Tuvalu: Strengthening Domestic Shipping Project

Sovereign Project | 54463-001

The project will replace the existing passenger and cargo ship Manu Folau, which is in an unserviceable state, with a reliable and safe ship. It will (i) help ensure safe and efficient transfer of people and goods; (ii) promote economic development, including through increased intra-regional cross-border trade; and (iii) help improve people's livelihoods in the outer islands of Tuvalu, its capital, and neighboring countries (Fiji and Kiribati). The project will also rehabilitate port auxiliary infrastructure (fenders) and build the operation and maintenance capacity of the Ministry of Transport, Energy and Tourism to ensure the sustainability of the investment.

Project Details

  • Project Officer
    Gonzalez Jimenez, Juan Francisco
    Pacific Department
    Request for information
  • Country/Economy
    Tuvalu
  • Sector
    • Transport
Project Name Strengthening Domestic Shipping Project
Project Number 54463-001
Country / Economy Tuvalu
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0849-TUV: Strengthening Domestic Shipping Project
Asian Development Fund US$ 30.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development / Rural market infrastructure

Transport / Water transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will replace the existing passenger and cargo ship Manu Folau, which is in an unserviceable state, with a reliable and safe ship. It will (i) help ensure safe and efficient transfer of people and goods; (ii) promote economic development, including through increased intra-regional cross-border trade; and (iii) help improve people's livelihoods in the outer islands of Tuvalu, its capital, and neighboring countries (Fiji and Kiribati). The project will also rehabilitate port auxiliary infrastructure (fenders) and build the operation and maintenance capacity of the Ministry of Transport, Energy and Tourism to ensure the sustainability of the investment.
Project Rationale and Linkage to Country/Regional Strategy

Tuvalu is categorized a fragile and conflict-affected situation and is one of the smallest and most remote Asian Development Bank (ADB) member countries. The country is home to 10,679 people._Tuvalu is more than 1,100 kilometers from Fiji. About 60% of the population is based in Funafuti (the capital), with the remainder spread among eight outer islands. Given its small land mass, archipelagic nature, and dispersed geography of distant atolls and the distance between them and key markets, the country's economy and people primarily rely on the sea and maritime transport to trade and access goods and essential services.

The only means of transport between Funafuti and the outer islands is by sea. The nearest island is 64 nautical miles from Funafuti while the farthest is 247 nautical miles away. Such distances are significant in terms of the type of ships needed to operate safely in the open ocean conditions that prevail in these latitudes, with long durations of voyages (up to several days) and high operating costs. The impacts of climate change affect ship operations in terms of adaptation, as rising sea levels limit the ability of passengers and cargo to access ships; and mitigation, given the need to reduce greenhouse gas emissions through lower ship emissions. Disasters triggered by natural hazards also affect shipping safety, as hostile conditions (high winds and large waves) cause safety issues for passengers and maritime structures.

Impact

Safe and efficient maritime transportation that helps increase climate and disaster resilience promoted

Project Outcome
Description of Outcome

Connectivity of Tuvalu's outer islands and intra-regional locations improved

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Existing passenger and cargo ship replaced

Port auxiliary infrastructure (fenders) rehabilitated

Operation and maintenance capacity strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as category B for environment. The provision of a new passenger and cargo ship to replace the Manu Folau along with associated fender improvements in Funafuti wharf will create site-specific risks and impacts of low significance, largely during the construction stage, and which can be mitigated through design and implementation of management measures contained in the environmental and social management plan. A preliminary environmental assessment report has been prepared, and once cleared by the ADB, in line with Tuvalu's country safeguard system requirements, an application for project clearance will be made under the Environmental Protection Act 2008. The fender installation component of the project does not trigger a requirement for application for development consent under the country safeguard system.
Involuntary Resettlement The project does not require any land or new land use. It has no land ownership, land acquisition, or resettlement issues; and will not need to enter into any lease arrangements. Therefore, the project will have no involuntary resettlement impacts as no individuals will be physically displaced from their homes or lose 10% or more of their productive (income-generating) assets.
Indigenous Peoples The project will not affect any distinct and vulnerable group of indigenous peoples, as defined under the Safeguard Policy Statement. The majority (94%) of the population of Tuvalu (10,679) is Polynesian. None are considered distinct and vulnerable indigenous peoples (as defined in the Safeguard Policy Statement). Activities under the project will be implemented in a culturally appropriate and participatory manner.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Gonzalez Jimenez, Juan Francisco
Responsible ADB Department Pacific Department
Responsible ADB Division PATC
Executing Agencies
Ministry of Finance
Timetable
Concept Clearance 02 Mar 2021
Fact Finding 14 Mar 2022 to 16 Mar 2022
MRM 31 May 2022
Approval 15 Sep 2022
Last Review Mission -
Last PDS Update 15 Sep 2022

Grant 0849-TUV

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Sep 2022 03 Oct 2022 02 Nov 2022 31 Mar 2030 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 33.00 Cumulative Contract Awards
ADB 30.00 10 Nov 2022 0.00 0.00 0%
Counterpart 3.00 Cumulative Disbursements
Cofinancing 0.00 10 Nov 2022 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.

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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.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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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.

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Tenders

No tenders for this project were found.


Contracts Awarded

No contracts awarded for this project were found


Procurement Plan