Document o f The World Bank

Report No: 25598

FOR OFFICW USE ONLY

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 9.0 MILLION (US$12.80 MILLION E ~ ~ A L E N T ~

TO THE

~ E P E N D E ~ T STATE OF SAMOA

FOR A

SECOND ~ ~ S ~ R ~ C T ~ ASSET ~ A G E M E N T PROJECT

IN SUPPORT OF THE SECOND PHASE OF THE

~ ~ S ~ U C ~ ASSET ~ A G E ~ E ~ T PROGRAM

December 3,2003

Transport Sector Unit East Asia and Pacific Region

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties, Its contents may not otherwise be disclosed without World 3ank authorization.

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ARNTMS 3PIP CAS CHZ CIMP CIMS COEP DLSE DP EA ELA EIRR EMP EC FMS FRR GIS GoS GPS LA IAM IAPSO ICB IATA ICAO ICT I L S IPSC LTA L A W MWTI M A S MNRE MOF

CURRENCY EQUIVALENTS

(Exchange Rate Effective October 3 1,2003)

CurrencyUtlit = Tala 1 Tala = US$0.35 US$1 =; 2.90 Tala

~ 3 ~ V L A ~ I O N S ANL, ACRONYMS

Apia Road Network and Traffic Management Study Borrower‘s F’roject Implementat~on Plan Country Assistance Strategy Coastal Hazard Zone Coastal Infrastructure Management Plan Coastal Infiastructwe Management Strategy Codes o f Environmental Practice Department o f Lank Survey and Environment Displaced Persons Environmental Assessment Environmental Impact Assessment Economic Internal Rate o f Return Environment Management Plan European Union ~ C o ~ ~ ~ i o n ) Financial Management System Financial Rate of R e m Geographic Information System Govement of Samoa Global Positioning System Implementing Agency Lnfrastructure Asset Management (Project) Inter-Agency Procurement Services Office International Competitive Bidding International Air Transport Association International Civil Aviation Organization Infomation and C o ~ ~ c a t i o n s Technology Instrument Landing System IAM Program Steering Committee Land Transport Authority Land Acquisition and Resettiement Framework Ministry o f Works, Transport and Infrastructure Minor Auports Study Ministry of Natural Resources and Environment Min is t ry o f Finance

NCB NDMO NEOC NGO PCM PEAR P M U PSRM PUMA PWD RFP RSP RTAS SA SAA s m s SDS

National Competitive Bidding National Disaster Management Office National Emergency Operations Center Nm-govement Organization Project Component Manager Preliminary Enviromenbl Assessment Report Project Management Unit Public Sector Re€orm Program Planning and Urban Management Agency Public Works Department Request for Proposal Road Sector Plan Road Transport Administration and Safety Social Assessment Samoa Airport Authority Samoa Asset Management System Strategy for the Development of Samoa

Vice President: Jemal-ud-din fcassum Country Manag~/D~ector : Xian Zhu

Sector ManagerlDirector: Jitendra N. Bajpai Task Team Leaderflask Manager: William D.0, Paterson

This document bas a restricted distribution and may be used by recipients only in the performance of their official. duties. I t s contents may not be otherwise disclosed without World Bank authorization.

SAMOA SECOND ~ ~ F ~ ~ T R U C T ~ ASSET M ~ ~ G ~ ~ ~ N T PROJECT

CONTENTS

A. Program Purpose and Project Development Objective

1, Program pwpose and program phasing 2. Project development objective 3, Key performance indicators

3. Strategic Context

1, Sector-related Country Assistance Strategy (CAS) goal supported by the project 2. Ma in sector issues and Government strategy 3. Sector issues to be addressed by the project and strategic choices 4, Program description and performance triggers for subsequent loans

C. Program and Project Description Summary

I. Project components 2, Key policy and institutional reforms supported by the project 3. Benefits and target population 4, Institutional and implementation arrangements

D. Project Rationale

1. Project alternatives considered and reasons for rejection 2. Major related projects financed by the Bank; andor other development agencies 3. Lessons leamed and reflected in the project design 4. Indications o f borrower commitment and ownership 5. Value added of3ank support in this project

E, Summary Project Analysis

1. Economic 2, Financial 3 , Technical 4. Institutional 5. Environmental 6. Social 7, Safeguard Policies

Page

3 4 4

9 11 11 12

13 13 14 15 15

15 16 17 17 18 19 21

F. Sustainability and Risks

1. Sustainability 2. Critical risks 3, Possible controversial aspects

G. Main Credit Conditions

1. Effectiveness Condition 2. Other

H, Readiness for Implementation

I. Compliance with Bank Policies

Annexes

Annex 1: Annex 2: h e x 3: Annex 4:

Annex 6:

Annex 7:

Annex 9:

Annex 5:

~ n n e x a:

Project Design Summary Detailed Project Description Estimated Project Costs Cost Benefit Analysis Summary, or Cost-Effectiveness Analysis S t r i m m y Financial Summary for Revenue-Easning Project Entities, or Financial Summary (A) Procurement ~ g e m e ~ t s (3) Financial Management and Disbursement Arrangements Project Processing Schedule Documents in the Project File Statement o f Loans and Credits

Annex 10: Country at a Glance Annex 1 1 : Land Acquisition and Resettlement Framework Summary h e x 12: Social Assessment Smw Annex 13: Environmental Assessment Summary Annex 14: Road Sector Overview and Assessment

22 22 23

23 23

26

26

27 31 40 42 47 49 54 60 61 62 64 66 71 77 a2

SAMOA Second Mastruchre Asset Management Project

Project Appraisal Document East Asia and Pacific Region

EASTR

Team Leader: William D. 0, Paterson Sector(s): Roads and highways (70%), Flood protection (20961, Aviation (10%) Theme(s): Natural disaster management (P), Rural services and infrastructure (F), Administrative and civil service reform (PI, Environmental policies and institutions (S), Land management (S)

Date: December 3,2003 Sector ~ a n a ~ e r / ~ ~ r e ~ ~ ~ r : Jitendra N. Bajpai Country ~ a n a ~ e r ~ ~ e ~ ~ o r : Xian Zhu Project ID: PO75523 Lending Instrument: Adaptable program Loan (A~L)

Commitment Closing

Independent State of Samoa

1 ]Loan Ix] Credit ] Grant I ] Guarantee [ 1 Other: For LoanslCreditslOtfiers: Amount (US$m]: 12.80

Proposed Terms (IDA): Standard Credit Grace period (years): 10 Commitment fee: 0 . 0 0 - ~ , 5 ~ ~

Years to maturity: 40

Borrower: INDEPENDENT STATE OF SAMOA Responsible agency: MINISTRY OF FINANCE Treasury Department P.O. Box 3017 Beach Road 1307 Apia, SAMOA Contact Person: Ms. Hinauri Petana, Chief Executive Officer Fax: 6 8 5 21312 or 24779 P h t-685 22 498 or 34 333

MINISTRY OF WORKS, TRANSPORT, AND ~ F ~ S T R U C ~ U ~ Address: Private Mai l Bag, Apia, SAMOA Contact Person: Mr. Vaaelua N. Vaaelua, Chief Executive Officer Tel: +685 20 865 or 21 61 1 Fax: +685 21 927

Other Agency(ie3): MINISTRY OF NATURAL RESOURCES AND E ~ ~ R O ~ E N T Address: Private Bag, Apia, SAMOA Contact Person: Mr. Tu’u’u Ieti Taulealo, Chief Executive Officer Tel: +685 22 48 1 Estimated Disbursements ( Bank FMUS$m):

Fax: +685 23 176 Email: T u u ~ . ~ e t i ~ S ~ o a . Ws

Project implementation period: 5 years Expected effectiveness date: 0313 112004 Expected closing date: 1213 112008

- 2 -

A. Program Purpose and Project Development Objective 1. Program purpose and program phasing:

The purpose o f the Infrastructure Asset Management Program (IAMP) i s to:

Enhance the economic, e n v i r o n ~ e n t a ~ and social sustainability of transport and coastal infrastructure assets, and to manage those assets, natural resources and disaster risks through an effective partnership with private sector s ~ a ~ e h o l d e r ~ .

The Program i s being implemented over a period o f nine years in two phases as follows, to meet the targets shown in the table below, which i s updated from the original outline, i.e.:

0

0

LAM- 1 : Meeting Vital Priorities and Strengthening Management (1999-2003) IAM-2: Investing for Sustainable Growth and Protection (2003-2008).

IAMP Phases:

Period

Project Development Objective

Key Program Outputs

Criteria for:

i) Subsequent Adaptable Program Financing (IAM-1 to IAM-2) and

ii) End-of-Program

Phase IAM-I

January 1999 - March 2004

‘ita1 Infrastructure Priorities and Strengthened lanagement

0 International air transport infrastructure i s sustainably adequate for economic growth

0 Reliability and safety of road system assets i s improved

0 Environmentally and socially sustainable management of coastal infrastructure i s initiated

0 Management of infrastructure assets i s becoming service-oriented involving public, private and community stakeholders

0 Faleolo airport operation complies with ICAO standards; termha1 processing satisfies IATA Categoy C,

0 Road Sector Plan (RSP) endorsed by Cabinet

0 Coastal Zone Infrastructure Strategy endorsed by Cabinet

0 Public Works Deparhent (PWD) new role and functions endorsed by Cabinet

0 DLSE reform plan endorsed by Cabinet

Phase IAM-2

July 2003 - December 2008

Investing for Sustainable Growth and Protection

0 Air transport infrastructure consolidated and managed sustainably.

0 Land transport and road system assets under restructured and sustainable management and financing

0 Access, capacity, and safety of road system assets enhanced for remote communities and Apia

0 Management of environment, natural resources and disasters, restructured and in partnership with civil society

0 Environmentally and economically sustainable protection of infrastructure assets in coastal and other areas

0 Al l primary road, international airport, and public coastal infrastructure are under asset and information management

0 At least 60 percent of road and coastal infrastructure developments justified by appraisal and priorities of approved sector plans

0 At least 80 percent of coastal communities participate in Coastal Infrastructure Management Strategy (CIMS)

0 Public cost recovery targets achieved: 80 percent of full costs for aviation (SAA), and 80 percent of preservation costs of primary roads (MWTI)

0 New MWTI i s fully operational and staffed.

0 80 percent of coastline on Upolu and Savai’i adequately protected for 20-yr storm events

- 3 -

2. Project development objective: (see h e x 1)

As the second Project is the last phase of the Program, the two development objectives reflect the Program goal:

e

e

Key infrastructure assets perform satisfactorily with sustainable resilience to natural risks.

Oversight and management o f infrastructure, natural resources, and national emergency are effective and efficient, with participation o f private sector and stakeholders.

3. Key performance indicators: (see h e x 1)

The principal performance indicators for monitoring the development objectives are:

Establishment, s t a f i g , and h c t i o n i n g o f MWTI and MNRE.

Asset mnagment strategies, supported by information sysems, in place for primary roads, aviation, and coastal infrastructure assets,

Coastal communities protectedlcovered through infrastructure risk management plans.

Achievement o f cost recovery targets for air t r m p o r t and road infrastructure.

Service quality ratings by road users and affected groups.

Reduction in unit costs for maintenance and road user costs.

Share o f private sector provision o f infrastructure works and services.

B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see h e x 1) Document number: Pacific Regional Strategy, Report No. 20370-EAP

The framework for the Bank’s engagement in the nine member countries o f the Pacific region i s articulated in the Pacific Regional Strategy, M a y 2000, The core o f the 3&s strategy for the Pacific region i s poverty reduction through support for “the human capital, policies, institutions, and physical infrastructure” needed for equitable and sustainable growth, The Strategy emphasizes a sectord focus on education, health, transport, and t e ~ e c o ~ ~ c a t i o n s sectors, with an added emphasis on strengthening private sector capacity in these areas. Support for transport infrastructure and telecomm~icat ions are expected to assist in addressing the remoteness and isolation o f the Pacific countries. Tae sector-specific goals supported by the project in line with the CAS objectives are to:

Date of latest GAS discussion: M a y 2000

e consolidate reform of the former Public Works Department, now the Ministry o f Works, Transport, and Infrastructure (MWTI) to complete its transition from infrastructure provider to infkastructure asset manager;

continue to enhance the role and capacity o f the private sector in provision o f works ;

improve construction quality by supporting the introduction o f independent supervision of works;

promote sustainable transportation through conhued attention to traffic safety, and to environmental and social considerations in infrastracture design, construction, operation, and mainenance; and

e

e

- 4 -

promote macroeconomic growth through providing much needed support for coastal protection infrastructure.

2. Main sectox issues and Government strategy:

The Samoan government's first Statement o f Economic Strategy in 1995 laid the foundation for a parhership between the g o v m e n t and the private sector, and focussed on economic recovery with appropriate macroeconomic policies and a structural reform program. The g o v e ~ e n t ~ ~ efforts resulted in a strong economic recovery with an average GDP growth rate o f 4.7 percent per annum between 1995-2002, However, growth slowed down sharply in 2OOLiO2, with real GDP increasing by only 1.9 percent. The government's latest economic strategy for the three year priod, 2002-2004, is presented in the Strategy for the Development o f S m o a (SDS), 2002-2004. The Strategy i s focussed on maintaining the stable macroeconomic environment established over the last few years, improving education and health standards, continuing to nurture an enabling environment for the private sector, improving infrastructure services, enhancing opportunities in the agricultural and tourism sectors, and continuing significant c iv i l service restructuring. Tfie c iv i l service restructuring i s running parallel to the project-supported transport sector reformy which led to the formation o f the Ministry o f Works, in place o f the former Public Works D e p m e n t , in April 2002, and to its major downsizing on October 2,2002. In January 2003, Cabinet approved a new organizational structure for government under the ongoing hbXic Sector Reform Program (PSRM). Within this structure, the MOW i s merged with al l infrastructure and transport to form the Ministry o f Works, Transport, and Infrastructure (MWTI).

The next phase o f reform involves the implementation o f the re-aligned government structure. T i i s includes particular attention to issues of: (i) redundancy (assisting staff in defining and transitioning to alternate employment); (ii) staffing (recruitment o f senior management and professional staff); (iii) creating regulatory capacity; (iv) staf f training; and (v) sector funding. Once the new structure i s in place, the reform program will continue implementation of: (i) p e r f o m c e budgeting; (ii) devolution o f fmancial control and personnel m ~ a g e m e n t to line departments; (iii) introducing strategic and corporate planning in line departments; (iv) requiring project appraisal, monitoring, and evaluation o f a l l public investments; and (v) strengthening infomat ion systems for performance and monitoring.

3. Sector issues to be addressed by the project and strategic choices:

The focus o f the IAM Program on transport and coastal infrastructure addresses a substantial portion o f the scope o f the recently merged Ministry, with the other aspects o f energy and water being supported under other assistance. The existing transport system is fairly well developed. The lan4 marine, and aviation infiastructure i s basic, generally appropriate and in good condition as a result o f moderate investment programs over the past decade. Services are provided by market-oriented companies, service levels are reasonable in terms o f quality and co~ec t i v i t y , and there is some choice o f service.

The primary challenge is the planning and financing o f investments and preservation o f the infrastructure assets that will be adequate to support continued economic growth, while being financially sustainable without dependence on extemal assistance, In respect o f investments, the f r s t Project raised the international airport infrastructure to an operational standard adequate for the medium-term, but the road infrastructure is not adequate to meet the rapid growth in land transport especially in the urban area. In terms o f the public sector reform o f service delivery, public works and transport have been leading the way with the reforms achieved under the first Project, but much remains to be done especially in land transport and in addressing institutional capacity. Coastal infrastructure has a priority because much o f the economic activity and population are concentrated in coastal zones which are vulnerable to natural hazards

- 5 -

and comprise fiagile ecosystems. However, the environment and the small scale o f the economy are also exposed to other natural and man-made risks, including climate change, which require careful attention to the management o f natural resources, witfiin cultural txaditions, and so there is a need to extend the area o f focus to a broader framework o f emergency and r isk management.

Individual subsector issues include the following:

(a) Aviation Infrastructure: The first Project undertook major rehabilitation o f the primary international airport at Faleolo, raising it to full current ICAO (International Civil Aviation Organization) standards, and strengthened the business practices o f the Samoa Airport Authority (SAA). The 2001 Minor Airports Study highlighted the high costs o f operating the thee minor airports in the country and recomended closure o f the Fagali’i and Asau airports, The minor airports need varying degrees o f rehabilitation, and S A A has recently upgraded Maota in Savaii as an international airport for regional traffic, SAA plans to use its own resources to manage the minor airports and i s seeking assistance to replace the lnstnunented Landing System (ILS) at Faleolo. S A A needs to implement various strategic actions through their business plans--such as closures, raising revenues, and maintaining safety-in order to reach its goal o f financial sustainability. Use o f an asset management system would help to plan and reduce maintenance costs.

(b) Road Infiastructure and Transoort: Under IAM- 1 , an asset management system was introduced, the road infrastructure assets surveyed (covering all public infrastructure assets under the management of the MWTI including roads, bridges, coastal structures, and buildings), and a l0-year Road Sector Plan prepared. The primary road network, comprising 857 km o f road, is in predominantly good condition (80 percent good and 79 percent paved). However, more than 80 km has inadequate traffic capacity and 13 bridges require replacement or improvement. The 2002 Plan showed a high concentration o f capacity, upgrading and safety needs in the Apia urban area where traffic has grown more rapidly than elsewhere. It also indicated a need to connect remote villages to the main network, which do not have full motorable access. Administration o f the 13,000 vehicle road transport fleet was improved by a computerized vehicle and driver licensing system in 2002, but realignment o f functions between transport and police i s needed for this to become fully operational and for traffic enforcement to improve. Road safety, which was greatly improved initially in 1999-2000 by the TAM-1 safety program, has not improved fkther and over 70 percent o f accidents involve pedestrians. Under W- 1 , only 40 percent of the program o f works was implemented, due to delays, cost increases and reallocation, and the remainder has been transferred to IAM-2. The primary sector issue to be faced is budgetary: the national budget meets about 60 percent o f preservation needs when fully allocated, but the developmental needs far exceed the capital available for investment. Tfie 2003 Transport Sector Review (TSR) showed that full cost recovery and financial sustainability i s feasible for the road sector with the introduction o f moderate road user charges (see h e x 14 for details).

(c) Sustainable Management o f the Environment. Natural Resources and Risk More than 80 percent of the population and economic activity are located in the coastal zone where the environment i s fragile and options for increasing the resilience to natural hazards in an environmentally sustainable way i s a high national priority. Detailed mapping o f the natural h a r d zones has shown that 80 percent o f the 732 km coastline i s either sensitive or highly sensitive to erosion, flooding, or landslides. Significant erosion has occurred in

- 6 -

some locations due partly to post-cyclone coastal changes and partly to uncontrolled extraction and reclamation. A four-part program to reduce the r isks was initiated under IAM- 1 comprising: (i) strengthening requirements for environmental management in all inikastructure activities; (ii) a national strategy for improving the resilience o f coastal assets to natural hazards and the preparation o f District-level management plans; (iii) improving the quality and accessibility o f land and resource-related information through the creation o f computerized data, images and maps; and (iv) implementation of more sustainable approaches to coastal protection, I t i s now apparent that this r i sk management approach should be raised to a broader national level, strengthening the current provisions for emergency management and adapting to climate change. These are discussed in more detail as follows:

(i) Coastal Risk ~ a n a ~ e ~ e ~ ~ : The national Coastal Infrastructure Management (CM) Strategy, developed from consultation with a range o f stakeholders at national and district levels, was launched in 200 1. Implementation o f the Strategy was begun with the preparation o f comprehensive District-level management plans ( C M Plans) through participatory consultation in traditional mode at village-level, using aerial photographs and local data to identify vulnerable assets, risk reduction options and priorities. Each District CIM Plan became an official agreement between the villages, District and national Ministry (M">. To date 35 percent o f Districts (1 5) have been covered and 28 Districts remain to be covered by similar C I M Plans. Efforts are needed to establish the status of these plans in relation to the new planning regulations and the effectiveness of the approach in controlling adverse development and resource use. The needs for coastal protection are substantial-the initial program has an estimated cost of WST 10 million, and the total needs are likely to exceed WST 30 million (over US$10 million) over 5+ years. Financing and cost recovery for these investments needs to be addressed.

(ii) Land ~ d ~ j ~ j s t r a ~ j o n ~ The wide range o f high quality mapping products and imagery of land and infrastructure assets that has been made available to the public following surveys under IAM-1 has established a new computerized information service within the MNRE. Geodetically referenced location data i s becoming the national basis for sector planning and asset management. The extension o f h f o m t i o n technology into the administration o f lands--the registration and titling o f land ownership--requires the upgrading o f the geodetic survey control network to satisfy cadastral standards of accuracy for land surveys, The current land registration and titling processes are traditional, insecure, difficult to administer, and prone to ambiguity and dispute. Currently, about 19 percent o f land ownership i s public or private and 8 1 percent i s customary. With economic growth, significant sales o f lands have been in progress and these need reliable modern titling and registration systems. There i s also a need to preserve existing title information because some records are disintegrating. In view of th is there i s active demand for the upgrading of land adminstration procedures,

(iii) ~ n ~ ~ r ~ n ~ e ~ t and ~ a ~ ~ r a ~ Resource ~ u ~ ~ g e ~ e ~ ~ : Environmental management of natural resources (covering aggregates and minerals, fisheries, forestry, watersheds, conservation and heritage lands, national parts etc.) i s an emerging core function o f IvfNXE. The tools and approaches that have been developed and

applied to infrastructure management in coastal hazard zones can be extended to the management o f natural resources, The impact o f sand-extraction in the coastal zones i s accelerating erosion in some areas. Coastal resilience can be enhanced by 'soft' measures such as restoring wetlands, Provisions for environmental impact assessment and mitigation plans need to be applied effectively in development works, which requires ongoing training and dissemination among proponents, contractors and regulators,

(iv) Emergency and Risk ~ a n a g e ~ e n ~ , and A d a ~ ~ a ~ ~ ~ n ~ The National Disaster Management Office (NDMO) was moved to MNRE in July 2003 under the public service reform. The NDMO has focused on preparedness and response issues, including very occasional emergency simulations, but the operational structure and plans need to be made more effective. A National Emergency Operations Center (NEDC) in Apia i s in sound condition, but this was not used during the previous cyclones, it lacks c o ~ ~ c a t i o n s equipment and there is no comparable center on Savai'i. Risk management needs to focus more on risk reduction, and to be extended to other natural r isks and assets, including for example, watersheds and flooding, and probably also to technical or man-made hmards (oil spills, security, business interruptions, etc.1. Some assessments are being made o f climate change impacts for Samoa which may augment the current natural hazard risks, and adaptation options could be included in tfie evaluation of r i sk reduction measures.

(d) Institutional Capacitv-Building: In addition to institutional strengthening o f the individual implementing agencies, the L4M Program i s supporting substantial public service reform in both the transport sector and the natural resources and environment sector, and building capacity in information and c o ~ ~ c a t i o n s technology. The issues arising include:

(i) Public Work and Land ~ r a n ~ ~ o r ~ : A major reform in the delivery of public works was achieved in October 2002 when the former Public Works Department was restructured after lengthy preparation and reduced to functions o f asset management and sector policy. All service delivery (for engineering design and supervision, construction, equipment maintenance, etc.) is now outsowced to the private sector, most o f it on a competitive basis but with some direct work agreements which will be phased out over a period o f two years. Most assets were divested, except for two areas considered vulnerable to monopoly, Le., aggregate production and quality assmancelcontrol. Staffing was downsized by 83 percent from 403 to 58, with a focus on professional and managerial skills, However not all the new positions can be filled and the new organization needs training and support. Subsequently in June 2003, the organization was merged into MWTI which covers all transport modes and infrastructure, As aviation, shipping and ports are already under statutory authorities, the challenge i s now to complete the reforms ofroad asset management and land transport a ~ ~ s t r a t i o n by merger in a proposed Land Transport Authority, as envisaged by the SDS 2002. The TSR has identified issues to be addressed and suitable options to be followed. Sustainable financing, by cost recovery though road user charges, will be the key to transforming land @amport into a service-oriented provider like a utility and enabling the organization to attract and retain suitably skilled staff, Aspects to be addressed include the assignment o f road transport administration, regulatory and enforcement functions, the timing and preparation for progression to

- 8 -

(ii)

(iii)

commercialized or statutory status, the structure and pace o f inkoducing cost recovery, and the authority over expenditures.

~ a ~ ~ r a ~ ~ e s o ~ r c e s and ~ ~ ~ ~ r o n ~ e n ~ : The new h4NR.E acquired several new functions including natural resources, meteorology, disaster management, planning and urban management. Substantial support would be needed to address the proposed reforms on land registration, expansion o f land information services, expansion o f emergency and r isk management role, and in finalizing legislation needed on land, environment, and related issues.

r ~ f o r ~ a ~ ~ o n and C o ~ ~ ~ n ~ c a ~ ~ ~ ~ ~ T ~ c ~ n o l o ~ (IC?J: In order to facilitate the sharing o f infrastructure asset information, IAh.4- 1 provided assistance in establishing a policy framework on information technology. The Government has since established an ICT Council in 2001 and i s progressing with other assistance.

4, Program description and performance triggers for subsequent loans:

All performance triggers of the f i s t Project have been met, as indicated in the table of section A. 1.

C. Program and Project Description Summary 1. Project components (see Annex 2 for a detailed description and h e x 3 for a detailed cost breakdown):

The project i s designed around five components similar to the f irst phase to preserve continuity for the objectives and sub-sector components, as s u m x i z e d below (total costs including contingencies).

A, Aimort Infrastructure (US$1.06 million): S A 4 will h d hrther development of the international and minor airports f i om their own resources, including an instrumented landing system. Advisory support and establishment o f asset management procedures are incorporated under capacity budding.

3. Road and Other Infrastructure (vStS16.06 million): Friority physical investments to remove bottlenecks and improve road network capacity, rehabilitate a key corridor, and improve safety and pedestrian facilities, access to remote villages, and resilience o f infrastnrcture to natural hazards, including:

Bridge r e ~ ~ ~ c e ~ e n ~ and r e ~ a ~ ~ l ~ ~ a ~ ~ o n : Improving traffic capacity and safety, and providing access to remote areas through replacement o f about 4 bridges.

