Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD3943 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF SDR1.90 MILLION (US$ 2.5 MILLION EQUIVALENT) INCRISIS RESPONSE WINDOW RESOURCES TO TUVALU FOR THE MARITIME INVESTMENT IN CLIMATE RESILIENT OPERATIONS PROJECT UNDER THE PACIFIC CLIMATE RESILIENT TRANSPORT PROGRAM, SERIES OF PROJECTS JUNE 1, 2020 Transport Global Practice East Asia And Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective {April 30, 2020}) Currency Unit = United States Dollar SDR 1 = US$1.3664 FISCAL YEAR October 1 – September 30 Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Regional Director: Ranjit J. Lamech Practice Manager: Almud Weitz Task Team Leader(s): Nana Soetantri ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AF Additional Financing BOQ Bill of Quantity CERC Contingent Emergency Response Component CRW Crisis Response Window DMS Department of Marine Services DPW Department of Public Works EAP Emergency Action Plan FTCF Fast Track COVID-19 Facility GoTv Government of Tuvalu IDA International Development Association IP Implementation Progress ISDS Integrated Safeguards Data Sheet MICRO Maritime Investment in Climate Resilient Operations Project MOF Ministry of Finance MPWIELMD Ministry of Public Works, Infrastructure, Environment, Labour, Meteorology and Disaster OM Operations Manual PDO Project Development Objective PID Project Information Document PMU Project Management Unit TC Tropical Cyclone TOIMIP Tuvalu Outer Island Maritime Infrastructure Project TOR Terms of Reference USD United States Dollar WHO World Health Organization TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 6 II. DESCRIPTION OF ADDITIONAL FINANCING ...................................................................... 8 III. KEY RISKS ..................................................................................................................... 10 IV. APPRAISAL SUMMARY .................................................................................................. 12 V. WORLD BANK GRIEVANCE REDRESS .............................................................................. 14 VI SUMMARY TABLE OF CHANGES ..................................................................................... 15 VII DETAILED CHANGE(S) .................................................................................................... 15 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 20 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) BASIC INFORMATION – PARENT (Maritime Investment in Climate Resilient Operations - P161540) Country Product Line Team Leader(s) Tuvalu IBRD/IDA Nana Sri Retnaningdiyah Hastut Soetantri Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P161540 Investment Project IEAT1 (9381) EACNF (6680) Transport Financing Implementing Agency: Ministry Of Public Works, Infrastructure, Environment, Labour, Meteorology, and Disaster ADD FIN TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Original Environmental Approval Date Closing Date Guarantee Current EA Category Assessment Category Expiration Date 18-Dec-2018 31-Jan-2024 Partial Assessment (B) Partial Assessment (B) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [✓] Contingent Emergency Response Component (CERC) [✓] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) Page 1 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Development Objective(s) To improve the climate resilience of Nanumaga harbor and Funafuti port, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. Ratings (from Parent ISR) RATING_DRAFT_NO Implementation Latest ISR 21-Mar-2019 26-Sep-2019 05-Apr-2020 Progress towards achievement of PDO S MS MS Overall Implementation Progress (IP) S MS MS Overall Safeguards Rating S S S Overall Risk S S S BASIC INFORMATION – ADDITIONAL FINANCING (Maritime Investment in Climate Resilient Operations Additional Financing - P174089) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P174089 Maritime Investment in Cost Overrun Yes Climate Resilient Operations Additional Financing Financing instrument Product line Approval Date Investment Project IBRD/IDA 05-Jun-2020 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 31-May-2024 No Is this a regionally tagged project? No Page 2 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Financing & Implementation Modalities Child [✓] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [✓] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [✓] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 20.00 0.84 18.98 4.2 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Maritime Investment in Climate Resilient Operations Additional Financing - P174089) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 20.00 2.50 22.50 Total Financing 20.00 2.50 22.50 of which IBRD/IDA 20.00 2.50 22.50 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 Page 3 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) World Bank Group Financing International Development Association (IDA) 2.50 IDA Grant 2.50 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Tuvalu 0.00 2.50 0.00 2.50 Crisis Response Window 0.00 2.50 0.00 2.50 (CRW) Total 0.00 2.50 0.00 2.50 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Transport Contributing Practice Areas Health, Nutrition & Population Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Page 4 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) PROJECT TEAM Bank Staff Name Role Specialization Unit Nana Sri Retnaningdiyah Team Leader (ADM Transport IEAT1 Hastut Soetantri Responsible) Procurement Specialist (ADM Zhentu Liu Procurement EEAR2 Responsible) Financial Management Evaron Doris Masih Financial EEAG2 Specialist (ADM Responsible) Nathalie Suzanna Noella Environmental Specialist (ADM Environmental SEAE1 Staelens Responsible) Social Specialist (ADM Rachelle Therese Marburg Social SEAS1 Responsible) Caroline Ruth Holo Team Member Transport EACNF Chanin Manopiniwes Team Member Economist IEAT1 Duangrat Laohapakakul Team Member Legal LEGES Jason Yeung Sing Sze Team Member Transport EACNF Kara Mouyis Team Member EACNF Loren Jayne Atkins Team Member Legal LEGES Maude Ruest Archambault Team Member HEAHN Toufiq Ahmed Team Member EACNF Extended Team Name Title Organization Location Page 5 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Background 1. This Project Paper seeks the approval of the Executive Directors for an additional International Development Association (IDA) grant in the amount in the amount of SDR1.90 million (US$2.5 million equivalent) to the Tuvalu Maritime Investment in Climate Resilient Operations (MICRO) Project (MICRO, P161540). The IDA resources are from the Fast Track COVID-19 Facility (FTCF) under the Crisis Response Window (CRW). This Additional Financing (AF) request is for gap financing to replenish the funds released by this Contingency Emergency Response Component (CERC) to enable continuation of the Project. 