncoordinated plans exist for tourism development in Vanua Levu. National, regional, and town level plans for development in the Northern Division, Savusavu, and Labasa all have similar visions for sustainable economic growth through resilient investments, mainly focused on tourism development. These are aligned with the Fijian Government’s core commitment to sustainable economic development, with tourism identified as a transformative sector in its 5-Year (2017–2021) and 20-Year (2017–2036) National Development Plan (NDP) and its long-term Look North Policy. However, most plans are not well coordinated and vary in the baseline data used to inform forecasting and infrastructure capacity planning. There is no concerted approach to highlight gaps in planning or facilitate public-private investment and collaboration opportunities. There is a critical need for coordination to bring together the plans and visions of the numerous agencies, organizations, and businesses involved. 14. Vanua Levu needs coordinated destination and investment planning to rectify gaps in its infrastructure, marketing, and tourism services. The current lack of a structured approach impacts the long-term viability and environmental sustainability of its tourism. The Blue Town plan for Savusavu, supported by the local community and the Government, is the only recent sustainability-focused concept to support economic development and tourism growth.9 Similarly, while Vanua Levu’s natural assets provide an ideal foundation for sustainable tourism, there are limited products providing reliable experiences. Marketing efforts for Vanua Levu have been minimal, particularly when compared with Fiji’s main tourism areas. The Fijian Government has recognized the importance of valuing natural resources and developing blue economy approaches for economic growth. It is driving the focus on protecting Vanua Levu’s natural assets, with development agency support. Increased formal management and coordination, targeted marketing, and formal product development will be necessary for the island to align with the Government’s new national sustainable tourism framework and attract greater investment and higher-spending visitors. 15. c) Natural and climate-related hazards. Fiji’s disaster risk profile is elevated because of its high levels of economic and social vulnerability to natural and climate-related hazards and relatively low degree of resilience. The 2019 INFORM Risk Index for Global Crisis Severity ranks Fiji 127 of 191 economies worldwide.10 The country is highly exposed to tropical cyclones, flooding (especially coastal and riverine flooding), earthquakes, and tsunami. Continuing climate change is likely to increase the frequency and intensity of hydrometeorological events—especially storm surges, drought, and extreme rainfall—representing a major threat to livelihoods, infrastructure, and human well-being. Climate vulnerability also leaves Fiji highly exposed to potential climate-related damage, including the degradation of key natural resources, such as coral reefs and associated fisheries. Consequently, the projected impacts of climate change are most likely to affect Fiji’s poor, remote communities, as well as critical natural-resource-dependent services sectors like tourism. 16. Tourism and related retail activities are an important source of employment for women on Vanua Levu. Nearly a third of women’s employment is in tourism and retail—wage employment opportunities are concentrated in hospitality, and self-employment is dominated by retail. On Vanua Levu about one third of women’s self-employment is in the manufacture of handicrafts. Tourism-related entrepreneurship, particularly eco-tourism, has potential to increase 9 The Blue Town plan is a public-private development model that promotes income generation for the town while conserving the marine environment. 10European Commission. 2020. INFORM Index for Risk Management. Fiji Country Profile. https://drmkc.jrc.ec.europa.eu/inform- index/INFORM-Risk/Country-Profile/moduleId/1767/id/419/controller/Admin/action/CountryProfile. Oct 01, 2022 Page 7 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) women’s economic empowerment, especially in rural and remote communities. Women’s tourism businesses face disproportionate barriers to launch, access finance, and grow. In addition, traditional decision-making structures related to land use and the management of natural resources within communities often exclude women. Relationship to CPF 17. The proposed project is fully in line with the 2021–24 Country Partnership Framework (CPF) for Fiji to support transformation economic growth. This is the first standalone country strategy and the first reflecting Fiji’s eligibility for International Development Association (IDA) funds following revisions to the Small Island Economies Exception. The CPF recognizes that Fiji must focus on the recovery of tourism in the short term while working over the long term on economic diversification, including within the tourism sector itself. Fiji needs to leverage its geographic location and natural endowments to promote links between coastal and marine tourism and infrastructure as part of its Blue Economy. The project will contribute to the higher-level outcomes of the CFP and Fiji’s national development plans of transformation growth through private sector development. 18. The proposed project aims to foster private sector-led growth and inclusive economic opportunities (CPF Focus Area 1). The project will involve tourism development policies, strategies, and institutions to establish the enabling environment and institutional capabilities needed to attract new investors and retain and grow existing tourism businesses. It will also involve the accelerated development of infrastructure to enable private sector investment, particularly outside the main island of Viti Levu. In addition, the project will provide capacity-building on product development, marketing and branding, and improved access to finance. 