Aide Memoire Project: Kiribati Outer Islands Transport Infrastructure Investment Project (KOITIIP) Project Stage: Implementation Team Leader(s): Anita Shrestha, Fiona Collin, Myint Kyaw (WB) Cha-Sang Shim (ADB) Country: Republic of Kiribati Key Data IDA Grant No.: IDA- D5590 P165838 (WB) Dec 31, 2027 (WB) Project No. IDA Grant No.: IDA - E3090 Closing Date 53043-001 (ADB) Dec 31, 2027 (ADB) ADB Grant No.: G0713-KIR USD 40 m (WB) IDA Disbursements 27% Financing USD 12 m (ADB) ADB Disbursements 42% Board Approval Mar 12, 2020 (WB) Date of Last Mission Start October 28, 2024 May 5, 2025 Date June 30, 2020 (ADB) Mission Date Effectiveness Oct 2, 2020 (WB) Mission End Site Visit Date N/A May 9, 2025 Date Sept 15, 2020 (ADB) Date Introduction 1. Representatives of the Government of Kiribati (GoK) met from May 5 to 9, 2025, with the Asian Development Bank (ADB) and the World Bank (WB) to carry out a Mid-Term Review (MTR) and MTR Phase 2 respectively mission for the Kiribati Outer Islands Transport Infrastructure Investment Project (KOITIIP). The Mission is grateful for the support of the Ministry of Finance and Economic Development (MFED), the Ministry of Information, Communications and Transport (MICT), and the Ministry of Infrastructure and Sustainable Energy (MISE). The Mission also sincerely thanks the Outer Islands Implementation Unit (OIIU), Kiribati Fiduciary Services Unit (KFSU) and GoK colleagues for thorough presentations in working-level meetings. 2. The objectives of the mission were to review the overall implementation progress since the last joint WB-ADB mission held on October 28-30, 2024; focusing on the progress of key project activities, and to specifically: (i) Review institutional, administrative, technical, outputs, outcomes, safeguards, social gender equality, economic, financial, operational priorities, risks, and other project aspects defined in the approval document; (ii) Review project expenditures and whether the project can be completed within the original cost estimates; (iii) Update contract award, disbursement projections, and procurement plan; (iv) Examine implementation problems that the projects are encountering or is likely to encounter and work out measures with the executing agency to resolve them; and (v) Update on the project’s Design and Monitoring Framework where change is necessary. 3. This Aide-Memoire (AM) records key findings and agreements reached during the mission between GoK and the WB and the ADB and is subject to WB and ADB management review. The dates and deadlines within the AM are those agreed at the end date of the mission. This AM includes the following Annexes: Annex 1: Agreed Actions Annex 6: Environmental and Social Annex 2: Persons Met and Mission Members Annex 7: Gender Action Plan Monitoring Report (ADB) Annex 3: Updated Project Management Plan Annex 8: Compliance with Grant Covenants (ADB) Annex 4: Technical Information Annex 9: Results Framework (WB) Annex 5: Financial Management Action Plan (ADB) Annex 10: Design and Monitoring Framework (ADB) 1 Official Use Only Summary Project Status Progress Towards Subject to a restructuring of the project, mainly to change the delivery modality of the Satisfactory Achieving Project causeway works agreed during the mission, the project will meet the PDO by the ◄► Development current closing date. The PDO remains highly relevant and the rating remains Objective (PDO) unchanged as Satisfactory. Implementation The rating for Implementation Progress (IP) continues to be Moderately Satisfactory Moderately Progress (MS). Most key activities have continued to progress since the last mission, albeit at a Satisfactory slower than expected pace. Hydrographic surveys and data processing completed, and ◄► all nautical charts for the outer islands are expected to be finalized by December 31, 2025. Designs for the maritime works are progressing as planned, but causeway works are not progressing as planned, primarily due to inadequate resources and capacity at MISE, and slow progress by the mentoring firm. However, MISE has put forward a credible plan to bring this back on track (explained below). Rating Trends: ▲ Improving ▼ Deteriorating ◄ ► No Change Key Issues 4. Implementation of the most critical project activities can be achieved by project closing, provided the Government of Kiribati moves forward with MISE’s decision to outsource causeway works and current delays to designs and E&S instruments are overcome in a timely manner. Rehabilitation of the causeways using MISE’s force account is experiencing delays, primarily due to inadequate resources and capacity and poor performance of the Mentoring Firm. The Firm, in coordination with MISE and OIIU, has agreed to update designs and E&S instruments for causeways, addressing the comments provided by the Mission, with completion expected within Quarter 4 of this calendar year. During the mission, MISE expressed interest in outsourcing rehabilitation of the causeways and is developing a detailed work plan to ensure the causeways are completed during the project period, to meet the project objectives. The Mission discussed various procurement approaches to outsource the causeway works. The most expedient way for outsourcing the causeways works would be through an amendment to the existing design and build (D&B) contract for the maritime facilities, as the D&B contractor is already mobilizing and operating on the same outer islands. 5. Designs for maritime facilities, including AtoNs, although were delayed by five months due to delays completing hydrographic surveys and data validation, are now expected to be completed by July 15, 2025 . The hydrographic surveys and data validation are now complete and all nautical charts, electronic and paper versions, for the outer islands are expected to be finalized by December 31, 2025. According to the updated implementation plan, the E&S instruments for D&B works will be finished by the end of September 2025, with construction completed up by the end of December 2026. This timeline allows for a one-year Defect Liability Period before the project closes on December 31, 2027. A Value Engineering Proposal (VEP)1 was received during the mission period, which may impact the contract price, and will need robust review by MISE and the Mentoring firm. 6. A hydrographic Unit has been established within the MICT, operated by three trained professionals - two females and one male - within this project. 7. MTR Conclusion and Project Restructuring. On May 16, 2025, MISE sent a letter to the WB informing about MISE’s decision to outsource the causeways to the private sector. This change in delivery modality would require Cabinet approval, which could take about a month. Considering preparation and adoption of the MISE 1 A VEP proposes changes to the scope of contract that can improve value without compromising essential contract functions or characteristics. 2 Official Use Only Force Account Manual is a disbursement condition for activities under Part 2.3(a) of the project and a legal covenant, as stipulated in Section I.C.1 of Schedule 2 to the Financing Agreement, of the KOITIIP Additional Financing, the MTR concluded that the proposed changes to the modality for delivery of the causeways will need to be addressed via project restructuring for International Development Financing. The restructuring should also consider (i) other impacts from changing the delivery modality of causeway works; (ii) prepare a timeline and implementation plan for completing the causeways via outsourcing (see paragraphs 21-22); and (iii) make other adjustments, including clarifying the PDO indicator for boat crews that have up-to-date maps and understand aids to navigations and intermediate gender indicator, as discussed in the last year missions (see paragraphs 26 and 50). 8. MISE and MICT continue to experience a high turnover rate among their engineering staff, who are accepting higher-paying positions in donor-funded projects. Consequently, MISE’s Civil Engineering Division is currently operating at 40 percent capacity, with three civil engineers out of six positions supported by KOITIIP. MICT has been only able to fill three of the five project-supported positions. This shortage is hindering their ability to fully leverage opportunities for staff development and upskilling provided under the project. A systematic approach is needed to maintain stable staffing levels among implementing entities and manage their expenses. The Mission urged MFED to collaborate with donors in Kiribati for effective implementation of the approved Remuneration Framework and countersign OIIU Project Manager’s contract amendment retaining qualified and high-performing national consultants. 9. By December 31, 2025, cumulative disbursement of the project is expected to reach 21 million (about 40 percent) in total. As of the MTR, the project has disbursed a total of 27 percent (US$10.8 million equivalent of US$40 million) of IDA funds, and a total of 42 percent (US$5.1 million of US$12 million) of ADB funds, and by December 31, 2025, the project is expected to disburse additional US$6 million total (IDA funds US$4.5 million and ADB funds US$1.5 million) upon publication of all nautical charts, completion of detailed designs for maritime facilities and causeways, and ongoing operations of the project implementing entities. Project Progress Component 1: Safe Inter-Island Navigation 10. Hydrographic Surveys. All Multi-Beam Echo Sounder and Lidar surveys performed by Hydrographic Survey and Mapping Consultant are now completed for the four outer islands. Survey results have been validated by United Kingdom Hydrographic Office (UKHO) (the Primary Charting Authority for Kiribati) for three of the islands, except Tabiteuea, and that validation is expected by the end of May 2025, before the Hydrographic Survey and Mapping Consultant’s contract expires on June 30, 2025. 11. Navigational Charts. The Electronic Navigational Chart (ENC) for Beru is already published by UKHO, and available on all vessels equipped with ECDIS (Electronic Chart Display and Information System). Abaiang’s ENC is expected in May 2025, Nonouti’s ENC in July 2025 and Tabiteuea’s ENC around November 2025. Standard Navigational Charts (SNCs), or paper charts, are scheduled to be made available by the end of this year. UKHO will provide the paper charts, as part of their contract with GoK. The Mission has recommended to consider printing both “standard paper charts� as well as A4 folded charts made of more resistant paper and easier to handle aboard small boats. 12. The mission encourages OIIU/MICT to finalize SNC production by mid-December 2025, bearing in mind that many local vessels are not equipped with ECDIS and are waiting for the new SNCs. Further navigational chart updates will be required, to account for changes to AtoNs, berthing facilities, and dredging in Beru. Actions: 3 Official Use Only • MICT/OIIU to confirm datasets validation for Tabiteuea by May 31, 2025 (completed) • Publication of nautical charts for four project Outer Islands by December 31, 2025 Component 2: Resilient Outer Island Access Infrastructure 13. Bathymetric survey data obtained under Component 1 can be used to assist the design work associated with sub-component 2.1 and 2.2. 14. Sub-Component 2.1 Improvement of Ship Safety Navigation and Sub-component 2.2 Rehabilitation of Island Access Infrastructure. The D&B Contractor has mobilized its team to four project islands, collected necessary data, and submitted 50 percent of the designs for maritime facilities and AtoNs to the Mentoring Firm for review in March 2025. All design works are due to be completed on July 15, 2025. As per the updated timetable submitted by D&B Contractor, the work will be completed by December 2026, three months earlier than the contract term. This would enable a full one-year Defect Liability Period before KOITIIP closes on December 31, 2027. The Updated Project Management Plan is attached to Annex 3. 15. In the 50 percent design package, D&B Contractor recommended replacing the existing 45 AtoNs as specified in the scope of their contract and an additional nine AtoNs (five in Nonouti plus four in Tabiteuea South) with no additional costs to MICT. D&B Engineer (Mentoring Firm) is to assess the relevance of the additional nine AtoNs. The mission also advised D&B Contractor to include in the design the required AtoNs to mark the future channel in Beru (at sea, in addition to the shore side leading lights). On May 2, 2025, D&B Contractor also submitted a value engineering proposal (VEP) to the Mentoring Firm, which amongst other issues, provided technical proposals to (a) enhance the maritime land-based shelter structures, and (b) recommended that instead of patch repairs as indicated in the D&B contract, that full replacement of the Beru ramp structure and a robust repair of the Beru sea-wall is required, due to the very poor condition of these structures and ongoing deterioration by coastal processes. The VEP, if it were to be fully or partially accepted, has significant cost implications that need to be fully assessed. 16. The 50 percent design package and VEP must be reviewed by MICT and the Mentoring firm as soon as possible and instructions provided to the D&B contractor, so as not to delay the design program, and also recognizing that opportunities to improve the durability of the structures comes with a cost that must be considered in view of the overall project financing available. Further technical information is presented in Annex 4. Actions: • MICT/Mentoring Firm to provide feedback on the 50 percent design report and the VEP to D&B Contractor by May 30, 2025 • MICT to advise on design vessel criteria, basin depth and options for the shelters, ramp and seawall at Beru, as part of considering the VEP from D&B Contractor by May 30, 2025 • MICT/OIIU to submit complete designs along with MICT’s comments to the WB and ADB by July 15, 2025 17. The WB and ADB have cleared the E&S screening reports, confirming their agreement with the required safeguards instruments for the dredging work and maritime facilities. 18. The jetty design at Abaiang should consider typical passenger vessel profiles serving island and not be designed only for workboats. To ensure inclusive access, the jetty should also be suitable for children, the elderly and disabled (avoid stairs, or double them by ramps). The WB also reminded D&B Contractor that all infrastructure and facilities built by the project shall meet climate resilience measures. 