2. MICRO, with a total financing of SDR14.5 million (US$20 million equivalent), was approved on December 18, 2018 and became effective on April 9, 2019. The project is financed by US$20 million national IDA. The project has four components: Component 1: Sectoral and Planning Tools; Component 2: Climate Resilient Maritime Infrastructure Solutions; Component 3: Strengthening the Enabling Environment; and, Component 4: CERC. 3. An outbreak of the coronavirus disease (COVID-19) caused by the 2019 novel coronavirus (SARS-CoV-2) has been spreading rapidly across the world since December 2019, following the diagnosis of the initial cases in Wuhan, Hubei Province, China. Since the beginning of March 2020, the number of cases outside China has increased thirteenfold and the number of affected countries has tripled. On March 11, 2020, the World Health Organization (WHO) declared a global pandemic as the coronavirus rapidly spread across the world. As of May 26, 2020, WHO reported 5,451,532 confirmed cases, 345,752 confirmed deaths, in 217 countries and territories. 4. This AF is being prepared under the global framework of the World Bank COVID-19 Response financed under the FTCF. In response to the WHO declaration of the global pandemic, Tuvalu has triggered the CERC of the MICRO to address urgent COVID-19 emergency response and preparedness needs. Tuvalu declared a national state of emergency on March 20, 2020 and has applied the CERC funding for support to the Tuvalu Talaaliki Plan, the Government of Tuvalu (GoTv)’s COVID-19 preparedness and response plan. More specifically, activities to be funded through the CERC aim to: (i) strengthen Tuvalu’s health system and services through the procurement of medical equipment and supplies; and (ii) support GoTv’s efforts to manage fuel stocks for essential services delivery and response efforts since freight restrictions due to COVID-19 are likely to affect Tuvalu’s capacity to regularly purchase fuel. The availability of funds in the CERC has enabled the rapid release of funds for this purpose. There are currently no confirmed cases of COVID-19 in Tuvalu. As of April 2020, there are no confirmed cases of COVID-19 in Tuvalu, and stringent travel restrictions are currently in place 5. The triggering of the CERC has resulted in a financing gap for the MICRO Project. This AF replenishes the funds released by the CERC to enable continuation of the project. This AF also includes a Level 2 restructuring to formalize the activation of the CERC and revise the results framework for the project to add the intermediate indicator related to the CERC to capture the timeliness of the procurement of items as included in the CERC Emergency Action Plan (EAP). The current Project Development Objective (PDO) remains achievable. 6. Government of Tuvalu has received assistance from a number of development partners for investments in the maritime sector including the Asian Development Bank (ADB), the Green Climate Fund, the United National Development Program (UNDP), the Secretariat of the Pacific Community (SPC), and the Government of New Page 6 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Zealand. For the CERC component, the Task Team engaged and coordinated with other health development partners to encourage efficient use of all available emergency funding and ensure all COVID-19 preparedness and response pillars were covered by other partners based on respective strengths and mandate. The task team will continue this collaboration to share lessons throughout implementation. The role of these partners in responding to COVID-19 and the maritime sector in Tuvalu has been taken into account in the design of this Additional Financing (AF). B. Current Status of the Project 7. Summary Information on the Parent Project. The project has made some meaningful progress since effectiveness, despite experiencing setbacks due to: (i) challenges in balancing the technical and safeguards requirement for the Nanumanga port design; (ii) capacity constraints in managing procurement procedures; (iii) changes in the government priorities as a result of the Tuvalu General Election in September 2019; and (iv) coastline damage caused by Tropical Cyclone Tino in January 2020, which resulted in the need to update detailed design drawings and the Bill of Quantity (BOQ). Despite these setbacks the Project has been rated ‘Moderately Satisfactory’ toward achievement of the Project Development Objective as well as for Implementation Progress. The last implementation support and supervision mission was carried out by the World Bank in country on November 14-19, 2019. Since February 2020 travel to Tuvalu has been restricted due to the COVID-19 pandemic. However, the World Bank team has been conducting remote implementation support and supervision through email, audio and video conference. There are no overdue financial audits, and all legal covenants are complied with. 8. A joint ADB-World Bank Project Management Unit (PMU) was established to implement the outer island projects, with the objective to adopt joint/parallel procurement for civil works for the outer island projects. This approach was adopted to provide cost savings to GoTv with regards to the high mobilization costs. The joint PMU utilizes the existing arrangements established under the ADB Tuvalu Outer Island Maritime Infrastructure Project (TOIMIP), including the utilization of the existing program manager and accountant. Key national project management staff remain in Tuvalu, including the project manager and the program accountant. 