The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) REPORT NO.: RES41640 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF PACIFIC ISLANDS REGIONAL OCEANSCAPE PROGRAM - TUVALU APPROVED ON DECEMBER 22, 2014 TO TUVALU ENVIRONMENT, NATURAL RESOURCES & THE BLUE ECONOMY GLOBAL PRACTICE EAST ASIA AND PACIFIC REGION Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Regional Director: Benoit Bosquet Practice Manager/Manager: Ann Jeannette Glauber Task Team Leader(s): Cary Anne Cadman i The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) ABBREVIATIONS AND ACRONYMS DLI Disbursement-Linked Indicator FFA Pacific Islands Forum Fisheries Agency GEF Global Environment Facility IDA International Development Association IT Information Technology IUU Illegal, Unregulated and Unreported Fishing LMMA Local Management Marine Area MPA Marine Protected Area PBC Performance Based Conditions PDO Project Development Objective PIRFO Pacific Islands Regional Fisheries Observer PIU Project Implementation Unit PNA Parties to the Nauru Agreement PROP Pacific Islands Regional Oceanscape Program PSU Program Support Unit SPC Secretariat of the Pacific Community TA Technical Assistance TFD Tuvalu Fisheries Department VDS Vessel Day Scheme WB World Bank WCPFC Western and Central Pacific Fisheries Commission ii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) BASIC DATA Product Information Project ID Financing Instrument P151780 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 22-Dec-2014 30-Sep-2020 Organizations Borrower Responsible Agency Tuvalu Ministry of Finance and Economic Development Project Development Objective (PDO) Original PDO The objective of the Project is to strengthen the shared management of selected Pacific Island oceanic and coastal fisheries, and the critical habitats upon which they depend. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D0160 22-Dec-2014 20-Apr-2015 09-Jun-2015 30-Sep-2020 7.00 3.71 3.04 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No iii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This restructuring paper seeks a Level 2 restructuring for the Pacific Islands Regional Oceanscape Program (PROP) – Tuvalu Project (hereafter referred to as the “Project”) involving the following changes: (a) an extension of the Project closing date by 23 months from September 30, 2020 to August 31, 2022; (b) addition of one more year to the Disbursement Linked Indicator (DLI) (currently renamed Performance Based Conditions (PBC) and used interchangeably in the restructuring paper) modality coupled with a reallocation of unused DLI funds from Years 1 to 5; (c) revisions to the Results Framework; (d) addition of one new subcomponent to Component 1; and, (e) strengthening Project Management. The Financing Agreement will be updated to reflect these changes along with amendments to the disbursement and implementation schedule throughout the extension period. The proposed changes are expected to improve achievement of the Project Development Objectives (PDO). 2. The Project was approved on December 22, 2014 with an International Development Association (IDA) Grant No. IDA-DO16-TV (P151780) in an amount of US$7 million and a Global Environment Facility (GEF) Grant No. TF018605 (P152925) in an amount of US$0.91 million. The Project became effective on June 9, 2015 and is being implemented by the Tuvalu Fisheries Department (TFD). Currently, the PDO and Implementation Progress (IP) ratings are Moderately Unsatisfactory, as explained below. B. Project Status 3. In December 2017, the rating for overall Implementation Progress (IP) was downgraded to Moderately Satisfactory, and subsequently downgraded again to Moderately Unsatisfactory during the project’s Mid-Term Review in June 2019. These ratings were prompted by the project’s low disbursement rate and procurement challenges, primarily due to Tuvalu’s geographic isolation and extremely limited market. These operational challenges were compounded by a lack of program implementation support expected from the Forum Fisheries Association (FFA) PROP Project Program Support Unit (PSU) in the areas of procurement, financial management, safeguards and monitoring and evaluation. The Mid-Term Review also highlighted the need to refine the clarity and appropriateness of select result indicators to improve attribution of results to project interventions. Further exacerbating these constraints, the onset of COVID-19, which triggered extensive international and domestic travel restrictions and limitations on global supply chains, further affected project implementation (e.g. installation of equipment and associated technical assistance). 4. Audited financial statements for FY19 have been submitted and are acceptable to the Bank. There are no outstanding audits for this project. C. Rationale for Restructuring 5. This restructuring responds to requests from the Government of Tuvalu dated November 20, 2019 and August 21, 2020 to extend the closing date of the Project by 23 months from September 30, 2020 to August 31, 2022. This restructuring is required in order to permit successful delivery of all planned activities and improve progress toward achievement of the PDO, implementation progress and trigger a rating upgrade in project status. Considering recent implementation challenges and TFD’s demonstrated commitment toward accelerating implementation through raising project issues proactively and taking safeguard issues seriously for advancing with both construction of the Fisheries Training Center and Watchman Hut, a 23-month extension is proposed from September 30, 2020 to August 31, 2022. 2 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) II. DESCRIPTION OF PROPOSED CHANGES A. Proposed Changes 6. The proposed revisions are as follows: a. Extension of closing date of IDA Grant (IDA-DO16-TV). A 23-month extension of the closing date is proposed from September 30, 2020 to August 31, 2022. This extension will allow for completion of programmed components, activities and associated costs financed by the IDA Grant, of which US$3.04 million remain undisbursed. Activities financed by the GEF Grant will close on schedule on September 30, 2020, followed by a four-month grace period during which the Project must prepare and submit withdrawal applications for eligible expenditures up to the GEF Grant closing date. b. Revisions related to Disbursement Linked Indicators (DLI)/ Performance Based Conditions (PBC). The DLI modality is proposed to be modified to: (i) add an additional Year 7 (CY2021): The revised DLI schedule is presented in Table 1 and the revised withdrawal table is presented in Table 4. Table 4 includes Incremental Operating Costs, training and workshops as eligible expenditure categories that were originally included in the Financing Agreement, but accidentally omitted from the withdrawal table when the project was designed. The period of eligibility for Year 7 DLI expenditures will terminate on December 31, 2021. (ii) reallocate the unused balance for years 11 to 5: Unused DLI budget allocations for Years 1-5 (SDR 1,191,105) will