19. Sub-Component 2.3 Rehabilitation of Lagoon Crossings. The Mentoring Firm was selected to mentor and build capacity of MISE staff who would rehabilitate the project causeways, and support MICT with supervision of maritime works executed under the D&B Contract. In relation to the causeways, the Mentoring Firm is also responsible for planning, designing and preparing the E&S instruments for causeway rehabilitation through Force Account. The Mentoring Firm has conducted site inspections, condition assessment and data collection 4 Official Use Only that will be needed for the design phase and E&S assessments, and submitted a draft concept design on May 3, 2025. The draft concept design is incomplete, and does not include material quantities, E&S screening or preliminary drawings. The concept design solutions do not reflect the different risk profiles of the causeways, along with limited rationale for the proposed design options (in particular installation of new culverts). Opportunities exist to use surplus materials form dredging spoil for the construction of the causeways, which could reduce costs and environmental impacts. The concept stage cost estimate is US$7.7 million for the 11 causeways, inclusive of a 10 percent contingency. This is above the US$7 million budget for these works, further emphasising the need for MISE and the Mentoring Firm to conduct a robust value engineering process considering the risk of the sites before finalizing the concept design. The Mission also agreed that if the revised cost estimate comes higher than the budget, MISE would prioritize the causeways requiring immediate attention, with prioritization criteria developed in collaboration with the Mentoring Firm. Action: • MISE to review the causeway concept design options and estimated costs with the Mentoring Firm by May 15, 2025 20. The Mentoring Firm’s suggestion to widen the causeways was discussed. The WB team clarified that permanent widening of the existing causeways is not part of the project scope, unless it can be justified for technical constructability issues or to address safety concerns, however traffic volumes are very low. The Mentoring Firm confirmed that they proposed temporary widening during the construction period. 21. Delivery modality of the causeway works. Delivery of the causeways has to date been envisaged under a Force Account modality. However, MISE is facing extensive challenges including the lack of key staff, functioning equipment, and significant logistical, construction management and resource challenges. Further, the design phase and provision of E&S assessments are delayed, but expected to be completed within Quarter 4 of this calendar year. Alternative options such as outsourcing the construction stage were discussed, with MISE expressing agreement to this option. Changing the modality would have other impacts too, including (a) revising the scope of the mentoring firm to include supervision of causeway construction (as opposed to mentoring MISE force account team), (b) reconsidering MISE’s staffing and capacity building requirements supported under Component 3 (refer also paragraph 24); and (c) impacting the procurement timeline. This change in delivery modality would need to be considered by MISE management and re-considered by Cabinet. Considering completion and adoption of the MISE Force Account Manual is a disbursement condition for activities under Part 2.3(a) of the project and referred to in a legal covenant, restructuring of the project may be required. This will be determined in parallel to MISE’s decision. After the mission, on May 16, 2025, MISE sent a letter to the WB informing about MISE’s decision to outsource the causeways to the private sector and OIIU tentatively updated the Project Management Plan attached to Annex 3. Actions: • MISE to review the delivery options for Causeway construction, and advise World Bank by May 16, 2025 (completed) • If MISE decides to outsource the causeway works, World Bank to review if the project would need to be restructured by May 27, 2025 • MISE, MICT, OIIU, WB and ADB to organize a meeting to discuss a new modality of causeways and its implication on individual positions under Component 3 by June 6, 2025 • OIIU and MISE to develop a detailed work plan as a result of the outsourcing decision by June 16, 2025 22. Closely integrating the causeway and maritime works appears to make good financial and technical sense at first examination and provides a better opportunity to complete all the works before project closure and achieve the PDO. MISE would remain involved in the design and supervision aspects alongside the Mentoring Firm, addressing the institutional strengthening priorities. World Bank advised OIIU to discuss a possible 5 Official Use Only variation with D&B Contractor to take on delivery of the causeway and consider that assessment when reviewing the delivery modality. Component 3: Enabling Environment Strengthening 23. Sub-Component 3.1 Capacity Building and Institutional Strengthening for MISE and MICT. MISE has 60 percent vacancy rate and is struggling to fill positions. This has inhibited its implementation capability. 11 new consultant positions will be financed by the project within MISE and MICT, but all must be dedicated to KOITIIP activities, noting also that WB-ADB projects cannot finance civil servant positions. Three of six new positions at MISE, and three of five new positions at MICT have been filled. All six positions at MISE and five positions at MICT are intended to be financed by KOITIIP for three years and two years respectively, after which they will be converted to permanent positions funded by MISE and MICT. 24. The three positions at MICT form part of the newly established Hydrographic Unit within the Marine Division. The project has also financed training for these three positions, leading to internationally recognized Category B qualifications in Hydrographic Surveying, and training on multibeam sonar technology and crowd-sourced bathymetry in Hawaii and Finland. It was agreed that positions at MISE should be reconsidered after a decision is made on converting the modality of delivery of the outer island causeways, from force account to outsourcing. The remaining two positions at MICT will have roles in maintaining the AtoNs, and should be recruited by August 30, 2025 to leverage training opportunities under the D&B contract. Actions: • MISE to re-consider their staffing and capacity building requirements to align with the modality selected for delivering the causeway by June 6, 2025 • MICT to recruit the remaining two positions, by August 30, 2025 25. MISE remains interested in using capacity building funds under KOITIIP to hire an International Director position in the Civil Engineering Department for a period of two years at an estimated cost of US$400,000. In order for the project to finance this position, (a) a proper justification for how this position will contribute to the project needs to be provided, (b) draft terms of reference and (c) adequate funds under the institutional strengthening component for MISE must be available. Actions: • OIIU to submit a summary table to ADB of institutional capacity target achieved at MICT and MISE to date, including estimated costs for future plans by June 30, 2025 26. A survey carried out on the outer islands demonstrated that there is support from the Outer Islands Councils and strong interest expressed by women, to participate in the proposed pilot of an all-female maintenance crew. Composition and operationalization of the all-female maintenance crew pilot would need to be finalized before the maritime works commence, in late 2025. A number of implementation challenges in engaging this crew must be addressed, including how to address health and safety, security, waste, working conditions, supervision, communications and fiduciary issues. It was agreed to review the pilot, to explore if there are other ways to provide employment opportunities to women on the outer islands, including ensuring women are employed in the outer island construction activities. This change will need to be considered as part of the potential restructuring referred to in paragraph 21. 27. This sub-component also supports the purchase of equipment. Agreement was previously reached to procure hydrographic survey equipment including a survey boat. The survey boat is estimated to cost US$ 200,000, and tenders close on May 19, 2025. Sub-Component 3.2 OIIU Operations 6 Official Use Only 28. OIIU Project Manager. The WB issued no objection to the Project Manager’s contract amendment on April 14, 2025. However, the mission learned that the contract amendment is pending MFED’s clearance. To ensure project management continues in a timely manner, the WB and ADB urged the GoK to finalize the PM’s contract amendment. Action: • MFED to countersign the contract amendment for the OIIU Project Manager by May 30, 2025 29. Accountant. After the first unsuccessful recruitment process, a dedicated accountant for KOITIIP was hired in February 2025. 30. A gender consultant (international) is being recruited to support OIIU with gender-related agenda of the project. 31. Sub-Component 3.3: Operational Support for the Kiribati Fiduciary Services Unit (KFSU ): Considering KFSU is providing support to all WB-financed projects and jointly with ADB-financed projects in Kiribati, KFSU matters are being discussed separately and are not further reviewed in this Aide Memoire. Component 4: Contingent Emergency Response Component (CERC). A CERC Operations Manual has been prepared and is available, should this component be activated. Procurement 32. Overall procurement progress remains Moderately Satisfactory. The approved procurement plan has 15 activities with a total estimated cost of US$1.78 million in the various stages of procurement. KFSU procurement officer is closely working with MISE, MICT and KFSU to complete the procurement process amid the challenges of limited market interest or completion of safeguards requirement in time. OIIU is closely monitoring the contract management of four large value contracts, and the contract implementation status is as follows: • Design and Build contract: 20 percent of the total contract value (US$4.67 million) paid to date • UKHO contract: 40 percent of the total contract value (US$0.45 million) paid to date • Hydrographic Survey and Mapping Consultant contract: 90 percent of the total contract value (US$4.7 million) paid to date • Mentoring Firm contract: 17 percent of the total contract value (US$0.313 million) paid to date 33. The Hydrographic Survey and Mapping Consultant contract will be completed on June 30, 2025, and OIIU will closely monitor to complete all the deliverables under this contract. Disbursement and Financial Management (FM) 34. By December 31, 2025, cumulative disbursement of the project is expected to reach about US$27.7 million in total. As of April 30, 2025, KOITIIP has disbursed a total of 27 percent (US$10.8 million equivalent of US$40 million) of IDA funds, and a total of 42 percent (US$5.1 million of US$12 million) of ADB funds. The OIIU clarified that FY25 disbursement is lower than projected because (i) the D&B contract was signed later than expected, and the Contractor requested a staggered payment schedule, reducing projected disbursement in Quarter 2 of 2025 by AUD3.6 million; and (ii) the disbursement plan did not account for the 1-2 month delay between milestone achievement, invoice submission, and payment dates. By December 31, 2025, the project is expected to disburse additional US$12.7 million total (IDA funds US$9.5 million and ADB funds US$3.1 million), based on the following project milestones: (i) Hydrographic survey: 100 percent completed; (ii) Mentoring Firm: detailed designs and E&S instruments are completed for causeways; (iii) D&B contract: detailed design completed; and (iv) institutional strengthening: remunerations for staff in OIIU, MISE, MICT and KFSU agreed. 35. Financial Management. The FM performance remains Moderately Satisfactory. The overall FM arrangements in place are adequate and reliable, providing timely information required to manage and monitor project 7 Official Use Only implementation, with only minor shortcomings. Financial reports are submitted on time and are considered acceptable. The FY25 project financial statements have been submitted to the auditor, and the audited financial statements (AFS) are due on June 30, 2025. Discussions are planned between the WB and ADB FM team to align the audit report format and requirements for the project. The IFR for the period ending March 31, 2025, is due by May 14, 2025, and expected to be submitted on time. The withdrawal applications are submitted regularly, and the designated account is active. The FY25 annual work plan and budget (AWPB) has been approved, and OIIU is monitoring implementation and expects to update it to reflect the implementation progress. The FY26 AWPB is due on November 1, 2025. Actions: • KFSU to submit IFR for period ending March 31, 2025, by May 14, 2025 (completed) • KFSU to submit the FY24 AFS by June 30, 2025 • WB and ADB FM team to discuss streamlining project audit report requirements by June 30, 2025 • OIIU to submit the FY26 AWPB for the project by November 1, 2025. 36. There are delays in retiring long overdue travel advances and mostly non-compliance with Project Operation Manual (POM) provision of expenditure documentation after 10 days of the activity completion. To address the challenges of obtaining adequate supporting documents, OIIU will explore project specific receipts for expenditures documentation without service provider receipts such as motorbikes. In addition, a transaction review noted payments made for non-eligible expenditures; OIIU is following up to deduct these in future payments. The OIIU will also strengthen the review process before preparing the payment request. Contract register well maintained but needs de-obligation of closed contracts showing a balance. Fixed asset register well maintained; last asset verification was conducted in December 2024. Action: • OIIU to send confirmation to the World Bank after deduction of the non-eligible expenditure by June 20, 2025 37. Transition to ADB SOE disbursement procedure. In 2024, project implementation was affected by delays in the timely replenishment of the ADB advance account. As a result, at the start of this mission, the OIIU and KFSU requested a reassessment of ADB’s requirement for full documentation for the advance account, which currently entails submitting all supporting documents with each withdrawal application. During the mission, ADB FM staff met with the KFSU accountant, the KOITIIP project accountant, and the KFSU manager to review the current processes for withdrawal applications, recordkeeping, and supporting documentation. The review noted that the KOITIIP project accountant was appointed in February 2025, is fully dedicated to the project, and brings the relevant qualifications and experience to the role. The KFSU accountant, who joined in March 2024, also attended ADB’s regional Disbursement and Financial Management workshop held in Nadi, Fiji, in March 2025. Financial records are maintained using QuickBooks, and the project uses an Excel-based fixed asset register. Segregation of duties is in place: the PMU project accountant prepares transactions, KFSU verifies them, and MFED provides final approvals. Prior to the appointment of the project accountant, these responsibilities were managed by the KFSU accountant across multiple projects. ADB assessed the current financial management arrangements as satisfactory. 