9. As of April 20, 2020, terms of reference (TOR) for consultants to be hired under Component 1 (GIS Consultant and Health Outreach Campaign Consultant) have been prepared and advertised. Detailed designs to improve the resilience of the maritime sector to climate-related hazards and/or extreme events at Nanumanga and Funafuti Port, under Component 2, are almost completed and the tendering process for construction is expected to commence with the pre-bid meeting and contract award to be finalized after travel restrictions have been lifted. Safeguards and Procurement consultants have been hired in the joint PMU (funded by the World Bank) to assist with project implementation. Terms of Reference for a Maritime Advisor are being prepared and the position is expected to be advertised by the end of May 2020 (Component 3). 10. Rationale for AF. The triggering of the CERC has resulted in a financing gap for the MICRO Project. Despite the disruption caused by the global COVID-19 pandemic the original project activities remain relevant priorities for GoTv, thus this AF replenishes the uncommitted funds which were reallocated to the CERC to enable continuation of the project and achievement of the development objective. Page 7 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) 11. Triggering Paragraph 12, Section III of the World Bank Policy. As the funds for this AF are being sourced from the FTCF, Paragraph 12, Section III of the World Bank Policy has been triggered to allow processing of the AF following the condensed procedures for situations of urgent need. However, as the AF is for replenishment of funds reallocated from the original project components, and the mandatory direct payment process did not apply to the original project, an exemption from the mandatory direct payment has been approved by World Bank Management 1. II. DESCRIPTION OF ADDITIONAL FINANCING 12. This Additional Financing (AF) will address the financing gap created by triggering the CERC and the ex- post level two restructuring of the project will formalize the activation of the CERC and ensure the activities financed can be monitored. 2 The scope of the changes is as follows: a. No changes are proposed to the PDO or the theory of change. b. No changes are proposed to the components of the project. c. US$2.5 million equivalent of additional financing will be provided to Disbursement Category 1 (Component 2) to bridge the financing gap created by the reallocation of uncommitted funds from this category to the CERC to support Tuvalu’s preparedness and response to the COVID-19 pandemic. d. The results framework will be updated, including the addition of a new intermediate-level indicator: “CERC-related procurement packages completed on time as per the procurement plan (percentage)” to monitor effectiveness of the CERC. e. Retroactive financing in an amount not to exceed SDR 870,000 (US$1.2 million) will be included, to allow for payments made prior to signing of the Financing Agreement of the Project, but on or after February 7, 2018, for Eligible Expenditures under Category (1) of Table 2 below. f. The implementation arrangements for the Project are updated to reflect the Government of Tuvalu’s revised ministerial arrangements. Table 1. Changes to Component Allocations Component Original Allocations (US$ mil. Revised Allocations (US$ mil. equivalent) equivalent) National IDA FCTF National IDA FCTF Component 1: Sectoral and Planning Tools 0.05 0.00 0.05 0.00 Component 2: Climate Resilient Maritime 16.5 0.0 14.00 2.50 Infrastructure Solutions Component 3: Strengthening the Enabling 3.45 0.0 3.45 0.00 Environment Component 4: Contingent Emergency 0.00 0.0 2.50 0.00 Response TOTAL BY SOURCE 20.0 0.0 20.0 2.50 TOTAL 20.0 22.5 1 Approval granted May 8, 2020 2 Despite Section VI. ‘Summary Table of Changes’ the ex-post restructuring of MICRO does not seek approval for any change in the safeguards policies. The only change has been to update the text in relevant sections of the ISDS to include additional information related to COVID-19 Page 8 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Table 2. Eligible Expenditures Category Amount of the Amount of the Amount of the Percentage of Financing Original Financing Additional Grant Expenditures to be Allocated Allocated Allocated Financed (expressed in SDR) (expressed in SDR) (expressed in SDR) (inclusive of Taxes) Before reallocation After reallocation (1) Goods, works, non- 13,630,000 12,600,000 1,900,000 100% consulting services, consulting services, operating costs and trainings and workshops for the Project (2) Refund of Preparation 870,000 0 Amount payable Advance pursuant to Section 2.07 (a) of the General Conditions (3) Emergency Expenditures 0 1,900,000 0 100% under Part 4 of the Project TOTAL AMOUNT 14,500,000 14,500,00 1,900,000 13. Implementation Arrangements. The project documents will be updated through this restructuring to reflect the Government of Tuvalu’s recent ministerial changes. The Ministry of Public Works, Infrastructure, Environment, Labour, Meteorology and Disaster (MPWIELMD) has succeeded the now retired Ministry of Communications and Transport as the implementing agency (IA). A Joint Task Force 3 was established in February 2015 to oversee the preparation and implementation of TOIMIP. The membership of the Joint Task Force has been updated, and will now be chaired by the Chief Executive Officer of the Ministry of Public Works, Infrastructure, Environment, Labour, Meteorology and Disaster, and be comprised of representatives from, inter alia, the Ministry of Local Government, Ministry of Finance, Ministry of Transport, Energy and Tourism, Department of Public Works, Department of Marine Services and Department of Environment. In May 2018, its mandate was expanded through a Memorandum of Understanding between GoTv and ADB to include oversight to both MICRO and TOIMIP. 