be released and DLI Years 6-7 will be right-sized (SDR 200,000 per year) with reference to historical and forecast claims for eligible expenses. DLI budget allocations presented in the Performance- Based Conditions (PBC) Matrix at the end of this paper are presented in USD rounded equivalent, however the SDR allocations in Table 1 prevail and USD equivalent at the time of withdrawal may differ. (iii) update the DLI periods and verification arrangements: The project will ensure verification of the DLI Year 6 and 7 is completed by May 31 of each year to enable full disbursement by August of that same year. Any DLIs for Year 7 not verified and disbursed by August 31, 2022 will not be disbursed. (iv) revise the total DLI Values and disbursement Category: The original total of all DLI Values was SDR 2,499,600 while the disbursement Category for DLI Expenditures in the withdrawal table in Section IV.A of Schedule 2 to the Financing Agreement was SDR 2,500,000. This restructuring will revise the total DLI Values and disbursement Category (2) in the withdrawal table to SDR 1,291,895, releasing SDR 1,208,105 for new activities under Component 1 and 4 as well as financed continuation of select Component 2 activities related to the restoration and management of Funafuti lagoon for which current GEF Grant financing concludes on September 30, 2020. These changes will enable reallocation to priority activities in support of the PDO. TABLE 1: ANNUAL DLI BUDGET ALLOCATIONS DLI Indicator Project Year Original Value Revised Value (SDR) (SDR) 1Project implementation years correspond to calendar years (CY) from 1 January – 31 December. Year 1 starts on 1 January 2015. The DLIs are audited by calendar year. 3 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) DLI 1: Year 1 104,400 24,001 (2014/2015)(formerly FY Percent of purse seine tuna fishing 2015/2016) days fished in the Recipient’s waters Year 2 104,400 51,942 (2015/2016 (formerly FY 2016/2017) Year 3 104,400 60,312 (2016/2017) (formerly FY 2017/2018) Year 4 104,400 34,497 (2017/2018) (formerly FY 2018/2019) Year 5 104,400 52,776 (2018/2019) (formerly FY 2019/2020) Year 6 104,400 50,000 (2019/2020) (formerly FY 2020/2021) Year 7 0 50,000 (2020/2021) DLI 2: Year 1 208,900 48,024 (2014/2015)(formerly FY (i) Percent of purse seine fishing 2015/2016) vessel days used in the Recipient’s waters recorded annually according Year 2 208,900 103,932 to agreed criteria (2015/2016 (formerly FY (ii) Percent of purse seine fishing 2016/2017) days sold in the Recipient’s waters Year 3 208,900 120,682 disclosed annually to the Parties to (2016/2017) (formerly FY the Nauru Agreement Office 2017/2018) Fisheries Information Management Year 4 208,900 68,979 System (PNAO FIMS) and other (2017/2018) (formerly FY Parties to the Nauru Agreement as 2018/2019) part of a comprehensive verification system for the VDS Year 5 208,900 105,602 (2018/2019) (formerly FY 2019/2020) Year 6 208,900 100,000 (2019/2020) (formerly FY 2020/2021) Year 7 0 100,000 (2020/2021) 4 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) DLI 3: Year 1 103,300 23,748 (2014/2015)(formerly FY Percent of purse seine tuna catch 2015/2016) within the Recipient’s waters that is encompassed within the VDS Year 2 103,300 51,394 (2015/2016 (formerly FY 2016/2017) Year 3 103,300 59,676 (2016/2017) (formerly FY 2017/2018) Year 4 103,300 34,110 (2017/2018) (formerly FY 2018/2019) Year 5 103,300 52,220 (2018/2019) (formerly FY 2019/2020) Year 6 103,300 50,000 (2019/2020) (formerly FY 2020/2021) Year 7 0 50,000 (2020/2021) TOTAL 2,499,600 1,291,895 c. Revisions to the Results Framework. The Results Framework is proposed to be revised to clarify indicator definitions. The nature and target values of project indicators will remain the same. The specific changes and associated rationale are detailed in Error! Reference source not found. below. TFD will update the Program Operations Manual (POM) to reflect the revised results framework and aim to adopt it, in form and substance satisfactory to the Association, by no later than December 31, 2020. TABLE 1: PROPOSED REVISIONS TO THE PROJECT’S RESULTS FRAMEWORK ORIGINAL Change Rationale for Change PROJECT DEVELOPMENT OBJECTIVE INDICATORS PDO1 Number of days fished in a Percent of purse seine The indicator has been revised for country’s waters does not exceed tuna fishing days clarity and to focus on Tuvalu. its agreed annual allocation of fished in the fishing vessel days (PAE), while Recipient’s waters of the total regional allocation (TAE) agreed annual VDS allocation (percentage) 5 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) remains within sustainable levels (percentage) PDO2 Number of additional coastal Change of end date to To reflect new closing date for IDA fisheries legally managed by August 31, 2022. Grant stakeholders in each country, with support from the Government (Number) PDO3 Direct project beneficiaries Dropped This indicator was introduced at design (number), of which are female in 2015 as a regional, PROP Series of (%) (Number) Projects-wide shared indicator. That is, it was developed as a regional indicator with regional targets making it challenging for individual projects/countries to monitor. The Tuvalu PROP implementing agency has not monitored it for the life of the project due to its inability to capture meaningful data for this indicator. As such, there are no national data upon which to base progress with achievement of this indicator’s regional target. INTERMEDIATE RESULTS INDICATORS COMPONENT 1 IR1 100% of purse seine fishing Percent of purse seine vessel days used are recorded fishing vessel days The indicator has been revised to: (i) annually according to agreed used in the Recipient’s focus on Tuvalu; (ii) clarify that the criteria (Percentage) waters recorded project will measure reporting on VDS annually according to allocation; and (iii) capture greater agreed criteria transparency. (Percentage) IR2 100% of purse seine fishing days Percent of purse seine The indicator has been revised to: (1) used and sold are disclosed fishing days used and capture greater transparency; and, (2) annually to the PNAO FIMS sold in the Recipient’s following the lessons learned with the and other parties as part of a waters disclosed West Africa Regional Fisheries Program, comprehensive verification annually to the Parties this indicator is transformed into two system for the VDS (Percentage) to the Nauru indicators that together focus on purse Agreement Office seine fishing days sold by Tuvalu each Fisheries Information year in addition to the already disclosed Management System fishing days used. (PNAO FIMS) and other Parties to the Nauru Agreement as part of a comprehensive 6 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) verification system for the VDS. End date revised to August 31, 2022. IR3 % of tuna catch within a Percent purse seine The indicator has been revised to (i) country’s waters that is tuna catch within focus on Tuvalu exclusively; and (ii) encompassed within the VDS or a Tuvalu’s waters clarify that the project will