Road r e ~ u ~ i ~ i ~ ~ ~ ~ o n ~ Repair, resurfacing and safety improvements to a primary arterial road, the West Coast Road over a length o f 32 h, and also planning services for a future western inland route,

Road safely u n d ~ e d e ~ ~ r i a n f a c ~ ~ j ~ ~ e ~ : Construction o f footpaths and t raEc calming measures to improve road safety in two schemes in the Apia urban area

Road network d e ~ e l o ~ ~ e ~ ~ : Development of an arterial road network and improved capacity in Apia through road and bridge widening to up to four lanes on sections o f Vaitele Street and Fugalei Street, with design and supervision services.

~~~~~e Access: Upgrading road access in selected remote sites, including Fagaloa Bay, with design and supervision services.

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(vi) ~ n ~ a ~ ~ c ~ ~ r e Risk ~ ~ ~ i g a ~ ~ n : Construction o f coastal protection along about 4,000 linear meters at selected sites in accordance with agreed criteria, with supervision services.

C. Technical and advisory assistance to develop sustainable management o f natural resources and the environment, to improve management o f emergencies and to empower c o ~ ~ t i e s and organizations to reduce their r isk from natural disasters, including:

~ n ~ j r o ~ m e n ~ , Risk and Reso~rce ~ a n a g e ~ e n ~ : Technical assistance to: (a) strengthen environmental management and regulations; @) adapt the coastal risk management strategy, incorporate climate change risks, and prepare management plans for 28 Districts; (c) establish systems for monitoring and managing use o f natural resources; and (d) strengthen national emergency and disaster management, training and equipment for readiness and response, and financing options.

Land ~ d ~ ~ n ~ ~ ~ a ~ ~ n and Survey: Tecf ica l assistance for: (a) improving the reliability of survey and geographic information, including upgrading the geodetic survey control, developing technical standards, and training; and (b) improving the accuracy o f land administration information, developing the basis for reform o f the registration and titling system for public and private lands, and preparing related legislation and policy.

Risk ~ d ~ ~ ~ a ~ i o n ~ e ~ s ~ r e s : Non-structural measures to improve resilience o f c o m ~ t i e s by mitigating natural r isks through the provision o f small grants.

Sustainable Management o f h f r a s ~ c ~ e , Natural Resources and Rkks (US$2.23 million):

(i)

(ii)

(iii)

D, Institutional Development in Transwrt and Tnfrastructure (USS1.42 million): Strengthening o f institutional capacity, consolidating and extending reforms of air and land transport with the delivery o f services through the private sector, including:

~ r a n ~ ~ o r ~ and I n ~ a ~ ~ ~ c ~ u r e Reform: Strengthening the capacity for management and regulation o f transport system and assets through continuing reform in land transport, including advisory support for establishing a Land Transport Authority, establishing sustainable financing and aEordable cost recovery through user charges, addressing policy and regulatory issues, advisory support for the Samoa Airport Authority to implement its business and management plans, and transport engineering support to overcome understaffing.

Training: Capacity building and development o f competencies for selected stakeholders under the Prqject.

(i>

(ii)

E. Project management (USS1.83 million): Support for the efficient administration o f the project,

(i) project ~ a n a g e ~ e n ~ : Support o f a central project management unit under contract to Ministry o f Finance, and two project component magers , to assist management o f the

Project ~ ~ d ~ ~ j n g : Support for an independent auditor.

including:

Project.

(ii)

C. Sustainable Management D. Institutional Development

2. Key policy and institutional reforms supported by the project:

(a) For SAA, improving institutional and financial sustainability, through (i) establishment and operation o f an airport infrastructure asset management system; (ii) tariff adjustments to keep financial performance on track (including surcharge o n Fagalii operations); (iii) acceptable program on development and operation o f minor airports, including phased closure o f Fagalii airport; and (iv) reduction in, or full funding of, un-funded community service obligations.

(b) For MWTk (i) commitment to adequately fund annual road preservation program based on an asset management analysis; (ii) schedule for establishment and operation o f proposed Land Transport Authority or similar; and (iii) introduction of road user charges, in acceptable form and scale, and related financial arrangements.

(c) For ~~~ and Emergency Management: (i) provision to ensure effective operational structure for emergency~disaster response; (ii) c o d t m e n t to implement risk reduction strategy for natural hazards and climate change aspects; (iiij dated submission of updated environmental legislation and authorization o f related regulations; and (iv) commitment to begin reform o f land titling and registration procedures.

3. Bt.nefits and target population:

The benefits from the project will derive fiom its outcomes in the following areas:

(a) There would be r e d resource savings (including foreign exchange) in total road transport costs through reduction of life-cycle road infkastructure costs, reduction o f accident costs, and lower road user costs. Both roadside communities and road users w o d d benefit from improved safety and constraint o f the adverse impacts o f growing traffic volume, speed, and emissions. where road transport i s provided by intermediate service suppliers @ublic bus operators, taxis, fieight, and hauliers), the user savings can be expected to be passed on to the final users (passengers, shippers, businesses, and government agencies) since the markets for road services are quite competitive. Improved accessibility for mra l and remote communities will tend to improve livelihood and the delivery of basic public health and education services and hence, the quality o f l i fe for lower income mral villagers saved by the feeder roads within the project,

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@) Public and private assets in coastal hazard zones would have improved resilience to natural disasters, through improved control o f drainage and flooding, physical protection, or control o f activities, which will lessen the expected damage from events with a 10-year return frequency to non-critical levels, and from worse events to restorable levels, Village communities which are in coastal hazard zones will have lower r isk to their livelihood and assets. Natural resources such as f ish populations and sand materials could return. to sustainable levels with appropriate infrastructure design and management.

(c> There would be general socioeconomic benefits and fiscal savings derived from a streamlined public service, a strengthened and expanded private sector, increased community participation, ready access to high quality land- and asset-related information, strengthened land ownership procedures, and sustainable management of, and investment in, infrastructure.

4. institutional and implementation arrangements:

The arrangements from IAM- 1 , which proved highly successfil, would be followed with minor adjustments.

IAM Program Steering Committee (IFSC): reporting to the Ministry o f Finance as executing agency, comprising heads o f the implementing agencies and authorities, representatives o f other key stakeholders including Ministry for Women, Community and Social Development, Public Service Commission, and a c iv i l society representative, The Froject Management unit can attend as observers.

hdement ing Agencies: The implementing agencies are the responsible Ministries, is.: Ministry of Finance, MWTI, and IvINFtE.

Project Management Unit: A small private sector team would be employed as the Project Management Unit, under contract to MOF as central agency, under the direction of the IAM Program Steering Committee (IPSC), and comprising a project manager~procurement specialist (engineer), a c c o u n ~ ~ f ~ a n c i a l management specialist, social assessment specialist and d i s s e m ~ a t i o ~ a ~ s t r a t i v e assistant. The two implementing agencies, MWTI and MNRE, will each appoint a Froject Component Manager (PCM) to manage their respective component activities. In order to defray costs, the PMU will serve less than fidl-time.

Funds Flow. At central level, the MOF will open one Special Account denominated in U S dollar currency for receiving funds from the World Bank, and will set up a separate Froject Account (GPA 99) for W - 2 , which will be treated as a Bank Account, instead o f opening another account for the project in a commercial bank, Any payments will be charged to individual “child accounts” for each project component identified under the parent GFA 900 coded account with a separate GPA sub-account for the counterpart contribution from which taxes will be paid out. The Special Account will be opened at the Central Bank. The GPA account will have an opening balance from the counterpart con!ibution to W - 2 under implementing agencies’ budgets and funds transfemd from the Special Account (held with CBS>, based o n actual disbursements provided by the PMU,

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E). Project Rationale 1. Project alternatives considered and reasons for rejection:

(a) Termination of the IAM Prorrram: Not appropriate, because Government commitment to the Program objectives remains high (Cabinet decision June 2002); the objectives remain relevant; performance on the first p h e was generally excellent although an extension of time was required for one component; all trigger criteria were satisfied by August 2003, The APL instrument has proven ideally suited to the Project and Program, and both Government and 3ank task management are fully supportive o f its continuation.

Potential inclusion o f other infiastnacture assets or natural resources within the s c o ~ : (i) Water supply and electric power supply both require similar asset management improvements, but are under other f o r e i ~ - a s s ~ s ~ c e ; and (ii> Watershed mapping and management i s crucial to control flooding and water supply~overnment financial resources are insufficient to permit a major input, but the information, mapping, and hazard aspects can be included in the IAM-2.

Expansion o f IAM P r o m S c o w The identified needs for a larger program o f infrastructure improvements would justify a 20 to 50 percent increase in the value o f the second phase. Although G o v m e n t is heavily committed on development investments in other sectors at present, the prospect o f cost recovery and financial sustainability for the road program h;rs made expansion of the project feasible and the Government requested this in September 2003.

(b)

(c)

Sector Issue

2. Major related projects financed by the 3ank andlor other development agencies (completed, ongoing and planned).

Project

Bank-financed Infrastructure management, sector reform, risk management

Samoa: kd?astructure Asset Management Project

Latest Supervision (PSR) Ratings

Information technology

(Ban k-finance Implementation Progress (IP)

S

Froject Samoa: Telecommunications and Postal Sector Reform

S

Infrastructure rehabilitation, capacity-building 3ther development agencies

Sewerage and drainage. Water supply Institutional strengthening

Urban planning and management;

s

Samoa: Health Sector Management Project

AD3

EC AusAID (various)

S

(Highly Unsatis

projects only) Development

Objective (00)

HS

s

s

S

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3, Lessons learned and reflected in the project design:

(a) For a Project with multiple sub-sectors (to address the small scale o f Pacific operations), the mapping o f individual agencies over the three main components (SAA, MOW, and DLSE), and the coordination o f the institutional reform component with the Government’s public service reform agenda, have proved particularly successful in the implemen~t ion o f the f u s t phase. Borrower commitment, participation, and control have been fill and high, with consequent effective capac i t y -bu i l~g in each agency. T h i s structure has been continued in the design o f Phase 2.

(b) Tfie participatory approach to natural r i sk management fias proved to be very successful and highly suited to Samoan society. It has become a model for other operations in the Pacific, and warrants extension. Furthermore, the scale o f the operation that was made possible by the IDA support has enabled an extent o f implementation that cannot be achieved through existing regional organizations such as SOPAC and SPREP, but which i s consistent with the regional approaches. Such partnerships are l ikely to be crucial for achieving similar goals in other Pacific Island countries.

(c) The jo int financing arrangement with AusAID under L4M- 1 , focused on one institutional strengthening subcomponent, proved to be a productive and efficient financing arrangement. For AusAID, it afforded direct support for PWD reform, but w i t h the fiamework o f a larger Project with its related quality controls and oversight, and minimal administrative requirements, (Not continued for L4M-2.)

(d) The project management arrangements, which were innovative in using a private sector team under contract, proved to be ideal for a project with some major procurement and a relatively complex structure involving multiple implementing agencies and a large number o f project activities. Tfie focused structure meant that the procurement and fmancial management performance was better than for previous projects in the Pacific. Task management was facilitated by the rapid up-slcilling o f the PMLJ on procurement and accounting, and project oversight by the steering c o d t t e e also benefited through good reporting and responsiveness. Tfie capacity-building achieved in the W s was focused on project management skills rather than service delivery, and the workload o f project management did not exacerbate the severe staffing shortage.

(e) Packaging for national procurement, apart f rom the major intemational contracts, was designed to stimulate the domestic industries though the use o f relatively small package sizes, I t was successful in stimulating private f i to form partnerships and attracting regional f u m s to compete for consulting services, but had a smaller-than-expected effect on increasing local employment. However, it also caused a huge procurement workload, totaling over 70 packages for the f irst Project, which was one cause for implementation delays. Packaging has been streamlined for the new Project.

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4. Indications of borrower commitment and ownership:

The G o v e m e n t implemented the first phase project well and achieved major reform objectives in public works. Preparation of Phase 2 was initiated early with a Project Concept workshop in November 200 1, Cabinet approved preparation o f Phase 2 in June 2002, and after resolving issues on conditions a preparation Grant Agreement was approved in December 2002. A detailed project design workshop was conducted in February 2003. The Program Steering Committe and preparation team are already in place and adequate budget fias been provided for preparation. Recently on 24 November 2003, Cabinet has also approved a road-map for the next phase o f reform for land transport,

5. Value added of Bank support in this project:

Continuity o f Bank support within the IAM Program fkamework will help emure achievement and sustainability o f the outcomes, especially for sector reform. 3an.k experience in and support for emergency and risk management in the Pacific facilitates a full-scale implementation o f improvements and risk mitigation measures, and the success o f the participatory model in the f i rs t Phase provides a &g start to completion o f the coverage o f all o f Samoa. The Bank's experience and knowledge base in institutional reform and asset management for infrastructure and transport sectors has facilitated the success of the first phase.

E. Summary Project Analysis (Detailed assessments are in the project file, see h e x 8)

1. EconoIxlic (see Annex 4): a Cost benefit 0 cost effectiveness 0 Other (specify)

NPV=US$89 million; ERR = 46 94 (see h e x 4)

The detailed economic evaluation for the project covers the road infrastructure component, comprising 71 percent ofthe project financing (66 percent o f the project cost), is.:

e

e

e

widening of urban roads and bridges,

upgrading o f rural roads, and

rehabilitation o f the West Coast Road,

The principal measured benefits included in the analysis are savings in vehicle operating costs, reduction in travel time, and enhanced road safety. The overall economic internal rate o f return for the project i s estimated at 46 percent. The overall economic net present value 0, based on a 12 percent discount rate i s estimated at WST 257 m (UStSXS m), with an overall benefivcost ratio o f 10.3. A more detailed description o f the analysis and results i s presented in h e x 4. All components, and in particular the rural roads component, are expected to have positive social impacts. These impacts have not been quantified and included in the economic analysis, but will be followed through performance indicators. The following table s m k e s the results o f the economic evaluation.

For the coastal infrastructure component, a specific methodology for the evaluation o f the CIM plans has been developed under IAM-1. The specific investments under this component are d e t e d e d by the communities and are thus not known in advance. However, each investment under this component will be subject to an economic assessment, based o n the methodology defmed under the previous project.

Summary of Economic Evaluation

Component cost ERR NPV

Description WST(m) (%I WST(m)

2. Financial (see Annex 4 and Annex 5): NPV=US$ million; FRR = % (see A m e x 4)

3. Roads and Other

Air T r ~ ~ s ~ o r ~ ~ ~ ~ ~ ~ ~ ~ 0 ~ : The w e n t financial performance o f the S A 4 i s close to the forecasts made in the IAM-1 Project Appraisal Document, The operating loss i s s t i l l about WST 1.2 mi l l ion annually but declining gradually and will improve when the current round o f tariff increases i s implemented. Servicing o f the W- 1 credit on-lent from MOF is a major cost to their operation. Updated forecasts are in Annex 5.

at 12% 27.7 45 257

Land ~ r ~ ~ ~ ~ ~ r ~ ~ ~ ~ s ~ ~ ~ ~ r : Tfie current level o f G o v e m e n t expenditure on roads is WST 15.0 mill ion per year, compared with a long-term average annual need o f WST 25.1 mi l l ion (or WST 34.1 mill ion if a real 5 percent retum on equity i s included). Currently there i s no explicit road user charge for recovery o f road costs, but revenues from roads include WST 4.5 mi l l ion from €ked charges (vehicle registration and driver licensing) and WST 17 mill ion from a fuel excise. Thus current road expenditures are covered by these revenues, and an additional WST 6S mill ion is available for general purposes, If a fuel levy o f WST 0.25Liter i s added, the annual revenue for road purposes increases to WST 25.1 mi l l ion without reduction to other Government revenues $e., WST 6.5 mill ion is s t i l l available for general purposes), The WST 0.25iLiter fuel levy i s equivalent to 15 percent o f the retail price o f gasoline (WST I .69Liter) and is 60 percent o f the present excise m o u n t o f WST 0.41 ULiter,

Infrastructure 1. Apia Urban Network Vaitele Street West Widening, 7.0

Fiscal Impact:

The impact o f the Project on g o v e m e n t incomeireceipts is likely to be small, Identifiable taxes and duties including VAT are estimated at USs8.4 m over the 5-yr l i fe of the Project (less than one percent of annual revenues). Proposed new road user charges are likely to be neutral in impact because, depending on the scale adopted under the Project, they could raise up to an additional $3.5 miyear (WST 10.5 m) through increased motor vehicle registration fees and a fuel levy, but this would be applied to raise road expenditures to near the optimum required for preserving the road assets. Initially, i t was expected that about US$3 m o f this cost recovery could offset investment costs o f the Project. Counterpart funding requirements under the Project average WST 5.7 dyear, which i s about 2.9 percent o f current expenditures (1.7 percent of total expenditures). The annualized overall project costs are about I 3 percent o f development expenditures.

74 98.5 Vaitele Street Central Widening 5.2 1 31 Fugalei St Widening 4 s 41 Minor Traffic Management Measures 1.5

2. Rural Roads: Fagaloa Seal road from Le Mafa Pass to Taleafaga 1.5 39 3aY 3. West Coast Road Periodic Maintenance With Spot 7*0 57

Improvements

15.2 13.5 4.5 2.0

124.0

3. Technical: Studies o f the technical requirements and options, existing conditions and forecast demands were conducted during the first Phase L4M- 1 and during preparation o f the second Phase.

Roads. The primary basis for selection o f a road program was the medium-term national Road Sector Plan, prepared in 2002 and endorsed by G o v e m e n t in August 2003, which was supported by the newly introduced infrastructure asset management system, The resulting 1 0-year investment plan identified priority investment needs o f WST 40 mill ion and recommendations on:

A critical lack o f capacity and rising congestion in the Apia urban network, and the need for improving both the functionality o f the network and the traffic capacity o f key arkrial routes and bridges;

Improved capacity and safety in the western corridor between Apia and the Faleolo international airport on Upolu, with options o f either improving the existing road or building an alternative route;

Upgrading and sealing o f unpaved roads for (i) access to remote villages and (ii) residential areas;

Curve improvements on the Cross-Island arterial road; and

Replacement or widening o f 10 bridges.

e

e

e

These priorities were analyzed in detail through three studies which evaluated the feasibility and developed the specific technical scope and standards proposed for implementation under the Project (see Annexes 4 and 14). The technical standards and methods applied for road geometty, pavement design, structural design and safety design were based on applicable Australian and N e w Zealand standards, and selected on the basis o f economic feasibility.

r n f r ~ ~ t ~ c t ~ r ~ Risk ~ j t j g ~ t ~ o ~ ~ Guidelines on technical investigation and design for a variety o f intervention options to mitigate natural h m d risks were developed under IAM- 1 + Use o f these guidelines i s required in the preparation of structural protection in coastal OK flooding areas under the Project to ensure (i> the selection o f the most appropriate form o f intervention, and (ii> adequate performance and life. Some existing seawall structures are showing significant deterioration, thus application o f the technical design guidelines should be made mandatory for all protective structures in the coastal and river zones, not only those financed under the Project, and be required through planning and EIA consents.

4. Institutional: Samoa has performed well in managing previous projects and has adequate capacity for implementing the Project.

4.1 Executing agencies:

MOF, MI, and MNRE are the executing agencies under this Project, The MOF is fully familiar with project implementation procedures and World Bank requirements, and is planning to upgrade its fmancid management system. The newly merged and restructured MWTI has generally adequate capacity for implementation but is currently limited by significant staf l shortages in road asset management, contract administration, and transport a~st rat ion--supplementa~ staffing support will be needed from some source as previous bilateral grant sources are currently not available, The I"RE has also recently been merged into a larger unit with expansion o f its functions, including disaster management, natural resource managemen4 and the new Planning and Urban Management Agency ~ ~ A ) - - ~ n c t i o n a l and structural reforms were begun under W- 1 and will continue under M - 2 * Governance i s generally sound in al l these agencies.

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4.2 Project management:

Project management will be carried out by the IPSC, PMU, and Project Component Manager as set forth under Part C.4 oftf i is PAD, The project management smcture performed well under IAM-1 and includes minor improvements proposed for L4M-2 (as described in Annex 2). While the staffing o f the core project management team is through fixed term contract, institutional capacity is being developed within the implementing agencies though the strongly participatory and matrix team approach that has been developed under the Program, the additional training provided, and the operation o f the project team within the implementing agencies.

4.3 Procurement issues:

The processes are generally sound, and experience with applying the Bank's guidelines over the past decade has been positive. Recently, the Government has begun the development o f national procurement documents and guidelines, in conjunction with ongoing legal and public service reform and experience €rom past foreign-assisted projects. A CPAR i s under preparation, Agreement and clearance of the standard documents for NCB works and for local consultant services which will apply to the project will be a condition for effectiveness. Governance risks are generally low,

Six packages o f c iv i l works will be procured under ICB procedures - 5 in two slice and package bids, plus one. As the works will be concentrated contiguously on the main arterial roads, the aim i s to optimize the management of trafXc delays and to stimulate strong competition for works prices. Wnder IAM- I, local consultant services were procured in a large number o f individual packages as part o f the transition from public to private service del ivev - under fAM-2, these would be consolidated to reduce the high administrative overheads and delays that were involved.

4.4 Financial management issues:

An assessment o f o f the financial management system was carried out and concluded that the project will meet "m Bank financial management requirements. The existing Project Financial Management System (PFMS) and accounting system per€ormed generally well in IAM- 1. The PMU complied with the audit covenant consistently and the audit reports were unqualified. The banking arrangement i s adequate, with the Special Account held at the Central Bank, where IDA funds are deposited. There were not major problem in the flow o f funds from IDA to the find beneficiaries, For IAM-2, the software will be upgraded to achieve full functionality for reporting and h c i a l monitoring. The system will be capable o f report-based disbursement, but the implementation will first continue with transaction-based reporting and move to report-based later when the MOF i s ready to apply this to other IDA-assisted projects. The accounting systems and software differ in each Implementing Agency (M), however, the present Project financial management arrangements cope with this and are considered satisfactory, so they would continue under L4M-2 with a few minor adjustments. The details on financial management assessment is in Annex 6 and the assessment report i s in the Project file.

5. Environmental: 5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (including consultation and disclosure) and the significant issues and their treatment emerging from this analysis,

There are not expected to be any environmental issues beyond those addressed though standard operating procedures which are in place (Codes o f Environmental Practice (COEP), for implementation o f c iv i l works, and Environmental Impact Assessment procedures (EIA)). All road, bridge, pedestrian facility, and coastal risk reduction subprojects would be subject to EL4 screening, and subsequent evaluations where necessary.

Environmenal Category: 3 (Partial Assessment)

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5.2 What are the main features o f the EMP and are they adequate?

The initial Environmental Assessment (EA) was submitted to the InfoShop and disclosed in-country (26 February, 2003) and the final EA was submitted on August 2003, The EA, inter alia, assessed the existing environmental management m e w o r k (developed under Phase 1) as generally adequate for use in Phase 2, Suggestions were made for strengthening existing consultative, legal, and regulatory procedures to meet the requirements o f W - 2 . Institutional responsibility for developing and handling the environmental management framework will rest with MNRE. As noted, al l road, bridge, pedestrian facilities, and coastal risk reduction subprojects will be subject to EIA screening and evaluations where necessary. Sub-projects considered to have no, or low, adverse environmental impacts c o d d be waived €rom the €urther requirements o f the draft EL4 Regulations. Ordinarily the COEP will be considered adequate to cover the environmental management requirements on such projects. Frojects for which there are potential significant adverse environmental impacts will be subject to a full EIA process. For each sub-project, proponents (such as MWTI) will be responsible for liaison with and advising MNRE, preparing all environmental assessment submission documents, developing mitigation measures and alternatives, and ensuring affected c o m ~ t i e s are consulted and kept ini%rmed. The proponents will also be responsible for implementing the sub-projects within the scope approved under the environmental assessment, implementing the works within the provisions o f the COEP, and meeting any specific conditions o f EA approval. Adoption o f an environmental compliance monitoring system i s required by June 2004.

5.3 For Category A and 3 projects, timeline and status o f EA

5.4 H o w have stakeholders been consulted at the stage o f (a) environmental screening and (b) draft EA report on the environmental impacts and proposed environment management plan? Describe mechanisms o f consultation that were used and which groups were consulted?

The EA has been based largely on a review o f the effectiveness o f the EL4 provisions put in place for Phase 1 o f the project, and those provisions have been judged to be generally satisfactory. K e y stakeholders were consulted in-country with regard to the rekement o f the EA and development o f the Environment Management Plan (EMP). The draft EIA Regulations (which are yet to be passed by Parliament) require proponents to consult with and keep informed my local comUnit ies affected by the sub-projects, The draft EIA Regulations emphasize early communication between the proponent and ~vTNRE to ensure that procedures are streamlined. The Regulations also require IviNRE to prepare and publish guidelines on EL4 procedures to proponents.

Date ofreceipt o f final draft: 25 March 2003.

5.5 What mechanisms have been established to monitor and evaluate the impact o f the project on the environment^ D o the indicators reflect the objectives and results o f the EMP?

Compliance monitoring will be done o f sub-projects to ensure that the scope o f works does not differ from the scope approved under the draft EL4 Regulations, compliance with any COEP provisions, or conditions o f EIA approval, In some instances appropriate baseline environmental information may need to be gathered and submitted with the EM, which should be identified in the subproject implementation plan - th is w o d d permit evaluation o f the change o f impacts over time. In addition, critical areas such as the coastal h m d zones will be monitored to identify the long-term trends o f natural processes and quantify changes from the baseline conditions.

6. Social: 6.1 Summarize key social issues relevant to the project objectives, and specify the project's social development outcomes,

The project i s expected to entail modest land acquisition, but no resettlement. A Land Acquisition and

Resettlement Framework (LARF) has been developed and disclosed in-country and to the Infoshop (February 27,2003). The Framework outlines procedures which meet both Samoan traditionaUlegal practices and Bank procedures (as set out in OP 4.12) which will be utilized for any subproject involving land acquisition andor resettlement. The LARF includes an Entitlement Framework and Matrix which establishes clear entitlements for various classes o f Displaced Persons (DP) and various kinds o f assets. A basic Land Acquisition and Resettlement Action Plan was prepared for the Vaitele Street widening works, identifying 95 affected land-holders and land acquisition with an estimated value o f WST 4 million, which was endorsed by Government on 21 November 2003 and disclosed on 28 November 2003.

