The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 30-May-2022 | Report No: PIDC33714 Dec 17, 2021 Page 1 of 7 The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Marshall Islands P178544 Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P1 Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EAST ASIA AND PACIFIC Nov 14, 2022 May 23, 2023 Environment, Natural Resources & the Blue Economy Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance, Banking Marshall Islands Marine and Postal Services. Resources Authority Proposed Development Objective(s) The Development Objective of the Series of Projects is to strengthen the shared management of selected Pacific Island oceanic and coastal fisheries, and the critical habitats upon which they depend. For the Republic of Marshall Islands second phase’s project (“RMI PROPER�), the proposed Project Development Objective (PDO) is to strengthen regional collaboration and national capacity for the management and the sustainable development of the oceanic and coastal fisheries sector in the Marshall Islands. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 12.00 Total Financing 12.00 of which IBRD/IDA 12.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Dec 17, 2021 Page 2 of 7 The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) World Bank Group Financing International Development Association (IDA) 12.00 IDA Grant 12.00 Environmental and Social Risk Classification Concept Review Decision Moderate Track II-The review did authorize the preparation to continue Other Decision (as needed) B. Introduction and Context Country Context 1. The Western and Central Pacific Ocean (WCPO) region covers 11 percent of the world’s ocean and is home to 22 small island countries and territories, and the geography of the Pacific Island Countries (PICs) creates common challenges and opportunities. The PICs are small, with limited natural resources and narrowly based economies, and are distant from major markets. They are also vulnerable to external economic and environmental shocks, such as the coronavirus disease (COVID-19) pandemic and has a high concentration of fragile states. 2. The Republic of the Marshall Islands (RMI) is one of the world’s smallest, most isolated, and vulnerable nations. It’s made up of 29 coral atolls, five isolated islands (24 of which are inhabited) and has a total land mass of 181 square kilometers (km²) in the WCPO, with an exclusive economic zone (EEZ) of about 2 million (M) km². RMI is a middle-income country with Gross National Income of US$4,838 per capita. 3. The poverty headcount is estimated at 7.2 percent of the population based on the 2019-2020 Household Income and Expenditure Survey. About 70 percent of poor households live in rural areas with the remaining spread evenly between Majuro and Ebeye. The poverty rate is consequently lowest in Majuro (2.3 percent of individuals) and highest in rural areas (21.2 percent). 4. RMI is considered as a fragility, conflict and/or violence affected (FCV) country because of inadequate state capacity and constant vulnerability to external shocks. The fragility stems from the geography and limited economic viability, youth unemployment, poor land governance, and gender-based violence. 5. RMI is facing increasing exposure and extreme vulnerability to the impacts of climate-change. These impacts are further exacerbated by very high population density, particularly in Ebeye and Majuro. As a result, RMI ecosystems would face extreme pressure, with potential loss of marine and terrestrial species in absence of effective conservation measures. Because of the anticipated increasing exposure to induced hazards and associated longer-term impacts, the government has indicated that transformational adaptation and resilience measures are required for the country to survive. Dec 17, 2021 Page 3 of 7 The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) Sectoral and Institutional Context 6. Within the PICs, fisheries underpin the revenue source of their economy and are vital for food, nutrition, and livelihoods, and all fisheries activities in the region are likely to be affected by climate change. The well-being of island populations across the region depends on fish stocks productivity and local, regional, and national capacities to manage them sustainably. WCPO tuna fisheries account for more than half of global catch, representing a major source of revenue and foreign exchange,1 while coastal fisheries are essential for population wellbeing, therefore fisheries management is key to maintain those benefits. 7. Coastal fisheries on the other hand, provide 50-90 percent of animal protein in the diet of Pacific islanders, and the first or second source of income for 50 percent of coastal households. The wellbeing of PICs’ populations depends on coastal fisheries productivity, and national and local capacities to manage them effectively while promoting alternative sources of livelihoods to reduce pressure on fish stocks. For both oceanic and coastal fisheries, anticipating and adapting to climate change impacts on fisheries resources and habitats will be essential to sustain socio-economic benefits, and management remains the best approach to build fish resource and fisheries resilience 8. Marine resources are one of the most precious natural resources of RMI. The tuna fishery has become an important source of government revenue over the last decade contributing about US$31.3 M to the country’s annual budget in 2020 (i.e., over 10 percent), representing a 7 percent increase over 2019,2 despite the impact of COVID-19. While COVID-19 significantly impacted tuna fisheries industry, however Marshall Islands Marine Resources Authority (MIMRA) continues to generate revenue from transhipments, fishing rights, access fees and licenses. In 2020, alone, the transshipments accounted for a provisional total of 118,743 t of tuna. The total revenues from tuna fisheries were: US$28 M from the Vessel Day Scheme (VDS),3 US$3.58 M from fishing rights, US$2.3 M from licensing and registration and US$0.32 M from transhipment fees. 9. Coastal fisheries have an important role in food security and livelihoods. However, its role in food security and livelihoods remains underestimated. Coastal small-scale fisheries (SSF) in RMI, comprising of coastal subsistence catches (non-commercial catch primarily for home consumption) and coastal commercial catches, play a prominent role in food security and livelihoods in RMI. A 2020-reconstruction of the catches showed that SSF account for approximately 70 percent of the domestic catches and are crucial for the food security and livelihood of local populations.4 However, despite the importance of these fisheries, their contribution to national catches has been largely underestimated in the official catch statistics.5 Relationship to CPF 10. The proposed project is consistent with the strategic directions set forward in the Regional Partnership Framework (RPF), strategic program for nine PICs (PIC9): Kiribati, RMI, FSM, Nauru, Palau, Samoa, Tonga, Tuvalu, and Vanuatu for FY17–21 in 2017. The RPF recognizes the unique characteristics of each of the PIC9 to tailor country-specific solutions such that it is aligned with RMI’s NSP 2020–2030, specifically Pillar 2 and 4. The goal of RMI NSP Pillar 4 together with the policy objectives in turn aligns perfectly with MIMRA’s SGs. The RPF outlines four major focus areas of which the following three are relevant to RMI and the project: (i) Fully exploiting the available economic opportunities focusing on 1 Tuna Fisheries http://pubdocs.worldbank.org/en/858301461833983033/WB-PP-Tuna-Fisheries.pdf 2 MIMRA Annual Report. 