measure the compatible system (Percentage) encompassed within % of tuna catch in Tuvalu waters that is the VDS (Percentage). encompassed within the VDS and to remove reference to “compatible Target is 100% of purse systems” that are no longer seine tuna catch is relevant. End date changed to August encompassed within 31, 2022. the VDS. IR4 At least one measure applied and No change maintained to increase flexibility and the value of a purse seine vessel day above the baseline (Yes/No) IR5 A similar system to the VDS is A similar system to the The indicator has been revised to (i) introduced for managing access VDS is introduced for focus on Tuvalu exclusively; and (ii) to the two long-line fisheries managing access to the reflect that only the tropical long line (tropical long-line fishery and tropical long-line fishery, and not albacore, is relevant to southern albacore fishery (Yes/No) Tuvalu. long-line fishery) (Yes/No) End date changed to August 31, 2022. COMPONENT 2 IR1 Coastal fish resources assessed No change as the basis for improved management (Number) IR2 New Number of people To capture the impact of the new trained by the activity - establishment of Fisheries Fisheries Training Training Center. Center disaggregated by gender and nationality (Number) COMPONENT 3 IR1 Implementing agencies receive Dropped The indicator has been dropped as it is the support needed from FFA to no longer relevant given that the FFA achieve the program’s objectives PROP Project will no longer provide (Yes/No) implementation support to the FSM PROP Project. 7 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) IR2 New: Grievances The new indicator emphasizes the registered related to importance of strengthening citizen delivery of project engagement in the Pacific. benefits that are addressed (%) (flat line target of 75% each year) d. Changes to project components and activities. This restructuring introduces one new Activity 1.3 – Establish and Operationalize a Fisheries Training Center to the Component 1 non-DLI modality, with a budget of US$0.40 million to be financed via the released and reallocated DLI envelope. Construction of this Fisheries Training Center is currently underway, in accordance with Bank procedures. The site was screened by the World Bank Safeguards Team in May 2019, an Environmental and Social Management Plan is in place, previous dilapidated buildings have been demolished, and design and supervision services have been procured. Activity descriptions for all other components will be updated to reflect current implementation status and to ensure continued focus on priorities that contribute to achievement of the PDO (Table 3). This adjustment will enable continuation of critical activities associated with restoration and management of Funafuti lagoon beyond the September 30, 2020 closing date for GEF Grant-financed activities. TABLE 3: ORIGINAL AND PROPOSED PROJECT COMPONENTS AND ACTIVITIES Original Proposed Component 1: Sustainable Management of Oceanic Fisheries 1.1 Strengthen the capacity of the TFD to sustainably manage the shared tuna fisheries 1.1.1 Disbursements to TFD for costs linked to indicators 1.1.1 Disbursements to TFD for costs linked to for strengthened tuna fisheries management (DLI indicators for strengthened tuna fisheries management modality): (DLI modality): a) Expanded participation of TFD staff in PNA meetings; a) Expand participation of TFD staff in regional b) Expansion of the National Observer Program, incl: meetings including but not limited to PNA2, FFA3, (i) Expand the number of contractors who are SPC4, and WCPFC;5 PIRFO-certified to debrief observers, to ratio of b) Consolidate and strengthen the National Observer 1 debriefer to 5 observers; Program, including: (ii) Expand the number of trained observers, (i) Recruitment and training to maintain the ratio complementing support from the Gov. of New of 1 PIRFO6-certified debriefer to every 5 Zealand; and observers, to accommodate routine personnel (iii) Costs of joint observer management offices turnover; with other countries, beginning in Fiji or (ii) Recruitment and training to accommodate American Samoa. routine personnel turnover and maintain the TFD Corporate Plan target of 80 trained observers; 2 Parties to the Nauru Agreement 3 Pacific Islands Forum Fisheries Agency 4 Secretariat of the Pacific Community 5 Western and Central Pacific Fisheries Commission 6 Pacific Islands Regional Fisheries Observer 8 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Original Proposed c) Costs of additional fisheries surveillance patrols (8 (iii) Technical Assistance (TA) to improve efficient sea patrols per year, 10 days each, for a total of observer deployments, operation of the US$300,000 per year). National Observer Program, and to advise on d) Development of provisions for sanitary competent cost recovery strategies; authority (iv) Recruitment and training of a Tuvaluan Observer Trainer; (v) Upgrade and refresher training for observers in operation of mobile information technology (IT) devices to communicate and transfer data reports while enhancing safety at sea. c) Costs of additional offshore fishery surveillance patrols (3 x 10-day sea patrols per year) contributing to objectives of TFD’s Corporate Plan to enhance fisheries monitoring and detection of illegal, unregulated and unreported (IUU) fishing; d) Develop provisions for a sanitary competent authority, including engage TA to define the legal and institutional arrangements, and to produce a costed and timebound operationalization roadmap, including defining critical capacity and resourcing needs. This activity contributes to improved systems for fishery exports. e) Explore options for transition of TFD to a Statutory Authority, including but not limited to: (i) strengthening stakeholder buy in; (ii) undertaking learning exchanges with regional neighbors; and (iii) engaging TA to undertake scoping studies, define legal and institutional arrangements, and undertake cost-benefit analyses. The independent Statutory Authority would manage Tuvalu’s Vessel Day Scheme (VDS); f) Strengthen implementation of the regional VDS in Tuvalu, including: (i) Procure software and IT to enable TFD to monitor and trade its allocated fishing days throughout the year, and facilitate accurate reporting of fishing effort; (ii) Engage TA to assist TFD to maximize the value of Tuvalu’s VDS allocation, including maximizing the number of TFD’s allocated days sold; (iii) Engage TA to expand the VDS to encompass the longline fleet for full implementation by 2021. g) Strengthen the national Vessel Monitoring System (VMS), including: (i) Engage TA to undertake a Monitoring, Control and Surveillance (MCS) cost-benefit analysis; 9 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Original Proposed (ii)engage TA to setup the national VMS command center; and (iii) procure associated IT. h) Accelerate and expand the Coast Watch program, including: (i) Develop and implement public campaigns to promote the Coast Watch program. 