Project Name
Nuku'alofa Port Upgrade Project
Project Number
53045-003
Country / Economy
  • Tonga
Project Status
Active
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
Grant 0774-TON: Nuku'alofa Port Upgrade Project
Source Amount
Asian Development Fund US$ 45.00 million
Grant 0889-TON: Nukualofa Port Upgrade Project (Additional Financing)
Source Amount
Asian Development Fund US$ 10.00 million
Grant 0890-TON: Nukualofa Port Upgrade Project (Additional Financing)
Source Amount
Government of Australia US$ 20.00 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Transport / Transport policies and institutional development - Water transport (non-urban)

Gender
Effective gender mainstreaming
Description
The project will upgrade the Nukualofa port, rehabilitate, renew and expand the existing infrastructure and improve the management and operations practices. The project outputs will result in the following outcome: capacity and operations of the Nukualofa Port improved. The project will be aligned with the following impact: safer, more reliable, and more affordable transport infrastructure and services in Tonga.
Project Rationale and Linkage to Country/Regional Strategy
The development goals of Tonga include safer, more reliable, and more affordable transport infrastructure and services, as presented in the Tonga Strategic Development Framework, 2015 to 2025. The National Infrastructure Investment Plan, 2013 to 2023 outlines the vision for the development of the infrastructure sector; the plan prioritizes the improvement of maritime infrastructure to cope with increased demand and the impact of climate change and disasters. The proposed project is aligned with the Pacific Approach, 2016 to 2020 in reducing costs by improving regional connectivity through transport infrastructure, managing risks, and enabling value creation. ADBs Strategy 2030 also expands the focus on small island developing states to strengthen connectivity, access, and institutional capacity, while tackling climate change impacts and disaster risks.
Impact

Safer, more reliable, and more affordable transport infrastructure and services provided in Tonga (Tonga Strategic Development Framework, 2015 to 2025)

Project Outcome

Description of Outcome

Capacity and operations of Nukualofa Port improved.

Progress Toward Outcome
Procurement support for the project is ongoing.

Implementation Progress

Description of Project Outputs

Port infrastructure rehabilitated

International cargo wharves and supporting infrastructure extended

Port operations and management improved

Status of Implementation Progress (Outputs, Activities, and Issues)
The contracts for civil works, consulting supervision firm and PMU consultants have been awarded. A review mission has been fielded in March 2023.
Geographical Location
Nation-wide

Safeguard Categories

Environment
B
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
The initial environmental examination (IEE) demonstrates that impacts on the physical, biological and socio-economic environment will be minor, few, if any are irreversible, and most can be managed through good practice during both construction and operation along with implementation of the projects environmental management plan (EMP) detailed in the IEE. Short-term impacts are anticipated during construction. A sediment plume analysis demonstrates that any impacts from turbidity will be localized and insignificant. The ADB will ensure the Safeguard Policy Statement as well as country safeguards are complied with.
Involuntary Resettlement
The port upgrade will occur on existing facilities located on government-owned land. The land is leased by the Port Authority of Tonga (PAT). There is no expected involuntary resettlement impacts, and this will be verified by a social safeguards specialist.
Indigenous Peoples
The project will not impact any distinct and vulnerable group of Indigenous Peoples as defined under ADB's Safeguard Policy Statement. The project is limited to port upgrading civil works within existing port facilities located in the capital of Tonga and some capacity building activities with employees of the Port Authority of Tonga.

Stakeholder Communication, Participation, and Consultation

During Project Design
The main stakeholders will be the Government (Ministry of Finance and National Planning, and the Ministry of Infrastructure), PAT workers, contractors and suppliers to PAT, importers and exporters, shipping companies and agencies, domestic market retailers, the general public and development partners. The key stakeholders from the Government and PAT will form the Project Management Unit (PMU) and will oversee the preparation and delivery of the project. The business community and general public will take part in consultation process regarding the project design.
During Project Implementation
The Government and PAT staff will be engaged in all aspects of the project through its investigation, design and implementation stages. Community consultation will also be undertaken during project implementation.

Business Opportunities

Consulting Services

ADB approved in July 2019 a Project Readiness Financing (PRF) grant to prepare engineering designs, update due diligence, and procurement support. A consulting firm (Haskoning DHV Nederland B.V.) was recruited under the PRF to undertake these activities. The PRF also supported the strengthening of the governments capacity on project preparation with the establishment in September 2019 of a Project Management Unit (PMU) under the Ministry of Infrastructure.

These contracts included provisions that subject to the satisfactory performance of the consultants, the Government may single source the consultants for further downstream assignments. Considering this, the same consultancy (Haskoning DHV Nederland B.V.) was directly engaged for construction supervision services of the port upgrade civil works.

Procurement
The project includes a single civil works contract comprising all marine and land side works. The procurement method has been open competitive bidding (internationally advertised) with prequalification, using merit-point based criteria. McConnell Dowell has been procured by the Government to undertake the civil works.

Contact

Responsible ADB Officer
Shim, Cha-Sang
Responsible ADB Department
Sectors Group
Responsible ADB Division
Transport Sector Office (SG-TRA)
Executing Agencies
Ministry of Finance

Timetable

Concept Clearance
05 May 2020
Fact Finding
04 May 2020 to 14 May 2020
MRM
08 Jul 2020
Approval
03 Dec 2020
Last Review Mission
-
Last PDS Update
03 May 2023

Funding

Grant 0774-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2020 12 Jan 2021 22 Jan 2021 31 Dec 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 50.00
ADB 45.00
Counterpart 5.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 07 Jun 2024 42.68 0.00 95%
Cumulative Disbursements 07 Jun 2024 37.24 0.00 83%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - Unsatisfactory

Grant 0889-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Apr 2023 21 Nov 2023 13 Dec 2023 31 Dec 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 13.50
ADB 10.00
Counterpart 3.50
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 07 Jun 2024 3.30 0.00 33%
Cumulative Disbursements 07 Jun 2024 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - Unsatisfactory

Grant 0890-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Apr 2023 21 Nov 2023 13 Dec 2023 31 Dec 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 20.00
ADB 0.00
Counterpart 0.00
Cofinancing 20.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 07 Jun 2024 0.00 20.00 100%
Cumulative Disbursements 07 Jun 2024 0.00 0.00 0%
 
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Source URL: https://www.adb.org/projects/53045-003/main