Vanuatu: Port Vila Urban Development Project

Sovereign Project | 42391-013

Summary

The proposed Port Vila Urban Development Project (PUDP) will improve drainage, roads and sanitation systems in greater Port Vila (municipality and adjacent urban and peri-urban areas in the Shefa province). The Project will implement the recommendations of the drainage and sanitation master plan prepared through a project preparatory technical assistance (PPTA) which identified priority interventions for improved access to, and delivery of drainage and sanitation services to the residents of Port Vila. It will support affordable, sustainable, and effective sanitation, roads and storm water drainage services, and contribute to climate resilient and sustainable urban development in and around Port Vila.

The project will address the following key issues:

Latest Project Documents

Consulting Notices

See also: CMS
Title Deadline
Communication and Public Relations Officer 31 Aug 2015

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

Title Document Date
Port Vila Urban Development Project Mar 2013

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Project Name Port Vila Urban Development Project
Project Number 42391-013
Country Vanuatu
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 0275-VAN: Port Vila Urban Development Project
Australian Grant US$ 25.61 million
Australian Grant US$ 889,000.00
Loan 2832-VAN: Port Vila Urban Development Project
Asian Development Fund US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Transport - Urban roads and traffic management
Water and other urban infrastructure and services - Urban sanitation - Urban sewerage
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed Port Vila Urban Development Project (PUDP) will improve drainage, roads and sanitation systems in greater Port Vila (municipality and adjacent urban and peri-urban areas in the Shefa province). The Project will implement the recommendations of the drainage and sanitation master plan prepared through a project preparatory technical assistance (PPTA) which identified priority interventions for improved access to, and delivery of drainage and sanitation services to the residents of Port Vila. It will support affordable, sustainable, and effective sanitation, roads and storm water drainage services, and contribute to climate resilient and sustainable urban development in and around Port Vila.

The project will address the following key issues:

(i) Link between sanitation and drainage and road development. It is critical to coordinate and integrate the design and implementation of the drainage and sanitation project within the long-term priorities for urban infrastructure development in and around Port Vila, particularly with the development plans for the road sector.

(ii) Poor coordination in the delivery of services and weak capacity of institutions. The responsibilities of relevant agencies involved in urban development are not clearly delineated. Coordination among these agencies is poor, and concerned agencies have limited capacity in urban planning and lack human resources. A dearth of skills, resources, and performance incentives makes it difficult to provide high-quality public services.

(iii) Role of hygiene as an integral part of improved sanitation. As the sanitation master plan emphasizes the role of hygiene in the improvement of public health, complementary sanitation and hygiene promotion will be implemented alongside investment in infrastructure and facilities. This includes adequate drainage within communities, as a part of hygiene and public health and training and awareness programs.

(iv) Gender mainstreaming and universal access to basic services. Approaches and methodology will be developed for hygiene and health education and awareness activities, to ensure active involvement of the youth and women in the peri-urban, informal and rural settlements. Existing and newly created women groups will be made part of the management and maintenance of the community hygiene facilities. The pros and cons of adopting local employment generation as part of the project strategy during the design and preparation of the investment project will also be identified.

(v) Operations and Maintenance (O&M) and sustainability of drainage and sanitation services. The sustainability of drainage, roads and sanitation services is heavily dependent upon appropriate institutional arrangements for O&M, including debt servicing and cost recovery. The project envisaged that cost recovery will be achieved by increasing property taxes or other direct charges such as user fees or levies. It is anticipated that the O&M services will be outsourced to private service providers, supervised by the Government.

(vi) Mitigating adverse environmental impacts and adapting to climate change. These can be achieved by emphasizing in the project design appropriate investment in climate proofing to ensure a sustainable and climate resilient urban development in Port Vila.

Project Rationale and Linkage to Country/Regional Strategy

Port Vila, with approximately 44,000 residents, is the largest population center, main commercial center and the seat of government in Vanuatu. It has already expanded beyond its originally defined urban boundaries due to rapid economic development, rural-urban migration, and the proliferation of informal settlements. The estimated population of the resulting 'Greater Port Vila' area in 2009 was 58,000 residents. By 2025, this figure will reach 109,000. This does not take into account the growing number of tourists that visit Port Vila and/or transit through the city to different tourism destinations in the country. The tourism sector is the lifeline of the national economy. Urban development and quality of urban services in Port Vila have significant implications for economic growth and overall development of Vanuatu. Despite efforts by the government to build the necessary infrastructure, i.e., telecommunication, and water supply, significant inadequacies continue to exist particularly in drainage, roads, sanitation, and hygiene services. The poor conditions of these services are adversely affecting public health, economic activities, and the overall quality of life of Port Vila residents and visitors.

Vanuatu is also extremely vulnerable to natural disasters due to it its geographical location in the ring of fire and the cyclone belt of the Pacific. It is at risk from a wide range of climate-related hazards including coastal erosion, tropical cyclones, floods, landslides, and drought, which are expected to increase in severity and frequency as a result of climate change, warranting emphasis on climate proofing of infrastructure, policy and institutional capacity building for disaster risk management, and improving climate resiliency.

