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Interisland Shipping Support Project :  Vanuatu :Go to Project Summary

Interisland Shipping Support Project :  Vanuatu

Timetable  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Loan Name Interisland Shipping Support Project
Country Vanuatu
Loan Number 2820
Project Number 42392- 01
Source of Funding/Amount[Approved]
Technical Assistance Special Fund US$500,000
A.T.F. - New Zealand T.A. Grant US$1.00  million
New Zealand Grant US$12.60  million
Asian Development Fund US$10.82  million
Thematic Classification Economic growth
Environmental Sustainability
Private Sector Development
Sector/Subsector Transport and ICT / Water Transport
Gender Mainstreaming Category Effective gender mainstreaming
Description The aim of project is to improve the efficiency and effectiveness of interisland shipping services through provision of an integrated package of assistance. It comprises two major components:

(a) infrastructure investments in the capital of Port Vila and five outer islands, and

(b) establishment of a shipping support scheme to catalyze the provision of services to remote noncommercial destinations using an output-based aid approach.

The Project is complemented by associated TA to improve sector governance through institutional strengthening and legal and regulatory reforms, and by project management services.
Project Outcome
Outcome Progress Toward Outcome
Private sector operators provide interisland shipping services that are reliable, safe, and adequately frequent The project implementation is assessed at 25% complete. Additional financing of $18.48 million and parallel grant from NZMFAT of NZ$6 million was approved by the Board on 27 February 2015. The required additional financing results from (i) a change in technical and design specifications and an increase in the bill of quantities (BOQ); (ii) the governments request for a change in project scope for (a) reconstruction of Simonsen wharf instead of rehabilitation, and (b) dredging of a channel in South Paray bay for asier access to the Port Vila domestic wharf; and (iii) additional consulting services in connection with the foregoing including an IEE for (a) Simonsen wharf and (b) proposed dredged channel in South Paray Bay.
Implementation Progress
Outputs Status of Implementation Progress (Outputs, Activities and Issues)
Improved maritime infrastructure is provided in the capital and rural areas

Shipping support and coordination schemes have been established
Project management services ensure efficient and effective project implementation
The Vanuatu Maritime Safety Administration is established
Pre-construction activities of civil works are underway, with detailed engineering designs for the wharves complete. An invitation for bids was issued on 3 December 2014 and closed on 11 February 2015. Bids are currently being evaluated.

The SSS has been established. Shipping services routes have been designed and a contract has been awarded, with voyages to the southern group and northern group of islands having commenced. Contract for two more routes are in the process of being awarded.
Geographical Location Vanuatu
Safeguard Categories Safeguard Categories explained (Launches new browser window)
  Environment B
  Resettlement C
  Indigenous People C
Summary of Environmental and Social Aspects
Environmental Aspects Environment, involuntary resettlement, and indigenous peoples were all assessed in accordance with ADB's Safeguard Policy Statement (2009). Civil works as proposed will not result in any significant adverse environmental impact, and all potential environmental impacts can be adequately mitigated and monitored. An initial environmental examination (IEE) incorporating an environmental management and monitoring plan has been prepared for each of the sites. The Governments assessment procedure is compatible with the environmental impact assessment requirements of ADB.
Involuntary Resettlement The Project is not expected to require involuntary resettlement or involuntary land acquisition, as nearly all works will be undertaken at the same locations as existing facilities, or for new works in sites where the minimal land required has been documented to be owned by the Government. It is possible that minor voluntary land acquisition may be required at one or two sites. If land acquisition is required, the Government will inform ADB and prepare a resettlement plan according to relevant laws and regulations. A Resettlement Framework has been prepared.
Indigenous People The Project is not expected to have a negative impact on indigenous peoples that would trigger ADBs Policy on Indigenous Peoples (1998).
Stakeholder Communication, Participation and Consultation
During Project Design Stakeholders in project implementation include MFEM; MIPU and its departments of maritime affairs, ports and harbors, and public works; other government departments concerned with rural development; transport services users, including passengers and freight shippers; the private sector; the New Zealand Ministry of Foreign Affairs and Trade (NZMFAT); ADB; and other development partners.

The MFEM established Vanuatu Project Management Unit (VPMU) as a dedicated unit for managing significant projects, responsible for day-to-day project implementation. The government formed a project steering committee to oversee and monitor project implementation, including policy guidance and coordination, technical design and tendering, progress reports, and audited accounts.

A partner harmonization framework will guide coordination between ADB and NZMFAT.
Responsible ADB Officer Rishi Ram Adhar
Responsible ADB Department Pacific Department
Responsible ADB Division Transport, Energy and Natural Resources Division, PARD
Concept Clearance 30 Mar 2010
Fact-finding 19 Apr 2010 to 28 Apr 2010
Board Approval 30 Nov 2011
Loan No. Approval Signing Effectivity Original Revised Actual
2820-VAN 30 Nov 11 - - 31 Dec 16 - -

Financing Plan Top Loan Utilization
  TOTAL ( Amount in US$ million)
Project Cost 10.82
ADB 10.82
Counterpart 0.00
Cofinancing 0.00
Date ADB OTHERS Net Percentage
Cumulative Contract Awards
31 Aug 2015 0.145 2%
Cumulative Disbursements
31 Aug 2015 0.090 1%
Top Status of Covenants
Category Sector Social Financial Economic Others Safe
Rating Satisfactory Satisfactory
2008 Asian Development Bank

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