38. The project consistently submitted its annual project financial statements (APFS) on time, with unqualified audit opinions and no management letter issues in prior years. The APFS for 2024 was submitted on March 14, 2025 and is on track to meet the June 30, 2025 deadline. All actions under the Financial Management Action Plan (FMAP) have been completed (Annex 5). At present, approximately 10 withdrawal applications remain pending. Of these, two have been approved—one recently and one earlier—with the most recent expected to be received in the advance account by early next week. The remaining applications are pending primarily due to incomplete supporting documentation. While two applications were processed to support continued project activities, ADB’s Controller’s Department (CTL) noted that they were approved despite the advance account 8 Official Use Only reconciliation not being fully balanced. To facilitate further processing, the project and PMU accountants have been requested to submit a current, balanced advance account reconciliation along with the required documentation for the pending applications. Financial controls have shown improvement, and once the reconciliation and documentation requirements are met, ADB will be in a position to consider transitioning the project to the (SOE) modality for the advance account. Actions: • KFSU to provide current, balanced advance account reconciliation along with required documentation for pending withdrawal applications by May 31, 2025 • ADB to confirm transition to SOE procedure by June 30, 2025 Environmental Safeguards 39. Environmental performance is Satisfactory, managed by the Environmental Officer at OIIU with support from KFSU E&S team, mentoring firm, and the D&B Contractor's safeguard team. No environmental or health and safety incidents have been reported. Screening reports for the maritime facilities are approved and the D&B contractor is preparing safeguards instruments. D&B Contractor has provided value engineering options for various maritime facilities. Based on the acceptance of the value engineering options, E&S screening reports needs to be updated to reflect the risks from the value engineering options. The D&B contractor is investigating potential land contamination from historic oil spills at Abaiang site, an alternate site to be identified if contamination is found. Safeguard instruments being prepared for the dredging at Beru, will identify and assess options and sites for disposal of dredged material following the principles of the mitigation hierarchy (avoid, minimize, or control impacts from dredged materials). 40. E&S Screening reports for causeway rehabilitation and aggregate sourcing are pending. The Ministry of Environment, Lands and Agricultural Development (MELAD) has approved the mining sites for sourcing local aggregates for causeway rehabilitation. The Mentoring firm should consider how to prioritize dredged material from Beru for aggregate use in causeway rehabilitation. For additional aggregate requirements, the mentoring firm will assess suitability of MELAD approved sites including refining availability estimates through hydrodynamic and coastal studies and VEP options to reduce the amount of dredging spoil. Prefabricated material will be used for maritime facilities, minimizing the aggregates requirement. The concept design for causeway rehabilitation works needs to integrate climate resilience. Actions: • OIIU to submit updated E&S screening forms for Causeway Rehabilitation and aggregate sourcing by May 16, 2025 (completed) • OIIU to submit the safeguard instruments for maritime facilities by July 15, 2025 Social Safeguards 41. Social safeguards performance is Satisfactory. The OIIU is undertaking ongoing assessment and due diligence of land access needs in preparation for works along with related consultations with landowners and Island Councils. Involuntary acquisition of land is being avoided, although some impacts on private property are expected. Temporary land requirements for campsites and laydown areas are being arranged through either use of land under existing government leases for new voluntary leases with landowners. OIIU has been undertaking careful due diligence for new land leases to identify landowners and any competing claimants and ensure consultations with interested parties. Social assessment will be undertaken for planned land-based navigational aids following finalization of designs to determine land requirements. During the mission concerns were raised about the structural integrity and safety of a building used as a house immediately adjacent to planned maritime facilities in Tabiteuea South. It was agreed that a structural assessment will be undertaken, and if deemed unsafe, the building will be acquired by the project and mitigation measures provided as per the project’s Resettlement Framework. An alternative location for maritime facilities in Beru will be required due 9 Official Use Only to unsuitability of the previously planned site. Updated screening reports will be required for the above- mentioned placement of navigational aids and potential impact on a house along with any changes in maritime facilities. Annex 6 presents details about Environmental and Social findings and requirements. Actions: • Submit MICT’s proposed recommendation and the structural assessment report for the building that is adjacent to the proposed maritime facility at Tabiteuea South by June 30, 2025 • OIIU to include land-based navigational aids (including site locations) and the potential impact on properties in screening reports for WB and ADB to review by June 30, 2025 42. The GRM is established and operating. OIIU participated in ADB hosted GRM capacity development training in Fiji in April 2025 which provided an opportunity to review and enhance GRM practices. Eight grievances have been received over the past year, mostly related to concerns of land ownership issues and potential environmental impacts related to planned works. Of these, seven have been satisfactorily resolved and one is still being addressed. GRM community awareness activities are ongoing with 88 delivered last year and 53 so far this year. Action: • OIIU to share the updated GRM records and the records of the consultation undertaken so far by May 16, 2025 43. Gender equality and gender action plan. Classified as “Effective Gender Mainstreaming� (EGM), project has 25 gender indicators 24 are included in the GAP, whereas the ADB’s Design and Monitoring Framework (DMF) includes five gender indicators. The overall GAP progress was noted as “Satisfactory�. Out of 25 gender indicators one is achieved, 19 (76 percent) are on-track, 5 (20 percent) are yet to be commenced. Project has surpassed the 40 percent target for women’s recruitment, out of 15 staff hired under the project seven (46.6 percent) are women – all of these are skilled positions. Mission noted significant progress against the following gender indicators, community consultations surpassed the 40 percent target of women’s participation with more than 70 percent women participants and more than 70 percent women indicated their interest to participate in the all-female maintenance team, it will be important to ensure an operational mechanism and funding of this pilot (refer also paragraph 26 and detailed GAP progress is in Annex 7). Action: OIIU to develop an action plan for achieving targets, including women’s participation during construction and establishment of women in infrastructure network by June 30, 2025 44. Implementation of the Gender-Based Violence (GBV) Framework is underway, with inductions on sexual exploitation, abuse and sexual harassment (SEA/SH) for Mentoring Firm, MISE, OIIU and D&B contract personnel now completed. The OIIU and Ministry of Women, Youth, Sports and Social Affairs (MWYSSA) will host an awareness session to refresh on the World Bank’s requirements for mitigating and responding to SEA/SH risks, as integrated into the Gender-Based Violence Framework. Action: OIIU to conduct awareness session with IA and MWYSSA to refresh on the World Bank requirement for mitigating and responding to SEA/SH risks July 2025 45. A Victim Support Fund for GBV survivors has been developed as part of the GBV Framework to provide funds to enable victims of Project-related GBV that are high risk or severe from outer islands that require access to services in Tarawa to travel and access services. The scope and operationalization of the Fund has been developed to be maintained by OIIU. Payments may include transport, accommodation and food, and childcare to a service provider who is supporting the victim. However, currently the IDA Financing Agreement does not have a provision to directly support this activity. Therefore, alternative options are being explored, including ADB’s other sources of funds. Currently OIIU is monitoring implementation of the GBV Framework, however this does not fully capture everything included in the GBV Framework in the PAD. 10 Official Use Only Administrative and Legal Issues 46. Status of Legal Covenants. All legal covenants have been met, excepting – preparing and adopting a MISE Implementation Manual. This relates to implementation of the causeways by MISE under force account. There is also a related disbursement condition that no withdrawal can be made under Category 2 unless until the MISE Implementation Manual is adopted. If the force account modality is changed to outsourcing, this covenant may become redundant and will need to be addressed in a potential restructuring (refer also paragraph 21). 47. As per the WB and ADB Financing Agreements and earlier discussions, the due dates for the Quarterly Annual Reports are to be submitted 45 days after the end of the quarter. The most recent quarterly report, which provides an update on activities during Quarter 4 of 2024 and Quarter 1 of 2025, was received in April 2025. 48. Compliance with ADB grant covenants—including safeguards monitoring and reporting, gender and development, procurement, counterpart support, and governance and anticorruption—was discussed based on achievements to date and is summarized in Annex 7. 49. Mentoring Firm submitted their monthly report for the period ending in March. OIIU will ensure that the reporting continues. Results Framework 50. During the mission, the OIIU presented the latest updates on the achievement of the PDO and intermediate indicators. While the MTR reaffirmed the suitability of the PDO indicators, the Mission advised to make some changes in the Results Framework, particularly to clarify the PDO indicator for boat crews that have up-to- date maps and understand aids to navigation and intermediate gender indicator as discussed during the last year missions, as part of the potential restructuring referred to in paragraphs 7 and 21. The latest Results Framework is in Annex 9. 51. Progress on the eight performance indicators in ADB’s Design and Monitoring Framework (DMF) was assessed. The project outcome, along with its three outputs, is expected to be achieved upon project completion in 2027. Detailed DMF progress is presented in Annex 10. Update on KOITIIP Phase II Progress 52. ADB and the government, through the Marine Division of MICT, have initiated preparatory work for the Climate-Adaptive Transport Infrastructure Investment Project (CATIIP, formerly known as the Kiribati Outer Islands Transport Infrastructure Investment Project Phase 2) 53. ADB has engaged GHD Australia (consultant) to assess Kiribati’s maritime transport needs and develop the Strategic Development Roadmap (the Roadmap). This Roadmap was developed over a two-year period, beginning with a sector baseline assessment in 2022. The Roadmap presents a plan to strengthen the maritime transport sector in alignment with the Kiribati 20-Year Vision (KV 2016–2036) and the Kiribati Development Plan (KDP 2020–2023). It includes recommended infrastructure investments across all outer islands to enhance maritime connectivity in terms of safety, accessibility, and efficiency. It also proposes capacity-building actions across the sector, guidance for investment prioritization, and a framework for periodic monitoring and reporting of performance and impacts. The Roadmap also outlines vital matters related to other key national agencies that manage and/or rely on the maritime transport sector, which are to be jointly addressed to ensure alignment with the core objectives established in the Roadmap. 54. The Cabinet approved the Roadmap on March 14, 2025, endorsing Option 2—to prioritize and implement interventions that significantly enhance safety and performance, applying these measures across multiple outer islands within the project budget, rather than conducting a feasibility study and implementing a full suite of interventions on five selected outer islands in the Gilbert Chain. 11 Official Use Only 55. A feasibility study and due diligence-including environmental and social safeguards, climate change assessment, gender analysis, and economic analysis- for CATIIP are currently being conducted by the consultant, with completion targeted for August 2026. 56. During ADB’s Country Programming Mission (March 17–21, 2025), CATIIP was identified as a national priority. While $5 million from the ADB’s country allocation has been set aside, an additional $20 million in cofinancing is required. GoK intends to seek co-financing from other development partners, including the World Bank. Next Steps 57. The next Mission is expected to occur in or before November 2025. In the interim, regular calls and video conferences will continue to be utilized as a means of staying on top of key issues. 