FOR OFFICIAL USE ONLY INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT FOR A PROPOSED GRANT

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT FOR A PROPOSED GRANT IN THE AMOUNT OF SDR MILLION (US$20.00 MILLION EQUIVALENT) INCLUDING SDR 3.32 MILLION (US$5.00 MILLION EQUIVALENT) IN CRISIS RESPONSE WINDOW RESOURCES TO THE INDEPENDENT STATE OF SAMOA FOR AN ENHANCED ROAD ACCESS PROJECT September 14, 2013 Sustainable Development Department Timor-Leste, Papua New Guinea, and Pacific Islands Department East Asia and Pacific Region Report No: WS This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 CURRENCY EQUIVALENTS (Exchange Rate Effective September 14, 2013) Currency Units = Samoan Tala (SAT) Australian Dollar (AUD) United States Dollar (US$) Special Drawing Rights (SDR) SAT 2.13 = AUD 1.00 SAT 2.35 AUD 1.00 = = US$1.00 US$0.92 SDR 1 = US$1.52 FISCAL YEAR January 1 to December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank JPM Joint Policy Matrix AUD Australian Dollar LARF Land Acquisition and Resettlement Framework AusAID Australian Agency for International Development LTA Land Transport Authority COEP Codes of Environmental Practice M&E Monitoring and Evaluation CRW Crisis Response Window MNRE Ministry of Natural Resources and Environment CRWCR Enhancing the Climate Resilience of the West Coast MoF Ministry of Finance Road Project DA Designated Account MWTI Ministry of Works, Transport and Infrastructure DALA 2012 Post-Disaster Needs Assessment of Cyclone NCB National Competitive Bidding Evan (GoS) DPO Development Program Operation (World Bank NPV Net Present Value Support to GoS) EA Environmental Assessment PCRAFI Pacific Catastrophe Risk Assessment and Financing Initiative EMP Environmental Management Plan PDNA Post-Disaster Needs Assessment EPBC Australia s Environmental Protection and PICs Pacific Island Countries Act Biodiversity Conservation Act 1999 ERAP Enhanced Road Access Project PPCR Pilot Program for Climate Resilience ESSAF Environmental and Social Screening and Assessment PSC Project Steering Committee Framework EU European Union PTRP Post-Tsunami Reconstruction Project FM Financial Management SAT Samoan Tala FMS Financial Management Specialist SDR Special Drawing Rights GoA Government of Australia SIAM-2 Second Infrastructure Asset Management Project GoS Government of Samoa SPCR Strategic Program for Climate Resilience IDA International Development Association TCE Tropical Cyclone Evan IFR Interim Financial Report US$ United States Dollars IRR Internal Rate of Return WCR West Coast Road Vice President: Axel van Trotsenburg Country Director: Franz Drees-Gross Sector Director: Sector Manager: John Roome Michel Kerf Task Team Leader: Jim Reichert

3 SAMOA ENHANCED ROAD ACCESS PROJECT TABLE OF CONTENTS Page I. STRATEGIC CONTEXT...1 A. Introduction... 1 B. Country Context... 1 C. Situations of Urgent Need of Assistance or Capacity Constraints... 2 D. Sectoral and Institutional Context... 4 E. Higher Level Objectives to which the Project Contributes... 5 II. PROJECT DEVELOPMENT OBJECTIVES...6 A. PDO... 6 Project Beneficiaries... 6 PDO Level Results Indicators... 7 III. PROJECT DESCRIPTION...7 A. Project Components... 7 B. Project Financing... 8 C. Lessons Learned and Reflected in the Project Design... 9 IV. IMPLEMENTATION...9 A. Institutional and Implementation Arrangements... 9 B. Results Monitoring and Evaluation C. Sustainability V. KEY RISKS AND MITIGATION MEASURES...10 A. Risk Ratings Summary Table B. Overall Risk Rating Explanation VI. APPRAISAL SUMMARY...11 A. Economic and Financial Analysis B. Technical C. Financial Management D. Procurement... 13