14. Retroactive Financing. A Project Preparation Advance (PPA) of US$1.2 million was included as part of the Project to conduct the necessary preparatory economic, environmental and design studies for MICRO. Delay in submissions of withdrawal applications during project preparation stage has resulted in unsuccessful documentation of eligible expenditures under the PPA and the PPA account has been closed. Retroactive financing of SDR870,000 (equivalent to US$1.2 million at the time of negotiation) has been included as part of this restructuring and AF to allow for payments made against eligible expenditures prior the signing of the Financing 3 The Joint Task Force is chaired by the CEO, Ministry of Public Works, Infrastructure, Environment, Labour, Meteorology and Disaster (MPWIELMD) and its memberships are the CEOs from Ministry of Local Government, Ministry of Finance, Ministry of Transport Energy and Tourism, Directors from Department of Public Works, Department of Marine Services and Department of Environment. Page 9 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Agreement but on or after February 7, 2018; this retroactive financing will enable documentation under the follow-on project of eligible expenditures incurred during project preparation. 15. COVID-19 related activities financed through the CERC will be implemented following the processes outlined in the CERC Operations Manual approved by the World Bank on May 4, 2020. CERC activities will be managed by the Joint ADB-World Bank PMU, with oversight from the COVID-19 Joint Task Force 4, and in close collaboration with the Ministry of Health (MOH), who is responsible for providing technical advice. The MICRO Project Manager, with support from international procurement and safeguards consultants, will be responsible for planning, financial management, procurement, safeguards, monitoring and evaluation for the activities identified in the CERC EAP. MOH will be responsible for asset delivery, management, storage (for consumables) and for registration up to date. All new medical equipment will be included in MOH’s and/or MOF’s asset register on acquisition. Assets should be entered in the register when they are purchased and installed/received and removed when they are written off. An updated register, confirmed by stock-take, will be submitted to MOF as part of the annual workplan and budget. 16. Revised Results Framework. As CERC activities mainly involve the procurement of health-related equipment and supplies, an indicator that is within the IA’s mandate to monitor, report, and evaluate will be added as a new intermediate indicator, to capture the timeliness of the procurement process for CERC activities : “CERC-related procurement packages completed on time as per the procurement plan (percentage)”. 17. Updated IDA General Conditions. The Financing Agreement for the project will be amended to reflect both the original IDA grant and the AF, and to apply the “International Development Association General Conditions for IDA Financing, Investment Project Financing”, dated December 14, 2018, which is the current version of the IDA General Conditions, to the Financing Agreement. 18. Alignment with the World Bank’s Strategic Priorities. The proposed changes remain aligned with World Bank Group strategic priorities, particularly the WBG’s mission to end extreme poverty and boost shared prosperity, by building resilience to extreme weather events and improving the reliability of the transport network. The project remains consistent with the World Bank’s Regional Partnership Framework for Nine Pacific Island Countries (FY2017-FY2023) (Report No 120479). The Regional Partnership Framework defines the follow four focus areas: (i) fully exploiting the available economic opportunities; (ii) enhancing access to employment opportunities; (iii) protecting incomes and livelihoods; and, (iv) strengthening the enablers of growth and opportunities. The investments and reforms included within the Project continue to contribute to enhancing access to employment opportunities and social services, which will help protect incomes and allow people to exploit the available economic opportunities. This AF allows the Project to continue to deliver these activities in alignment with the Regional Partnership Framework. Finally, the scope of the activities identified in the EAP and financed through the CERC are fully aligned with the objectives of the Fast Track COVID-19 Facility. III. KEY RISKS 19. The Overall risk rating remains Substantial. The risks to the Project remain largely the same as when 4The COVID-19 Task Force is led by the Prime Minister, and the membership consists of Cabinet Ministers, Leaders of Sub- committees, Chief of Public Health, Commissioner of Police, Kaupule, TANGO, Red Cross, Disaster Coordinator, All CEOs, and the Director of PWD. Page 10 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) assessed during the preparation of the original Project. The main concerns remain: (i) the technical design of the project; (ii) fiduciary risks; (iii) environmental and social risks; and, (iv) stakeholder related issues. 20. The Technical Design risk remains substantial. The technical design of the project includes the construction of maritime infrastructure in a remote island location, which will be logistically complex to manage. The project has been mitigating this risk by working closely with the ADB and building on lessons learned from their works in Nukulaelae. The project is in its early stages of implementation, the technical design team has been facing challenges in finding a suitable design for Nanumanga, insofar that the designs had to be updated several times to accommodate the volatile climate condition. The latest design amendment was done in February 2020 to accommodate the changes in coastal line due to Tropical Cyclone (TC) Tino. The low capacity environment, remoteness of the project location and the uncertainty faced by climate change, means that the risk resulting from the technical design of the project remains substantial. The project has been drawing on the lessons learned from the ADB’s project in Nukulaelae, to mitigate some of the risks. This includes potentially using prefabricated structure manufactured out of country and shipped for installation on site. In addition, the COVID-19 pandemic and the triggering of CERC have added some complexities in project implementation due to: (i) inability to conduct in-country implementation support mission; and (ii) increase in number of ministries involved, specifically to provide technical input on CERC activities. To ensure continuity of World Bank’s implementation support to the IA, the World Bank team will continue to conduct remote implementation support and supervision through email, audio and video conference. A specialist from the World Bank’s Health Team will assist with supervision and implementation support for the CERC component activities. Additional consultants will also be hired by PMU to assist with GIS, Health Outreach Campaign, GBV, and Contract Management. 