19. The proposed project aims to help Fiji become more resilient to climate change and natural disasters (CPF Focus Area 2). The project will have a specific component to enhance the resilience and preparedness of Vanua Levu’s tourism sector against climate-induced disasters. In addition, the project will build resilience by supporting the sustainable use of ecosystems and the services they provide, as well as making essential tourism infrastructure more resilient to the impacts of climate change and associated natural hazards. 20. The proposed project is linked to the International Finance Corporation’s area of focus—revitalizing sustainable tourism—during the CPF period. The IFC will focus on revitalizing sustainable tourism while supporting economic diversification, aided by accelerating the development of sustainable infrastructure. This focus is expected to restore and create jobs in the short term and put Fiji’s economy on a stronger footing in the longer term. Furthermore, IFC’s Fiji Business Plan of May 2020 intends to support the development of Vanua Levu as a tourism destination to maximize tourism’s economic benefits, increase services, and create jobs. 21. The proposed 10-year financing as a multiphase programmatic approach (MPA) is a comprehensive 3-phase tourism development program in Vanua Levu that will support the realization of Fiji’s national development, private sector growth, and green growth plans. The program has two main aims: a) to improve the resilience and sustainability of the tourism industry, including short-term recovery and longer-term diversification and high-value growth; and b) facilitate the execution of existing Government plans. The MPA approach provides the long-term engagement and commitment Fiji needs to integrate multilayered plans and coordinate multifaceted sectors to deliver sustainable benefits to the people and help leverage private investments. The MPA is designed to support the Government’s goals, set out in the 5 and 20 Year NDPs, to become a world-class destination in ways that increasingly adds value to the local economy, expands high-value market segments, and supports the development of micro, small, and medium tourism Oct 01, 2022 Page 8 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) enterprises (MSME). The Fijian Government committed to creating sustainable economic opportunities in the Northern Province in its 2015 Look North Policy, which aims to diversify and support economic development in the province through investments in infrastructure, economic development, and education. It is expected that the 10-year MPA will expand tourism destinations and activities in Vanua Levu, deliver economic benefits and improved livelihood for local communities, including women and youth, and relieve pressures on natural resources. 22. The program is linked to the Fijian Government’s core commitments to deliver diversified and green economic growth and build climate resiliency. The MPA will directly contribute to the National Green Growth Framework11 by supporting biodiversity conservation, strengthening environmental stewardship, adopting risk management practices, and incentivizing the efficient use of natural resources. Within the tourism sector, the program will build on and execute portions of Fiji’s new national sustainable tourism framework and Tourism Fiji’s Corporate Plan (2022–2024). Consultations with the MCTTT highlighted that a continued focus on tourism development in Vanua Levu will be a key priority of the new framework, because it will help achieve the overarching goals of increasing visitors from high-value niche markets and spreading the benefit of tourism throughout the country. Similarly, the MPA supports destination development and expansion, experience development, and the sustainability priorities laid out in Tourism Fiji’s Corporate Plan (2022–2024). The activities and outcomes of the MPA are directly aligned with the Government’s overall strategy for tourism development as will be defined in the new framework. 23. The program will contribute directly to other line ministry and agency plans that promote sustainable tourism growth in Vanua Levu. The iTaukei Land Trust Board’s (TLTB) Master Land Use Plan for the Greater Northern Region (2020–2040) provides a blueprint for leasing native lands across Vanua Levu. Through a consultative process with communities and investors, and in line with NDP and Green Growth Framework, TLTB created a plan to prioritize different investments at the community level, including tourism. It was also built to reflect the priorities laid out in the TLTB Tourism Policy (2010), which promote tourism expansion and diversification along with a core focus on sustainability. Both plans lay out tourism’s key role in economic development for Vanua Levu, especially in the tourism hub of Savusavu. The MPA will support the implementation of the objectives of both plans by supporting product development, facilitating tourism investment, and strengthening community benefit from tourism. Similarly, the MPA will support the MSME Fiji program, a division of MCTTT guided by the MSME Policy (2020), which aims to stimulate the inclusive and sustainable development of MSMEs, and the National Trust of Fiji (NTF), a statutory body that oversees the promotion and protection of Fiji’s heritage and some protected areas. C. Proposed Development Objective(s) 24. The Project Development Objectives (PDOs) of Phase I IPF are to address urgent infrastructure and essential service gaps in Vanua Levu, increase private sector participation in tourism, and reduce negative environmental externalities of tourism. Key Results (From PCN) 25. The following results indicators have been identified to measure the achievement of Phase I’s PDOs. a. Number of tourism MSMEs with new or increased sales b. Number of people with access to resilient infrastructure (air and road transport) 11 Released in 2014 and considered a living document with no specific end date. Oct 01, 2022 Page 9 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) c. User satisfaction with essential services provision (sex disaggregated) d. Number