12 Official Use Only Annex 1: Agreed Actions # ACTION Para. # Entity Date Status (as of May 9, 2025) Past Due actions: (Completed/in progress/revised date/delayed/on hold) Additional Financing and MTR 1. Finalize the Force Account Manual MISE/OIIU Nov 29, 2024 On Hold Component 1: Safe Inter-Island Navigation 2. Hydrographic Survey and Mapping Consultant to submit the OIIU Jan 31, 2025 complete bathymetric/LiDAR survey data for four Outer May 31, 2025 Completed Islands 3. Finalize the UKHO contract extension OIIU Nov 22, 2024 Completed 4. Confirm the release of complete bathymetric survey data for OIIU Mar 31, 2025 Completed four Outer Islands to Mentoring Firm and D&B Contractor 5. Production nautical charts for four Outer Islands (UKHO to OIIU Nov 29, 2025 MICT to Vessels Owners) Dec 31, 2025 New date 6. Identify plans for printing and distributing charts and training OIIU Dec 31, 2025 In Progress Component 2: Resilient Outer Island Access Infrastructure 7. Confirm the availability of necessary equipment to carry out MISE/OIIU Nov 29, 2024 On Hold Force Account works on the three Outer Islands 8. Submit report on alternative facility locations in Beru, OIIU/MISE Dec 13, 2024 Completed Tabiteuea South and Abaiang 9. Submit the Mentoring Firm’s monthly progress report OIIU 15th of every Completed for month March 2025 10. Provide an updated project plan and timeline OIIU Nov 22, 2024 Completed 11. Inform WB of final sequencing of works OIIU Dec 13, 2024 May 23, 2025 New Date Component 3: Strengthening the Enabling Environment 12. Submit assessment of staffing and funding needs to finish KFSU May 31, 2024 Delayed the on-going projects in its portfolio and new projects 13. Submit proposal outlining and justifying proposal to expand OIIU Nov 29, 2024 Completed OIIU office space 14. Submit proposal outlining and justifying proposal to expand MISE/OIIU Nov 29, 2024 Completed MISE office space 15. Submit proposals outlining capacity strengthening MICT & Dec 15, 2024 Completed MISE 16. If recruitment for key MISE positions fails, submit a draft MISE/OIIU Dec 15, 2024 Completed alternative plan to the Bank for its consideration Procurement 17. Update the STEP contract management module for D&B OIIU Nov 30, 2024 contract May 30, 2025 New date 18. Identify the force account procurement approach based on OIIU Nov 26, 2024 On Hold the review of the construction materials framework agreement from the KOIRAP project 19. Finalize the force account procurement approach after OIIU Dec 15, 2024 On Hold completing the technical requirements Financial Management 20. Submit the IFR for the period ending September 30, 2024 KFSU Nov 14, 2024 Completed 21. Submit draft FY25 Annual Work Plan & Budget with updated OIIU/KFSU Nov 1, 2024 Completed Gantt chart Nov 22, 2024 13 Official Use Only (new date) 22. ADB Controller to provide training to KFSU and OIIU ADB Nov 22-27, Completed Accountants 2024 23. Complete replenishment of the ADB Advance Account ADB Dec 31, 2024 Completed 24. a) Prioritize processing and payment for the replenishment ADB Nov 25, 2024 Completed WAs amounting to AUD106,241.26 25. b) Submit WA(s) for replenishment (balance of WB KFSU Nov 27, 2024 Completed reimbursement, amounting to AUD132,828.07 and Government reimbursement, amounting to AUD20,755.06) 26. c) Prioritize processing and payment for the replenishment ADB Dec 6, 2024 Completed WAs amounting to AUD153,583.13 Environment and Social 27. Send the aggregate compensation survey to WB OIIU April 30, 2024 Completed 28. Submit updated E&S Screening report for any changes of OIIU Dec 10, 2024 Completed works locations 29. Submit updated Stakeholder Engagement Plan to WB OIIU Nov 29, 2024 Completed 30. Submit Land Access Due Diligence Reports for the causeways OIIU/MISE Dec 20, 2024 to the Bank for clearance Jun 30, 2025 New date 31. Confirm inclusion of compensation for affected non-land OIIU Dec 20, 2024 assets (such as coconut trees) and the payments for Jun 30, 2025 New date temporary land use (such as for laydown areas) Gender 32. Deliver training in the Code of Conduct to D&B and OIIU June 28, 2024 Ongoing Mentoring Firm staff 33. Conduct awareness session with IA and Ministry of Women MISE Feb 2025 Ongoing to refresh on the WB requirement to mitigate and respond to risks of SEA/SH M&E and Reporting, Future Operations 34. Deliver training in the Code of Conduct to D&B and OIIU June 28, 2024 Ongoing Mentoring Firm staff Current actions (New actions) Component 1: Safe Inter-Island Navigation 1. • Confirm datasets validation for Tabiteuea 11 MICT/OIIU May 31, 2025 • Publication of all nautical charts for four Outer Islands MICT/OIIU Dec 31, 2025 (electronic and paper) Component 2: Resilient Outer Island Access Infrastructure 2. Inform of MISE’s decision about outsourcing rehabilitation 21 MISE May 16, 2025 Completed of the causeways to the WB • If MISE decides to outsource the causeway works, WB May 27, 2025 In progress World Bank to review any restructuring requirements. • Discuss implications of MISE’s decision on other WB, MISE Jun 6, 2025 activities and OIIU 3. Provide feedback on 50 percent design report and the 15- MICT/ May 30, 2025 value engineering proposal (VEP) to D&B Contractor, and 16 Mentoring keep WB and ADB informed Firm 4. Submit complete designs along with MICT’s comments to 15- MICT/OIIU Jul 15, 2025 the WB and ADB 16 14 Official Use Only 5. Advice on design vessel criteria, basin depth and options for 15- MICT/ May 30, 2025 the shelters, ramp and seawall at Beru, as part of 16 Mentoring considering the VEP from D&B Contractor firm 6. Review the causeway concept design options with the 19 MISE May 15, 2025 Mentoring Firm Component 3: Enabling Environment Strengthening 7. Submit a summary table to WB and ADB of institutional 23- OIIU, MICT Jun 30, 2025 capacity target achieved at MICT and MISE to date, 25 and MISE including estimated costs for future plans 8. • Prepare a revised staffing plan resulting from MISE’s 23- MISE Jun 6, 2025 decision on outsourcing 25 • Recruit the remaining two positions MICT Aug 30, 2025 9. Draft the documents to prepare for the all-female 26 MISE Jul 15, 2025 maintenance crew pilot 10. Countersign contract amendment for OIIU Project Manager 28 MFED May 30, 2025 Delayed Procurement 11. Develop a detailed work plan as a result of the outsourcing 21 OIIU, MISE Jun 16, 2025 decision Financial Management (FM) 12. • Submit IFR for the period ending March 31, 2025 353 KFSU May 14, 2025 Completed • Submit the FY24 AFS 5 Jun 30, 2025 353 5 13. Discuss on streamlining project audit report requirements 353 WB & ADB Jun 30, 2025 5 14. • Send confirmation to the WB after the deduction of the 363 OIIU non-eligible expenditure 6 • Submit the FY26 AWPB for the project OIIU Nov 1, 2025 36 15. Confirm ADB’s disbursement procedure switching to SOE 373 ADB, KFSU, June 30, 2025 7 OIIU 16. Provide current, balanced advance account reconciliation 373 KFSU May 31, 2025 along with required documentation for pending withdrawal 8 applications. Environmental and Social Safeguards 17. • Submit updated E&S screening forms for Causeway 404 MISE and May 16, 2025 Completed Rehabilitation and aggregate sourcing 0 OIIU • Submit the safeguard instruments for maritime MICT and Jul 15, 2025 facilities 404 OIIU 0 18. Submit MICT’s proposed recommendation and the 414 MICT Jun 30, 2025 structural assessment report for the building that is 1 adjacent to the proposed maritime facility at Tabiteuea South 19. Share the updated GRM records and the records of the 424 OIIU May 16, 2025 consultation undertaken so far. 2 20. Develop an action plan for achieving targets including 43 OIIU Jun 30, 2025 women’s participation in unskilled work during construction and establishment of women in infrastructure network 21. Conduct awareness session with IA and MWYSSA to refresh 434 OIIU Jul 2025 on the World Bank requirement for mitigating and 4 responding to SEA/SH risks 15 Official Use Only 16 Official Use Only Annex 2: Persons Met and Mission Members Persons Met Name Title Organization Maaman Ioakim Deputy Secretary MFED Bereka Iotebwa Deputy Secretary MISE Aoniba Riaree Deputy Secretary MICT Meere Teemon Mayor Tab South Akura Tibwae Mayor Nonouti Tetabo Nakara Mayor Beru Tawaia Ioakim Mayor Abaiang Tabwaua Taoaba Clerk Abaiang Tokoruru Kemate Clerk Nonouti Kamaki Tibwere Acting Clerk Tab South Tiibeti Clerk Beru Eritaia Tauro MICT Ueakeia Tofinga Data Analyst MICT Tebetiraoi Inatoa Survey Technician MICT Jimmy Nuake Director General of Engineering Services MISE Panapa Pita Principal Civil Engineer/Head of Civil Engineering Division MISE Taatu Teraira Safeguards Officer MISE Paul Takabiri Project Manager, KOITIIP OIIU Pita Tiare Deputy Project Manager, KOITIIP OIIU James Teimone Teaero Social Safeguards Specialist OIIU Madsen Kanono Environmental Safeguard Specialist OIIU Bonoue Kaiteie M&E Specialist OIIU Melinda Christopher Gender & Gender-Based Violence Specialist OIIU Joselyne Mote Administrative Officer OIIU Tuao Kabure Accountant OIIU Taare Aukitino KFSU Manager KFSU Teuea Tebau Procurement Officer KFSU Tatyana Nychperovych Procurement Specialist KFSU Mike Trebitsch Safeguards Specialist KFSU Bweneata Kaoti Environment Safeguard Officer KFSU Mareta Inatoa Finance Management Officer KFSU 17 Official Use Only Mission Members Name Title Specialization Unit World Bank (WB) Anita Shrestha Team Leader (Senior Transport Specialist) Transport IEAT1 Co-Team Leader (Senior Transport Fiona Collin Transport IEAT1 Specialist) Myint Kyaw Co-Team Leader Operations Officer EACMM Mareta Tauaa Kaiteie Liaison Officer Tarawa Office EACKI Terengabuti Teebwa Karotu Team Assistant Tarawa Office EACNF Evaron Doris Masih Operations Officer Operations EACFF Andre Pierre Marie Merrien Senior Marine Consultant Maritime and Port IEAT1 Ian Greenwood Senior Engineer Consultant Transport IEAT1 Sandeep Kota Senior Environmental Specialist Environmental SEAE1 Craig Clark Senior Social Development Specialist Social GSU02 Tessa Walsh Gender-Based Violence Consultant GBV Myat Kay Khine Procurement Specialist Procurement EEAR2 Financial Ciliaka Gitau Financial Management Consultant EEAG2 Management Financial Ilaisa Gabrieli Rokotuisisa Financial Management Consultant Management Steven Yuan ET Consultant Transport IEAT1 Andrey Orlando Asian Transport Team Assistant Transport EAPCF Asian Development Bank (ADB) Cha-Sang Shim Team Leader & Sr. Transport Specialist Transport ADB Khurram Ghafoor Transport Specialist Transport ADB Sereseini D. Vakawaletabua Safeguards Officer Safeguards ADB Samuela Tawakedrau Environmental Safeguards Officer Safeguards ADB Uzma Altaf Gender Specialist Gender ADB Financial Benito Veramu Financial Management Officer ADB Management Marco Paulo Rodriquez Associate Financial Control Analyst Controller ADB Cheska Angelie Llamas Associate Project Analyst Transport ADB 18 Official Use Only Annex 3: Updated Project Management Plan CY 2027 (project closes on 31- CY 2025 CY 2026 Dec-27) Activity Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Component 1 Hydrographic charts Component 2 AtoNs and Maritime Works Design and E&S instruments ready Construction Causeways* Design and E&S instruments ready Cabinet approval and restructuring of the project Contract award and prioritization of causeways Construction Component 3 Capacity building * Tentative timeline for rehabilitation of causeways is based on MISE's proposal to outsource the works to the private sector Source: the D&B Contractor, the Mentoring Firm, the Implementing Entities 19 Official Use Only Annex 4: Technical Information Causeway Rehabilitation Concept Design 1. The Concept Design Report received from the Mentoring dated May 5, 2025, raised several technical questions that were discussed with OIIU and GoK during the mission. 2. Design waves: Local waves in the causeway vicinities have not yet been assessed, and the Mentoring firm intends to engage for that task the same sub-contractor as engaged by the D&B contractor, who have already established offshore wave climates for the four outer islands. 3. Sea level rise: The designer should ensure to use the correct basis for future sea levels, which may be underestimated or not considered. Consider use of, for instance, the NASA IPCCC-AR6 Sea Level Projection tool. 4. Bathymetry: The designer to consider the latest bathymetries as prepared by Hydrographic Survey and Mapping Consultant /UKHO under KOITIIP, all reduced to lowest astronomical tides. 5. Revetment bags: Since the preferred technical solution for causeway side walls consists of sand-cement grout- bags, the designer is encouraged to investigate bag solutions providing more durable fabrics, with improved resistance to sun and sea water. 6. Sand and aggregate sourcing: Based on reports dated March 2024, the sand and aggregates needed for the causeway rehabilitation are currently proposed to be sourced from the islands' foreshores. This will require liaising with the Fisheries & Marine Resources in Tarawa, as well as undertaking coastal processes desktop studies, site by site. For Beru causeways, the mission has advised to consider also possible use of seabed materials that will be dredged at Tebikeriki. Design Phase - D&B contract for Maritime Facilities and AtoNs 7. General remark on 50 percent design stage drawings. All drawing elevations should preferably be reduced to the local chart datum (i.e. approximately the lowest astronomical tide, LAT), for consistency with navigational charts. 8. All-tide access in Beru. During discussions with MICT, it was noted that MICT expect all-tide access to the landing facility at Beru outer island, which has implications for the treatment needed at the loading dock. The selection of infrastructure development in the project outer islands is based on a cost-effective approach; vessels typically arrive at the project Outer Islands once every three months. At Beru, the existing foundation of the ramp sits above the dredging depth needed for all-tide access. The Mission has recommended to OIIU and MICT, that the D&B Contractor continue to liaise with the shipping companies serving Beru, to select the most appropriate design vessels, but also consider how all-tide access is being provided, not just at Beru, but at all project islands. 9. Beru Ramp. The location and current design stage layout is shown in Figure 1 below. Based on the project investigations, the existing channel at Beru has been excavated in coral rock and is almost "dry" under spring low tides, meaning that channel bottom elevation is close to 0 LAT. Besides, it appears that the ro-ro ramp toe is founded on the seabed at a similar elevation i.e. approximately 0 LAT. The dredging project was aimed at allowing the largest inter-island vessels (up to about 60 m LOA) to reach the ro-ro ramp under all tide conditions, with dredge level of -3.5 m LAT. However, in order to really allow the large vessels berth on the ramp at low tide, the ramp toe itself would need to also be deepened to the design dredge level (currently proposed as - 20 Official Use Only 3.5 m LAT). This would require building a new retaining structure at the ramp toe and partly along the seawall, essentially a 3.5m high wall built 3.5m below the lowest tide, ie entirely under the water line. This would be a complex task with a number of constructability issues and risks. Figure 1 – Beru Island map and dredging project layout2 10. Dredging in Beru. With reference to Figure 1 and based on information from the D&B contractor including the 50% concept stage design and the VEP, there is opportunity to re-assess the geometry and depth of the dredging for the access channel and turning basin at Beru. As described above, the current design geometry is based on design vessels of 60m in length and vessel draft of 2.5m, with dredging to -3.5m LAT. This would require significant dredging spoil quantities to be disposed of, along with deepening of the toe of the ramp, to avoid undermining of the boat ramp itself, which is founded at a higher level than the proposed dredging level. As part of its VEP D&B Contractor is requesting MICT to consider a smaller design vessel, as the large vessels calling at Beru do not berth on the ramp (see Text box below). They anchor off and use smaller workboats instead. However, other passenger vessels also need to access the ramp, and their berthing needs also need to be considered, along with the needs of passengers disembarking to address safety and mobility of vulnerable groups such as women, children, and disabled. Using a smaller design vessel, such as the 34m-long cargo barge (LOA 34 m, Beam 10 m, Max draught 1.2 m, Built 2022) recently acquired by the Kiribati National Shipping Line (KNSL) to serve such landing sites, would result in reduced dredge depth and reduced dredge spoil. 