1.1.2 Goods and services needed for achievement of 1.1.2 Goods and services needed for achievement of disbursement-linked indicators: disbursement-linked indicators: a) Technical assistance to TFD staff in fishery industry a) Technical assistance to TFD staff on the fisheries economic, biological and operational analysis industry economic, biological and operational b) Acquisition of hardware and software necessary to analyses; support real-time data provision from observers b) Acquisition of hardware and software necessary to (satellite phones, electronic tablets) support real-time data provision from observers c) Hardware, software and services for expanded (satellite phones, electronic tablets); internet access for TFD c) Hardware, software and services for expanded internet access for TFD. 1.2 Ensure an equitable distribution within Tuvalu of the benefits of sustainably managed tuna fisheries Technical assistance, community consultations, Undertake stakeholder consultations and engage local development of financial management and accounting TA to review legal/financial arrangements and to systems) to establish community VDS funds, beginning in develop detailed operational proposals for distribution Tuvalu of funds to finance community-based fishery management linked projects under the community VDS funds established in all islands. 1.3 Establish and operationalize a Fisheries Training Center Undertake civil works to establish a Fisheries Training Center on government-owned land adjacent to TFD’s office; develop curricula and training modules; and procure the furniture, equipment and software needed to operationalize the Center. The Center will provide a venue for delivery of national and regional sustainable fisheries management training programs. Component 2: Sustainable Management of Coastal Fisheries 2.1 Sustainable management of targeted coastal fisheries 2.1.1 Resource assessments: Operating costs for TFD to 2.1.1 Resource assessments, including: conduct resource surveys for the coastal fisheries on 5 a) Operating costs for TFD to conduct long-term outer islands over a two-year period, then monitoring creel/artisanal surveys on seven (7) outer islands, resurveys on 7 islands at 3-year intervals including employment of data collectors on each island. In addition, the project will engage TA to prepare standard operating procedures to integrate existing reef fish and coastal tuna data collection and management systems. A long-term sustainability and financing strategy will also be established. 10 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Original Proposed b) Operating costs for TFD to conduct on-demand sea cucumber (Nukufetau, Nukulaelae), giant clam resources as well as Marine Protected Area/Large Marine Management Area (MPA/LMMA) assessments (one (1) island every two (2) years) as required for development or adjustment of management plans. 2.1.2 Fisheries monitoring: Outer island data monitoring 2.1.2 Fisheries monitoring: Outer island data monitoring and transmission (smartphone based) and transmission using smartphones. 2.1.3 Stakeholder management of coastal fisheries: 2.1.3 Stakeholder management of coastal fisheries, Ongoing tech. support by TFD to communities on each including: outer island to develop & implement resource a) Support implementation of outer-island management plans over 4 years (interim years between metronome trips to enhance community awareness major surveys/ re-surveys) about and participation in sustainable fisheries resource management, and support community implementation and adaptation of resource management plans already developed for the seven (7) outer islands incorporating evidence inputs from fishery surveys; b) Implement management and recovery plans for priority coastal fishery resources, including bêche de mer and clams, drawing on regional scoping studies developed under the FFA PROP; c) Implement Public Outreach and Awareness programs, delivered in cohort with metronome trips and harmonized with promotion of the Coastal Watch program. 2.1.4 Restoration and management of Funafuti lagoon 2.1.4 Restoration and management of Funafuti lagoon and the fisheries it supports: and the fisheries it supports, including: a) Resource survey, ongoing water quality and a) On-demand resource surveys, water quality and ciguatera monitoring of Funafuti lagoon on-going ciguatera monitoring of Funafuti lagoon; b) Purchase and operation of Funafuti lagoon patrol b) Operational costs for the Funafuti Lagoon coastal vessel patrol vessel; c) Support the Funafuti Kaupule to implement the Funafuti Reef Fisheries Stewardship Plan (FRFSP) Action Plan, including but not limited to: constructing a watchman hut for the Funafuti conservation area; deployment of buoys to demarcate the boundary of no-take zones; and procurement of equipment. Component 3: National Program Management, Monitoring and Evaluation National program management, monitoring and National program management, monitoring and evaluation evaluation. Engage TA to prepare client inputs to the Implementation Completion Report, and to undertake DLI verification for Year 6 and 7. 11 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) e. Strengthening Project Management. To compensate for the lack of implementation support that was to be provisioned by the regional FFA PROP Project, the PIU staffing complement – comprising a Project Manager, Accountant, Project Officer and Procurement Officer – will be maintained until the new proposed closing date. Consulting services will be engaged in the final year of the project to prepare client inputs to the Implementation Completion Report. Consulting services will also be engaged in years 7 (CY21) and 8 (CY22) to verify DLIs for years 6 (CY20) and 7 (CY21). 7. The DLI periods will be revised to correspond to the actual periods in which the DLI expenditures were verified. Furthermore, Tuvalu will directly engage an independent verification agent to carry out independent verification of the status of achievement of DLI targets in year 6 and 7. In addition, the date at which the independent verification report for years 6 and 7 is to be submitted to the WB, as specified in the Financing Agreement, is proposed to be moved from March 31 to May 31, 2021 and 2022. The new submission date will provide an additional two months to prepare the report, while still allowing sufficient time to process the lifting of the withdrawal condition memo issued by the WB for Tuvalu to submit the withdrawal application for the year 6 and year 7 DLI period. B. Project Components and Activities 8. Other than the addition of sub-component 1.3, these changes will not necessitate changes to the Financing Agreement as the updated activities remain within the scope of the description in the Financing Agreement. The budget allocation for Component 3 will be increased by US$0.8 million, financed via the released DLI envelope. This adjustment will enable retroactive (due to the accidental omission of Incremental Operating Costs (IOCs), Training and Workshops from the withdrawal table at design), and ongoing and future (during the 23-month extension