The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
Project Information Document (PID)
Concept Stage | Date Prepared/Updated: 07-Sep-2021 | Report No: PIDC32446
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
BASIC INFORMATION
A. Basic Project Data OPS TABLE
Country Project ID Parent Project ID (if any) Project Name
Tuvalu P177100 Maritime Investment in
Climate Resilient
Operations II (P177100)
Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead)
EAST ASIA AND PACIFIC Jan 10, 2022 Apr 29, 2022 Transport
Financing Instrument Borrower(s) Implementing Agency
Investment Project Financing Government of Tuvalu Ministries / Ministry of
Public Works, Infrastructure,
Environment, Labour,
Meteorology and Disaster
Proposed Development Objective(s)
To improve the climate resilience of selected maritime infrastructure in Tuvalu.
PROJECT FINANCING DATA (US$, Millions)
SUMMARY-NewFin1
Total Project Cost 46.50
Total Financing 46.50
of which IBRD/IDA 46.50
Financing Gap 0.00
DETAILS -NewFinEnh1
World Bank Group Financing
International Development Association (IDA) 46.50
IDA Grant 46.50
Environmental and Social Risk Classification Concept Review Decision
Substantial Track II-The review did authorize the preparation to
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
continue
Other Decision (as needed)
B. Introduction and Context
Country Context
1. The Pacific region is widely recognized as heavily exposed to natural hazards including floods, droughts, tropical
cyclones, earthquakes, volcanic eruptions, and tsunamis. Although there is a high level of uncertainty related to the
projected impacts of climate change, it is overall anticipated that this exposure will increase over the coming decades.
For example, it is expected that climatic changes will raise ocean and land temperatures, intensify tropical cyclones and
increase storm surges in Pacific Islands Countries (PICs). This will adversely impact agriculture, fisheries, coastal zones,
water resources, health, and ecosystems and thus threaten entire communities and economies. People and economies
in the Pacific are particularly vulnerable to hazard and climate change impacts because of geographical remoteness
and isolation, dispersion across a large area of the Pacific Ocean, economic and social challenges and the degradation
of natural resources. Vulnerability to extreme climate events is also increasing due to population growth and migration
(internal and external), poor coastal development and land use planning, unplanned urban growth, and water and
ecosystem degradation including pollution of sub-surface and coastal waters.
2. Among the PICs, Tuvalu is one of the most vulnerable countries. Located approximately 1,100km north of Fiji,
Tuvalu consists of nine islands, with a total land area of around 26 km 2. Few of the islands are more than 800 meters
wide. Of the nine islands, three are reef islands (Nanumanga, Niutao and Niulakita) and six are atolls (Funafuti,
Nanumea, Vaitupu, Nui, Nukulaelae and Nukufetau). The islands are very low-lying with a maximum elevation of
approximately 4.5 meters. These geographical features have considerably exposed Tuvalu to the impacts of climate
change. Storm surges, king tides and floods, which are common occurrences and which have intensified due to changes
in weather patterns, as well as sea level rise and more extreme weather events such as tropical storms and cyclones
have resulted in significant damage to the islands and their inhabitants in the past.1
3. Population is widespread over outer islands. Currently, roughly half of the country’s population of some 10,500
lives on the main atoll, Funafuti. The remaining population is distributed across the other eight islands and atolls, each
with one or two villages. There are no domestic aviation services from the capital, Funafuti, to the outer islands, and
since around 2003, populations on the outer islands have been declining due to the lack of economic opportunity and
limited social services. The Government of Tuvalu (GoTv) is actively trying to improve infrastructure in the outer islands
to incentivize the return of local populations and to avoid overcrowding in Funafuti.
1
The devastating Tropical Cyclone Pam, for example, which ravaged the region in early 2015, resulted in large scale damage of
houses, agriculture and livestock. According to the Intergovernmental Panel on Climate Change, even small increases in sea level
would have "severely negative effects on atolls and low islands" (IPCC 2001, p. 856).
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
4. In 2019, Tuvalu’s gross domestic product was around US$47.3 million. Employment is heavily reliant on the
public sector with an estimated 65 percent of the population working in Government positions.2 There is little other
industry available with the exception of small-scale processing of timber (sourced locally or from New Zealand),
handicrafts, and small numbers of Tuvaluans working in the tourism industry. The latest unemployment statistics
collected in 2016, show that Tuvalu has an unemployment rate of 8.49 percent. Tuvalu’s economy is highly dependent
on remittances and the country is considered one of the most economically and environmentally vulnerable in the
world.