The Social Assessment (SA) conducted for Phase 1 o f the Program defmed key stakeholders, involvement o f stakeholders in project preparation and implementation, and a community consultation framework for preparation and implementation. A new SA was carried out (see Annex 12 and project files), with the following findings:

Improvements to the consistency and inclusiveness o f the consultation process during implementation;

Identification o f emerging issues that wi l l impact on the sustainability o f the project (e.g., compensation).

Improved involvement o f stakeholders (especially intended beneficiaries) and the inclusion o f potentially-excluded groups in decision-making and project benefits,

Lessons fiom the restructuring o f the Ministry o f Works include: better strategies required for retaining core competencies, adjustment o f the formula for redundancy compensation required, the importance o f ski l ls and small business training for those who desire it, and additional support systems needed for those taking redundancy.

A baseline social assessment, stakeholder analysis and design o f a community consultation framework for L4M-2 were produced. These showed overwhelming support for improved access to remote areas, but also a number o f issues to be addressed in order to maximize returns fiom the project for the intended beneficiaries.

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6.2 Participatory Approach: How are key stakeholders participating in the project?

Key stakeholders h v e been involved in project design and preparation at all stages. As part o f the preparation o f the LAW, workshops were held with representatives o f local (village level) women’s committees (~~~~~~~ T ~ ~ a ~ a ~ ) , P~~~~~~ Councils (councils o f mayors o f local communities) and with key government agencies involved in preparation and implementation. The EA adopted a similar approach for participation o f key stakeholders, The SA was also participatory, with interviews o f all main stakeholders and particular focus on groups with women, youth and vulnerable populations in areas which will be impacted by the remote access component.

6.3 How does the project involve consultations or collaboration with N G O s or other civil society organizations?

A variety of community-based organizations have been involved in project preparation and will be involved on a continuing basis during project implementation. As noted, ~~~~~~~ ~~~~~~~ (village level Women’s Committees) have provided important input to the development o f the LARF, and will continue to be involved in work on improvement in the Land Titling and Registration process. ~~~e~~~ (Councils o f Mayors) have likewise been involved, and will continue to be. Good dialogue has been established with the key national level institutional stakeholders, and this will also be continued during implementation. Various groups at the village level, including women, youth and vulnerable populations, have been consulted as a

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part of the social assessment, especially in areas which will be affected by the remote access component o f the project.

I t i s anticipated that local groups, possibly civil society organizations, will be involved in ongoing monitoring and evaluation of project activities, particularly with regard to the impacts on remote access villages, Regular visits will be made to the villages involved in the remote access component and views of key local stakeholders will be solicited as an ongoing part o f monitoring, evaluation and adjustment o f project implementation.

5.4 What institutional arrangements have been provided to ensure the project achieves its social development outcomes?

The key counterpart agency, MNflE, i s fully committed to effectively hplementing the LARF and EMP. They have been hl ly involved in the formulation and approval o f both frameworks and are committed to their participatory aspects. Further specific monitoring strategies will be developed as a part o f the SA process.

6.5 How will the project monitor performance in terms o f social development outcomes?

Performance indicators for social development will be fully developed as a part o f the SA process.

7. Safeguard Policies:

7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.

Environmental Assessment: Initial EA completed and disclosed in-country and to Infoshop (February 26,2003).

Involm!xy Resettlement: A Land Acquisition and Resettlement Framework (LAW] was developed and disclosed in-country and to Infoshop (February 27,2003) and updated on November 20,2003, A Land Acquisition and Resettlement Action Plan &ARAF) was prepared by MWTI for the road widening works along Vaitele Street to be implemented mder subcomponent B.4 o f the Project. Based on a detailed survey2 conducted in accordance with the LAW and the preliminary design o f the works, the report indicates no resettlement, land acquisition o f about 2.1 ha from 95 land holders, and a schedule o f compensation for land, structures and amenities which totals approximately WST 4 million. The LARAP, endorsed by MNRE on November 2 I , 2003, will be implemented in full prior to c o ~ e n c e m e n t o f the works, in accordance with the LAW and OF 4.12.

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F. Sustainability and Risks 1. Sustainability:

The sustainability o f the new slim arrangements for managing road and transport infrastructure (the current MWTI) after the major downsizing and reform in 2002 will be crucially dependent on successful staffing, and o n advisory support in the transition stages.

2. Critical R i s k s (reflecting the failure o f Critical assumptions found in the fourth column o f Annex 1): Risk

From Outputs to Objective Aviation-related revenues or restructuring measures are restricted, or additional expenditure obligations are imposed on SAA.

Budget allocation for road and bridge preservation inadequate

Inadequate measures to apply and enforce risk management plans, environmental conservation, and controls on land use and behaviors

Establishment o f Land Transport Authority inadequate to address issues o f staffing and operation

Road user charges not implemented or structured to achieve substantial cost recovery From Components to Outputs Counterpart funding inadequate

Procurement procedures not applied transparently or competitively

Procurement delays impact implementation schedule Legislation for major improvements to land registration and titling not authorized

Implementation o f land acquisition delayed. Overall Risk Rating

I Risk Rating - H (High Risk), S (Substantial Riz

Risk Rating

M

M

M

M

M

N

N

M

M

S

M

I, M (Modest Risk), b

Risk Mitiaation Measure

S A A Business plan and monitoring through Project

Annual program and budget requirements to be based on S A M s output. Road user cost recovery policy being advanced. Issue o f EIA regulations, and strengthening status o f C I M plans through link to regulations on planning and urban management.

Monitor implementation o f establishment o f LTA and road cost recovery under "roadmap" adopted by Cabinet

Timebound requirements for an action plan and policy implementation plan on land transport sector reform.

Annual review and monitoring

Regular review through IDA supervision

Regular reporting and monitoring through procurement schedule Technical improvements to information management for land registration and titling are s t i l l beneficial. Execution o f works contract contingent upon completion o f LARAP, and budget plan. Maintain quality o f project management by Borrower and o f supervision by IDA Negligible or Low Risk)

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3. Possible Controversial Aspects:

Introduction of fuel levy for road cost recovery. Air transport - strong measures for improving financial sustainability, including minor airport closures,

G. Main CreditConditions 1. Effectiveness Conditions

(a)

(13)

(c)

(d>

(e)

( f )

(8)

the Memorandum of Agreement has been entered into between the Borrower and the Samoa Airport Authority.

the Program Steering Committee has been established;

the Project Management Unit has been established;

the Project component managers have been retained;

the fmancial management system has been upgraded;

the Borrower has adopted bidding documents for works and consultants' services; and

the Borrower has adopted the Operational Manual for administering grants,

2. Other [classify according to covenant types used in the Legal Agreements,]

(a) The BOrroWer shall enter into a Memorandum o f Agreement with SAA, acceptable to the Association, for the carrying out o f Component A o f the Project, under t e m and conditions which shall have been approved by the Association, including that S A A shall: (i) maintain operational standards on safety, c o ~ ~ c a t i o n s and services at Faleolo International Airport and Maota Airport in accordance with ICAO and other international standards on safety, comm~ications and services, including replacement or upgrading, in a timely manner, o f instrumtnted landing system at Faleolo International Airport and any other selected equipment necessary for the maintenance o f said standards; (ii) manage airport infrastructure assets at Faleolo International Airport and Maota Airport, provide budget, and carry out selected works, which works shall be selected based on an airport asset management system to be established under the Project, all aimed at achieving standards which meet performance requirements, satisfactory to the Association, for passenger, freight and aircraft; (iii) incorporate in its corporate strategy and business plans a plan for achieving full cost recovery o f operating expenditures and investments supporting the requirements o f (i) and (ii) above witfiin a h e f k m e to be agreed with the Borrower; and (iv) adopt, by October 3 1,2004, a time bound action plan for rationalization o f airport infrastructure, including consolidation o f operations at the Faleolo International Airport and Maota Airport on Upolu and Savai'I, respectively, and the closure o f air traffic operations at the Fagalii Airport, the disposition o f the Fagalii land, and the facilitation of the associated changes in travel and operation.

Froiect Management

(b) Tne Borrower shall establish and, thereafter, maintain, until completion o f the Project, a Program Steering Committee established within the Ministry o f Finance, chaired by the Chief Executive Officer of the Ministry of Finance and comprising representatives o f the MI, MNRE, Ministry for Women, Community, and Social Development, and Public Service Comssion, and community, including two deputy chairpersons acceptable to the Association; with t e m s o f reference satisfactory to the Association and assigned with such funds, responsibilities and resources as shall be required to enable it to provide

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overall guidance in the carrying out of the Project, review the progress o f Project implementation, assist in achieving the Project objectives and complying with the terms and conditions o f the Credit Agreement.

(c> within MOF, headed by a Project manager/proc~ement specialist, provided with sufficient resources and such powers, responsibilities, organization and funding as shall be required to enable it to carry out the day-to-day management, monitoring and coordination o f procurement, accounting, disbursement, financial management and other Project related activities, and reporting to the Program Steering Committee, and staffed with competent personnel in adequate numbers, including a Roject a c c o u n ~ ~ f i n a n c i ~ management specialist, a social assessment specialist, and an a ~ s ~ a t i v e / ~ o ~ a t i o ~ dissemination assistant, all under t e m o f reference acceptable to the Association.

(d) The Borrower shall retain and, thereafter, maintain, until completion o f the Project one Project component manager within each MI and MNRE, for purposes o f managing, monitoring and coordinating procurement, accounting, disbursement, €mancial management and other activities related to the carrying out o f Components E and D o f the Project, and Component C o f the Project, respectively, all with qualifications and experience and terms o f reference satisfactory to the Association,

(e) accounting software, acceptable to the Association, in the P W , and thereafter training the respective staf f in the use o f said software; and (ii> preparing, adopting, and thereafter implementing, a financial management manual for the Project, acceptable to the Association, setting forth policies and detailed procedures for internal control, flow o f funds, accounting and auditing, and maintenance of records.

( f ) for the Project, acceptable to the Association; and (ii> not abrogate, amend, assign, repeal, suspend or waive any provisions o f the fmancial management manual. without the prior agreement o f the Association.

(g) The 3orrower shall, by June 30,2004, appoint an independent auditor acceptable to the Association, under terms o f reference satisfactory to the Association, to carry out annual audits o f Project accounts and financial statements under the Project.

The Borrower shall establish and, thereafter, maintain, until completion o f the Project, the PMU

The 3orrower shall upgrade its f i c i a l management system for the Project by: (i> installing an

The Borrower shall: (i) maintain until completion o f the Project, a financial management system

Project Implementation

@> to the Association, bidding documents for works and comltmts' services to be procured under Components 3, C, D and E o f the Project and, thereafter, finalize and adopt said bidding documents.

(i) The 3orrower shall cause S A 4 to: (i> maintain its corporate business plan; and (ii> by November 30 o f each calendar year, commencing November 30,2004, until completion o f the Project, review its financial performance, operation, and infrastructure rationalization, including minor airports, and prepare and furnish to the Association, for its review and comments a report integrating the results o f said review, and, thereafter, finalize said report taking into consideration the comments and recommendations o f the Association, and implement the r e c o m m e n ~ t i o ~ o f said report.

0) accordance with criteria satisfactory to the Association, and, thereafter, implement the respective Component 3 o f the Project in a manner and substance satis€actory to the Association.

($1 the Association, as such manual may be amended from time to time with the prior agreement o f the Association, in the implementation o f Component C.4 o f the Project, which Operational Manu1 shall provide, inter alia, for: (A> procedure and criteria for appraisal and selection o f Beneficiaries; @) appraisal

The Borrower shall prepare and furnish to the Association, in a manner and substance satisfactory

For purposes o f c a m g out Component 3 of the Project, the Borrower shall select Project sites in

The Borrower shall: (i> prepare, adopt and thereafter apply the Operational Manual, satisfactory to

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criteria for design and screening for the carrying out o f non-structural measures to mitigate risks from natural hazards; (C) terms and conditions governing the Grant Agreements; @) procurement procedures for goods, works and services to be financed out of the proceeds o f the Grant; (E) process for monitoring implementation; and (F) financial management and disbursement ~angements; and (ii) not abrogate, amend, assign, repeal, suspend or waive any o f the provisions o f the Operational Manual and the Grant Agreement without the prior agreement o f the Association.

(1) For purposes of the carrying out of Component (2.4 o f the F'roject, the Borrower shall enter into a Grant Agreement with each Beneficiary on tenns and conditions satisfactory to the Association,

(m) The Borrower shall: (i) carry out the Project in accordance with the provisions o f the Environmental Policy Framework, the Land Acquisition and Resettlement Framework, and the Resettlement Action Plan, as the case may be; and (ii) not abrogate, amend, assign, repeal, suspend or waive the provisions o f the Environmental Policy Framework, the Land Acquisition and Resettlement Framework, and the Resettlement Action Plan without the prior agreement o f the Association,

(n) The Borrower shall, by June 30,2004, establish an environmental compliance monitoring system within MNFSi, satisfactory to the Association and, thereafter, operate said system.

(0) The 3orrower shall, by June 30,2004: (i) prepare, in a manner and substance satisfactory to the Association, a he-bound action plan to develop, adopt and implement a transport sector reform, including r e c o ~ e n ~ t i ~ n s on cost recovery and sustainable financing for the road subsector, the establishment o f the Land Transport Authority on terms and conditions satisfactory to the Association, and a consolidation o f reforms in MWTI; (ii) adopt and, thereafter, carry out such action plan, in a manner satisfactory to the Association; and (iii) not abrogate, amend, assign, repeal, suspend or waive the provisions o f the he-bound action plan, without the prior agreement o f the Association.

(p)- The 3orrower shall, though MNRE: (i) by October 3 I, 2004, prepare and furnish to the Association, for its review and comments, draR regulations on environmental impact assessment and environmental management; (ii) January 3 1 , 2005, adopt the regulations referred to in subparagraph (i) above, and, thereafter, retain relevant s taf f in adequate numbers shall be required to enable it to implement said regulations; (5) by June 30,2005, adopt regulations to enforce the application o f requirements o f the Coastal In€ras!mcture Management Plans which have or will be adopted by the Borrower, through its Ministry o f Natural Resources and Environment and participating district communities, in the carrying out o f assessments o f compliance and clearance for planning o f infrastructure development, land use and natural resource use in coastal zones; and (iv) by March 3 1 o f each calendar year, commencing March 3 1,2005, monitor natural hazards zones and changes in baseline conditions, and, thereafter publish said information at least every three ( 3 ) years.

(s) The Borrower shall, through MWTI: (i) enforce the requirements o f the Interim Code o f Environmental Practice dated January 3 1,2002, adopted by the Borrower for purposes o f ensuring that sound environmental practices are adopted in all publ icly-~anced civil works; (ii) by January 3 1 , 2005, adopt the Code o f Enironmental fractice for civil works, satisfactory to the Association, and thereafter enforce said code,

(r) The Borrower shall, by June 30,2004, authorhe the implementing agencies under this Froject to approve changes to contracts for civil works within the limits specified within the contract, and for contracts for consultants' services and goods within a limit o f fifteen percent (1 5 percent) above the original price, notwitfistanding any law or regulation requirement in this regard in effect at the time o f issuance o f said authorization.

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Monitoring and Reports

(s) The Borrower shall maintain policies and procedures adequate to enable i t to monitor and evaluate on an ongoing basis, in accordance with the indicators agreed upon with the Association, the carrying out o f the Project and the achievement o f the objectives thereof; and carry out a mid-tern review by 3 1 March 2006, and review said mid-term review with the Association by 30 June 2006,

(t) March 2005, until completion of the Project, prepare, in accordance with the Samoa Asset Management System adopted by the Borrower on 3 October 2002, for the purpose o f emuring efficient management o f infrastructure assets, as updated from time to time, and thereafter implement, in a manner and substance satisfactory to the Association, a program o f maintenance and rehabilitation o f primary roads, bridges and coastal infrastructure to preserve the perfomance o f road network assets within performance targets to be established and agreed with the Association by 3 1 March 2005; and (ii) through MOF, propose that budgetary funds are allocated as shall be required to ensure that the MWTI i s able to prepare and implement the program referred to in subparagraph (i) above.

The Borrower shall: (i) through MWTI, by 3 1 March o f each calendar year, commencing 3 1

H. Readiness for Implementation €%I 1. a) The engineering design documents for the first year's activities are complete and ready for the start

0 1. b) Not applicable. o f project implementation.

2, The procurement documents for the first year's activities are complete and ready for the start o f project implementation.

qUality. €%I 3, The Project Implementation Plan has been appraised and found to be realistic and o f satisfactory

CI] 4. The following items are lacking and are discussed under loan conditions (Section G):

1. Compliance with Bank Policies 1. This project complies with all applicable 3ank policies.

0 2. The following exceptions to Bank policies are recommended for approval. The project complies with all other applicable Bank policies.

h/ 7 4 t

4 / A L

William I). 0, Paterson Jitendra N. Bajpai Xan Zhu Team Leader Sector ManagerlDirector Country ManagedDirector

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Annex I : Project Design Summary SAMOA: Second Infrastructure Asset Management Project

Sector-related CAS Goal: [mprove the quality and justainability o f country's nfrastructure

'rogram Purpose: Cey infrastructure assets are sustainable and managed :ffectively by a partnership o f stakeholders.

'roject Development 3bjective:

Peflected in two development ibjectives:

Key infrastructure assets perform satisfactorily with sustainable resilience to natural risks.

e Oversight and management of infrastructure, natural resources and national emergency are effective and efficient, with participation o f private sector and stakeholders.

Key Performance Data Collection Strategy Indicators

Sector Indicators: I Sector1 country reports:

. Rising perfonnance standards o f transport infrastructure

- Risk mitigation program active and expanding annually and nationally

Treasury - Summary o f Departmental performance indicator reports

Public sector reform review reports

End-of-Program Indicators: 1 Program reports: Cost recovery levels for each

ubsector Service quality ratings €or

.oads, and for environmental nanagement I Coverage o f r isk nanagement plans and :ompliance

- Entity annual reports for SAA, LTA and MNRE

3utcome I Impact ndicators:

1 Project reports:

IAM-2 End-of-Project Indicators

e MWTI and MNRE are established, fully staffed and functioning.

e Al l primary road, aviation, and public coastal infrastructure assets are under quantitative asset management procedures

e Air transport, roads, and coastal infrastructure investments conform with appraisal and sectoral plan requirements, for at least 80% of national investments.

e Protection of coastal communities i s provided through a Coastal Infrastructure Management Strategy (CIMS),adopted by at least 80% o f Districts,

Cost recovery for public infiastructure assets reaches agreed targets,

e Annual asset management plans from MWTI and SAA.

e Project feasibility reports and MWTI program budget report.

e PMRs and Min. Internal Affairs records.

e Annual audited accounts from SAA and MWTI.

e Authorization of CIM Plan.

e NewMWTIannual corporate report.

e Coastal asset management database.

e Periodic reviews o f vehicle operating costs, surveys o f road conditions, traffic and accidents.

Critical Assumptions from Goal to Bank Mission) mproved and reliable nfrastructure promotes :conomic growth and poverty illeviation

from Purpose to Goal)

from Objective to Purpose)

e Reduced direct provision by government will achieve better use of public funds, and promote sustainable development o f infrastructure assets.

e Adequate competition and innovation i s maintained under thin market conditions, with controls over risk of private sector monopolistic practices.

e Good govemance environment maintained.

e Incidence and impacts of climate change and other natural hazards are within expected range.

e Economy attracts and retain5 sufficient professional staff and sk i l l s to sustain sector management.

e No major external economic

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Component:

outputs A. Aviation infiastructure financially sustainable and meets service and safety requirements.

3, The road system has improved capacity, safety and resilience, and access for remote communities and

The share of infrastructure works and services provided through the private sector i s at least 80 percent.

Iutput Indicators:

e ICAO operational standards maintained

Percentage increase in pas- sengers serviced, in line with economic growth,

C. Key natural resources and infrastructure assets are managed sustainably with respect to environment, social traditions, and risks.

Project reports:

e Safety and Performance Audits of Faleolo Airport.

Independent Safety and Operations Audit to ICAO standards; SAA records.

0 Length arterial roads with adequate capacity

Number o f bridges rehabilitated.

Number o f accidents per Year*

MNRE fully staffed and functional.

Coastal Asset Management database fully populated and functionally integrated with SAMs.

e Computerized land

e Samoa Asset Management System ( S A M S ) outputs.

shock.

from Outputs to Objective)

Outputs to Objectives)

No major disruption of airline industry or travel in region.

e Unfunded obligations are not imposed on S A A or Airline.

e Road and bridge preservation budget and program are based on current SAMs output and data.

development program i s fully appraised and based on the approved road sector plan.

Road Safety Action Plan i s fully adopted and implemented.

e Majority of the road

Leaders and politicians of coastal Districts endorse C I M Plans and environmental regulations.

0 Ready access to geographic information will improve awareness o f and response to development risks.

e Geo-referenced land data

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I

D. Institutional Reforms complete and operational for land transport.

I

E. IAM Program objectives achieved on schedule and within budget

Project Components I Sub-components: A. Airport Infrastructure A5. Air traffic control system.

B. Road and Other Infrastructure

3 1. Bridge replacement: - about 4 bridges

32. Road rehabilitation: - West Coast Road resurfacing & safety improvements (32 km).

B3. Road safety, pedestrian and traffic facilities: - 3,000 m footpaths, and various traffic calming measures

B4, Road Network Development: - 4.1 km road widening

B5. Remote access roads: - 3.9 km road upgrading.

BS. Infrastructure Risk Mitigation: - 1,000 m protection schemes

registration and titling system established.

e CIM Plans endorsed by coastal communities in at least 80% percent o f Districts (34 o f 43).

e LTA established by 2005 e Road user charges begun

July 2004

e Percent progress and slippage against implementation schedule

o f hoject a Actual costrestimated cost

Futs: (budget for each :omponent) i1.06 m i1.06 m (goods, SAA)

;15.05 m

i 1 I 10 m (works and services

;2.%3 m (works and services)

11.26 m (works and services)

'8.93 m (works and services)

10.97 m (works and services)

10.96 m (works and services)

vfvVT1 road sector reform oadmap o f Nov. 2003

2uarterly progress reports 2uarterly financial reports

'reject reports:

juarterly progress reports.

will support broader use o f GIs-based asset management systems and improve property boundary data.

8 Transport authorities are empowered and authorized for cost recovery,

e Environmental legislation and regulations are approved.

e Outputs and processes produced through the IAMP wil l be sustained and built on by Government after closc o f the Project.

from Components to futputs) AA obtains financing for istmmented Landing System

idequate counterpart budget

e Adequate budget provided annually for preservation program. Improved procurement

procedures applied transparently, with full competition

.and compensation fil ly paid In time

e Selection criteria reflect highest poverty impact

and further program C. Sustainable Management of Infrastructure, Natural Resources and Risks

C4. Environment, Resource and Risk Management:

Environmental mgt e CIM Plans in 28 Districts 8 Resource management 8 Emergency management

C5. Land Administration and Survey

CS. Risk Adaptation Measures

L

I). Institutional Capacity Building

D5. Transport and Infrastructure strengthening:

MWTI functions e Land Transport Authority 8 Road cost recovery 8 S A A advisory support e M W T I s u ~ p o ~

D7. Training

E. Project management

E4. Management o f IAM-2: 8 PMU 8 P C M f o r M W ~ e PCM for MNRE

E.5 Project Audit

$2.23 m

j1.50 m (goods and services)

i0.53 m (goods and services)

$0.10 m (grants)

61.42 m

; 1.3 1 m (services)

60.1 1 m (training, SOE)

61.83 m

6 1.79 m (services)

$3.04 m (services)

a Legislative actions and political endorsement are timely

8 Adequate coordination between DLSE, MWTI, and village councils.

8 CIM strategy and Plans have adequate status to ensure implementation o f risk mitigation measures

e MNRE has upgraded computer technology and customer service.

substantially completed before next major emergency event

e Improvements

8 MWTI adequately staffed; staff trained and empowered. Functional transfer o f transport functions from police to M W T I satisfactorily completed.

e Appropriate and timely actions on Statutory Authority status for roads & road transport.

e Steering Ctte meets regularly

8 Project mgt decisions authorized by IA ' s

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Annex 2: Detailed Project Description SAMQk Second Infrastructure Asset Management Project

The Program objective to be achieved by the end o f th is Project i s that ‘The transport and coastal infi-astructure assets of Samoa will become economically, environmentally and socially sustainable, managed by an effective partnership of all stakeholders”.

The first Phase, with a focus on “Meeting Vital f ior i t ies and Strengthening Management”, invested in international airport infrasixucture crucial to economic resilience and strengthened the business management o f aviation; invested in s m l l programs o f road bridge upgrading and pedestrian facilities; shifted the public sector role in roads and coastal infrastructure to one o f asset management and service regulation and increased the private sector delivery o f works and services; developed road asset management, transport and safety administration systems to support that role; assessed the risks o f coastal zones to natural hazards and developed a national strategy and District-level plans for mitigating these risks and improving the resilience o f communities in a sustainable way, developed a valuable resource o f geographic and land information accessible to all, and catalyzed development o f information and c o ~ ~ ~ a t i o ~ technology and policy.

Th is second and concluding Phase (LAh.I-2), with a focus on “Investing for Sustainable Growth and Resilience”, would fmance the support needed to enhance the economic, environmental and social sustainability of transport and coastal idfastructure assets, and to manage those assets, natural resources and disaster r isks through an effective partnership with the private sector stakeholders. The physical investment includes road widening, bridge replacement, upgrading access to remote areas, safety and coastal protection works. Institutional strengthening will continue reforms o f air and land transport with the delivery o f infrastructure services tfirough the private sector. I t wi l l also develop Sustainable management o f natura3 resources and the environment and empower comuni t ies and organizations to reduce their r isks from natural. disasters.

The key elements include:

e Priority capacity and safety improvements to road infrastructure that were identified by the 2003 Road Sector Plan (7 1 percent);

Strengthening o f environment, r isk and natural resource management, including completion o f the r isk mitigation plans for coastal Districts, strengthening the national approach to emergency management for natural and m - m a d e risks, and improvements to land administration (1 1 percent);

Priority coastal protection works and non-structural measures for mitigation o f disaster risks (1 1 percent); and

