Vanuatu: Transport Sector Projects Preparatory Financing

Sovereign (Public) Project | 54073-001

The proposed project readiness financing (PRF) will support the government in preparing feasibilities, engineering designs, surveys, procurement and other start-up activities of ensuing projects. The PRF is aligned with (i) Vanuatu 2030, which identifies equitable and affordable access to efficient transport by air, land, and sea in urban and rural areas as a priority; (ii) goal 3 of the Ministry of Infrastructure and Public Utilities (MIPU) Corporate Plan, which calls for infrastructure networks and operations that serve people safely, securely, and efficiently; and (iii) the MIPU's Public Road Policy 2019 by building a sustainable and efficient core road network. The PRF is included in ADB's country operations business plan for 11 small Pacific Island countries, 2021-2023; and is aligned with the Pacific Approach, 2021 2025.

Project Details

  • Project Officer
    Haider, Syed Hussain
    Pacific Department
    Request for information
  • Approval Date
    31 August 2021
  • Country
    Vanuatu
  • Sector
    • Transport
Project Name Transport Sector Projects Preparatory Financing
Project Number 54073-001
Country Vanuatu
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 6035-VAN: Transport Sector Projects Preparatory Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 5.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport / Road transport (non-urban) - Transport policies and institutional development - Water transport (non-urban)

Gender Equity and Mainstreaming
Description The proposed project readiness financing (PRF) will support the government in preparing feasibilities, engineering designs, surveys, procurement and other start-up activities of ensuing projects. The PRF is aligned with (i) Vanuatu 2030, which identifies equitable and affordable access to efficient transport by air, land, and sea in urban and rural areas as a priority; (ii) goal 3 of the Ministry of Infrastructure and Public Utilities (MIPU) Corporate Plan, which calls for infrastructure networks and operations that serve people safely, securely, and efficiently; and (iii) the MIPU's Public Road Policy 2019 by building a sustainable and efficient core road network. The PRF is included in ADB's country operations business plan for 11 small Pacific Island countries, 2021-2023; and is aligned with the Pacific Approach, 2021 2025. The PRF will pursue three operational priorities of Strategy 2030: (i) addressing remaining poverty and reducing inequalities, (ii) promoting rural development and food security, and (iii) strengthening governance and institutional capacity. It will aim to achieve these operational priorities by (i) improving sea, land, and air linkages to better connect markets and improve social cohesion and (ii) carrying out institutional strengthening by developing a transport sector investment plan and institutional capacity.
Project Rationale and Linkage to Country/Regional Strategy

Vanuatu is a group of 80 islands with a population of 301,695 as of 2020. The distance from the southernmost to the northernmost islands is more than 800 kilometers. It ranked 141 out of 189 economies according to the United Nations Development Programme's 2020 Human Development Report. Vanuatu is vulnerable to natural hazards and global economic shocks. According to the WorldRiskIndex 2019, Vanuatu was the most at risk from natural hazards among 180 economies worldwide.

About 75% of the population lives in rural areas with no significant urban services. Vanuatu's economy is founded largely on agriculture and services. Agriculture, fisheries, and forestry account for about 23% of gross domestic product (GDP); industry for 11% of GDP; and the service sector for nearly 66% of GDP and 23% of employment. The service sector relates primarily to tourism, making it important to develop air, land, and sea services to improve linkages within the country and for social cohesion. Most residents live in rural areas and rely on agricultural production for their subsistence and for generating cash incomes. The Government of Vanuatu aims to integrate more people across Vanuatu into the growing national economy to better distribute the benefits of economic growth and to strengthen local human resource inputs in that growth.

Vanuatu continues to face severe economic impacts from two large simultaneous shocks: the coronavirus disease (COVID-19) pandemic and Tropical Cyclone Harold who hit the country in April 2020. Tropical Cyclone Harold was the most severe storm to strike Vanuatu since Tropical Cyclone Pam in 2015. It impacted 129,029 people which equates to approximately 43 percent of the population. A total of 21,086 houses were damaged to some extent, with 5,272 completely destroyed. Among the groups most affected are people with disabilities and female-headed households. While Vanuatu does not have any cases of COVID-19, this has been achieved at the cost of closing its international borders. This has devastated Vanuatu's tourism sector, which accounts for a quarter of the economy. However, economic losses from COVID-19 will likely reach well beyond this, given that border closures continue to restrict international tourism. Recovery in tourism and agriculture combined with further ramping-up of infrastructure projects to rebuild Vanuatu is expected to propel GDP growth to 2% in 2021 and 4% in 2022.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
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 Haider, Syed Hussain
Responsible ADB Department Pacific Department
Responsible ADB Division PATC
Executing Agencies
Ministry of Finance & Economic Management
Director General
P.M.B. 058 Port Vila Vanuatu
Ministry of Finance & Economic Management
P.M.B. 058
Port Vila
Vanuatu
Timetable
Concept Clearance -
Fact Finding 17 Jun 2020 to 22 Jun 2020
MRM -
Approval 31 Aug 2021
Last Review Mission -
Last PDS Update 31 Aug 2021

Grant 6035-VAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Aug 2021 - - 31 Dec 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.23 Cumulative Contract Awards
ADB 5.00 17 Sep 2021 0.00 0.00 0%
Counterpart 0.23 Cumulative Disbursements
Cofinancing 0.00 17 Sep 2021 0.00 0.00 0%

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.


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.


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
Vanuatu - Outer Islands Roads and Maritime Project (OIRMP) Domestic Wharfs and Roads’ Construction/Upgrading Firm - Consulting Closed 26 Jan 2021 22 Feb 2021

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan