Nauru : Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project)
Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project) will improve port operations in Nauru by building a wharf, breakwater, and a berth pocket at Aiwo, reconstructing port buildings and the container storage area, and strengthening the institutional capacity of the Nauru Maritime and Port Authority (NMPA).
Project Details
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Project Officer
Haider, Syed Hussain
Pacific Department
Request for information -
Country/Economy
Nauru -
Sector
- Transport
Project Name | Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project) | ||||||||||||||||||||
Project Number | 48480-003 | ||||||||||||||||||||
Country / Economy | Nauru |
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Project Status | Active | ||||||||||||||||||||
Project Type / Modality of Assistance | Grant |
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Source of Funding / Amount |
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Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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Drivers of Change | Gender Equity and Mainstreaming Knowledge solutions Partnerships Private sector development |
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Sector / Subsector | Transport / Water transport (non-urban) |
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Gender | Effective gender mainstreaming | ||||||||||||||||||||
Description | Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project) will improve port operations in Nauru by building a wharf, breakwater, and a berth pocket at Aiwo, reconstructing port buildings and the container storage area, and strengthening the institutional capacity of the Nauru Maritime and Port Authority (NMPA). | ||||||||||||||||||||
Project Rationale and Linkage to Country/Regional Strategy | The project will require (i) project design advance, (ii) project preparatory technical assistance, and (iii) capacity building and institutional strengthening of NMPA to be provided under a transaction technical assistance. | ||||||||||||||||||||
Impact | Sustainability and quality of life of all Nauruans improved. |
Project Outcome | |
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Description of Outcome | Efficiency, reliability, and climate-resilience of Aiwo port improved. |
Progress Toward Outcome | On 6 December 2021, the government and the contractor negotiated a revised completion time under a deed of variation, which included four milestones to complete the works: (i) provision of an operational wharf by 30 April 2022, enabling berthing of Nauru Shipping Line's Micronesian Pride; (ii) installing fuel pipeline by 31 August 2022 enabling discharging fuel from a tanker; (iii) completion of all works other than dredging by 31 December 2022; and (iv) completing dredging to -11m by 30 June 2023. Completion of all milestones is delayed; however, Milestone 1 was achieved on 3 September 2022, when the Micronesian Pride berthed alongside the new wharf. Milestone 2 is expected to be completed in May 2023, whereas work on the remaining two is in progress. The contractor has not confirmed the timelines of Milestones 2 and 4 and linked these milestones' completion with the rock armor supply which is the government's responsibility, and trials of hydraulic cutting machine due in early May 2023 to achieve -11meter depth. As of March 2023, progress on the civil works contract was 65%. Grants closing is in December 2024. |
Implementation Progress | |
Description of Project Outputs | Climate-proofed port infrastructure constructed Sustainable operations and maintenance achieved Efficient port operations established |
Status of Implementation Progress (Outputs, Activities, and Issues) | In December 2019, the government ratified the Maritime Security Act 2019, the Port and Navigation Act 2019, and Maritime Security Act Regulations. On 1 February 2020, NMPA was established as a self-managed state-owned enterprise. The reforms in NMPA are ongoing. The commissioning of tools and software is ongoing. The NMPA gender strategy is under development. Women participation is encouraged in project activities. Civil progress is slow and all milestones are delayed. An partial operational wharf was achieved on 3 September 2022. However, the construction of the port infrastructure is ongoing and expected to be further delayed from its scheduled completion of June 2023. The government has established a revolving maintenance fund, fulfilling its commitment. |
Geographical Location | Nation-wide |
Safeguard Categories | |
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Environment | B |
Involuntary Resettlement | A |
Indigenous Peoples | C |
Summary of Environmental and Social Aspects | |
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Environmental Aspects | The location of the site and the proposed activities at the existing port will create site-specific, but nevertheless, potential adverse environmental impacts and therefore mitigation measures will need to be designed and implemented. The feasibility study and project preparatory have been carried out through parallel project design advance (PDA) and technical assistance project, and the PDA activities include UXO assessment and geotechnical investigations. These created some environmental impacts and an IEE was prepared covering the pre-construction stage activities. An IEE covering the construction and operation activities has been prepared under the technical assistance project. Unanticipated environmental impacts, including vibration and noise, were identified on adjacent residential units, inhabitation of which had increased since the environmental assessment was conducted, during the initial stages of construction. The project team established additional mitigation measures to monitor these environmental impacts. The residential buildings adjacent to the construction site are significantly dilapidated, and this status is considered to increase risks associated with potential vibration impacts. ADB requested the government to implement additional mitigation and management measures, including providing additional temporary accommodation for the adjacent residents, where required. ADB has supported the government to ensure that planning and implementation meet Nauru laws and the ADB Safeguard Policy Statement 2009 (SPS). |
Involuntary Resettlement | The existing port is located on land leased through long-term arrangements to the government, the project will not require land acquisition or change in title. A cadastral survey has been undertaken as part of the PDA to confirm land ownership of affected plots, boundaries of plots, and nature of existing and extension (if required) to the leases. The lease agreements have been extended for an indefinite period until the use of the port for public purposes. On 3 June 2021, the project was recategorized from category C to category A for involuntary resettlement, in compliance with the ADB Safeguard Policy Statement (2009), to permanently relocate affected residents living in the adjacent residential units next to the port construction area. ADB assisted the government in preparing and finalizing the relocation plan (Resettlement Plan), including assessing the social effects. The relocation plan was publicly disclosed through meetings held in Nauru on 12 June 2021. The government has prepared an action plan (Addendums to the Resettlement Plan) to cover the temporary relocation of the residents until the government constructs permanent houses. By 27 November 2021, all residents were relocated to rented houses outside the affected area. As at April 2023, demolition of vacated buildings on land within the Location areas has been completed in January 2023 although some residential graves remain and will need to be protected and monitored. Overall OH& S on the project is noted as improved for the project and workers' camp. Six of the 70 houses within the permanent housing program have been delivered with an additional 19 under construction constituting a significant delay. The NMPA continues to support the remaining 64 families who have been placed within temporary accommodation. Completion of this program is a condition of the Resettlement Plan. A SEAH action plan, SOP, and Codes of Conduct have been developed and adopted by the project. |
Indigenous Peoples | The purpose of the project is to replace and upgrade the existing port infrastructure and improve capacity of the Port Authority of Nauru to manage the port operations and maintain the upgraded infrastructure. This will directly result in improved operational systems for international shipping access and services to Nauru whilst increasing efficiency of the port, health and safety to all workers and users and assist in the sustainable development of the country. |
Stakeholder Communication, Participation, and Consultation | |
During Project Design | The Government of Nauru and NMPA staff is engaged in all aspects of the project through investigation, design and implementation stages. The community consultations have been undertaken during project preparatory stage and is being continued during construction stage. The community will have the opportunity in serving at the project during construction stage and providing services such as food, accommodation, transportation for the construction staff. |
During Project Implementation | The Government (Ministry of Finance), Nauru Maritime and Port Authority (NMPA), NMPA workers, all importers and exporters, potential passengers, domestic market retailers, general public and development partners. The key stakeholders from the Government and NMPA form the project steering committee. The steering committee oversees project preparation and implementation. The business community and general public take part in consultative process. Ongoing review of the environment and other safeguards issues will be undertaken as part of the project due diligence. The civil society organizations (CSOs) have been consulted and involved during project preparatory stage in carrying out social surveys and will continue during construction stage for conducting workshops and training programs for preventing spread of communicable diseases, including HIV/AIDS from the international workers. Ongoing consultations with CSOs will be undertaken during the project implementation. |
Business Opportunities | |
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Consulting Services | The recruitment of supervision consultants has been completed and the contract was signed on 6 December 2018. |
Procurement | The procurement of civil works contract has been completed and the contract was signed on 7 December 2018. |
Responsible ADB Officer | Haider, Syed Hussain |
Responsible ADB Department | Pacific Department |
Responsible ADB Division | Pacific Liaison and Coordination Office in Sydney, Australia (PLCO) |
Executing Agencies |
Department of Finance |
Timetable | |
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Concept Clearance | 03 Dec 2015 |
Fact Finding | 22 Oct 2017 to 25 Oct 2017 |
MRM | 16 Nov 2017 |
Approval | 16 Dec 2015 |
Last Review Mission | - |
Last PDS Update | 27 Apr 2023 |
Grant 0564-NAU
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
25 Jan 2018 | 13 Aug 2018 | 06 Sep 2018 | 30 Jun 2023 | 31 Dec 2024 | - |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 38.60 | Cumulative Contract Awards | |||
ADB | 21.30 | 23 Jul 2023 | 20.96 | 0.00 | 98% |
Counterpart | 17.30 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 23 Jul 2023 | 16.77 | 0.00 | 79% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Grant 0565-NAU
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
25 Jan 2018 | 13 Aug 2018 | 06 Sep 2018 | 30 Jun 2023 | 31 Dec 2024 | - |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 14.08 | Cumulative Contract Awards | |||
ADB | 0.00 | 23 Jul 2023 | 0.00 | 11.18 | 79% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 14.08 | 23 Jul 2023 | 0.00 | 7.09 | 50% |
Grant 0566-NAU
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
25 Jan 2018 | 13 Aug 2018 | 06 Sep 2018 | 30 Jun 2023 | 31 Dec 2024 | - |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 26.91 | Cumulative Contract Awards | |||
ADB | 0.00 | 23 Jul 2023 | 0.00 | 26.91 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 26.91 | 23 Jul 2023 | 0.00 | 20.27 | 75% |
Grant 0833-NAU
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
09 May 2022 | 10 May 2022 | 08 Aug 2022 | 31 Dec 2024 | - | - |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 15.15 | Cumulative Contract Awards | |||
ADB | 15.00 | 23 Jul 2023 | 10.64 | 0.00 | 71% |
Counterpart | 0.15 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 23 Jul 2023 | 2.28 | 0.00 | 15% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Grant 6005-NAU
Milestones | |||||
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Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
16 Dec 2015 | 22 Dec 2015 | 22 Dec 2015 | 31 Mar 2018 | 30 Jun 2023 | 05 Jul 2021 |
Financing Plan | Grant Utilization | ||||
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Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 3.00 | Cumulative Contract Awards | |||
ADB | 3.00 | 23 Jul 2023 | 3.00 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 23 Jul 2023 | 3.00 | 0.00 | 100% |
Status of Covenants | ||||||
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Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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Requests for information may also be directed to the InfoUnit.