5. Tuvalu has made some progress in improving gender laws and actions, but the speed of the improvements is
still slow. The Convention on the Elimination of all Forms of Discrimination against Women (CEDAW) was ratified by
GoTv in 1999. However, financial constraint is one of the major barriers in the implementation of CEDAW into the local
context of Tuvalu and the development of women in general. The lack of resources and capacity of the Department of
Gender Affairs to advocate and provide gender training, gender budget analysis, policy and sectoral analysis, and the
compilation of sex-disaggregated data for analytical purpose. Although the development of women in Tuvalu is
progressing at a slow pace, the respect for tradition, embedded attitude and perception against women are slowly
changing positively for women3. Women in Tuvalu are beginning to be more active and participate more in societal
activities because of the ongoing processes of awareness programs undertaken by the Gender Affairs Department
(GAD) in conjunction with the Tuvalu National Council of Women (TNCW) and other concerned departments. Most of
these awareness programs such as consultations, trainings and workshops are achieved through funding from overseas
donors.
Sectoral and Institutional Context
6. Roads, ports and airports are among the region’s most vulnerable infrastructure assets in the Pacific. This is
because in many vulnerable countries, like Tuvalu, critical transport infrastructure is adjacent to the coast. In some
areas, primary roads are less than one meter above sea-level, and the majority of the population lives within one
kilometer of the sea. In addition, securing budget for maintenance is a challenge, often leading to neglect in
maintenance, making transport assets even more vulnerable to extreme weather events. Pacific transport networks
and their respective users already suffer regular temporary breaks of serviceability – sometimes for hours, but
occasionally longer – as vulnerable links or locations can be frequently rendered impassible due to flooding, debris
deposit, culvert, and bridge and/or pavement damage. This impacts, in particular, access to critical infrastructure (e.g.
hospitals, schools, and power plants) and services. Expected climate change effects will place coastal assets and
communities at an even higher level of risk.
7. Transportation Challenges in Tuvalu. The small size of the outer islands and the infertile soil make inhabitants
heavily reliant on shipping operations. Most foodstuffs (excluding local foods, such as fish, coconuts and some fruits),
building materials, and manufactured products, as well as critical emergency relief after natural disasters, are
imported from Fiji and are distributed among the islands with inter-island vessels. The inter-island vessels visit each
island with an average frequency of once per one to three weeks, depending on the length of the route. There is no
viable alternative to these vessels as there are no domestic aviation services in the country.
2
http://www.pacmas.org/about/countries/tuvalu/
3
United Nations Committee on the Elimination of Discrimination against Women, Combined third and fourth periodic reports of
States parties: Tuvalu, 2012
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
8. Maritime infrastructure and operations. Funafuti is the main port for all domestic and overseas shipments from
the region and consists of two concrete wharfs (L-shaped jetties) and an unpaved cargo handling area. Currently,
cargo including food items, construction materials and fuel is shipped in from Fiji approximately every 23 days. The
port also has a narrow boat ramp, which is used to inspect smaller ships. However, the ramp is in poor condition with
rust in many places. Moreover, due to the narrow width of the boat ramp, larger ships cannot be inspected or
maintained at Funafuti and must journey to Fiji for these services. This is costly as maintenance of the country’s four
vessels makes up 60 percent of the Department of Marine Services’ current operating budget. There are three main
routes to the outer islands from Funafuti:
• Northern Islands: Islands of Nuitao, Nanumanga and Nanumea
• Central Islands: Vaitupu and Nukufetau
• Southern Islands: Nukulaelae and Niulakita
9. Infrequent maritime operation. A full circuit of the central island route takes around one week to complete.
Services to the northern and southern islands occur once every two to three weeks. These infrequent services are
exacerbated by irregular schedules, which often change to accommodate requests to pick up sick or injured people
on short notice. A trip covering all the Northern islands and Vaitupu is undertaken once every three months to allow
parents to send school and food supplies to their children attending the secondary school in Vaitupu.
10. Inter-island ferries are unable to directly access outer islands. This is due to the fact that most of the islands
only have narrow reef channels with small turning basins designed for small fishing boats, have narrow entrance
channels into the lagoon, or do not have the required depth for the inter-island ferries’ draft. Inter-island vessels
must moor offshore, and passengers and cargo are transferred onto smaller tenders (which are brought onboard the
larger inter-island ferry) and transited to shore. This includes passage through deep water up to the entrances of the
reef channel or lagoon. This process must be undertaken across a range of tidal levels, weather and sea conditions,
channel widths, depths and currents, and often at night.
11. Impacts from climate change and natural disasters have taken a considerable toll on maritime infrastructure
in Tuvalu, particularly in the outer islands such as Nanumanga, Nukufetau and Nanumea, which are highly exposed
to wind and wave action. Previous investments in jetties and ramps in Nukufetau and Nanumanga have suffered
significantly from erosion and from the consequences of Cyclone Pam in 2015, and Cyclone Tino in 2020; and have
left the islands without access infrastructure. This lack of access infrastructure has resulted in damaged cargo and has
considerably impeded the off-loading of cargo, which is particularly critical for the distribution of emergency goods
after natural disasters.