The government has a Priorities and Action Agenda (PAA) 2006-2015 and a medium-term action program, entitled Planning Long, Acting Short Action Program . It prioritizes a set of short- and medium-term development initiatives. Sustainable urban development through improved access to basic services such as sanitation and drainage facilities and urban infrastructure is an important priority for the government. This has been identified among the three core sectors for support under the Asian Development Bank's (ADB) Country Partnership Strategy for Vanuatu (CPS) 2010-2014. The CPS also places emphasis on long-term support for country systems and capacities in core areas such as rural and urban infrastructure. In partnership with the Australian Agency for International Development (AusAID), ADB, through the Pacific Regional Infrastructure Facility (PRIF), is expected to assist the government to improve urban infrastructure and services in Port Vila and its peri-urban areas. AusAID's Governance for Growth (GfG) initiative is providing a wide range of support to the urban transport sector in Port Vila and other parts of the country. The Japan International Cooperation Agency (JICA) is supporting capacity building and selected interventions in waste management and monitoring. The New Zealand Aid Program is working in partnership with ADB to improve interisland shipping services with significant link to urban development.

Impact Urban development of Port Vila is sustainable
Project Outcome
Description of Outcome Government of Vanuatu has sustainably improved the hygiene situation and reduced water-based hazards in Port Vila.
Progress Toward Outcome

Detailed engineering design of the project's civil works components is ongoing. Implementation of the civil works is expect to commence in June 2015.

The project's hygiene awareness and education programs have commenced and will be implemented over the next 3 years.

Implementation Progress
Description of Project Outputs

An improved road network and drainage system in greater Port Vila.

An improved sanitation system in greater Port Vila

Central area and settlement communities use improved hygiene facilities

Government agencies and communities and user groups have the capacity to manage sanitation, roads, and drainage systems effectively and efficiently.

Efficient project management services are provided

Status of Implementation Progress (Outputs, Activities, and Issues) Detailed engineering design of the project's civil works components is ongoing. Implementation of the civil works is expect to commence in June 2015.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Indiscriminate wastewater disposal leading to increased public health risks.
Involuntary Resettlement The extent of land acquisition required and the number of affected persons are currently being determined.
Indigenous Peoples No issues of indigenous people are expected. This will be verified during the PPTA.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder workshops were conducted during the project design.
During Project Implementation A communication and communicity liaison unit will be established in the project management unit (VPMU). Communication and engagement during project implementation will be achieved through (i) media releases, (ii) stakeholder and community workshops, (iii) consultation with stakeholders on an individual-basis, and (iv) posting of project information on the VPMU website.
Business Opportunities
Consulting Services

All consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). The consultants for project design, supervision and project management will be engaged using the QCBS method with a standard quality:cost ratio of 80:20.

An estimated 601 person-months (122 international, 479 national) of consulting services are required to (i) facilitate project management and implementation, and (ii) strengthen the institutional and operational capacity of the executing agency. Consulting firms will be engaged using the QCBS method with a standard quality cost ratio of 80:20, except for the urban development adviser, to be recruited by ADB on a direct selection basis.

Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). Procurement using the government's systems and under national laws for national competitive bidding (NCB) will follow the procedures for NCB set out in the procurement plan.

For civil works and plant contracts, four contract packages will be procured by international competitive bidding (ICB) procedures and two by NCB procedures. For goods contracts, a single contract package will be procured by ICB. Goods comprising a vehicle and office equipment will be procured by shopping.

ICB procedures will be used for civil works contracts estimated to cost $1 million or more, and supply contracts valued at $500,000 or higher. NCB procedures will be used for civil works contracts estimated to cost less than $1.0 million. Shopping will be used for contracts for procurement of works and equipment worth less than $100,000.

Before the start of any procurement ADB and the Government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines.

Responsible ADB Officer Stephen Blaik
Responsible ADB Department Pacific Department
Responsible ADB Division Urban, Social Development & Public Management Division, PARD
Executing Agencies
Ministry of Finance & Economic ManagementP.M.B. 058
Port Vila
Vanuatu
Timetable
Concept Clearance 17 May 2011
Fact Finding 17 May 2011 to 26 May 2011
MRM 24 Jun 2011
Approval 13 Dec 2011
Last Review Mission -
Last PDS Update 30 Mar 2015

Grant 0275-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2011 12 Dec 2012 13 Feb 2013 31 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.50 Cumulative Contract Awards
ADB 0.00 13 Dec 2011 0.00 7.27 27%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 26.50 13 Dec 2011 0.00 0.08 0%

Grant 0276-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2011 12 Dec 2012 13 Feb 2013 31 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 13 Dec 2011 0.00 4.12 92%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2011 0.00 3.60 80%

Loan 2832-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2011 12 Dec 2012 13 Feb 2013 31 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.10 Cumulative Contract Awards
ADB 5.00 13 Dec 2011 0.00 0.00 0%
Counterpart 3.10 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2011 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory
Title Document Type Document Date
Port Vila Urban Development Project Procurement Plans Mar 2013
Loan Agreement (Special Operations) for Port Vila Urban Development Project Loan Agreement (Special Operations) Dec 2012
Grant Agreement (Externally Financed) for the Port Vila Urban Development Project (0275-VAN) Grant Agreement Dec 2012
Grant Agreement (Externally Financed) for the Port Vila Urban Development Project (0276-VAN) Grant Agreement Dec 2012
Port Vila Urban Development Project Summary Poverty Reduction and Social Strategies Nov 2011
Port Vila Urban Development Project Gender Action Plans Nov 2011
Port Vila Urban Development Project Project/Program Administration Manual Nov 2011
Port Vila Urban Development Project Reports and Recommendations of the President Nov 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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