Report No: ICR00116 IMPLEMENTATION COMPLETION AND RESULTS REPORT IDA-D4520 ON A GRANT IN THE AMOUNT OF SDR 8.26 MILLION (US$11.04 MILLION EQUIVALENT) TO THE Republic of the Marshall Islands FOR The Marshall Islands Maritime Investment Project March 31,2025 Transport Global Practice East Asia And Pacific Region The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 CURRENCY EQUIVALENTS (Exchange Rate Effective August 16, 2024) United States Dollar Currency Unit = (US$) US$1.337488 = SDR 1 FISCAL YEAR October 1 – September 30 Regional Vice President: Manuela V. Ferro Country Director: Stephen N. Ndegwa Regional Director: Sudeshna Ghosh Banerjee Practice Manager: Benedictus Eijbergen Task Team Leaders: Keelye Rinchen Hanmer, Toufiq Ahmed ICR Main Contributor: Amina Jarso Mokku The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ABBREVIATIONS AND ACRONYMS AHT Anti-Human Trafficking AtoNs Aids to Navigation CERC Contingent Emergency Response Component CIU Central Implementation Unit DIDA Division of International Development Assistance D&S Design and Supervision EIRR Economic Internal Rate of Return GBV Gender-Based Violence GoRMI Government of the Republic of Marshall Islands GRM Grievance Redress Mechanism HEIS Hands-On Expanded Implementation IA Implementing agency IPF Investment Project Financing IGR Institutional and Governance Review ISMs Implementation Support Missions ISR Implementation status and results report ISPS International Ship and Port Facility Security Code MoF Ministry of Finance MoJ Ministry of Justice MoTC Ministry of Transport and Communications M&E Monitoring and Evaluation NPV Net present value PAD Project Appraisal Document PDO Project Development Objective PIU Project Implementation Unit PPA Project Preparation Advance QCBS Quality And Cost Based Selection RF Results Framework RMIPA Republic of the Marshall Islands Ports Authority SAR Search and Rescue STEP Systematic tracking of exchanges in procurement TCMI Trust Company of the Marshall Islands ToR Terms of Reference The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 TABLE OF CONTENTS DATA SHEET.......................................................................................................................................... ii I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ..................................................................................1 II. OUTCOME .................................................................................................................................................6 III. KEY FACTORS AFFECTED IMPLEMENTATION AND OUTCOME ..................................................................... 11 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .............................. 13 V. LESSONS AND RECOMMENDATIONS ......................................................................................................... 16 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS .................................................................................................. 17 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION .............................................................. 24 ANNEX 3. PROJECT COST BY COMPONENT ................................................................................................................... 26 ANNEX 4. EFFICIENCY ANALYSIS.................................................................................................................................... 27 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ....................................... 28 ANNEX 6. SUPPORTING DOCUMENTS .......................................................................................................................... 29 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 DATA SHEET @#&OPS~Doctype~OPS^dynamics@icrbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name P161382 Marshall Islands Maritime Investment Project Product Operation Short Name Investment Project Financing (IPF) MIMIP Operation Status Approval Fiscal Year Closed 2019 Original EA Category Current EA Category Partial Assessment (B) (Restructuring Data Sheet - 31 Jul Partial Assessment (B) (Approval package - 09 May 2019) 2024) CLIENTS Borrower/Recipient Implementing Agency Republic of the Marshall Islands Republic of Marshall Islands Port Authority DEVELOPMENT OBJECTIVE Original Development Objective (Approved as part of Approval Package on 09-May-2019) To improve the safety, efficiency and climate resilience of maritime infrastructure and operations in the Recipient's territory, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. s s s s @#&OPS~Doctype~OPS^dynamics@icrfinancing#doctemplate FINANCING Financing Source Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) ii The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 World Bank Financing 33,120,000.00 11,677,525.39 11,042,539.05 IDA-D4520 33,120,000.00 11,677,525.39 11,042,539.05 Total 33,120,000.00 11,677,525.39 11,042,539.05 RESTRUCTURING AND/OR ADDITIONAL FINANCING Amount Disbursed Date(s) Type Key Revisions (US$M) • Results • Risks • Disbursement Estimates 18-Jul-2023 Portal 5.47 • Clients • Reallocations • Implementation Schedule • Disbursement Estimates 10-Apr-2024 Portal 9.37 • Loan Cancellations • Reallocations • Disbursement Estimates 31-Jul-2024 Portal 11.04 • Loan Cancellations • Reallocations @#&OPS~Doctype~OPS^dynamics@icrkeydates#doctemplate KEY DATES Key Events Planned Date Actual Date Concept Review 12-Dec-2017 11-Dec-2017 Decision Review 22-Mar-2019 22-Mar-2019 Authorize Negotiations 27-Mar-2019 27-Mar-2019 Approval 09-May-2019 09-May-2019 Signing 30-Jun-2019 Effectiveness 01-Aug-2019 17-Jul-2019 ICR/NCO 31-Mar-2025 -- Restructuring Sequence.01 Not Applicable 18-Jul-2023 Restructuring Sequence.02 Not Applicable 10-Apr-2024 Restructuring Sequence.03 Not Applicable 31-Jul-2024 iii The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Mid-Term Review No. 01 08-Nov-2022 08-Nov-2022 Operation Closing/Cancellation 01-Aug-2024 01-Aug-2024 @#&OPS~Doctype~OPS^dynamics@icrratings#doctemplate RATINGS SUMMARY Outcome Bank Performance M&E Quality Highly Unsatisfactory Moderately Unsatisfactory Modest ISR RATINGS Actual Disbursements No. Date ISR Archived DO Rating IP Rating (US$M) 01 18-Aug-2019 Satisfactory Satisfactory 0.00 02 14-Jan-2020 Satisfactory Satisfactory 0.95 03 09-Jul-2020 Satisfactory Moderately Satisfactory 1.54 04 18-Dec-2020 Satisfactory Moderately Satisfactory 1.54 05 23-May-2021 Moderately Satisfactory Moderately Satisfactory 2.04 06 15-Nov-2021 Moderately Satisfactory Moderately Satisfactory 2.53 Moderately 07 16-May-2022 Moderately Unsatisfactory 4.19 Unsatisfactory Moderately 08 08-Nov-2022 Moderately Unsatisfactory 4.19 Unsatisfactory Moderately 09 21-Apr-2023 Moderately Unsatisfactory 5.47 Unsatisfactory Moderately 10 31-Aug-2023 Moderately Unsatisfactory 5.47 Unsatisfactory 11 12-Mar-2024 Unsatisfactory Unsatisfactory 8.94 12 27-Jun-2024 Unsatisfactory Unsatisfactory 9.75 @#&OPS~Doctype~OPS^dynamics@icrsectortheme#doctemplate SECTORS AND THEMES Sectors iv The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Adaptation Mitigation Major Sector Sector % Co-benefits Co-benefits (%) (%) FY17 - Ports/Waterways 60 32 0 FY17 - Transportation FY17 - Public Administration - 40 19 0 Transportation Themes Major Theme Theme (Level 2) Theme (Level 3) % FY17 - Economic Policy FY17 - Trade FY17 - Trade Logistics 100 FY17 - Environment and FY17 - Climate change FY17 - Adaptation 27 Natural Resource FY17 - Renewable Natural Resources FY17 - Coastal Zone Management 77 Asset Management Management FY17 - Human Development and FY17 - Gender 40 Gender FY17 - Disaster Risk 100 Reduction FY17 - Urban and Rural FY17 - Disaster Risk Management FY17 - Flood and Development Drought Risk 100 Management FY17 - Urban Development FY17 - Public Transport 77 v The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ADM STAFF Role At Approval At ICR Practice Manager Almud Weitz Benedictus Eijbergen Regional Director N/A Sudeshna Ghosh Banerjee Global Director Guangzhe Chen Nicolas Peltier-Thiberge Practice Group Vice President N/A Guangzhe Chen Country Director Michel Kerf Stephen N. Ndegwa Regional Vice President Victoria Kwakwa Manuela V. Ferro ADM Responsible Team Leader Sean David Michaels Keelye Rinchen Hanmer Co-Team Leader(s) James A. Reichert, Keelye Hanmer Toufiq Ahmed ICR Main Contributor Amina Mokku v The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Country Context 1. Country geography and demography. The Republic of the Marshall Islands (RMI) is located at the easternmost part of Micronesia. It consists of 29 atolls and five isolated islands, with a total of 24 inhabited areas, plus numerous small islets. The country covers an area of 1.9 million square kilometers but has just 181 square kilometers of land area. RMI's population was 53,125 in 2017, with 28,000 (53 percent) residing in Majuro (the country's capital) and about 11,000 (21 percent) in Ebeye. The country’s population in 2023 was 38,8271. 