Q&A: How a New Port is Building Skills and Knowledge in Nauru
Nimitz Adam, 39, from Boe District, is a mechanic at Nauru’s Aiwo Boat Harbor. Since construction began on Nauru's new port in October 2019, the father of 6 says the people of Nauru are beginning to realize their dream of having an efficient, reliable, and climate-resilient international port. “The new port will be like a lifeline for the people of Nauru.”How innovation is helping to deliver a new port for Nauru
The unique challenges of financing and building a climate-resilient port in a tiny Pacific country required ADB to develop and deploy innovative approaches to ensure the project’s design, governance, and monitoring were efficient and effective.Port Upgrade Throwing a Lifeline to the People of Nauru
Construction has begun on an almost $80 million project, co-financed by ADB, Australia, Nauru, and the Green Climate Fund, to transform Nauru’s century-old Aiwo boat harbor into an efficient, reliable, and climate-resilient port.Construction Begins for Nauru's First International Port, Supported by ADB
With support from ADB, work has begun to transform the Aiwo Boat Harbor area, which will help make it Nauru’s first international and cargo terminal, improving the country’s maritime trade and connectivity.ADB, Green Climate Fund, Australia Help Upgrade, Climate-Proof Port in Nauru
ADB's Board of Directors has approved a $21.3 million grant to help upgrade the Aiwo boat harbor in Nauru, which will make it the country’s first fully functioning international port.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
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Assistant Port Construction Engineer/Works Superintendent | Individual - Consulting | Closed | ||
Competency Training Delivery | Firm - Consulting | Closed | ||
Fisheries Sector Evaluation Expert | Individual - Consulting | Closed | ||
Deputy Project Manager | Individual - Consulting | Closed | ||
Independent Technical Verifier | Individual - Consulting | Closed | ||
Grant No. 48480-NAU: Sustainable and Climate-Resilient Connectivity Project [1] | Invitation for Bids | Closed | ||
NAU: Sustainable and Climate-Resilient Connectivity Project | Advance Notice | Active | ||
Supervision Consultant | Firm - Consulting | Closed |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
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RE-DEVELOPMENT OF AIWO PORT | Grant 0565 | 07 Dec 2018 | CHINA HARBOUR ENGINEERING COMPANY LTD | NO. 9 CHUNXIU ROAD DONGZHIMENWAI BEIJING 100027 CHINA PEOPLE'SREP.OF | Ministry of Finance | 9,326,636.81 | — |
RE-DEVELOPMENT OF AIWO PORT | Grant 0566 | 07 Dec 2018 | CHINA HARBOUR ENGINEERING COMPANY LTD | NO. 9 CHUNXIU ROAD DONGZHIMENWAI BEIJING 100027 CHINA PEOPLE'SREP.OF | Ministry of Finance | 21,475,088.27 | — |
RE-DEVELOPMENT OF AIWO PORT | Grant 0564 | 07 Dec 2018 | CHINA HARBOUR ENGINEERING COMPANY LTD | NO. 9 CHUNXIU ROAD DONGZHIMENWAI BEIJING 100027 CHINA PEOPLE'SREP.OF | Ministry of Finance | 15,803,390.70 | — |
SUPERVISION CONSULTANTS | Grant 0564 | 07 Dec 2018 | CARDNO EMERGING MARKETS (AUS) PTY LTD | LEVEL 4 501 SWANSTON STREET MELBOURNE VIC 3000 AUSTRALIA | Ministry of Finance | 1,805,082.16 | — |
Procurement Plan
Title | Document Type | Document Date |
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Sustainable and Climate-Resilient Connectivity Project: Procurement Plan | Procurement Plans | Mar 2022 |