period) financing of project management activities that have increased in scope and cost from the original project design due in part to lack of implementation support to have been received from the FFA PROP Project. C. Disbursement 9. The Project’s Eligible Expenditures categories will be updated to add Training, Workshops and IOC to Expenses Category 1 (Table 4) and to disbursement Category (1) in the withdrawal table in Section IV.A of Schedule 2 to the Financing Agreement which will apply retroactively. This will correct an omission in the original withdrawal table, though the original Financing Agreement did define IOCs, identified in the Financial Management Implementation Review Report dated October 22, 2018, and which has resulted in IOCs, Training and Workshops incurred under Component 2 being ineligible for reimbursement and erroneously claimed against the GEF account. This adjustment will apply retroactively, meaning that IOCs, Training and Workshop costs incurred since the start of the project (i.e. from the signing date of the Financing Agreement of April 20, 2015) can be considered for approval against Category 1 and enabling the corrective reallocation of claims from GEF to IDA envelopes. The estimate of IOCs, Training and Workshops to be retroactively financed by IDA is approximately US$0.4 m which will be covered using the reallocated, unused balance from earlier year DLI envelopes and will not impact financing allocated to deliver planned activities during the extension period. TABLE 4: WITHDRAWAL TABLE FOR DISBURSEMENTS UNDER SECTION IV.A.2 OF SCHEDULE 2 TO THE FINANCING AGREEMENT Amount of the Grant Percentage of Expenditures to be Allocated Financed Category (expressed in SDR) (inclusive of Taxes) (1) Goods, works, non-consulting 3,508,105 100% services, consultants’ services, Training 12 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) and Workshops, and Incremental Operating Costs for the Project (except under Part 1(a) of the Project) (2) DLI Expenditures under Part 1(a) of 1,291,895 100% the Project TOTAL AMOUNT 4,800,000 D. Environmental and Social Safeguards 10. The proposed restructuring does not change the environmental or social risks associated with the project, nor trigger new safeguards policies. As such the Environmental and Social Safeguards Management Framework (ESMF) for the project remains the suitable instrument for managing risks emerging from both original and proposed activities. Three proposed sub-components with specific safeguards implications include 1.2, 1.3 and 2.1.4c are covered by the ESMF. The PIU has recruited a safeguards specialist who will lead application of safeguards requirements with oversight from the Bank. The Project’s Grievance Redress Mechanism has been established, is publicly available and the PIU is familiar with its use. To date, no grievances have been registered. E. Risks 11. The overall project risk rating remains “substantial”. The “other” risk rating is changed from “moderate” to “substantial”, reflecting the ongoing and highly likely impacts of COVID-19 on progress towards achievement of the PDO. These impacts include potential procurement delays due to travel and trade restrictions, and constraints on stakeholder coordination and the implementation of activities dependent on imported goods or services, such as provision of Technical Assistance. While this restructuring introduces an extension that attempts to mitigate COVID- related risks to attainment of the PDO, the remaining uncertainties about the severity and longevity of these risks means that the risk rating remains “substantial”. F. Legal Covenant 12. The restructuring will include excision of the Legal Covenant on establishment of the Regional Procurement Evaluation Committee as this Committee was never established over the life of the project as it was never deemed necessary for effective and efficient implementation. As such, it will not be established going forward and is dropped as a Legal Covenant under this restructuring exercise. III. SUMMARY OF CHANGES Changed Not Changed Results Framework ✔ PBCs ✔ Components and Cost ✔ Loan Closing Date(s) ✔ 13 The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Legal Covenants ✔ Implementation Schedule ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Cancellations Proposed ✔ Disbursement Estimates ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Component 1: Sustainable Component 1: Sustainable Management of Oceanic 5.77 Revised Management of Oceanic 4.50 Fisheries Fisheries Component 2: Sustainable Component 2: Sustainable 2.04 Revised Management of Coastal 2.51 Management of Coastal Fisheries Fisheries xiv The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Component 3: National Program Component 3: National Management, Monitoring and 0.10 Revised Program Management, 0.90 Evaluation Monitoring and Evaluation TOTAL 7.91 7.91 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D0160 Effective 30-Sep-2020 31-Aug-2022 30-Dec-2022 OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-D0160-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GO WRKS NCS CS exc PT1(a) 2,300,000.00 1,117,675.89 3,508,105.00 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: DLI EXPS FOR PT1(a) 2,500,000.00 988,355.09 1,291,895.00 100.00 100.00 Total 4,800,000.00 2,106,030.98 4,800,000.00 OPS_DETAILEDCHANGES_LEGCOV_TABLE LEGAL COVENANTS Loan/Credit/TF Description Status Action The Additional Event of Suspension consists of the IDA-D0160 following, namely that, the Marine Resources Act has Complied with No Change been amended, suspended, abrogated, repealed or xv The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) waived in a manner that is not compatible with international law, specifically the United Nations Convention on the Law of the Sea, or in a manner that would affect materially and adversely the ability of the Recipient to perform any of its obligations under the Financing Agreement. The Recipient shall, by not later than four months after the Effective Date, appoint and thereafter maintain, a national Project coordinator, within the Tuvalu Fisheries Department (TFD), to be responsible for, inter alia, After delay complied IDA-D0160 No Change overseeing implementation and monitoring of the with Project, including coordinating with the PSU, managing all contracts financed under the project, and ensuring environmental and social safeguards compliance. The Recipient shall, in collaboration with FFA and other Participating Countries, take all necessary action on its part to establish, by not later than six (6) months after the Effective Date, and thereafter maintain, a Regional After delay complied Marked for IDA-D0160 Procurement Evaluation Committee, comprising with Deletion representatives from FFA, and each Participating Country, to be responsible for contract award decision- making for regionally packaged procurement activities. To facilitate proper and efficient implementation of the Project, the Recipient shall by not later than six (6) months after the Effective Date enter into and maintain, throughout