Vanuatu: Interisland Shipping Support Project (Second Additional Financing)

Transport / Transport policies and institutional development - Water transport (non-urban)

The Vanuatu Interisland Shipping Support Project (VISSP) was approved as Loan 2820/Grant 0273-VAN on 30-Nov-11. The project is co-financed by the Government of New Zealand. The safeguards categorizations of the original project are B for environment and C for involuntary resettlement and indigenous people. The project has been under implementation since 2012 and regular review missions have been conducted and semi-annual monitoring reports have been regularly received and disclosed.

Component 1 of VISSP - construction and rehabilitation of domestic wharves and jetties in Vanuatu - originally comprised seven subprojects (Figure 1) including:

a. South Paray domestic wharf and channel construction

b. Simonsen wharf rehabilitation

c. Lenakel wharf rehabilitation

d. Litzlitz wharf rehabilitation

e. Lolowai jetty construction

f. Loltong jetty construction

g. Port Sandwich jetty construction

Inadequate designs and project management by the previous consultant resulted in construction delays for South Paray, and Outer Islands (b-g) to the extent that the construction could not proceed as originally planned. The original consultant's contract was terminated by Government of Vanuatu (the government) and construction works at South Paray Wharf was suspended in November 2017 at which time the construction of South Paray was 70% complete. South Paray channel construction was completed in February 2017. Very little design work and no construction had commenced in respect of the other subprojects b-g.

Following the government review of the project status in 2018, Lolowai and Loltong subprojects were removed from the VISSP project and redesign for South Paray, Lenakel, Litzlitz, Simonsen, and Port Sandwich commenced. The New Zealand Ministry of Foreign Affairs (MFAT) is funding the redesign of South Paray, Lenakel and Liztlitz wharves and ADB is funding the independent design review and construction of these subprojects. ADB is funding both the redesign (including independent design review) and construction of Simonsen and Port Sandwich wharves.

This second additional financing to the project will cover the reconstruction and rehabilitation for the wharves at Simonsen and Port Sandwich.

Maritime infrastructure provided in the capital and rural areas improved

Shipping support and coordination schemes established

Efficient and effective project implementation services ensured

The Office of Maritime Regulator established