21. The Fiduciary risk remains substantial. Limited institutional capacity of the IA and a small pool of local expertise in procurement and financial management (FM) poses a substantial fiduciary risk for the project. However, an international procurement specialist has been hired as well as a project accountant in the PMU. While an international procurement specialist has been hired in the PMU, failed or delayed procurement remains a major procurement risk to the project due to the lack of adequate global supply of essential medical consumables and equipment needed to address emergency COVID-19 response (especially in the supply chain for medical supplies). Travel restrictions will also affect the delivery of supplies and mobilization of contractors. However, MPWIELMD, will take actions to mitigate these risks with the support from all the related parties. Flexibilities of procurement arrangements for COVID-19 response will be used to streamline procurement processes and direct payments will be used to limit the number of transactions. 22. The overall environmental and social risks for the Project remain substantial. The environmental and social risk remain rated as substantial as the proposed works on Nanumaga are located in a sensitive environment where both the environmental and social aspects need to be carefully managed in accordance with the Environmental and Social Management Plan (ESMP) mitigation measures. The stakeholder associated risks are substantial, with various stakeholders involved in the sector requiring careful coordination and management. Consultations have been undertaken with relevant stakeholders and the project has developed a Stakeholder Engagement and Consultation Plan (SECP), which will be implemented throughout the project. A safeguards specialist has been hired to provide additional support in the PMU. Environmental and social risks associated with the CERC activities are related to fuel handling, medical equipment use, waste disposal, and infection prevention. Actions and measures to address these risks are described in the CERC Environmental and Social Management Framework (ESMF). The CERC activities will be implemented by the MICRO PMU with technical support from MOH. The PMU safeguards adviser will ensure compliance with the CERC ESMF and its associated management Page 11 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) plans, whilst building capacity within MOH to manage safeguards aspects of their daily operations. IV. APPRAISAL SUMMARY 23. The AF is for topping up the financing gap created by triggering the CERC to respond to COVID-19 there are no changes of substance to the appraisal summary. A. Economic and Financial (if applicable) Analysis 24. The economic and financial analysis for the AF remains the same as the original project. The SDR 1.9 million (US$2.5 million equivalent) of additional financing will be provided to disbursement Category 1 (Component 2) to bridge the financing gap created by the reallocation of uncommitted funds to the CERC, and there will therefore be no changes to the original scope of the Project or activities originally envisaged. B. Technical 25. The technical analysis for the AF remains the same as the original project. For the activities under CERC, these activities reflect MOH (and GoTv’s) efforts to implement the Tuvalu Talaaliki Pan. Activities identified by MOH as priorities for the health sector focus on the procurement of medical supplies and equipment aimed at: (i) supporting the health sector to be prepared, and respond to, the possible introduction of COVID-19 in Tuvalu; and (ii) ensuring MOH has the capacity to maintain and expand routine and emergency health services for the population. The activities financed through the CERC will complement other development partners’ assistance, and support efforts to strengthen Tuvalu’s health sector overall, boosting the country’s capacity to meet the needs of the population into the future and reducing the risk of additional pressures on the health system from potential COVID-19 infections. To ensure sustainability of the equipment purchased through the CERC, MOH and MOF will ensure an adequate maintenance budget is included in the annual MOH budget appropriation. The provision of fuel will support GoTv’s efforts to manage fuel stocks which are essential for services delivery and response efforts since freight restrictions due to COVID-19 will affect Tuvalu’s capacity to regularly purchase fuel. C. Financial Management 26. The current Financial Management (FM) and disbursement arrangements for the Project will apply and no changes are proposed as part of the AF. This includes the existing PMU structure consisting of a project accountant to carry out the project’s FM and disbursement functions with regards to funds flow and accountabilities for financial reporting. The existing project accountant will continue to be responsible for monitoring and reporting of the status of project funds including AF. The financial reporting and audit requirements remain unchanged. Semester Interim Financial Reports (IFRs) are required to be submitted to the World Bank no later than 45 days after the end of each semester, including status of overall remaining funds. The project will be audited on an annual basis with submission to the World Bank no later than six months after the end of each fiscal year and subject to disclosure as per the World Bank’s Policy on Access to Information. There is no outstanding IFR or audit report under the Project. 