2 Source: Design & Build Contract Specification 21 Official Use Only Figure 2 – KNSL cargo barge 11. The mission suggests that the design team reviews the design re-considering the idea of accommodating the large vessels (with draughts above 2 m) on the ro-ro ramp at low tide, partly because of the significant work that this would require at the toe of the ramp and seawall, and partly because the shipping lines operating the largest vessels have already made arrangements to avoid this. However, the D&B Contractor should be encouraged to interview the other shipping lines calling at Beru, apart from KNSL and Lui Shipping, to understand which smaller inter-island vessels call at Tebikeriki, including passenger boats, and how they operate there, and whether they berth on the ro-ro ramp or not. In doing so, it may turn out that an intermediate dredge level (e.g. 1.5 m below LAT instead of 3.5 m below LAT) would be adequate and would allow the smaller vessels berth on the ramp under "almost all tide conditions" (this would require deepening the ramp toe, but to a lesser depth). This shipping and usage analysis would provide a comprehensive list of vessels likely to berth on the ramp, thus informing the detailed design for the future channel and turning basin. To reiterate, the aim of this re-assessment would be to reduce the depth of the dredging in order to minimize the amount of dredging spoil and the depth to which the toe of the ramp and seawall would need to deepened to, but still allowing for access by all vessels using the ramp in almost all tide conditions (as discussed with MICT). 22 Official Use Only Figure 3 – Other findings from discussions with shipping companies Other findings originating from discussions held on May 8, 2025 with two shipping companies serving Beru and other outer islands from Tarawa: • KNSL, based in Betio, explained that its large vessels do call at Tebikeriki but do not reach the ramp. Captains prefer to stay outside the reef, drop the anchor and proceed to cargo operations with their own workboats (up to 8.5 m long and 3 m wide), notably because they don't want to beach/ground on a rocky seabed to avoid damaging the vessel propellers/rudders. KNSL is satisfied with such conditions but would like to have a wider channel allowing safer navigation conditions for the workboats (a 2-way channel) and also improved AtoNs marking the channel sides (at the moment, the only aids are the two shore-side leading beacons). In addition, KNSL acquired in 2022 a landing craft tank (LCT) cargo barge (LOA=34 m / B=10m / Max. draught=1.2 m), towed by a modern tug- boat; the barge is fitted with a bow ramp and designed for berthing in shallow areas. In Tebikeriki, this barge berths straight on the ro-ro ramp. The barge does not need to turn, she can move back and forth between the anchorage and the ramp, driven by 2 workboats. • Lui Shipping Company, based in Betio. Lui Shipping owns the largest vessel serving Beru (LOA=68 m / Draught=3.25 m). The vessel calls at Tebikeriki but never reaches the ro-ro ramp and does not intend to, even under improved nautical approaches. She remains anchored outside the reef and uses her own workboat to do the cargo operations (workboat LOA=7 m, B=3 m). 12. Disposal of the dredge spoil. This is being assessed against E&S criteria. Current options under consideration include on-island disposal (requiring agreement with landowners, which has not been finalized), however, the use of the dredged material in the causeways should also be assessed. This would essentially creates a technical link between the construction of the maritime facilities and the causeways, so both the D&B contractor and the Mentoring firm assisting MISE to design the causeway rehabilitation, should consider how the use of dredge material could be optimized across both sub-projects. 23 Official Use Only 13. AtoNs. The future Beru channel, similar to channels at all the islands, must provide safe navigation conditions for all vessels expected to use it, including the new KNSL cargo barge and the various workboats already used there and passenger/recreation boats. This will require marking the channel sides with lit fixed beacons. 14. AtoNs marking the channel entrance are mandatory, but have not yet been finalized into the design by the D&B Contractor. The VEP is suggesting additional AtoNs, and this needs to be assessed by OIIU and MICT, with assistance and recommendations from the Mentoring/supervision firm. 15. The proposed lagoon AtoN structure is intended to be laid on a levelled seabed, with suitable recess in sea bottom. This levelling operation and recess preparation will be particularly tricky, the risk being to end up with a leaning beacon. Therefore, special attention will be required while preparing the related work methodology. The beacon base will be protected against corrosion by several sacrificial anodes. This will require special maintenance operations. It is recommended to ensure that divers will be available locally to control the anodes and replace them when needed. Spare anodes to be provided with the D&B contract. 16. Abaiang jetty. It is recommended to ensure that jetty will be adequate for accommodating passenger vessels serving Abaiang from Betio (speed boats mainly, two types). The jetty should not be designed solely for workboats. To this end, passenger vessels should be represented on the project layout, cross-section and long- section. 17. The jetty top should be suitable for the elderly, children and disabled persons too. If stairs are needed, they should be doubled by ramps. The jetty should be equipped with suitable fenders and bollards. 24 Official Use Only Annex 5: Financial Management Action Plan Progress Report (ADB) Pre-Mitigated Update/Post Weakness Area Risk Issue Mitigation Action Due date Status/Action Taken Mitigated Risk Classification Classification Country PFM SUBSTANTIAL The absence of an asset The government has initiated On-going MFED has completed MODERATE systems management policy will the formulation documenting the policy undermine of an assets management policy and is waiting funding from the sustainability of which will the MFAT for infrastructure include an inventory of state implementation. However, investments. assets with the project contract and details, assigned caretaker fixed asset register are agency who will well-maintained and be responsible for requesting updated regularly, per budgets for ADB’s May 2025 mission. repair and maintenance. Internal Audit SUBSTANTIAL MFED will need to provide MFED currently provides On-going MFED will provide internal SUBSTANTIAL increased support to these audit support. ADB has support to undertake internal ministries through an occasional conducted several audit visit of an trainings: (i) Virtual Loan function in MISE and MICTTD. internal auditor but only to Disbursement Training for check on Kiribati and Tuvalu (23–24 revenues. MFED, MISE, and March 2022), (ii) Training in MICTTD should Tanoa International Hotel, agree on a periodic and more Fiji (5–9 June 2023) on frequent disbursement procedures, schedule of visit from the financial management, and internal auditor to client portal for conduct checks of internal disbursement, and (iii) control. Regional Disbursement and Financial Management Workshop in Nadi, Fiji (17- 21 March 2025) Staffing and SUBSTANTIAL MFED will need to provide MFED will define a more On-going KFSU submits interim SUBSTANTIAL Capacity increased stringent oversight financial reports to support oversight for the efficient of the KFSU which may include oversight functions. The functioning of the KFSU. monthly KFSU manager continues to meetings to resolve issues closely liaise with MFED. MFED is more actively involved in all KFSU functions compared to the 2021 – 2022 period. 25 Official Use Only Country PFM MODERATE Capacity and institution building Consulting contracts will include On-going Contract for the mentoring MODERATE systems components of project indicators firm responsible for management should be carefully that not only refer to the capacity building includes designed. It appears that number of staff provisions for production mentoring teams do not work trained without assessment of of comprehensive guides, with how much workshops, and hands-on government agencies for proper knowledge were truly training on project knowledge transfer assimilated. implementation, including on preparing detailed designs, implementing engineering investigations, etc. The firm will also participate in workplan workshops and submit reports detailing work programs comparing scheduled versus actual progress, review planning, and achievements summaries. The performance of other international consultants is reviewed annually, and the terms of reference are adjusted to ensure that the technical needs of the local staff align with the work of the international consultants Disbursement and SUBSTANTIAL Incomplete supporting KFSU to provide a current, 31 May 2025 In progress – KFSU has SUBSTANTIAL Funds Flow documentation and unbalanced balanced advance account begun compiling updated advance account reconciliation reconciliation along with reconciliation and is are delaying the processing of complete supporting working with the PMU to pending withdrawal applications. documentation for all pending gather missing documents. withdrawal applications. Disbursement MODERATE Conditions for transitioning to ADB to review submission from 30 June 2025 Pending – Will be assessed MODERATE Modality and the Statement of Expenditure KFSU and confirm readiness to upon receipt of the Internal Controls (SOE) procedure have not yet transition to SOE procedure for reconciliation and been met. advance account. documentation by 31 May. 26 Official Use Only Annex 6: Environmental and Social 1. OIIU is staffed with one environmental safeguard specialist, one social safeguard specialist and with support from KFSU E&S team, mentoring firm, and the Design Build (D&B) Contractor's safeguard team is managing the E&S performance of the project. 2. No environmental or health and safety incidents have been reported during the reporting period. OIIU confirmed that the vessels under procurement for works associated with KOITIIP will be approved by the national safety regulator and equipped with the necessary safety and communication equipment to be provided by MICT. 3. D&B contractor has completed the screening reports for the maritime facilities and is progressing on the safeguard instrument preparation. Key risks identified include (a) potential land contamination from historical oil spill at Abaiang site, which is being investigated through sub surface intrusive sampling (b) health and safety risks from poor structural integrity of residential structure adjacent to planned maritime facilities in Tabiteuea South. An alternative site will have to be identified if contamination is found. Structural stability for the residential structure will be assessed and, if deemed unsafe, the building will be acquired by the project and mitigation measures provided as per the project’s Resettlement Framework. Freshwater requirement for maritime works will be supplied through a Desal plant that will be installed by DB contractor. Licensing requirement for the Desal plant to be confirmed by OIIU. OIIU and the DB contractor confirmed use of pre-fabricated material for maritime facilities, minimizing the aggregates requirement. 4. D&B Contractor submitted value engineering options for various maritime facilities: (a) change from pre-fab to bespoke structure for passenger shelter (at Abaiang) and Multipurpose shelter, AtoN workshop (at Nonouti and Tab South) (b) reduced dredging requirement at Beru (c) replacement of ramp and the sea wall at Beru. 5. Based on the acceptance of value engineering options, E&S Screening for maritime facilities needs to be updated to reflect any change in aggregate requirements; additional E&S risks to coastal processes, sediment dispersion, turbidity and water pollution, impacts to benthic habitats etc. 6. Updated E&S Screening reports for causeway rehabilitation and aggregate sourcing are pending. Aggregates for the causeway rehabilitation will be sourced locally. MELAD has approved various mining sites for aggregate sourcing for the causeway rehabilitation works as follows: (a) Abaiang = 7 mining sites (b) Beru = 9 mining sites (c) Nonouti: 10 mining sites (d) Tab-South: 8 mining sites. In addition to the approving of mining sites, MELAD has also provided estimates of aggregates available at the mining sites. 7. Mentoring firm will prioritize the dredged materials at Beru for use as aggregate in the causeway rehabilitation. For additional aggregate requirement, mentoring firm will assess suitability of MELAD approved sites including a detailed assessment of maximum volume that may be extracted from each site without threatening the ability of local waves to replenish the foreshore considering hydrodynamics (local waves and sea water levels), as well as coastal studies. The coastal analyses should also consider sand and aggregate sourcing for other projects in addition to KOITIIP. 8. D&B Contractor is preparing the safeguard instruments including Dredging Management Plan (DMP) for the dredging at Beru. OIIU considered pond area (Fig 1) as the designated disposal site for the dredged material. However, there is lack of agreement from the landowner to use the site for disposal of dredging material, thereby requiring the potential need for alternative disposal site options. It was advised that DMP to be prepared by the DB contractor should include identifying and assessing options and sites for disposal of dredged material following the principles of mitigation hierarchy (avoid, minimize, or control impacts from dredged materials). 27 Official Use Only Figure 1 – Pond area considered for disposal of Figure 2 – Poor structural integrity of building adjacent dredged material to the Tab south site 9. Draft Concept designs for the causeway rehabilitation works were reviewed and the mentoring firm was advised to revise the report considering the climate change impacts and site specific environmental and social risks. 10. Further, OIIU and mentoring firm were advised to update screening reports for the causeway rehabilitation works by considering site specific E&S risks relevant for the concept design while determining the applicable safeguard instruments. 11. Social assessment will be undertaken for planned land-based navigational aids following finalization of designs to determine land requirements. Updated screening reports will be required for the above-mentioned placement of navigational aids and potential impact on the house along with any changes in sites of the maritime facilities. 28 Official Use Only Annex 7: Gender Action Plan Monitoring Report (ADB) Project Title: Outer Islands Transport Infrastructure Investment Project Date of GAP Update: Jan-April 2025 Country: Kiribati Approval Number: Grant 0713-KIR Gender Mainstreaming Category: Effective Gender Mainstreaming (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges Output 2: Resilient outer island access infrastructure ship-to-shore transfer and land transport improved. 2a. 30 new ATONs installed (2019 baseline: 0). 2b. 1 jetty, 4 boat ramps, and 2 multipurpose maritime and maintenance facilities/workshops all designed with EWCD friendly features (2019 baseline: 0). 1. DMF-gender Target 2.1. 