the Project implementation period, a Service Agreement between the Recipient and FFA, under terms and conditions acceptable to the Association pursuant to IDA-D0160 Complied with Revised which the FFA, through the PSU, shall provide technical, fiduciary, monitoring and implementation support to the Recipient, including, inter alia carrying out verification of achievement of DLIs under Part 1(a) of the Project, and procurement services as detailed in Section I.A.1 of Schedule 2 to the Financing Agreement. Proposed The Recipient shall by not later than 6 months after the C Effective Date enter into and maintain until the closing date of FFA PROP Financing Agreement, a Service xvi The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Agreement between the Recipient and FFA as set out in the Financing Agreement. The Recipient shall by not later than three (3) months after the Effective Date, prepare, in collaboration with After delay complied IDA-D0160 FFA and the other Participating Countries, and No Change with thereafter adopt a Program Operations Manual, in form and substance acceptable to the Association. IDA-D0160 The Recipient shall ensure that: Complied with No Change (a) all monitoring, control and surveillance activities carried out by the Recipient shall be under the control of a civilian fisheries officer or another civilian agency of the Recipient acceptable to the Association, and shall be carried out under terms of reference limited to fisheries surveillance; (b) each surveillance mission carried out by the Recipient shall be: (a) governed by detailed protocols prepared in accordance with terms of reference satisfactory to the Association, requiring that such missions be: (i) under the operational command or authority of a civilian fisheries officer; and (ii) conducted during a specific time period that is duly recorded and documented; and (b) be conducted by personnel who have been properly trained in the operation of any equipment used in the surveillance mission; (c) where a patrol or surveillance mission has multiple tasks: (i) accounts are maintained in a manner acceptable to the Association which demonstrate that the Financing has been used for the exclusive purpose of financing fisheries surveillance activities; and (ii) that the Association is granted access to such accounts; (d) all goods, works, services and operating costs for fisheries monitoring, control and surveillance and related enforcement activities financed out of the proceeds of the Financing are used for the sole purpose of enforcing the fisheries laws and regulations and shall not be used for any military purpose, or for enforcement of other non-fisheries laws; and (e) all fisheries monitoring, control and surveillance and related enforcement activities carried out under the Project, shall be compatible with international law, and specifically, with Article 73 of the United Nations Convention Law of the Sea Treaty, that: (a) any foreign vessels and crew arrested in the Recipient’s exclusive xvii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) economic zone shall be immediately released upon posting a reasonable bond or other security; (b) penalties imposed by the Recipient for violations of fisheries laws and regulations may not include imprisonment; and (c) in cases of arrest or detention of foreign vessels, the Recipient shall promptly notify the flag state of the action taken and of any penalties subsequently imposed. The Recipient shall: (a) not later than three (3) years after the Effective Date (or such other date as the After delay complied IDA-D0160 No Change Association may agree), carry out a mid-term review of with the Project. No withdrawal shall be made for DLI Expenditures under Category (2) until and unless the Recipient shall have: (i) complied with the additional instructions referred to in Section IV.A.1 of this Schedule, including submission to the Association of the applicable statements of expenditure evidencing the incurrence of IDA-D0160 eligible DLI Expenditures during the respective DLI Complied with No Change Period for which payment is requested; and (ii) furnished evidence satisfactory to the Association, in accordance with the verification protocol set out in Annex 2 of Schedule 2 to the Financing Agreement, that the DLI Target for the respective DLI Period for which payment is requested has been achieved. The Recipient shall, by not later than December 31, 2020, prepare and adopt an updated Project Operations IDA-D0160 Manual, in form and substance acceptable to the Not yet due New Association, to reflect the revised indicators for . monitoring and evaluation of the Project. xviii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) . Results framework COUNTRY: Tuvalu Pacific Islands Regional Oceanscape Program - Tuvalu Project Development Objectives(s) The objective of the Project is to strengthen the shared management of selected Pacific Island oceanic and coastal fisheries, and the critical habitats upon which they depend. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 PDO Indicators (Action: This Objective has been Revised) Percent of purse seine tuna fishing days fished in the Recipient’s waters PBC 1 107.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 of agreed annual VDS allocation (Percentage) Rationale: Action: This indicator has The indicator has been revised for clarity and to focus on Tuvalu. been Revised Number of additional coastal fisheries legally managed by stakeholders 0.00 0.00 0.00 2.00 4.00 5.00 7.00 7.00 in each country, with support from the Government (Number) xix The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) RESULT_FRAME_TBL_PDO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Rationale: Action: This indicator has Change of end date to August 31, 2022. been Revised Direct project beneficiaries (number), 0.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 250,000.00 6,000.00 of which are female (%) (Number) Rationale: This indicator was introduced at design in 2015 as a regional, PROP Series of Projects-wide shared indicator. That is, it was developed as a regional indicator with Action: This indicator has regional targets making it challenging for individual projects/countries to monitor. The Tuvalu PROP implementing agency has not monitored it for the life of the been Marked for project due to its inability to capture meaningful data for this indicator. As such, there are no national data upon which to base progress with achievement of this Deletion indicator’s regional target. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Component 1: Sustainable Management of Oceanic Fisheries (Action: This Component has been Revised) Percent of purse seine fishing vessel days used in the Recipient’s waters PBC 2 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 recorded annually according to agreed criteria (Percentage) xx The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Rationale: Action: This indicator has The indicator has been revised to: (i) focus on Tuvalu; (ii) clarify that the project will measure reporting on VDS allocation; (iii) capture greater transparency; and, been Revised (iv) extend the end date to August 31, 2022. Percent of purse seine fishing days used and sold in the Recipient’s waters disclosed annually to the PNAO FIMS and 0.00 0.00 0.00 0.00 100.00 100.00 100.00 100.00 other Parties to the PNA as part of a comprehensive verification system for the VDS. (Percentage) Rationale: The indicator has been revised to: (1) capture greater transparency; and, (2) following the lessons learned with the West Africa Regional Fisheries Program, this indicator is transformed into two indicators that together focus on purse seine fishing days sold by Tuvalu each year in addition to the already disclosed fishing days used. Action: This indicator has Full wording of new indicator: Number of purse seine fishing days used and sold in the Recipient’s waters disclosed annually to the Parties to the Nauru Agreement been Revised Office Fisheries Information Management System (PNAO FIMS) and other Parties to the Nauru Agreement as part of a comprehensive verification system for the VDS. End date revised to August 31, 2022. Percent purse seine tuna catch within Tuvalu’s waters encompassed PBC 3 94.00 94.00 100.00 100.00 100.00 100.00 100.00 100.00 within the VDS (Percentage) xxi The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Rationale: Action: This indicator has The indicator has been revised to (i) focus on Tuvalu exclusively; and (ii) clarify that the project will measure the % of tuna catch in Tuvalu waters that is been Revised encompassed within the VDS and to remove reference to “compatible systems” that are no longer relevant. End date changed to August 31, 2022. At least one measure applied and maintained to increase flexibility and Yes Yes Yes Yes Yes Yes Yes Yes the value of a purse seine vessel day above the baseline (Yes/No) Rationale: Action: This indicator has Extend end date to August 31, 2022. been Revised A similar system to the VDS is introduced for managing access to the No No Yes Yes Yes Yes Yes Yes tropical long-line fishery (Yes/No) Rationale: Action: This indicator has The indicator has been revised to (i) focus on Tuvalu exclusively; and (ii) reflect that only the tropical long line fishery, and not albacore, is relevant to Tuvalu. End been Revised date changed to August 31, 2022. Component 2: Sustainable Management of Coastal Fisheries Coastal fish resources assessed as the basis for 0.00 19.00 improved management (Number) xxii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) RESULT_FRAME_TBL_IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 Rationale: Action: This indicator has Extend end date to August 31, 2022. been Revised Number of people trained by the Fishery Training Center 0.00 50.00 100.00 disaggregated by gender and nationality. (Number) Rationale: Action: This indicator is To capture the impact of the new activity - establishment of Fisheries Training Center. New Component 3: National Project Management (Action: This Component has been Revised) Implementing agencies receive the support needed from FFA to Yes Yes achieve the program’s objectives (Yes/No) Grievances registered related to delivery of 75.00 75.00 75.00 project benefits that are addressed. (Percentage) Rationale: Action: This indicator is The new indicator emphasizes the importance of strengthening citizen engagement in the Pacific region. New xxiii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) IO Table SPACE Performance-Based Conditions Matrix DLI IN00871034 ACTION PBC 1 Percent of purse seine tuna fishing days fished in the Recipient’s waters of agreed annual VDS allocation Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Percentage 478,500.00 28.48 Period Value Allocated Amount (USD) Formula Baseline 107.00 2015 100.00 35,500.00 2015/2016 100.00 77,000.00 2016/2017 100.00 89,000.00 2017/2018 100.00 51,000.00 2018/2019 100.00 78,000.00 2019/2020 74,000.00 2020/2021 74,000.00 Action: This PBC is New xxiv The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) DLI IN00871035 ACTION PBC 2 Percent of purse seine fishing vessel days (i) used and (ii) sold in the Recipient’s waters recorded annually. Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Percentage 957,000.00 14.24 Period Value Allocated Amount (USD) Formula Baseline 100.00 2015 100.00 71,000.00 2015/2016 100.00 154,000.00 2016/2017 100.00 178,000.00 2017/2018 100.00 102,000.00 2018/2019 100.00 156,000.00 2019/2020 148,000.00 2020/2021 148,000.00 Action: This PBC is New DLI IN00871082 ACTION PBC 3 Percent purse seine tuna catch within Tuvalu’s waters encompassed within the VDS Type of PBC Scalability Unit of Measure Total Allocated Amount (USD) As % of Total Financing Amount Intermediate Outcome No Percentage 474,500.00 28.41 Period Value Allocated Amount (USD) Formula xxv The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) Baseline 94.00 2015 100.00 35,000.00 2015/2016 100.00 76,000.00 2016/2017 100.00 88,000.00 2017/2018 100.00 50,500.00 2018/2019 100.00 77,000.00 2019/2020 74,000.00 2020/2021 74,000.00 Action: This PBC is New Verification Protocol Table: Performance-Based Conditions DLI_TBL_VERIFICATION PBC 1 Percent of purse seine tuna fishing days fished in the Recipient’s waters of agreed annual VDS allocation Vessel days used, as a % of PAE, while total number of days (TAE) remains constant Objective is to maintain at 100% or less Description each year (actuals may be less) – performance is satisfactory as long as does not exceed 100% PBC 1 and 2 data come from the Fisheries Information Management System (FIMS). However, data for PBC 3 come from a Data source/ Agency different system (Tufman). Tufman data has a lag so is only available for the previous year. Verification agent (auditing firm) Verification Entity 1. The independent auditor completes the DLI verification based on data from FIMS and Tufman. The auditor verifies Procedure only fishing data from FIMS and Tufman. This is a yes/no (met/not met) target, Tuvalu have either met or not met the percentage targets (must be less than 100%). xxvi The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) 2. When the auditor has determined that Tuvalu has met all DLIs, the full SDR ceiling amount allocated to that year becomes available. 