Tuvalu : Outer Island Maritime Infrastructure Project

Transport / Water transport (non-urban)

Regional context. Tuvalu is categorized as a fragile and conflict-affected situation and is one of the smallest and most remote ADB member countries. The country is home to 11,646 people. Tuvalu is more than 1,100 kilometers from Fiji and more than 3,000 kilometers from Australia or New Zealand. About 60% of the population is based in Funafuti (the capital), with the remaining people spread among eight outer islands. Given its archipelagic nature, the country's economy and people primarily rely on maritime transport to access goods and essential social services. The outer islands, from north to south, are Nanumea, Niutao, Nanumaga, Nui, Vaitupu, Nukufetau, Nukulaelae, and Nuilakita.

Need for harbors in the outer islands. The government runs a shipping service to facilitate the movement of people and cargo between the islands. However, no outer island has a harbor for the government ships, and small workboats need to ferry people and cargo between the ship and the shore. This is dangerous when the sea is rough, and workboats need to pass through channels that can be too shallow during low tide. Except for Nanumea, Nukufetau, and Vaitupu, no other outer island has a harbor for the workboats. Serious accidents have occurred during passenger transfers and navigation through channels, resulting in fatalities and economic losses.

Original project. On 16 November 2016, ADB approved a grant for $11.8 million to finance the Outer Island Maritime Infrastructure Project (the original project), which is (i) constructing a workboat harbor in Nukulaelae and rehabilitating boat ramps at Nanumaga and Niutao, (ii) improving the capacity to operate and maintain harbors, and (iii) creating a transport sector master plan for future harbor development in the outer islands. Previously, ADB provided a project design advance grant for the detailed engineering design, procurement assistance, and project management.3 The project progressed satisfactorily but incurred cost overruns because of foreign currency exchange rate fluctuation and contract variations for the works contract under the project. In parallel, the government requested ADB continued scaling up of the project outputs and construction of additional workboat harbors.

First additional financing. The government requested ADB and the World Bank to assist in the construction of further workboat harbors in additional outer islands of Tuvalu. On 13 September 2018, ADB approved additional financing to the original project for $15.4 million to cover cost overruns of the original project and scale up the project outputs with the construction of a workboat harbor in Niutao.4 The World Bank provided parallel cofinancing assistance to construct a workboat harbor in Nanumaga under the Maritime Investment in Climate-Resilient Operations Project.

Second additional financing. The government has requested from ADB a second additional financing to continue scaling up output 1 of the ongoing project by constructing a workboat harbor in the remaining island of Nui, with a population of 610 people (2017). This is highly relevant as, with ADB and World Bank assistance, all of Tuvalu's outer islands except for Nuilakita (with a population of about 30 people) will have a workboat harbor.

Feasibility of second additional financing. The second additional financing is feasible given that (i) the project management capacity of the government is strengthened with the PMU established under the project design advance facility, which continues to operate for the ongoing project (footnote 3); (ii) the government has demonstrated sufficient financial management capacity with financial statements duly submitted and approved; and (iii) the institutional strengthening plan ensures the asset sustainability. These measures contribute to the feasibility of the project and will allow its timely implementation and sustainability.

Suitability of second additional financing. The proposed project is suitable for additional financing since the impact remains unchanged. It (i) scales up the original outputs and outcome, extending them to an additional island; (ii) builds upon the due diligence of the ongoing project, with similar environmental and social safeguards impacts; and (iii) brings efficiency gains using the same PMU and implementation arrangements.

Alignment with strategic priorities. The National Strategy for Sustainable Development, 20162020 (Te Kakeega III) sets out the government's vision to make maritime transport more efficient and safe. Te Kakeega III identifies that the outer islands that are in most need of workboat harbors are Niutao, Nanumaga, Nui, and Nukulaelae. ADB's Strategy 2030 expands the focus on small island developing states to strengthen connectivity, access, and institutional capacity while tackling climate change impacts and disaster risks. The second additional financing is aligned with the strategic priorities of (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) building resilience to disasters and climate change; (iv) promoting rural development via improving connectivity and accessibility of isolated populations; and (v) strengthening governance and institutional capacity.

Safe and efficient domestic maritime transportation that helps increase climate resilience of community infrastructure

Maritime transfer operations in Nanumaga, Nui, Niutao, and Nukulaelae improved, anchored on a transport master plan, with a view to promoting fisheries and tourism

Small-scale harbors constructed in Nui, Nukulaelae and Niutao, and boat ramps of Nanumaga and Niutao rehabilitated

Capacity to operate and maintain harbors improved, involving outer island communities, the Ministry of Transport, Energy and Tourism, and other national government agencies.

A transport sector master plan for future harbor development in the outer islands created, with a view to promote fisheries and tourism

A combination of bad weather, poor performance of the contractor and issues with the subcontractor has caused the delay. The contractor was the only bidder that submitted a confirming proposal within the budget, and the government and ADB have agreed not to terminate this contract but monitor closely the progress and quality of construction. To date an extension to contract completion date will be requested by the government together with a request for additional contract amount to cover cost of increase in the harbor structure levels of up to 0.7 meter. This was because of lack of devices to measure tidal levels in the island during design stage.

This is dependent on the boat harbor completion.

This is dependent on the boat harbor completion.

This is dependent on the boat harbor completion.

This is dependent on the boat harbor completion.