2. RMI is remote from major markets and its economy has limited production and exports. It relies on external financing and is vulnerable to external shocks. Since 1986, RMI has received U.S. support under the Compact of Free Association. The economy, dominated by the public sector, depends on fisheries, retail services, copra, and tourism. With the second largest shipping registry globally, RMI plays a key role in Pacific shipping routes with 4,455 registered vessels. The population relies heavily on international trade, importing most essentials and exporting fish and copra. 3. Climate change poses increasing threats to maritime infrastructure assets, operations and services in Majuro 2. Due to their location in coastal areas and estuaries, ports and their connecting hinterland links are inherently exposed to marine, and land hydro-meteorological hazards. These are exacerbated by climate change impacts such as rising mean and extreme sea levels, storm waves, extreme winds and heavy precipitation, coastal floods (and droughts) and heat waves. Port operations and services are more sensitive to climate stressors than are physical assets (e.g. threshold for delaying/cancelling of port services are often lower than thresholds for damage to infrastructure). 4. Maritime safety. At appraisal, the deterioration of quay structures and furnishings, such as bollards, cleats, ladders, and fenders were found due to unclear roles, insufficient funding, limited manpower, and poor maintenance. Many ports in RMI, including small boat landings on outlying islands degraded significantly, posing safety risks to vessels. Sectoral and Institutional Context 5. The country’s main international port is in Majuro. Majuro has a deep-water harbor, two docks -- Delap and Uliga—, and a favorable location along the east-west and north-south Pacific shipping routes. Majuro port receives international cargo services from the U.S., Asia and Australia. RMI’s strategic location has made it an important hub for fishing operations. At appraisal, RMI maintained active membership of the Parties to the Nauru Agreement among Pacific countries on tuna fishery management. Other publicly owned seaports include Ebeye Matson Container Dock, Arno, Jaluit and Wotje ports. Ebeye dock at the international port in Kwajalein Atoll handles inter-island ferry services for containers, general cargo and fuel. Jaluit port is a connecting point for inter-island travel within RMI. Arno and Wotje port activities are limited to small-scale operations like fishing, inter-island transport using small boats and some basic docking facilities for smaller craft. 6. Institutional Context. At the national level, the Ministry of Transport and Communications (MoTC) is responsible for policymaking and some regulatory oversight, as well as the management and development of the maritime sector in RMI. However, at appraisal, the maritime transport sector policy was not up-to-date and MoTC did not have a harbor master with a mandate to oversee RMI’s ports. MoTC also managed intra-island shipping services by contracting them out to private ship operators to make voyages into the designated shipping region. The Republic of the Marshall Islands 1 World Development Indicators database last updated total population for 2023 2 Port Industry Survey on Climate Change Impacts and Adaptation - UNCTAD Research Paper No. 18 (UNCTAD/SER.RP/2017/18). Page | 1 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Ports Authority (RMIPA) is a state-owned entity established by the RMI Ports Authority Act in 2003; RMIPA is responsible for operating RMI’s publicly owned seaports at Majuro, Ebeye, Arno, Jaluit and Wotje, as well as all facilities and structures situated within public port and airport areas. In addition to operational responsibilities, RMIPA carries out regulatory and enforcement functions related to port use and vessel activities. 7. RMI is a member of the International Maritime Organization (IMO) and is party to most IMO conventions. RMI’s delegate to IMO is an officer from The Trust Company of the Marshall Islands (TCMI), which through a joint venture agreement with Government of RMI (GoRMI), is authorized by legislation to administer the maritime and corporate programs for RMI. TCMI acts as registrar and registered agent for RMI’s non-resident companies. TCMI generally acts as maritime administrator for international shipping related matters, whereas MoTC acts as maritime administrator for domestic shipping. 8. The Systematic Country Diagnostic (SCD) 2016 3 covering eight pacific island countries (PIC-8) including RMI identified good connective infrastructure as a central requirement for the development of most economic opportunities and for the quality of life in the PIC-8. A well-functioning maritime sector is crucial for livelihoods given that RMI imports almost 100 percent of food, pharmaceuticals and fuel. 9. The Regional Partnership Framework (RPF) for nine Pacific Island Countries (PIC9) for Fiscal Year (FY) 17-FY234 includes maritime infrastructure essential for trade, connectivity, and economic growth in the region. This is vital for the transportation of goods and people between the islands and beyond. Strengthening disaster risk preparedness is another key area of focus in the RPF. Given the vulnerability of Pacific Island countries to natural disasters, effective maritime infrastructure and governance are essential for disaster response and resilience. 10. Regional Financing. Marshall Islands Maritime Investment Project (MIMIP) was approved by the World Bank Board of Executive Directors on May 9, 2019, and became effective July 19, 2019. The overall amount of funding for MIMIP at appraisal was SDR 23.7 million (US$33.12 million equivalent), which included US$15.75 million in National IDA and US$17.37 million in Regional IDA approved by the World Bank’s Department of Development Finance. The justification for eligibility of Regional IDA resources was to improve international maritime infrastructure and oversight in Components 1, 2, and 3, bringing regional benefits and enabling potential intra-regional maritime services. Theory of Change (Results Chain) 11. The theory of change at appraisal is presented in Figure 1. Assumptions presented in Figure 1 were inferred from the Project Appraisal Documents (PAD) by the Implementation Completion and Results Report (ICR) author. 3 World Bank. 2016. Systematic Country Diagnostic for the Eight Small Pacific Island Countries: Priorities For Ending Poverty And Boosting Shared Prosperity. World Bank, Report No. 102803‐EAP 4 Pacific Islands - Regional Partnership Framework : FY17-FY21, Report Number 120479, extended to FY23 Page | 2 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Figure 1: MIMIP Theory of Change Inputs Activities Outputs Outcomes Objective Maritime Infrastructure • Improve terminal storage Reduction in cargo areas vessel turnaround Strategic • Install or improve drainage times Enhanced port Plans & • Strengthen the pavement operations and Maritime of the container yard efficiency Number of energy Infrastructure • Undertake energy efficiency Needs efficiency improvements recommendations Assessment • Rehabilitate utilities implemented for • Upgrade terminal ➔ ➔ ➔ Enhanced ➔ MIMIP superstructures connectivity through ports • Repair and upgrade improved climate berthing and apron Increase in container resilience of facilities such as repair yard productivity A1 maritime quay wall infrastructure structures/pilings, replace/repair quay Improved climate furniture etc. Number of docks with resilience of • Provide cargo handling drainage installed or maritime equipment improved infrastructure Maritime Safety and Increase in number of Security ports fully compliant Improved safety, • Replace/upgrade aids to with ISPS requirements efficiency and Safety and navigation SAR recommendations ➔ • SAR and safety devices climate resilience Security Needs implemented of maritime Assessment for • Fencing gates, lighting, Improved oversight infrastructure and MIMIP Ports back-up ➔ ➔ and safety of port ➔ operations generators etc. Enhanced GBV, VAC A2 operations • GBV and and trafficking human prevention training trafficking and support in the prevention maritime sector • Assess the benefits of a security scanner Technical Assistance for Port Planning and Project Planning documents Management (e.g. design reports, Improved capacity • Design and supervision strategic plans) for oversight, • Maritime sector planning completed planning and ➔ ➔ ➔ incorporating climate management of the considerations Consultants hired, and maritime sector and • Capacity building training delivered to fill operations initiatives capacity gaps • Project management Provision of swift Contingent Emergency response in the event Improved emergency ➔ ➔ ➔ Response Component of an Eligible Crisis or response Emergency A1: There will be sufficient capacity to implement the findings of the plans and assessments A2: Despite known access challenges and strained capacity, the equipment will be purchased and installed. Page | 3 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Project Development Objectives (PDOs) 12. The PDO as described in the Project Appraisal Document (PAD) and Financing Agreement was ‘To improve the safety, efficiency and climate resilience of maritime infrastructure and operations in the Recipient’s territory, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency.’ Key Expected Outcomes and Outcome Indicators 13. At appraisal, progress towards the PDO was to be measured through five PDO outcome indicators: (a) Reduction in cargo vessel turnaround times at Delap Dock (minutes), (b) Increase in container yard productivity at Delap Dock (percentage), (c) Project docks fully compliant with International Ship and Port Facility Security Code (ISPS) requirements (number); identified to track the regional contributions of the Project, (d) Project docks rehabilitated with at least one climate resilience measure (number), (e) Project docks with sectoral and contingency planning tools that address natural disasters and climate change (number). Components 14. Table 1 presents the Project components at appraisal. Table 1: project components at appraisal Component Sub-components 1. Maritime i. Delap Dock: Repair and upgrade pavement, drainage. Infrastructure (est. ii. Uliga Dock: Repair berth, new port control tower, communications equipment, hoist US$12.35 million) system, floating pontoons. iii. Outer Island Docks: Repair facilities on Arno, Jaluit, Wotje. iv. Acquire equipment: Cargo handling equipment for Delap and Uliga Docks. 2. Maritime Safety i. Quay Wall Structures and Furniture: Repairs and upgrades at Delap, Uliga, Ebeye Docks. and Security (est. ii. Compliance with ISPS Requirements: Upgrade fencing, gates, lighting, closed-circuit US$7.65 million) television (CCTV). iii. Replace/Upgrade Aids to Navigation (AtoNs) at Majuro, Outer Islands. iv. Safety and Security Improvements: Backup generators, port/container scanner needs assessment, spill kits, search and rescue (SAR) equipment, human trafficking and gender- based violence (GBV) awareness and support. 3. Technical i. Needs Assessments: Maritime safety, security, and infrastructure. Assistance for Port ii. Design and Supervision: Climate resilient designs and supervision. Planning and Project iii. Institutional and Governance Review: Review and strengthen port management Management (est. structures. US$13.12 million) iv. Strategic Planning: Development plans, safety, security, and climate resilience. v. Capacity Building: Training and awareness initiatives. vi. Registries Assessment: Review and improve ship and corporate registries. vii. Project Management: Support for implementation, capacity development, operating costs. viii. Employment Opportunities for Women: Policies and training to close gender employment gaps. ix. Emerging Priority Issues: Technical assistance for emerging issues. Page | 4 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Component Sub-components 4. Contingent N/A Emergency Response Component (CERC) (US$0.00 million) B. SIGNIFICANT CHANGES DURING IMPLEMENTATION (IF APPLICABLE) Revised PDOs and Outcome Targets 15. The PDO and Outcome Targets remained unchanged. Revised PDO Indicators 16. MIMIP was first restructured in July 2023, following the mid-term review (MTR) in November 2022. The intermediate and end targets for the PDO and Intermediate Result Indicators were updated to be aligned with the implementation schedule and project workplan that were reviewed during the MTR. The description of the PDO climate resilience indicator, Docks rehabilitated with at least one climate resilience measure (Number) was revised to clarify that the indicator measured the number of project docks where either aids to navigation (AtoNs), fenders, bollards, ladders, and cleats are installed and revise the intermediate target for Docks with sectoral and contingency planning tools that address natural disasters and climate change (Number) in the second and third year of implementation from three to zero to reflect implementation delays. Revised Components 17. The first level 2 restructuring, in July 2023, introduced the following changes to components. a. Subcomponent 2. iv. The needs assessment for port/container scanner for Delap Dock was dropped as it was no longer needed. The indicator related to the employment of women by RMIPA at maritime facilities was removed due to the unlikelihood of achieving additional employment within the remaining project timeframe, and the focus was shifted to supporting and raising awareness on human trafficking and Gender-Based Violence (GBV) through various targeted activities and responsibility for implementation was shifted from the Ministry of Justice (MOJ) to RMIPA. b. Subcomponent 3. vi. The Registries Assessment and Options Analysis was dropped for transparency reasons. c. Subcomponent 3. vii. Project management responsibilities were divided into two sub-activities: (a) Central implementation Unit (CIU) within Ministry of Finance; and (b) the RMI Ports Authority. Other Changes 18. A second restructuring processed in April 2024 effected a partial cancellation of SDR 12.10 million reducing the value of IDA credit IDA D452-MH from SDR 23.70 million to SDR 11.60 million and a third restructuring in July 2024, effected a GoRMI requested further partial loan cancellations of SDR 2.4 million for MIMIP reducing its value to SDR 9.2 million. Rationale for Changes and Their Implication on the Original Theory of Change 19. Changes to Components. Difficulties in accessing information led to Subcomponent 3.vi being dropped from the project with funds reallocated. The first restructuring clarified roles and responsibilities between the Central Page | 5 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Implementation Unit (CIU) and Project Implementation Unit (PIU) through revised implementation arrangements. In addition, lengthy approval processes were noted with delays in processing payments by the CIU and MOF, which resulted in decreasing the threshold for Direct Payments under the project to support accelerated payments. Activities deemed no longer necessary by GoRMI, such as Subcomponent 2. iv, were dropped from the project scope. In addition, MOJ was removed from the project as an implementing agency (IA). 20. Partial Cancellations. Due to project delays, GoRMI suggested extending the closing date during the MTR. However, an extension was not considered then, and a phased approach with the World Bank was agreed upon. Three actions were decided for short-term progress: consolidating MIMIP activities, addressing implementation challenges, and fast-tracking civil works and procurement. An extension would be reconsidered once progress improved under the Acceleration Action Plan. As no progress was made, the time extension was not processed. By April 2024, progress was limited, making it unlikely that the remaining financing could be used by the August 1, 2024, closing date. GoRMI requested to cancel SDR 12.1 million in the second restructuring and SDR 2.4 million in the third restructuring and reallocate them to another IDA project. This partial cancellation significantly affected Components 1 and 2. The cancellations did not change the project scope or ToC, but remaining funds were only enough to process invoices for activities completed before the closing date, including final invoices for the PIU and CIU Consultants II. OUTCOME A. RELEVANCE OF PDO Assessment of Relevance of PDOs and Rating 21. Maritime investment and climate resilience are crucial for RMI’s development. Its geographic isolation and strategic location as a fisheries hub make RMI dependent on maritime transport for economic activities, connectivity, and access to essential services. Resilient maritime infrastructure is vital for mitigating the impacts of climate change and natural disasters, which are significant threats to RMI. RMI also hosts the second largest shipping registry in the world. The relevance of the project is rated High. 22. The RMI National Strategic Plan 2020–20305 aims to improve marine safety standards, compliance, and access to maritime transport. MIMIP financed activities to help RMI ports comply with ISPS requirements and ensure access for international vessels. The project aimed to improve the resilience of RMI’s maritime transport sector against natural hazards and climate change, enhancing navigation safety, port service efficiency, and connectivity for remote islands. 23. The Systematic Country Diagnostic (SCD) 20236 emphasized climate mitigation and adaptation, including climate resilient infrastructure in addition to strengthening emergency preparedness and response systems for to ongoing and future risks. MIMIP aimed to enhance the resilience of RMI’s maritime transport infrastructure to the impacts of natural hazards and climate change and the PDO included disaster risk response as a CERC. 24. The Performance and Learning Review (PLR) of the Regional Partnership Framework (RPF) for nine Pacific Island Countries (PIC9) for FY 17-21 (Report No. 100997-EAP) extended the RPF period to FY23. It notes that maritime investment in small island states is crucial for their economic development, connectivity, climate resilience, sustainable development, and security. 5 Republic of the Marshall Islands NATIONAL STRATEGIC PLAN 2020–2030, https://www.theprif.org/sites/theprif.org/files/2020- 08/Marshall%20Islands%20National%20Strategic%20Plan%202020%20to%202030.pdf 6 Gould, David M. and Wai-Poi, Matthew (eds.). 