Nauru : Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project)

Sovereign Project | 48480-003

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

  • 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
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 6005-NAU: Port Development Project - Project Design Advance
Asian Development Fund US$ 3.00 million
Grant 0564-NAU: Sustainable and Climate Resilient Connectivity in Nauru (formerly Port Development Project)
Asian Development Fund US$ 21.30 million
Grant 0565-NAU: Sustainable and Climate Resilient Connectivity in Nauru (formerly Port Development Project)
Government of Australia US$ 14.08 million
Grant 0566-NAU: Sustainable and Climate Resilient Connectivity in Nauru (formerly Port Development Project)
Green Climate Fund US$ 26.91 million
Grant 0833-NAU: Sustainable and Climate-Resilient Connectivity Project - Additional Financing
Asian Development Fund US$ 15.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Transport / Water transport (non-urban)

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
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
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
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
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
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
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
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
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 0565-NAU

Milestones
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
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
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
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
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
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
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 6005-NAU

Milestones
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
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
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Sustainable and Climate-Resilient Connectivity Project: Audited Project Financial Statements (July 2021-June 2022) Audited Project Financial Statements Dec 2022
Sustainable and Climate-Resilient Connectivity Project: Procurement Plan Procurement Plans Mar 2022
Amendment to Grant Agreement (Special Operations) for Grant 0564-NAU: Sustainable and Climate Resilient Connectivity in Nauru Grant Agreement Nov 2021
Sustainable and Climate-Resilient Connectivity Project: Revised Gender Action Plan Gender Action Plans Oct 2021
Sustainable and Climate-Resilient Connectivity Project: Audited Project Financial Statements (July 2020-June 2021) Audited Project Financial Statements Oct 2021
Sustainable and Climate-Resilient Connectivity Project: Audited Project Financial Statements (July 2019-June 2020) Audited Project Financial Statements Nov 2020
Sustainable and Climate-Resilient Connectivity Project: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Feb 2020
Port Development Project – Project Design Advance: Audited Project Financial Statements (July 2018-June 2019) Audited Project Financial Statements Feb 2020
Amendment to Grant Agreement for Grant 0566-NAU: Sustainable and Climate-Resilient Connectivity Project Grant Agreement May 2019
Amendment to Grant Agreement for Grant 0564-NAU: Sustainable and Climate-Resilient Connectivity Project Grant Agreement May 2019
Amendment to Grant Agreement for Grant 0565-NAU: Sustainable and Climate-Resilient Connectivity Project Grant Agreement May 2019
Grant Agreement (Special Operations) for Grant 0564-NAU: Sustainable and Climate-Resilient Connectivity Project in Nauru Grant Agreement Aug 2018
Grant Agreement (Externally Financed - GCF) for Grant 0566-NAU: Sustainable and Climate-Resilient Connectivity Project in Nauru Grant Agreement Aug 2018
Grant Agreement (Externally Financed - Australia) for Grant 0565-NAU: Sustainable and Climate-Resilient Connectivity Project in Nauru Grant Agreement Aug 2018
Project Agreement for Grants 0564/0565/0566-NAU: Sustainable and Climate-Resilient Connectivity Project in Nauru Project/Program Agreements Aug 2018
Sustainable and Climate-Resilient Connectivity Project: Report and Recommendation of the President Reports and Recommendations of the President Dec 2017
Sustainable and Climate-Resilient Connectivity Project: Project Administration Manual (As of Board Approval) Project/Program Administration Manual Dec 2017
Sustainable and Climate-Resilient Connectivity Project: Gender Action Plan Gender Action Plans Dec 2017
TA 9009-NAU Sustainable and Climate Resilient Connectivity Project (formerly Port Development Project): Final Report (Feasibility Report) Consultants' Reports Dec 2017
Port Development Project: Gender Action Plan Gender Action Plans Apr 2017
Port Development Project: Poverty, Social and Gender Assessment Summary Poverty Reduction and Social Strategies Apr 2017
Port Development Project: Summary Poverty Reduction and Social Strategy Summary Poverty Reduction and Social Strategies Apr 2017
Port Development Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Dec 2015

Safeguard Documents See also: Safeguards
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.