Completing the current phase o f institutional reform in transport and infrastnncture, with emphasis on land transport and cost recovery (7 percent).

e

e

M - 2 will be implemented over four and a half years ending in June 2008 with the Credit closing in December 2008. I t i s structured around five component outputs, using the same structure as the first Project for consistency in the overall Infrastructure Asset Management Program (ZAMP).

-31 -

Project component total costs in USD equivalent at negotiations, including contingencies but excluding VAGST; detailed costs including base costs can be found in Annex 3, Table 3.

By Component:

Project Component A Airport Infrastructure - US$1.06 million

OUTPUT A : All a~rport ~ n ~ a s ~ c t ~ r e assets are p e ~ o ~ i ~ ~ s a ~ s f a c ~ ~ r ~ ~ , ~ n ~ e r an asset m a ~ a ~ e m e ~ t system a ~ d ~ n a ~ c ~ a l ~ s ~ ~ a ~ n a ~ ~ e .

The performance of the Samoa Airport Authority (SAA) and o f i t s infrastructure assets at Faleolo Intemational Airport and the minor airports o f Fagdi’i, Maota and Asau will be monitored against a strategic plan to be agreed by June 2004, SAA will manage the existing assets under a rolling 3-year business plan and new asset management system installed under Component D, No major new investments are planned, and maintenance and minor improvements will be financed by the SAA. A new Insbmnented Landing System will be installed at Fdeolo under S A 4 financing (estimated cost USSl.0 m). The minor airport infixstructure will be rationalized in accordance with the 200 1 Minor Airports Study (MAS), including implementation o f a phased closure o f Fagali’i airport: on Upolu and review o f Asau airport on Savai’i, Under task D.6, specialist advisory services would support the installation o f an asset management system cowering all airport infiastructure, and an annual review of the agency performance.

Project Component 3: Road and Other Infrastructure - US$16,06 million

OUTPUT B : The road system has ~ m p r o ~ e ~ capacit)? safety and res~l~ence~ and access for remote c ~ m m ~ n ~ t ~ e s and Apia.

In Phase 2 this component supports investments in expanding capacity and extending the primary road network based on priorities identified under the Road Sector Plan, endorsed by Cabinet in August 2003, establishing an arterial road network to relieve rising congestion in Apia and lialr. with growth areas to the west, a small program o f improved road access to remote areas, and continuation o f the bridge upgrading, pedestrian facilities, road safety, and coastal risk reduction program.

B,1 Bridge W ~ ~ r ~ d ~ n g ($1~10 m base cos@: A sub-program comprising tvvo bridge replacements carried forward from W - 1 , plus others identified in the 2003 Road Sector Plan, is proposed, with specific subprojects being reviewed case by case against agreed criteria. Other priority bridge replacements have been included in the capacity improvements designated under section €34.

3 1.05 Fagali‘i Bridge: A small ford on a peri-urban collector road on Upolu i s to be replaced by culvert-type low-cost construction.

E 1.06 Falefa Bridge: A low traffic single lane bridge, 33 m length, replacing an old unsafe bridge providing the sole access to remote villages in north-eastem Upolu from the L e Mafa Pass road.

B 1.07 Bridge design services: Preparation o f engineering design and bidding documents for a l l bridges in the sub-program.

I3 1.08 Bridge supervision services: Supervision o f construction o f all bridges in the subprogram,

Other candidates for bridge replacement to be reviewed as a sub-program against similar criteria (eg, possibly including Mulivai, Sili, Talimatau, etc. bridges):

e

e

e

e

e

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B.2 R o a d R ~ ~ a ~ ~ ~ ~ t ~ t ~ o ~ ($2.83 m): The West Coast Road, which i s the existing main westem arterial on Upolu, the leading accident blackspot and vulnerable to erosion, will be resurfaced with localized safety improvements over the €ull length of 32 km, The treatment standard i s less than full rehabilitation because the 2003 feasibility study o f the western corridor showed preference for a Westem Mand Route (WR) to be built in the medium term of 5-20 years (see Annex 14). Special attention i s given to improving pedestrian safety, public transport zones, and traEc calming through the many communities that straddle the road. The works have been designed under IAM-1 by an international-local consultant team. Three packages totaling about $2.2 m will be procured under IC3 on a slice and package basis. Supervision will be by one local consultant firm. Implementation period Mar-04 to Jun-05.

e

a

a

a

e

e

32.01 West Coast Road rehabilitation design services (financed under VIM-1)

32.02 West Coast Road rehabilitation supervision services

32.03 West Coast Road rehabilitation works #1 - 11 km length

32,M West Coast Road rehabilitation works #2 - 11 km length

32-05 West Coast Road rehabilitation works #3 - 10 km length

32.06 Westem Mand Route Planning and Design services

B.3 Road safety and ~ e ~ e ~ ~ ~ a ~ ~ ~ ~ ~ ~ ~ ~ ~ e s ($1.26 m): A program of high priority measures to provide pedestrian access and improve road safety in Apia around school, market and hospital areas, and around village settlements, where accident rates are highest, was begun under L4M-1 and will be conhued under WM-2. The interventions combine footpaths with traf ic calming measures to create distinct safe environments for the interaction o f motorized and pedestrian traffic, and help to modify pattems o f driver and pedestrian behavior in urban and settlement areas, A new program o f minor works for traffic management to improve the efficiency and traffic capacity of the network and safety in the Apia urban area, identified by the Apia Road Network and Traffic Management Study, will be implemented. The works to be financed include:

e B3.05 Lelata Street Pedestrian Improvements: Footpaths and pedestrian-related works on Vailele, Vaimase and Toomatagi Streets, with total length of3,050 1in.m. Contract awarded under LAM-1 through NCB procedures, expected completion Mar-04.

33.06 Apia Traffic Management Measures: Measures to improve traffic flow and safety at a number of locations in Apia will be designed under the ongoing Apia road network capacity design services, procured under NC3, with expected completion by 2006. Supervision ($0.03 m) to be delivered under 34 services.

3.4 RoadNetwork~eveEo~rtzent ($8,93 m): The Project will € i c e a program o f priority road capacity improvements which establish an arterial road network in Apia to relieve rising congestion and to link with growth areas to the west (see Annex 14). The primary east-west artery comprises a southern bypass o f the central business district, along the existing Vaitele St, extending westwards towards the light industrial area in Vaitele and eventually eastwards to connect with the Apia port area, A secondary north-south artery would extend along Fugalei St through Vaimoso towards Faleata in the southwest. Core portions o f this program comprising about 4.5 km o f key arterial roads are to be constructed in time for the South Pacific Games (SPG) to be held in August 2007. The program comprises thee civ i l works packages, including road widening to four-lanes, bridge replacement, pedestrian and drainage works. Procurement will be in three packages under I C E procedures, two of which are on a slice and package basis, The feasibility studies and pre l imhay designs were prepared during Project preparation, and detailed engineering and supervision will be €hanced under the Froject. The packages include:

* 33 -

B4.01 Design and engineering services for road network capacity improvements: procurement by SSS as phase two of the feasibility study contract (ARNTMS);

B4,02 Road Network Development Supervision services

B4.03 Vaitele Road West civil works: comprising: (i) widening from 2 to 4 lanes from Vaimoso to Vailoa with 1.6 km length; (ii) construction o f two small 4-lane bridges at Vaimoso (over Gasegase Stream) (30 lin m) and Lepea (over Fdtdasoa River) (20 lin m); and (iii) improvements to the junction at Vaimoso tr&k circle, Some land acquisition i s required, estimated to be 2,023 sq. m. Procurement will be by ICB under slice and package with B4,03, €or a scheduled implementation period o f 24 mths from mid-2004 to mid-2006

B4,04 Vaitele Road Central civil works: comprising: (i) widening from 2 to 4 lanes from V a i n ” to Falealili Street (the cross-island road) on 1.8 km length and (ii) construction of4-lane bridge at TaufUsfialovea over Vailima Stream, with 15 lin m length. Clearance of encroachments in the 22 m wide right-of-way will be be required but no land acquisition. Procurement by ICB under slice and package with B4,02, and scheduled implementation period o f 24 mths from mid-2004 to mid-2006.

34.05 Fugalei Street civil works: comprising: (i) widening the existing road f iom 2- to 4-lanes from Vairnoso to Convent Street, on 1.2 km length; (ii) widening of Fugalei bridge with length o f 12 lin, m; and (iii) pedeskian footpaths and drainage improvements. Procurement by IC3 procedures, with scheduled implementation period of 18 months from mid-2005 to late 2005.

€34.06 Resettlement Compensation: Expenditures on land acquisition and compensation for structures and amenities relating to road works, determined in accordance with the Land Acquisition and Resettlement Action Plan prepared for Vaitele Street works and such other works as may require them. Financed by Borrower through MNRE,

3.5 Remote Access Roads ($0.97 m]: Civil works for road upgrading will be financed on one section o f Fagaloa Bay road, with 3-5 m wide sealed surface for 3.9 h length from L e Mafa Pass to Taleafaga, providing improved access to the hydroelectric power station and several coastal. settlements and reducing high maintenance costs associated with frequent instability repairs. Procurement will be by NCB procedures, with scheduled implementation o f 12 mths f iom early 2004 to early 2005.

a

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35.01 Fagaloa Bay Road design and supervision services

B5.02 Fagaloa Bay Road road upgrading works: procured though NCB in one package, for implementation Mar-04 to Mar-05,

3.6 I n f r ~ ~ ~ r ~ c t ~ r e Risk ~ ~ t i g a ~ o n ~ e ~ s ~ r e s ($0.96 m): The Project will fmnce a rolling program o f small works and interventions, identified from official Coastal Mastructure Management (C1IL.i) Plans endorsed by the participating communities and Government (MNRE;) and designed to reduce the risks from natural hazards. The program will implement three coastal protection schemes designed and procured under LAXII-I, and prepare and implement a small additional selection o f works being identified from the C M Plans for 2004105, Le.:

B6.0 1 IftM design services

a B6,02 ~ ~ ~ ~ p e r v ~ ~ ~ o ~ services

e 36.03 t in^'^ coasta~~rotec~ion works: construction o f coastal protection with length o f about 3,000 lin. m. Procurement through NCB and implementation in 2004,

- 3 4 -

e 36.04 ~ ~ ~ f o ~ o - u ~ a and ~ a ~ o n o - u f a c o a s ~ a ~ work: construction o f coastal protection with length o f about 3,000 Xin. m, Procurement through N C 3 and implementation in 2004.

IRiM Works Program 20041'05: comprising civil works for a program o f r isk mitigation to be identified through the Samoa Asset Management System and the relevant CIM Plans.

e I3605

Project Component C: Sustainable Management of Infrastructure, Natural Resources and Risks - US$2.23 million

OUTPUT C : Infrastructure assets, natural resources, land and national emergency systems are under environmentally and socially sustainable management.

Th is component addresses a range o f issues affecting the sustainable management of infrastructure assets and natural resources, under the themes o f environmental management, natural r isk management (particularly the impact of natural hazards on infkastructure), emergency management, land management (including land administration and management o f natural resources), and infortnation management. It i s structured into two sub-components for the purposes o f implementation, as follows. Each will be implemented under MNRE though a consulting fm procured internationally through QC3S procedures - certain tasks will require high participation by local f u m s and personnel.

C.4 ~ ~ ~ ~ r o ~ ~ e ~ ~ , Risk and Resource ~ a ~ a g e m e ~ ~ ($1.50 m): Advisory services and equipment as follows:

e C4.01 ~ n ~ ~ r o n ~ e n f , Risk and Resource l an age men^^ Technical assistance dl be provided through one consulting services contract procured through QC3S covering four tasks:

(1) Environmental Minagement: This will help environmental management become a mainstream activity o f the MNRE and all stakeholders in inf3-astructure development and maintenance, through the following activities: (a) Findise the EM regulations so that they can be endorsed by Cabinet and passed into law - the requirements would then apply to al l government and private sector proponents; (b) Provide hrther support and training in environmental management practices (including the Codes o f Environmental Practice) relating to physical works, especially targeted at the construction industry; and (c) Institutionalise the process o f data collection for environmental monitoring and impact assessment as a routine activity.

(2) Natural Risk Management: The existing approach on risk management would be broadened, including completing the coverage o f District-level management plans nationwide, and assessing the effectiveness o f the current approach, through the following activities: (a) Adaptation and broadening of the Coastal Mastructure Management (CIM) Strategy to address all natural risks in both coastal and dand areas by: (i) incorporating issues relating to climate change adaptation (which, apart fiom sea-level rise effects which i s in the strategy a present, considers inter alia changes in the persistence and frequency of extreme events); and (ii) incorporating strategies for other types o f hazards (e.g. flooding, landslips etc.); (b] Preparation o f CIM Plans for the remaining 28 Districts on Upolu and Savaii, following the highly participatory approach developed under IAM-1 involving the effective participation o f village inhabitants, endorsement o f the village councils (fiono), coordination within the District, and endorsement by the Minister; and (c] Survey the effectiveness of the management plan approach with respect to public awareness and acceptance o f the CIM Plans across various comuni ty groups (e.g. m a ~ a ~ , women, youths etc,),

- 35 -

and implement modifications as appropriate. [Note: The CIM Plans are currently used to control the risks relating to the use o f natural resources, inht ructure development and economic activities - it i s proposed that they should be used as National Planning Documents and be accepted as Sustainable Management Plans (SMPs) as provided for under the proposed P U M A Act.]

(3) Resource Management: Environmental management of natural resources (covering aggregates and minerals, fisheries, forestry, watersheds, conservation and heritage lands, national parts etc.) i s an emerging core function o f TviNRE. The tools and approaches that have been developed and applied to infi-astructure management in coastal hazard zones can be extended to the management o f natural resources. Th is task would train and support MNRE to better manage and provide policy advice to government on natural resources using GIS as an analysis tool. The specific activities will be identified during project implementation, but will be strongly tied to the initiatives identified from, or making use of, the ClM Plans and the policy development objectives for IviNRE as specified in its corporate plan. One example i s likely to relate to policies on sustainable aggregate supply. There would also be coordination with related activities, especially those addressing 'soft solutions to risk mitigation, such as proposed GEF-financed activities (e.g., conservation o f globally significant wetland ecosystems in Samoa; and Climate change adaptation in coastal communities), and other activities (e.g,, SPREP project on capacity-building for development o f adaptation measures in Pacific Island countries, a PUMA study on sanitation and drainage study, etc.).

(4) Emergency Management: The National Emergency Management Plan would be updated to be consistent with best Pacific practice, so that there is an emphasis on risk reduction as well as readiness and response to emergencies. Under a best practice model, the leadership and emergency management during a response phase would be confined to a few (perhaps three) people with significant executive authority. Apart from rewriting the Plan, the activities would include: (i) workshops to align the approach forward amongst various stakeholders; (ii) training and professional development; (iii) community and organisation awareness training (implemented in conjunction with the CIM Plan consultation process); (iv) event simulations; (v) additional equipment; (vi) preparation of supporting legislation; and (vii) review o f options for disaster management insurance. Direct or bilateral support f iom major emergency management agencies in the region, or existing regional programs, will be sought where appropriate to assist in the supply of equipment, to guide implementation and operation, and to assist in mentoring, professional development and training.

C4.02 E W e ~ ~ ~ ~ e n t : (i) Information technology to support disaster and emergency management, natural resources and environment management; (ii) Establishment o f new disaster and emergency management office; (iii) Satellite radio communication equipment - procured through international and national shopping.

e C4.03 Vehicles: Two vehicles for support o f the reformed emergency management organization, procured through United Nations IAPSO.

e C4.04 ~ ~ c r e ~ e n t u l ~ ~ e r u t i n g Costs for ~~~ Incremental operating costs incurred by MNRE directly related to the Project, including travel per diem and transport o f Project staff and other participants, rental o f facilities, publication and dissemination o f Project-related materials, office supplies and consumables, and communication, but excluding salaries and allowances.

- 36 -

C.5 Land A d ~ j n ~ ~ ~ a ~ ~ o n and Survey ($0,53 m) : location-referenced information, including the registration o f land titles and the administration o f lands, through the provision o f technical assistance and equipment, Le.:

Improving the reliability and accuracy o f

C5.01 Land A d m i n ~ ~ ~ a ~ i O n and Suwey Services: Technical assistance through consulting services procured under QCBS procedures for two tasks, Le*:

(1) Survey and Geographic Information: Modem survey and information technology would be established as the basis for managing all location-based data and land administration data. First the accuracy o f the survey control network for the national Samoa Integrated Grid (SIG) would be upgraded to a standard suitable for cadastral survey, and to tie into the currently used Lemuta cadastral datum. Th is upgrade would allow all forms o f survey information, e.g., data from aerial photographs or detailed ground surveys, to be accurately linked within databases for scientific, engineering, planning, management and policy development purposes. The associated survey regulations would also be upgraded to reflect the new survey standards, Second, technical standards would be developed to eliminate technical barriers to the exchange of information between agencies, such as discrepancies found in location data deriving from differing technologies. These new standards (e.g., the precise definitions for geographical datums, projection standards, methods o f datum conversion, topographical data dictionaries, and meta-data standards for layers and details used in geographical databases and drawing files) would be published by MNRE, probably through their webpage for convenient access. T h i s initiative i s consistent with the GoS’s dr& policy on ~ n f o ~ a t ~ o n and C ~ ~ m ~ n i ~ a ~ i o n T e c ~ n o ~ o ~ j e ~ to ensure “cooperation between stakeholders,”

(2) Strengthening o f Land Administration: The land administration system (registration and titling) would be strengthened from the cutrent largely deeds-based system to one based on the Torrens system. Associated legislation and procedures would be developed through a consultative approach, and extensive training and liaison provided for MNRE and industry stakeholders lawyers and surveying professionals. The initial improvements to land administration under IAM-2 would focus on the administration o f freehold and government land which is through MNRE, and involve: (i) Systematizing the cadastral system so that a l l stakeholders are utilizing an accurate GIS mapping system which i s m i fo rm and easily translatable across d clients; and (ii) Changing the legal framework from a deeds to a Torrens system, which will substantially reduce the contestability o f title. For customary land, the system would be designed to allow the authority ( pule) over customary lands to be recorded, and customary land would be gradually brought into the improved mapping system in two ways, viz: (i) when a customary land issue i s brought to the Lands and Title Court for adjudication, the land would be surveyed and recorded in the new system; and (ii) when customary land i s leased the h4NRE has the responsibility to survey the land to determine exact boundaries for leasing purposes. It i s not intended to incorporate the Lands and Titles Cowt itself in the reforms at this stage, however, relevant stakeholders would be consulted to assess any support for extending the reform initiative, perhaps under separate assistance.

e C5.02 Land A d m ~ n ~ ~ a ~ ~ n and Suwey ~ ~ u ~ ~ e n t : Global positioning system, land administration software and related goods, through international shopping.

C.6 ~j~~ A d a ~ ~ a ~ ~ n Measures ($0.20 m) - In conjunction with and complementary to the infrastructure r isk mitigation program, a program of adaptation measures to mitigate natural risks will be undertaken through the provision o f small grants to communities, Eligible activities include non-structural actions to

- 37 -

mitigate natural risks, e,g., rehabilitation of rnangrove areas, bioengineering stabilization techniques, beach replenishment, d i s s e t i o n and awareness raising, control o f sand-extraction, etc., especially those identified in an authorized risk mitigation plan, including a CIM Plan. Eligible recipients include village or District councils, and non-govemment organizations (NGO)). Grants w o d d be disbursed after submission and clearance o f eligibility compliance and an implementation plan.

Project Component D: Institutional Development in Transport and Infrastructure - LIS$1.42 million

OUTPUT D : r ~ ~ t ~ t j o n a ~ reforms are c o ~ ~ ~ e t e d , ~ p e r a ~ o n a ~ and s ~ t a ~ n a ~ ~ e for efective policy, oversight and asset managementf~r the i n f r a s ~ ~ t ~ ~ e sector.

D.6 ~ r a n ~ p ~ r t and r n f r a ~ ~ c t ~ r e Sector reform and strengthen~ng ($1,31 m): The subcomponent will help to develop the new Min is t ry o f Works, Transport and Infrastructure and strengthen i ts performance, though two related activities, i.e.:

D6.O 1 ~ r a n ~ p ~ r t and r n ~ a s ~ r ~ c ~ ~ r e Sector refom and s~engt~en jng Services: Tecfinical assistance €or : (i) establishing appropriate institutional structures for land transport, roads and other public infrastructure responsibilities, such that it will be able to function eRectively in providing the roles o f policy and planning, regulation, inhstructure and operations management, and service delivery; and (ii) advisory support for air transport infrastructure. Areas that have been identified for assistance include:

e

0

e

0

e

e

0

e

0

e

0

0

e

a

Preparation o f a Corporate Plan

Advice on effectively combining Works and Transport under one M in i s t r y

Creation of a Road Operation Division

Transfer and strengthen the functions o f vehicle and driver administration in the new

Strengthen Policy and Regulation functions for al l transport

Design and introduction o f road user charges to recover road preservation costs

Improved design and implementation ofthe Road Safety program

Assistance with human resource development, in training and shffmg

Strengthen asset management procedures for road and coastal infiastructure program development, budget preparation and monitoring using the SAMs (Samoa Asset Management System)

Asset monitoring support

Improvement o f the procurement processes

Improvements to contract preparation and administration procedures

Advice and assistance with the design, legislation and establishment o f a Land Transport Authority by late 2005,

Advisory support for Sarnoa Airport Authority (SAA), with regard to the Program objectives, corporate and business plans, operation and planned closures of minor airports, financial performance, etc.; and

Ministry

- 38 -

Establishment and training in operation o f asset management system for the SAA, covering all airport infrastructure.

A consultant firm will be selected through international QC3S procedures, and &e services will be provided over a period o f three years from 2004 to 2006 on an intermittent basis.

D6.02 ~ n g j n e e r ~ ~ g ~ u ~ ~ o r t to MWTL Provision of two individual engineering specialists to support MWTI operations during the institutional development phase.

D6.03 ~ n c r e ~ e n ~ Q ~ ~ ~ e r a t ~ ~ g Costs in ~~: Incremental operating costs incurred by MWTI directly related to the Project, including travel per diem and transport o f Project staff and other participants, rental o f facilities, publication and dissemination o f Project-related materials, office supplies and consumables, and communication, but excluding salaries and allowances.

D.7 ~ r a ~ n ~ ~ g ($0.11 m): Development o f key competencies in staff involved in project-supported functions in selected stakeholders under the Project, including the provision of training.

Project Component E: Project Management - US$1.75 million

OUTPUT E : The Project achieves the ~ ~ ~ ~ r ~ g r a ~ d e ~ e l o ~ m e ~ t objectives and targets, within budget, on time and in c ~ m ~ ~ i a n c e with sa fe~Qrd and l e g a ~ ~ r o y ~ ~ ~ o n ~ .

E.4 Project M a ~ ~ g e m e ~ t (31.83 m]: The project management framework established for IAM-1 will be continued with modifications. A Project Management Unit (PMU), administered by the MOF and reporting to the multi-agency Project Steering Committee, would be responsible for delivering the project outputs within budget, on time and in compliance with the safeguard and legal provisions o f the Government and IDA. The PMU would be staff% by three persons (project manager, project accounmt and administrator) through a consulting h, on a less-than-fullthe basis. Each other implementing agency, MWTI and MNRE, would either employ an individual consulmt or designate a staf f person as a project component manager (PCht), to manage the procurement, supervision, contract administration and progress reporting for all activities implemented by the respective agency, The firm would be procured on basis o f single source selection, extending the services ofthe existing firm under revised terms o f reference. The two PCMs would be procured under individual consultant selection procedures. The contracts comprise:

E4.0 1 Project Management Unit (firm): comprising a Project M a n a g ~ / p r o c u r ~ e n t specialist, a Project A c c o u n ~ ~ f ~ c i a l management specialist, and a ~ i s s e m i n a t i o ~ A ~ s ~ a t i v e person, employed on a less-than-full tirne basis over the duration o f the Project;

E4,02 MWTI Project Component Manager (individualj

E4.03 MNfiE Project Component Manager (individual)

E4.04 Project Dissemination materials: for the purpose o f raising public awareness o f the objectives and achievements o f the Project, and sharing knowledge with other n a t i o d and international stakeholders.

E.5 Project Audit ( $ ~ . ~ 4 m]: h independent auditor acceptable to txle Association would undertake annual f m c i a l audits o f the Project accounts. Financed by Government.

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Annex 3: Estimated Project Costs SAMOA: Second Infrastructure Asset Management Project

Project Cost By Component 1. Airport Infrastructure 2. Road and Other Infrastiructure 3, Sustainable Management 4, hstitutional Development 5. Project Management Total Baseline Cost

Physical Contingencies Price Contingencies

Local US $million

1.04 9.26 1.16 0.72 1.06

13.24 0.71 0.52

Foreign US $million

0.00 5.02 0.99 0.64 0.70 7.35 0.47 0.3 1

Total US $million

1.04 14.28 2.15 1.36 1.76

20.59 1.18 0.83

Total Project Cost: 14.47 8.13 22.60 Total Financing Required 14.47 8.13 22.60

Project Cost By Category Goods Works Services Training Grants Operating Costs Resettlement Compensation

Local Foreign I US $million US $million 1.22 8,23 3.70 0,06 0.10 0.10 1.06

0.16 5.22 2.71 0.04 0.00 0.00 0.00

Total Project Cost: 14,47 8.13 Total Financing Required 1 14.47 8.13

Total US $million

1.38 13.45 6.41 0*10 0*10 0.10 1.06

22.60 22.60

Note: Costs net of VAT

- 4 0 -

Table 3: Detailed Project Costs by Subcomponent U8D Mllllon

sass Cost Base Cost Total W l IDA Oovt Tala Total Contingencies Total Total

A. Airport Infrastructura A6 Air Traffc Control

B. Road B Other Infraotructura 6.1 Brldge Upgrading

31.05 Fagalii Bridge 31.06 Faieia Bridge 31.07 Mulivai Bridge 31.08 Other Bddges 31.09 Engineering Designs 31 .10 Constructlon Supervision

32.02 WCR Construction Supervision 82.03 West Coast Road - A 82.04 West Coast Road - 3 82.05 West Coast Road - C 82.06 WIR Planning 8 Design

33.05 Feiafa Streets 83.06 Apla Traffc Management

1.4 Road Network Devslopment 84.01 Design Services

34.03 Vaitele St. West 34.04 Vaitele St. Central 34.05 Fugalei St. 84.06 Land Compensation

B.5 Remote Access 85.01 Engineering Design and Supervision 35,02 Fagaloa Bay Woda

86.01 IRM Design 86.02 IRM Supervision 86.03 Mulinuu 86.04 Manonoifaslioo 36.05 IRM Program 200-4105

31 Road Rshabllltatlon

3.3 Road Safaty and Trafflc

84.02 SUpeWbion

B.6 Infrastructure Filsk Mitlgatlon

C. Sustainabla Management

C4.01 ERREM Servloes C4.02 ERREM Equipment 01.03 Vehicle3 W.04 MNRE Incremental Operating Costs

C5.01 Land Administration 8 Survey Services C5.02 !AS Equipment

CA Environment, Riok, and Resource B Emergency Managament

C.5 Land Admlnlstratlon 8 Survey

C.8 Risk Adaptation Measures

D, Institutional Dsvelopment 0.8 Transport and Infrastructure Dsvslopment

D6.01 Transport and Inhelructure Strengthening 06.02 Transport Engineer Support D6.03 MWTl lnuemenial Operating Costs

0.7 Trainlng

E, Projed Management E.4 Project Management

€4.01 Project Management Unit E4.02 Project Managers MWTl E4.03 Project Managers MNRE

E.5 Project Audit

contlngsncies

Total Project Cost (excluding VAT) 1

3.00 3.w

41.39 2.85 0.65 0,85 1 .w 0,w 0.35 0.20 7.30 0.5s 2.15 2.15 2.14 0,343 3.23 2.40 0.85

23.00 0.70 I .40 7.10 6.20 4.m 3.M) 2.49 0.29 2.20 2.50 0.10 0.20 0.67 1.03 0.30

6.23 4.M 3.40 0,40 0.20 0.18 1.75 1.43 0.30 0.30

5.96 3,8% 2.66 0.72 0.06 0.30

5.10 5.00 3.20 0.90 0,w 0.10

5.80

65.50

1.04 1 .@4

14.28 0.98 0.22 0.22 0.35

0.12 0,07 2.52 0.19 0.74 0,74 0,74 0.10 1.12 0.83 0.29 7.94 0.24 0.48 2.45 2.14 1.59 1.04 0.88 0.10 0.78 0.88 0.03 0.07 0.30 0.36 0.10

2.15 I .4d 1.17 0.14 0.07 0.06 0.80 0.50 0.10 0.10

1.37 1.28 0.99 0.25 0.02 0.10

1.78 1.73 1.10 0.31 0.31 0.03

2.00

22.60

1.06 1.06

18.08 1.10 0.25 0.28 0,40

0.12 0.07 2.83 0.20 0.84 0.84 0.84 0.10 1.26 0.92 0,33 8.93 0.25 0.50 2.80 2.47 1.85 1.06 0.97 0.11 0.66 0.98 0.03 0.07 0.34 0.40 0.12

2.23 1.50 1.22 0.14 0.07 0.07 0.83 0.52 0.11 0.10

1.42 1.31 1.04 0.26

0.11

1.83 1.80 1.15 0.32 0.32 0.04

0.02

22.60

9.11 0.68 0.15 0.15 0.24

0,09 0.05 1.73 0.15 0.51 O S 1 0 3 0 0.06 0.76 0.56 0.20 4.73 0.15 0.30 1.69 1.48 1.11

0.80 0.08 0.52 0.59 0.03 0.05 0.20 0.24 0.07

1.33 0.91 0.73 0.09 0.04 0.05 0.38 0.31 0.06 0.10

0.96 0.84 0.62 0.20 0.02 0.11

1.31 1.35 0.66 0.24 0.24

12.80

1.06 1.M

8.5 0.42 0.10 0.10 0.16

0.04 0.02 1.10 0.05 0.34 0.34 0.34 0.04 0.49 0.x 0.13 4.20 0.10 0.20 1.1'1 0.99 0.74 1.06 0.38 0.03 0.35 0.37 0.01 0,02 0.14 0.16 0.05

0.84 0.58 0.49 0.m 0.03 0.02 0.25 0.21 0.04

0.47 0.47 0.41 0.05 0.01

0.43 0.45 0.29 0.08 0.03 0.04

9.81

Identifiable taxes and duties are 5.62 (US$m) and the total project cost, net oftaxes, i s 16.98 (US%m), Therefore, the project cost sharing ratio is 75.38% of total project cost net of taxes.

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Annex 4: Cost Benefit Analysis Summary SAMOA: Second Infrastructure Asset Management Project