2022. Growth and Resilience: Pacific Islands Systematic Country Diagnostic Update. Washington, DC: World Bank Page | 6 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 25. The 2050 Strategy for the Blue Pacific Continent7 which is the vision of pacific leaders including RMI on long-term approach to working together as a region. The strategy includes the leadership’s commitment to ensure a well-connected region by investing in transport infrastructure. The climate change and disasters thematic area highlights the threat to the region and importance of implementing measures to mitigate the impact of climate change. The four ports included in MIMIP all receive international vessels that play a critical role in regional trade and travel. B. ACHIEVEMENT OF PDOs (EFFICACY) 26. Each of the three individual objectives of PDO is assessed: (i) improved safety of maritime operations and infrastructure; (ii) improve the efficiency of maritime operations and infrastructure; and (iii) improve climate resilience of maritime operations and infrastructure. 27. MIMIP financed the CIU for US$5.44million under sub-component 3.vii. The CIU was established to improve capacity of project implementation for all World Bank financed projects in RMI. Although the CIU investment supported the MIMIP in Procurement, Financial Management, and Environmental and Social Safeguards, the CIU investment is unrelated to the project development objective and there was no associated PDO indicator. The CIU operation was simultaneously financed by a Project to Strengthen budget execution and financial reporting systems, and the evaluation would be conducted at a later time with consultation with the Country Management Unit. 28. A major achievement for MIMIP is the completion of design services. Key activities included a Maritime Safety and Security Needs Assessment, completed with the final report submitted in March 2022, and a Design and Supervision consultancy that provided detailed designs, drawings, technical specifications, bills of quantities, and an Environmental and Social Management Plan. However, many project activities, such as civil works and equipment installation, were not completed due to weak capacity within implementing agencies, delayed procurement, COVID-19 travel restrictions, and operational challenges with the CIU. Safety of maritime infrastructure and operations 29. Under MIMIP the Port Facility Security Plan (PFSP) containing the processes and procedures for implementing ISPS at Delap Dock was updated in December 2023, with a Statement of Compliance issued until February 2029. Training was delivered on ISPS management systems covering IMO Conventions, Solas Convention and the International Ship and Port Facility Security Code to ensure that RMI ports are operationally compliant with ISPS requirements. Infrastructure investments identified to ensure compliance with ISPS requirements including security features such as gates, CCTV, and backup generators were not constructed. MIMIP purchased search and rescue (SAR) equipment to improve safety in the maritime sector which were handed to the GoRMI for registration and distribution as required, as in the table 2 below. Nine buoys and lights for Majuro were delivered in August 2023 but not installed. Due to access issues, a light meant for an outer island was installed at Majuro. The assembly for the AtoNs was carried out in the week of January 15, 2024, with support of the supplier’s technician. Time constraints was a factor on the section of a local contractor to install the AtoNs but the contractor was unable to demonstrate the capacity and resources to meet project requirements. With no sufficient time before project closure, RMIPA considered options to install the AtoNs including working with United States Coast Guard however this was unsuccessful as their resources were diverted to respond to Maui wildfires8. At project closing, this indicator was not achieved. 7 2050 Strategy for the Blue Pacific Continent / Pacific Islands Forum Secretariat. Suva, Fiji : Pacific Islands Forum Secretariat, 2022. 8 In early August 2023, a series of wildfires broke out in the U.S. state of Hawaii, predominantly on the island of Maui. Page | 7 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Table 2: Distribution of SAR equipment (source: MIMIP aide memoire) RMIPA MoTC Life vests (1000 individual vests) RMIPA pilot boat – 4 Remaining 788 vests transferred CIU DIDA Office – 24 to MOTC through the Wotje Local Government – 100 memorandum in September Jaluit Local Government – 52 2023 for registration and Likiep Local Government – 32 distribution to boat operators as Total: 212 needed. Emergency Position All transferred to MOTC All 25 sets transferred to MOTC Indicating Radio Beacon through the memorandum /Personal Locator Beacons kits (25 sets) Figure 2: Light installed at Majuro (source: MIMIP aide memoire) Enhanced maritime operations and efficiency 30. The PDO indicator to reduce cargo vessel turnaround times at Delap Dock by 30 minutes, from a baseline of 1,660 minutes to a target of 1,630 minutes was not achieved. The Uliga boat hoist installation to remove pilot boats from water for maintenance purposes was completed and training for RMIPA staff conducted in May 2024. However, at project closing, the physical works associated with this indicator were not undertaken. Figure 3: Assembly and installed uliga boat lift (source: MIMIP aide memoire) Page | 8 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 31. MIMIP was expected to enhance port operational efficiency by increasing container yard productivity at Delap Dock (number of containers moved per hour). The target was to achieve a 10% increase in productivity by the end of the project. This indicator was not achieved at project closing as civil works were not done. Improved climate resilience of maritime infrastructure and operations 32. The objective of enhancing connectivity through improved climate resilience of maritime infrastructure against natural hazards and climate change impacts was monitored by the outcome target, “Project docks rehabilitated with at least one climate resilience measure (number)”. At project closing, no physical works were carried out and the indicator was not achieved. 33. The outcome on docks with sectoral and contingency planning tools that address natural disasters and climate change was achieved. MIMIP provided technical assistance for port planning, including infrastructure and safety assessments, design consultancy, and strategic plans and supported CIU and RMIPA capacity development. An Institutional and Governance Review (IGR) recommended amendments to maritime laws and regulations. The RMIPA feedback on the recommendations was not received before the IGR contract expired, closing the activity without an implementation plan for the proposed amendments to the Maritime Act and Ports Authority Act. The strategic port plans were completed. The CERC was not triggered. A detailed CERC Manual was prepared and adopted under MIMIP. The manual outlines the implementation arrangements for the Contingent Emergency Response. At project completion, the CERC manual is in place. MIMIP put in place procedures to trigger and access immediate funds for eligible crisis or emergency. The CERC manual was updated to account for health-related emergencies given lessons learned from COVID. Justification of Overall Efficacy Rating 34. The overall efficacy of the project is rated negligible. C. EFFICIENCY Assessment of Efficiency and Rating 35. No physical works were undertaken on which the benefits initially projected of accident reduction and avoided rehabilitation are attributable and ex-post EIRR and NPV therefore could not be estimated. Of the US$10.74 million financing utilized, US$5.3 million financed core project activities and US$5.44 million financed the CIU. The US$0.19 million for Component 1 financed the Uliga boat hoist to remove pilot boats from water for maintenance purposes, the US$0.85 for Component 2 financed AtoNs for Majuro and outer islands (excluding Ebeye) and provided SAR equipment and safety devices, while US$9.7 million for Component 3 financed the needs assessment, design consultancy, IGR as well as PIU and MTR costs, with US$3.4 million spent on the technical activities and the rest spent on the administration costs. 36. Overall implementation efficiency was low due to significant procurement delays, poor coordination, and staffing challenges in the PIU and CIU. While difficulties recruiting and retaining technical and CIU staff and associated delays and costs are expected in infrastructure operations in remote locations, overall efficiency was still below expectations. There were significant delays in the procurement process, and there was a substantial risk associated with the procurement activities. The US$5.44million of Component 3 financed CIU operations and incremental operating costs supported implementation of financial management, procurement, environment, and social staffing needs for all of ten IDA-financed operations in the RMI portfolio. Page | 9 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 37. Project Component costs at appraisal and at project closure in August 2024 are compared in Table 3 below. Table 3: Component costs Original Estimated Cost Cost at Project Closure Components (US$m) (US$m) Component 1: Maritime Infrastructure 12.35 0.19 Component 2: Maritime Safety and Security 7.65 0.85 Component 3: Technical Assistance for Port Planning 13.12 9.7 and Project Management Component 4: Contingent Emergency Response 0.00 0.00 Component (CERC) Total 33.12 10.74 38. The Efficiency Rating is Negligible. D. JUSTIFICATION OF OVERALL OUTCOME RATING 39. The project is rated Highly Unsatisfactory. E. OTHER OUTCOMES AND IMPACTS (IF ANY) Gender 40. The intermediate indicator on percentage of contractor staff trained on GBV & Codes of Conduct was fully achieved with 100% of all workers signing the Codes of Conduct and all PIU staff successfully attended training. 