27. No separate designated account will be established for the CERC component and the existing designated account already established under the project will be used to receive funds from both the original and the Page 12 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) additional financing; the ceiling of the current DA and minimum application size will remain the same. However, the Disbursement and Financial Information Letter will be amended to include both IDA original and additional financing, and updates on the DA arrangements. D. Procurement 28. There are no changes to the procurement arrangements for the proposed AF. The project will continue to follow the World Bank Procurement Regulations for IPF Borrowers dated July 2016, revised November 2017 and August 2018. The Systematic Tracking of Exchanges in Procurement application will be used to prepare, clear, and update procurement plans and conduct all procurement transactions for the AF activities. Accordingly, all the procurement activities for the AF will be entered into, tracked and monitored online through the system. On the ground support will be provided by the PMU’s Procurement Specialist while the World Bank is also available to provide further support. E. Social (including Safeguards) 29. The original project was classified as Category B. There is no change to the classification, as the proposed physical activities funded by the CERC are limited to the acquisition and use of goods, and therefore no land access issues are anticipated. Significant social benefits are expected in terms of improved access to medical care for vulnerable populations; improved health outcomes for Tuvaluans; improved accessed to health care in the outer islands through the provision of fuel for transport; and improved prevention and management of COVID-19. There is no change to the original project as a result of the additional finance. 30. Extensive national and state stakeholder consultations, workshops and formal and informal meetings were undertaken during the preparation of the MICRO ESMF, including for the CERC, as well as during the preparation of the CERC ESMF. The MICRO Stakeholder Engagement Plan (SEP) will be updated on activation of the CERC to address the additional stakeholders related to the CERC activities. The GRM developed for MICRO has been updated for the needs of the CERC. 31. Citizen Engagement. The Project will continue to monitor citizen engagement approach through the indicator noted in the 2014 Guidance Note on Results Framework and Monitoring & Evaluation: grievances registered related to delivery of project benefits that are addressed (percentage). In addition, as noted, consultations were held during preparation to help inform the Project, with the records contained in the MICRO ESMF, as well as the CERC ESMF. Information on the GRM and the SEP is supplied in the ESMF. 32. Gender. The World Bank Gender Strategy (FY16 – FY23) and the Transport Global Practice Note (FY17 – FY20) seek to enhance women’s agency and reduce gender gaps. MICRO supports women and will address two 5 gender-focused issues including: (i) enhancing employment opportunities for women; and, (ii) strengthening GBV and human trafficking prevention and response. The majority of the female labor force in Tuvalu (78 percent) works in the subsistence economy, with only 36 percent of the non-agricultural workforce women. Moreover, several women are affected by gender based violence, with 34% of Tuvaluan women reported ever having experienced either physical or sexual violence (UNIFEM Pacific Sub-Regional Office. 2010). However, survivors often do not get professional help, according to national data 51% of women who have experienced violence seek 5 Transport Global Practice’s Business Plan for FY17-20 to support the implementation of the World Bank Group Gender Strategy. Page 13 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) help, 18% never told anyone, and 20% told someone (TDHS, 2007). Among all women who sought help, 65% sought help from their own family, 16% from a friend or neighbor, 15% from their in-laws and only 6% sought help from the police. In 2015 6 the United Nations CEDAW Committee noted the absence of shelters and the limited availability of medical care, psychosocial counselling and legal assistance for victims. 33. To provide women with enhanced opportunities in the non-agricultural workforce, while also improving standards of care and counselling available to survivors of violence, including gender based violence, the project will provide training for women to meet the minimum standards requires under the Family Protection and Domestic Violence Act 2014 to become qualified counsellors. These activities will be monitored by intermediate results indicators measuring the number of women who receive counselling qualifications, and the number of women trained who obtain employment in counselling. By increasing the number of available and qualified counsellors, the project will ultimately target a 30% increase in the number of survivors seeking trained help. F. Environment (including Safeguards) 34. No new safeguard policies are triggered as a result of the AF and CERC and the Project is still considered Category B. The CERC component will finance the purchase and use of medical equipment and hardware, as well as fuel to support transport between islands. Screening of environmental and social issues indicates that the key risks relate to the use and disposal of equipment and equipment packaging relating to infection of users or patients, and infection of waste handlers. A stand-alone ESMF to address CERC activities has been prepared which includes measures to control the environmental and social risks of the use and disposal of medical equipment, and fuel management. The ESMF was disclosed on May 7, 2020. Mitigation measures include use of procedures for medical waste handling and disposal, including training for workers; infection prevention and control procedures for health care workers; adequate procedures for fuel transport and spill prevention; and training for staff on the use of equipment and hardware. V. WORLD BANK GRIEVANCE REDRESS 35. Communities and individuals who believe that they are adversely affected by a World Bank supported project may submit complaints to existing project-level grievance redress mechanisms or the World Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the World Banks’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of World Bank non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org 6https://evaw-global-database.unwomen.org/- /media/files/un%20women/vaw/country%20report/oceania/tuvalu/tuvalu%20cedaw%20co.pdf?vs=5149 