1 jetty, 4 boat On-Track (to be achieved) ramps and 2 shelters, and 2 multipurpose maritime facilities designed with features Community consultations and women’s focus group discussions were conducted in 2021. that are friendly to older people, women, Following is the breakdown of the participants: children, and people with disability (2020 baseline: 0) Total number of participants: Island Total number Sex M F Abaiang 16 0 16 Tab North 12 0 12 Nonouti 25 0 25 Beru 20 0 20 Following design features were proposed: Facilities Proposed features Cause Ways Pedestrian foot path and sea wall Passenger shelters Separate locked toilet for women and people with disability, light, availability of wheel chair, ramp, handrails and signage for people with disability, fence, child friendly, market place for women and access to clean water. 29 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges Ramp Should have steps, non slippery and safe for children Proposed design features were discussed with the design and build contractor during the reporting quarter. 2.Target 2.2 Women employed by the On-Track (to be achieved) The number of project in skilled and unskilled positions women employed (Target: 40% women). The project has currently employed a total of 15 skilled positions and none for unskilled by the Project. The positions for this quarter. The positions are for the OIIU team and Implementing Agencies positions of project staff. women may vary since some of the Target: 40% women staff have resigned Archived: 46.6% of women while some positions are newly Total No# of skilled OIIU Implementing Agencies created. positions MICT MISE Male 8 5 1 2 Female 7 4 2 1 Achieved target 46.6% 44% 66% 50% (%) Women Positions Organization Positions OIIU • Monitoring and Evaluation Officer • Administration Officer • Gender and GBV Specialist MISE • Safeguard Officer MICT • Surveyor Technician Officer • Spatial Data Analyst During the MTR (May 2025), it was discussed that ensuring women’s participation in construction work will be challenging. 30 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges 3. Target 2.3 At least 1 community On-Track Any awareness consultation in each project site organized to conducted on the raise awareness of women working in non- Project has conducted a series of consultations and community awareness sessions focusing on Island should traditional sectors conducted by the promoting women's participation in non-traditional sectors. Community consultations extend beyond contractor (Target: 50% women). conducted by the Hydrographic Survey team has achieved 73% women as reported in Q1 of project sites to the 2023. wider community so that everyone, Last quarter, this target was discussed with the Design and Build Contractor to ensure that they not just direct are aware of the Contractors requirement under the Gener Action Plan where they need to beneficiaries, is conduct one community consultation to raise awareness of women working in the non- informed and traditional sector. The Contractor agrees to conduct one community consultation once they are supportive. This is on site. why the consultation covers During the reporting quarter, community awareness sessions were successfully conducted on all villages on the Beru and Abaiang by the Outer Island Infrastructure Unit (OIIU), recognizing that the project Island and not just operates in a sector traditionally dominated by men, the consultations emphasized that the Project sites. benefits of the project are inclusive and not limited to men. Women were actively encouraged to consider and apply for any job roles they find suitable, reinforcing the project’s commitment to gender inclusivity and equal opportunities. Additionally, vital information on the Gender- Based Violence (GBV) Grievance Redress Mechanism (GRM) and the Code of Conduct was shared with participants, ensuring that women are informed about the safeguards in place to protect their rights and safety in the workplace. Women were 49% of the total participants, breakdown of the participants by sex is presented below: Community Consultations Island M F Total % Abaiang 138 122 260 47% Beru 237 194 431 45% Tab South 36 10 46 22% Tab North 33 11 44 25% Nonouti 107 183 290 63% Total 551 520 1071 49% Women Focus Group Discussions 31 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges Island F Abaiang 16 Beru 20 Tab South 12 Nonouti 25 Total 83 Source: Project gender consultant presentation – ADB MTR May 07 2025 A noticeable rise in the interest was observed among women in both islands of Abaiang and Beru. Local leaders and community members voiced their support for women’s participation and appreciate the projects objective of inclusive and equal opportunities. Some participants shared past experiences with other projects where they are being underpaid and required to work beyond expected hours without compensation. These accounts highlight the These accounts highlight the ongoing need for stronger enforcement of labor rights and grievance redress mechanisms. 4. Activity 2.1 Equal pay for work of equal On-Track (to be monitored during construction) value for men and women working on the project guaranteed by the contractor. Equal pay for work of equal value for men and women has been verified in Section 114 of the Employment and Industrial Relations Code 2015 where an employer shall pay men and women employees equal remuneration for work of equal value. To ensure that the contractors are aware of this activity, the meeting was held with the design and build contractor to discuss how this activity can be implemented and monitored. The contractor agrees to insert clause or statement in the employer’s contract which guarantees the equal pay for equal value of work for men and women. 5. Activity 2.2 Facilities at and around the On-Track (to be monitored) This is likely to be project site meet needs of men and women achieved in the Q3 working on construction, such as separate, Currently, the construction work has not started and the preparation plan on the working sites of 2025 when well-lit and lockable and easily accessible is yet to be confirmed once the contractor is engaged. construction commences. 32 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges toilets and locker rooms (Target: all project sites). On 17 October 2024, the KOITIIP team held a meeting with the Design and Build Contractor to discuss the importance of integrating gender considerations into the planning and design of workers’ camps and construction sites. During this discussion, the project team emphasized the need for safe and appropriate facilities that cater to both men and women working on-site. As a result, the Contractor acknowledged the requirement and committed to incorporating gender-inclusive provisions in their worksite planning. This includes ensuring access to separate and secure sanitation facilities, adequate lighting, and private spaces for women. 6. Activity 2.3 KOITIIP GBV requirements On-Track (to be monitored) (code of conduct, signage on GBV, consultations, GRM for receiving, registering, The Design and Build team has arrived in-country last quarter to begin implementation of referring, and reporting complaints) Component Two of the KOITIIP project. The current team composition includes a total of nine supported by the contractor. personnel — six males and three females. As part of the project’s Gender-Based Violence (GBV) and Sexual Exploitation, Abuse, and Harassment (SEAH) safeguards, all team members have signed the SEAH Code of Conduct. By doing so, they have committed to upholding professional and ethical behavior, including: - Prohibiting all forms of SEAH toward fellow team members and members of the outer island communities. - Respecting local customs and values, particularly in relation to gender norms and social interaction. - Supporting a safe and inclusive work environment in accordance with KOITIIP’s gender action plan and contractor requirements. - Below is an update of Project Contractors already signing the Code of Conduct. Total No# of Total No# of Target staff signed CoC (100%) Hydrographic Survey and Mapping 20 19 95% Consultant Mentoring Firm 1 1 100% Design and Build Contractor 9 8 95% 7. Target 2.4 All (100%) infrastructure / On-Track (to be monitored) facilities built by the project respond to the needs of women, children, the elderly and 33 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges disabled: (i) well-lit; (ii) sheltered from rain Construction has not yet commenced, these inclusive features have been integrated shared and sun; (iii) priority seating; (iv) handrails with the contractor. and safety barriers; and (v) flush toilet (Nonouti) (Target: all project infrastructure The Design and Build Contractor has been briefed and is committed to implementing these facilities). requirements once construction begins. In the previous quarter, ARUP shared the 30% reference design documents with KOITIIP for review. This review confirmed the inclusion of key inclusive features. 8. Target 2.5 Survey/FGD held to collect and On-Track The challenge is document women’s views on level of getting the women improvement of trade opportunities as result The survey has been conducted on Abaiang, Beru and Tab North last quarter while Nonouti was in the focus group. of the project interventions. 70% of women conducted this quarter. The main objective is to set up baseline data which will be used to When conducting surveyed/in FGDs report some level of monitor the impact of the project on the level of trade. Participants in the survey were selected this survey, most improvement of trade opportunities. by the Island Council to ensure that all businesses are reflected in the survey and are currently of the participants operating. Data was collected through group discussions and individual questionnaires. Not all were males businesses are invited but at least 4 to 5 are selected as samples of the type of business they although women represent. were invited. This can be due to The type of business identified is categorized into four areas which are locally produced business being products, Mauri Wear, Retail Shops, and Home-based business. The types of questions set for registered and individual attempts are mainly on the type of business they operate, how they operate their owned by men. sales, average income per month, and the operation period. As for the group discussion, they answered questions on the challenges they faced and their strategies to solve them. Post-project survey will be conducted to assess women’s perception about the level of improvement of trade opportunities. 9. Target – Action 2.6 Advocacy with local On-Track (to be monitored) councils to allocate a place for women to informally market their produce in shelters No advocacy was conducted this quarter to promote women marketing their products in built by the project (Target: at least one shelters built by the project. However, this was carried out in Q4 of 2022, and discussions on advocacy meeting per year organized). proposed market locations—such as passenger shelters, contractors’ camps, and working sites—have already been introduced. During the meeting last week, it was agreed by the Island Council to allocate a place for women to market their produce and this will be shared by the rest of the full council members for their support. 10. Target Action 2.7 Case study / Not yet implemented qualitative research on women’s transport 34 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges habits for trade conducted (Target: 1 case study prepared) Output 3: Capacity of MICTTD and MISE strengthened to ensure sustainable investments and operations. 3a. MISE staff received training from mentoring firm(s) (at least 20% women). 3b. Relevant training delivered to staff from implementing agencies including all eligible women staff. 3c. Pilot one all women routine maintenance team for causeways/maritime facilities) 3d. Training on handling cases of GBV to all project staff from implementing agencies and GBV framework prepared. 11. DMF-gender Target 3.1 (3a) At least 5 On-Track (to be achieved) Yet to commence mentored MISE staff members (at least 20% women) demonstrated improved skills in MISE has developed pre-assessment questionnaires aimed at evaluating the existing skill levels Disaster Resilience designing and maintaining disaster-resilient and technical knowledge of participants in designing disaster-resilient infrastructure. The – Ministry infrastructure built under the project (2020 baseline information will be collected in the next quarter and will be used to measure progress Infrastructure baseline: 0) and assess the effectiveness of the capacity-building initiative delivered by the Mentoring Firm. (MISE) and MICT This results-based approach ensures that training outcomes are monitored and aligned with the 12. (3b) At least 10 trained staff members project’s objective of enhancing local expertise in climate- and disaster-resilient infrastructure from the MICTTD and the MISE (at least 30% design. women) demonstrated increased knowledge in resilient maritime infrastructure and causeways (2020 baseline: 0) 13. Target 3.3 4 trainings on handling cases On-Track (to be achieved) of GBV to all project staff from implementing agencies (2020 baseline: 0). No training was conducted this quarter however, one training has been conducted to project staff from Implementing agencies as reported in Q2, 2023. Another refresher training will be conducted next quarter. Date Topic of training Venue No. of participants M F 8/6 Participants were trained in a project GBV MISE 6 6 Manual which clearly details how GBV cases are handled by the project. With this Manual, participants were introduced to the types of GBV cases that the project mainly focus on Sexual Exploitation, abuse, and 35 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges harassment and the guiding principles to ensure that cases are treated using the survivor-centered and human right approach. It is one of the requirements for them to report the case to the GRM Operator or SafeNet and not to solve it by themselves. Information of the GBV GRM was also another topic covered during this training to enable them to provide information to the survivor on how the project received, handled, and resolved cases. 14. DMF-gender Target 3.4 A GBV On Track framework developed and systems in place to address GBV among workers and the The GBV Framework has been developed as a guideline to prevent and address GBV among communities (signage, code of conduct and a workers and Communities. GRM for receiving, registering, referring and The GBV GRM to register, refer and report complaints has been implemented in the Outer Island reporting complaints) implemented by OIIU. for project workers and communities to report incidents of violence experienced by the Project. They are now aware of the reporting mechanism. The Code of Conduct has been developed mainly to prevent SEAH from happening. Training has been conducted to OIIU members, Hydrographic Contractor and Implementing Ministries to ensure that they are aware of its terms and condition before signing it. Below is an update of Project Workers and Implementing Ministries already signing the Code of Conduct. Last quarter, two new staff from OIIU, three from MISE has gone through the GBV GRM and Code of Conduct Induction training that was conducted at MISE Boardroom and has signed their Code of Conduct. No reports have been made to the GBV GRM this quarter. 