12. Institutional Context. The maritime sector in Tuvalu is overseen by the Department of Marine and Ports Services
(DMPS), which is located in the Ministry of Public Works, Infrastructure, Environment, Labor, Meteorology and
Disaster (MPWIELMD). DMPS is responsible for administrative matters, management and operations of the ports and
management of domestic shipping vessels, including maintenance responsibilities. DMPS is also responsible for
technical and policy advice in the sector and certification of the Tuvalu Maritime Training Institute (TMTI). The unit
comprises 62 staff, including 2 technical staff, 10 crane operators and 50 vessel crew members for the 3 state-owned
domestic vessels. DMPS’ budget is limited by the available national fiscal space amidst competing demands.
Budgetary over-expenditure, on account of high vessel operating costs, is the norm. The limited technical staff are
only able to address the most pressing issues, which leaves little time to develop strategic approaches for the sector.
In June 2021, GoTv created the Central Project Management Office (CPMO), within the Ministry of Finance (MOF), as
part of the World Bank financed Tuvalu Learning Project (TuLEP). The CPMO is responsible for initiations through to
the Managing, Coordinating and Monitoring and Evaluation of donor funded projects.
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
13. The World Bank is conducting Maritime Investment in Climate Resilient Operations (MICRO)4 to improve the
climate resilience of Nanumanga harbor and Funafuti port. The project was approved on December 18, 2018 and
was declared effective on April 9, 2019. The project plans to finance rehabilitation of Funafuti wharf and a
construction of new 10-m workboat size wharf in Nanumanga. However, the project encounters a significant delay,
most notably due to (i) change of a location of the Nanumanga harbor after TC Tino in 2019, from the town center to
the Southwest of Nanumanga, (ii) capacity constraints in managing the World Bank’s procurement procedures, (iii)
GoTv’s request to change the Nanumanga original harbor design Nanumanga from a harbor that could facilitate a
10m workboat to a harbor that could facilitate a 40m barge , and (iv) the global COVID-19 pandemic that makes
difficult for international contractors and consultants to participate in bidding. As a result, both of the port works
have not been started as of July 2021. In addition, the re-design of the Nanumanga harbor work increased the cost
estimate and the original budget cannot cover all of the costs.
14. GoTV requested from the World Bank a new maritime project, Maritime Investments in Climate Resilience
Operations II (MICRO2), to improve the harbor in two more outer islands: Nanumea and Nukufetau as well as to
cover the full cost of the harbor work in Nanumanga. On June 21, 2021, GoTV sent a letter to request to allocate
IDA19 fund to MICRO2, which will include investment in harbors in Nukufetau and Nanumea to accommodate 10m
workboats. Financing of the proposed MICRO2 includes approximately US$33.5 million from Tuvalu’s IDA19
performance-based allocation, and about US$13 million to be recommitted from a planned partial cancellation from
MICRO. On August 13, 2021, GoTv sent another letter requesting the World Bank to partially cancel MICRO and
reallocate this cancelled amount to MICRO2. A restructuring is being processed and is expected to be completed by
appraisal.
Relationship to CPF
15. The development of maritime infrastructure in the outer islands is a key implementation action under the
Tuvalu Infrastructure Strategy and Investment Plan (TISIP) and is aligned with the World Bank Group’s strategic
priorities, particularly the World Bank’s mission to end extreme poverty and boost shared prosperity, by building
resilience to extreme weather events and improving the reliability of the transport network. The project is consistent
with the World Bank’s Regional Partnership Framework for Nine Pacific Island Countries (FY2017 -FY2023) (Report No
120479). The Regional Partnership Framework defines the follow four focus areas: (i) fully exploiting the available
economic opportunities; (ii) enhancing access to employment opportunities; (iii) protecting incomes and livelihoods;
and, (iv) strengthening the enablers of growth and opportunities. The investments included within the project will
contribute to enhancing access to employment opportunities and social services, which will help protect incomes and
allow people to exploit the available economic opportunities.
C. Proposed Development Objective(s)
16. The proposed Project Development Objective (PDO) is to improve the climate resilience of selected maritime
infrastructure in Tuvalu and in the event of an in the event of an Eligible Crisis or Emergency, to provide an
immediate response to the Eligible Crisis or Emergency.
4
P161540
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
Key Results (From PCN)
17. Progress will be measured against the following PDO-level results indicators:
(a) Nanumanga, Nanumea and Nukufetau maritime infrastructure constructed with climate resilient
infrastructure solutions (number of harbors constructed);
(b) Capacity of MPWIELMD to develop a more climate resilient transport network (Capacity measured on a scale
of 1-5); and
(c) Sectoral and strategic spatial planning tools in use (number of tools implemented).