41. Training was delivered by the MIMIP PIU Project Manager (PM) to College of Marshall Islands (CMI) that supported women in the maritime sector. Institutional Strengthening 42. MIMIP financed the IGR which identified various gaps in strategies, policies, and governance in stakeholders involved in the maritime sector and developed recommendations to strengthen the institutions. Two new positions including hiring a Project Administrator and a Maritime Engineer to manage logistics, administrative tasks, and technical guidance, were added to the PIU since March 2023 to help speed up progress. The CIU provided fiduciary and safeguards support to ten IDA financed projects in RMI. The World Bank task team provided in-country Hands-on Expedited Implementation Support (HEIS) to improve procurement and financial management. Mobilizing Private Sector Financing 43. The project did not include mobilization of private sector financing. Poverty Reduction and Shared Prosperity 44. The MIMIP PDO was designed to support continued accessibility and mobility particularly in the remote geography of RMI, which are crucial especially given that RMI imports almost 100% of its food, pharmaceuticals, and Page | 10 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 fuel. Training and personnel support improving capacity to deliver port and maritime services in RMI’s context enhanced access to economic opportunities and protected livelihoods. Other Unintended Outcomes and Impacts 45. Development partner collaboration. MIMIP was the first transport project in RMI and there was limited prior investigative work in the maritime sector. The project enhanced development partner collaboration, utilizing a port facility security assessment undertaken by US Coast Guard (USCG) to update the port facility security plan and designed ISPS training based on USCG standard assessment. USCG Boating Safety team carried out an ISPS training seminar. Search and rescue training (SAR) was provided by Japan to RMIPA. 46. Remote Implementation Support. The project faced procurement challenges, which were exacerbated by the impacts of COVID-19 and restrictions on travel to RMI. These delays in finalizing procurement transactions slowed down the overall implementation. Given the travel restrictions, the project adapted by conducting virtual meetings fortnightly via videoconferencing and remote coordination. This allowed for continued progress in procurement and other project activities despite the inability to have in-person interactions. III. KEY FACTORS AFFECTED IMPLEMENTATION AND OUTCOME KEY FACTORS DURING PREPARATION 47. Insufficient project implementation readiness and inadequate implementation arrangements. MIMIP was the World Bank's first transport sector project in RMI. Limited prior investigation existed. An identification mission was undertaken in June 2017 and three preparation missions in February 2018, June 2018, and August 2018. A US$1.5million project preparation advance (PPA), of which US$1.08 million was utilized, was provided to mitigate the risk of initial project preparation delays. As MoTC did not have the experience or capacity to procure a consultant according to World Bank procedures, the CIU was to be mobilized to hire and then assist an experienced PM to manage and oversee the technical aspects associated with the PPA activities, as well as to implement MIMIP after its approved by the Board. While the PPA financed public consultations and mobilization of CIU staff to prepare safeguards instruments, GoRMI was unable to recruit a PM contract until June 2020, after World Bank Board approval. The resulting project design was too ambitious as it required several sequential steps to happen during implementation, each of which involved time-consuming procurement: (i) mobilizing a PIU, (ii) procuring and then implementing a needs assessment and designs, (iii) procuring and implementing civil works. Moreover, the decision to recruit individual consultants to the RMIPA PIU instead of a consulting firm exacerbated staffing and institutional capacity risks associated with the project’s remote location. The combination of low readiness and limited PIU capacity were key factors contributing to slow implementation progress and indirectly contributed to the World Bank’s decision to not agree to extend MIMIP’s closing date. 48. Inclusion of CIU costs under core Project Component 3. Preparation did not establish clear accountability mechanisms for CIU supervision or adequate M&E arrangements for monitoring its performance. For instance, the M&E design lacked indicators for tracking CIU performance. Division of responsibility for implementation support to MIMIP between two task team leaders, one for CIU and one for the rest of the project, weakened feedback loops and accountability. Page | 11 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 A. KEY FACTORS DURING IMPLEMENTATION Factors subject to the control of the World Bank 49. Procurement Support: The World Bank initiated Hands-on Expanded Implementation Support (HEIS) to provide procurement support across the World Bank portfolio in the Marshall Islands. This support was critical for expediting procurement of key personnel for the PIU to strengthen the PIU's capacity and improve project implementation. However, the HEIS started at the fourth year of MIMIP’s implementation. The additional support could have been considered earlier. 50. Acceleration action plan post-MTR. The MTR developed and encouraged compliance to an acceleration action plan to expedite activities that could be implemented with minimal design requirements while deferring more complex activities until designs were completed. The World Bank also recommended recruiting a Consulting Firm to serve as the MIMIP PIU and prepared a staffing structure, but GoRMI did not agree. To expedite implementation, the first restructuring was completed in July 2023 to revise results indicators and implementation arrangements in line with the MTR recommendations agreed by both parties. After GoRMI implementation of the acceleration action plan proceeded slowly and with minimal results, the World Bank informed GoRMI that the project closing date of August 1, 2024, would not be extended and proposed that GoRMI consider seeking partial cancellation of MIMIP financing and recommit those resources to other operations in RMI. The decision not to seek earlier cancellation of MIMIP provided GoRMI time to implement small ongoing activities and complete the civil works designs. Factors subject to the control of the government and/or implementing entities 51. Delays in Needs Assessment. The commencement and completion of the needs assessment consultancy faced extended delays. The procurement process for the Needs Assessment was protracted, with expressions of interest published in October 2019 and the contract fully signed in December 2020. COVID-19 travel restrictions which lasted for approximately 76 percent of the project duration further complicated the situation, preventing consultants from traveling to RMI and necessitating assumptions to complete the assessment. The needs assessment was expected to take six months to complete; however, was completed in March 2022, 15 months after contract signature. This delay significantly impacted the timeline for subsequent activities, including the D&S consultancy and the procurement of civil works. 52. Challenges within the CIU. Project Preparation identified capacity building support to the CIU, which provided a pool of environment, social, and fiduciary professionals to support World Bank financed operations in RMI, as a necessary to avoid overburdening limited capacity in the implementing agencies. The CIU, established to provide preparatory, implementation, and advisory support to World Bank projects in RMI, faced its own set of challenges. The CIU design was not efficient to provide support to the PIUs. The CIU coordination with the PIU was inefficient with a lack of clarity on roles and responsibilities between the PIU and the CIU. RMIPA also was slow to act upon – and eventually did not implement – Standard Operating Procedures (SOPs) to define for each institution clearly defined roles, to ensure that activities are effective and implemented well as was recommended at MTR. 53. Capacity Constraints in Implementing Agencies. The IA’s weak institutional capacity was partially mitigated by consultants, but early implementation arrangements were inadequate. Initially, the RMIPA PIU had only a PM and Officer, causing delays in key positions. Over the project duration, changes of the PM three times lost continuity and caused further delays. The Ministry of Justice also faced capacity constraints, transferring responsibilities to RMIPA. Critical meetings were missed, and the operations manual was inconsistently used during procurement. 