Fiji Ports Development Project (Loan 1902-FIJ)
This report evaluates the performance of the project aimed at achieving a stable macroeconomic environment; support trade, investment, and private sector development; and enhance competitiveness of the Fijian economy.
This project performance evaluation report presents the findings from evaluation of the Fiji Ports Development Project to assess its performance and highlight lessons. It provides inputs to the Regional Sector Assistance Performance Evaluation on Pacific Transport.
The project was to assist the Government of Fiji in developing port sector facilities and operations, thereby enhancing competitiveness of the Fijian economy. The project was expected to support sector performance improvements, including by introducing competition in cargo handling, crystallizing agency responsibilities, optimizing operational management, and enhancing environmental management of ports.
Overall, the project is rated successful.
The project is assessed relevant. It was relevant during project appraisal, completion, and evaluation. The envisaged impacts, outcome, and outputs were consistent with the governments development strategies, including Fiji's Strategic Development Plan for 2003"2005 and its latest Strategic Development Plan for 2007"2010. The project was also consistent with ADB's country strategies and programs at the time of appraisal. However, the project design had shortcomings.
The project is assessed effective. Four of the six intended outcome indicators have been fully achieved and seven of the 10 intended output indicators have been fully or largely achieved. The intended outcomes of faster average vessel turnaround time, increased cargo volume, increased number of ship calls, and more effective use of stacking areas have all been fully achieved. There also have been marked improvements in cargo-handling operations as a result of the project.
The project is assessed highly efficient. The overall reestimated economic internal rate of return (EIRR) is computed as 24.5%, with Suva Port having an EIRR of 26.4% and Lautoka Port an EIRR of 22.8%. The project was completed with a 5-month delay vis-a -vis the appraisal schedule. However, it should be noted that the project started 18 months late and that the actual pace of implementation was very quick in the latter stages.
The project is assessed likely to be sustainable. The current level of maintenance is satisfactory, but there are some issues with regard to poor utilization rates of the Fiji Ports Corporation Limited-owned shore cranes and inadequate cargo-handling equipment.
- Costs and benefits of the various options for meeting water quality objectives should have been more thoroughly considered.
- Site development planning and stakeholder consultation should have been given more importance.
- Competition in cargo handling could have improved productivity.
- Benchmark survey should have been conducted.
- Reducing and eliminating the port service charge could improve Fiji ports competitive advantage.
- The project could have benefited from more careful preparation.
- More thorough stakeholder consultation during project processing could have led to better project design.
- More rigorous risk assessment during project processing would have allowed for better monitoring of key assumptions during implementation.
- Lack of baseline data hampered evaluation.
ADB's 2007 Fiji Islands: Reengagement Approach stipulates that there will be no country partnership strategy or country operational business plan for the country until such time as the criteria for reengagement have been achieved. Two follow-up actions are proposed for the sector division to take up upon reengagement: (i) follow up with Fiji Ports Corporation Limited to expedite introducing competition in cargo handling, and (ii) encourage the government to enter into dialogue with shipping agents and companies to work toward eliminating the port service charge.
- Basic Data
- Executive Summary
- Design and Implementation
- Performance Assessment
- Other Assessments
- Issues, Lessons, and Follow-up Actions