Description

1. Apia Urban Network Vaitele Street West Widening - Vailoa St to Fugalei St Vaitele Street Central Widening - ~ u g a l e i St to Falealili St kugalei St Widening b o r Traffic Management Measures

2, Rum1 Roads: Fagaloa 3ay Talea faga 3. West Coast Road

Total

Seal road &om L e Mafa Pass to

Periodic Maintenance With Drainage and Spot Safety Improvements

Summary of Benefits and Costs:

cost E m NPV Benefit (WSTrn) (96) (WSTm) Cost

at1294 Ratio

7.0 74 98.5 15.1

6 2 31 152 3.5

4.5 1 41 1 13.6 1 4.0 1.5 j N/A j 4.5 1 4.0

1.5 39 2.0 2.3

7.0 57 124.0 18-7

27.7 1 46 1 257.8 10.3

1. physical components initiated under W- 1 , and adds a new component on rural roads identified under the 10-year Road Sector Plan. The economic evaluation o f the project covers the following project components:

The Second Infrastructure Asset Management Project @AM-2) continue~extends investments in

(i) (ii] m a 1 roads upgrading; and (iii) West Coast Road maintenance.

upgrading of urban roads and bridges;

The coastal protection works will be subject to an economic analysis, sub-component by sub-component, as the communities decide on the works to be included

2. The economic internal rate o f return (EIRR) for the major portion o f the project is 46 percent, with a cost of WST 28 m and net present value component, the results of the economic analysis.

of WST 258 m, Tfie following table s m ~ z e s , by

Table 4.1: Summary of Economic Evaluation

Source: Consultants estimates

Main Assumptions:

3. The analysis i s based on the actual and forecasted data on traffic volumes, economic project costs, vehicle operating costs, benefits to transport users, and communities served by rural roads. The following inputs and assumptions were used in the economic evaluation:

- 4 2 -

m

e

e

e

4.

evaluation o f benefits over a 20 year period;

base year (2003) traffic estimates derived from traffic counts (200 1 ~ 20021, and origin and destination surveys (2003);

an annual traffic growth rate o f 3 percent i s assumed across the network, except 3.5 percent for the West Coast Road and 6 percent for Fagaloa Bay due to suppressed and generated traffic;

capital investments and maintenance costs reflect 2003 prices;

the benefits stream, discounted to the opening year o f the road being evaluated, includes savings in VOC and travel time.

This annex describes the economic evaluation o f the three main components described above - urban roads and bridges, rural roads, and the West Coast Road,

Urban Roads and 3ridges

5. The proposed civil works investments in roads, bridges, and pedestrian facilities have the objectives o f improving the efficiency and safe operations o f the road tramport system, and enhancing the Apia road network capacity, in the context of increasing motorization and traffic growth. These works are in line with the overall priorities for expanding capacity and enhancing the primary road network, identified in the Road Sector Plan and endorsed by Cabinet in August 2003.

6. Roads and bridges proposed for inclusion in the project are assessed within a programmatic framework. The Samoa Asset Management System (SANISj for investment program analysis has been developed and implemented under WM-1, incorporating a life-cycle economic analysis based in part on the Batik's Highway Development and Management model (HDM-4j. SAMs was used to evaluate asset conditions and service levels; these evaluations then provide the quantitative basis for work prioritization and annual budget allocations. Bridge works yield benefits in the form o f reduced accidents, maintenance o f access, lower l ife cycle costs, and time savings from smoother traffic flow. The bridge replacement work within JAM-2, includes completion of two bridges (Saleia and Falevao) and construction o f two bridges carried over from IA.M-1. These are Fagali’i ford and Falefa bridge, justified as shown in Table 4.2. Other priority bridge replacements have been included in the capacity improvements for the Apia urban road network.

Apia Urban Road network

7. An. Apia Road Network and Traffic Management Study ( A W M S j was completed during preparation to identify a program o f works to improve traffic conditions and reduce congestion in Apia. The study included development o f a traffic model, based on extensive data collection, consultation and site inspections (see Annex 14). The study and modelling exercise resulted in preparation o f a road hierarchy for Apia; the traffic assignment model developed for the study relied on the assumptions and inputs described in paragraph 3 above. For pedestrian facilities, the cost-benefit analyses assessed the expected savings deriving from reduction o f accidents, fatalities and injuries. Sensitivity analyses tested the impact o f varying costs and benefits on the economic viability.

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Table 4.2: Proposed Priority Bridge Replacements

Saleia

Falevao

0.13- L4M-2 3 150 4.6 single lane, east On only link to share of contract approach washed south coast o f cost 0.52m away Savai'i

0.22 -L4M-2 > 250 11.6 single lane, bailey On only link to

8. component.

The following priority investments, demonstrating the best economic return, are included in this

3ridge Cost (USD m) M D T ]Benefit, Condition Fmct iod (vehlday) Cost Alternatives

ratio

share o f contract cost 0.96m corrosion

timber deck some

Fagali'i 0.36 1,125 4 1.5 lane ford, slab broken & scoured

9. combine footpaths with traffic calming measures, and help to modify patterns o f driver and pedestrian behavior in the urban area. These measures, which will be implemented under LAM-2, help improve the efficiency and traffic capacity of the network and safety in the Apia urban area.

The AJ3"MS has identified a program o f minor works for traffic management-the interventions

E-SE coast of Upolu

Main link to domestic airport

West Coast Road

Falefa

10. The existing West Coast Road (WCR-) provides access from Apia to Fakolo A q o r t and Mulifanua inter-island w h r K I t was identified in the Coastal M m t r u c w e Management Strategy (CIMS] as being at risk o f severe storm damage and closure. The existing pavement i s deteriorated and the road requires periodic maintenance and widening to cater for future traffic demands. The economic analysis showed that there was a strong case for creating a new idand route which would allow the existing WCR to revert to a local access road, increasing safety and reducing pollution. This inland route w o d d also eliminate the risks of road closure due to cyclones. The cost o f the W R will depend upon &e €mal route selected and i ts connection to the existing network in Apia as discussed in Annex 14. The feasibility study proposed locating the WIR. 0.5-1.2 h inland from the existing WCR and terminating at the WCR in Vaitele. This was estimated using f-IDM to cost WST 42 m with an EBR o f 45 percent.

0.77 > 40 7 s Single lane, Only link to two corrosion below timber deck

villages, and no alternative routes

Improvement Road condition E m

141 , Vaitele St. West widening: Vailoa - High traffic flows and bad congestion 74

31 NIA

Vaimosa A2. Vaitele St. Central widening A3. Urban Traffic Management schemes

Upgrading needed to arterial standard Necessanr to imnrove traffic flows

144. Fugalei Street widening Upgrading needed to accommodate 41 traffic flows

1 1 As a result o f the above finding, the standard o f rehabilitation o f the existing WCR was reduced to resurfacing and selected rehabilitation, and resealing drainage and spot safety improvements to all sections of the West Coast Road. The cost i s estimated at WST 7 m. Using I-IDM, the ERR was 66 percent and the NPV WST 124 m at a discount rate o f 12 percent. High retums such as these are c o n " when there has been a persistent shortfall in maintenance expenditure over a network and a large backlog o f work has accumulated.

LeMafa Pass - Talefaga / 3 . 9 h Cost WST 1.5 M Motorized traffic (MDT: 2002) 47 NPV W S T 2 . 0 M

Traffic growth rate/ year (including generated 6% BCR 2.3 and suppressed traffic)

Rural Roads

12. communities: Fagaloa Bay road, Sauniatu and Tiavea roads. Feasibility studies were done on three rural road projects where communities were remote and dis~vantaged by the poor passability o f the roads: Fagaloa bay, Tiavea and Sauniatu. The Sauniatu road upgrading was found to be uneconomic, even with a 3 m sealed width and, instead, a cost sharing m g e m e n t with the local organization was being considered. The Tiavea road services a small comunity o f 6 f am i l i es4 was not possible to justify upgrading this road, however? the Appraisal Mission recommended that the IdWTI perform limited maintenance and regravelling to restore passability and to ensure that the road i s kept open.

Tfie rural roads feasibility studies included three rural roads providing all-weather access to remote

13. Fagaloa Bay i s a moderately sized c o m m d t y of approximately 1,000 persons in four main villages (Taelifaga, Lona, Musunusu and Ulfato). The existing connection to L e Mafa Pass Road i s unpaved and travels over a steeplands area. i t i s often closed due to landslides or pavement failure due to inadequate design and drainage. The residents o f the area are severely disadvantaged by the road condition as it often creates difficulties for accessing medical care and schools. I t also l imi ts the opportunities for economic development as there i s a high risk that produce cannot be taken to market. The improvement of the road linking the village o f Taelefaga with L e Mafa Pass Road to a 3 m paved road in mountainous areas, and 5 m on flat sections, was found to be economically justifiable. Widening would also be provided on curves. Extending the road 3,1 km. from Talefaga to Lona i s marginally uneconomic due to the additional costs o f coastal protection works. The ERR for this investment was calculated using HDM as 39 percent and the NPV WST 2.0 m (pp 18 Supplementary Economic Assessment report). Inclusion o f additional uncosted development and access benefits would have resulted in an even higher level o f economic retum.

Coastal Protection Infrastructure

14. Samoa i s exposed to severe hazardous weather, specially cyclone events. These events damage the natural coastline as well a man-made assets located in the coastal hazard zone. The Coastal Infiastmcture component o f IAM-1 focussed on the development of a Coastal Mastructure Management Strategy (CIMS), based on an integrated and environmentally sustainable approach to planning and managing coastal infi.astxucture assets. The Strategy includes the development of Coastal hfkastructure Asset Plans

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for all (28 plus) districts in Samoa, these plans operationalize the Strategy. The CIM plans have been developed through a process o f intensive and systematic consultation with communities living in the hazard zone. The Strategy has also identified a methodology for the economic evaluation o f proposed investments w i t h the Coastal Infrastructure Management (CIM) Plans. Based on this, the coastal protection works identified for inclusion under IAM-2 are: (i> Satui-Manono-uta, (ii) Fasito'o-uta--cmhuing protection o f the WC Road, and (iii) M ~ u ' u - - c o m p l e ~ g the gap in the Apia harbor wall.

Sensitivity analysis I Switching values of critical items:

Apia Urban Road Network

15. viable @IRR > 12 percent) when the construction costs were increased by 20 percent. Decreasing travel t h e costs by 20 percent made the A.4 Fugalei St widening marginally uneconomic. Decreasing traffic growth by 50 percent made A.2 Vaitele Central and A.4 Fugalei St widenings uneconomic. All scenarios showed that there was a strong case for A1 . Vaitele West widening. No switching values were provided in the consultant's report.

The ARNTMS study sensitivity analysis showed that the road improvements were econonomically

West Coast Road

15. The consultant's study found that the most sensitive factor was the amount o f traffic diverting to the new inland route along with the length o f the idand route, The project was economically viable even when capital costs were increased by 30 percent and traffic growth decreased by 25 percent. A reduction o f 30 percent in the vehicle operating costs did not affect project viability.

17. reductions.

The switching vdue was 502 percent for capital cost increase and 80 percent for road user benefit

Rural Roads

Sensitivity test and switching values for this component were not available.

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Annex5 Financial Summary SAMOA Second Infrastructure Asset Management Project

Years Ending June

IMPLEMENTATlON PERIOD I

I Year1 I Year2 1 Year3 j Year4 I Year5 I Year6 I Year7 Total Financing Required Project Costs Investment Costs 1.5 4.7 6.1 5.1 3.7 1 .5 0.0 Recurrent Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Project Costs 1-5 4.7 6.1 5.1 3.7 1.5 0*0 Total Financing 1.5 4.7 6.1 5.1 3.7 1.5 0.0

Financing IBRDHDA 0.8 2.4 3.2 3.2 2.3 0.9 0.0 Govemment 0.7 2.3 2.9 1.9 1.4 0.6 0.0

Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Ca-financiers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 User FeeslFJeneficiaries 0.0 0*0 0.0 0*0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total Project Financing 1.5 4.7 6.1 5.1 3.7 1.5 0*0

Main assumptions:

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1.053 1.59 1 0.059 2.704 2,421 0.352 0,144 5,621 0.149 5.770

3.395 1,977

0.079

1338 1.996 0.075 3.308 2,736 0,520 0244 6,809 0.137 6,946

3.957 2,576 0.321 0,076

0.853 2.053 0.070 2.986 2.435 0,439 0.197 6,056 0.113 6.169

4,913 3.422 1,163 0,155

1,059 1.823 0.066 2,958 2.659 0,320 0.389 6.325 0.141 6.467

5,059 3.628 1.213 0.241

1.240 2,810 0,083 4,133 2,650 0,461 0.392 7.636 0.120 7.756

4 . m 3.700 1.250 0.250

1.334 3,169 0,087 4.590 2,784 0.497 0.43 1 8.302 0.123 8.425

4.982 3.581 1,250 0.256

1,436 3,573 0.091 5.100 2.925 0.534 0.475 9.035 0,126 9.161

5.170 3.466 1.250 0 153

1.546 4.028 0,096 5.670 3.073 0.575 0.524 9.842 0.129 9.971

5.365 3.355 1.250 0.269

I 663 4.542 0,101 6,306 3.229 0.619 0.577

10.731 0,132

10.863

5568 3.247 1.250 0.276

Total - 5,451 6,931 9,654 10.151 10.m 10.069 10.149 10,239 10.341 NeI h c o w ~Lmsi 0,319 0,015 0,485) (3.684) (2.244) ( 1 . 6 ~ ) (0.9881 (11,268) 0,522

3. CpsflFIOw Cprh iWw I“ operndng afdvidps cash w pmvided f“:

&h was disburred 10: cashfiwnc”€?z 5.381 7.364 6.516 7.119 7.756 8,425 9,161 9.971 10.863

hy”6 to SuPpIiaJ, enqlloyss 13.198) (4.014) (5.656) (5543) (5.050) (5238) (5.433) (5.635) (5.844) lntmat paid M OVcrdraA (0.003) (0.m5) (0.013) (0.027) - SUbtoBL (ash dihmsd) (3.201) (4.018) (5.659) (5,570) (5.050) (5.238) (5.433) (5.635) (5.844)

Net 4 Row OPBaring 2,180 3.345 0,848 1.549 2.706 3.187 3,728 4.336 5.019 Ea& %ow Iram lamliag adivitkr Cndlmpnidedfiwn:

Fmd assoL3 saicr 0.010 0.076 0,025 0.101 0.050 0.050 0.050 0,050 0.050 IlItPmt on t€¶n deposit 0.049 0.097 0.096 0.076 0.043 0,022 SubmmI (d f” i“m) 0.059 0.172 0.122 0.177 0.093 0,072 0,050 0,050 0.050

Fired nszee purchases (1552) (1.863) (1.480) (1,359) (1.500) (1.500) (1.500) (1.500) (1,503)

Redudion in m liabilities - (0.2%) (1.3Ml) (1.930) (2,536) - P3imipl q”mt ~ (3,217) Intnramwloan - (0305) (0.463) (0300) (0303) (03W) (03W) (0,300) (0.300) Suhtal (cash m for ioveshnr) (l.SS2) (2.767) (1.943) (2.849) (2,056) (3.160) (3.730) (4,336) (5.0ln

Ne cash Row invsring (1.493) (2.595) (1,822) (2.673) (1.963) (3,088) (3.680) (4.286) (4.%7) casll balm=

cash waj applied to :

hcleasz in Lcnn *ita - (0.Scq) - (1.190) -

Net ina(k.j cash ir ld 0,587 0.750 10.974) (1.123) 0.743 0.099 0.048 0.051 0.052 4 h @ t fwd 1.129 1.815 2165 1.591 0.468 1.211 1,310 1,358 1.409

~ f a j ~ ~ ~ 1.815 2.565 1.591 0.468 1.211 1.310 1,358 1,409 1,461

53.568 (19.959) 33.598

0.742 1.073 1.096 2.169

(0.680) 2,232

62,021 (30.654) 31,366

62.700 (19,871) 42.829

0,830 1,735 1,274 3.w

(2.147) 1.692

(19.182)

93.256 (32,937) 60.319

62.700 t-23.4w 39296

0.000 1,828 1,087 2.914

(1.472) 1.442

(20.519)

94,719 (36.346) 58,373

62.700 (27,Wl) 35.660

0” 0.717

(0.007) 0,710

(6.503) (1.174)

(19.776)

96256 (39.6%) 56.610

59.432 (29.28s) 30.147

0.842 0.369 l.w 2.21 1

(6.503) (4292)

(19.776)

97.706 (43.491) 54,215

60,114 (30,929) 29,185

1,309 0.w 1.w 2.310

(5.143) 0.833)

(19.776)

99.1% (47.362) 51,794

60.629 (31.917) 28.712

1.358 O.m l .m 2.358 13213) (0.%54)

(19.776)

100.635 151.263) 49 342

60.999 (32.185) 28,814

1,409 0 .W 1.W 2,409 (0.677) 1,nz

(19.776)

102056 (55.198) 46,838

61.224 (3 1.663) 29.561

1.461 O.m 1.m 2.461 (0.6-n) 1.784

(16.559)

103.5M (59,170) 44335

4.2% 5.0% 2.5% 15.3% 10.0% 2.5% 8.6% 2.5% 2.5%

11.2% 2.3% 2.5% 2.5% 7.0% 5 . m 2.5%

28.4% 7.5% 2.5% 8.%

-5.2% 0.0% 2.5% 7.7%

9 .W 1.25% 2.556 17,Wo

33.2% 0.056 2.5% 16.4%

T d 33,598 42,829 39.2% 35.6M1 30.147 29.185 28.712 28,814 29.561

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Annex 6(A): Procurement Arrangements SAMOA: Second infrastructure Asset Management Project

Procurement

General

1. Procurement o f works and goods will follow the Guidelines-Procurement under XBRD Loans and IDA Credits dated January 1995, revised in January and August 1996, September 1997 and January 1999 (the Guidelines). IDA'S Standard Bidding Documents (including standard prequalification and bid evaluation documents) will be used for all IDA financed procurement canied out by Xntemational Competitive Bidding (XCB). Bidding procedures for contracts procured under National Competitive 3idding (NCB) will use local procedures and bidding documents, as modified to ensure economy, efficiency, transparency, and consistency with Section I o f the Guidelines, The main modifications needed are in the areas of: participation in bidding, advertising and time for bid preparation, use o f Standard Bidding Documents, classification o f contractors, qualification and post-qualification, registration, bid opening and evaluation, rejection o f bids, post-bidding negotiations and inspection and auditing o f accounts, all o f which are covered in an Annex to the DCA. Procurement o f consulting services will conform to the Guidelines - Selection and Employment o f Consultants by World 3ank Borrowers dated January 1997, revised in September 1997, Jan~mry 1999 and May 2002. A Procurement Plan, providing a timeline for each step in the procurement process i s included in the Project Xmplementation Plan (BPI€'), and will be updated quarterly.

Procurement Assessment of Implementing Agencies

2. An Assessment o f Agency's Capacity to hnplement Project Procurement has been carried out in respect o f the three agencies involved in this project, namely, the MOF, the W E , and the MNRE. All these agencies have previous experience in donor-financed procurement, but there have been some staff changes because o f a govemment reorganization, so some additional support and training will be necessary. The Action Plan in the Assessment proposed the following key actions: by negotiations - completion o f the 3orrower's Project Implementation Plan @PIP j, addressing the procurement issues specific to th is project including the Procurement Plan (draft cleared); by credit effectiveness - establishment o f PMU, appointment o f Project Component Managers, agreement on a set o f national bidding documents being prepared by the Govemment, and preparation o f fust year's bidding documents; recruitment and training o f procurement staff will be reviewed on an on-going basis during implementation o f the project. The conclusion o f the assessment was that the o v e d procurement r isk was Average and the mitigation measures suggested are aimed at controlling and lowering the risk.

Procurement methods (Table A) 3. The project costs by procurement arrangement are shown in Table A. Works with an estimated contract value o f U S 1 mill ion equivalent and over for a total cost o f $9.63 mill ion will be procured by XC3. The remaining works include small and scattered contracts for bridges, roads, road safety, traffic management, and coastal protection for a total o f $3.82 million, and will be procured by NC3. Clearance of bidding documents for works i s a condition o f credit effectiveness. IC3 will be used for 72 percent ofthe value o f works procured under the project.

4. Goods to be procured under the project are limited in quantity and are mainly specialised equipment related to the cadastral survey and land registration information management components.

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Goods with a contract value estimated to be US$ l~0 ,~00 equivalent and over for a total cost of $0.2 million will be procured by IC3, and other goods will be procured through International and National Shopping. Vehicles, with an estimated contract value o f ~S$70,000, will be procured through the Inter Agency Procurement Services Office &AJ"'). ICB will be used for 67 percent o f the value o f goods procured under the project.

5. Consultants will be selected using D A Standard Request for Proposals (MI?) - Selection o f Consultants dated July 1997, revised April 1998, July 1999 and March 2002 for contracts estimated to cost ~ S $ 2 ~ ~ , ~ 0 0 equivalent and over with a total cost of $3.74 million. Contracts estimated to cost less than U S $ 2 ~ ~ , ~ ~ ~ equivalent with a total cost o f 5 1.77 mill ion will be procured using local RFF documents, which are based on IDA'S Standard Request for Proposals. Clearance o f these documents i s a condition o f credit effectiveness, Firms will be appointed using Quality and Cost-Based Selection (QCBS) for most contracts having a total cost o f $3.96 million, with an option for using Least Cost Selection (LCS) or Consultants' Qualifications (CQ) for small contracts o f less than $100,000, as shown in Table AI. Firms wi l l be appointed using Single Source Selection (SSS) in three cases with a total cost o f $1.51 mill ion where justified in accordance with the Guidelines and with IDA approval, e g : (i) for detailed engineering o f the road widening works, selected competitively as phased services under the Project preparation activities; (ii) for engineering o f the remote access roads, in continuity from feasibility studies and due to the smd scale; and (iii) for project management, where continuity between project implementation and preparation phases was deemed crucial to timely performance. Individuals will be appointed for the two Froject Component Manager positions using competitive selection as the default method. Sole Source Selection for individuals may be used where justified in accordance with the Guidelines and with IDA approval. All consulting assignments with a contract value estimated to cost more than ~S$200,000 equivalent will be advertised in UN Development Business, All assignments will be advertised in two national newspapers.

6. Miscellaneous, Some small activities to the value o f US~~00,000 will be carried out through Grants to local communities or NGOs, disbursed and monitored in accordance with procedures outlined in an Operational Minual, which i s required as a condition o f credit effectiveness. Incremental ouerating costs incurred by the h r r o w e r for eligible activities directly related to the Project with a total cost o f $~0,000 and expenditures on eligible activities would be reviewed and disbursed through Statement of Expenditure procedures,

7. Contractors for IC3 works, with a total cost o f $9.63 million, will be prequalified in accordance with IDA guidelines. Contractors for NCB works are registered according to class with MWTI, but foreign contractors who wish to bid are permitted to do so and will be post-qualified. The conditions of acceptability o f the registration procedures are indicated in an Annex to the legal agreement,

Prior review thresholds (Table I))

8. The thresholds for procurement by ICB, NCB, and Other methods are shown in Table B. The thresholds for prior review are ~S$6~0,000 for Works plus the first contract under each sub-component valued at under ~S$600,000, US$50,000 for Goods, and US$l00,000 for consultant services contracts with € i and US$50,000 for consultant services contracts with individuals. Prior review would apply to 89 percent of the total value o f works, goods and consultant services procured under the project. Ex-post review would cover 30 percent o f contracts not subject to prior review,

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National Competitive Bidding - Mandatory Provisions

9. Because o f some differences between the Tenders Board Guidelines for Procurement and the Sank’s Guidelines, a sideletter has been attached as an Annex to the DCA detailing the mandatory provisions to be followed when procuring goods or works through NC3. Procurement methods (Table A)

Table A: Project Costs by Procurement Arrangements (US$ million equivalent)

Figures in parentheses are the amounts to be financed by the IDA Credit. All costs include contingencies.

21 Includes goods to be procured through international and national shopping, vehicles to be procured through MPSO, consulting services, training, incremental operating costs related to supporting field and consultation activities for the project, and grants to communities and NGO’s for non-structural risk reduction measures.

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1 (0.00) Total 3.96

(2.49)

Note: QCBS = Quality- and Cost-Based Selection QBS = Quality-based Selection SFB = Selection under a Fixed Budget LCS = Least-Cost Selection CQ = Selection Based on Consultants’ Qualifications Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial Practices, etc. N.B.F. = Not Bank-financed Figures in parentheses are the amounts to be financed by the Bank Credit.

(0.00) (0.00) 1 (0.00) 1 (0.00) (0.68) 1 (0.00) 1 (0.68) 0.00 0.00 0.00 0.00 2.41 0.04 6.41

(0.00) (0.00) (0.00) (0.00) (1.77) (0.00) (4.26)

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Prior review thresholds (fable 3)

Table 8: Thresholds for Procurement Methods and Prior Review'

Contract Value Threshold Procurement

Expenditure Category (USS thousands) Method 1, works Civil Works Civil Works

=. 1000 < 1000

IC3 NCB

2. Goods >100 IC3 4 0 0 LAPS0

3. Services Consulting Services - All QCSS, Other firms

Consulting Services - 1 ndivid uals All Other

Contracts Subject to Prior Review (US$ millions)

1w All contracts o f

US~b00,000 and over and first contract less than

~ S ~ b 0 0 , 0 0 0 under each sub-cmp"nt

All 1w contracts over

~ S ~ ~ 0 , 0 0 0

All contracts over US$l00,000 and al l SSS contracts

All contracts over US$50,000

Total value of contracts subject to prior review: USS17.5 million

Frequency of procurement supewision lnissions proposed One every 12 months (includes special procurement supervision for p ~ s t - ~ e v ~ e w ~ a ~ ~ ~ ~

Overall Procurement Risk Assessment: Average

L\ Thresholds generally differ by country and project. Consult "Assessment o f Agency's Capacity to Implement Procurement" and contact the Regional Procurement Adviser for guidance.

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Annex 6(B): Financial Management and Disbursement Arrangements SAMOA: Second Infrastructure Asset Management Project

Financial Management

1. Summary of the Financial Management Assessment

Financial Management. The f i t Infrastructure Asset Management Project has an established fmancial management system (FMS), including accounting, reporting, budgeting, auditing and proper internal control systems. The financial management reports, consisting o f sources and uses o f funds, special account statement and related procurement reports are currently generated, partially from a computerized accounting system.

The FMS was subject to a detailed review and assessment carried out by an IDA accredited Financial Management Specialist, in accordance with the Bank's OPBP 10.02, the Project Financial Management Operations Manual (FMOhii), Guidelines for FM Assessment, Financial Monitoring Reports: Guidelines to Staff, and Assessment o f Financial Management Arrangements in World-Bank Financed Projects. The FMS o f the P W meets the mini" IDA financial management requirements.

The FMS and disbursement arrangements for the second IAM Project are being redesigned together with the M i n i s t r y o f Finance, to resolve the difficulties encountered in the first IAM Project. The computerized accounting and financial management system will be upgraded to a higher version to facilitate the reporting system and meet the requirements o f both the Government and the World Bank. The associated financial r isks in project implementation were identified and basic financial accounting controls are put in place to mitigate the risks during supervision.

The FMS i s designed according to the scope, objectives, and components o f the Project. The organizational arrangements for project implementation will follow the same set-up as IAM-1. A Project management team, engaged as external consulting fm, will supervise project implementation and procurement administration. The Project will follow the same Government system for arranging disbursements and project accounting, through the Central Bank o f Samoa.

The audit reports under IAM-1 were received regularly in accordance with the legal agreement, and all audit opinions were unqualified.

FM Risk Analysis. A risk analysis exercise to identify significant hanc ia l management r isks associated with this project was conducted, and the risks assessments are highlighted below:

I ~ ~ e r e ~ t Countw Risks. The inherent country risks relate to the potential impact of the environment in which the project operates, is., Government rules and regulations. Overall, based on the following discussions, the inherent country risks are rated as moderate. The risk rating moves along a graded scale: high, substantial, moderate and low.

(a) ~ u ~ ~ e t ~ ~ system for timely compilation o f departmental and national budgets i s in place. Budgets are prepared for both financial and physical outcome parameters. Mechanisms are in place to link these budgets to the national economic strategy (SES); quarterly reporting o f actual reasults i s also in place; and recent legislation (e.g., the Public Financial Management Act) introduced significant changes in improving public fmancial accountability and transparency in the count^^. The Ministry o f Finance i s leading the implementation of these changes.

Govern~ent a ~ c o ~ n t i n g system follows the double-entry method, and maintains a moued-cash basis in accordance with the intemational accounting standards (though the Government expects to move to accrual basis in the future). The MOF’s 10-year old computerized accounting system will undergo an upgrade, according to the Government’s plan. Quarterly financial results are reported on a regular basis, in compliance with the Government laws and policy, The government accounting i s centralized at the Treasury Department o f the MOF, and the accounting system in some o f the line ministries (e.g,, MWTI) and departments are currently undergoing changes to improve the capacity. The plan i s to install a computerized accounting system in the line ministries and departments to establish direct communication with the MOF, as well as promote good governance and transparency in the system.

Auditing* The Chief (External) Auditor has the benefit o f institutional independence, as provided by the country’s constitution. The Audit Of fke i s a member of the INTOSM, the international professional body o f Supreme Audit Agencies. The audit scope includes financial compliance, and gradually extended to performance audits as well, Extensive pre-audit checks are exercised on all budget payments processed by the Finance Division o f the Treasury Department. Audit reports are publicly disclosed after these have been tabled at parliament. Regular training programs are arranged to upgrade skills available. The audits of public accounts are not completed on a timely fashion, with delays o f up to one year (e.g., the audit report for the fiscal year June 30, 2001 was submitted to the parlilament a year later). The Audit General has plans to reduce th is starting 2003 I

Risks inhere~t in s~ecific project entities related to FM risks inherent in entities involved actively in project implementation or management. 3ased on the existing FM capacity in the PMU and the needs o f IAM-2, the r isks inherent in specific project entities are moderate in both the Treasury Department (TD), Ministry of Works, Transport, and Infrastructure (MWTI) and the PMU. The TD and the MWTI are currently upgrading the financial accounting systems and intemal controls are strengthened. In the MWTI, there i s a need to strengthen the capacity and accounting ski l ls o f the staff. The o ld accounting policies require an evaluation to ensure internal controls are in place, The accounting ski l ls and capacity are better in both the TD and the PMU, The accounting systems are computerized, and the financial statements are produced regularly. Payment processing controls in the TD appear tight, with pre-audit o f a l l transactions by the Audit Office; and adherence to international accounting standards i s kept. The audit reports for the past years have been unqualified.