15. Activity 3.1 A support fund for GBV On-Track survivors maintained by OIIU. - The Victim Support Fund has been finalized, with a detail outline of its purpose and procedures in the GBV Framework. 36 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges - The procedures for allocating and disbursing funds are still under review. Once the Victim Support Fund manual is finalized and approved, the fund will be allocated and disbursed as per the agreed guidelines. - The purpose of the Victim Support Fund is to provide immediate, survivor-centered assistance to individuals affected by gender-based violence related to the project. The fund aims to cover essential services such as emergency medical care, psychosocial support, transportation to services, temporary shelter, and other urgent needs. It is designed to ensure that survivors can access necessary support quickly and effectively, ensuring their safety and well-being. 16. Target 3.5 GBV referral mechanism On-Track (to be achieved) (SafeNet) operational in 100% project sites implemented (baseline 2019: 25%). The preparations for the upcoming training session have been completed. The next step is to finalize transportation arrangements for the team to visit the project Island and deliver the training on-site. The training will be facilitated by SafeNet MWYSSA, a responsible organization to deliver the session. The target participants for this training will be all SafeNet members located in the Outer Island. The session is designed to enhance their capacity in handling and referring survivors of GBV in a timely manner. Once transportation is secured, the training will proceed as scheduled. 17. Activity 3.2 Training courses provided to On-Track all Assistant Social Welfare Officers (MWYSSA) in project sites on KOITIIP GBV The refresher training has been conducted to SafeNet members on Abaiang, Tab South, Beru Framework and GRM (Target: at least 2 and Nonouti. Participants include Police Officers, Medical Nurses, and Assistant Social Welfare training courses). Officers and their relievers. The training covers the contents of the GBV Framework focusing on how the Project will respond and prevent SEAH from happening. The training also focused on the GBV GRM to ensure that all SafeNet members are well-trained on how cases are received, handled, and solved Island Total number of Total number of Achieved Target Training Date Participants women (30% women) participants Beru 10 5 50% 5 Sep 2023 Abaiang 16 8 50% 12 Dec 2023 Tab South 11 3 27% 8 Mar, 2023 Nonouti 29 7 24% 27th Feb 2024 37 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges The completion of these training courses has ensured that all ASWOs in project sites are equipped with the necessary knowledge and tools to prevent, respond to, and refer GBV cases effectively within the KOITIIP framework 18. Activity 3.3 MWYSSA representative is Achieved included in KOITIIP steering committee. MWYSSA representative is a member of the KOITIIP steering committee 19. Target 3.6 Project staff and contractors On-Track (to be achieved) (male and female) trained on KOITIIP gender related instruments and GOK GBV No training was conducted this quarter however this has been conducted in Q2 of the 2023 commitments. (Target: 100% of project report. Participants were trained on the Gender-related instruments and GOK GBV staff). Commitment. Participants were trained on the Project GBV Framework, GRM, Code of Conduct, and the GOK GBV Commitment. During this training, facilitators from the Ministry of Labour were invited to deliver a section of the Employment and Industrial Relations Code 2015 (EIRC) related to Sexual Harassment in the workplace. The Office of the Attorney General was also invited to look at other types of sexual abuses that are not covered by the EIRC such as indecent assault and indecent behaviors. Definitions of all sorts of sexual violence are all quoted from the Kiribati laws with penalties associated with them to ensure that participants understand that such acts can be criminalized under the Kiribati Laws. Venue and Date Total participants Number of Women (Project staff only) participants MISE Boardroom 12 6 Target: 100% Project staff Achieved:30% 20. DMF-gender Target 3.7. An all-female On-Track (to be achieved) Project will explore routine maintenance team piloted for mechanisms to causeway/maritime facilities in Abaiang Community-based assessments were conducted across all three islands. During consultation ensure (Target: 1). meetings held at village maneaba (community meeting houses), women and young females sustainability of were invited to participate. The purpose was to evaluate their management and technical skills the maintenance in relation to maintaining maritime infrastructure built under KOITIIP, such as causeways and team. passenger shelters. Each participant received structured questionnaires based on: - Management Skills (e.g., record-keeping, leadership, planning) 38 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges - Technical Skills related to: Causeway maintenance, General maritime facility upkeep - Practical tasks such as plumbing, mechanical repair, and pothole patching To ensure inclusivity and clarity, facilitators explained each question verbally before participants responded individually. Survey Participation: Island Date Total Participant Show interest Nonouti 149 135 Beru 18th – 26 Feb, 2025 92 56 Abaiang 11-30 March, 2025 167 118 Across the three islands, more than 70% women expressed strong enthusiasm and interest in taking on the maintenance role. From the data collected, they also demonstrated foundational understanding of the work required, however majority lack experience in technical areas. This high level of interest highlights the strong potential for forming women-led maintenance teams in all three islands, positioning the initiative as a meaningful step toward women’s economic empowerment in maritime infrastructure maintenance. 21. Activity 3.4 Community consultation Not yet implemented. It will be implemented once the pilot maintenance team starts. conducted to evaluate the effectiveness of all-female routine maintenance team. 22. Activity 3.5 Collection and analysis of sex On-Track disaggregated data, monitoring and reporting of the GAP and GBV Framework Sex-desegregated data is regularly collected and produced as monitoring and reporting of the (Target: Quarterly reporting). GAP and GBV Framework. 23. Activity 3.6 By 2025, capacity exists Yet to be commenced. Need training on within MISE and MICTTD to effectively mainstreaming mainstream gender equality in infrastructure Gender in (baseline 2019: 0). Capacity will be measured infrastructure to by pre-post questionnaires, case studies and implement this other evaluation methodologies. activity. A Training Needs Analysis needs to be conducted to 39 Official Use Only (GAP Activities, Indicators and Targets, Issues and Timeframe and Responsibility) Progress Challenges understand the level of training that is required. 24. Activity 3.7 Women in Infrastructure Yet to be commenced. Network in MISE established to promote the importance women working in non- traditional fields, build professional capacity and support the operationalization of GOK gender equality and safe workplace commitments. 25. Activity 3.8 Gender focal points MISE and Yet to be achieved. MICTTD formally appointed/nominated. Comments/Remarks: Out of 25 indicators (DMF target, one achieved, 19 (76 percent) are on-track, 5 (20 percent) are yet to be commenced, Prepared by: Melinda Christopher, Gender and GBV Specialist, KOITIIP 40 Official Use Only Annex 8: Compliance with Grant Covenants (ADB) Schedule Para No. Description Remarks/Issues Type 3 1 --Implementation Arrangements. The Recipient and the Project Executing Being complied with Others Agency shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Recipient and ADB. In the event of any discrepancy between the PAM and this Grant Agreement, the provisions of this Grant Agreement shall prevail. 3 2 --Procurement. The Recipient and the Project Executing Agency shall ensure Being complied with Others that: (a) the procurement of Goods, Works and Services is carried out in accordance with the Procurement Framework; (b) Goods, Works and Services shall be procured based on the detailed set forth in the Procurement Plan, including the procurement and selection methods, the type of bidding documents, and review requirements. The Recipient may modify the detailed arrangements set forth in the Procurement Plan only with the prior agreement of ADB, and such modifications must be set out in updates to the Procurement Plan; and (c) (i) all Goods and Works procured and Services obtained (including all computer hardware, software and systems, whether separately procured or incorporated within other goods and services procured) do not violate or infringe any industrial property or intellectual property right or claim of any third party; and (ii) all contracts for the procurement of Goods, Works and Services contain appropriate representations, warranties and, if appropriate, indemnities from the contractor, supplier, consultant or service provider with respect to the matters referred to in this subparagraph. 3 3 --Procurement. The Recipient will not award any Works contract which Being complied with Others involves environmental impacts until: (a) the Recipient’s Ministry of Environment, Lands and Agricultural Development has granted final approval of the respective ESIA; and (b) the Recipient has incorporated the relevant provisions from the respective ESMP into the Works contract. 3 4 --Procurement. The Recipient will not award any Works contract which Being complied with Others involves involuntary resettlement impacts, until the Recipient has prepared and submitted to ADB the final Resettlement Plan for the Project site based 41 Official Use Only Schedule Para No. Description Remarks/Issues Type on the Project's detailed design and obtained ADB's clearance of such Resettlement Plan. 3 5 --Environment. The Recipient shall ensure that the preparation, design, Being complied with Safeguards construction, implementation, operation and decommissioning of the Project and all Project facilities comply with (a) all applicable laws and regulations of the Recipient relating to environment, health, and safety; (b) the Environmental Safeguards; (c) the ESMF; (d) all measures and requirements set forth in the respective ESIA and ESMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report. 3 6 --Land Acquisition and Involuntary Resettlement. The Recipient shall ensure Being complied with Safeguards that all land and all rights-of-way required for the Project are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Recipient relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; (c) the Resettlement Framework; and (d) all measures and requirements set forth in the respective Resettlement Plan, and any corrective or preventative actions set forth in a Safeguards Monitoring Report. 3 7 --Land Acquisition and Involuntary Resettlement. Without limiting the Being complied with Safeguards application of the Involuntary Resettlement Safeguards, the Resettlement Framework or the respective Resettlement Plan, the Recipient shall ensure that no physical or economic displacement takes place in connection with the Project until: (a) compensation and other entitlements have been provided to affected people in accordance with the Resettlement Framework and the respective Resettlement Plan; and (b) a comprehensive income and livelihood restoration program has been established in accordance with the Resettlement Framework and the respective Resettlement Plan. 3 8 --Indigenous Peoples. The Recipient shall ensure that the Project does not Being complied with Safeguards impact indigenous peoples within the meaning of the SPS. If due to unforeseen circumstances, the Project impacts indigenous peoples, the Recipient shall take all steps necessary or desirable to ensure that the Project complies with all applicable laws and regulations of the Recipient and with the SPS. 42 Official Use Only Schedule Para No. Description Remarks/Issues Type 3 9 --Human and Financial Resources to Implement Safeguards Requirements. Being complied with Safeguards The Recipient shall make available necessary budgetary and human resources to fully implement each ESMP, the Resettlement Framework and each Resettlement Plan. 3 10 --Safeguards – Related Provisions in Bidding Documents and Works Contracts. Being complied with Safeguards The Recipient shall ensure that all bidding documents and contracts for Works contain provisions that require contractors to: (a) comply with the measures relevant to the contractor set forth in the respective ESIA. ESMP, Resettlement Framework and Resettlement Plan (to the extent they concern impacts on affected people during construction), and any corrective or preventative actions set forth in a Safeguards Monitoring Report; (b) make available a budget for all such environmental and social measures; (c) provide the Recipient with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the respective ESIA, ESMP, Resettlement Framework or Resettlement Plan; (d) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and (e) reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction. 3 11 --Safeguards Monitoring and Reporting. Being complied with Safeguards The Recipient shall do the following: (a) submit semi-annual Safeguards Monitoring Reports to ADB and disclose relevant information from such reports to affected persons promptly upon submission; (b) if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in any ESIA, EMP, Resettlement Framework or Resettlement Plan, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and (c) report any actual or potential breach of compliance with the measures 43 Official Use Only Schedule Para No. Description Remarks/Issues Type and requirements set forth in any ESMP, Resettlement Framework or Resettlement Plan promptly after becoming aware of the breach. 3 12 --Prohibited List of Investments. The Recipient shall ensure that no proceeds Being complied with Others of the Grant are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS. 3 13 --Labor Standards, Health and Safety. The Recipient shall ensure that the core Being complied with Others labor standards and the Recipient’s applicable laws and regulations are complied with during Project implementation. The Recipient shall include specific provisions in the bidding documents and contracts financed by ADB under the Project requiring that the contractors, among other things: (a) comply with the Recipient’s applicable labor law and regulations and incorporate applicable workplace occupational safety norms; (b) do not use child labor; (c) do not discriminate workers in respect of employment and occupation; (d) do not use forced labor; (e) allow freedom of association and effectively recognize the right to collective bargaining ; and (f) disseminate, or engage appropriate service providers to disseminate, information on the risks of sexually transmitted diseases, including HIV/AIDS, to the employees of contractors engaged under the Project and to members of the local communities surrounding the Project area, particularly women. 