Page 14 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) VI SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Reallocation between Disbursement Categories ✔ Safeguard Policies Triggered ✔ Implementing Agency ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Disbursements Arrangements ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Component 1: Sectoral and 0.05 Component 1: Sectoral 0.05 Spatial Planning Tools and Spatial Planning Tools Page 15 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Component 2: Climate 16.50 Component 2: Climate 16.50 Resilient Maritime Resilient Maritime Infrastructure Solutions Infrastructure Solutions Component 3: 3.45 Component 3: 3.45 Strengthening the Enabling Strengthening the Envrionment Enabling Envrionment Component 4: Contingency 0.00 Revised Component 4: 2.50 Emergency Response Contingency Emergency Response TOTAL 20.00 22.50 REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed REALLOCATION NEW IDA-D4100-001 | Currency: XDR iLap Category Sequence No: 1 Current Expenditure Category: GdsWrksNcsCsOC Trg Wksp 11,730,000.00 188,433.55 12,667,061.36 100.00 100.00 iLap Category Sequence No: 2 Current Expenditure Category: PPF REFINANCING 870,000.00 0.00 0.00 iLap Category Sequence No: 3 Current Expenditure Category: Emergency Exps under Pt 4 1,900,000.00 0.00 1,832,938.64 100.00 100.00 Total 14,500,000.00 188,433.55 14,500,000.00 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 0000 0.00 0.00 2018 0.00 0.00 2019 0.00 0.00 Page 16 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) 2020 0.00 0.00 2021 2,500,000.00 2,500,000.00 2022 0.00 2,500,000.00 2023 0.00 2,500,000.00 2024 0.00 2,500,000.00 2025 0.00 2,500,000.00 2026 0.00 2,500,000.00 2027 0.00 2,500,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance  Moderate  Moderate Macroeconomic  Low  Low Sector Strategies and Policies  Low  Low Technical Design of Project or Program  Substantial  Substantial Institutional Capacity for Implementation and  Moderate  Substantial Sustainability Fiduciary  Substantial  Substantial Environment and Social  Substantial  Substantial Stakeholders  Substantial  Substantial Other Overall  Substantial  Substantial Safguard_Table COMPLIANCE Change in Safeguard Policies Triggered Yes Safeguard Policies Triggered Current Proposed Environmental Assessment OP/BP Yes Yes 4.01 Page 17 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Performance Standards for Private No No Sector Activities OP/BP 4.03 Natural Habitats OP/BP 4.04 Yes Yes Forests OP/BP 4.36 No No Pest Management OP 4.09 No No Physical Cultural Resources OP/BP No No 4.11 Indigenous Peoples OP/BP 4.10 No No Involuntary Resettlement OP/BP 4.12 No No Safety of Dams OP/BP 4.37 No No Projects on International Waterways No No OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No No LEGAL COVENANTS2 LEGAL COVENANTS – Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Sections and Description OPS LEGAL CONVENANT CHILD NODATA No information available Conditions Type Description Disbursement Section III.B.1(a) of Schedule II to the Financing Agreement (a)No withdrawal shall be made for payments made prior to the Signature Date, except that withdrawals up to an aggregate amount not to exceed SDR870,000 may be made for payments made prior to this date but on or after February 7, 2018, for Eligible Expenditures under Category (1)” Section I.E.2 and section III.B of Schedule 2 to the Financing Agreement No withdrawal shall be made for Emergency Expenditures under Category (3), unless and until the Association is satisfied that: (a) the Recipient has determined that an Eligible Crisis or Emergency has occurred, has furnished to the Association a request to include said activities in Page 18 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) the Emergency Response Part in order to respond to said Eligible Crisis or Emergency, and the Association has agreed with such determination, accepted said request and notified the Recipient thereof; (b) the Recipient has ensured the preparation and disclosure of all safeguards instruments as may be required for said activities in accordance with the provisions of Section I.D.1 of this Schedule 2 and the CERC POM, the Association has approved all such instruments, and the Recipient has ensured the implementation of any actions which are required to be taken under said instruments; (c) the Recipient has ensured that the entities in charge of coordinating and implementing the Emergency Response Part have adequate staff and resources, in accordance with the provisions of the CERC POM, for the purposes of said activities; and (d) the Recipient has adopted and maintained the CERC POM, in form and substance acceptable to the Association, and the provisions of the CERC POM remain, or have been updated in accordance with the provisions of this Section I.E.2 so as to be, appropriate for the inclusion and implementation of the Emergency Response Part. Page 19 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Tuvalu RESULT NO PDO Maritime Investment in Climate Resilient Operations Additional Financing Project Development Objective(s) To improve the climate resilience of Nanumaga harbor and Funafuti port, and in the event of an Eligible Crisis or Emergency, to provide an immediate response to the Eligible Crisis or Emergency. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Improved climate resilience of Tuvalu’s maritime sector Climate resilient investments on Nanumaga constructed and 0.00 0.00 20.00 60.00 80.00 100.00 operational (Percentage) Reduction in cargo damage at Nanumaga (Percentage) 0.00 0.00 0.00 2.00 2.00 2.00 Climate resilient investments on Funafuti constructed and 0.00 0.00 20.00 50.00 100.00 100.00 operational (Percentage) Improved operations at Funafuti port (Amount(USD)) 0.00 0.00 50,000.00 50,000.00 50,000.00 50,000.00 Page 20 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Component 1: Sectoral and Spatial Planning Tools GIS database used to GIS database used to GIS database used to GIS database used to inform disaster preparedness and GIS database not GIS database not inform disaster inform disaster inform disaster GIS database established established established preparedness and preparedness and preparedness and response (Text) response response response Component 2: Climate Resilient Infrastructure Funafuti port paved with climate resilient design 0.00 0.00 3,000.00 6,000.00 6,000.00 6,000.00 standards (Square Meter(m2)) Roads rehablitated (CRI, Kilometers) 0.00 0.00 0.00 5.00 5.00 5.00 Roads rehabilitated - rural 0.00 5.00 (CRI, Kilometers) Energy efficiency improvements at Funafuti Port 0.00 0.00 0.00 12.00 12.00 12.00 (Megawatt hour(MWh)) Component 3: Strengthening the Enabling Environment Successful implementation of the GBV Action Plan and VAC and Trafficking Strategy No Yes Yes Yes Yes Yes (Yes/No) Number of individuals attending GBV, VAC and/or 0.00 0.00 10.00 20.00 30.00 30.00 trafficking through trainings Page 21 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 (Number) Percentage of training attendees who demonstrated improved knowledge after 0.00 0.00 60.00 60.00 60.00 60.00 GBV, VAC and/or trafficking training (Percentage) An increase in the number of surivors seeking help 0.00 0.00 5.00 10.00 20.00 30.00 (Percentage) Number of women trained who receive counselling qualifications that meet 0.00 0.00 0.00 10.00 20.00 20.00 Tuvalu’s minimum standards (Number) Number of women who obtain employment in counselling 0.00 0.00 0.00 1.00 3.00 5.00 (Number) Citizen Engagement Grievances registered related to delivery of project benefits 0.00 100.00 100.00 100.00 100.00 100.00 that are addressed (Percentage) Grievances responded and/or resolved within the stipulated 0.00 0.00 75.00 75.00 75.00 75.00 service standards (Percentage) Project-supported organization(s) publishing periodic reports on GRM and No Yes Yes Yes Yes Yes how issues were resolved [including resolution rates] Page 22 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 (Yes/No) Performance Open Contracting used to publicize procurement data and updated on a monthly No Yes Yes Yes Yes Yes basis (Yes/No) Unqualified audit with the time specified under the Legal No Yes Yes Yes Yes Yes Agreement (Yes/No) Contingent Emergency Response Component (Action: This Component is New) CERC-related procurement packages completed on time as 0.00 60.00 100.00 100.00 100.00 per the procurement plan (Percentage) Rationale: Action: This indicator is New A measure of timeliness of procurement of items in EAP for COID-19 response IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Project Every 6 Climate resilient investments on progress Project progress reports MCT months Nanumaga constructed and operational reports Page 23 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Project Every 6 progress Project progress reports MCT Reduction in cargo damage at Nanumaga months reports Project Every 6 Climate resilient investments on Funafuti progress Project progress reports MCT months constructed and operational reports Project Every 6 progress Project progress reports MCT Improved operations at Funafuti port months reports ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Project Every 6 GIS database used to inform disaster progress Project progress reports MPIE months preparedness and response reports Project Every 6 Funafuti port paved with climate resilient progress Project progress reports MPIE months design standards reports Project Every 6 progress Project progress reports MPIE Roads rehablitated months reports Every 6 Project Project Progress Reports MPIE Roads rehabilitated - rural months Progress Page 24 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Reports Project Every 6 Energy efficiency improvements at progress Project progress reports MPIE months Funafuti Port reports Project Successful implementation of the GBV Continouo Review of project progress Supervision Consultant Action Plan and VAC and Trafficking us progress reports reports Strategy Project Continuous Review of project Number of individuals attending GBV, VAC progress MPIE progress reports and/or trafficking through trainings reports Project Percentage of training attendees who Every 6 progress Project progress reports MPIE demonstrated improved knowledge after months reports GBV, VAC and/or trafficking training Quarterly reports from Service service providers to Service providers and An increase in the number of surivors Quarterly providers input into Project MPIE seeking help progress reports Project Number of women trained who receive Every 6 progress Project progress reports MPIE counselling qualifications that meet months reports Tuvalu’s minimum standards Project Every 6 Number of women who obtain progress Project progress reports MPIE months employment in counselling reports Page 25 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Continuous (Project Project web web site); site and Every 6 Project web site and Grievances registered related to delivery project MPIE months project progress reports of project benefits that are addressed progress (Project reports progress reports) Review of currency of Open Contracting used to publicize Project web Continuous data on Open MPIE procurement data and updated on a site Contracting platform monthly basis Continuous (Project web Project web site); Every site and Project web site and Grievances responded and/or resolved 6 project MPIE project progress reports within the stipulated service standards months (Pr progress oject reports progress reports) Unqualified audit with the time specified Annual Audit report Review of Audit Report MPIE under the Legal Agreement Ministry of Public Works, A measure of timeliness of Stocktake of EAP Project Infrastructure, CERC-related procurement packages procurement of items in Every 6 implementation and progress Environment, Labour, completed on time as per the EAP for COID-19 response months review of procurement reports Meteorology and procurement plan transactions Disaster Page 26 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Continuous (Project we Project web Project-supported organization(s) site); Every site and Project web site and publishing periodic reports on GRM and 6 months project MPIE project progress reports how issues were resolved [including (Project progress resolution rates] progress reports reports) ME IO Table SPACE Page 27 of 28 The World Bank Maritime Investment in Climate Resilient Operations Additional Financing (P174089) Page 28 of 28