in her en^ risks specific to the proposed IAM-2 and the proposed action plan, Based on earlier discussions regarding inherent r isks and the project design features, the existing financial management arrangements will be enhanced and the following were agreed upon:

~ i t ~ d r a w a l A p p l i c a ~ j o ~ MAS). The current arrangement under IAM-1 will continue, as illustrated herein: (i) For replenishment o f the Special Account, a withdrawal application will be prepared monthly by the PMU (with supporting documents) and submitted to TD-Finance Division for verification, certification and signature before transmitting to IDA; and (ii) WA for reimbursement will be prepared by the PMU on a quarterly basis (with supporting documents such as SOE statements or FMRsj and sent to TD for verification, certification and signature prior to transmitting to IDA.

~inancia l Reaorts and A c c o ~ n ~ i n ~ Procedures. The PMU will adopt the same procedures used in preparing financial reports under IAM-1. Quarterly financial management reports will be prepared by the PMU and included the overall quarterly progress reports submitted by the P M U to both TD and IDA. The

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accounting procedures (discussed in detail in the assessment report of July 22-27,2003) currently used by the F W will continue in the proposed IAM-2. These procedures allow for minimum basic financial controls: (i) reconciliation o f disbursements recorded in project accounts with bank statement provided by TD to the Special Account; (ii) monitoring o f unspent balances against each procurement contracts; (iii) a check on serial numbering o f payment vouchers; (iv) comparison o f actual expenditure against budgeted amounts for each sub-component o f the Project, as well as for line item expenditures, is., goods, civil works, and consulting fees; and (v) monitoring o f physical progress o f project implementation.

Project Reporting Requirements, Monitoring and Evaluation Arrangements. These will include: (i) submission o f quarterly financial management reports; (ii) conduct bi-annual IDA Supervision missions; (iii) carry out a mid-term review (about two years later, after the date o f effectiveness o f the credit); and (iv) joint-preparation o f the implementation completion report by IDA and the Government within s ix months of the project’s closing date.

IDA will conduct bi-annual supervision mission and mid-term review (after two years from date o f effectiveness) with TD on the basis o f a report prepared by the P W , and this includes: (i) an assessment o f progress in the implementation o f key actions and performance indicators (see Annex 3); (ii) verification o f the continued validity o f the design assumptions in light o f implementation experience and the evolving environment; and (iii) identification of remedial actions that might prove necessary to achieve the objectives o f the Froject. Bank supervision mission,s including financial management will be conducted twice a year, Quarterly FMRs including mual audit reports will be submitted to IDA for review and comments,

The related covenants to the fmancial management systems are included in Section G o f this report, and described specifically as: The borrower^^ shall submit audit o f its project accounts witfiin six months after the end of each fiscal year; (ii) The B o ~ o w e r ~ ~ s h a l l fiunish quarterly financial management reports to IDA within 30 days after each quarter,

2. Audit Arrangements

A combined audit o f the k a n c i a l statements, Special Account and the financial management reports will be conducted under t a m s o f refmmce acceptable to IDA. An independent auditor will be appointed by June 30,2004 under terms of reference acceptable to IDA

3. Disbursement Arrangements

Funds Flow, At central level, the MOF will open one Special Account denominated in U S dollar currency for receiving funds from the Bank, and will set up a separate Project Account (GFA 99) for UM-2, which will be treated as a Bank Account, instead o f opening another account for the project in a commercial bank. Any payments will be charged to individual “child accounts’’ for each project component identified under the parent GPA 900 coded account with a separate GPA sub-account for the counterpart contribution from which taxes will be paid out. The Special Account will be opened at the Central Bank,

The GPA account will have an opening balance from the counterpart contribution to UM-2under implementing agencies’ budgets and h d s transferred from the Special Account (held with CBS), based on a payment request provided by the P W . The payments to third parties will be initiated by the Phrlu based on approved contracts. The MOF-TD will record all payments based on the illustration below:

- 56 -

Tfie detailed procedures follow:

(a) Project Component Manager (PCM) approves invoice submitted by consultant i supplier based on a signed contract and work progress

(b) Head of Implementing Agency certifies payment voucher prepared for approved consultant’s / supplier’s invoice

(c) PMU (Project Manager I Project Accommt) will ve r i9 payment voucher (with approved invoice and contract as supporting document) by stamping it with ‘approved for payment’ stamp (hcomplete payment voucher i s returned to WPCM for fiwther action)

(d) PMU (Project A c c o u n ~ t ~ records transaction in project accounting system and submits it to MOF (Finance division); a copy o f the payment voucher i s retained at PMU for follow up

(e) MOF - Finance division checks payment voucher and passes to Accounts division for processing o f cheque or telegraphic transfer (TT) out of the GPA account

(8 PMU receives all cheques and remittance advices o f telegraphic tmmfers from Finance division for updating the project accounting system

(g) PMU dispatches all cheques directly to consul~nts/supp~ers a) PMU requests monthly GPA account statements f iom Finance division - MOF for reconciliation and

preparation o f quarterly Financial Management Reports (FMb)

- 57 -

Withdrawal Applications (WAS), (i] For replenishment o f the Special Account, a withdrawal application will be prepared monthly by the P W (with supporting documents) and submitted to TI>-Finance Division for verification, certification and signature before transmitting to IDA; (ii) WA for reimbursement will be prepared by the PMU on a quarterly basis (with supporting documents such as SOE statements or FIVE&] and sent to TD for verification, certification and signature prior to transmitting to IDA.

Expenditure Category Works

Supenision Plan. The Bank‘s Financial Management Specialist will jo in the supervision team at least twice a year to ensure the financial safeguards are in place. The quarterly financial reports @MRs) and annual audit reports w i l l be reviewed and comments will be provided to the P W M O F .

Amount in USSmillion 7.34

Allocation of credit proceeds (Table C]

Services

Table C: Allocation of Credit Proceeds

4.26

Incremental Operating Costs

Goods

0.07

0.19

Training 0.10

Unallocated

Total Project Costs with 6ank

, Financing Percentage

0.74

12.80

local expenditures (ex-factory cost) and 90% o f local expenditures for other items

Total

p r o i r e d l oca~~y . 80% for foreign individual consultants, 75% for local f i nas and local individual consultants, and 67% for foreign f m s .

75% 100%

12.80

~-~ - 100% o f grant amount disbursed

Use of statements of expenditures (SOEs):

Similar to the current system used under W - 1 , withdrawals from the credit will be made using transaction-based disbursement procedures which include full documentation of expenses and SOEs, SOEs will be used for: (i) works costing less than US$600,000 equivalent per contract; (ii] goods under contracts costing less tfian ~S~50 ,000 equivalent eacfi; (iii) for consultants’ services contracts costing less than ~ S ~ l 0 0 , 0 0 0 in the case of fm, and less than US~50~000 or equivalent in case of individuals; (iv] training; and (v) incremental operating costs. The TDMOF i s planning to adopt the reporbbased disbursement system, and decision will be made as soon as the capacity o f the Prvlu to produce all the required FMRs are fully established.

- 58 -

Special account: The Central Bank of Samoa will open a Special Account in U S dollars for IAM-2, When withdrawals are not Report-based Disbursement the Special Account will have an "Authorized Allocation" o f USD 1, 200,000 (10 percent o f face value ofthe credit) however the "initial authorized allocation" will be USD 600,000 (5 percent o f face value) until the aggregate amount o f withdrawals from the credit account including the total m o u n t o f all outstanding special commitments entered into by IDA pursuant to Section 5.02 ofthe general conditions shall be equal to or exceed the equivalent o f SDR 1,800,000 (20 percent o f face value o f the credit). When withdrawals are Report-based Disbursements, the deposit into the Special Account wil be equal to the lesser o f : (a) the amount requested and (b) the amount which the association has determined based on the reports,

The current PMU staffing arrangement for fnancial management under I M - 1 will continue with the Project, with corresponding job descriptions. The Project accountant will supervise the financial accounting, prepare the F1MRs, assist in monitoring physical implemmation and v e r i w g FMRs. The accounts staff will process and verify p a p e n t requests against procurement contacts, monitor financial comitments and unspent balances against contracts, and will maintain the project fnancial accounting using the upgraded software package and conduct key reconciliations with TD, Le., bank reconciliation.

Agreement was reached during appraisal on the formats for FMRs and upgrading o f the acwunting software to be used, including the training o f accounting staff. These will a l l be completed by project effectiveness. Agreement on the terms o f reference for audit was also finalized during negotiations.

Retroactive Financing

In order to finance implementation activities that have been ongoing but not fully financed under the f i s t Phase, retroactive € i c i n g in an amount up to SDR ~ 5 ~ , ~ 0 0 (10 percent o f the Credit) will be provided. Payments made for consultant services and civil works under Component B, Road and Other Infrastructure and for consultant services under Component E Project Management, procured in accordance with the provisions above and expended after July 1,2003, shall be eligible for retroactive financing. This provision allows for a smooth transition o f implementation between the two phases o f the Progam.

- 59 -

Annex 7: Project Processing Schedule SAMOA Second Infrastructure Asset Management Project

Project Schedule Planned Actual

/Time taken to prepare the project (months) I 12 I 20 I

Negotiations

I First Bank mission ( i d e n ~ ~ ~ c a t ~ o n ~ I 0310 112002 I ~ 3 1 ~ 4 1 2 ~ ~ 2 I

06104120~3 1112712003 1 Appraisal mission departure I 051191'2003 I 0~130~2003 I

Planned Date of Wfectiveness 1013112003

Prepared by: Wil l iam D.O. Paterson

Preparation assistance: Saraswathi Sundaram, Chris D e Serio (Cost tables)

Bank staff who worked on the projec Name

Wil l iam D.O. Paterson Kavita Sethi Josephine Masanque Patricia Miranda Hung Kim Phung 3ehaad Nowroozi Bruce Harris Richard Leonard Hilarion 3 m e a u Christopher R. Bennett

included: Speciality

Task Team Leader, Lead Highway Engineer Senior Transport Economist Senior Financial ~ y s ~ i n a n c i a l Management Specialist

Senior Finance Officer (ti11 August 3 1,2003) Senior Financial Management Specialist Senior Social Scientist

Senior Finance Officer (from September 1,2003) Senior Transport Specialist

Legal Counsel

Frocmement specialist

- 60 -

Annex 8: Documents in the Project File* SAMOA: Second Infrastructure Asset Management Project

A. Froject Implementation Plan 1. 2, 3. 4. 5. 5. 7. 8, 9. 10. 1 1 I 13. 2003 14.

Land Acquisition and Resettlement Framework F e b m 27,2003 Social Assessment and Consultation Framework Study, April 2003 Enviromentd Assessment Report, August 2003 Apia Road Network and Traffic Management Studies Report, July 2003 Road Sector Plan, March 2003 West Coast Road - Design and Inception Report, April 2003 West Coast Road - Safety Audit, May 2003 West Coast Road Feasibility o f Alternative Routes Report, September 2003 Assessment o f the Land Registration and Titling in Samoa (with Addendum), June 2003 Borrower‘s Draft Project Implementation Plan, September 2003 Transport Sector Review (Report and Technical Appendicies), June 2003 Land Acquisition And Resettlement Action Plan for the Widening o f Vaitele Street, November 29,

Road Feasibility Study for Fagaloa Elay. Supplemental Report, September 2003.

0. 0ank Staff Assessments 1. 2.

Financial Management Assessment July 2003 Assessment o f Agency’s Capacity to Implement Project Procurement (December 2003)

C. Other

*Including electronic files

Annex 9: Statement of Loans and Credits SAMOA: Second Infrastructure Asset Management Project

~ 6 * ~ ~ g * 2 ~ ~ 3 Difference between expected

and actual disbursements' Original Amount in US$ Millions

ProjedlD FY Purpose l3RD IDA Cancel. Undisb. On3 Frm Rev'd PO75739 2003 Samoa - TeBcommunications 8 Post Reion 0.00 4.48 0.00 4.77 0.00 0.00 PoB492B 2001 WS-Health Sector Management Project 0.00 5.00 0.00 4.75 206 0.00

PO52293 I999 WSlnfrast, Mgnt (APL) 0,00 44.40 0.00 1 9 245 0,Q4

Total: 0.00 23.33 4.51 0.94 0.00 11,49

- 62 *

SAMOA STATEMENT OF IFC's

Held and Disbursed Portfolio June 30 - 2003

In Millions U S Dollars

Committed Disbursed IFC IFC

FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic mnn PIIF N B S 0.00 0.00 0.10 0.00 0.00 0.00 0.10 0.00 e"""

0 1995

PIIF Wilex Cocoa 0.27 0.00 0.00 0.00 0.27 0.00 0.00 0.00 PIIF MedCen Sam0 050 0.00 0.00 0.00 0.50 0.00 0.00 0.00

Total Portfolio: 0,77 0.00 0.10 0.00 0.77 0.00 0.10 0.00

Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic 2002 PIIF SamoaVCF 0.00 0.00 0.40 0.00

Total Pending Commitment: 0.00 0.00 0.40 0.00

- 63 *

Annex 10: Country at a Glance SAMOA: Second Infrastructure Asset Management Project

, GNI Gross per primary , "a nrollment

,

POVERTY and SOCIAL

2002 Population, mid-year (millions1 GNl per capita (Atlas method, US'$) GNl (Atlas method, US$ billrbns) Average annual growth, 199ft.02

Population (%I Labor force (74)

Most recent eatlmate (latest year available, 1996-021 Poverty (96 o f ~ ~ u l a t i ~ below national pow& line) Urban population (74 of total po~u la~ io~) Life expectancy at birth (years) Infant morIality (per f,OOO live births) Child malnutrition (% ofcbMren under 5) Access to an improved water sourca ('74 of populetion) Illiteracy (99 of ~pulation age Is+) Gross primary enrollment (?A ofschool-age ~opula~jon)

Male Female

KEY ECONOMlC RATIOS and LONG-TERM TRENDS 1982

GDP (US$ billions) Gross domestic investmentlGDP Exports of goods and sewviceslGDP Gross domestic savingslGDP Gmss national savingdGDP

Current account baiance/GDP Interast paymenWGDP Total debtlGDP Total debt selvicelexports Present value of debYGDP Present value of debtlexports

10.4

Samoa

0.18 7,420 0.25

1 .0

23 69 l a 99 I

103 IO5 101

1992

0.12

-44.5 1.1

100.0 5.5

2001

6.2

East Asia B Pacific

1,838 950

1,740

1 .0 1.2

3a 69 33 15 76 13

105 106

1 oa

2001

0.24

0.5 83.6

58.1

2002

1.3

Lower- middle- income

2,411 7,390 3,352

1 .0 1.2

49 69 30 11

13 171 111 110

a i

2002

0.26

0.5

200246

0.0

Development diamond'

Lie expedancy

T

Access to improved water source

-Samoa - - ~ o ~ r - m j d d ~ ~ n c o m e group

Economic ratios'

Trade

Investment Domestic savings

Indebtedness

Samoa - Lower-middle-income group GDP per capita 3 2 5 0 I

STRUCTURE of the ECONOMY

(% of GDP) Agriwlture Industry

Services

Private consumption General govemment consumption imwrts of goods and services

Manufacturing

(avemge a n n u ~ ~ g ~ ~ ~ Agriculture Industry

Services

Private consumption General govemment consumption Gross domestic investment lmports of goods and sewices

Manufacturing

1982

1982-92

I992

1992-02

-0.1 1.5

7.3 -0.8

9,l

2001

2001

-4.6 11,l 73.4 7 3

2002

2002

/Growth of investment and GDP (%I /bo T

1 Orowth of exports and imports (x) 1

* The diamonds show four key indicators in the country (in bold) compared with ib rncomkQroup average, If data are missing, h e diamond will be incomplete,

- 6 4 -

PRICES and GOVERNMENT FINANCE

Domestic prices (96 change) Consumer prices Implicit GDP deflator

Government finance (96 of GDP, includes current grants) Current revenue Current budget balance Overall surplusldeficit

TRADE

(US$ miilions) Total exports (fob)

n.a, Coconut oil Manufactures

Total imports @if) Food Fuel and energy capital goods

Export price index (199S=lOO)

Terms of trade (1995=1OO) import price index (f005=100)

3AMNCE of PAYMENTS

(US$ miliions) Exports of goods and selvices Imports of goods and services Resource balance

Netinwme Net current transfers

Current account balance

Financing items (net) Changa? in net reserves

Memo: Reserves induding gold (US$ millions) Conversion rate (DEC, local/US$)

WERNAL DEET and RESOURCE FLOWS

(US$ miiions) Total debt outstanding and disbursed

l8RD IDA

Total debt service IERD IDA

Composition of net resource flows Official grants Official creditors Frivate creditors Foreign direct investment Portfolio equity

World 3ank prcgrem Commitments Disbunements Principal repayments Net flows Interest payments Net transfers

ma2

18.2

1982

1932

22 58

-36 -2 32

-1

1.2

19a2

70 0 9

4 0 0

12 6 -1 0 0

0 1 0 1 0 1

1992

8.9

51.8 13.1

-18.2

1992

6

0

90

1992

43 133 -97

4 35

-52

39 13

2.5

1992

118 0

32

5 0 0

22 9 0 0 0

0 7 0 7 0 7

2001

3.3

2001

2001

3.5

200i

204 0

48

7 0 1

20 0 0 I 0

.0 ‘3 1 2 0 2

2002

2.5

2002

2002

3 4

2002

Inflation I%) ‘4 T

Export and imporl levels (US$ mill.)

Note: I nrs male was QMUW imm me ueveiopment tmnomics central aaraoase, tvzvuy

- 65 -

Current account balance to GDP (#) l3

Composition of 2001 debt (US$ mill.)

D 31

A - t em 3 - IDA D - Other multilateral F - Privata c - 1MF

E - Bilateral

G - Shorl-tam

Additional Annex 11 : land Acquisition and Resettlement Framework Summary SAMOA Second Infrastructure Asset Management Project

Introduction:

It i s not anticipated that there will be significant land acquisition andor resettlement under the project, Nonetheless, given the fact that a number o f activities under the project have not yet been fully defmed, it was considered prudent to design a LARF to cover the possibility that some land acquisition or resettlement might occur under the project and to ensure that any such activities are carried out in accordance with IDA policy and procedures. The framework establishes parameters for the conduci o f land acquisition and resettlement o f Displaced Persons @Ps),

Land Tenure in Samoa

Land in Samoa i s o f three types: customary (approximately 81 percent), freehold (12 percent), and public lands (7 percent), Customary land i s protected by the Constitution for the “customs and usages” of the people o f Samoa, Such land i s usually held in the name o f the ~ a t a ~ or head o f the family who determines the distribution o f family land among members of the family. Most Samoans have access to customary land.

Customary land can be alienated in only two ways-by lease to a person determined by the matai o f the family, and through the Taking of Lands Act (19644) for a “public purpose”, Most customary land i s not formally registered or surveyed, and the boundaries are known to the family from years o f use and traditional knowledge. Where there are disputes concerning ownership or use o f customary Ian4 they are referred to the Lmds and Titles Court for adjudication.

Freehold land i s land registered under a Deeds registration system established prior to Independence in 1962, Freehold land i s situated mainly in the Apia urban area and adjacent areas. The limited amount o f freehold land has resulted in a robust real estate market in which land prices have increased rapidly over the past several decades. Residence on freehold land i s not subject to the authority o f the chiefs and orators o f a village, even if located within village boundaries.

Public (or Government) land i s publicly held land which i s administered by a Land Board established by the Lands Surveys and Environment Act (1989). The amount o f Public Land has been pdually diminishing as Government has occas io~ l l y released several hundreds o f acres at a b e for sale to the general public, such as when a village indicates i t no longer has sufficient land for cultivation or to cater for a growing village population.

Legal and Institutional Framework

The Constitution o f Samoa staies in Clause 14 that:

No proper& shal~ be taken possession of c o ~ p u ~ s o r i ~ and no right over interest in any property shall be acquired compulsori~ except under the law which of itself, or when read with any other law

~ ~ ~ u ~ r e ~ the payment within a reasonable time of adeq~ate compensat~on;

Gives the person right of access to the ~ ~ p r e ~ e Court regarding the a ~ o ~ n t of pensati at ion;

Gives the right of appeal to the Court o~App~al .

- 66 -

The focal piece of legislation concerning land acquisition i s the Taking of Lands Act (1954) which states that “every person h a ~ i n g an estate or interes~ in any land taken under this Act for any purpose, or ~ n j u r ~ o u s ~ afected thereby or suferjng any d u m a g ~ ~ o m the exercise of any of t h e ~ o ~ e r s given by this Act shall be ent~~led to full andjust compen~ation..~or the s a m e ~ o m the ~ j ~ ~ s ~ e r as soon as reasonably ~ossible a$er any person becomes e n ~ t l e ~ to com~ensa~on under this Act; the ~ i n ~ s t e r shall ofer such sum as he t ~ i n ~ ~ t ~ ” If the owner does not accept the offer from Government, the Supreme Court i s to determine the compensation payable and the decision may be appealed to the Court o f Appeal, Sub-section 37 o f the Act further stipulates that

. ..the amobunt of compensa~ion [will be]. . . taken to be that a ~ o b u n ~ which the land, sold on the open ~ a r ~ e t by a willing seller on the specific date might realize.

The valuation o f freehold land presents few problems, as an active m r k e t exists and many comparators are generally available, even though the Government of Samoa does not undertake regular valuations o f freehold land, Valuation of customary land i s rare and present difficulties since i t cannot be sold or otherwise alienated other than by lease, and such land i s not subject to rates or land tax payments, although “ m k e t value” can generally be taken as the market value o f comparable freehold land in the same area.

h y land or other assets acquired under activities resulting from implementation o f UM-2 will be replaced at “replacement value” rather than market value, though market value will clearly be an important component o f the calculus.

Traditional Methods of Negotiation and Grievance ~rocedures

There is a long tradition of negotiation and consensus building in traditional Samoan life. There i s also a strong sense o f Tautua or service to the country or one’s village and family. Frequently improvements are made which require contribution of land or other assets, and often this i s done willingly and without compensation, as long as the process o f negotiation i s followed. However, sometimes negotiation and consensus lead to compensation, and when this occurs it i s not unusual for payments to be made to certain individuals and also to the Alii and ~ a ~ u l e (councils o f matrai) o f a village as part o f the traditional gifts made by those who approach a village or community with a request to use a village’s lands or other resources.

Under the project clear guidelines will be established for the expression o f grievances. Currently when there are grievances, the most frequent avenue for expressing them i s direct approaches to Government, usually to the relevant Minister o f State directly responsible for the activity. It will be important under the project to establish a means by which DPs can express grievances in the f i s t instance to the PMU, which will then attempt to resolve them. As noted above, Samoan law provides for a f o d appeal process to the Supreme Court, and Court of Appeals should individuals or families feel the need to use it, though this i s infrequent. The first step i s to make the proper initial contact, in which case negotiation and agreement by consensus will provide the best avenue to iron out and resolve any grievances.

Tn the event that land i s contributed voluntarily (as Tabutuaj steps will be taken to ensure that such contributions are, indeed, voluntary, and that no undue pressure has been exercised to compel such contributions.

Given the nature o f traditional Samoan practices with regard to land and land issues, and the legal h e w o r k established by Samoan law, the following approach will be used under the project to deal with land acquisition and resettlement issues.

- 67 -

Direct and early approaches will be made to villages and individuals likely to be affected by activities under the project. Clear information should be provided concerning the rights and entitlements o f DPs to ensure that all those who are due compensation are aware o f their rights and entitlements. Negotiation and co~ensus -b~ ld ing can be carried out on the basis o f that information.

Information about grievance procedures will be supplied to all potential DPs. The f i t avenue o f grievance will be through the PMU, with the understanding that the provisions o f Samoan law are available to those who desire to use them,

Valuation o f land and other assets will be at replacement value.

Entitlements will be determined in accordance with the Entitlement Framework. A fidl copy of the Entitlement Matrix is in the LARF document which i s available in project fdes,

Entitlement Framework

Following i s a summary o f the main points ofthe Entitlement Framework

DPs losinp more than 20 percent o f h e i r productive, or in cases when the remaining assets are not economically viable, are entitled to:

a Full compensation at replacement cost o f the e n t k asset or at dhect landasset replacement.

a Rehabilitation assistance that allows them to enhance or at least maintain their standard o f living.

DPs losinp less than 20 vercent o f their productive assets and where the remaining assets remain viable for continued use are entitled to cash compensation at replacement cost for the affected asset.

A ~ i c ~ l ~ r a l land will be replaced by:

8 Land o f equal market value or bushess potential, whkh i s acceptable to the PAP or

Full compensation at replacement cost where land i s not available.

C o ~ ~ e r c j a l ~ r e ~ j ~ e n ~ a l or other real property will be replaced by:

Land o f equal market value or business potential which i s acceptable to the PAP; or

Full compensation at current market value, where suitable replacement land i s not available or at the informed request o f the PAP.

Replacement o f damaged or lost crops will be based on full market value for one year and will be paid in cash.

DPs whose land is temporarily taken will be compensated at full replacement cost for their net loss o f income andlor damaged assets, including a reasonable amount for the opportunity cosfls.

Appropriate transfer and subsistence allowances will be given during the transition phase as part o f the rehabilitation assistance package to allow DPs to enhance or at least maintain their standards of living.

- 68 -

8 Verification o f titles to land and any payments (e.g. tax or stamp duty on conveyance) shall be undertaken before land replacement or cash compensation i s made.

For DPs losing ~ e s ~ d e n t ~ a l land and ~ t r ~ c t u r e ~

e The provision o f replacement residential land (house site and garden) o f equivalent size, satisfactory to the PAP and cash compensation reflecting full replacement cost o f the structures, without depreciation.

If the PAF wishes and the portion o f the land to be lost represents 20 percent or less o f the total area o f the residential land area; and the remaining i s s t i l l a viable residential lot, cash compensation, at fdl replacement (market value), will be provided to the PAP.

If after acquisition, the residential land andor structure i s h u E c i e n t to rebuild the residential structure lost, then at the request o f the PAP the entire residential land and structure will be acquired at hll replacement cost, without depreciation.

Tenants who have leased a house for residential purposes wiU be provided with a cash grant of thee months rental fee at the prevailing market rate in the area and will be assisted in identifying alternative accommodation.

e

8

For DPs Losing A ~ i r ~ l t ~ r a l Lands and orlother Crops

8 The general mechanism for compensation o f lost agricultural land will be through provision o f "land for land" arrangements o f equal productive capacity, satisfactory to the PAP. However, if the PAP so wishes and the portion of the land to be lost represents 20 percent or less o f the total area o f the landholding, and the remaining land i s s t i l l a viable economic holding, cash compensation, at full replacement cost (market value), will be provided to the PAP.

If more than 20 percent o f a person's agricultural land i s acquired and the remaining holding i s not viable, then the Project will acquire the entire landholding and provide compensation o f the acquired land at direct land replacement value.

DPs will be compensated for the loss o f standing crops and fruit or industrial trees at full (current) market price,

DPs whose land i s temporarily taken by the works under the Project will be compensated for their loss of income, standing crops, and for the cost o f soil restoration and damaged infrastructure, including a reasonable amount for opportunity cost's.

DPs who will lose their income will be provided opportunities for alternative livelihood through ski l ls and entrepreneurship training, job matching or business development assistance.

8

8

8

e

For DPs Losing a 3 ~ s i n ~ ~ s

8 The provision o f an alternative business site o f equal size and accessibility to customers, satisfactory to the PAP.

Cash compensation for lost business structure reflecting full replacement cost o f the structures, without depreciation.

Cash compensation for the loss o f income and opportunity during the transition period, e

- 69 -

Cost o f money in case of delays of one year or more in releasing papent.

Other Cases

In cases where community infrastructure such as schools churches, health centers, water sources, roads or electrical and water supply connections are damaged, the Project will ensure that these are restored or repaired as the case may be, at no cost to the c o m ~ t y .

A public awareness campaign through local television and radio stations about the proposed project could be launched prior to the project implementation which would provide notice to the DFs o f the land areas affected by the project and allowing all DFs the opporhmity to be involved in any negotiations for compensation.

- 70 -

Additional Annex 12 Social Assessment Summary SAMOA Second Infrastructure Asset Management Project

1. INTRODUCTION:

A social assessment was canied out for the project with the following objectives:

8

0

8

0

8

2.

Assess the extent the recm"&tions made in the SA for IAM-1 have been implemented and the success and failure o f those arrangements in improving social outcomes.

Identify emerging issues downstream that would impact on the sustainability o f the project.

Suggest changes or improvements in the arrangements used in iAM-1 to improve involvement o f stakeholders (especially intended beneficiaries) and to improve the extent to which potentially excluded groups are included in decision making and project benefits.

Assess the outcomes and experience ofthe reorganization exercise in the MOW, both for application to that d s t r y and to other ministries to be reorganized in the future.

Conduct baseline social assessment, stakeholder analysis and SIA, including design o f a c o m m ~ q consultation framework, covering the new ~ a s ~ a c t i ~ t i e s proposed for IAM-2.

LESSONS PROM IAM-1

Lessons from the Social Assessment for IAM-1

The examhation of the SA for IAM-1 highlighted the need for:

~~~~o~~~ datu, particularly with regard to gender and the vulnerable. Data should be disaggregated by sex, age, and socio-economic variables to show consultation has taken place.

~ ~ ~ t ~ ~ ~ u ~ ~ l j ~ . Measures are needed to ensure s ~ t a i n e ~ m e a n i n ~ l c o m m ~ t y participation. This could include expansion o f the DLSE program o f training community participation practitioners who understand and are cormnitted to community participatory strategies, as well as refining systems for government-village consultation and inter-village consultation.

C o ~ ~ ~ ~ j ~ Access to ~ ~ f ~ r ~ u ~ ~ o ~ and Datu. W - 1 activities focused on national- and global-level information dissemination strategies. IAM-2 should focus on local-level systems for education and information exchange, such as village resource rooms (at school and korniti house) to house project materials and ensure communi9 access to information.

F a ~ # ~ e r ~ ~ ~ s . IAM- 1 organizational system have developed good partnerships. Ministries and departments have developed the habit o f working together through the meetings o f the Steering Committee and through PMU activities. These strong national-level relationships should be more hl ly integrated with the local-level to support integrated local-level planning.

~ y a l ~ u # ~ ~ ~ . IAM-1 monitoring o f social issues was weak. Evaluation should be an on-going and progressive activity through the project cycle, including strategies to e n m community groups participate in evaluating the goals they have helped set.

~ ~ l ~ j - ~ e c ~ ~ r u l C o ~ ~ ~ ~ j ~ Social ~ ~ ~ e ~ ~ ~ e ~ # ~ . SLAs are often combined with Ems, but care i s required to ensure that the social, economic and political implications o f project activities are well documented and taken into account in project decisions.

-71 -

Lessons of the Redundancy Exercise in MOW Lessons learnt f iom the restructuring of the MOW include:

e

e

e

e

e

e

e

3.

Strategies to ensure a smooth transition, and that the Ministry retains the core expertise they need to hlfill their core hct ions, should be in place prior to the restructuring. These include decisions on salaries, benefits, and other incentives relating to career pathways.

Information and discussions on how decisions about the core strengths needed and functions to be divested are made should be more transparent and open to public debate.

The private business option ogered by the MOW to its employees i s generous, but giving former employees who form a business preference in contracting poses ethical and perhaps legal problems. Th is needs to be considered carefully.

Need to reduce the length o f the negotiating process leading up to the redundancy packages.

The Small Business Training courses are critical, as shown by the number opting to start small businesses, Th is should be deepened and expanded.

The possibility o f some form o f support system for those taking the redundancy package, for a one year period. T h i s would include assistance in getting a job. Also, the importance o f monitoring the progress o f this group with a view to improving subsequent schemes.

The stipulation that those taking the redundancy package cannot work for the government for 3 years needs reconsideration, particularly for those on very low rates o f redundancy.

LAM-2 SOCIAL ASSESSMENT

Both a General Social Assessment (GSA] and a Detailed Social Assessment @SA) were carried out for fAM-2. The Mow road upgrading components for IAM-2 were used as case study material for both the GSA and DSA. Materials from the IAM-1 Social Framework were the basis for the GSA Framework. For the DSA one o f the proposed three rural isolated roads for upgrading in IAM-2--the S a u n i a ~ a n u n u Road extension-was the pilot c o n m ~ t y .

General Social Assessment and Consultation Framework LAM-2

The General Social Assessment (GSA] consists o f identification and analysis o f key stakeholders and their interests, a project consultation fi-amework, participation measures, a monitoring and evaluation framework, and a project h e w o r k for public relations and information.

~ t a ~ ~ ~ l d ~ ~ ~ d ~ n ~ ~ c a t ~ ~ n and analysis

The GSA identified 44 key stakeholders and presents a stakeholder matrix with key interests o f each group identified. In summary, the key beneficiaries for each project component are:

The primary beneficiaries o f the airport improvements are the passengers, greeters, local and foreign airlines, air cargo shippers and concessionaries.

The primary beneficiaries o f the bridge and West Coast and isolated roads, the pedestrian facilities, and the road safety program include the traveling public, agricultural and industrial producers, consumers, and local communities where the infrastructure investments and safety programs are implemented.

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4 The beneficiaries o f the coastal zone inhstructwe strategy and the disaster management strategies are primarily the communities where these projects are carried out and the national govemment, which hopes to protect its roads and other assets in those commi t i es .

It i s too early to tell who will be the primary beneficiaries o f the institutional strengthening or restructuring o f the Department o f Lands, Survey and Environment (DLSE).

Social ~~~~c~~ O J W - 2

The social impacts o f IAM-2 roading upgrades are expected to be strongly positive, including:

increased safety and convenience o f public bridges and roads,

more efficient and cost effective delivery o f govemment services.

improved natural resource use and disaster management.

enhanced cooperation between govemment and communities.

More widespread participation by gender and other vulnerable groups in consultations.

Access to project information and data on project activities through resource rooms and specially packaged project data (maps, pamphlets, booklets and charts).

Youth jobs and job training ski l ls through participation in project and training in maintaining infrastructure.

School children have access to information and data about their village through repacking o f project materials

Some potential negative social impacts include:

There will be some local and small-scale acquisition o f land for bridge and associated road improvements, and these are to be compensated appropriately under Samoan law.

Women's activities in informal tradeiexchange o f goods may be affected as better roads encourage people to shop in Apia and there i s reduced room for kerbside shops. The resulting loss o f income will affect sole-income families and women-headed households especially.

Land taken for roading may increase pressure on land, which in turn will affect women and gir ls and youth access to land for production for home use, sale and exchange.

Road widening and new road construction can be expected to generate more traffic accidents, including more accidents involving pedestrians.

There i s the r isk of inadequate consultation, especially between those who would implement the procedures and those who are the intended targets o f the procedures.

These risks can be " i z e d by fully invdving all stakeholders at the start of the project, mid-way in implementation and again at the end o f the project, to determine such things as:

8 Perceptions of the eEectiveness o f the project, and how these are playing out over t h e , including whether the benefits of the development are being widely spread.

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Any unintended effects o f the project and strategies to addresslcapitalize on these.

Education, training and other support services which are needed at different stages.

Project ~ r a m ~ o r k for C o m m ~ n ~ ~ C o n ~ ~ l t u ~ i o n and partic~ation

A Community Consultation Framework lists tasks which need to be done during initial consultations, ongoing consultations, and consultations on completion. A matrix i s presented listing which agencies should be involved in each o f these steps and in decisionmaking at each step, including implementing agency, steering committee, government or NGO groups, and community institutions, and stakeholders.

Methods to be used to ensure ongoing participation include suweys (e.g., time use and case study), workshops about the proposed project at national and local-level, focus group discussions with relevant stakeholders, local community discussions at both central-level and at local-level to discuss local concerns and priorities and particular project design features relating to specific project sites, consultations with and between national-level NGOs and local NGOs with an interest in specific aspects o f the project, and informal interviews and participatory observation

A mechanism which has proven useful in other projects in Samoa i s the Village Management Team (VMT). A VMT should be established at village level with no more than ten members, composition to include representatives from women’s groups (2); youth (2). Duties o f the VIdT would include:

Being the liaison point for project team with villagehillage groups and stakeholders, including information on evaluation and monitoring.

Responsibility for information dissemination for the project,

Be the local troubleshooter for the project, predicting needs and alerting to unintended outcomes.

Making decisions on the project, through consultation with village groups concerned.

Responsibility for managing the maintenance and operation o f the asset in good condition.

Reporting to the Village Fono on project progress.

~ o ~ j t o ~ n g and ~ u l ~ ~ t i o n of ~ c ~ i ~ e ~ e n t ofproject objectives.

Key groups in ongoing monitoring and evaluation include:

The Steering C o ~ ~ j t t e ~ . The major official stakeholders are represented on the Steering Committee. I t i s responsible for seeing that an agreed process for in€orming the public and for consulting with the other major stakeholders i s carried out.

The PMU through the Steering Committee is responsible for coordinating and keeping track o f the on-going monitoring and evaluation o f social assessment factors.

YMT will oversee and guide the levels o f participation, liaise with the Project team, whose role it will be to provide training in monitoring and evaluation, Together, these groups will firm up procedures for evaluation including the review o f the potential use o f participatory impact assessment (PIA).

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Project ~ r a ~ ~ o r ~ ~ o r ~~~1~~ ~ e l a ~ i o n s and ~ n f o r ~ u ~ ~ ~ ~

Official idormation wil l be available to the public fiom the following sources:

e World Bank offices and document libraries in Washington, DC, and on World Bank's world wide web site,

National offices, document libraries, and web sites of bilateral donors (as AusAID and NZODA).

Offices in Apia o f the High Commissioners o f bilateral donor countries,

Project Management Unit office in Apia.

Office o f the Ministry o f Foreign Affairs, Government of Samoa, Apia,

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Policies and Procedures to Redress ~ t ~ ~ ~ ~ l d ~ r Grievances

In most cases, stakeholder grievances concerning Program or Project-level issues should be presented in writing to the head o f the P W , who will be responsible for investigating the matter and resolving it if possible, The head o f the FMU must report all such grievances and their resolution promptly and in writing to the Project Steering Committee, which will satisfy itself that the matter i s handed appropriately Committee for investigation and resolution.

Stakeholder grievances concerning component-level issues should be presented to the office o f the Secretary or Director o f the government department heading that component. That Secretary or Director must report all such grievances and their resolution in writing to the P W , which will satisfy itself that the matter i s handed appropriately,

Allegations o f conuption in the project, whether arising in Samoa or ovaseas, should be directed to the Office of the Attorney General in Samoa or in the counby where the alleged corruption has o c w e 4 as well as to the Project Team Leader at the World Bank.

Detailed Social Assessment @SA) and Framework for Participatory Consultation

The proposed Sauniatu RoadiManunu extension was the case study used for the Detailed Social Assessment. The s!xategy employed was what could be called a "second swath" strategy of: (i) consulting women through the women's committees (village and church); (ii] talking mainly but not only with women in their workplacehome setting; and (iii] combining techniques o f survey, participatory observation and iniiomal interviews. This approach was taken because a multi-criterion feasibility study for this road upgrading had been carried out in December 2002. Of the 15 interviews carried out (groups and individuals) all the males had been notified and participated, but none o f the females had been notified and only one o f the females h e w the consultation had taken place. This "alternative swaW o f interviews collected the views o f a group not consulted.

A baseline profile was developed using demographic data, Education data, Agricultural Census, M in i s t r y o f Women's Affairs interviews, Mormon Relief Women's Committee, CIMs data and the &ai3 report for Sauniatu Road from the Feasibility Study (MOW). The Basic Social Profile provides information on which groups o f stakeholders should be consulted, including likely vulnerable groups. A draft question schedule was prepared with questions on household composition, income sources, role of women, access to

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resources and production systems and marketing activities, local tenure arrangements and use o f c o m u n i t y and natural resources ,

The DSA presents a stakeholder matrix which lists the key stakeholders with their interests in relation to the road upgrading component and the likely impact o f the component on these interests. Listed also i s stakeholder capacity and interest in participating in the proposed project by decision-making, planning, implementation, supervision and evaluation, and m e a s ~ e ~ a v e n u e ~ for consultation which could support th is participation.

Generally speaking, as a result o f the poor standard o f the ~ a u n i a ~ a n u n u road, inland communities particularly, are extremely vulnerable in the following ways:

Economic isolation (agricultural sales, jobs in Apia) hence vulnerable to cash poverty, impacts on food semrityfquality of life, and on community assets such as school equipment,

Social isolation from coastal village activitiesfchwch fellowship.

Constraints in access to health care, medicines, and education,

Political isolation, though males and matai more likely to be hfiormed o f meetings, etc.

Information and comunicat ion isolation (only one telephone along the whole road, no access to television).

The overwhelming number o f views about the proposed road upgrading were strongly positive. h upgraded road would improve quality of l i fe through increasing agriculture and employment options for families (especially the youth), opening up social and recreational options, and improve access to schooling (for teachers and pupils), health care and the new sports field, The opening of inland areas would encourage families to build homes and reside there (rather than the present plantation shelters) so reducing over-crowding in Saoluafata as well as making use o f the land.

Compensation for land taken was not an issue with the group living along the roadsides, the attitude being, "we will gladly give the land to get a good ma&', nor was maintenance an issue. Village Road Committees already exist, and their role could be expanded easily.

Some negative impacts warranting h t h e r attention include:

e Sometimes after the euphoria o f getting the asset, people may rethink the idea o f compensation, Land compensation issues should be well negotiated before work begins.

One respondent said the land she, her husband, and family worked was her brothers' land and they might lose some of it if access improved and his children decided to farm

Safety was not seen to be an issue-the Pulenuu said they would deal with this aspect, and the teachers said they already taught road safety rules.

Informal trading and exchanges may reduce, as a result o f people taking goods directly to Saoluafata or Apia markets, Th is will aRect women in particular.

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Additional Annex 9 3 Environmental Assessment Summary SAMOA Second Infrastructure Asset Management Project

Introduction

1. An Environmental Assessment (EA) was conducted for IAM-2. The initial report was endorsed and publicly disclosed on February 26, 2003 and the final report o f September 2003 was endorsed and disclosed on November 12,2003 The purpose o f the Study was to:

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Identify the environmental issues associated with the project;

Indicate any adverse environmental impacts o f proposed activities;

Assess the efficacy o f the existing environment management hmework, and subproject specific environmental assessment procedures;

Suggest measures to strengthen and lor enhance existing consultative, legal, and regulatory procedures to meet the requirements o f TAM-2;

Determine the need for M e r in-depth reviews and environmental mitigation plans under the project; and

Assist the Department o f Lands, Survey, and Environment MNXE to f d k e and disseminate the EA for LAM-2.

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Environmental Procedures Under IAM-1

2. required some refinement, e,g.:

(a)

An examination of the environmental procedures under W - 1 revealed several areas which

the EA procedures that were established under the IAM-1 project appear to have been implemented successfully and with some refinerrent and adjustment will provide the basis for sound mvironmental management under the new project;

there i s a need to formally enact the drafi Regulations over the course of the L!,.M-2 project so that the improvements in EA procedures and standards brought about under the project will be sustainable after project completion;

there i s a need to consider the present compliance monitoring regime particularly in relation to the m e o f the GIS developed under IAM- 1 and the design of an improved feedback management system to assist in the incorporation o f design and site mitigations into €ha1 design and operation of road and coastal infrastructure sub-projects;

the completion and implementation of the interim Codes o f E n ~ m e n t a l Practice (COEPs) and additional training to institutionalize the system should be an objective of W-2; and

there may be a need for MOW to cany out further institutional strengthening on h e implementation of the guidelines that have arisen from the Coastal Infrastructure Management Strategy (CIMS).

(b)

(e>

(d)

(e)

Procedures to be Applied Under W - 2

3. routine smaller projects with m i n i m 1 environmental impacts. The COEP was adopted by the then Public

It i s proposed under M - 2 that the set o f Interim COEPs developed for DIM-1 be applied for

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Works Department and Department o f Lands, Survey and Environment through a Memorandm o f Agreement dated January 3 1,2002, and are specified in contract documents as the required operating procedures for environmental practices in all civil works undertaken the MOW,

Project Component and Sub- Components

Road Sector Works New Road ConStructi~n @AM-2) These include the Apia By-Pass , the West Coast Road which are subject to FS and will require at least an EMP under World Bank Procedures. R d Upgrading or Minor Widening (LQFVI-

4. When the scope of the project cannot be handled by implementation of a COEF a sub-project with some adverse environmental impacts (is., a Categov 3 project) should be the subject of an Environmental Management f lan (EMF) which can stand on its own or be an integral part o f the Project Implementation Plan (BPIF). The EMP will not be c o n k e d to just on-site effects, but should also include the effect o f off-site activities, for example trucking routes, sediment outwash, traEc diversion and spoil dumps. The exact nature o f the mitigation measures will depend on the location o f the site relative to potentially sensitive settings {e.g., coastal fiinges, f&g corridors and village comunities). Tfie EMP should be initially developed by the proponent and then ratified by the P l e g and Uhan Management Agency (PUMA). It would then need to be agreed to by the Project Manager and the site contractor(s).

Key Environmental Issues

Broad range of potentially sensitive issues such as ecological, social, hydrological, visual 62 agricultural

propaty hntage acquisitions

5. Key areas in which this i s likely to be necessary under LAM-2 are outlined below.

Coastal h b s t m e t u r e IAM-2 (see Note 1) Recreational, visual, access and lagoon ecological values

B (mjority of works) C (very minor works)

&vimnmental Category Of Project

Sub-Component

3

Road Rehabilitation and Periodic h.laintenance @AM-2)

Operating procedures Inkrim COEP's have been working and will be fmdised under the

B

I project. I

Bridge Replacements (KV-2) I Rivedstream values and road I B

Note 1: Projects that have a classification o f 3 in t e r m oftfie World Bank Operational Policy 4.01 may s t i l l require an EM under the draft EL4 Regulations, This i s likely to be the case for most seawall and coastaf defence systems,

6, The draft EL4 Regulations require proponents to consult with and keep informed any local communities affected by the sub-projects. The && EL4 Regulations emphasize early communication between the proponent and MNRE to ensure that procedures are streamlined, The Regulations also require MNRE to prepare and publish guidelines on EM procedures to proponents.

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Because the draft EM Regulations have not yet been enacted by Cabinet, a number o f features in the Regulations cannot realistically be adopted (e.g. Ministerial approvals, functions o f the Environment Board, and application of penalties), For the purposes of the L4M Project, suitable alternative delegations for these aspects have been adopted that keep the actions within the M". The new environmental laws the Flanning and Urban Management Bill does not contemplate the adoption o f any regulations to support the new law so the previous interim Regulations would conhue to apply.

7, management as follows:

Two areas o f monitoring will need to better implemented under IAM-2 in support o f environmental

(a) Monitoring o f sub-projects to ensure that the scope o f works does not differ from the scope that was approved under the draft EM Regulations, and to ensure compliance w i h any COEP provisions or conditions o f EM approval. In some instances appropriate baseline environmental information may need to be gathered and submitted with the EL%. Such preparatory monitoring should be identified in the implementation plan for the sub-project. This will pennit the evaluation o f impacts over time compared with baseline data. At present here are no specific provisions in the Inkrim Regulations. Although not literally provided in the EL4 Guidelines, the expectation i s that monitoring o f impacts should be undertaken, The proponent i s also required to carry out monitoring o f impacts through data collection and the provision o f it to P M for i ts evaluations . According to PUMA, such provisions need to be inserted into the guidelines.

Critical areas such as the coastal hazard zone should be monitored to identify the long-term trends o f natural processes and so quantify changes in the baseline conditions, As the inventory o f coastal. hazard zones has been completed monitoring should be facilitated due to the presence of detailed baseline hi"mation in mapped output with indicators o f sensitivity.

(b)

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Examples o f monitoring regimes that need to be better implemented are presented in the following table:

To be Car r i ed

M N R E , P U M A ou t By:

M O W

MNRE

M O W / M ~ R E / S A A

M 0 W i 'MNRE

M O W i S A A

MNRE

A c t i v i t y

Compl iance M o n i t o r i n g

Compl iance M o n i t o r i n g

A e r i a l Photography

O b l i q u e Photographes

Beach Surveys

Cond i t i on Surveys o f coastal protect ion systems. Rout ine water qua l i t y & ecosystem mon i to r i ng

Observation t o ensure that proponents are meet ing condi t ions requ i red under the COEP, EMP, P E A R or E I A . As there i s now a computerised i n fo rma t ion system on l i ne , a more deta i led quant i ta t ive mon i to r i ng system should be a cond i t i on o f l oan effect iveness. The ro le o f M N R E should be evaluat ion o f compl iance mon i to r i ng carr ied out b y proponent Departments, A management system fo r compl iance m o n i t o r i n g should be designed and implemented b y the t i m e o f l oan effectiveness. Some discussion has ind icated that M O W has n o t implemented a compl iance mon i to r i ng system as th is should be the responsib i l i ty o f the proponent w i t h an operational budget, Evaluat ion o f mon i to r i ng should be carr ied out b y P U M A . Proposal f o r Pro ject Envi ronmenta l O f f i c e r inc luded under COEP's discussion. M N R E w i l l use th i s fo r CRZ assessment and mon i to r i ng long- term changes t o the coastl ine. M O W w i l l use this fo r engineering design. Used b y M O W I S A A f o r mon i to r i ng asset condi t ion. Used b y M N R E f o r evaluat ing trends and env i ronmenta l effects over t ime. M o n i t o r i n g o f beach p r o f i l e changes. M O W w o u l d u s e this as pa r t o f asset cond i t i on moni tor ing. MNRE w o u l d use th is f o r evaluating long- term trends as par t o f a CHZ assessment. Development o f maintenance programmes f o r coastal assets and defence systems,

Eva lua t i on o f water-qual i ty in the lagoons and sc ient i f ic surveys o f ecosystems. Th is i s seen as a long- term rout ine ac t i v i t y to be carr ied out b y MNRE (and M A F F M ) independen t l y o f t he I A M P .

Conclusions from Phase 2 EA Preparation

8, The key lessons and conclusions from the Phase 2 EA are as follows:

e The EA procedures that were established under the M - 1 project appear to have been implemented successfidly with only several instances found where the agreed system appears to have not satisfied all requirements.

Category A projects under the World Bank OF 4.01. W s does not preclude the possibility of a full EM being required by PUMA under the interim Samoan EL4 regulations. The most likely sub-project which will require more detailed investigation i s the Apia Road Network component which has potential for impacts on wetlands and also displacement of residents on some route options.

airports study prepared under MM-1 drew attention to the on-going noise and safety issues at Fagalii Airport which have yet to be resolved by GOS, I t should be emphasized that the Sinclair Knight Merz reported unacceptable noise and safety hazards for a significant number of neighboring houses o f this airport and suggested a number o f options to mitigate the problem but to date, the GOS have made no proposals.

8 There do not appear to be sub-projects under the various components that would be rated as

a Even though there i s M y no investment in the airports sector under M - 2 , the minor

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a A new agency known as the FUMA began operation in July, 2002 with interim provisions in place until the enactment o f the new integrated planning and environmental legislation. All recent projects under IAXII-1 and those to be funded under IAM-2 have consulted closely with PurvzA in the preparation o f PEAR documents and comparative environmental and social evaluations for several feasibility studies.

project so that the improvements in EA procedures and standards brought about under the project will be sustainable after project completion. There i s no present schedule for enactment of the implementing regulations including environmental procedures which will follow enactment o f the enabling Bill on Planning and Urban Management. I t is proposed that the same procedures carried out under IAM-1 be carried out until the second year o f implementation using the previous draft regulations, The aim would be to ensure that the regulations mder the new legislation would then be enacted

to the use o f the GIS developed under IAM-1 and the design o f an improved feedback management system to assist in the incorporation o f design and site mitigations into final design and operation of road and coastal itlfrastructure subprojects. Technical assistance in the form of a locally recruited environmental officer to support the func.tions o f the present rylwTi component manager i s recommended. T i i s position would be responsible for all liaison on environmental and s o d issues arising from the project between MWTI and PUMA and should run at least until such h e as the officer within the Asset Management Branch returns ftom overseas. If such a position i s made available, the environmental and social aspects, particularly those associated with monitoring, compliance, auditing, and enforcement will continue to be low priority tasks.

institutionalize the system should be an objective o f IAM-2 and should be integrated with the responsibilities ofthe environmental officer. A full description o f all o f the tasks o f the proposed position i s set out in the full EA text.

There i s also a need for I'd", in close consultation with MWTI, to cany out additional technical assistance to refine the CIMS process taking account o f the needs o f GOS implementation Ministries and the community expectations which have been raised by the planning process to date. The CIMS process needs to pay particular attention to a mechanism to prioritize proposals both witbin and between Districts for projects which are clearly the responsibility o f the GOS rather than individual villages.

There i s a need to formally enact the draft EM Regulations over the course o f the IAM-2

There i s a need to consider the present compliance monitoring regirne particularly in relation

The completion and implementation o f all interim COEPs and additional training to

a

9, Another important issue coming up will be the need to place the CIMS in the overall planning framework o f the new Planning and Urban Management 3iU which contemplates Sustainable Minagement Plans as the overall formal land-use planning mechanism which would provide the policy and development standards for implementation o f a new development approval process. The use o f land use planning and development standards i s considered to be a more sustainable strategy to address the issues o f illegal coastal reclamation, wetland preservation and sand mining which were highlighted in many of the CXMS documents.