54. The IAs lacked procurement experience in large complex engineering projects. Delays in civil works launch was generally from delays in recruitment of the design and engineering firms. The IA’s lacked sufficient expertise in preparing bidding documents, technical evaluations, drafting contracts, contract monitoring and contract amendments. The CIU was Page | 12 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 included to mitigate this capacity risk but faced its own challenges as indicated in para 52. Delayed project steering committee and line ministry decision making impacted procurement decision making. HEIS was initiated in year four of project implementation however, the PM was working remotely for the remaining stages of the project and a new PM was hired to manage the project until closure. 55. Information Sharing Restrictions. Restrictions on sharing sensitive information with the World Bank and relevant MIMIP consultants hampered implementation progress on key activities. For instance, the needs assessment consultant and the Institutional and Governance Review (IGR) consultant faced delays due to restricted access to port facility security information. Factors outside the control of government and or implementing entities 56. COVID-19 Travel Restrictions. The COVID-19 pandemic significantly impacted the project, particularly the Needs Assessment consultancy. Travel restrictions9 prevented consultants from traveling to the Marshall Islands, which meant that some assumptions had to be made without on-site visits. This caused delays in completing the Needs Assessment, essential for informing later project activities like the D&S consultancy and civil works procurement. Site visits for the Needs Assessment were postponed and done as a desktop assignment. When COVID restrictions lifted in May 2023 (three years and ten months after the project became effective in July 2019), the D&S consultancy had to validate the assumptions made in the Needs Assessment, further delaying subsequent works. 57. Remoteness, Visa, Mobilization, and Accommodation Challenges. Recruiting qualified staff was difficult due to the remote location, leading to high turnover and loss of program knowledge. Consultants typically took three to four months to mobilize and find housing. Expired visas required reapplication, causing further delays. Accommodation costs were also a significant challenge identified at MTR. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) M&E Design 58. The MIMIP M&E design aimed to gather data to track project progress in improving the maritime sector. This involved periodic monitoring through semi-annual reports to track inputs, funds disbursement, and targeted indicators. The IAs were responsible for evaluating their activities against agreed indicators with CIU support. Despite the PAD acknowledging the need for institutional strengthening, inadequate attention was given to institutional capacity strengthening benefits of the project in the M&E design. Further, no indicator tracked CIU's activities and fund usage, reducing accountability and efficiency. Indicators for Technical Assistance for Port Planning and Project Management were inappropriate, and the results chain lacked assumptions, impeding physical works implementation. M&E Implementation 59. Implementation Support Missions (ISMs). The World Bank project team conducted two to four ISMs every year to monitor progress, address challenges, and provide technical assistance. During COVID19 lockdown, travel to RMI was restricted. The project team adapted by conducting fortnightly virtual meetings and remote coordination. This allowed for continued progress in procurement and other project activities despite the inability to have in-person interactions. 9 On March 28, 2020, RMI declared a State of Emergency banning international travel into the RMI. The travel restrictions were lifted on May 11,2023 Page | 13 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 An MTR mission was carried out in November 2022. This review provided an opportunity to take stock of implementation progress and make necessary adjustments. 60. Progress reports were delayed severally. While MIMIP was designed to be monitored periodically through semi- annual reports which is appropriate to effectively monitor project progress, the semi-annual progress reports were often not been submitted on time. Semi-annual progress reports for January 1, 2021 – September 30, 2021 (consolidated reporting period), and October 1, 2021 - March 31, 2022, were not finalized at MTR mission in November 2022 and shared with the World Bank. The annual workplans and budgets were also not always submitted on time. The project team supported the client with the addition of the PIU Project Administrator to improve project M&E. M&E Utilization 61. MIMIP task team conducted regular ISMs, which generated detailed aide memoires and reports. The documents provided comprehensive updates on the project's progress, highlighting challenges, and key issues needing attention. The MTR Aide Memoire (AM) highlighted the need to bolster the Project Implementation Unit (PIU) by hiring a full-time Maritime Engineer and a Project Administrator/Assistant as the limited capacity of RMIPA had delayed project implementation and recommended an international consulting firm. An Acceleration Action Plan was drafted including specific activities to improve capacity within the PIU and fast-track civil works and goods procurement. Justification of Overall Rating of Quality of M&E 62. Based on the above, quality of M&E is rated modest. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 63. The project’s overall safeguards is rated moderately satisfactory. Activities under MIMIP followed the World Bank Safeguards procedures and policies. Environmental and social safeguards were integrated into the design components of the project, including environmental protection measures, and worker and community safety aspects. An Environmental and Social Management Framework was prepared, including an outline Environmental and Social Management Plan (ESMP). An ESMP was later prepared by the design consultancy for the physical works to be carried out at selected ports (not conducted under MIMIP). The CIU safeguards specialists provided support to all aspects of the project ensuring that land acquisition and economic displacement were monitored, and that landowners were informed about lease boundaries. Involuntary Resettlement was not triggered and the project assessed and screened activities to ensure that involuntary resettlement impacts were avoided. Land required for project infrastructure was to be made available through either existing or new voluntary leases. The replacement of a beacon light at Ejoj had been deferred due to objection from the traditional landowner due to request for a lease for the site of the existing beacon. The Grievance Redress Mechanism (GRM) was updated to address Gender-Based Violence (GBV) and Sexual Exploitation, Abuse, and Harassment (SEAH) related grievances. An Environment, Health and Safety Policies and Procedures Manual was prepared for RMIPA port operations, together with a Handbook and Incident Response Arrangement. The PIU received all documentation but faced major challenges in getting engagement from the RMIPA on implementation of Port Environment, Health and Safety Manual. No physical construction works were carried out. Installation of a navigation light, assembly of some floating navigational aids (but not installation), and assembly of the Uliga boat hoist were carried out and no complaints were received. 64. The procurement rating is unsatisfactory at project close stemming from weak project governance causing delayed procurement and non-launch of works prior to closing date. Of the US$33.1m financing at appraisal, US$10.74 million financing was utilized, of which US$5.3 million financed core project activities. Twenty-two (22) procurement packages of thirty-two (32) planned for RMIPA on the Systematic Tracking of Exchanges in Procurement (STEP) were Page | 14 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 completed. Between October 2023 and June 2024, two contracts for US$192K and US$45k respectively were signed, for Uliga Boatlift. The project procurement risk was elevated from substantial to high in September 2023 due to lack of implementation progress despite having CIU specialists supporting the project. 