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 Name||Emergency Assistance for Recovery from Tropical Cyclone Winston|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Public sector management / Social protection initiatives
|Gender Equity and Mainstreaming||No gender elements|
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.|
|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$128 million and more than 37,000 homes were reconstructed under the scheme.
Rehabilitation of schools is continuing with additional funds allocated in the FY2018 budget. All allocated funds have been fully committed.
|Description of Project Outputs||Reconstruction programs, including school rehabilitation and disaster-responsive housing assistance programs adequately financed within fiscal constraints.|
|Status of Implementation Progress (Outputs, Activities, and Issues)||The government has made significant progress with the school rehabilitation program and costs have surpassed initial estimates given that higher standards were applied to build back better. 108 rehabilitated schools are commissioned, while another 26 is expected to be commissioned by end of April 2018. Another 16 schools are in various stages of rehabilitation while rehabilitation work is yet to commence for 2. The government provided additional funds in the FY2018 budget to complete the required rehabilitation work. The school rehabilitation program was ambitious while the domestic construction industry had capacity constraints requiring more time to complete the rehabilitation program.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Singh, Shiu Raj|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Pacific Subregional Office in Suva, Fiji|
Ministry of Economy
Level 5x Ro Lalabalavu House
370 Victoria Parade
|Concept Clearance||01 Jul 2016|
|MRM||20 May 2016|
|Approval||30 Jun 2016|
|Last Review Mission||-|
|Last PDS Update||24 Apr 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|30 Jun 2016||18 Jul 2016||04 Aug 2016||31 Jan 2018||-||28 Mar 2018|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||100.00||Cumulative Contract Awards|
|ADB||50.00||30 Jun 2016||50.00||0.00||100%|
|Cofinancing||50.00||30 Jun 2016||50.00||0.00||100%|
|Status of Covenants|
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|
|Loan Agreement (Ordinary Operations) for Loan 3403-FIJ: Emergency Assistance for Recovery from Tropical Cyclone Winston||Loan Agreement (Ordinary Resources)||Jul 2016|
|Emergency Assistance for Recovery from Tropical Cyclone Winston: Report and Recommendation of the President||Reports and Recommendations of the President||Jun 2016|
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.
None currently available.
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
Making Fiji's Schools Safe from Natural DisastersADB provided Fiji with a $50 million loan in the aftermath of Cyclone Winston in 2016, which was used primarily to build back better 495 schools.
ADB Provides $50 Million For Fiji Cyclone ReliefADB will provide a $50 million emergency assistance loan to the Government of Fiji for short-term financing of disaster recovery reconstruction programs, including school rehabilitation and housing assistance.
No tenders for this project were found.
|Contract Title||Approval Number||Contract Date||Contractor||Contractor Address||Executing Agency||Contract Description||Total Contract Amount (US$)||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|
None currently available.