ANNUAL REPORT 2021 Sint Maarten Recovery, Reconstruction and Resilience Trust Fund January 1 – December 31, 2021 Prepared by Sint Maarten Trust Fund Secretariat Caribbean Country Management Unit Latin America and the Caribbean Region ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 2 Table of Contents Abbreviations 3 1 Introduction 5 2 Executive Summary Annual Report 2021 7 3 SXM TF Program Strategy 12 4 Activity Summary January – December 2021 15 5 Project Preparation and Implementation Issues and Solutions 32 6 Outreach and Communications 34 APPENDICES 36 APPENDIX A Alignment of NRRP and SXM TF Activities 38 APPENDIX B Results Framework: Projects under implementation as of December 31, 2021 41 APPENDIX C Financial Overview as of December 2021 45 APPENDIX D SXM TF Governance Structure 52 ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 3 Abbreviations ACF Auxiliary Care Facility NESC Non-Governmental Employment Service Centre ASA Advisory Services and Analytics NGO Nongovernmental Organization ATRP Airport Terminal Reconstruction Project NRPB National Recovery Program Bureau BETF Bank-executed Trust Fund NRRP National Recovery and Resilience Plan CCRIF Caribbean Catastrophe Risk Insurance Facility OECD Organisation for Economic Co-operation and Development CDC Centers for Disease Control and Prevention PAHO Pan American Health Organization CDEMA Caribbean Disaster Emergency Management Agency PDO Project Development Objective CRPP Child Resilience and Protection Project PFI Participating Financial Institution CSO Civil Society Organization PJIAE Princess Juliana International Airport CSPFRP Civil Society Partnership Facility for PM&A Program Management and Administration Resilience Project PPG Project Preparation Grant DAC Development Assistance Committee R4CR Resources for Community Resilience DGTP Digital Government Transformation Project RAP Resettlement Action Plan DRF Disaster Relief Fund RCNL Red Cross Netherlands EDMP Emergency Debris Management Project RETF Recipient-executed Trust Fund EDP Emergency Disaster Preparedness Plan RFB Request for Bids EiE Education in Emergency SC Steering Committee EISTP Emergency Income Support and Training Project SENA Socioeconomic Needs Assessment EP Equipment Package SF SXM TF Strategic Framework ERP I Emergency Recovery Project I SMHDF Sint Maarten Housing Development Foundation ESIA Environmental and Social Impact Assessment SMMC Sint Maarten Medical Center ESMP Environmental and Social Management Plan SRU Social Registry Unit ESP Enterprise Support Project SWM Solid Waste Management GDP Gross Domestic Product SXM TF Sint Maarten Reconstruction, Recovery and Resilience Trust Fund GEBE Sint Maarten’s Utility Company SZV Social Health and Insurance Services HRPP Hospital Resiliency and Preparedness Project TDSR Temporary Debris Storage and Reduction ICT Information and Communication Technology TF Trust Fund ISRS Integrated Social Registry System UNICEF NL United Nations Children’s Fund Netherlands MECYS Ministry of Education, Culture, Youth and Sports VNGI VNG International MHF Mental Health Foundation VROMI Ministry of Public Housing, Spatial Planning, MSMEs Micro, Small, and Medium Enterprises Environment, and Infrastructure MSW Municipal Solid Waste VSA Ministry of Public Health, Social Development and MTR Midterm Review Labor ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 4 Introduction This report provides an overview of the activities undertaken under the Sint Maarten Reconstruction, Recovery, and Resilience Trust Fund (SXM TF) from January 1 to December 31, 2021. On September 6, 2017, Sint Maarten was severely affected strengthening of the country’s resilience to natural disas- by Hurricane Irma. The Sint Maarten Government and the ters. The SXM TF Secretariat is housed in the Caribbean World Bank estimated the catastrophic damage and Country Management Unit in the World Bank’s Latin losses at US$2.7 billion, 260 percent of Sint Maarten’s America and the Caribbean region. gross domestic product (GDP)1. In response, the Government of the Netherlands sent immediate bilateral The SXM TF’s strategic framework sets out the program’s aid, complemented by substantial private donations. support for (a) the post-hurricane recovery and reconstruction of On April 16, 2018, the SXM TF was established at the World Sint Maarten and Bank for up to €470 million, financed by the Government (b) longer-term development priorities to strengthen the of the Netherlands. The SXM TF supports a program for country’s resilience. the recovery and reconstruction of Sint Maarten and the  1 Damage refers to damage to buildings and assets. Losses due to the disruption of access to goods and services are defined as changes in economic flows and higher costs in production arising from the disaster, based on the 2018 Sint Maarten National Recovery and Resilience Plan: A Roadmap to Building Back Better. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 5 Introduction Continued To date, the SXM TF has received €438.115 million (equivalent to US$511.96 million) from the Netherlands. Activities financed out of these funds are approved by the SXM TF steering committee (SC) which consists of a representative each of Sint Maarten, the Netherlands, and the World Bank. Activities consist of recipient- executed projects implemented by the Government of Sint Maarten or its designated implementation agencies and World Bank-executed activities including hands-on implementation support, analytical work, and prepa- ration and implementation support. The National Recovery Program Bureau (NRPB) implements and coor- dinates most recipient-executed SXM TF activities on behalf of the Government of Sint Maarten. Some activities are implemented by other entities designated by the Govern- ment of Sint Maarten. The SXM TF program benefits from complemen- tary technical assistance and exper- tise provided, as appropriate, by the Government of the Netherlands and the World Bank. Sint Maarten, second most-visited port in the Caribbean, and its inter- 1. one of the four constituent countries of the Kingdom national airport served as a hub for nearby islands. of the Netherlands, The World Bank produces an annual report for each 2. is a small, high-income island country with a GDP per calendar year and a semiannual report after the closing of capita of US$29,781 in 2019. the World Bank’s fiscal year (on June 30). These reports provide an overview of results, progress, and challenges, 3. It shares its territory with the French overseas collec- for projects under implementation, projects that are being tivity of Saint Martin and hosts more than 40,000 prepared, associated analytical work, and a financial inhabitants on 16 square miles of land. overview. The current report summarizes the SXM TF’s In 2016, when tourism accounted for 45 percent of GDP main achievements, activities, results, and unaudited and 73 percent of foreign exchange, Sint Maarten had the financials from January 1 to December 31, 2021.  2 The Kingdom of the Netherlands is composed of the Netherlands, Aruba, Curaçao, and Sint Maarten (since October 10, 2010). 3 International Monetary Fund, Article IV Consultation 2021. IMF Executive Board Concludes 2021 Article IV Consultation with the Kingdom of the Netherlands - Curaçao and Sint Maarten. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 6 ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 7 Executive Summary Sint Maarten suffered from multiple shocks in 2021 with the onset of the COVID-19 pandemic, a significant economic contraction, and a subsequent complete collapse in tourism revenues. Restrictions in accessing the island isolated Sint Maarten from outside visi- tors for the first half of the year, resulting in negative implications for the economy, affecting people’s livelihoods, and disrupting supply chains which link Sint Maarten to the world economy. The COVID-19 pandemic caused an estimated 24 percent contraction of GDP in 2020. As of December 31, 2021, Sint Maarten reported 4,624 confirmed COVID-19 cases (since March 2020) and a total of 25,008 fully vaccinated persons. Due to the restrictions on global travel, internationally based Following COVID-19 precautions, several SC meetings teams worked offsite virtually. In mid-2021, as global were held in the last half of the year, in the Hague, the restrictions eased, and Sint Maarten began to recover, Netherlands, in late June 2021, and in Sint Maarten in July international consultants and NRPB staff returned to Sint 2021 and December 2021,2 to discuss the allocation for Maarten to support implementation. priorities set by the Government of Sint Maarten for the remaining resources under the SXM TF.3 A midterm review Projects were able to significantly ramp up the pace of (MTR) of the SXM TF program has been started and will be implementation in the second half of 2021 with more finalized in 2022, to inform the SC of lessons learned and teams accessing the island while following national COVID- opportunities for strengthening the program. 19 protocols. World Bank staff continued to provide support virtually during the year. As the SXM TF reaches its third year of implementation, the program is focusing on making sure that current investments are sustainable and managed adequately and Notwithstanding the challenges, the key stakeholders are trained, so that maintenance of program channeled substantial invest- infrastructure and operations are in place. The program is also working with SXM counterparts on instruments for ments and achieved significant results longer-term resilience and supporting vulnerable popula- in 2021. tions through targeted interventions.  1 International Monetary Fund, Article IV Consultation, April 2020. 2 Article issued following the December 2021 Pre-Steering Committee. 3 Outcomes of the SC of July 14, 2021, are summarized in a press statement. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 8 Executive Summary Continued Implementation Achievements The main works for the Airport Terminal Reconstruction Project (ARTP) , an investment of US$72 million, are about Program implementation advanced substantially through to begin. Additional financing of US$20 million was a broad range of partners with visible results throughout approved in December 2021 for the airport. Procurement Sint Maarten. By the end of 2021, 80 percent of SXM TF’s for the main works of the terminal reconstruction available resources were made available to Sint Maarten (Package 2) has been completed and the contract for for recipient-executed and World Bank-executed projects. works by an international firm commenced in October Ten projects are under implementation for US$333.2 2021. The project supported the airport’s operating expen- million and four projects are under preparation for US$73 ditures for most of 2021. According to current forecasts, million. Total disbursements for recipient-executed the Princess Juliana Airport Operating Company (PJIAE) projects have reached US$151.7 million, or a disbursement is not expected to request further operational expenditure rate of 45.5 percent. To date, 56 contracts were awarded support from the end of 2021, as airport revenues are to local firms and 42 contracts were made available to beginning to recover due to the partial resumption of international firms to implement project activities, mainly travel flows. in reconstruction. Tangible advancement on home repairs has been achieved A new US1$12 million Digital Transformation Project was under ERP I and the Red Cross Roof Repair Project: 592 approved in March 2021. The SC also allocated additional homes have been repaired, including 269 homes for the financing of US$45 million for the ongoing Emergency most vulnerable people in the Belvedere complex, managed Recovery Project I (ERP I). Additional financing of US$25 by the Sint Maarten Housing Development Foundation million for the Emergency Debris Management Project (SMHDF). Of the 592 homes, 109 were repaired under ERP I (EDMP) was also approved, and a further US$25 million has and another 160 home repairs were retroactively financed, been set aside for future financing under this project. 141 private homes underwent comprehensive repairs, and Additional financing of up to US$15 million has been set the roofs of 182 homes were repaired by the Red Cross aside for ERP I and US$7 million in operational costs for Netherlands (RCNL).a Eleven major emergency shelters the NRPB. were repaired ahead of the hurricane season, providing protection capacity for up to 900 people. Repairs to 3 out of 19 damaged schools are completed. Critical emer- gency equipment was delivered to the Government, including isolation units for ambulances, fire trucks, commu- nications equipment, and vehicles for various ministries. Repairs to the fire station/ambulance building and the meteorological department have begun. Under the EDMP, critical heavy equip- ment was delivered to the Ministry of Public Housing, Spatial Planning, Environment, and Infrastructure (VROMI). This equipment will allow VROMI to improve daily landfill management activities. As of the end of December, the ship salvaging Note: a The Red Cross Project was successfully completed in December 2020 ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 9 Executive Summary Continued and shoreline cleaning activity was completed success- Bank, Qredits, and Banco di Caribe) as well as support to fully and exceeded the target. All 139 shipwrecks removed build capacity and develop business plans. from the Simpson Bay Lagoon and Mullet Pond in an envi- ronmentally and occupationally safe manner. In addition, Over this reporting period, a second round of small grants 10.5 km of shoreline was cleared of debris. Waste studies was awarded to nongovernmental organizations (NGOs) and were completed to under-pin the development of a civil society organizations (CSOs) through the US$7.2 detailed reform agenda for the waste sector to run concur- million Civil Society Partnership Facility for Resilience rently with waste sector investments. A comprehensive Project (CSPFRP), also known as Resources for dialogue on specific reforms will take place between 2022 Community Resilience (R4CR), implemented by VNG and 2023. International (VNGI). To date, 24 grants amounting to over a million US dollars have been provided to 22 CSOs to After repairs and upgrades, the existing Sint Maarten improve service delivery and community resilience. A third Medical Center (SMMC) is fully functional. Key services batch of proposals are being awarded by the end of including dialysis have been expanded, and the repaired December 2021. The SXM TF also finances United Nations and upgraded roof can withstand Category 4 hurricane Children’s Fund Netherlands (UNICEF NL) for US$5 million winds. Patients are safer thanks to a new alarm and fire to support disaster preparedness and children’s psychoso- detection system and costs are lower because of a reduc- cial well-being at the school level and help strengthen child tion in overseas referrals. Construction on the new protection systems. General Hospital building is accelerating, with completion expected in early 2024. With additional financing, a At the completion of the Emergency Income Support and COVID-19 pavilion was constructed, and medical supplies Training Project (EISTP) in 2020, Component 1 supported and equipment were procured. The hospital has also almost 2,000 Sint Maarteners, of which there were 69 achieved a significant impact in reducing overseas refer- percent women with training in hospitality, and construc- rals, with substantial benefits for patients and cost tion and income support reached 60 percent of the unem- savings for the country. ployed people in Sint Maarten, thus becoming the largest program of this type in Sint Maarten.4 The project is now Since the inception of the program, SXM TF has working with the Ministry of Public Health, Social supported the insurance of Sint Maarten against tropical Development and Labor (VSA) to introduce an integrated cyclones, earthquakes, and excess rainfall under the social registry system. The team is currently preparing Caribbean Catastrophe Risk Insurance Facility (CCRIF) detailed business processes and operational manuals for and its membership in the Caribbean Disaster Emergency the proposed Social Registry Unit (SRU), and executing Management Agency (CDEMA). The additional financing services that would work along with the SRU to help approved for ERP I in 2021 will extend the coverage to enhance coordination and responsiveness of social assis- June 2023. tance in the country. Supporting small businesses has been a critical accom- New technical assistance has also been launched to plishment in 2021, given the shocks they have faced due support Sint Maarten in the design and creation of a to the economic contraction. Since the launch of the Disaster Relief Fund (DRF) and other instruments for project, 300 micro, small, and medium enterprises disaster risk financing and management. The DRF, and any (MSMEs) applied for financing under the US$35 million associated instruments would be capitalized from the re- Enterprise Support Project (ESP). Financial packages for flows of TF resources lent by the Government to the 103 firms have been approved and the remaining 80 appli- Airport for its Reconstruction, estimated in the range of cations are under review. The project provides a mix of US$ 80-90 million.The fund would boost Sint Maarten’s working capital loans and asset-recovery grants to MSMEs overall future resilience to natural disaster and other through local private sector banks (Windward Islands shocks.  