65. The FM project performance is rated unsatisfactory. MIMIP faced several issues with regards to FM, including delays in budget clearance, periods in which an inactive designated account affected funds utilization, undocumented variances, unreliable financial reporting, an incomplete contract register, withdrawals from the wrong category, and untimely reconciliation of accounts. Poor coordination between the PIU and the CIU contributed to these challenges. Incorrectly deducting tax from some invoices caused certain accounts to fall into arrears. A post-closure expenditure review confirmed the existence of gaps in financial controls identified during implementation. The FM risk rating was maintained at "Substantial" throughout the project duration. C. BANK PERFORMANCE Quality at Entry 66. Project implementation readiness. While the project relevance was high and aligned with key strategic priorities of maritime connectivity and climate resilience, the project design suffered major gaps in readiness and institutional capacity assessment and mitigation. The World Bank provided a Project Preparation Advance (PPA), however not all activities planned to mitigate initial implementation delays were completed prior to Board approval. The PAD indicated that while the types of activities and investments under MIMIP were identified, the extent of the works to be completed depended on the results of implementing Component 3, which was anticipated within the first two years of MIMIP’s implementation but experienced delays. 67. Technical design. The project design was too ambitious for the capacity of the IAs. The initial risk assessment may not have fully captured the complexities and potential delays that later materialized in implementation. As noted in paragraph 47, the project design anticipated several sequential steps could be implemented in a tight timeframe without adequately accounting for the governance environment, remote location, and capacity risks. The delays were identified and addressed through ISMs, MTR and acceleration action plans that were formulated for the project to progress towards achievement of PDO. The project implementation readiness could have been stronger to prevent delays. Quality of Supervision 68. Implementation support. The World Bank provided continuous support through two to four in person ISMs. Missions were carried out virtually while pandemic travel restrictions were in place, in person missions resumed after restrictions were lifted in May of 2023. The project rating was downgraded to moderately unsatisfactory in May 2022. The Implementation status and results report (ISR) includes corrective measures to improve project progress ahead of MTR. Virtual videoconference follow-up calls were conducted every fortnight, and an MTR mission reviewed the project and made recommendations to accelerate progress. HEIS support was initiated. Division of responsibility for implementation support to MIMIP between two task team leaders, one for CIU and one for the rest of the project, weakened feedback loops and accountability. The World Bank addressed the challenges faced during implementation, supporting the client in executing an ambitious project design for their capacity. The World Bank proposed various restructuring options, including updates to the results framework (RF), unfortunately, the necessary data/information to make the changes was not available. Recommendations to engage an international consultancy firm to support project implementation following MTR, did not come to fruition, as GoRMI was concerned with lengthy procurement process and cost implications. Page | 15 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Justification of Overall Rating of Bank Performance 69. Based on the above, the bank performance is rated moderately unsatisfactory. D. RISK TO DEVELOPMENT OUTCOME 70. The implementation of the planning level technical documents, designs, and CERC manual may not be maintained due to limited institutional capacity. The use of the SAR equipment and the installation of delivered AtoNs are contingent upon the limited capacity of the responsible agencies or the initiation of a follow-on project. V. LESSONS AND RECOMMENDATIONS 71. Project implementation readiness and client capacity. Despite access to the PPA, the GoRMI was unable to complete preparatory studies prior to project approval due to limited institutional capacity and difficulties recruiting suitable technical staff given the remote location of RMI. Project preparation in FCV contexts should leverage all available mechanisms to complete preparatory activities during project preparation, including World Bank-executed trust funds and partnering with development partners with experience and presence in project country. Measures like SOPs, clear coordination mechanisms, and high-level oversight should be established from the outset when operations require coordination among multiple stakeholders, as MIMIP did. Capacity constraints in RMI can be further mitigated by sourcing interim capacity from international firms and staffing the PIU with a firm rather than individual consultants. Such arrangements would improve project management and accountability and may significantly reduce risks associated with high staff turnover, protracted recruitment timelines, and loss of institutional memory. 72. Operations in FCV contexts should generally have a modest level of ambition and complexity and a flexible project design. Focusing on strengthening the enabling environment and targeting fewer but more accessible and strategic port facilities would have been better matched to the overall context of RMI in which transportation, information sharing, implementing agency capacity, and governance arrangements all pose significant challenges. Starting with a smaller operation would have made it easier to reassess the feasibility and restructure MIMIP during COVID, whereas scale-down a larger MIMIP scope was challenging given that GoRMI had already raised expectations of beneficiary communities. 73. Restructurings should be done in a timelier manner to allow for a reassessment of the project's feasibility, incorporate changes and or scale-down (or up) appropriately. When the project doesn’t progress as expected during implementation, the World Bank and client need to consider and act on project restructuring and/or cancellation. Making timely decisions would facilitate the work of all parties involved. 74. Separate central implementation unit. Portfolio-level CIU support should be implemented as a standalone IPF operation with an efficient and robust monitoring and evaluation framework and stronger World Bank implementation support. A central services unit (CSU) standalone IPF will have greater accountability for performance. The design of the CSU should include a clear mandate to provide portfolio-wide functions such as fiduciary and M&E, formalize increased hands-on support to the PIUs and support a more focused approach to portfolio management to achieve performance targets. Page | 16 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS @#&OPS~Doctype~OPS^dynamics@icrresultframework#doctemplate A. RESULTS FRAMEWORK PDO Indicators by Outcomes Efficiency Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Reduction in cargo vessel turnaround 1,660.00 Feb/2019 1,630.00 Aug/2024 1,660.00 Aug/2024 times at Delap Dock (Minutes) Increase in container yard 0.00 Feb/2019 10.00 Aug/2024 0.00 Aug/2024 productivity at Delap Dock (Percentage) Safety and security Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Project docks fully compliant with 0.00 Feb/2019 3.00 Aug/2024 0.00 Aug/2024 ISPS requirements (Number) Climate resilience Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Docks rehabilitated with at least one 0.00 Feb/2019 3.00 Aug/2024 0.00 Aug/2024 climate resilience measure (Number) Docks with sectoral and contingency 0.00 Feb/2019 3.00 Aug/2024 3.00 Aug/2024 planning tools that address natural disasters and climate change (Number) Page 17 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Intermediate Indicators by Components Maritime Infrastructure Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Area of cargo yard paved at Delap 0.00 Feb/2019 0.00 Aug/2024 0.00 Aug/2024 Dock (Square Meter(m2)) Measures implemented to improve No Feb/2019 No Aug/2024 No Aug/2024 drainage at Delap dock (Yes/No) Repairs to the existing berth and 0.00 Feb/2019 0.00 Aug/2024 0.00 Aug/2024 facilities at Project docks (Number) Energy efficiency recommendations 0.00 Feb/2019 0.00 Aug/2024 0.00 Aug/2024 implemented (Number) Maritime Safety and Security Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Project docks with safety solutions 0.00 Feb/2019 0.00 Aug/2024 0.00 Aug/2024 implemented (Number) ISPS recommendations implemented 0.00 Feb/2019 0.00 Aug/2024 0.00 Aug/2024 against identified shortcomings (Percentage) RMIPA implementation of SOP on No Feb/2019 No Aug/2024 No Aug/2024 trafficking referral service (Yes/No) Percentage of contractor staff trained 0.00 Feb/2019 100.00 Aug/2024 100.00 Aug/2024 on GBV & Codes of Conduct (Percentage) Technical Assistance for Port Planning and Project Management Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Page 18 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Grievances registered related to 0.00 Feb/2019 100.00 Aug/2024 100.00 Aug/2024 delivery of project benefits that are addressed (Percentage) People with enhanced access to 0.00 Aug/2023 0.00 Aug/2024 0.00 Aug/2024 transportation services (Number) Contingent Emergency Response Component Indicator Name Baseline Closing Period (Original) Closing Period (Current) Actual Achieved at Completion Result Month/Year Result Month/Year Result Month/Year Result Month/Year Adoption of a CERC manual given the No Feb/2019 Yes Aug/2024 Yes Aug/2024 risk of natural disaster (Yes/No) Page 19 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 B.KEY OUTPUTS Efficiency 1. Reduction in cargo vessel turnaround times at Delap Dock (minutes). PDO Indicators 2. Increase in container yard productivity at Delap Dock (percentage). Key Outputs No works carried out,no ouputs were achieved. (linked to the achievement of the PDO Outcome) Safety and security PDO Indicators 3. Project docks fully compliant with ISPS requirements (number). 