Tonga : Nuku'alofa Port Upgrade Project

Sovereign Project | 53045-003

The project will upgrade the Nukualofa port, rehabilitate, renew and expand the existing infrastructure and improve the management and operations practices. The project outputs will result in the following outcome: capacity and operations of the Nukualofa Port improved. The project will be aligned with the following impact: safer, more reliable, and more affordable transport infrastructure and services in Tonga.

Project Details

Related Projects

Project Name Nuku'alofa Port Upgrade Project
Project Number 53045-003
Country / Economy Tonga
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0774-TON: Nuku'alofa Port Upgrade Project
Asian Development Fund US$ 45.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Transport / Transport policies and institutional development - Water transport (non-urban)
Gender Effective gender mainstreaming
Description The project will upgrade the Nukualofa port, rehabilitate, renew and expand the existing infrastructure and improve the management and operations practices. The project outputs will result in the following outcome: capacity and operations of the Nukualofa Port improved. The project will be aligned with the following impact: safer, more reliable, and more affordable transport infrastructure and services in Tonga.
Project Rationale and Linkage to Country/Regional Strategy The development goals of Tonga include safer, more reliable, and more affordable transport infrastructure and services, as presented in the Tonga Strategic Development Framework, 2015 to 2025. The National Infrastructure Investment Plan, 2013 to 2023 outlines the vision for the development of the infrastructure sector; the plan prioritizes the improvement of maritime infrastructure to cope with increased demand and the impact of climate change and disasters. The proposed project is aligned with the Pacific Approach, 2016 to 2020 in reducing costs by improving regional connectivity through transport infrastructure, managing risks, and enabling value creation. ADBs Strategy 2030 also expands the focus on small island developing states to strengthen connectivity, access, and institutional capacity, while tackling climate change impacts and disaster risks.
Impact

Safer, more reliable, and more affordable transport infrastructure and services provided in Tonga (Tonga Strategic Development Framework, 20152025)
Project Outcome
Description of Outcome

Capacity and operations of Nuku'alofa Port improved.
Progress Toward Outcome Procurement support for the project is ongoing.
Implementation Progress
Description of Project Outputs

Port infrastructure rehabilitated

International cargo docks and supporting infrastructure extended

Port operations and management improved
Status of Implementation Progress (Outputs, Activities, and Issues) The contracts for civil works, consulting supervision firm and PMU consultants have been awarded. A review mission has been fielded in March 2023.
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The initial environmental examination (IEE) demonstrates that impacts on the physical, biological and socio-economic environment will be minor, few, if any are irreversible, and most can be managed through good practice during both construction and operation along with implementation of the projects environmental management plan (EMP) detailed in the IEE. Short-term impacts are anticipated during construction. A sediment plume analysis demonstrates that any impacts from turbidity will be localized and insignificant. The ADB will ensure the Safeguard Policy Statement as well as country safeguards are complied with.
Involuntary Resettlement The port upgrade will occur on existing facilities located on government-owned land. The land is leased by the Port Authority of Tonga (PAT). There is no expected involuntary resettlement impacts, and this will be verified by a social safeguards specialist.
Indigenous Peoples The project will not impact any distinct and vulnerable group of Indigenous Peoples as defined under ADB's Safeguard Policy Statement. The project is limited to port upgrading civil works within existing port facilities located in the capital of Tonga and some capacity building activities with employees of the Port Authority of Tonga.
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders will be the Government (Ministry of Finance and National Planning, and the Ministry of Infrastructure), PAT workers, contractors and suppliers to PAT, importers and exporters, shipping companies and agencies, domestic market retailers, the general public and development partners. The key stakeholders from the Government and PAT will form the Project Management Unit (PMU) and will oversee the preparation and delivery of the project. The business community and general public will take part in consultation process regarding the project design.
During Project Implementation The Government and PAT staff will be engaged in all aspects of the project through its investigation, design and implementation stages. Community consultation will also be undertaken during project implementation.
Business Opportunities
Consulting Services

ADB approved in July 2019 a Project Readiness Financing (PRF) grant to prepare engineering designs, update due diligence, and procurement support. A consulting firm (Haskoning DHV Nederland B.V.) was recruited under the PRF to undertake these activities. The PRF also supported the strengthening of the governments capacity on project preparation with the establishment in September 2019 of a Project Management Unit (PMU) under the Ministry of Infrastructure.

These contracts included provisions that subject to the satisfactory performance of the consultants, the Government may single source the consultants for further downstream assignments. Considering this, the same consultancy (Haskoning DHV Nederland B.V.) was directly engaged for construction supervision services of the port upgrade civil works.
Procurement The project includes a single civil works contract comprising all marine and land side works. The procurement method has been open competitive bidding (internationally advertised) with prequalification, using merit-point based criteria. McConnell Dowell has been procured by the Government to undertake the civil works.
Responsible ADB Officer Shim, Cha-Sang
Responsible ADB Department Sectors Group
Responsible ADB Division Transport Sector Office (SG-TRA)
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 05 May 2020
Fact Finding 04 May 2020 to 14 May 2020
MRM 08 Jul 2020
Approval 03 Dec 2020
Last Review Mission -
Last PDS Update 03 May 2023

Grant 0774-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Dec 2020 12 Jan 2021 22 Jan 2021 31 Dec 2026 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 45.00 23 Oct 2023 42.67 0.00 95%
Counterpart 5.00 Cumulative Disbursements
Cofinancing 0.00 23 Oct 2023 29.70 0.00 66%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - - - Unsatisfactory

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
Nuku'alofa Port Upgrade Project: Audited Project Financial Statements (22 January 2021-30 June 2023) Audited Project Financial Statements Sep 2023
Nuku’alofa Port Upgrade Project: Procurement Plan Procurement Plans May 2023
Grant Agreement (Special Operations) for Grant 0774-TON: Nuku’alofa Port Upgrade Project Grant Agreement Jan 2021
Nuku’alofa Port Upgrade Project: Gender Action Plan Gender Action Plans Nov 2020
Nuku’alofa Port Upgrade Project: Project Administration Manual Project/Program Administration Manual Nov 2020
Nuku’alofa Port Upgrade Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2020
Nuku’alofa Port Upgrade Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis May 2020

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
Nuku'alofa Port Upgrade Project: Environmental and Social Monitoring Report (July-December 2022) Environmental and Social Monitoring Reports Feb 2023
Nuku'alofa Port Upgrade Project: Environmental and Social Monitoring Report (January-June 2022) Environmental and Social Monitoring Reports Oct 2022
Nuku’alofa Port Upgrade Project: Updated Initial Environmental Examination Initial Environmental Examination Oct 2020
Nuku’alofa Port Upgrade Project: Social Safeguards Due Diligence Report Safeguards Due Diligence Reports Jun 2020
Nuku’alofa Port Upgrade Project: Initial Environmental Examination Initial Environmental Examination Jun 2020

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.

Tenders

Tender Title Type Status Posting Date Deadline
TON (53045-003): Nuku’alofa Port Upgrade Project (CW-1) Invitation for prequalification Closed
Nuku’alofa Port Upgrade Project Advance Notice Active

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Management and Construction Supervision Grant 0774 09 Sep 2022 HaskoningDHV Nederland B.V. | 99 Mount St., North Sydney Ministry of Finance 2,002,999.75 —

Procurement Plan

Title Document Type Document Date
Nuku’alofa Port Upgrade Project: Procurement Plan Procurement Plans May 2023