of new locally managed marine areas established in Vanua Levu e. Whole-of-government approach Tourism Master Plan created and endorsed D. Concept Description 26. Phase I of the MPA (the Project) will focus on setting the foundational framework for sustainable tourism in Vanua Levu and implementing selective demonstration programs. It will support resilient and sustainable tourism development in Vanua Levu through integrated destination development, enhanced connectivity and essential services infrastructure, and improved biodiversity and natural resource management. These investments have been prioritized in consultations with Government, the private sector, and community stakeholders. The project will deliver benefits to the local economy through community-based tourism and private sector development. The four components of the project are described in paragraphs below. Component 1. Improving Destination Management, Coordination and Conservation 27. The investments under this component are essential to sustainable and resilient destination development in Vanua Levu and will set the foundation for long term tourism growth. The component will focus on (a) integrated tourism master planning and destination management and coordination; (b) tourism MSME recovery, expansion and skills development to increase market-driven tourism products and services; (c) natural resource management and biodiversity conservation to protect tourism’s underlying assets; and (d) emergency management and preparedness for tourism. Component 2. Building Resilient Tourism Infrastructure 28. The investments under this component address key barriers to tourism access and essential service provision in Vanua Levu. The component will focus on: (a) investments in improving existing air connectivity infrastructure and services; (b) essential facilities upgrades and investments required for local population services and natural resource protection to meet urgent needs and resilient standards; and (c) cityscape improvement of key tourism hubs in Vanua Levu through interim and permanent interventions. The project will finance planning and direct investments in all three areas, which will be expanded during future program phases. Phase I will give immediate attention to urgent infrastructure and essential service gaps that benefit the local population and increasing Vanua Levu's capacity to sustainably accommodate a growing number of tourists. Fiji Airports Limited, Fiji Road Authority and Fiji Port Authority will all play a critical role in implementing these investments. Component 3. Improving Enabling Environment for Tourism and Capacity Building and Project Management 29. The investments under this component will address capacity challenges within implementation agencies to support institutional coordination and an enhanced enabling environment for private sector-led sustainable tourism. During consultations, nearly all implementing agencies noted the need for capacity building and retention to provide efficient government services. This was paired by a call from the private sector and investors to strengthen government service provision in Vanua Levu and streamline the regulatory environment for private sector growth. In order to support sustainable destination management and project monitoring, it will provide capacity building for tourism and project indicator statistics enhancements, especially for supply side data on jobs, investments, tourism MSMEs, and products. Oct 01, 2022 Page 10 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) This component will also establish baselines and targets for PDO and PrDO level indicators to ensure projects results can be monitored accurately. The project will also build the capacity of statutory bodies, such as FRA, WAF, the National Trust of Fiji and others to ensure adequate skills are built and retained within Fiji to develop and manage sustainable and resilient infrastructure. Similarly, the project will work with TLTB to build capacity and increase efficiency in land leasing for tourism to help stimulate additional private sector investments, especially for community-based tourism. 30. The project will develop and institutionalize coordination mechanisms to address gaps in sector management. Given the cross-cutting nature of the tourism sector and the necessary whole-of-government approach to sustainable and resilient tourism development, enhanced institutional coordination and improved efficiency and accountability across government is required. The Government and World Bank Group have been engaging with stakeholders in Vanua Levu since early 2020 when the project idea was originally initiated. There is strong and full support from government, community and private sector stakeholders for the operation. The project will support continued intra-government coordination through a steering committee. The project will aim to systematize these coordination initiatives so that they become permanent and outlive the project. 31. This sub-component will support the establishment of the project management unit (PMU) at the beginning of the project to support project management during preparation and implementation after World Bank approval to ensure cost-efficient, timely, and quality delivery of project activities and results. This will include financing cost related to TA, works, goods, workshops, and operational costs to support the project’s day-to-day implementation and management, including procurement, financial management (FM), the World Bank’s Enviro nmental and Social Framework (ESF), social inclusion, and gender competency development, including a project gender action plan, preparation of annual work plans, budgets, financial reporting, project reporting. It would also finance developing a monitoring and evaluation (M&E) system to report on the project results (disaggregating by gender, where appropriate) and systematize project lessons learned. It will be implemented by MCTTT. The PMU will also support the project operation team in each IAs with TA and capacity building. Component 