4 According to the 2018 Sint Maarten Labor Force Survey, 2,296 people were officially unemployed, and the program reached 1,489 who were reported as unemployed. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 10 Executive Summary Continued The milestones and substantial impact of the program over the period are summarized in tables 2.1 and 2.2. Table 2.1 Program Commitments December 2021 P Recipient-Executed Projects High-level trust fund program milestones US$254million December 2020 December 2021 Program Commitments to Recipient-Executed Projects US$254million US$333million Program Disbursements/Commitments to Contracts US$97 million/US$65million US$151.7 million/US$139.4 million 65 Nongovernmental Implementation Partners 6 65 Table 2.2 Project Results Project Indicator Target Progress as of Progress as of December 2020 December 2021 Progress as of Emergency Income Support Participants receiving income support 1,155/670 1,960/1,350 December 2020 1,960/1,350 December 2021 and Training Project and training/number of women E Participants receiving income support 1,155/670 1,960/1,350 1,960/1,350 a Home repairs 5196 3317 4108 Emergency Recovery Project I Number of critical facilities repaired (2 police 33 3317 7 17 4108 stations, 11 shelters, radiosonde, 19 schools) 33 7 17 Water tanks repaired 4 4 Completed Irma Red Cross Roof Repair Roofs repaired 182 182 182/ 182 Completed 182/ Hospital Resiliency and Roof repairs of an existing hospital Roof installed Completed Completed Completed Preparedness H Project Roof installed Completed Completed P Overseas medical referrals reduced 45% 79% 92% target (percentage) 45% 79% exceeded 92% target Disaster Preparedness Plan and Evacuation 90% 91% exceeded 91% target Plan (percentage) 90% 91% exceeded 91% target Progress in essential upgrades of existing 100% 71% exceeded 71% hospital (percentage) 100% 71% 71% Installation of an Auxiliary Care Facility for Facility treatment of COVID-19 patients installed Completed Completed Emergency Debris Fire hotspots control improved at disposal installed Infrequent Completed Completed 2 Management E sites (baseline 30) surface res hotspots 2 M Heavy equipment delivery (front loader, 4 4 hotspots Completed bulldozer, and re support) 4 4 Completed Shipwrecks removed 109 0 139 Shoreline cleanup 10.5 km 0 10.5 km/ Completed Solid Waste Management Strategy, n.a. Completed Completed Completed Short-Term Plan for Waste Management, n.a. Completed Completed a regional market study for waste management in the Caribbean, and two pre-feasibility studies A Contract awarded and A R Contract awarded commenced and Oct 2021 R commenced Oct 2021  5 This includes 3 participating financial institutions (PFIs) of ESP, and VNGI, UNICEF, and the Red Cross. 80 CSOs 12 CSOs 22 CSOs 80 CSOs 12 CSOs 22 CSOs 6 The target for private homes has changed to 519 from 535 based on the finalized list of beneficiaries under the private home repair program. National Recovery and Reconstruction Plan, 2 5 7 Includes social housing units repaired by SMHDF. National Recovery and Reconstruction Plan, 2 5 a Completed Completed 8 a Includes by the projectCompleted Completed 269 homes for the most vulnerable people in the Belvedere complex, managed by the SMHDF, of which 109 were repaired and another 160 home repairs were retroactively financed, and 141 private homes had comprehensive repairs done. N ANNUAL N REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 11 80 CSOs 12 CSOs 22 CSOs National Recovery and Reconstruction Plan, 2 5 a Completed Completed Executive Summary Continued N Table 2.2 Project Results Continued Project Indicator Target Progress as of Progress as of December 2020 December 2021 Airport Terminal Reconstruction work on terminal building - Contract awarded Reconstruction and work commenced Oct 2021 Support for operational expenses paid to airport n.a. US$3 million US$10.92million Enterprise Support Project MSMEs with approved nancing 600 7 103 Civil Society Partnership Facility CSOs receiving grants and number 80 CSOs 12 CSOs 22 CSOs of subprojects funded 100 grants 12 grants 24 grants Advisory services and National Recovery and Reconstruction Plan, 2 5 analytics (ASA) Housing Sector Study, Public Expenditure Completed Completed Review, Tourism Action Plan, Long Term Waste Studies Note: n.a. = not applicable. Dashes in cells indicate that the project is in progress. The NRPB has hired all key staff for project implementa- inception of the TF program. These include regulatory tion and increased its capacity, with more staff allocated challenges, capacity constraints, and the limited amount to procurement, financial management, safeguards, and of qualified personnel in both the public and the private project management. A total number of 51 staff and sectors on the island. Travel restrictions imposed by consultants work for the NRPB on various projects. A COVID-19 regulations and a brief shutdown by the framework agreement, signed in 2020, is enabling the NRPB Government hampered implementation in the first quarter to hire experts for engineering design and supervision of 2021. All projects have faced problems in deploying staff support for civil works under ERP I. to Sint Maarten due to the challenge in acquiring permits, visas, and residency papers and attracting highly skilled Implementation Issues and workers to the island. The adoption of a legal framework allowing for the establishment of a World Bank office is Constraints still being reviewed by the Government of Sint Maarten. Implementation performance is likely to improve signifi- There have been implementation challenges since the cantly if these constraints are addressed. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 12 SXM TF Program Strategy Over the first year of implementation, the Guiding Principles for Trust Fund Use NRRP and the guiding principles of the SXM With the establishment of the SXM TF, the objectives of TF provided a framework for emergency the Netherlands are to support the material and nonma- projects prioritized by the Government of terial reconstruction and recovery of Sint Maarten wher- ever necessary, restore vital infrastructure, and sustain- Sint Maarten and the Government of the ably boost the country’s resilience in the face of possible Netherlands, with technical guidance of future disasters, natural and otherwise.9 the World Bank. The Netherlands’ guiding principles annexed to the SXM TF Administration Arrangement state that activities will National Recovery and Resilience Plan (a) address the damage caused by Hurricane Irma, (b) make significant improvements to the pre-hurricane prepara- The NRRP was published by the Government of Sint tion of the island, and (c) restore vital infrastructure whose Maarten in June 2018 and endorsed by Sint Maarten’s breakdown would threaten social peace or national secu- Parliament in August 2018. The NRRP was developed with rity. The support aims to boost resilience by improving the technical support of the World Bank. crisis management and disaster preparedness, promoting The NRRP foresees community, economic, and govern- economic diversification and the enhancement of good ment recovery through investments in priority sectors governance, and strengthening civil society. A preference particularly affected by the 2017 hurricanes (see figure 3.1). is expressed for projects “with a long-term vision that The NRRP projected that US$2.3 billion will be required respects both people and the environment .”10 under these pillars to respond to Sint Maarten’s recovery According to these principles, projects are assessed and resilience needs. based on seven criteria: their necessity (meaning that Figure 3.1. Three Pillars of the NRRP there are no other sources of funding), additionality (meaning they bring in private or other public international financing Community Economic Government Recovery Recovery Recovery where possible), suitability (their and Resilience and Resilience and Resilience appropriateness in scale considering capacity), effectiveness (their ability • Housing • Macroeconomic • Disaster Risk to attain the objective and their • Health Outlook Management consistency with Sint Maarten’s long- • Employment, • Tourism and • Governance and Commerce Public Financial term policy orientations), and effi- Livelihood and ciency and legitimacy (meaning that Social Protection • Finance Management • Justic, Public Safety safe-guards are in place to ensure • Solid Waste • Airport and Security both). Good governance is central to • Education • Ports and Marinas • Additional Public all activities undertaken by the SXM • Environment • Roads and Drainage Buildings TF, particularly their outcomes and • Water their methods of implemen-tation, • Electricity the latter supported by the strict • ICT application of World Bank processes and procedures for financial manage- ment, procurement, and safeguards.  9 World Bank. 2018. “Guiding Principles of the Netherlands.” Appendix of SXM TF Administration Arrangement. Washington, DC: World Bank Group. 10 World Bank 2018. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 13 i SXM TF Program Strategy Continued Strategic Framework implementation toward achieving objectives for 2018–2021. The MTR will made recommendations to improve perfor- The SXM TF priorities are laid out in the SXM TF Strategic mance for the remaining period 2022–2025 and review Framework (SF)11 2019–2025 and were approved by the SC options to sustain implementation capacities Macroeconomic beyond • Disaster Risk the in August 2019. This SF is grounded in the NRRP, addresses O The MTR identified SXM life of the SXM TF. M TF’s achieve- the needs for post-disaster recovery, and takes on selected ments against the focus areas identified in the SF. In medium-term challenges in support of Sint Maarten’s addressing the review objectives, the MTR will apply the Finance for Economic Co-operation and adapted Organisation sustainable resilience and prosperity. The SF groups prior- • Development (OECD)Airport Development Assistance Committee ities in three focus areas: • Ports and (DAC) quality criteria Marinas of relevance, coherence, effective- (a) promote sustainable economic recovery, • Roads and Drainage ness, efficiency, impact, and sustainability. (b) invest in citizens and resilient communities, and • Water (c) build the foundations to improve long-term resilience Appendix A provides an overview of the alignment per area • Electricity and good governance. of intervention• of current SXM TF activities with the NRRP, ICT including the current advancement against long-term indi- The SF identifies the objectives to be achieved in these cators. focus areas through approved projects and outlines future avenues for action (see figure 3.2). The SF’s principles of Figure 3.2 SXM TF Strategic Focus Areas engagement include modalities to strengthen local capacity and partnerships with inter- national organizations and NGOs and FOCUS AREA 2: FOCUS AREA 3: FOCUS AREA 1: Build the foundation to the private sector. The SF priorities Promote sustainable Invest in citizens and resilient improve long-term economic recovery support the objectives of Sint communities resilience and good Maarten’s NRRP and are commensu- governance rate with the Guiding Principles of the Objective 1: Objective 4: Objective 7: Netherlands recorded in the SXM TF Sustainably restore air Repair and increase Improve capacity for Administration Arrangement.12 While access and improve access to housing disaster response. many SF priorities will be financed by connectivity. especially for the Objective 8: Objective 2: vulnerable. Strengthen scal the SXM TF, additional financing is Support tourism recovery Objective 5: resilience and modernize expected to be leveraged from other through access to nance Increase access to quality the public sector. partners to fill sector gaps and and resilient utility health, education, and services. sports services. complement current/planned activi- Objective 3: Objective 6: ties, where appropriate. Establish a sustainable Strengthen social safety solid waste management nets and promote A TF program-wide MTR was system with improved employment, particularly sanitation services. for vulnerable youth and completed to assess progress in households headed by women.  11 World Bank. 2019. SXM TF Strategic Framework 2019–2025. Washington, DC: World Bank Group. 12 SXM TF Administration Arrangement, April 16, 2018; Annex III. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 14 Activity Summary January - December 2021 Overview ments include analytical work and technical assistance to the Government of Sint Maarten (US$4.7 million), TF As of December 31, 2021, the SXM TF had received management (US$6.6 million), and the World Bank’s TF US$511.96 million from the Government of the administration fee (U$9.04 million). Another US$73 million Netherlands, after the transfer of the fourth and final has been allocated by the SC to four projects currently tranche of funding in December 2021. This amount under preparation (see table 4.1). reflects off-the-top deductions by the Netherlands for As of the end of December 2021, out of US$333.2 million activities complementary to SXM TF activities but chan- committed to recipient-executed projects, US$151.7 neled through bilateral channels. In addition, US$13.87 million had been disbursed and US$181.5 million remained million in investment income has been generated for the to be disbursed (see table 4.2). These are projects that SXM TF by the World Bank’s Treasury Department since TF have been endorsed for financing by the SC and have inception. As of December 31, 2021, US$333.2 million has completed the full preparation, appraisal, and approval been committed to 10 recipient-executed projects and a processes of the World Bank and the recipient. Project project preparation grant (PPG) for the Fostering Resilient objectives, activities, and progress are detailed in this Learning Project. A total of US$13.1 million has been chapter, in the ‘Projects under Implementation: Results to committed to the World Bank’s implementation supervi- Date’ section. sion and hands-on support to the projects. Other commit- Table 4.1. Released Funds Received US$, millions Use of funds US$, millions Total TF program committed 511.96a Administrative fee 9.04 Total funds received from the Netherlands 511.96a Committed to signed projects 333.20 Analytical work 4.72 Preparation, supervision, and implementation support 13.11 TF management 6.64 Investment income 13.87 Total 366.71 Total funds received 525.83 Estimated value of projects under preparation 73 Balance (from funds committed) 86.12b Total spent and allocated 439.71 Note: a. Reflects reduction of total estimated amount, considering off-the-top deductions by the Netherlands which are/are to be provided through bilateral channels to Sint Maarten. b. Balance from US$511.96 million committed by the Netherlands and total spent and allocated (US$439.71 million). ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 15 Activity Summary Continued Table 4.2. Projects Receiving Support Projects under Implementationa Approved Commitments Disbursements (US$, millions) (US$, millions) 1 Emergency Recovery Project I (P167339 + AF (P173225)) 7/10/2018 100.20 49.33 2 Emergency Income Support and Training Project (P167368) 8/02/2018 22.50 19.91 3 Hospital Resiliency and Preparedness Project (P167532 + AF (P167532)) 8/16/2018 28.61 21.4 4 Emergency Debris Management Project (P167347) b 12/21/2018 25.00 18.01 5 Airport Terminal Reconstruction Project (P167974 + AF (P177416)) 12/09/2019 92.00 21.48 6 Red Cross Roof Repair Project (P172619)c 12/30/2019 3.75 3.75 7 Enterprise Support Project (P168549) 12/30/2019 35.00 12.19 8 Civil Society Partnership Facility for Resilience Project (P172339) 6/26/2020 7.35 2.10 9 Child Resilience and Protection Project (P172582) 10/22/2020 5.00 1.77 10 Sint Maarten Digital Government Transformation Project (P172611) 03/18/2021 12.00 0 11a Fostering Resilient Learning Project (P172753) Preparation Grant 03/11/2021 1.80 1.73 Total 333.21 151.67 Note: a. Grant agreements signed between the World Bank and the recipient. b. Additional financing for US$25 million approved by the SC is not included, pending World Bank approval. c. Project closed on December 31, 2020. Table 4.3. Recipient-executed trust fund (RETF) Projects in Preparation RETF projects Estimated amount Estimated (US$, millions) approvala 1 Fostering Resilient Learning Project (P172753) 30.0 Q1 2022 2 Additional Financing for the EDMPb 25.0 Q4 2021 3 Long-Term Waste Management b 10.0 Q3 2022 4 Mental Health Project 8.0 Q1 2022 TOTAL 73.0 Note: a. Estimated timelines are subject to change to meet operational requirements, including appropriate consultation and preparation of appropriate safeguard instruments by the recipient, in line with World Bank policies. b. Allocated but not yet under preparation. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 16 Activity Summary Continued US$73 million has been allocated by the SC for four complement limited on-island and in-house government projects that are being prepared for appraisal and approval and NRPB capacity. by the World Bank (table 4.3). The ‘Projects under Preparation’ section in this chapter provides details on the A financial overview is provided in appendix C, including project objectives and content and notes where resources program management costs. Program management costs have been set aside by the SXM TF for specific uses, cover all support to date, including retroactive financing before allocation. of the assistance and expertise provided for the develop- ment of the NRRP. To underpin projects and contribute to knowledge and policy improvements, a program of analytical work has been carried out in collaboration with the Government of Projects under Implementation: Sint Maarten. A public expenditure review, a tourism Results to Date sector study and statistics compendium, and a housing sector assessment have been completed and delivered to Implementation has yielded significant results despite the the Government. Resources allocated for this work are restrictions and obstacles related to the COVID-19 US$4.7 million, of which US$3.8 million has been pandemic. Implementation uptake has accelerated since disbursed. Details are provided in the ‘Analytical Work’ 2020 with teams ramping up their efforts to ensure section of this chapter. projects meet their milestones. Technical teams success- fully supervised projects virtually and used creative The World Bank has allocated US$13.1 million for the approaches to monitor progress. Both the airport terminal preparation and supervision of projects. Since the initia- reconstruction and hospital resiliency and preparedness tion of the SXM TF, US$10.5 million has been disbursed. projects have benefited from virtual walk-throughs and Spending is based on standard World Bank norms for virtual site visits. Ten projects are under implementation preparation and supervision of projects, considering the and one project has been completed. A total of 45 percent need to balance the speed, the complexity of preparation, of funds committed to projects has been disbursed. NRPB and the necessary costs associated with maintaining due staff and consultants returned to the island and have been diligence standards for safeguards and financial manage- able to engage actors on the ground. The World Bank ment. About 34 percent of these resources are provided conducted virtual supervisions and provided remote for procurement, safeguards, and fiduciary support and 9 support. Despite limitations on travel and challenges due percent for direct hands-on support to the NRPB to ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 17 Activity Summary Continued to COVID-19, the SC was able to visit the island twice this NRPB operational costs from mid-2023 to end 2025. The year (July and December 2021) to see the results on the SC also agreed that additional funding of up to US$15 ground and agree on the pipeline of future activities. million could be allocated to ERP I to cover the cost of refurbishing sports facilities including for schools, further Emergency Recovery Project I work on the police stations, a meteorological building, and further investments in burying electricity lines, among Under ERP I (US$100.2 million; US$55 million approved others. The volume of funding available will depend on the July 10, 2018, and US$45 million approved April 28, 2021), decisions made by the SC on the use of remaining funds implementation activities advanced significantly in 2021, and the implementation timelines. with work progressing on repairs to homes, shelters, schools, police stations, and provision of critical equip- Results ment for first responders. Total project disbursement stood at US$49.3 million, as of December 31, 2021. ERP I TF activities have significantly contributed finances the repair of critical infrastructure (including police stations, the fire and ambulance building, the emer- to improved working conditions and gency operation center, shelters, and schools), social and capacity of first responders to provide private housing, the procurement of emergency equip- ment, the increased resilience of electricity and water emergency services on the island. systems, improved access to sovereign catastrophe risk The NRPB delivered three fire trucks to the Fire insurance, and training. ERP I also finances the func- Department by September 2021. A contract was signed in tioning of the NRPB, which is the project implementation February 2021 to deliver four ambulances by March 2022. unit for the bulk of SXM TF activities. Other Vehicles have been delivered to various ministries to support their work. A LIDAR survey of Sint Maarten was As a result of COVID-19 travel restrictions earlier in 2020, completed and government officials were trained to use foreign companies and consultants worked remotely. the data. The LIDAR survey will allow the mapping of Some were only able to return in late spring and summer multiple hazard risks (such as flooding, landslide, and of 2021. However, the end of 2021 saw a return to global seismic and sea surge risks) to better inform the travel restrictions and required a partial return to remote Government’s disaster response, investment, and planning work. Despite these challenges, implementation has accelerated on many key activities. While international consultants and firms continue to be recruited, administrative bottlenecks for work and residency permits and business licenses and taxes for foreign companies and foreign staff continue to pose challenges in 2021. On April 28, 2021, additional financing for US$45 million was approved, to cover financing gaps for the technical prepara- tion of works (many of which Government cannot undertake), repairs, and equip- ment, as well as to cover NRPB staffing and operations from June 2020 until June 2023, originally not budgeted under ERP I. On July 14, 2021, the SC allocated US$7 million in financing to support ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 18 Activity Summary Continued decisions. Works on 11 shelters prioritized by the School repairs. Nineteen schools were identified for Government were completed in April 2021. The shelters are repairs and NRPB has hired a schools activity manager to equipped with generators and water tanks and are ready to oversee the repair program, which is organized in three be used in an emergency. Tendering for the extension batches to minimize the disruption to student learning. works of the Emergency Operations Center has been final- Repair work on the initial batch of three priority schools ized and work will begin in mid-2022. was completed in August 2021. The environmental screening for asbestos and mold of all 19 schools were The project has extended the financing of Sint Maarten’s completed. The Request for Bids (RFB) for the second premia for insurance coverage against disaster risks under batch of three schools was completed in October 2021 and the Caribbean Catastrophe Risk Insurance Facility until work is scheduled to start in January 2022. The RFB for June 2023, and finances the country’s membership to the the remaining 13 schools was launched in August 2021 and Caribbean Disaster Emergency Management Agency the tender completed in December 2021. The pace of work (CDEMA)13 and Sint Maarten’s participation in regional and during 2021 was affected by COVID-19-related conditions international events that focus on disaster risk manage- and logistics related to the temporary relocation of ment and resilience. students during construction. Restoring utility services after Hurricane Irma. The Institutional support for recovery and reconstruction. project aims to help restore and increase the resilience of The NRPB has hired all the key project implementation Sint Maarten’s water and electricity systems. It has staff needs (51 positions to date). Through recent recruit- retroactively financed the US$1.4 million restoration of ments, it has strengthened its capacity in safeguards, four water tanks damaged by the hurricane, by Sint procurement, financial management, project and contract Maarten’s Utility Company (GEBE). Further work started in management, engineering, and monitoring and evaluation. January 2021, to strengthen the resilience of water and Since January 2021, engineering capacity on the island electricity assets, including a trenching program to has been boosted under a Framework Agreement consul- advance the underground piping and cabling of the water tancy. The Framework Agreement is financing technical and electricity distribution network. The first procurement assessments, designs, drafting procurement packages, package for approximately 9 km of trenching work for and works supervision. This capacity has contributed underground cabling of electrical power lines, conduits for significantly to expediting project investments. Execution optic fiber, and water pipes was launched in August 2021 capacity for local works has been augmented, although and awarded in November 2021. Works are expected to some bottlenecks remain. start in the second quarter of 2022. A second phase of works for 3 km of medium-tension transmission lines and Emergency Income Support and Training Project potable water pipelines is being designed. The objectives of the US$22.5 million Emergency Income Housing repair and public buildings repair. The target of Support and Training Project (EISTP)14 are to provide 535 homes to be repaired under this project has been temporary income support; to improve the employability revised to 519 as some houses have been completed of unemployed and underemployed workers, initially in the outside of the project and others are no longer considered hospitality industry and progressively in other sectors; and eligible. To date, 410 homes have been repaired, including to strengthen the social protection system. The project 141 private homes and 269 social units, of which 109 were disbursed the bulk of its financingfinancing, a total of repaired under the project and 160 units retroactively US$19.9 million, under Component 1 for income support financed in the Belvedere neighborhood. The tender to and training activities. repair another 64 units housed in six social housing build- ings was launched in April 2021 and the contract signed in Component 1 was completed in September 2020 and December 2021. achieved its objectives. Through the Sint Maarten Training  13 CDEMA is a regional intergovernmental agency for disaster management in the Caribbean Community. 14 The project was approved on August 2, 2018, and became effective on August 9, 2018. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 19 Activity Summary Continued Foundation, it provided temporary income support To accommodate this activity and extend implementation (stipend and transportation allowance) and health insur- for Component 2, which saw implementation delays during ance to underemployed and unemployed persons and COVID-19, the project made a request to extend the project financed their participation in short-term skills training in closing date to February 28, 2023. the culinary, hospitality, and construction sectors. The project provided access to training and international certi- Results fication to some of the island’s most vulnerable people. The Training and Stipends Program. The training program This iniative was prepared as an emergency response to started in August 2018 and was completed in September strengthen the social protection system for shock- 2020 and disbursed US$18.4 million. The program response and protection of the poor. exceeded its initial target of 1,800 participants by 9 percent, reaching 1,960 beneficiaries, and supported the Component 2 aims to conduct a Socioeconomic Needs most disadvantaged groups of the labor market, such as Assessment (SENA) and develop an Integrated Social youth (16 percent), women (69 percent), and the unem- Registry System (ISRS) to strengthen the coordination and ployed (76 percent). The project granted certifications in response capacity of Sint Maarten’s social protection hospitality and or culinary arts and construction to 1,844 system in the face of disasters and other shocks. Better participants,15 with a graduation rate of 94 percent, well data availability and timely analysis will allow the above regional averages at 80 percent. Government to improve its policies, better target its existing programs and services, and develop services and Given the program’s relevance in the COVID-19 context and programs better tailored to the needs of vulnerable popu- in light of its positive results, the Government extended lations. The ISRS will be administrated by the VSA to the training program until April 2021 using its own funds. support the registration, identification, and selection of Altogether, including the period between February and the people in most need, regulate the delivery, enhance July 2018, the Government spent US$4.4 million of its own coordination and resource allocation of services and resources, reflecting an important fiscal effort and under- programs, and measure their effectiveness. lining the usefulness of this model. The Government has identified additional needs that fit Design and development of the social registry. The into the development objective of the project and has project has made progress to launch the digital SENA. requested a project restructuring to expand the scope of Phase 1 of the assessment will start in March 2022 and Component 2 to finance activities to strengthen the aims at assessing the household socioeconomic condi- delivery of employment services of the National tions to better target benefits and inform social programs. Employment Service Centre (NESC) of VSA. The COVID-19 The SENA will provide the data needed for the enhanced pandemic inflicted an important shock on the economy of social registry under development. A communication Sint Maarten and an unprecedented shock to the labor strategy to launch the SENA is almost completed. The market. The absence of data, a systemic challenge in Sint SENA questionnaire has been finalized, and data collec- Maarten, limits policy formulation to inform recovery, tors are currently under training. The development of the including social protection and labor market policies, and social registry system is taking longer than expected hampers the provision of services to support employment mainly due to compliance issues of the firm that is devel- and reemployment services during recovery. This labor oping the system. The NRPB, VSA, and the firm have market analysis will complement the SENA and provide the agreed to review the workplan and the methodology of Government with an integrated analysis of labor market development of the SENA for more agile delivery. The supply and demand. review of the workplan may result in an extension of the contract. The project was restructured in December 2021  15 Note that a small fraction of the participants graduated from two occupancy training tracks and thus obtained more than one certification. These have been quantified as only a single graduate and have been included in the calculation for either hospitality or culinary. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 20 Activity Summary Continued to extend the project closing date to February 2023 to hospital will substantially increase hospital capacity and account for the delays caused by the COVID-19 pandemic enhance health services on Sint Maarten. The project also and allow completion of ongoing and planned activities. finances critical upgrades to the existing hospital and contributes to enhancing the quality and scope of hospital services, including updating clinical guidelines and Hospital Resiliency and Preparedness carrying out routine technical audits of their application. Project Two of the three Project Development Objective (PDO) indicators have already been achieved. Approved in August 2018, the objective of the SMMC is the main provider of clinical response to the US$28.6 million Hospital Resiliency and COVID-19 pandemic on the island since the first reported Preparedness Project (HRPP) (US$25 million case in early March 2020. Since March 2020, VSA has carried out continuous community outreach testing, and US$3.61 million additional financing public education campaigns, contact tracing, and more approved in March 2020 and US$75 million recently vaccine deployment. from Sint Maarten Medical Center Additional financing of US$3.61 million was provided in Foundation) is to improve the preparedness March 2020 for hospital services and supplies to respond and capacity of hospital services at the to the COVID-19 outbreak. SMMC’s needs were assessed using the United States Centers for Disease Control and SMMC, the only hospital on the island. To date, Prevention (CDC) Comprehensive Hospital Preparedness the project has disbursed US$21.4 million. Checklist for COVID-19 and projections based on clinical data from the ongoing pandemic. SXM TF resources The project co-finances the building of the new Sint complemented substantial direct aid from the Maarten General Hospital and ensures its resilience Netherlands to the Government of Sint Maarten and to against Category 5 and higher hurricanes. The new SMMC to address the pandemic and facilitate a rapid response. Results Building and launching of the new hospital (US$17 million SXM TF co-financing). Despite COVID-19-related constraints, SMMC agreed on the final designs for the new hospital building in June 2021. Site preparedness activities began in early 2021 and the first pour of the first section of the main building founda- tion was conducted in November 2021. The Fincantieri Group took over all projects from the previously selected Italian contractor, INSO, as of August 1, 2021. At the end of December 2021, two-thirds of the excavation for the foundation of the new building was complete. Retaining walls have been created for parking and for the care complex, underpinning of the existing hospital foundation, and excavation for the main building. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 21 Activity Summary Continued Transition and contingency plan for SMMC (US$11.3 million). As of end- December 2021, approximately 75 percent of all essential upgrades to the existing hospital facility have been completed. SMMC is currently focused on completing (a) five additional double patient rooms, (b) the medical gas distri- bution system, (c) the upgrade and expansion of the operating room (OR) complex, and (d) the dialysis and oncology expansion. Completed essen- tial upgrades include the roof reinforce- ment, the access control system, the information and communication tech- nology (ICT) upgrades, the fire detection system, the back-up generators, and the Auxiliary Care Facility (ACF) for COVID patients. In the first half of 2021, SMMC made concerted efforts to reduce personal interactions because of COVID- 19 and increased responses to its patient satisfaction survey through QR code 461 in 2020). As of November 2019, general practitioners cards and emails. no longer refer patients for overseas care; only SMMC specialists determine if referral abroad is needed. This SMMC is working on expanding the patient satisfaction reduction is due chiefly to the substantial expansion of survey to all departments/specialties. SMMC published an services at SMMC, with the addition of ophthalmology, effective ten-minute pre-recorded virtual tour of the orthopedics, neurology, pulmonology, OB-GYN, pain construction process and vision for the new hospital. management, and radiology specialties. This outcome The project target to decrease off-island referrals by 45 significantly contributes to lower Sint Maarten’s health percent has already been significantly surpassed; it has care costs. reduced by 92 percent in four years (from 5,880 in 2017 to SMMC updated and improved the Emergency Disaster Preparedness Plan (EDP) and Evacuation Plan and noted substantial improvements in the Disaster Preparedness Scorecard. A pandemic preparedness chapter has been added in the EDP. The final update to the EDP was completed by the Quality and Patient Safety Department and was distributed throughout the hospital in June 2021. In 2021, SMMC adjusted its floor plans to the Hurricane Preparedness Plan and is addressing difficulties in conducting fire drills due to COVID-19. SMMC has been working on installing a public announcement system in the hospital. SMMC will conduct tabletop drills within the next 3–6 months. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 22 Activity Summary Continued The Quality and Patient Safety Department is developing Emergency Debris Management an audit tool and audit system to monitor the quality of clin- ical care, including for elements/standards needed for Project international accreditation (Joint Commission Inter- national-JCI). It is expected that the technical audit will The Emergency Debris Management take place in the first quarter of 2022. Project (EDMP) finances the management SMMC has used the additional financing of US$3.6 million of debris from Hurricane Irma and recon- to purchase medical supplies and equipment, personal struction activities to facilitate recovery protective equipment, pharmaceuticals, and nonmedical equipment for COVID-19 triage and isolation areas. and reduce risks. Funding was used to equip a medical pavilion donated by Project activities include collecting and clearing debris VSA for triage of suspected cases and treatment of mild (metal and car wrecks); reducing the risks of operation, cases. In September 2020, construction was completed reorganization, rehabilitation, and the upgrading of debris on the ACF for COVID-19 care, which replaced the pavilion. storage and municipal disposal sites, debris processing The ACF is located outside the main hospital in containers and disposal; vessel recovery and salvaging, including that are hurricane safe (up to Category 4) and it has a total shoreline cleaning, and technical assistance. To date, the of 16 beds, of which 6 are intensive-care beds and 10 are project has disbursed US$18.01 million of the US$25 million medium-care beds. SMMC has an additional isolation allocated for the project. capacity of 11 beds within the hospital. These additional funds provided by the TF have strengthened SMMC’s Since the 1990s, Sint Maarten’s landfill capacity and munic- preparedness and capacity to respond to the increased ipal waste management issues have been left largely demand of health services and prevent and delay the unaddressed and the debris and municipal waste have spread of the COVID-19 pandemic. This has helped split negatively affected environmental conditions on the services between COVID-19 and non-COVID-19 patients, island. The absence of an efficient sanitary waste disposal protect health workers and patients, and streamline system continues to cause pollution and create unsafe patient isolation and treatment of severe cases requiring conditions for those living in the vicinity of the landfills. intermediate or intensive care. Hurricane Irma intensified these long-standing challenges ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 23 Activity Summary Continued in disposal capacity and municipal waste management. guards consultations, project implementation is gradually The massive amounts of debris and municipal waste catching up. Following the approval of a High-level disposed of in the Municipal Solid Waste (MSW) and Irma Roadmap by the Council of Ministers on March 4, 2021, and landfills caused smoldering fires and flare-ups and endan- its endorsement by the Prime Minister at the SXM TF’s SC gered the surrounding communities. meeting of March 5, 2021, the NPRB and the Government have accelerated the preparation of critical safeguard Considering the significant reduction in landfill subsurface instruments. The High-level Roadmap sets deadlines for fires between late 2019 and early 2020, an agreement was the preparation and disclosure of the Environmental and reached between the Government and the World Bank in Social Impact Assessment (ESIA) and Environmental and late January 2020 to remove the originally planned fire Social Management Plan (ESMP) for landfill management suppression activity and integrate fire control within and the Resettlement Action Plan (RAP), which will define routine landfill management activities, to address the the resettlement options for the population living adjacent remaining and future fire hotspots. Stand-alone emer- to the site. The Roadmap also includes high-level mile- gency fire suppression activity was then removed from the stones for additional activities for landfill management. As project scope as part of project restructuring, which was of December 2021, significant progress has been made on approved on June 3, 2021. the safeguards instruments with the ESIA/ESMP for daily Other landfill improvement-related activities are landfill management and the ESMP for temporary debris unchanged in the project scope, and the daily operation of storage and reduction (TDSR) cleared by the World Bank the landfill can take place only in a designated area with and the RAP under final review. These advances allowed applicable health and safeguards measures in place. The the World Bank to upgrade the project implementation general health and safety risks associated with slope rating to Moderately Satisfactory and initiate the prepara- instability and future landfill management-related activi- tion of additional financing to cover an existing financing ties persist and will pose significant risks and danger to gap that occurred due to the higher cost of resettlement, the neighboring communities. The communities have shipwreck salvaging, and other activities than were origi- been prioritized for resettlement. nally estimated at a lower level during the time of project preparation. Although COVID-19-related challenges have delayed the shipping of equipment and the onboarding of technical A legal agreement between VROMI and the SMHDF was experts, restricted consultant visits, and delayed safe- signed on May 31, 2021, confirming the designation of the ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 24 Activity Summary Continued FOGA site as an option for a resettlement location from shoreline cleaning activity was completed successfully June 2021. The Government and NRPB established crit- and exceeded the target, with all 139 shipwrecks (49 ship- ical prerequisites to start resettlement, by consulting wrecks added through contract amendment) removed affected households before finalization of the RAP and from the Simpson Bay Lagoon and Mullet Pond and 10.5 reaching agreements on individual compensation pack- km of shoreline cleaned. The NRPB is preparing to sink one ages for affected households/persons. Considering land vessel as an artificial reef for recreational purposes. and housing constraints on the island and the Government’s lack of experience in resettlement, the To strengthen waste and landfill management capacity Government requires