Cook Islands: Infrastructure Development Project

Sovereign Project | 40287-012

Summary

This Project Preparatory Technical Assistance (PPTA) is to assist in developing a detailed feasibility study report in accordance with ADB's requirements and international standards for the Cook Island's Infrastructure Development Project (IDP). The PPTA is to also undertake safeguard studies for environmental, social and resettlement considerations; recommend appropriate project financing modalities and identify the required technical assistance to improve the management and efficiency of infrastructure service delivery. The outputs of the PPTA will support preparation of the Report and Recommendation for the President (RRP) for an ensuing loan.

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Project Name Infrastructure Development Project
Project Number 40287-012
Country Cook Islands
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7022-COO: Infrastructure Development Project
Japan Special Fund US$ 500,000.00
ATF - New Zealand TA Grant US$ 200,000.00
TA 7022-COO: Infrastructure Development Project (supplementary)
Technical Assistance Special Fund US$ 125,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Energy - Energy sector development and institutional reform
Transport - Transport policies and institutional development
Water and other urban infrastructure and services - Urban policy, institutional and capacity development
Gender Equity and Mainstreaming No gender elements
Description

This Project Preparatory Technical Assistance (PPTA) is to assist in developing a detailed feasibility study report in accordance with ADB's requirements and international standards for the Cook Island's Infrastructure Development Project (IDP). The PPTA is to also undertake safeguard studies for environmental, social and resettlement considerations; recommend appropriate project financing modalities and identify the required technical assistance to improve the management and efficiency of infrastructure service delivery. The outputs of the PPTA will support preparation of the Report and Recommendation for the President (RRP) for an ensuing loan.

The Government of Cook Islands is assigning a high priority to identifying priority (i) infrastructure rehabilitation and upgrading requirements, ranging from the power to transport and water and sanitation sectors both on the main island and in the outer-islands and (ii) policy and institutional reform recommendations to improve delivery of infrastructure and utility services. Priority projects will include infrastructure upgrading programs that are capable of stimulating growth and diversifying and building a broader base for economic growth and employment.

Project Rationale and Linkage to Country/Regional Strategy

The Cook Islands comprises 15 isolated atolls with a total land area of 244 square kilometers (km2) and dispersed over an exclusive economic zone of 1.8 million km2 of the Pacific Ocean. The country suffers from extreme climatic events such as tropical cyclones, periods of intense rainfall or drought, and high wind and air temperatures. Climate scenarios, based upon global circulation models predict that extreme events will increase in frequency and intensity have a significant impact upon people and physical infrastructure. There is a need to promote climate proofing measures to reduce the impact of severe events upon infrastructure and the consequent economic impact.

Approximately 70% of the total population of 20,000 lives on Rarotonga, the largest island (67 km2). Cook Island residents have a free access to New Zealand and Australian employment markets. Already more than three times as many Cook Islanders reside overseas as in the Cook Islands, many relying on the social welfare provided by the Government of New Zealand. Migration of the resident population has been a function of economic opportunities in the country. Inadequate infrastructure has been identified as a binding constraint to further economic development, particularly for generating private sector driven growth and employment with a broader objective to retain Cook Islanders in the country

Against an average growth of 3.8% in real GDP for the five years up to the fiscal year (FY) 2006 with FY2006 having seen a growth of only 1.9%, the Government acknowledges that infrastructure constraints limit growth and economic development, particularly in the tourism sector, the primary source of employment. To sustain and grow, this industry requires efficient, reliable, and safe public utilities and transportation facilities. The existing infrastructure requires improvement to achieve these objectives.

The ADB?s Country Strategy and Program Update (CSPU) 2004-2006 included a power generation project in 2005 and a water and sanitation management project in 2006 with the respective project preparatory technical assistance work in the preceding years. However, following the disastrous series of cyclones in 2005, ADB approved Loan 2174-COO: Cyclone Emergency Assistance Project to minimize the effects of damage on economic growth and to help the Government sustain its prudent fiscal management by lowering the cost of the reconstruction. This loan was accompanied by TA4605-COO: Strengthening Disaster Management and Mitigation that prepared a robust emergency response regime and a Masterplan for the development of infrastructure that incorporated the forecast increase in frequency and intensity of extreme climatic events.

The Government assigned a high priority to the Infrastructure Masterplan as it identified priority (i) infrastructure rehabilitation and upgrading requirements, ranging from the power to transport and water and sanitation sectors both on the main island and in the outer-islands and (ii) policy and institutional reform recommendations to improve delivery of infrastructure and utility services. The Masterplan identified infrastructure upgrading programs that are capable of stimulating growth and diversifying and building a broader base for economic growth and employment. Subsequently, the Masterplan has been used by the Government as a key input to its National Sustainable Development Plan.

The Masterplan will be implemented in a highly consultative and participatory manner and the PPTA preparation and implementation is proposed to involve development partners, including New Zealand Agency for International Development and the Australian Agency for International Development, and be carefully coordinated with rural power supply programs of the European Union and development cooperation of the People?s Republic of China. Given the focus on prudent macroeconomic management, financing of the Masterplan is expected to require both grant resources of the development partners and loan resources, blending the maximum availability of grant assistance with ADB?s loans.

Impact The PPTA impact will be a contribution to environmentally sound development of infrastructure for power, water supply, sanitation, solide waste, and transport that will support sustained growth and development, and a sustainable basis for greater resource generation for the Government's pro-poor objectives.
Project Outcome
Description of Outcome The PPTA outcome will be an agreed plan for strengthening the infrastructure governance framework countrywide and capacity development of Cook Islands' implementing agencies, and a detailed project proposal for priority funding by development partners and the Government.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs The TA outputs will be (i) a recommendation for an infrastructure governance framework that enables the Government to optimize the contribution of infrastructure to environmentally sustainable growth and improve basic service delivery, involving a review of institutional arrangements and capacity, policies including cost recovery, and procedures; (ii) public awareness building for changed institutional arrangements; and (iii) detailed feasiblity study for priority infrastructure investments with techinical, financial, economic, environmental, social and poverty assessments in accordance with ADB's policies and guidelines; and covering the first phase of the 20-year Preventive Infrastructure Master Plan.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Cook Islands
Safeguard Categories
Environment
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services with a total 21 international and 12 domestic person-months of inputs will be provided by an international consulting firm with expertise in (i) preparation of feasibility studies and design of projects in the power, transport, water and sewerage sectors, (ii) application of safeguards in environment, resettlement and social impact areas, and (iii) infrastructure governance, institutional and policy reviews. An international firm will be engaged by ADB to implement the PPTA, using the quality and cost-based selection in accordance with ADB's Guidelines on the Use of Consultants by the Asian Development Bank and its Borrowers (February 2007), as amended from time to time). The quality-cost weighting ratio will be 80:20. ADB's simplified technical proposal procedure will be used. Domestic consultants will provide support in application of safeguards and particularly for local consultations and surveys. The consultant team will include a Team Leader with expertise in infrastructure economics, institutional reform and capacity building (7 person months), Institutional Specialist (3 person months), a Financial Management Specialist (1 person month) Design Engineers with expertise in the design and cost estimation of projects in the selected sub sectors (6 person months), an Environmental Specialist (2 person months), a Resettlement Specialist (2 person months) and a Social Impact Specialist (2 person months). Domestic consultants with expertise in environmental, resettlement, and social issues will be engaged for a total of 12 person months.
Responsible ADB Officer Richard S. Phelps
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance & Economic ManagementSholan Ivaitifinsec@oyster.co.ckAvarua, Rarotonga
Timetable
Concept Clearance 27 Apr 2007
Fact Finding 12 Mar 2007 to 16 Mar 2007
MRM -
Approval 12 Dec 2007
Last Review Mission -
PDS Creation Date 13 Jun 2007
Last PDS Update 19 Apr 2010

TA 7022-COO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2007 25 Jan 2008 25 Jan 2008 30 Nov 2008 31 May 2009 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
625,000.00 200,000.00 125,000.00 0.00 0.00 0.00 950,000.00 12 Dec 2007 681,232.78

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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