4. Contingent Emergency Response Component (CERC) 32. This standard contingency component with zero budget can be triggered by a joint Government of Fiji and World Bank agreement in case of an emergency. The component had been embedded in the project to finance early recovery and/or specific emergency works, goods, and services, in case of eligible emergencies, crises, or disaster caused by natural or man-made hazards, including public health crises. The mechanism is designed to support enhancement of preparedness, early recovery activities, and provision of rapid response to disaster that can be implemented in a brief period. The component was considered necessary because of the inherent risk in Fiji’s current socioeconomic and climate related hazards (cyclone, flooding, an aggravation of the state of fragility, post disaster impact from cyclones, etc.), which could potentially shift priorities at short notice. Reallocation of funds to CERC can only be done when there is a serious disruption of the functioning of a community or society causing widespread human, economic, or environmental losses that exceed the ability of the affected community or society to cope using its own resources. Following such a disaster event where both the region and national resources cannot sufficiently and address the situation, the Government may trigger activation of CERC according to national law and subject to the World Bank’s activation policy. Oct 01, 2022 Page 11 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . 33. The Environmental and Social Risk for the Project is Substantial. The Project is expected to provide considerable E&S benefits through the promotion of sustainable, community and nature-based tourism, job creation, protection of marine and terrestrial areas, improved solid waste and wastewater management, and the promotion of renewable energy sources. Key E&S risks and impacts associated with the Project include land clearance for construction and agriculture; generation of solid waste, waste water, dust, and noise; resource consumption; inequitable benefit sharing; exclusion of or discrimination against disadvantaged or vulnerable people; negative social and economic impacts to community members from changed land use; destruction of cultural heritage; and increased gender based violence or sexual exploitation and abuse and sexual harassment (SEA/SH). 34. Environmental and social risk will be managed through implementation of the following: 1) A Strategic Environmental and Social Assessment (SESA) to systematically examine the risks and impacts associated with the implementation of the Tourism Master Plan and activities and investments directly financed under the project. 2) A Resettlement Framework (RF) to guide land acquisition, physical and economic displacement including with respect to involuntary resettlement, land acquisition, restrictions and use. 3) A Stakeholder Engagement Framework (SEF) and grievance mechanism (GM) to establish and guide a structured approach for community outreach and two-way engagement with stakeholders. 3) A Labor Management Procedure (LMP) to identify key aspects of labor planning and management including how the project will protect and support i) working conditions and management of worker relationships, ii) protecting the workforce, iii) receive and address grievance mechanism, iv) include a COVID safety protocol v) a code of conduct for prevention and mitigation of Gender Based Violence, SEA/SH and Sextually Transmitted Infections, vi) incident reporting and vii) a mandated age verification procedure for all workers. 35. The MCTTT have not previously implemented a World Bank financed project and, as such, will require capacity building and support to implement ESF commitments. The MCTTT will establish a Steering Committee (SC) to oversee project management and a PMU to manage the day-to-day project activities through the engagement of an assigned Project Manager and designated staff to oversee key functions including financial management, procurement, environmental and social risk management. Three core staff will fulfil project commitments under the World Bank's Environmental and Social Framework; one Environment and Social (E&S) Specialist, one Environmental Officer and one Social Officer. 36. The activities that will be supported under the following MPA phases have not yet been determined but, given that they will be guided by the Tourism Master Plan and technical assistance work supported under this project, environmental and social risk will be assessed and managed through i) the SESA as it informs the Tourism Master Plan; and ii) the consideration of E&S risk and impacts into technical assistance activities such as feasibility studies. Oct 01, 2022 Page 12 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) . CONTACT POINT World Bank Fei Deng, Iretomiwa Olatunji Lead Transport Specialist, Program Leader Borrower/Client/Recipient Ministry of Economy Shiri Krishna Gounder Permanent Secretary shiri.gounder@economy.gov.fj Implementing Agencies Airports Fiji Limited Rowan Chalmers CEO ceo@fijiairports.com.fj Fiji Roads Authority Kamal Prasad CEO info@fijiroads.org Labasa Town Council Mohammed Faiz Ali CEO labasatcouncil@gmail.com Ministry of Commerce, Trade, Tourism and Transport Shaheen Ali Permanent Secretary shaheen.ali@govnet.gov.fj Ministry of Fisheries Pene Baleinabuli Permanent Secretary pene.baleinabuli@govnet.gov.fj Ministry of Forestry Oct 01, 2022 Page 13 of 14 The World Bank Fiji Tourism Development Program in Vanua Levu (P178694) Pene Baleinabuli Permanent Secretary pene.baleinabuli@govnet.gov.fj Ministry of Waterways and Environment Joshua Wycliffe Permanent Secretary joshua.wycliffe@govnet.gov.fj Savusavu Town Council Sima Shiwani Dutt Chief Executive Officer ceosavusavu@gmail.com Water Authority Fiji Seru Soderberg Chief Operating Officer contact@waf.com.fj 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 Task Team Leader(s): Fei Deng, Iretomiwa Olatunji Approved By APPROVALTBL Country Director: Stephen N. Ndegwa 08-Nov-2022 Oct 01, 2022 Page 14 of 14