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Additional Annex 14: Road Sector Overview and Assessment SAMOA: Second Infrastructure Asset Management Project

A. Road Infrastructure and Operation

Road System

1 population o f approximately 180,000. The capital and commercial center Apia accounts for 22 percent o f the population, with north west Upolu a further 30 percent. Savai'i has only 24 percent o f the population.

2, There i s also an estimated 680 km of village and 800 km of plantation tracks. The principal roads are maintained by the Ministry of Works, Transport and Infrastructure (MWTI) while the plantation and village roads are maintained locally. Figure 1 comparing the Samoa principal road network with countries o f a similar size and level o f development shows that although the network density i s high in relation to the population, it i s also affordable given the size o f the economy.

The two main islands o f Samoa, Upoh and Savai'i, have a combined area o f 2,860 km2 and a

The road system in Samoa comprises 857 km of principal roads (78.5 percent paved) Table 1.

Table 1: National Road Network

Figure 1: Samoa Road Network Compared to Similar Countries

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3. This i s due in part to large scale reconstruction after Cyclones Ofa and Val (1990 and 19911, especially on Savai’i, but also reflecting government policy of providing al l weather roads to ensure village access. However, 21 percent o f the principal road network i s s t i l l unpaved including 25 percent o f urban roads on Upolu (Table 2).

Table 1 shows a significant increase in the number o f paved roads in Samoa in the last 13 years.

4, 1987-2000 the vehicle fleet grew by 7.3 percent pa. Using historical traffic count data in conjunction with traffic counts f iom comprehensive surveys undertaken in 200 1, traEc growth rates of 5.6 percent pa. for Savai’i and 7.3 percent pa. for Upolu were calculated. The growth rates were higher in urban areas, with growth o f over 10 percent pa. Apia. For both islands traf fc growth was substantially higher than the national GDP growth rate of 3.3 percent p.a. over the same period.

In recent years Samoa has undergone rapid motorization. As shown in Table 3, in the period

Table 3: NUIXI~~K of Registered Vehicles

Keear Number of Registmxd Vehicles by Vehicle Type Yo Private T a x i s Pickup HmPy Buses Othedll Total Increase

Cars Trucks since 1987 1987 1,473 3 63 1,925 391 212 188 4,552 1988 1990 1991 1992 1993 1994 1995 1996 1997

1 9 9 m

1,531 41 1 1,936 346 196 222 4,642 2 0 1,898 616 2,45 1 349 248 243 5,805 8 4 1,950 715 2,775 436 227 209 6,3 12 8 5 2,240 1,099 2,610 377 381 41 9 7,126 9 4 1,269 936 1,936 47 2 334 158 5,105 1 9 2,134 1,057 2,701 510 209 869 7,480 7 4 2,380 1,013 2,784 579 243 947 7,946 7 2 2,813 718 2,639 426 239 539 7,374 5 5 2;lSS 628 2,597 404 355 497 7,037 4 5 2,100 804 2,080 26 1 159 409 5,813 2 2

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5. T”ae road network i s fi”ental1y different on the two islands, both in terms o f traffic and condition, The M i c levels on Savai’i are light, with most flows below 500 vehiday, except in the vicinity of Sdelologa where flows of up to 2,300 vehlday were observed in 200 1 ~ Upolu has much higher t ragc flows along the north coast and in Apia where flows o f 20,000 veldday have been observed, In other parts o f Upolu the flows are much lower and o f the same magnitude as Savai’i. On the basis o f 2001 traEc surveys, the total annual vehicle travel was 217.3 million veh-km, o f which 84 percent was in Upolu.

5. roughly 26 percent and 19 percent o f daily person travel, For “I areas bus transport and taxis account for roughly 38 percent and 13 percent o f daily travel. The reliance on public transport results in relatively high pedestrian flows and the failure to adequately provide for these flows i s reflected in the traffic accident rates, The majority of crashes and accidents occur between Apia and the airport with a high proportion o f these involving pedestrians. Accident rates on this road were estimated to be 48 per 100 mill ion v e h - h compared to an expected level o f 15 for the same road with proper design features and pedestrian facilities. There i s a high incidence of child pedestrian casualties, although this has decreased in recent years following the road traffic safety programs introduced under the first phase.

Public transport plays an essential role in Samoa, In Apia bus transport and taxis account for

Road Infrastructure Assets Condition

7, Most paved roads have a surface dressed pavement; unpaved roads are gravel. The road network comprises predominantly one lane and narrow two-lane roads, Table 4 shows that 86 percent of the road network has a width o f 5.0 m or less. Using the functional adequacy approach o f the 2002 Road Sector Plan, 10.5 percent of urban roads have inadequate road width (Le., capacity) or pedestrian facilities for their traffic flows. Capacity i s generally adequate for mral roads, however geometric standards are low except where there has been post-cyclone reconst” . In urban areas significant delays are also observed at critical intersections due to inadequate intersection capacity and inappropriate traffic control devices.

Table 4: Principal Road Network Widths

r: 100 I 97 65 7 0 269 100 - 300 48 114 0 0 1 53

301 - 1,oao 50 178 29 1 258 1,001 - 3,000 2 54 60 3 119

3,001 - 10,000 0 27 7 0 34 > 10,000 0 0 13 2 I S

Total 297 439 115 6 858

Sowce Mission Analysis o f S M data

8. causing congestion problems in Apia, particularly in the western approaches leading to the industrial area near Vaitele. There i s an inadequate road hierarchy to support existing land use patterns and the forecast future developments. Current growth to the south-west o f Apia i s forecast by the Planning and Urban Management Agency IpTJMA) to continue as th is i s the primary growth area for the city. The demands on

The inadequate road capacity and intersection controls coupled with the growth in traffic are

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the road infrastructure in this area, and competition between pedestrians and motorized trafiic, will therefore rapidly increase over time. Examples o f these problems are already present on the West Coast Road (WCR) which i s the main arterial connecting the airport at Fale'olo and the secondaq port at Mulifanua to Apia. The WCR passes through many villages but there are few provisions for pedestrian traRk (e.g., sidewalks, bus bays, etc.). This contributes to a large number o f pedestrian related accidents.

9. the condition o f the sealed and unsealed road network in Savai'i i s substantially better than in Upolu. The consistently high annual road budget allocations and low traffic flows on Savai'i mean that much o f the road network, which was reconstructed after Cyclones Ofa and Val (1992 and 19941, i s s t i l l in excellent condition, The mean roughnesses for Savai'i were 4.80 ". IRI paved, 8.30 "I IfiI unpaved compared on Upolu to 6.6 "i IRI paved and 16.4 "i IRI unpaved. Those roads on Upolu reconsmcted after the cyclones are largely still in good condition but overall the condition o f the road network in Upolu i s inferior to Savai'i.

Figures 2 and 3 present the results o f roughness and condition surveys from 2001. Th is shows that

Figure 2: Roughness Distribution ( d k m IRI)

10. One lane bridges constitute 37 percent ofthe bridges in Samoa (Table 5). I t will be noted that there are no bridges with more than 2 lanes, For the 2002 Road Sector Plan, the bridges were assessed based on three criteria: (i> the bridge condition using a visual condition survey; (ii> the structural adequacy for traffic loading; and (iii) the functional adequacy given the traffic volume. As shown in Table 5,21 percent are in need o f replacement. Six bridges require widening to handle the traffic levels, as do two fords and one culvert. There i s a serious problem with ford maintenance, with 39 percent requiring maintenance or complete repair. Only two o f28 culverts required maintenance or widening.

fund in^ and Exwnditures

1 1. Xn recent years, the domesticaUy fimded budget has been in the region o f WST 15 m, o f which some 35 percent was classified as overheads. This included loan financing o f some WST 5 m per year under LAM-I. Table 6 shows that typically 90 percent o f the expenditure i s on roads. From 1998-2000 the expenditure was fairly evenly distributed between routine, periodic, rehabilitation and capital works. However, since 2000 routine maintenance has accounted for 50 percent o f the budget.

Table 5: Drainage Structure Condition

Attribute f Condition Zlane 1-lane Tatal Bridges

Number 33 19 52

Deficient Functionally -Replace and widen 5 1 6 Deficient Structurally -Replace 5 5

Deficient - Repair 1 1 2

Deficient Structurally -Replace 2 2 4 Deficient Functionally - Replace with bridge or widen 1 1 2 Deficient - Repair 2 9 11

For& Number 24 20 44

CUlverts Number Deficient Functionally - Widen DeGcient - Repair

25 5 30 1 0 1 1 0 1

Source: 2002 Road Sector P h

12. rate o f investment in road maintenance. The long-term average annual budget for rehabilitations, periodic and routine maintenance should be WST 18.4 mi'year, in addition to the administrative and other costs (Table 3.81, Excluding a return on equity the total annual cost of road transport i s WST 25.1 dyear; WST 38.4 &year including return on equity and exernalities.

The 2d03 Transport Sector Review Study indicates that there i s a need to substantially increase the

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Table 5: Annual Expenditure on Roads and Seawalls

Audited Annual Expenditure by Fiscal Year Expenditure Category (WST ‘000)

1998199 199912000 20001200l 200112002 Road Management

Routine maintenance Upolu 2,825 1,974 5,209 4,110 Routine maintenance Savaii 1,356 1,765 2,332 2,097 Periodic maintenance Upolu 1,660 2,135 1,983 2,171 Periodic maintenance Savaii 1,422 186 249 102 Rehabilitation Upolu 3,452 2,424 1,710 2,781 Rehabilitation Savaii 0 837 3 64 293 Capita1 Works Upolu 1,446 2,540 1,740 716 Capital Works Savaii 2,134 1,016 85 1 614 Total - Road Management 14,295 12,877 14,437 12,883

Maintenance Upolu 265 237 511 1,130 Maintenance Savaii 117 650 3 84 352

Seawalls

Capital Works Upolu 699 580 769 973 Capital Works Savaii 404 85 0 0 Total - Seawalls 1,485 1,552 1,564 2,455

Total Expenditure 15,780 14,429 16,101 15,338

Source: MWTI (2003)

B. Road Program Evaluation

Phase I - Preserving the Asset

13. tools for asset management. The former Public Works Department (PWD) lacked a formal planning process or tools for identifylng investment priorities in the network. The organization was also built around a force account system so the identification and delivery o f maintenance and improvements was not always done efficiently.

Figure 4 shows the key elements o f the L9M Program. Phase I of the IAM Program developed

14. The f i t IAM developed the Samoa Asset Management System ( S A M s ) to provide the tools for the planning, prog;ra”ing and budgeting o f road asset management. Supported by a comprehensive data collection survey, SAMs stores data on roads, bridges and seawalls which can be used by a prioritization module to identlfy candidate investment projects. It i s currently used as input to prepare the annual MWTI p r o m .

15. identifying the network investments required to meet the vision o f “a 8 ~ 8 ~ a ~ ~ ~ ~ ~ e road ~ e t w o r ~ ~ r o y ~ d ~ ~ ~ ~ o ~ ~ e c ~ o ~ to all town8 and y i l~age~, a l ~ o ~ i n g sa& and e ~ ~ ~ e n t travel between them.” The Road Sector Plan identified the preservation and investment needs for the network, as described below, W e e projects were undertaken on investment areas identified in the Road Sector Plan: Apia Road Network T f i c Management Study; West Coast Road Improvement Study; and Remote Roads Feasibility Studies.

The SAMs system was used as input to the 2002 Road Sector Plan which had the objective o f

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-... ............................................................... r“‘ . I 1

j Inventory i

Condition Traffic 1 Bridges Inventory 1 Traffic

Data Collection Surveys (2001) I 1 Previous Data I

L 7””’ L I ....... - ~

i

Samoa Asset Management

System

(2001

r-

Road Sector

(2002)

Statement of Economic Strategy

State Development Strategy

Other Government Policies

10 Year Medium Term Strategy Network Traffic

Management

c c I

Preservation Investment Programme Programme

v

Additional Data

I_

Annual MWTl IAM-2 Program Program

Transport Sector I. -. - . - . -. - . - . - . -. - . - . -. -. -. - . - . - . - . - Study Reform Plan

! impacts annual budget

Figure 4: LAM Program Components

Network Preservation Needs

Roads

16. SAMs system using a l ife cycle economic analysis approach. The analysis showed that there was a substantial backlog o f maintenance and a need for a raising the annual preservation expenditure, particularly on Upolu. Table 7 summarizes current needs by maintenance treatment and length o f road.

The road maintenance program was developed using an economic efficiency method applied by

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Table 7: Road Network Preservation. Needs (2002)

Rehabilitation with ?4urface Treatment 73.6 11.2 534.7 Reconstruction with S d w e Treatment 6 1 1.6 36.5 60 mm Asphalt OverIay 11.6 3.9 96.7 Total 154.2 18.5 75R6

Source: Mission analysis ofmaintenance program data

17. the reseals (13.1 km) are for roads with traffic volumes below 200 vehiday. While this i s below the threshold where vehicle operating cost savings justify sealing roads in many countries, in Samoa there are many additional benefits f iom sealing roads such as controlling erosion which i s a major problem due to the high rainfall and flow conditions, mitigating health problems caused by dust propagation, and reducing the environmental impact o f the road,

~~~~~~~S

18. Of the 52 bridges in Samoa, only two required preservation maintenance through the form of deck repairs. However, the condition surveys indicated a need for higher levels o f routine maintenance to repair guardrails, clear drains, etc. which, if not done, could lead to more major problems. Fords had a serious maintenance problem with 25 percent in need o f repairs. Only one culvert required maintenance.

~ ~ ~ W a ~ ~ ~

19, The analysis of seawalls indicated that o f the 28.9 km of seawalls, 87 per cent (25 km) required only routine maintenance, To arrest ik ther deterioration, maintenance to the toe, wall and crest i s required on 3.3 km of seawalls, with an estimated cost o f WST 0.5 m. However, recent observations indicate that non-engineered walls disintegrate rapidly and have a short life. Significant deterioration has also occurred on some parts of engineered walls where these have been exposed to severe storms. A more structured and intensive management of the seawalls will be needed to achieve sustainable performance.

The asphalt overlays are limited to high volume roads in urban Apia. Approximately 20 percent o f

Network Investment Needs

Roads

20. The 2002 Road Sector Plan identified a number of areas o f road investment needs:

a Ania Local Cauacitv Imurovement: Investing in capacity, connectivity and intersection improvements in the Apia urban area to cater for the high traffic flows.

West Coast Road: Either widening the West Coast Road (Apia to Fde’olo airport) or creating a

Unsealed Roads: A total o f 56.4 km o f unsealed roads, many in Apia, were identified as being

new inland route to relieve travel demand.

potentially suitable for upgrading to paved roads.

2 1 ~

during project preparation, created an urban traffic model o f Apia in TRIPS. This was calibrated using ADia Urban Network The Apia Road Network Traffic Management Study ( m S ) , conducted

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origin-destination surveys as well as traffic count data and used to forecast the future demands on the network. I t was found that there was an inadequate road hierarchy which was contributing towards congestion. Currently, sections o f Vaitele St. are approaching, or above capacity, and within 5 years the entire road would exceed capacity. Many other l i nks and intersections will be approaching or exceeding capacity within 5-10 years.

22. network, comprising (i) a main east-west arterial along Vaitele Street to the south o f Apia eventually extending eastwards to link with the port area and the East Coast Road, and a southern arterial along Falealili Street i Cross-Island Road; (ii) District distributor roads into the central business district (Fugalei Street, Beach Road, Falealili Street) and to the southwest (Faleata); and (iii) various local distributor roads. The South-West Arterial leading towards the sports stadium would be comprised ofwidened local roads and a new connection to Vaitele street. The viability o f this arterial i s dependent on the route selected for an alternative route to the West Coast Road (see below).

The study identified a functional road hierarchy to increase the capacity and efficiency o f the road

23. To handle the forecast traffic flows on Vaitele St. widening was shown to be needed within 3-4 years. Currently, it i s two lanes and 7 m width for much o f i ts length and four lanes are estimated to be required to meet the demand. It would also be necessary to widen several bridges, which was also identified as a priority in the 2002 Road Sector Plan. An extension o f Vaitele St. to provide better access to the port was identified, which would help reduce the need to improve the Vaisigano bridge on Beach Road which currently operates under a load restriction; truck tr&ik from the port would be able to easily divert to western Upolu through the new extension and light traffic would also divert. The Mdivai bridge on Beach Road would then not require widening. Widening to four lanes i s required for Fugalei St. which distributes tra& to the market and bus stations, as well as providing access from the west to central Apia. Other network improvements, such as extending Convent St., were not found to be as beneficial, although significant benefits would come from improving the t r f l i c control and designs at a number o f intersections.

24. West Coast Road: The existing WCR i s the primary arterial road in the country, linking the international airport at Faleolo to the city and to the two ports at Apia and Mulifanua, the road bisects many communities, it has the highest accident rate, the pavement condition i s only fair, and it i s vulnerable to coastal erosion and storm damage. I t i s deficient in a number o f respects, including, but not limited to: (i) inadequate width for the motorized and non-motorized traffic levels which results in dangerous conditions for pedestrians; (ii) it serves as both a local access road for the many villages and the main arterial linking Apia with the airport and the wharf at Mulifanua; (iii) poor pavement condition over much o f the length with significant cracking and some shoving and rutting; (iv) inadequate drainage resulting in frequent ponding; (v) unsafe locations o f power poles; and (vi) inadequate parking facilities and bus bays

25. favor o f constructing a new Westem Inland Route @VIR_> mid-way between the WCR and Aleisa Rd. for risk management, social and economic reasons: (i) the WIR would be located outside the Coastal Hazard Zone providing redundancy in the network and emuring good connectivity with the west o f Upolu in the event o f cyclone damage; (ii) the existing WCR would become a local distributor road mainly servicing local traffic, which would improve the traffic safety and significantly reduce the m e n t social disruption caused by traffic; (iii) the W R would reduce travel time between Apia and Fale’olol Mdifanua thereby reducing flow on the WCR with through traffk diverting inland (shorter distance and faster tr&c flows); (iv) the improved linkage o f Apia with Fale’olo airport could facilitate the closure o f Fagali’i airport and encourage more efficient use o f Fale’olo airport.

The feasibility study conducted under IAM-1 showed that there was a compelling argument in

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26. There are hvo possible connections for the WIR. to Apia’s network {i) via the proposed South-West Arterial connecting the WIR to Vaitele Street, passing through Faleata to Vaimoso, or (ii) to the existing WCR west o f Vaitele. From a network development point o f view the South-West arterial route offers many advantages, including providing improved access to the sports stadium at Faleata which will be used for the 2007 South Pacific Games (see Figure 5). However, there i s potential for high land acquisition costs in which case connecting to the WCR would be the better option. The final route will be confirmed after conducting detailed route investigations.

27. The cost ofthe WIR will depend upon the fmal route selected and its connection to the existing network in Apia, The study proposal, locating the WIR 0.5 - 1.2 km from the existing WCR and terminating at the WCR in Vaitele, was estimated to cost WST 42 m with an ERR o f 45 percent. Land acquisition costs were approximately 40 per cent of the construction cost. With M e r analysis, it i s expected that an alternative alignment may give higher benefits.

28. In the interim, the standard o f treatment on the WCR was reduced ftom rehabilitation to resurfacing, with priority improvements to safety and traffic flow, which resulted in a reduction of average cost from US~330,000/lun to $70,00O/lun over the proposed length o f 32 km. The saving o f about US$8 mill ion represents about 70 percent o f the cost o f constructing the new WIR. and thus represents a sound investment planning strategy for the Government.

3 1. Unsealed Roads: As shown in Table 8, the 2002 Road Sector Plan identified 56.4 km o f unpaved roads for upgrading to sealed surface, o f which 9.4 km had strong BenefitfCost Ratio (BCR) values between 3 and 11. It will be noted that only roads in the Aipa environs were considered to have sufficient traffic to return a benefitfcost ratio greater than 2. However, the detailed study o f Fagaloa Bay road (see Annex 4) showed that this was economically viable by using a more cost effective treatment and considering benefits other than vehicle operating costs. Other roads with marginal BCR should also warrant lower cost treatments, such as regravelling and improvement o f drainage and crossings.

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32. There i s a need to improve the b c t i o n a l capacity o f several structures due to the traffic levels as shown in Table 10. The largest problem i s with bridges in the Apia area where there are Egh traffic flows.

Table 8: Unsealed Road Upgrading Opportunities

BenefitiCost Ratio Length @m] Location 3-11 9,4 Apia environs 2-3 10.7 Apia environs 1-2 36.3 Rltd access

source: 2002 Road Sector Plsn

Table 9: Structure Investment Needs

Span"' ADT Recommended Cost (m) Treatment (WST m) TYPe Name Road

Bridge Vaimoso Vaitele 15 20,000 Replace With 4 lanes 4.10 Taufusi Mul iva i Fugalei Vaisigano Talimatau Lauli i &st Letogo Solosolo East L U W U I U East

Vaitele Street Beach Road Fugalei Beach Talimatau Rd East Coast East Coast East Coast East Coast

12 M A 12 75 12 12 33 12 6

15,500 15,500 15,500 15,500 3,750 2,250 2,250 1,125 1,125

Replace With 4 Lanes Replace With 4 Lanes Replace With 4 Lanes Replace With 4 Lanes Replace With 2 Lanes Replace With 2 Lanes Replace With 2 Lanes Replace With 2 Lanes Replace With 2 Lanes

3.30 3.00 3.30 15.20 1.90 2,oo 4.20 1 .go 1 .oo

LuaWu'u Centre East Coast 12 1,125 Replace With 2 Lanes 2.00

Vaimea 2,250 Replace With 2 Lanes 0.20 Ford Sinamoga Moamoa 2,250 Replace 0.10

Lotosamasoni Lotosamasoni - 50 Replace 0.10 Sasina 175 Replace 0.10 Salailua South Coast 375 Replace 0.10 Tapueleele Tapueleele 375 Replace 0.10

Culvert Fugalei Fugalei 15,500 Widen

(1) NIA =Not available

Source: 2002 Road Sector Plan

Seawalls

33. continual requests macle by comuni t ies for coastal erosion protection. These need to be evaluated against the Coastal Infrastructure Management Plans and the design guidelines.

No investments in seawalls were identified in the 2002 Road Sector Plan. however9 there are

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C. Institutional Reform

Public Works Reform

34. The f irst phase o f reform in public works began with two institutional studies in 1995 (with AusAID) and 1997 @A>. These evaluated the appropriateness o f alternative models for the Samoa context, which i s characterized as a ‘thin market’ (a small economy with limited competition) and strong social impacts, These outlined a phased approach, beginning with internal reorganization and reformed business processes to operate as a commercially oriented department, and aiming ultimately at an autonomous operation in the form o f a statutory authority.

35. LIepattment (IrwD), changing its role fiom one o f implementing public works to one o f managing road system assets, with i t s service delivery functions being progressively outsourced to the private sector, both in civil works and in engineering services. Cautious policies and support during the period 1999-2001 resulted in repeated reviews and internal consultations within the Department, Min is t ry and Public Service Commission. The issues included staffretention and the transfer o f services to the private sector, the divestiture o f assets, and the ultimate status o f autonomy and commercialized operation for a department responsible for a substantial portion o f public expenditure. With a change o f leadership in 200 1, the Government broadened i ts program o f public service reform an& with the business process improvements and consultations already in place, the public works reform strategy and implementation plan were approved by Cabinet in August 2001.

Under W-1, the reform focused on improving the business model o f the then Public Works

36. Works (MOW) in March 2002, with powers for forming business Units and divesting assets, Three divisions reflected its new role: Asset management, commercial operations, and administration services. By this time, most services and works were being outsourced, and only routine maintenance, road sealing, emergency works, quarry and laboratory services, and limited design and supervision services were implemented in-house, Business units were formed around these special functions and trained tfirough the private Small 3usiness Enterprise Corporation. Then, in August 2002, the Cabinet opted to fast-track the transition and after further consultations in which staff were fully briefed on their options, the MOW was re-sized in October 2002: staffing was reduced by 83 percent from 401 to 58, with 57 percent accepting redundancy, 25 percent forming private businesses (with transitional support), and 1 percent transferring to other departments. The quarry and asphalt plant operations were established as a business, and many civil works staff and building inspectors formed two conkacting companies - these have been provided with a share o f work in FY2002103 under performance targets, and will have to compete fully after i h e e years.

Initially, the PWD was converted into i t s new organizational structure and named the Ministry of

37. In parallel to this sector-specific structural reform, a broad public service reform was implemented in early 2003, consolidating all Ministries, with the result that MOW was combined with transport, power and water into the Min is t ry o f Works, Transport and Infrastructure (MWTI). The road M-astructure division o f MWTI, however, i s impacted by a high staffing shortage and currently requires additional suppoit fkom two individual consultants to handle line functions. The shortage arises because o f the small pool o f professionals available, the remuneration gap with the private sector which was not closed much at the time o f the r e f o m and the incentives that accompanied the restructuring, Aside from this issue, the implementation o f structural reform o f public works has been considered a model and blueprint in for public service reform in Samoa, and indeed is a good practice example for the road sector internationally and in the PacSc region.

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Land Transport Refom

38. The ~ r u ~ ~ ~ r t Sector Review Study provided an in-depth analysis o f the sector and the reforms to date, and outlined the me&"term actions for completing these reforms to place the sector on a sustainable basis. In particular, it recommended:

Consolidating the merger o f the land transport and road asset management functions o f the present Ministry of Works Transport and Ir&astmcture, realigning some administrative functions &om the Police Department, and progressing to the establishment o f these functions under a statutory authority or state-owned enterprise with commercialized operation. Three options for the structure and schedule for reaching this have been identified, and the preferred option emerging from the joint discussions would result in the establishment o f a Land Transport Authority by the end o f 2005, in line with the Statement of Development Strategy, It i s believed that this move would also address the critical staff & o ~ g e currently being experienced.

Instituting full cost recovery from road users for at least the preservation o f the road assets and potentially with a return on equity that would finance modest development o f the n e t 6 This could be achieved thou&: (i) introduction o f a fuel levy, with dedication o f present road spending portion o f fuel excise fls0.25 per liter) and an increase o f T$0.25 per liter; (ii) modest increase in vehicle registration charges; (iii) no reduction in the portion o f fuel excise devoted to general taxation fl$0.16 per liter); and (iv) separate accounting o f the revenues in a special account or road fund. The road fund w o d d allow direct and full funding o f the road preservation program. With progressive introduction over two years, the resulting fund could support the full amrial preservation program by 2006, and possibly some development also, These objectives would also be in line with the Government's strategic objectives for requiring all SOEs to become sustainable, as announced in June with the FK 2003104 budget.

39. implementation of the user cost recovery. In introducing Road User Charges @UC) it was recognized that care i s needed to avoid eroding the competitive margin that has been achieved through the national bulk purchase of hel , in ensuring that fidl efficiency gains have been achieved in expenditures o n both traffic administration and on road asset management so that costs are " k e d , and that the RUC be well-designed and not rely solely on fuel as a revenue source. A nominal level o f RUC would be introduced initially and subsequent increases would be based on a detailed re-analysis o f costs, including review o f the optimal expenditures for road preservation.

Figure 6 shows the tentative %oad Map for Land T m p o r t Reform?' along with a proposed

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Agreed Road Map for Land Transport Reform

1.

2.

3.

4.

Preparation and Endorsement o f the Road Map for Land Transport Reform - November 2003 Detailed design o f Land Transport

2004 Establish Land Transport Authority - March 2005 Introduce Road User Charges - July 2004

Authority - A u ~ s t

Figure 6: Road Map for Land Transport Reform

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