D. Concept Description
18. The proposed MICRO2 will be financed through approximately US$33.5 million from Tuvalu’s IDA19 performance-
based allocation, and about US$13 million to be recommitted from a planned partial cancellation from MICRO
(P161540). The proposed PDO is to be achieved through the following proposed components: (i) Component 1: Sectoral
and Spatial Planning Tools, (ii) Component 2: Climate Resilient Maritime Infrastructure Solutions, (iii) Component 3:
Strengthening the Enabling Environment, and (iv) Component 4: Contingency Emergency Response.
19. Component 1: Sectoral and Spatial Planning Tools (US$0.05 million). This component will build on the activities
already launched by MICRO on the development of spatial planning and risk-based tools (GIS mapping) for
infrastructure investments to improve connectivity and climate resilience in Nanumanga, Vaitupu, Nanumea and Nui;
and health outreach campaign in Nanumanga. MICRO2 will expand GIS mapping to Nukufetau and Health outreach
campaign5 to Nukufetau and Nanumea.
20. Component 2: Climate Resilient Maritime Infrastructure Solutions (US$43 million). This component will
construct resilient maritime, access and utility infrastructure on Nanumanga, Nanumea and Nukufetau. The expected
activities include widening of existing, or construction of new, reef channels and turning basins to accommodate a 10-
m workboat, as well as construction of breakwaters to protect the channels and basins from wave action. It will also
include the financing of jetties, small wharves, concrete ramps for fishing vessels and aids to navigation. Coastal
protection measures to ensure sustainability and resilience of infrastructure may also be financed. In addition,
rehabilitation and/or upgrade of access and utility infrastructure linked to these harbors, including access road to
harbors, electricity (solar panels), water, terminals for passengers, and warehousing/storage areas, would also be
considered. The detailed scope of works will be identified through feasibility studies and detailed design.
21. Component 3: Strengthening the Enabling Environment (US$3.45 million). Possible activities under this
component could include:
a. Implementation Capacity Building. Technical assistance for building implementation capacity may include: (i)
supervision of works; (ii) resilience-related training and/or workshops; and (iii) support to the Maritime
5
A health outreach campaign is currently being implemented as part of MICRO project. The aim of the campaign is to improve
community resilience through the provision of support to the Nanumanga community to understand and manage the issues
associated with ensuring a sustainable food supply.
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
Training Institute, including revision of syllabus and provision of learning materials and (iv) technical assistance
in response to emerging priority issues that could impact project implementation (e.g. bringing in short-
and/or long-term technical support to address issues arising during implementation, raising awareness of
maritime safety, or organizing and attending specialized training events, both in-country and internationally).
b. Project Management Support. This sub-component could finance the provision of technical, advisory and
administrative support to MPWIELMD, other line ministries, and the Project Implementation Unit. This would
include preparation of environmental and social risks management instruments as well as the provision of
office space, equipment, supplies, and financial auditing services.
22. Component 4: Contingency Emergency Response (US$0 million). This zero-sum component will finance response
to an Eligible Crisis or Emergency, as needed.
23. Gender. The project will undertake participatory consultations during project preparation with possible support
from a local NGO to ensure the project is gender informed. A social assessment will describe and investigate some of
the opportunities the project has to address any gender related gaps. Based on the analysis, a few key investments or
TA will be identified to be financed under the project. This could include both land-based or sea-based interventions in
the sector such as improvements to waiting areas, on board safety and security and training for women in the maritime
sector. The project will monitor effectiveness of these investments through intermediate results indicators in the
results framework.
24. Advance procurement is being considered for this project. To accelerate the civil work, the detailed design and
civil work would be jointly contracted through Design and Build, and it is considered to launch the bidding process
before the project signing. Programmatic Preparation Advance (PPA) and Retroactive financing are not sought for
MICRO2 because required preparatory activities, such as hiring PIU staff, preparation of concept design and ESF
instruments, have been already financed by MICRO.
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
.
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The World Bank
Maritime Investment in Climate Resilient Operations II (P177100)
.
CONTACT POINT
World Bank
Nana S R H Soetantri, Satoshi Ogita
Senior Transport Specialist
Borrower/Client/Recipient
Government of Tuvalu
Steve Paeniu
Hon.
sevepaeniu@gmail.com
Implementing Agencies
Ministries / Ministry of Public Works, Infrastructure, Environment, Labour, Meteorology and Disaster
Ampelosa Tehulu
Hon.
atefulu@gov.tv
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): Nana S R H Soetantri, Satoshi Ogita
Approved By
APPROVALTBL
Practice Manager/Manager:
Country Director: Stephen N. Ndegwa 08-Sep-2021
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Maritime Investment in Climate Resilient Operations II (P177100)
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