3. The World Bank Financial Management Specialist then completes an eligible expenditure review. The FM Specialist checks how much the implementing agency has spent within the Tuvalu fiscal year that fits the definition of DLI expenditure up to the SDR ceiling. The DLI year definitions are outlined below. DLI Report and Assurance Report Eligible expenditure period Verification of fishing data during the fiscal year (as assessed targets (as assessed by the by WB FM Specialist) verification agent) PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2015 and PBC 3 for Year 1 2015 between April 20, 2015 – the year ended December 31, December 31, 2015 2014 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2016 and PBC 3 for Year 2 2015/2016 between January 1, 2016 – the year ended December 31, December 31, 2016 2015 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2017 and PBC 3 for Year 3 2016/2017 between January 1, 2017 – the year ended December 31, December 31, 2017 2016 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2018 and PBC 3 for Year 4 2017/2018 between January 1, 2018 – the year ended December 31, December 31, 2018 2017 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2019 and PBC 3 for Year 5 2018/2019 between January 1, 2019 – the year ended December 31, December 31, 2019 2018 xxvii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2020 and PBC 3 for Year 6 2019/2020 between January 1, 2020 to the year ended December 31, December 31, 2020 2019 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2021 and PBC 3 for Year 7 2020/2021 between January 1, 2021 to the year ended December 31, December 31, 2021 2020 *PBC 1 and 2 data come from the Fisheries Information Management System (FIMS). However, data for PBC 3 come from a different system (Tufman). Tufman data has a lag so is only available for the year before. DLI_TBL_VERIFICATION PBC 2 Percent of purse seine fishing vessel days (i) used and (ii) sold in the Recipient’s waters recorded annually. Description All vessel days used are recorded as such according to PNA criteria, e.g. vs. recording as partially or not used PBC 1 and 2 data come from the Fisheries Information Management System (FIMS). However, data for PBC 3 come from a Data source/ Agency different system (Tufman). Tufman data has a lag so is only available for the previous year. Verification agency (auditing firm). Verification Entity 1. The independent auditor completes the DLI verification based on data from FIMS and Tufman. The auditor verifies only fishing data from FIMS and Tufman. This is a yes/no (met/not met) target, Tuvalu have either met or not met the percentage targets (must be less than 100%). 2. When the auditor has determined that Tuvalu has met all DLIs, the full SDR ceiling amount allocated to that year Procedure becomes available. 3. The World Bank Financial Management Specialist then completes an eligible expenditure review. The FM Specialist checks how much the implementing agency has spent within the Tuvalu fiscal year that fits the definition of DLI expenditure up to the SDR ceiling. The DLI year definitions are outlined below. xxviii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) DLI Report and Assurance Report Eligible expenditure period Verification of fishing data during the fiscal year (as assessed targets (as assessed by the by WB FM Specialist) verification agent) PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2015 and PBC 3 for Year 1 2015 between April 20, 2015 – the year ended December 31, December 31, 2015 2014 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2016 and PBC 3 for Year 2 2015/2016 between January 1, 2016 – the year ended December 31, December 31, 2016 2015 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2017 and PBC 3 for Year 3 2016/2017 between January 1, 2017 – the year ended December 31, December 31, 2017 2016 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2018 and PBC 3 for Year 4 2017/2018 between January 1, 2018 – the year ended December 31, December 31, 2018 2017 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2019 and PBC 3 for Year 5 2018/2019 between January 1, 2019 – the year ended December 31, December 31, 2019 2018 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2020 and PBC 3 for Year 6 2019/2020 between January 1, 2020 to the year ended December 31, December 31, 2020 2019 xxix The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2021 and PBC 3 for Year 7 2020/2021 between January 1, 2021 to the year ended December 31, December 31, 2021 2020 *PBC 1 and 2 data come from the Fisheries Information Management System (FIMS). However, data for PBC 3 come from a different system (Tufman). Tufman data has a lag so is only available for the year before. DLI_TBL_VERIFICATION PBC 3 Percent purse seine tuna catch within Tuvalu’s waters encompassed within the VDS All purse seine fishing vessel days in the EEZ are included in the PAE, including those used in archipelagic waters, this Description includes all tuna caught in the country’s waters, i.e., ensuring there is no illegal and unreported catch. PBC 1 and 2 data come from the Fisheries Information Management System (FIMS). However, data for PBC 3 come from a Data source/ Agency different system (Tufman). Tufman data has a lag so is only available for the previous year. Verification agency (auditing firm). Verification Entity 1. The independent auditor completes the DLI verification based on data from FIMS and Tufman. The auditor verifies only fishing data from FIMS and Tufman. This is a yes/no (met/not met) target, Tuvalu have either met or not met the percentage targets (must be less than 100%). 2. When the auditor has determined that Tuvalu has met all DLIs, the full SDR ceiling amount allocated to that year becomes available. 3. The World Bank Financial Management Specialist then completes an eligible expenditure review. The FM Specialist Procedure checks how much the implementing agency has spent within the Tuvalu fiscal year that fits the definition of DLI expenditure up to the SDR ceiling. The DLI year definitions are outlined below. DLI Report and Assurance Report Eligible expenditure period Verification of fishing data during the fiscal year (as assessed targets (as assessed by the by WB FM Specialist) verification agent) xxx The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) PBC 1, and 2 for the year ended Eligible expenditure incurred December 31, 2015 and PBC 3 for Year 1 2015 between April 20, 2015 – the year ended December 31, December 31, 2015 2014 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2016 and PBC 3 for Year 2 2015/2016 between January 1, 2016 – the year ended December 31, December 31, 2016 2015 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2017 and PBC 3 for Year 3 2016/2017 between January 1, 2017 – the year ended December 31, December 31, 2017 2016 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2018 and PBC 3 for Year 4 2017/2018 between January 1, 2018 – the year ended December 31, December 31, 2018 2017 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2019 and PBC 3 for Year 5 2018/2019 between January 1, 2019 – the year ended December 31, December 31, 2019 2018 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2020 and PBC 3 for Year 6 2019/2020 between January 1, 2020 to the year ended December 31, December 31, 2020 2019 PBC 1 and 2 for the year ended Eligible expenditure incurred December 31, 2021 and PBC 3 for Year 7 2020/2021 between January 1, 2021 to the year ended December 31, December 31, 2021 2020 xxxi The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780) *PBC 1 and 2 data come from the Fisheries Information Management System (FIMS). However the data for PBC 3 comes from a different system (Tufman). Tufman data has a lag so is only available for the previous year. . xxxii The World Bank Pacific Islands Regional Oceanscape Program - Tuvalu (P151780)