substantial support to develop the and support the resettlement activities, the NRPB has RAP and carry out the resettlement process in line with recruited a project manager, a project coordinator, a the RAP to be approved by the World Bank. Support was project engineer, and a resettlement expert. A high-level provided to hire a specialized consulting firm to prepare focal point was appointed with support from the the RAP and likely to implement resettlement as well. The Netherlands to oversee and coordinate all activities, World Bank’s safeguards team continues to provide support the preparation of the Resettlement Action Plan, extended support to ensure that the resettlement is and serve as a high-level interlocutor on the resettlement carried out correctly and without substantial time slip- process. The NRPB furthermore recruited a Strategic page. The resettlement of the population at risk is essen- Program Coordinator for Waste Management, who sits at tial before any landfill upgrading. The ship salvaging and the Ministry of VROMI to strategically lead the conversa- shoreline cleaning activity started in March and field tion on waste sector reforms. With financing from the activities were completed in December 2021. Netherlands, this Program Coordinator will be supported by VNG international who will provide technical support to The SC approved an additional financing of US$25 the SXM Government for waste sector reforms foreseen million to cover existing financial gaps in ship salvaging by the National Solid Waste Management Strategy and and shoreline cleaning, handling of metal wrecks and car support their implementation. This support will be critical wrecks, the TDSR facility, resettlement of the commu- to address the dearth of technical and policy capacity and nity adjacent to the landfill, and additional project counterparts for waste management at the Ministry of management costs. Another US$25 million has been set VROMI. aside to finance work on the landfill once resettlement is complete. The solid waste management technical studies were completed in May 2021 and provide the technical and Results strategic underpinning required to carry out sector reform. A Short-Term Plan for Waste Management, a Overall, the project has made significant Regional Market Study for Waste Management in the Caribbean, two pre-feasibility studies (one on landfill progress in implementation during the recontouring, closing, and extension and another on inte- reporting period, including finalizing the crit- grated waste management facility), and a country solid ical safeguards instruments, improving waste management sector assessment report were completed between 2019 and 2021 and handed over to the implementation capacity at the NRPB, and Government. A long-term waste management strategy resuming dialogue on the anticipated solid and action plan was developed and presented to the waste management (SWM) sector reforms. Council of Ministers in March 2021. The design-build- operate package for the MSW dumpsite and the Irma A bulldozer, a front loader, and a waste compactor were Debris Site and a Sector Financial Framework were deliv- delivered to Sint Maarten, expanding VROMI’s capacity to ered to the World Bank in May 2021 and handed over to the manage incoming waste and improve daily landfill Government in August 2021 after the World Bank’s management of the MSW site. The ship salvaging and comments were duly addressed. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 25 Activity Summary Continued A continuous concern for project implementation is the Results dearth of technical and policy capacity and counterparts for waste management at VROMI. This capacity is being During this reporting period, the imple- addressed through hiring activities under way. menting agency (PJIAE) significantly Considering all the progress in project implementation in 2021, the World Bank upgraded safeguards ratings of the advanced the preconstruction activities EDMP to Satisfactory. under its own financing. These activities were a critical part of the site preparation Airport Terminal Reconstruction and include the design services, reinstatement of the fire Project sprinkler system, the completion of mold remediation and waste disposal activities, and hiring of the supervising The Airport Terminal Reconstruction Project was engineer. Despite delays caused by the COVID-19 approved on December 9, 2019, and became effective on pandemic, the activities were completed well ahead of the April 21, 2020. The ATRP, a US$72 million project, finances start of the main construction works and within budget. the reconstruction of the airport terminal, capacity building, and project management. It also supports the Following a competitive RFB, the main construction operational expenditure of the PJIAE (US$21 million) in contract, for US$89 million, was awarded in July and case of major external shocks during the reconstruction signed in August 2021. The site was handed over in period. It has leveraged an additional US$50 million from the European Investment Bank and US$7 million from the airport operating company to reconstruct the airport. On April 4, 2020, an agreement with the airport’s bondholders enabled the release of US$72 million in insurance proceeds that were due to PJIAE, which they had held in escrow. The project has disbursed US$21.48 million to date. An additional US$20 million was approved in December 2021 from the SXM TF, to cover rising construction costs. The airport project will finance the rebuilding and reequipping of the terminal of PJIAE to pre-Irma passenger capacity and improve its resilience against natural disasters. PJIAE is the main international airport that serves Sint Maarten and Saint Martin and is an important regional hub, which before Hurricane Irma, catered to 1.8 million passen- gers and 62,144 aircrafts per year. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 26 Activity Summary Continued was unqualified and deemed acceptable to the World Bank. Financing for operational expenses was disbursed to the airport because of financial shortfalls created by the halt in tourism and lack of passenger traffic at the airport. This support was veri- fied, approved, and disbursed for Q2 2020 (US$3.19 million), Q3 2020 (US$2.74 million), Q4 2020 (US$1.49 million), and Q1 2021 (US$3.5 million) on a reimburse-ment basis, after careful review of the supporting docu- mentation by the NRPB and the World Bank task team, including to ensure that any Government payroll has been deducted from any eligible shortfalls. With the current recovery of passenger traffic towards the end of 2021, this support is no longer needed. During the review period, the Government of Sint Maarten took steps to October 2021. The project’s main works are scheduled to ensure improved corporate governance at the airport be completed by the third quarter of 2023. However, holding company (PJIAH) and secure the continued sections of the terminal building will begin to come online support of the Royal Schiphol Group as a technical from as early as December 2022. The contractor is mobi- partner to PJIAE in project implementation. lizing, and key personnel have been deployed to the site. Dismantling activities are ongoing to prepare for perma- The World Bank approved additional financing of US$20 nent works. million to cover a financing gap in the project, resulting from an increase in the costs of construction and equip- Seven equipment packages (EPs) are to be financed under ment. The grant closing date will be extended by 12 months the project and are being tendered.16 The tender docu- to December 31, 2023. ments for the prioritized EP1 (Passenger Boarding Bridges) and EP2 (Baggage Handling System) have been finalized Red Cross Roof Repair Project and tenders were launched in October 2021. Ensuring the proper sequencing and timing of tenders, deliveries, and The Red Cross Roof Repair Project (US$3.75 million) was installation of equipment is a key focus of the technical approved on December 30, 2019 and closed on December teams in the highly uncertain environment of COVID-19- 31, 2020. The project was implemented by the RCNL. The affected value chains and international transport. project repaired 182 damaged roofs up to a safe standard for vulnerable households affected by Hurricane Irma. The Component 2 of the project supports project manage- project increased local capacity in the construction sector ment and capacity building for the implementing agency, by training and employing construction crews, to repair PJIAE, which is progressing satisfactorily. The PMU is fully the roofs with quality controls and in accordance with staffed and mobilized, including the environmental and World Bank safeguard requirements. social specialist, financed by the project. The first project audit for Components 1, 2, and 4 for April - December 2020 Work on the sites was halted for eight weeks, from late  16 EP1: Passenger Boarding Bridges; EP2: Baggage Handling System; EP3: Security Screening Equipment; EP4: Self-Serve Baggage Drop System; EP5: Digital Signal Equipment; EP6: Hold Room Seating; and EP7: Furniture, Fixtures and Appliances. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 27 Activity Summary Continued March until late May 2020, due to the COVID-19 lockdown. Work resumed in late May and, despite the strict enforcement of enhanced COVID-19 safety regulations, several crew members tested positive. To cover the cost of additional crews for the repair work, additional financing of US$162,000 was provided to support the RCNL in achieving its goal to repair the houses before the end of the calendar year. Results Of the 182 households that received roof repairs, 75 were female-headed households. The RCNL conducted a roof repair and roof strengthening workshop, attended by 80 households with damaged houses, and an exhibition banks making it difficult to access financing. Subject to an on resilient roofs for the public. Sixty-three craftsmen acceptable business plan, the ESP provides financial were trained to become skilled local construction workers. packages for eligible MSMEs in the form of a combination The training in resilient construction received by these of grants and loans for assets and repairs and stand-alone individuals will help them continue safe construction tech- loans for working capital. niques within their local community after the project is over. The World Bank and the NRPB channel the financing through three PFIs to support eligible enterprises. The The project closed at the end of 2020, having reached 182 ESP was rolled out in August 2020. of the 200 households originally targeted, despite the many challenges of reconstruction during the COVID-19 Lenders in Sint Maarten have been risk averse in tapping era. An Implementation Completion and Results Report for into the MSME market, because of the prevailing high-risk the project was finalized on June 30, 2021. environment and the difficulty for MSMEs in presenting acceptable collateral. The COVID-19 crisis increased this Enterprise Support Project risk aversion. To mitigate this problem, a risk-sharing mechanism was introduced to incentivize lenders. The The ESP was signed in March 2020 and became effective mechanism allows the project to partially absorb potential on May 5, 2020. The project, which has an allocation of losses on loans from lenders. This motivates the financial US$35 million, supports eligible MSMEs in accessing institutions to lend to MSMEs while encouraging them to financing for asset replacement, nonstructural repairs, exercise adequate due diligence and care when under- and working capital, channeled through local PFIs. As of writing and servicing MSME loans. The agreement December 31, 2021, the project disbursed US$12.19 million, mandates them to select viable MSMEs with solid business about 34 percent of the total project amount. plans. A large percentage of MSMEs have been unable to obtain In July 2021, the SC acknowledged the agreement between financing from local commercial banks because they Sint Maarten and the World Bank to reallocate US$5 million cannot meet the banks’ collateral requirements. Generally, from the ESP and the intent to extend the implementation MSMEs have difficulty providing acceptable collateral to time frame for this project to June 30, 2025. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 28 Activity Summary Continued Results The R4CR is managed by VNGI and the project supports immediate community needs through a rollout of small The project regularly offers information grants to CSOs. VNGI opened its Sint Maarten office in sessions to MSMEs. Radio commercials have February 2021. The project adopted COVID-19 safety measures to implement outreach workshops and training run frequently, and the project website has to recipient CSOs. As of the end of December 2021, the been updated. project disbursed over US$2.1 million for 24 grants to 22 Subsidiary agreements have been signed with three finan- local CSOs. A third call of proposals is under way and the cial institutions that are currently acting as PFIs in the results will be finalized in early January 2022. project: Micro financiering Nederland (Qredits), Windward Results Islands Bank, and Banco di Caribe. As of December 31, 2021, 103 firms have been approved to receive financing The project has held three calls for proposals and applications are in the pipeline at different stages of review. A project restructuring has been finalized, (November 2020, June 2021, and December extending the project closing date from December 2024 2021). Twelve CSOs were awarded US$458,936 to June 30, 2025. This extension will enable PFIs to in the first round for services to the elderly, extend longer loan tenors and reduce the beneficiaries’ youth, and disabled persons, for minor debt service coverage ratios. This is expected to further upgrades to community spaces and environ- increase the number of beneficiaries while offering them better financial conditions to grow their businesses. The mental projects. project has been awarded ‘entity of the year 2021’ by a In mid-June 2021, another US$567,244 was provided for 12 local media outlet, which will ensure many more applica- new grants mainly focused on psychosocial and emotional tions in 2022. support, youth employment and skills development, day care and afternoon school services, programs addressing Civil Society Partnership Facility gender-based violence, recreation and sports, nature and for Resilience Project environment, and arts and cultural activities. In May 2019, the SXM TF SC approved the creation of a The completed and handed-over subprojects currently CSO grant-making facility. The Civil Society Partnership serve 1,970 people (end-of-project target is 10,000 people). for Resilience Project, also locally named as Resources VNGI has delivered outreach sessions to 132 individuals, for Community Resilience (R4CR) in Sint Maarten, representing 94 CSOs. Training was provided to CSOs in received US$7.2 million in financing.17 The project was proposal submission, project management, and financial approved on June 26, 2020, and was declared effective management. Ongoing implementation has revealed enor- on July 28, 2020. The objective of this project is to mous capacity gaps within the local CSOs in development, improve the capacity of CSOs and support implementa- preparation of adequate proposals for funding, planning tion of reconstruction and resilience projects at the and project management, monitoring and evaluation, and community level. The project is implemented through reporting and VNGI has enhanced the focus on addressing three main components: these needs. A first lessons learned event, called the benchmarking workshop, was organized by VNGI in June (a) small grants to CSOs for reconstruction and resilience, 2021 to support knowledge sharing and to address (b) technical assistance and capacity building, and capacity gaps in financial and project management. (c) project management and coordination. Systematic capacity building guided by a capacity building plan is now under way and will continue to be a core  17 The CSPFRP was approved on June 26, 2020 and became effective in July 2020. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 29 Activity Summary Continued activity for implementation based on annual needs disaster, dealing with financial hardship, positive assessments, the objective being to develop capacity for parenting, and child protection) and a violence prevention CSOs continuously so that the project leaves a lasting program targeting schools, day-cares, and after-school impact. programs are expected to start in early 2022. To strengthen the Child Protection Systems (Component Child Resilience and Protection 2), a child protection specialist has been hired and a firm Project contracted to provide training on child safety and rights for the key stakeholders from MECYS, VSA, and the Court The Child Resilience and Protection Project (CRPP) aims of Guardianship. Four online workshops on child protec- to strengthen the capacity of Sint Maarten’s education and tion methodologies and approaches have been delivered. child protection systems to respond to the needs of chil- An assessment of the case management and referral dren and adolescents because of natural disasters and systems for child abuse and neglect cases is being external shocks. The project was approved on January 22, conducted to assess strengths and gaps. It will generate 2021, and is being implemented by UNICEF NL for US$5 a roadmap to strengthen the referral and case manage- million, including a US$512,000 PPG (approved in April ment for child abuse and neglect. 2020 and closed in October 2021). The project has disbursed US$1.77 million in total to date. To strengthen the resilience of schools and MECYS to disasters (Component 3), the Education in Emergency To nurture children’s and adolescents’ well-being (EiE) contingency strategy was revised, with the support (Component 1), a school-based psychosocial screening of an external consultancy financed by the project. It tool is being developed to help teachers and care teams includes a communication protocol for schools during support or refer children in distress. The tool is part of a emergencies. A mobile application is being used to revise package of comprehensive psychosocial interventions the school damage and needs assessment. It will facilitate that will be implemented at the school, family, and data collection on staff preparedness before a natural community levels. Psychosocial training for schools’ care hazard and on potential damages after an emergency. A teams, facilitated by the Ministry of Education, Culture, yearly assessment through this tool aims to capture Youth and Sports (MECYS), was delivered in April 2021. existing stakeholder vulnerabilities and capacities. Programs providing psychosocial support to students’ Training on emergency preparedness is being provided to parents (on topics related to coping during a natural schools’ emergency teams. In parallel, simulation exer- ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 30 Activity Summary Continued cises for selected schools are being prepared. Between Projects under Preparation18 June and August 2021, seven training events were held, reaching 93 members of the Safety and Emergency Teams Four projects - from 23 schools. (a) a Fostering Resilient Learning Project, Digital Government Transformation (b) an additional financing to the EDMP, Development (c) a long-term waste management project, and (d) a Mental Health Project Approved on March 18, 2021, the US$12 million Digital Government Transformation Project (DGTP) aims to - are being prepared to address key challenges in building improve access and enhance the efficiency of selected resilience, as underlined in the NRRP, prioritized by the public services for citizens and businesses, as well as the Government of Sint Maarten, and endorsed by the SXM TF resiliency of government systems. The project is executed SC. These projects are being prepared virtually, given the by the NRPB and the Ministry of General Affairs and will complexities related to the COVID-19 pandemic and uncer- also strengthen the policy and regulatory environment and tainties related to travel. In addition, the preparation of a housing project is under way, for which financing was set the institutional capacity of Government to develop and aside by the SC in July 2021. The SC will discuss the formal implement digital services. The project will put in place the allocation of funds and project features in the first half of platforms needed to enable the development of secure 2022, in the context of its next regular meeting. and user-centric digital services and improve back-office functioning so that services can be delivered in a more Fostering Resilient Learning Project integrated manner. These include platforms for digital payments, interoperability, and a digital single sign-on In July 2019, the SXM TF SC allocated an estimated US$30 mechanism. The project will also enable cloud services million to support the Government of Sint Maarten’s 2018 and digitization of key government records. Education Master Plan. The resources were aimed at (a) rebuilding safe and inclusive schools, (b) restoring a To support this project, studies and technical assistance community learning and cultural environment, and (c) for up to US$3 million are being executed by the World strengthening MECYS’ management information system. Bank to (a) develop a digital transformation strategy to A PPG for US$1.8 million was signed in March 2021 to guide the Government’s future ICT investments, (b) finance preparatory studies which are ongoing. Project generate an interoperability framework that will allow preparation, which progressed slowly in 2020 and early ministries to connect with one another and exchange 2021 due to COVID-19 restrictions and capacity limitations, picked up in the latter half of 2021. The project is now data, and (c) conduct an assessment of the public service expected to be approved by end-March 2022. centers to improve the workflow and user-friendliness of these centers. Drafts of these studies were produced in 2021 and are being reviewed. Additional Financing to the EDMP Government has filled all key staff positions on its Digital With the recent advances under the EDMP, the project Leadership Team and advanced the hiring of the project ratings have been upgraded and team started preparing manager. The selection of a management firm to support the additional financing of US$25 million allocated by the SC in March 2021) to cover the financial gap under the Government in project implementation is completed. It is parent project. expected that the project will achieve effectiveness by mid-January 2022.  18 Amounts provided are estimated and will be consolidated during the appraisal stage once the exact scope, components, and activities of the projects have been determined. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 31 Activity Summary Continued The additional financing will allow the EDMP to reach the contract, to improve SWM and environmental protection original PDOs and key results indicators. In particular, the through the implementation of essential institutional, additional financing will cover costs required to resettle legal, and financial reforms identified under the SWM project-affected people who live adjacent to the landfill; technical assistance implemented with the World Bank’s complete the metal wrecks’ and car wrecks’ handling; support in 2020–2021. A long-term waste management implement the design, build, and operate contract for the project will be prepared, and its contours determined, TDSR facility; and finance the additional project manage- based upon progress on policy and institutional reform ment costs. Another US$25 million and an additional $10 under the EDMP. million has been set aside by the SC to finance work on the landfill once referred resettlement is complete. These Improving Mental Health Services in funds could be combined with the referred additional financing under one operation, subject to the decision of Sint Maarten the SC. If the SC agrees to this, the Government of Sint On July 14, 2021, the SXM TF SC allocated US$8 million to Maarten would likely need to commit to the timebound improve Sint Maarten’s capacity to deliver mental health SWM policy action plan to ensure that new SWM infras- services. Project resources will help improve the capacity tructures remain sustainable after project completion. of Sint Maarten’s Mental Health Foundation (MHF) to deliver quality mental health care. This will be done by financing Alternatively, these funds could be attached to the stand- civil works to build a combined guided and protected living alone SWM project or second additional financing that will facility for individuals with chronic mental health illnesses, be approved after referred additional financing to cover a day treatment facility, and crisis intervention rooms. The the financial gap. These funds would help transform SWM project includes funding for staff development, including in Sint Maarten and are planned to be used to recontour continuous education and on-the-job training of MHF the Irma and MSW sites under a design, build, and operate staff; and the strengthening of existing treatment and ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 32 Activity Summary Continued referral protocols.The initial phase of project preparation assistance to the Government of Sint Maarten in designing has progressed well and the project is expected to be a disaster relief fund (DRF), and associated instruments, approved by mid-2022. to be capitalized by the substantial reflows expected from the Government’s loans to PJIAE for reconstruction. These loans were made possible by a grant from the SXM TF. Potential Housing Project Reflows pertain only to the principal part of the loans and In July 2021, the SC set aside US$20 million for a potential are expected to begin accruing in 2027 and accumulate housing project and requested the World Bank to assess gradually over more than a decade. The technical assis- whether a relevant project could feasibly be completed tance will build on DRF core principles and good practices. within this financing envelope by the SXM TF’s closing It will provide recommendations on the DRF’s design, date. An options note prepared by the World Bank, in governance mechanisms, and optimal investment strate- close consultation with the NRPB and the Government of gies, including for the purchase of insurance coverage to Sint Maarten, was discussed informally by SC members mitigate disaster risk. in November 2021. The SC requested the World Bank and NRPB teams to further explore options for a social housing project, which would strengthen SMHDF’s financial and operational capacity, help address market failures in the housing sector, and potentially upgrade public spaces in vulnerable neigh- borhoods. Further discussion on this potential project is expected in the first quarter of 2022. Analytical Work Several studies and critical analytical work were completed and shared with the Government of Sint Maarten to inform project identification, preparation, and sector manage- ment. They are listed in table 4.4. In July 2021, the SC requested that the World Bank provide technical ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 33 Activity Summary Continued Table 4.4. Analytical Work and Technical Assistance STUDIES COMPLETED COMPLETION STATUSa 1 Support to Develop National Recovery and Resilience Plan (report) Completed 2 Rapid Housing Sector Assessment (study) Completed 3 Airport Corporate Governance Assessment (study) Completed 4 Sint Maarten Hospitality Reconstruction Financing Due Diligence (study) Completed 5 Tourism Sector Recovery Strategy Support (technical assistance with outputs) Completed 6 Public Expenditure Review Completed 7 Low-Income and Affordable Housing Technical Assistance (technical assistance) Completed 8 Digital Government Strategy (technical assistance with outputs) Draft completed 9 Support to the Airport Corporate Governance Task Force (technical assistance) Completed 10 National Risk Assessment (AML/CFT) (technical assistance)19 Currently interrupted 11 Long-term waste studies Completed ONGOING TECHNICAL ASSISTANCE 12 TA for a Disaster Relief Fund Started 13 MTR of TF Program Ongoing ONGOING STUDIES Estimated delivery 14 Country Environmental Analysis (study) In draft Note: AML = anti-money laundering; CFT = combatting the financing of terrorism; CY = Calendar year. a. Estimated timelines for delivery are subject to change to meet operational requirements, government availability, and the effects of COVID-19.  19 Not financed by the SXM TF. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 34 Project Preparation and Implementation Issues and Solutions Program Implementation Capacity: Project Preparation, Implementation, and Overall Management of Resources The NRPB continued to hire key staff in 2021 and has now with the NRPB, Government, and other counterparts, both sufficient capacity for adequate project management. It on Sint Maarten and in the Netherlands. It was hoped that now has capacity to implement seven projects of various missions would resume in late 2021. However, because of sizes, prepare new projects, and contribute to several the rapid spread of the Omicron variant, resumption of studies. With approval from the SC, the SXM TF program technical missions was delayed. Technical teams conduct will explore options for long-term sustainability of the virtual missions and will resume in-person missions NRPB’s program management, fiduciary, and procurement hosted by the NRPB once the situation allows, hopefully in skills built by the SXM TF, which can greatly help the the spring of 2022. Nevertheless, while project supervi- Government over the long term to tide over its capacity sion remained virtual in 2021, disbursements have steadily gaps. increased across the portfolio. Currently, a little over one-third of the supervision costs Absorption Capacity and Regulatory are being allocated to World Bank fiduciary and safeguard support and 9 percent to hands-on support in procure- Issues ment and engineering (HEIS). The NRPB has built its in- house capacity in project management, fiduciary controls, The World Bank and the NRPB have collaborated to maxi- safeguards, and monitoring and evaluation. However, mize successful tender outcomes in the context of the given the number and size of projects and the speed at COVID-19 pandemic, which has limited the mobility of which projects are being prepared, the HEIS continues to potential bidders. The NRPB has been diligent in engaging provide critical support. As the portfolio matures and more with local and regional firms and to encourage their partic- projects enter into an advanced implementation phase, it ipation in procurement activities. To date, 56 contracts is expected that the HEIS will decrease as the NRPB have been awarded to local firms for projects that are in assumes more responsibilities. implementation. International firms won 42 contracts. Access to the island remains dependent on the rapidly Over time, government senior leadership has demonstrated evolving COVID-19 pandemic and global travel restrictions. stronger ownership and commitment to the objectives of In addition, the remoteness of Sint Maarten for interna- the SXM TF. Line ministries have also taken a more active tional firms makes shipping supplies, recruiting staff, interest. They have benefited from frequent briefs on project finding skilled local labor, and setting up local offices more progress and have been actively engaged in project prepa- expensive. ration and implementation. The Government has supported the NRPB and the World Bank in addressing bottlenecks in Cumbersome administrative arrangements for nonresi- implementation and finding corrective courses of action. dent firms and individuals’ access to the island continue Capacity limitations within the line ministries continue to be to affect implementation capacity. Current laws that a challenge. restrict the NRPB’s ability to hire temporary workers, recruit more local staff at cost-effective pay scales, and Project Supervision Capacity contract with international employees continue to pose a significant obstacle for all projects. To provide supervision and coordination support, World Bank staff and consultants continue to engage virtually ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 35 Outreach and Communications Following the SC visit in December, The Daily Herald published a As the SXM TF program results emerge, lengthy article titled Steering Committee: Airport, hospital, and debris projects 'advancing very well'. In July, a press release media coverage and engagement with announced the allocation of more funds to TF projects and this audiences on social media platforms, was widely covered by local media. Individual project communi- cations teams also engaged in their own outreach efforts to print news, radio, and websites will stakehold¬ers on the ground. SMMC consistently provides continue to be stepped up. updates to the public about progress of the Sint Maarten General Hospital construction. The SXM TF dashboard (www.sintmaartenrecovery.org), the NRPB website (www.nrpbsxm.org), and Facebook The R4CR project remains active on social media, page (facebook.com/sxmnationalrecovery) are regularly promoting new and progressive CSO projects funded updated to inform stakeholders, including government through the CSO Facility (Resources for Community officials, the private sector, NGOs, the media, members of Resilience - Sint Maarten (r4cr.org). The PJIAE communi- parliament, and the general public, about SXM TF activities cations team sends periodical newsletters, engages in and advancement. Internal and stakeholder media brief- many social posts, and broadcasts Rebuild, Recover, ings about TF media coverage are sent on a monthly basis. Reinvent - a monthly online TV series. The ESP was awarded the entity of the year award by a local media outlet. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 36 Appendices ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 37 Appendix A Alignment of NRRP and SXM TF Activities Pillar 1: Community Recovery and Resilience NRRP-LISTED AREAS OF ENGAGEMENT PROJECTS AND ANALYTICAL WORK Housing Housing-related activities • Provide repair assistance • Emergency Recovery Project I: Social and private housing repairs, • Increase access to affordable housing roof repairs, and technical assistance for housing policy and • Strengthen housing for climate resilience resilience standards • Facilitate ownership • Red Cross Roof Repair Project: support for the rehabilitation of the roofs of the most vulnerable households • Rapid Housing Sector Assessment (ASA); Low-Income and Affordable Housing Reconstruction Analysis (ASA) Health Health-related activities • Resilient hospital construction • Hospital Resiliency and Preparedness Project: Repairs and • Enhance secondary health care services upgrading of existing hospital, construction of a new hospital to • Ensure sustainable continuity of hurricane category 5 resistant standards, and financing of medical insurance coverage equipment and infrastructure for COVID-19 pandemic needs • Public Expenditure Review (ASA on health insurance cost and sustainability) Employment, livelihoods, and social protection Social protection and emergency recovery-related activities • Strengthen social assistance through • Emergency Recovery Project I: Rehabilitation of 11 public shelters trainings and programs to supplement • Emergency Income Support and Training Project: household income Stipends, training and improvement of targeted social services • Build additional shelters by building an integrated social registry system • Improve social services and their targeting Solid waste Solid waste-related activities • Remove debris caused by Hurricane Irma and • Emergency Debris Management Project: address dump fires debris clearance, collection of metal and car wrecks; processing • Implement recycling program to reduce waste and disposal of debris; vessel removal and salvaging • Upgrade sewage networks • Long-term Waste Solutions Analysis (ASA): Support for the development of government’s roadmap for sustainable solid waste management • Long-Term Solid Waste Management Project (planned): Investments in long- term solutions Education Education-related activities • Repair and rebuild resilient schools, provide • Emergency Recovery Project I: Repair of schools and psychosocial support, improve safety and community facilities preparedness • Fostering Resilient Learning Project (pipeline) • Strengthen legislation for resilience • Child Resilience and Protection Project: Strengthening • Train teachers in disaster management of psychosocial support for children • Strengthen programs for vulnerable children • Improve vocational and tertiary education options Note: Projects under implementation are in bold. Projects under preparation are in blue. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 38 Appendix A Continued Pillar 1: Community Recovery and Resilience Continued Environment Environment-related activities • Rehabilitate and protect natural and • Solid Waste Management and Environmental Improvement built environments Project (planned) • Strengthen environmental protection • Emergency Debris Management Project: Shoreline clean-up, beautification of public areas, focusing on debris removal and landscaping • Country Environmental Analysis (ASA) Community recovery • Sint Maarten Civil Society Partnership Facility for Resilience - Financing community subprojects through Project - supports efforts to build capacity for local CSOs to local CSOs implement reconstruction and resilience subprojects at the - Building local CSOs capacity for lasting community level impact Pillar 2: Economic Recovery and Resilience NRRP-LISTED AREAS OF ENGAGEMENT SXM TF PROJECTS AND ANALYTICAL WORK Macroeconomic outlook Macroeconomic-related activities • Strengthen Government capacity for tax • Public Expenditure Review (ASA) collection and fiscal policy formulation • National Risk Assessment (ASA and technical assistance) Tourism and commerce Tourism and commerce-related activities • Secure and strengthen resilience of • Enterprise Support Project: Access to finance for micro-, small, tourism sector and medium enterprises (MSMEs • Assist in diversifying the economy by • Tourism sector recovery strategy support (ASA) supporting MSMEs • Sint Maarten hospitality reconstruction financing due diligence (ASA) • SME and tourism recovery (ASA); analysis of tourism support needs Finance Finance-related activities • Increase access to credit and affordable • Enterprise Support Project: Financial intermediaries are investment capital supported to provide greater access to finance for MSMEs Airport Airport-related activities • Repair and rebuild airport for greater resilience • Airport Terminal Reconstruction Project Ports and marinas Ports and marinas-related activities • Restore ports and marinas while ensuring • Emergency Debris Management Project: Vessel removal greater resilience and salvaging Roads and drainage Roads and drainage-related activities • Improve the drainage network in n.a. communities with recurrent flooding Utilities and information and communication Utilities and ICT-related activities technology (ICT • Improve delivery of water, electricity, • Emergency Recovery Project I: Water storage and distribution, and ICT services trenching of electricity lines and electricity repairs • Digital Government Transformation Project: Improve public service centers and government systems • Digital transformation ASA to support analytical work underpinning the Digital Government Transformation Project ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 39 Appendix A Continued Pillar 3: Government Recovery and Resilience NRRP-LISTED AREAS OF ENGAGEMENT SXM TF PROJECTS AND ANALYTICAL WORK Disaster risk management Disaster risk management related activities • Strengthen the National Meteorological • Emergency Recovery Project I: Police station repairs, fire Service department communication equipment and repairs, capacity • Strengthen and repair communications building, improvement of hydrometeorological services; of the fire department accession into CCRIF • Membership into the Caribbean Disaster • Knowledge-sharing about risk financing with other Emergency Management Agency Caribbean countries • Develop a risk-financing strategy and join • LIDAR survey the Caribbean Catastrophe Risk Insurance Facility Governance and public financial management Governance and financial management-related activities • Implement government financial • Public Expenditure Review (ASA): management information system Analysis of public expenditures and systems • Modernize ICT systems • Digital Government Transformation P: Modernize ICT • Implement tax reform back-end systems and services • Rebuild the tax receivers and registry building • Corporate Governance Strengthening - Airport: ASA and technical assistance Justice, public safety, and security Justice, public safety, and security-related activities • Repair and strengthen correctional facilities • Emergency Recovery Project I: Repair of two police stations and police stations and extension of the Emergency Operations Center, repair • Relocate and equip the 911 dispatch center of radiosonde building • Properly equip law enforcement staff • Address critical ICT needs Additional public buildings Additional public buildings-related activities • Repair other public buildings such as the • Emergency Recovery Project I: Repair of key government post office, national library, and the national buildings civil aviation building Note: Projects under implementation are in bold. Projects under preparation are in blue. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 40 APPENDIX B Results Framework: Projects under Implementation as of December 31, 2021 Emergency Hospital Emergency Emergency Income Resiliency and Debris Recovery Support and Preparedness Management Project I Training Project Project Project DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: To contribute to Sint Maarten’s To provide temporary income To improve the preparedness and To manage debris from the immediate emergency recovery support, improve the employability capacity of hospital services hurricane and reconstruction needs and strengthen institutional of affected beneficiaries in activitiesa capacity to manage resilient targeted sectors, and strengthen Outcome indicator 1: recovery and reconstruction the social protection system’s Outcome indicator 1: Number of Overseas medical referrals capacity for shock response and metal wrecks collected and reduced (percentage) Outcome indicator 1: Share of protection of the poor processed households with electrical services Baseline: 0 Target: 45% Baseline: 0 resilient to hurricanes Outcome indicator 1: Number of Target: 100 Baseline: 80% Actuals: 92% beneficiaries enrolled in the EISTP Actuals: 0 Target: 100% receiving income support on a Outcome indicator 2: Emergency Actuals: 86% Disaster Preparedness Plan and Outcome indicator 2: Simpson monthly basis in exchange for Evacuation Plan implemented Bay area cleared from shipwrecks Outcome indicator 2: Water storage their participation in EISTP training according to procedures and shoreline debris (ha) capacity of Sint Maarten utility and achieved the minimum (average daily demand) (percentage) Baseline: 0 attendance rate Baseline: 0.7 days Baseline: 60% Target: 200 Baseline: 727 (of which 420 are Target: 2 days Target: 90% Actuals: 200 female) Actuals: 1.90 days Target: 1,155 (of which 670 are Actuals: 91% Outcome indicator 3: Debris and Outcome indicator 3: Number of female) Outcome indicator 3: Technical Waste Processing Facility citizens benefited from the project Actuals: 1,960, of which 1,350 audits to evaluate quality and Established activities (gender disaggregated) are female preparedness of service delivery Baseline: 0 Baseline: 0 rated satisfactory (percentage) Target: yes Outcome indicator 2: Percentage Target: 40,000 Baseline: 0 Actuals: NYR of beneficiaries who complete Actuals: 3, 206 training in an occupational area Target: 90% Outcome indicator: Shipwrecks (direct beneficiaries), Baseline: 0 Actuals: 0 Safely Collected and Processed Indirect beneficiaries (NYR) Target: 50% (of which half are Baseline: 0 Outcome indicator 4: Percentage of female) Target: 80 beneficiaries that are satisfied with Actuals: 93% of total (62% Actuals: 139 the quality of housing repairs female) (gender disaggregated) Note: a. Development objectives changed Outcome indicator 3: Number of due to project restructuring Baseline: 0 Target: 80% records in the Social Registry Actuals: (NYR) Baseline: 0 Target: 1,000 Note: NYR = Not yet reported. Actuals: 0 ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 41 Appendix B Continued Airport Red Cross Enterprise RC4R - CSO Terminal Roof Repair Support Partnership for Reconstruction Projecta Project Resiliency Project Project DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: To restore the passenger capacity To repair roofs up to a safe To support the recovery of micro, To improve the capacity of civil of Princess Juliana International standard for vulnerable small, and medium sized society organizations and support Airport (PIJAE) to pre-Irma levels households affected by enterprises (MSMEs) through implementation of reconstruction with improved resilience to Hurricane Irma direct financial assistance to and resilience subprojects at the hurricanes contribute to the restoration of community level Outcome indicator 1: Roofs economic activity Outcome indicator 1: repaired to safe standards, Outcome indicator 1: Percentage Passenger handling capacity of the contributing to increased Outcome indicator 1: Cumulative of subprojects approved which are terminal resilience to natural disasters number of MSMEs receiving fully implemented and functional to Baseline: 1 million and climate change packages for assets, repairs or users Target: 2.5 million Baseline: 0 working capital Baseline: 0 Actuals: 