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Fiji: Emergency Assistance for Recovery from Tropical Cyclone Winston

Sovereign (Public) Project | 50181-001 Status: Closed

The emergency assistance loan (EAL) provides $50 million to assist the government finance additional disaster-related recovery expenditures in the FY2017 budget. The government requested ADB financing primarily to assist with reconstructing and building back better 495 schools that were damaged by Tropical Cyclone Winston. Of this total, 219 schools have been extensively damaged and government anticipates being able to rehabilitate approximately 60% of these during FY2017. All new buildings will be required to adhere to stringent standards to maximize their ability to withstand natural disasters. In addition government proposes to use a significant portion of the loan to finance expenditures for the Help for Homes program. This follows a request by the government to both ADB and the World Bank on 11 April 2016 for fast-disbursing emergency finance.

Project Details

Project Officer
Singh, Shiu Raj Pacific Department Request for information
Country
  • Fiji
Modality
  • Loan
Sector
  • Public sector management
 
Project Name Emergency Assistance for Recovery from Tropical Cyclone Winston
Project Number 50181-001
Country Fiji
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3403-FIJ: Emergency Assistance for Recovery from Tropical Cyclone Winston
Ordinary capital resources US$ 50.00 million
Loan: Emergency Assistance for Recovery from Tropical Cyclone Winston
World Bank US$ 50.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Public sector management / Social protection initiatives

Gender Equity and Mainstreaming No gender elements
Description

The emergency assistance loan (EAL) provides $50 million to assist the government finance additional disaster-related recovery expenditures in the FY2017 budget. The government requested ADB financing primarily to assist with reconstructing and building back better 495 schools that were damaged by Tropical Cyclone Winston. Of this total, 219 schools have been extensively damaged and government anticipates being able to rehabilitate approximately 60% of these during FY2017. All new buildings will be required to adhere to stringent standards to maximize their ability to withstand natural disasters. In addition government proposes to use a significant portion of the loan to finance expenditures for the Help for Homes program. This follows a request by the government to both ADB and the World Bank on 11 April 2016 for fast-disbursing emergency finance. In preparing this operation, ADB has worked closely with the World Bank, which will seek Board approval for $50 million of financing for its policy-based operation on 30 June 2016.

The EAL complements other support that ADB has provided following Tropical Cyclone Winston, including a $2 million grant from ADB's Asia Pacific Disaster Response Fund. The grant agreement was signed by the vice-president of Operations 2 during a visit to Fiji on 28 February 2016 and was disbursed on 29 February 2016. ADB also mobilized $0.3 million from the Pacific Regional Infrastructure Facility to bring a team from Tonga Power (with which ADB worked previously on cyclone reconstruction in Tonga) to assist the Fiji Electricity Authority restore power lines. ADB is exploring possibilities for financing from the Japan Fund for Poverty Reduction to support the recovery effort.

Project Rationale and Linkage to Country/Regional Strategy

Tropical Cyclone Winston, the second most powerful storm on record (after Typhoon Yolanda in the Philippines in 2013), struck Fiji on 20 February 2016. The cyclone killed 44 people and left a trail of destruction across large parts of Fiji. As many as 540,000 people (62% of the population) were affected by the disaster. An estimated 30,369 houses (22% of households) were destroyed or damaged, leaving approximately 131,000 people residing in temporary shelters or under tarpaulins. The cyclone damaged 495 schools and 88 health facilities, disrupted basic public services (power, water, and communications), and destroyed food crops and livelihoods.

Total damage and loss is estimated to be $1.42 billion equivalent to 31% of gross domestic product (GDP). This is based on the post-disaster needs assessment (PDNA) jointly prepared by the government and development partners. Among the social and productive sectors, damage and loss was especially concentrated in the housing, education, and agriculture sectorsTropical Cyclone Winston will adversely affect Fiji's medium-term fiscal position and the government's capacity to implement planned fiscal consolidation measures. The government had been anticipating reducing expenditure by approximately 1.5% of GDP between 2015 and 2018, after significant expansions between 2011 and 2014 to provide free primary education and improve road infrastructure and water supply.2 However, the need for significant recovery and reconstruction spending will lead to further fiscal pressures in 2016 and 2017. Following the cyclone, the government immediately re prioritized spending to meet emergency and early recovery needs. As a result, the fiscal deficit is expected to increase to 6.4% of GDP in 2016 (from 5.1% prior to Tropical Cyclone Winston).3 As the recovery spending winds down, the deficit is forecast to moderate to 5.0% in 2017 before declining to 2.9% in 2018 as fiscal consolidation gets under way.

As a result of Tropical Cyclone Winston, GDP growth in 2016 fell to 0.4 percentage points (Table 2). Initial estimates for the impact on GDP were that Tropical Cyclone Winston would cut economic growth by 2.5% in 2016. However, immediate relief efforts which included the Fiji National Provident Fund permitting members to withdraw up to $2,400 of their savings to help meet housing recovery needs, and the government's supplemental funding for social protection programs provided a boost to consumer spending and to GDP overall. With recovery and reconstruction activity already under way, the economy is expected to grow by 3.6% in 2017 and 3.2% in 2018.

An EAL is considered to be the appropriate response instrument. It is consistent with ADB's overall engagement with Fiji as set out in ADB's country partnership strategy, 2014 -2018 approved by the ADB Board of Directors in November 2014.

Impact The impact of the EAL will be disaster resilience enhanced.
Project Outcome
Description of Outcome Immediate impact of Tropical Cyclone Winston on poor and vulnerable households mitigated.
Progress Toward Outcome

The loan has been fully disbursed.

The government had increased transfers to all the destitute and social pension beneficiaries to assist families recover from the impact of Cyclone Winston.

The Help for Home Program has been implemented. The government spent F$128 million and more than 37,000 homes were reconstructed under the scheme.

Rehabilitation of schools is continuing with additional funds allocated in the FY2018 budget. All allocated funds have been fully committed.

Implementation Progress
Description of Project Outputs Reconstruction programs, including school rehabilitation and disaster-responsive housing assistance programs adequately financed within fiscal constraints.
Status of Implementation Progress (Outputs, Activities, and Issues) The government has made significant progress with the school rehabilitation program and costs have surpassed initial estimates given that higher standards were applied to build back better. 108 rehabilitated schools are commissioned, while another 26 is expected to be commissioned by end of April 2018. Another 16 schools are in various stages of rehabilitation while rehabilitation work is yet to commence for 2. The government provided additional funds in the FY2018 budget to complete the required rehabilitation work. The school rehabilitation program was ambitious while the domestic construction industry had capacity constraints requiring more time to complete the rehabilitation program.
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Singh, Shiu Raj
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Economy
Level 5x Ro Lalabalavu House
370 Victoria Parade
Suva, Fiji
Timetable
Concept Clearance 01 Jul 2016
Fact Finding -
MRM 20 May 2016
Approval 30 Jun 2016
Last Review Mission -
Last PDS Update 24 Apr 2018

Loan 3403-FIJ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jun 2016 18 Jul 2016 04 Aug 2016 31 Jan 2018 - 28 Mar 2018
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 100.00 Cumulative Contract Awards
ADB 50.00 30 Jun 2016 50.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 50.00 30 Jun 2016 50.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - 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.

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Safeguard Documents See also: Safeguards

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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Tenders

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CSTB 3532 Pangia-Wiru Loop Improvement Works Loan 3403 27 Apr 2017 Ministry of Economy Suva Fiji Fiji, Republic Of Ministry of Economy Others 50,000,000.00 50,000,000.00

Procurement Plan

None currently available.