Cook Islands : Supporting Safe Recovery of Travel and Tourism

Public sector management / Economic affairs management

The goal of the proposal is to increase Cook Islands economic resilience through a safe recovery of travel and tourism in Cook Islands and the key objective is to strengthen the capacity and readiness of Cook Islands to safely open its borders to support a safe travel zone with New Zealand.

In preparation for the safe opening of the Cook Islands borders, government requested ADB grant funding to support targeted activities for a safe travel zone between Cook Islands and New Zealand.

The Cook Islands, a tourism dependent economy has been severely affected due to a halt in visitors' arrivals, as a result of closing of borders due to the COVID-19 pandemic. The closing of borders on March 21, 2020, resulted in contractions to GDP growth estimated at -5.9% for FY2020. Further delays in the travel bubble will result in a contraction 26% of GDP in FY2021, ending June 2021.

The government and stakeholders have been able to progress certain preparatory work, but gaps remain on airport readiness, health facility readiness, testing capacity and contact tracing. Stakeholders agree that these are areas that would be useful for ADB through the Japan Fund for Poverty Reduction (JFPR) to coordinate with government and support.

Cook Islands as a dynamic, resilient, prosperous, environmentally sustainable and inclusive economy sustaining quality of life for its citizens.

Cook Islands readiness for safe recovery of travel and tourism improved.

Airport and border readiness improved.

Health readiness improved.

1. RFQ for Airport civil works released 12 Oct 2022 and due 25 Oct 2022.2. Revisions to the RFQ on costings and scope to be discussed with stakeholders then relisted by Q3 2023.1. RFQ for civil works to be finalized by end of October 2022 for submission to ADB for clearance.2. Contract awarded in March 2023 and works commenced April 2023.3. Processing of proposed contract variation to include furniture and data/network cabling is ongoing.4. Works scheduled for completion on 4 August 2023.1. RFQ for medical equipment closed on 13 September 2022 and bid evaluation report due to ADB by end of October 2022. Contract award expected mid of November 2022.2. RFQ was relisted in December however due to non-conformance, the package is to undergo revision of technical specifications and relisted.3. RFQ was relisted in April 2023 and BER is being finalized. CA expected August 2023.

Q3 2023 Update:

Output 1: Airport readiness:

1.Tender was put on hold to secure additional financing to better support this package. The additional financing was approved in principle to be processed before the funding window lapsed December 2024.

Output 2: Health systems readiness:

1. Package JFPR03: Tupapa Health Facility Upgrade Around 90% of civil works completed.

2. Package JFPR01: Installation and Procurement of Medical Waste System ADB no-objection issued 7 September 2023. Contract award to be finalized and awarded in Q3/4.

Procurement of goods and works under the project will be undertaken in accordance with

the ADB's Procurement Policy (2017, as amended from time to time), Procurement Regulations

for ADB Borrowers (2017, as amended from time to time) and associated Staff Instructions. A

strategic procurement planning exercise has been undertaken to choose the optimal procurement

arrangements. The project will achieve the value for money by (i) using e-procurement technology

to lower the transaction cost and enhance process efficiency and transparency; and (ii) attracting

qualified contractors and suppliers for two works and one goods package following open

competitive bidding.