2020. 3 The Parties to the Nauru Agreement (PNA) namely, the Federated States of Micronesia (FSM), Kiribati, RMI, Nauru, Palau, Papua New Guinea (PNG), Solomon Islands and Tuvalu, plus Tokelau, operate a VDS to collectively limit fishing days and sell them to purse-seine vessels’ operators. 4 Vianna et a.., 2020. Long-Term Fishing Catch and Effort Trends in the Republic of the Marshall Islands, With Emphasis on the Small-Scale Sectors. Front. Mar. Sci., https://doi.org/10.3389/fmars.2019.00828 5 Zeller, D., Harper, S., Zylich, K., Pauly, D. 2015. Ibid. Dec 17, 2021 Page 4 of 7 The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) improved management of fisheries, increased incomes from agriculture, and expanded tourism opportunities; (ii) Enhancing access to employment opportunities focusing on broadening opportunities for labor mobility and addressing gender inequality and gender-based violence through entry points that offer economic opportunities for marginalized gender; and (iii) Protecting incomes and livelihoods. C. Proposed Development Objective(s) The Development Objective of the Series of Projects is to strengthen the shared management of selected Pacific Island oceanic and coastal fisheries, and the critical habitats upon which they depend. For the Republic of Marshall Islands second phase’s project (“RMI PROPER�), the proposed Project Development Objective (PDO) is to strengthen regional collaboration and national capacity for the management and the sustainable development of the oceanic and coastal fisheries sector in the Marshall Islands. Key Results (From PCN) 11. Progress will be monitored against three PDO-level indicators to measure the strengthened regional collaboration and national capacity for fisheries management and development (first composite indicator); and the strengthened capacity at community-level for fisheries management and development (second and third indicators): (i) Fisheries management is informed by timely access to data by national and regional stakeholders, as: ▪ Data collection, integration and processing systems automated. ▪ Data collection systems and information retrieval organized in Fish Base and Aquaculture sites. ▪ Observers and Port Monitors’ data transmitted in real-time into MIMRA’s fisheries information management system (FIMS). (ii) Minimum number of new communities integrating the Reimaanlok Framework.6 (iii) National Endowment Fund established for financing the Reimaanlok Framework. D. Concept Description 12. The proposed Republic of Marshall Island PROPER project is being designed in support of core fisheries sector objectives of the Marshall Island. The project design responds ot the framework of Marshall Islands Marine Resources Authority(MIMRA) Strategic Plan 2019-2023. The Project will specifically address the following Strategic Goals of MIMRA’s Strategic Plan though a focus on : 13. Component 1: Strengthening Policy and Institutions. To provide institutional support to the national fisheries program in RMI through major activities that consist in (a) improving capacity for policy design, implementation and evaluation; (b) strengthening seafood health monitoring; (c) improving infrastructure and their operation. 14. Component 2: Strengthening Regional Collaboration and National Capacity for Oceanic Fisheries. For the management and sustainable development of oceanic fisheries and their value chains with two subcomponents focusing 6 Reimaanlok is a Marshallese term that means ‘look towards the future’, it refers to a conservation area management planning framework where communities design and ultimately sign-off on an integrated atoll resource management plan inclusive of programs to ensure ongoing monitoring and adaptive management and local commitment retention by ensuring communities have the adequate support for ongoing management. Dec 17, 2021 Page 5 of 7 The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) on: (i) consolidating oceanic fisheries management; and (ii) harnessing of oceanic fisheries to regional economy. 15. Component 3: Strengthening Regional Collaboration and National Capacity for Coastal Fisheries and Conservation of Critical Coastal Habitats. To strengthen regional collaboration and national capacity for the management and sustainable development of coastal fisheries and their value chains with two subcomponents focusing on: (i) strengthening coastal fisheries and habitat management; and (ii) developing and diversifying livelihoods in support of fisheries management. 16. Component 4: Project management and study fund. The Project management activities will cover project administration, fiduciary responsibilities, monitoring of Environmental and Social Framework implementation; Monitoring, evaluation and learning, and the coordination between regional and national activities, including across projects. And the study fund studies for informing strategic sectoral investment planning that could be supported by the World Bank in particular under a new financing to the Program in RMI, or through other sources. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . . CONTACT POINT World Bank Iretomiwa Olatunji, Xavier F. P. Vincent Senior Natural Resources Management Specialist Borrower/Client/Recipient Ministry of Finance, Banking and Postal Services. Implementing Agencies Dec 17, 2021 Page 6 of 7 The World Bank Republic of the Marshall Islands: Pacific Islands Regional Oceanscape Program - Second Phase for Economic Resilience (P178544) Marshall Islands Marine Resources Authority Glen Joesph Director gjoseph@mimra.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Iretomiwa Olatunji, Xavier F. P. Vincent Approved By APPROVALTBL Country Director: Stephen N. Ndegwa 28-Jun-2022 Dec 17, 2021 Page 7 of 7