Title Document Type Document Date
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (July-December 2022) Environmental and Social Monitoring Reports May 2023
Sustainable and Climate-Resilient Connectivity Project: Demolition of Residential Buildings Environmental Management Plan Environmental Management Plans Apr 2023
Sustainable and Climate-Resilient Connectivity Project: Fuel Pipeline Updated Safeguards Due Diligence Report Safeguards Due Diligence Reports Dec 2022
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (January-June 2022) Environmental and Social Monitoring Reports Nov 2022
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Jul 2022
Sustainable and Climate-Resilient Connectivity Project: Fuel Pipeline Safeguards Due Diligence Report Safeguards Due Diligence Reports Jun 2022
Sustainable and Climate-Resilient Connectivity Project: Fuel Pipeline Environmental Management Plan Environmental Management Plans Feb 2022
Sustainable and Climate-Resilient Connectivity Project: Vibration Attenuation Updated Environmental Management Plan Environmental Management Plans Jan 2022
Sustainable and Climate-Resilient Connectivity Project: Temporary Relocation Incident Report Safeguards Due Diligence Report Safeguards Due Diligence Reports Jan 2022
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (January-June 2021) Environmental and Social Monitoring Reports Nov 2021
Sustainable and Climate-Resilient Connectivity Project: Addendum 02 to the Relocation Plan Resettlement Plans Oct 2021
Sustainable and Climate-Resilient Connectivity Project: Consultation and Communications Plan Safeguards Due Diligence Report Safeguards Due Diligence Reports Sep 2021
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (Location Investigation) Environmental and Social Monitoring Reports Sep 2021
Sustainable and Climate-Resilient Connectivity Project: Vibration Attenuation Environmental Management Plan Environmental Management Plans Sep 2021
Sustainable and Climate-Resilient Connectivity Project: Addendum to the Relocation Plan Resettlement Plans Sep 2021
Sustainable and Climate-Resilient Connectivity Project: Night Work Environmental Management Plan Environmental Management Plans Aug 2021
Sustainable and Climate-Resilient Connectivity Project: Resettlement Plan Resettlement Plans Jun 2021
Sustainable and Climate-Resilient Connectivity Project: Environmental Management Plan Environmental Management Plans Jun 2021
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Apr 2021
Sustainable and Climate-Resilient Connectivity Project: Aiwo Bridge Strengthening Environmental Management Plan Environmental Management Plans Apr 2021
Sustainable and Climate-Resilient Connectivity Project: Updated Environmental Management Plan Environmental Management Plans Apr 2021
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Dec 2020
Sustainable and Climate-Resilient Connectivity Project: Environmental Management Plan Environmental Management Plans Nov 2020
Sustainable and Climate-Resilient Connectivity Project: Northern Yard Safeguards Due Diligence Report Safeguards Due Diligence Reports Sep 2020
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (July-December 2019) Environmental and Social Monitoring Reports Apr 2020
Sustainable and Climate-Resilient Connectivity Project: Environmental and Social Monitoring Report (January-June 2019) Environmental and Social Monitoring Reports Dec 2019
Port Development Project: Safeguards Due Diligence Report Safeguards Due Diligence Reports Apr 2017
Port Development Project: Initial Environmental Examination Initial Environmental Examination Mar 2017

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

  • 08 Apr 2020 | Article

    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.”
  • 08 Apr 2020 | Project Result / Case Study

    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.
  • 27 Jan 2020 | Video

    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.
  • 21 Oct 2019 | News Release

    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.
  • 29 Jan 2018 | News Release

    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
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$) Contract Amount Financed by ADB (US$)
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
Sustainable and Climate-Resilient Connectivity Project: Procurement Plan Procurement Plans Mar 2022