3 14 --Labor Standards, Health and Safety. The Recipient shall strictly monitor Being complied with Others compliance with the requirements set forth in paragraph 13 above and provide ADB with regular reports. 3 15 --Gender and Development. The Recipient shall ensure that (a) the GAP is Being complied with Safeguards implemented in accordance with its terms; (b) the bidding documents and contracts include relevant provisions for contractors to comply with the measures set forth in the GAP; (c) adequate resources are allocated for implementation of the GAP; and (d) progress on implementation of the GAP, including progress toward achieving key gender outcome and output targets, are regularly monitored and reported to ADB. 3 16 --Counterpart Support. The Recipient shall make available through budgetary Being complied with Others allocations or other means, all counterpart funds required for the timely and effective implementation of the Project including any funds required for: (a) compensation costs for safeguard impacts; (b) mitigation of unforeseen environmental and social impacts; and (c) any additional costs arising from design changes, financing gaps, or construction or installation costs. 44 Official Use Only Schedule Para No. Description Remarks/Issues Type 3 17 --Counterpart Support. The Recipient shall ensure the allocation and Being complied with Others availability of a sufficient budget or subsidy, on an annual basis, for the operations and maintenance of Project facilities and ensure that the Project facilities are included in an asset management information system established to account for the assets of the Recipient 3 18 --Governance and Anticorruption. The Recipient, the Project Executing Being complied with Others Agency, and the implementing agencies Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Project; and (b) cooperate with any such investigation and extend all necessary assistance for satisfactory completion of such investigation. 3 19 --Governance and Anticorruption. The Recipient, the Project Executing Agency Being complied with Others and the implementing agencies shall ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of the executing and implementing agencies and all contractors, suppliers, consultants, and other service providers as they relate to the Project. 45 Official Use Only Annex 9: Results Framework (WB) Project Development Objective Indicators Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Population Number of 0.00 0.00 0.00 11,600 served with people improved access Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 to social and economic Maritime and causeway works services have not yet commenced Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Percentage 0.00 0.00 0.00 100.00 Boat crews that have up-to-date Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 maps and understand aids to Training for boat crews will navigations begin after the new charts are published by December 2025. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Number 0.00 0.00 0.00 24.00 Villages served by Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 causeways rehabilitated with The updated count is Causeway works are climate resilience for 22 villages expected to commence measures by 2026 and be completed by December 2027. 46 Official Use Only Intermediate Indicators Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Nautical charts on maritime Number 0.00 0.00 1.00 4.00 access routes to the project Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 islands prepared and available to public All nautical charts to be published electronically and on paper format by UKHO by December 2025. Currently, only electronic charts for Beru are available. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target New navigation aids (AtoN) Number 0.00 0.00 0.00 30.0 installed and operational, and existing ones replaced Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 Installation of AtoNs is expected to commence in Q3 2025. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Jetties constructed and Number 0.00 0.00 0.00 1.00 operational Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 Construction of jetty will begin after the designs are finalized in mid-2025 and be completed by December 2026. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Multipurpose maritime Number 0.00 0.00 0.00 3.00 facilities constructed or rehabilitated, and in use, with Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 climate resilience measures Construction of the facilities will begin after designs are finalized in mid-2025 and be completed by December 2026. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Causeways rehabilitated with Number 0.00 0.00 0.00 8.00 climate resilience measures Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 Causeway works are expected to commence by 2026 and be completed by December 2027. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target People that benefit from X Number 0.00 0.00 0.00 11,600 improved access to Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 47 Official Use Only sustainable transport The entire island populations are considered to benefit from the maritime facilities and causeways. infrastructure and services Update: Since the people living in the project’s Outer Islands will use the climate -resilient infrastructure being built at least once a year, the entire population of those Outer Islands can be counted as direct beneficiaries. Therefore, this indicator will be marked as the WBG's Corporate Results Indicator (CRI) for Transport 'Millions of people who benefit from improved access to sustainable transport infrastructure and services' through Omnibus process. Disaggregation of data to be confirmed by the OIIU. Since infrastructure being built under this project is also climate resilient, this indicator will also be reported as a new WBG Climate CRI – ‘Millions of people with enhanced resilience to climate risks’. Number of beneficiaries who Subtype Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 are female Breakdown 0.00 0.00 0.00 0.00 5,956 Number of Beneficiaries who Subtype Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 are youth Breakdown 0.00 0.00 0.00 0.00 5,892 Number of beneficiaries who Subtype Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 are disabled Breakdown 0.00 0.00 0.00 0.00 308 Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target MISE staff who received Number 0.00 0.00 0.00 5.00 training from mentoring firm Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 Mentoring concludes when design & construction is completed. The mentoring firm has started design work. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Road works designs done by Yes/No No No No No MISE with climate resilient features Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 MISE, with the Mentoring Firm’s support submitted draft concept causeway designs after the completion of the causeway condition assessment in early 2025. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Relevant training delivered to Number 0.00 2.00 10.00 10.00 implementing agencies project staff including all Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 eligible women Target achieved. 10 staff trained, of which 3 were women (2 in MICT and 1 in MISE). 48 Official Use Only Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Pilot one all-female routine Yes/No No No No No maintenance team for causeway/maritime facilities Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 A survey that was undertaken to ascertain the interest, skills and experience of females has been completed. There was a high level of interest in participating in the pilots on all 4 islands. A simple contract document and specification will be drafted by MISE with support from the WB. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Transactions completed by Percentage 0.00 80% 75% 75% KFSU specialists within service standards outlined in KFSU Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 Operations Manual 100% for IFRs and AFS since 2023 80% of all payments completed from KFSU within 3 working days Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Grievances resolved within Percentage 0.00 100% 100% 75% the stipulated service standards Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 All three grievances, which were received in 2023, have been resolved. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Ministry staff & consultants Number 0.00 400.00 400.00 80.00 with improved knowledge as result of capacity building Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 delivered by KFSU compared to pre-training baseline Over 400 ministry officials and PMU consultants have benefitted from KFSU trainings/workshops designed to improve skills/knowledge on WB procurement, FM and safeguards. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Improved perception of Percentage 0.00 no data available 80 service quality: Ministry project Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 managers/coordinators who rate KFSU service 6 out of 10 project managers rated KFSU as satisfactory while the rest 4 out of 10 rated KFSU as very good. quality/advice received as ‘satisfactory’ or above 49 Official Use Only Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Adoption of CERC manual Yes/No No Yes Yes Yes Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 The CERC manual has been completed. Indicator Name Core Unit Baseline Actual (Previous) Actual (Current) End Target Grievance registered related Percentage 0.00 100.00% 100% 75.00% to delivery of project benefits that are addressed Date February 2020 October 30, 2024 May 9, 2025 December 31, 2027 One applicable grievance arose and was addressed in 2023. 50 Official Use Only Annex 10: Design and Monitoring Framework (ADB) Impact the Project is Aligned with Access to economic and social infrastructure in the outer islands improved (Kiribati 20-Year Vision, 2016–2036)a Performance Indicators with Data Sources and Results Chain Targets and Baselines Reporting Mechanisms Status/Issues Outcome By 2027: Safety and resilience of 24-hour safe and resilient maritime MICTTD annual reports Will be achieved by 2027 transport connectivity in navigation in 4 outer islands guided and project completion Abaiang, Beru, Nonouti, by nautical charts and maritime report and Tabiteuea South infrastructure provided (2020 improved baseline: 0) Outputs By 2026: 1. Safety of interisland 1. 4 nautical charts on access 1. MICTTD annual 1.Nautical charts for Beru and navigation improved routes to the project islands reports Abaiang have been prepared, prepared (2020 baseline: 0) and the rest will be completed by December 2025. 2. Resilience of outer island access infrastructure improved 2a. 30 new ATONs installed (2020 2a–b. MICTTD annual 2a. Forty-five (45) new ATONs baseline: 0) reports have been identified and are scheduled for installation by December 2026. 2b. The design-build 2b. 1 jetty, 4 boat ramps and 2 contractor is currently shelters, and 2 multipurpose designing maritime facilities maritime facilities designed with that are friendly to older features that are friendly to older people, women, children, and people, women, children, and people with disability, and it is people with disability (2020 scheduled to be constructed baseline: 0)b by December 2026. 3. Enabling environment strengthened 3a. At least 5 mentored MISE staff 3a–e. Project progress 3a. Being achieved and will be members (at least 20% women) reports achieved by 2027. demonstrated improved skills in designing and maintaining disaster- resilient infrastructure built under the project (2020 baseline: 0) 3b. At least 10 trained staff 3b. Being achieved and will be members from the MICTTD and the achieved by 2027. MISE (at least 30% women) demonstrated increased knowledge 51 Official Use Only Performance Indicators with Data Sources and Results Chain Targets and Baselines Reporting Mechanisms Status/Issues in resilient maritime infrastructure and causeways (2020 baseline: 0) 3c. Baseline surveys to assess 3c. 1 all-women routine interest and current technical maintenance team for causeways skill levels of 408 women and maritime facilities pilot-testedc participants across 3 outer (2020 baseline: NA) islands have been conducted, and will be achieved by the end of December 2027 3d. GBV framework prepared and 4 3d. Will be achieved by 2027 training sessions on handling GBV cases provided to all project staff members from the MISE and the MICTTD (2020 baseline: NA; 0) 3e. Will be identified by 3e. At least 2 priority maritime August 2026 through a projects identified (2020 baseline: feasibility study for the 0) Climate-Adaptive Transport Infrastructure Investment Project. Key Activities with Milestones 1. Safety of interisland navigation improved 1.1 Specification for hydrographic surveys prepared (June 2020) 1.2 Consultants recruited (December 2020) 1.3 Hydrographic surveys completed (December 2022) 2. Resilience of outer island access infrastructure improved 2.1 Bidding documents for maritime infrastructure prepared (June 2022) 2.2 Procurement of works completed (December 2022) 2.3 Maritime infrastructure constructed and/or rehabilitated (June 2026) 3. Enabling environment strengthened 3.1 Consultants recruited (March 2021) 3.2 Training and capacity building delivered and maritime sector assessments and studies prepared (June 2026) Project Management Activities Establish the OIIU and select a project manager by Q4 2020 Inputs ADB: $10.01 million (ADF); $1.99 million (ADF DRR financing mechanism) World Bank: $30.0 million (IDA grant) 52 Official Use Only Assumptions for Partner Financing Outputs not administered by ADB that are necessary to reach the outcome include the following: Safety of interisland navigation improved: hydrographic surveys (World Bank) Resilient outer island access infrastructure improved: improvement of ship navigation safety, rehabilitation of island access infrastructure, and rehabilitation of causeways (World Bank) Enabling environment strengthened: institutional strengthening, operational support for the OIIU and the KFSU (World Bank) ADB = Asian Development Bank; ADF = Asian Development Fund; ATON = aid to navigation; DRR = disaster risk reduction; GBV = gender-based violence; IDA = International Development Association; KFSU = Kiribati Fiduciary Services Unit; MICTTD = Ministry of Information, Communication, Transport and Tourism Development; MISE = Ministry of Infrastructure and Sustainable Energy; NA = not applicable; OIIU = outer islands implementation unit; Q = quarter. a Government of Kiribati. 2015. Kiribati 20-Year Vision, 2016–2036. Tarawa. b Includes lighting, shelter, priority seating, handrails and safety barriers, and separate flush toilets. c The number of women will depend on the type of works. Maintenance teams typically have about five people. Source: Asian Development Bank. 53 Official Use Only