1. Port Facility Security Plan (PFSP) updated and the Statement of Compliance Key Outputs issued until February 2029. No works carried out to achievede ISPS (linked to the achievement of the PDO Outcome) compliance. Climate resilience 4. Docks rehabilitated with at least one climate resilience measure PDO Indicators 5. Docks with sectoral and contingency planning tools that address natural disasters and climate change Key Outputs No works carried out,no ouputs achieved. (linked to the achievement of the PDO Outcome) Page 20 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Efficiency 2. Reduction in cargo vessel turnaround times at Delap Dock PDO Indicators 3. Increase in container yard productivity at Delap Dock Key Outputs No outputs were achieved. (linked to the achievement of the PDO Outcome) Safety and security PDO Indicators 4. Project docks fully compliant with ISPS requirements Key Outputs No outputs were achieved. (linked to the achievement of the PDO Outcome) Climate resilience 5. Docks rehabilitated with at least one climate resilience measure PDO Indicators 6. Docks with sectoral and contingency planning tools that address natural disasters and climate change Key Outputs sectoral and contingency planning tools that address natural disasters and (linked to the achievement of the PDO Outcome) climate change were prepared for 3 docks. Page 21 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Contingent Emergency Response Component Intermediate Results Indicators 12. Adoption of a CERC manual given the risk of natural disaster Key Outputs A CERC manual was prepared and adopted. (linked to the achievement of the Component) Technical Assistance for Port Planning and Project Management 10. Grievances registered related to delivery of project benefits that are Intermediate Results Indicators addressed 11. People with enhanced access to transportation services Key Outputs No grievances were registered. (linked to the achievement of the Component) Maritime Safety and Security 6. Project docks with safety solutions implemented 7. ISPS recommendations implemented against identified shortcomings Intermediate Results Indicators 8. RMIPA implementation of SOP on trafficking referral service 9. Percentage of contractor staff trained on GBV & Codes of Conduct Key Outputs 1. Uliga pilot boat hoist installed (linked to the achievement of the Component) 2. 100% of contractor staff were trained on GBV & Codes of Conduct Maritime Infrastructure 2. Area of cargo yard paved at Delap Dock 3. Measures implemented to improve drainage at Delap dock Intermediate Results Indicators 4. Repairs to the existing berth and facilities at Project docks 5. Energy efficiency recommendations implemented Page 22 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 Key Outputs No outputs were achieved. (linked to the achievement of the Component) Page 23 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Keelye Rinchen Hanmer Team Leader Toufiq Ahmed Team Leader Lanieta Widreu Senibulu Financial Management Specialist Nicholas Gerard Williams Procurement Specialist Eric Leonard Blackburn Procurement Specialist Penelope Ferguson Environmental Specialist Suzanne Dray Environmental Specialist Rachelle Therese Marburg Social Specialist Craig Andrew Clark Social Specialist Dean Georgakopoulos Procurement Team Maria Cristina Rosa Lucia Villani Procurement Team Bridgette Eliza Hogan Procurement Team Lorraine D. James Team Member James A. Reichert Team Member Marie Michelle Leonardo Manzanillo Team Member John A. Lowsby Team Member Andrey Orlando Asian Team Member Chanin Manopiniwes Team Member Cherry Lyn Dacanay Somcio Team Member Caroline Ruth Holo Team Member Page 24 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 @#&OPS~Doctype~OPS^dynamics@icrannexstafftime#doctemplate B. STAFF TIME & COST Staff Time & Cost Stage of Project Cycle No. of Staff Weeks US$ (including travel and consultant costs) Preparation FY17 3.925 42,015.92 FY18 16.365 126,086.73 FY19 24.142 209,372.06 FY20 0.694 13,471.06 FY21 0.000 5,027.64 FY22 0.000 7,748.22 FY23 0.000 7,606.39 FY24 0.000 9,083.27 Total 45.13 420,411.29 Supervision/ICR FY18 1.325 7,038.93 FY20 21.366 91,186.24 FY21 21.228 81,236.32 FY22 20.954 101,606.55 FY23 23.073 137,919.50 FY24 26.129 174,094.53 FY25 13.078 67,272.61 Total 127.15 660,354.68 Page 25 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ANNEX 3. PROJECT COST BY COMPONENT Component Amount at Approval (US$M) Actual at Project Closing (US$M) Maritime Infrastructure 12.3 0.19 Maritime Safety and Security 7.7 0.85 Technical Assistance for Port 13.1 9.7 Planning and Project Management Contingent Emergency Response 0.0 0.0 Component Page 26 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ANNEX 4. EFFICIENCY ANALYSIS 1. Maritime connectivity is essential for RMI’S basic economic and social functions and for achieving RMI’s national development plans. Given RMI’s geographic characteristics and its susceptibility to severe weather events and climate change, the provision of safe, efficient, and climate-resilient sea transport services is crucial. A fundamental requirement for providing intra-island shipping services is the presence of safe, well-functioning maritime transport infrastructure and assets, such as wharfs, docks, and jetties. Together, maritime services and assets support inclusive economic growth and social development by ensuring that RMI’s communities have reliable access to economic opportunities, services, and information. 2. The project disbursed US$10.74 million at closure compared to US$33.12 million expected at appraisal. US$5.3 million, went to core project activities and, US$5.44 million, went towards financing the CIU. The US$0.19 million for Component 1 Maritime Infrastructure financed the Uliga boat hoist, the US$0.85 million for Component 2 Maritime Safety and Security financed AtoNs for Majuro and outer islands (excluding Ebeye) and provided SAR equipment and safety devices while US$9.7 million for Component 3 Technical Assistance for Port Planning and Project Management financed the needs assessment, design consultancy, IGR as well as PIU and MTR costs, US$5.44million of Component 3 financed CIU operations and incremental operating costs. 3. Key benefits expected from MIMIP included: (i) accident reduction and avoided rehabilitation due to improved, climate-resilient infrastructure; and, (ii) ensuring safety and security standard. With a reduction in accidents, MIMIP will also help avoid cargo loss and damage, reduce lengthy and costly SAR missions, and reduce numbers of passenger fatalities and injuries. 4. Since no maritime infrastructure and safety and security components were achieved, the benefits initially projected from accident reduction, avoided rehabilitation, and improved safety and security standards will not materialize. The costs significantly reduced from the planned US$33.12 million to US$10.74 million. The ex-post EIRR and NPV could not be calculated or evaluated given that the ex-ante analysis was based on with or without implementation of physical maritime infrastructure and safety and security equipment which did not take place during the project. Page 27 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS The borrower’s ICR can be found here. The borrower provided the following comments on the bank’s ICR. We have no other comments in the report. But we just want to indicate the following points: 1. CIU should not be a part of any process in the implementation of projects 2. The full grant funds should be managed by the PIU, with direct link to the MOF and WB (e.g.MIMRA Projects) Thanks Page 28 The World Bank Marshall Islands Maritime Investment Project (P161382) ICR 00116 ANNEX 6. SUPPORTING DOCUMENTS 1. Marshall Islands - Maritime Investment Project (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/817051556639882607 2. LEGRL. Official Documents- Agreement for Advance V1660-MH (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/793571521734744259 3. Official Documents Financing Agreement for GRANT NUMBER D452-MH Financing Agreement (Marshall Islands Maritime Investment Project)https://documents1.worldbank.org/curated/en/663741562072482321/txt/Official-Documents- Financing-Agreement-for-Grant-D452-MH.txt 4. Hanmer,Keelye Rinchen. Disclosable Restructuring Paper - Marshall Islands Maritime Investment Project - P161382 (English). Washington, D.C. : World Bank Group http://documents.worldbank.org/curated/en/099061423222035014 5. Hanmer,Keelye Rinchen.Disclosable Restructuring Paper - Marshall Islands Maritime Investment Project - P161382 (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099040324014512929 6. Keelye Rinchen Hanmer.Disclosable Restructuring Paper - Marshall Islands Maritime Investment Project - P161382 (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099073124110032828 7. Other MIMIP documents can be found here. Page 29