1 million Target: 182b Baseline: 0 Target: 75% Actuals 182 Target: 600 Actual: 50%a Outcome indicator 2: Resistance of terminal building to Irma-level Outcome indicator 2: Households Actual: 103 Outcome indicator 2: Percentage hurricanes have increased knowledge of Outcome indicator 2: Cumulative of civil society organizations Baseline: no hurricane-resistant housing number of women-owned or participating in the project with Target: yes Baseline: 0% -managed MSMEs receiving improved capacity for grant Actuals: Ongoing Target: 60% packages for assets, repairs, or management and implementation Actuals 60% Outcome indicator 3: Completion working capital Baseline: 0 Note: NYR = Not yet reported. of package 2 terminal Baseline: 0 Target: 70% a. Project closed reconstruction works b. Target was formally revised from Target: 240 Actuals: 50%b Baseline: 0 200 to 182 Actuals: 35 Target: 100% Outcome indicator 3: Percentage Actuals: NYR - ongoing Outcome indicator 3: Volume of of beneficiaries expressing grants and loans supported satisfaction that subprojects Outcome indicator 4: Installation through the project over its reflected their needs of strengthened jet bridges lifetime Baseline: 0 Baseline: No Baseline: 0 Target: 75% Target: Yes Target: US$33 million Actuals: 100%c Actuals: No Actuals: 8.0M Outcome indicator 5: Installation Outcome indicator 4: Number of of resilient entrance doors Outcome indicator 4: Volume of beneficiaries of subprojects Baseline: No grants and loans supported Baseline: 0 Target: Yes through the project to Target: 10,000 Actuals: Ongoing women-owned or -managed Actuals: 1,970 MSMEs over its lifetime Outcome indicator 6: Restoration Baseline: 0 Note: a. Reflects the percentage of projects of baggage handling system that have been approved and Target: US$13.2 million funded that are fully implemented, Baseline: No which is 12 to date; others are in Actuals: US$ 2.3 million Target: Yes active implementation. Actuals: No b. Based on CSOs’ performance in areas such as timeliness of Outcome indicator 7: PIJAE implementation of projects, submits quarterly reports timeliness of reporting, quality and describing claims received completeness of reporting. c. Reflects project performance in through the Grievance Redress terms of responsiveness to the Mechanism and how issues were community needs. resolved Baseline: No Target: Yes Actuals: Yes ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 42 Appendix B Continued Child Digital Resilience and Government Protection Transformation Project Project DEVELOPMENT OBJECTIVE: DEVELOPMENT OBJECTIVE: To strengthen the capacity of the education and To enhance the access, efficiency, and resilience child protection systems to address and respond of selected administrative public services for to the needs of children and adolescents citizens and businesses. resulting from natural disasters and external shocks. Outcome indicator 1: Increase in Certificate of Good Conduct service transactions processed Outcome indicator 1: Project beneficiaries digitally (disaggregated by sex/vulnerable group) suffering from post-hurricane distress symptoms (cumulative) referred to adequate services (percentage) Baseline: 0% Baseline: 0 Target: 10% Target: 100% Actuals: NYR Actuals: The content of the screening tool Outcome indicator 2: Increase in economic for the detection and reporting of distress license applications processed within a six-week symptoms in pupils is being developed period (cumulative) Baseline: 16% Outcome indicator 2: Implementation of the Integrated Child Protection Case Management Target: 65% system Actuals 16% Baseline: 0 Outcome Indicator 3: Registries connected with Target: 90% the interoperability platform (cumulative) Actuals: The Child Protection Working Baseline: 0 Group is established Target: 5 Outcome indicator 3: Implementation of a Actuals: NYR contingency strategy for the sector Outcome Indicator 4: Increase in the time per Baseline: 0 year that the six selected public services are Target: 95% available to the public Actuals: Draft of the Education Sector Baseline: 15% Contingency Plan has been revised with Target: 99% the support of the Project Actuals: 15% Note: NYR = Not yet reported. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 43 APPENDIX C Financial Overview as of December 2021 Introduction Figure C.1. Allocation of Funds (US$, millions) Total contributions from the Netherlands to the SXM TF for the period April 2018 through December 2021 amounted to US$511.96 million, paid in April 2018, November 2018, December 2020, and December 2021. It is expected that the December 2021 tranche transferred by the Netherlands will be the final tranche under the current Administration Agreement. Total disbursements (for operations and administration) reached US$171.3 million and undisbursed funds US$186.4 million. $13.1 $13 1 M Disbursements over January–December 2021 totaled Bank Executed Activities - Preparation/Implementation Support US$61.4 million. After adjusting for investment income and $4.7 M the administration fee, the TF balance is US$159.1 million Bank Executed Activities-Technical Assistance from contributions. $6.6 M Program Administration Funds allocated directly to operations, analytical work, and $333.2 M Recipient Executed Activities client support (recipient-executed activities, ASA, and preparation and implementation activities) totaled US$351 As of end 2021, recipient-executed activities (investment million. Of this amount, US$333.2 million is available to Sint projects) have been allotted US$333.2 million in funding Maarten’s designated recipients for the execution of for 11 projects through 16 grants. Six projects received 91 projects, with US$78.8 million committed during calendar percent of the total allocations: year 2021. In total, US$13.1 million has been allocated to (a) the Emergency Recovery I - US$100.2 million (30.1 World Bank-executed preparation/implementation percent), which includes the US$45 million additional support activities and US$6.6 million to program manage- financing; ment and administration to date (see figure C.1). During 2021, US$4.7 million was allocated to World Bank- (b) the ATRP - US$92 million (27.6 percent), including the executed technical assistance. newly approved additional financing of US$20 million; (c) the ESP - US$35 million (10.5 percent); (d) the HRPP and additional financing - US$28.6 million (8.6 percent); (e) the EDMP - US$25 million (7.5 percent); and (f) the EISTP - US$22.5 million (6.8 percent). ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 44 Appendix C Continued Figure C.2. Allocation to Recipient-Executed Activities (c) EISTP, by Projects (US$, millions) (d) Enterprise Recovery Project (renamed ESP), (e) EDMP, (f) ATRP, (g) CSPFRP, (h) Red Cross Roof Repair Project, (i) Child Resilience and Protection Project, (j) DGTP, $ (k) Fostering Resilient Learning Project PPG. Figure C.3. Disbursement of Recipient-Executed Activities (US$, millions) $92.2 M Airport Terminal Reconstruction $5.0 M Child Resilience and Protection $7.3 M CS Partnership Facility for Resilience $12.0 M Digital Government Transformation $25.0 M Emergency Debris Management $22.5 M Emergency Income Support and Training $1.8 M Fostering Resilient Learning $100.2 M Emergency Recovery $35.0 M Enterprise Support $28.6 M Hospital Resiliency $3.7 M RC Roof Repair The remaining 9 percent supports the DGTP with US$12 million (US$3 million in technical work for this project is provided through a Bank-executed Trust Fund [BETF]), $21.3M Airport Terminal Reconstruction $1.8 M Child Resilience and Protection the CSO Partnership Facility for Resilience with US$7.3 $2.1 M CS Partnership Facility for Resilience million, and CRPP with US$5 million. The Red Cross Roof $0.0 M Digital Government Transformation Repair Project, which is now completed, received an allo- $18.0 M Emergency Debris Management cation of US$3.7 million. The Fostering Resilient Learning $19.9 M Emergency Income Support and Training Preparation Facility received a grant of US$1.8 million for $49.3 M Fostering Resilient Learning the preparation of the Project. $10.9 M Emergency Recovery $1.7 M Enterprise Support Funds disbursed by these grants amounted to US$151.7 $21.1 M Hospital Resiliency & Preparedness million, of which US$57.4 million was disbursed over $3.7 M Red Cross Roof Repair January–December 2021. A further US$181.5 million remains available for disbursement by implementing agencies under effective projects. The projects include (see figure C.3) (a) ERP I, (b) HRPP, FM Support 7 Procurement Support 1 Environmental Safeguards Support 1 Social Safeguards Support ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 45 Appendix C Continued Disbursement of World Bank-Executed Allocations for World Bank-Executed Preparation and Implementation Advisory Services and Analytical Support Activities Activities World Bank-executed preparation and implementation Figure C.5. Proportional Advisory Services and support funds were allotted to 22 tasks. Total disburse- Analytics Allocations (US$, millions) ments were US$10.5 million (see figures C.4 and C.5), of Grants of Bank Executed Advisory Services and which US$2.1 million was spent between January and Analytical Activities in April 2018 - December 2021 December 2021, with a further US$2.6 million in undis- bursed funds yet to be spent. Around 66 percent of funds were disbursed for project supervision, including 9 percent for hands-on support. Support to safeguards (social, procurement, and financial Emergency Income Support and Training management) $ amounted to 34 percent of the total expen- ditures for preparation and supervision. Figure C.4. Disbursement of Preparation and Implementation Support Activities by Category (US$, millions) Disbursement by Category - $10.5 M 11% Hurricane Irma Recovery Framework 1% Hospital Reconstruction Financing Due Diligence 1% PJIAE CG Task Force Support 21% Digital Government Transformation Project 8% Low-Income and Affordable Housing Technical Assistance 12% Debris Clearance Management in wake of Hurricane Irma 25% Sustainable Waste Management and Public Cleaning Services 4% Private Sector Recovery and Resilience Strategy Support 9% Public Expenditure Review 8% Improving Mental Health Services 66% Project Supervision Note: TA = technical assistance 5% FM Support PJIAE = Princess Juliana International Airport. 7% Procurement Support 10% Environmental Safeguards Support 12% Social Safeguards Support * HEIS accounts for 9% of project supervision ** Support from safeguards, procurement, financial management account for 34% of supervision activities ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 46 Appendix C Continued Table C.1. Disbursements as of December 31, 2021 (US$) Funds committed by Government of the Netherlands at signing (up to) a 548,010,044 Funds received from Government of the Netherlands (all tranches received) b 511,964,051 Investment income to date 13,873,811 Administration fee to date 9,037,316 Total disbursements 171,315,055 Operational (RETF and BETF) 165,932,156 Non-operational (PM&A) 5,382,900 Total undisbursed funds 186,350,471 Operational (RETF and BETF) 185,093,371 Nonoperational (PM&A) 1,257,100 Funds available for disbursement and allocation of confirmed activities 159,135,020 Funds retained by the government of the Netherlands based on original commitment 36,045,993 Note: PM&A = Program Management and Administration. a. Funds committed by the Government of Netherlands is €470 million at signing of the Administration Agreement. US$548 million is based on the actual exchange rate conversion for funds received and the current exchange rate for funds not received. b. No further transfers are expected. The Netherlands has retained remaining funds for bilateral use. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 47 Appendix C Continued Table C.2. Summary of Disbursements for Activities (US$) April 2018- Undisbursed ACTIVITY Budget December 2021 funds at end of allocatedb disbursements December 2021 Total 357,674,927 171,315,055 188,353,069 Budget April 2018- Undisbursed allocatedb December 2021 at end of funds disbursements December 2021 Recipient-executed activities 333,202,923 151,656,045 181,546,878 TF0A8079 Emergency Recovery I 55,200,000 TF0B5199 Including Additional Financing 45,000,000 49,333,265 50,866,735 TF0A8176 Hospital Resiliency and Preparedness TF0B3788 Including Additional Financing 28,610,000 21,398,869 7,211,131 TF0A8265 Emergency Income Support and Training 22,500,000 19,909,980 2,590,020 TF0A9223 Enterprise Support Project 35,000,000 12,190,125 22,809,875 TF0A9261 Emergency Debris Management 25,000,000 18,005,277 6,994,723 TF0B0760 Airport Terminal Reconstruction TF0B7571 Including Additional Financing 92,000,000 21,484,372 70,515,628 TF0B2442 Red Cross Roof Repair Project (Main and Additional Finance) 3,745,130 3,745,130 0 TF0B3014 Civil Society Partnership Facility for Resilience (CSPFRP) including 7,200,000 TF0B2229 Project Preparation Grant 147,793 2,095,716 5,252,077 TF0B4140 Child Resilience and Protection Including 4,488,000 TF0B2513 Project Preparation Grant 512,000 1,765,535 3,234,465 TF0B4914 Grant for the Preparation of the Fostering Resilient Learning Project 1,800,000 1,727,775 72,225 TF0B4218 Digital Government Transformation Project 12,000,000 0 12,000,000 Undisbursed funds as of December 31, 2021 April 2018 - Budget December 31, 2021 Available World Bank-executed activities allocatedb disbursements Commitments balancea ASA 4,713,139 3,778,286 87,754 847,099 Preparation and implementation support 13,109,464 10,497,824 360,533 2,251,107 Program management and administration 6,640,000 5,382,900 79,150 1,177,951 Note: a. Bank-executed available balance means total budget minus disbursements and commitments. b. Allocated budget refers to budget allocated to grants for specific ongoing activities, not to overall budgeting for the TF duration. ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 48 APPENDIX D SXM TF Governance Structure The SXM TF is a tripartite partnership • World Bank: Ms. Lilia Burunciuc, Country Director for the Caribbean Countries. between the Government of Sint Additionally, a technical working group composed of tech- Maarten, the Government of the nical staff drawn from each of the three parties prepares Netherlands, and the World Bank. the groundwork of the SC meetings and convenes on a regular basis to discuss the program’s results and chal- lenges, resolve pending issues, resolve differences, or Steering Committee clarify information. The SXM TF is governed by a three-person SC composed of The World Bank’s program manager heads the secretariat representatives of the Government of Sint Maarten, the of the SXM TF on behalf of the World Bank. Government of the Netherlands, and the World Bank. The SC makes allocations by consensus for the funding of short-, medium-, and long-term recovery projects and In Sint Maarten required capacity-building activities. The NRPB, which manages the recovery on the ground, The members of the SC are was created by law in Sint Maarten. Its staff consists of • Sint Maarten: The Honorable Marcel Gumbs, Former employees and consultants, supported as appropriate by Prime Minister; technical advisors of the World Bank and of the • The Netherlands: Mr. Frans Weekers, Deputy Netherlands. Secretary General, BENELUX Union; and ANNUAL REPORT 2021 SINT MAARTEN RECOVERY, RECONSTRUCTION AND RESILIENCE TRUST FUND 49