4 E. Social (including Safeguards) F. Environment (including Safeguards) Annex 1: Results Framework and Monitoring...15 Annex 2: Detailed Project Description...18 Annex 3: Implementation Arrangements...26 Annex 4: Operational Risk Assessment Framework...36 Annex 5: Implementation Support Plan...39 Annex 6: Maps...41

5 ..... PAD DATA SHEET SAMOA ENHANCED ROAD ACCESS PROJECT (P145545) PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASNS Report No.: WS Basic Information Project ID Lending Instrument EA Category Team Leader P IPF B (Partial Assessment) Jim Reichert Lending Instrument: IPF Fragility or Capacity Constraints [ ] Financial Intermediary [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date January 1, 2014 December 31, 2018 Expected Effectiveness Date Expected Closing Date December 31, 2013 April 30, 2019 Joint IFC n/a Sector Manager Sector Director Country Director Regional Vice President Michel Kerf John Roome Franz Drees-Gross Axel van Trotsenburg Recipient: Ministry of Finance Responsible Agency: Land Transport Authority Contact: Mr. Leasi J. Galuvao Title: Chief Executive Officer Telephone No.: (685) galuvao@lta.gov.ws Project Financing Data (in million) [ ] Loan [X] Grant [ ] Other [ ] Credit [ ] Guarantee Total Project Cost: US$32.00 Total Bank Financing: US$20.00 Total Cofinancing: US$12.00 equivalent Financing Gap: US$0.00. Financing Source Amount

6 IDA (US$): Cofinancing (US$ Equivalent): Recipient: Total Project Cost (US$): Expected Disbursements (in US$ million) Fiscal Year Annual Cumulative Sector Board Transport Institutional Data Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Co-benefits % Rural and Inter-urban Roads and Highways Total: 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. Mitigation Co-benefits % Themes Theme (Maximum 5 and total % must equal 100) Major Theme Theme % Natural Disaster Management 100 Total: 100 Project Development Objective(s) To restore key road sector assets damaged by extreme weather events and enhance the climate resilience of critical roads and bridges in Samoa. Components Component Name Cost (US$ million) Road and Bridge Reconstruction Technical Assistance 2.00 Project Management 1.40

7 .... Policy Compliance Does the project depart from the CAS in content or in other significant respects? Explanation: Yes [ ] No [X] Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ ] Explanation: Does the project meet the Regional criteria for readiness for implementation? Yes [X] No [ ] Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 Natural Habitats OP/BP 4.04 Forests OP/BP 4.36 Pest Management OP 4.09 Physical Cultural Resources OP/BP 4.11 Indigenous Peoples OP/BP 4.10 Involuntary Resettlement OP/BP 4.12 Safety of Dams OP/BP 4.37 Projects on International Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 Legal Covenants Name Recurrent Due Date Frequency Establish Project Management Unit (PMU) under the authority of the MOF. X X X March 31, 2014 Description of Covenant: Establish PMU three months after effectiveness. X X X X X X X One Time Name Recurrent Due Date Frequency Appoint Project Coordinator. March 31, 2014 One Time Description of Covenant: Within three months of effectiveness, LTA to appoint, and maintain throughout implementation, a Project coordinator. Name Recurrent Due Date Frequency Project Implementation Agreement (PIA). November 30, 2013 One Time Description of Covenant: MoF and LTA to sign PIA.

8 . Name Recurrent Due Date Frequency GoA to provide co-financing for project purposes. Within one year of project effectiveness. Description of Covenant: GoA to provide up to AUD 13 million for co-financing purposes. Bank Staff Team Composition One Time Name Title Specialization Unit Jim Reichert Sr. Infrastructure Specialist Infrastructure EASNS Sean Michaels Infrastructure Operations Analyst Infrastructure EASNS Isabella Micali Drossos Sr. Counsel Legal LEGES Marjorie Mpundu Sr. Counsel Legal LEGES Kuana Tupu ACS General Support EACNF Shruti Pandya ACS General Support EACNF Miriam Witana Sr. Procurement Specialist Procurement EASR1 Stephen Hartung Sr. Financial Management Specialist Financial Management EASFS Gerardo Parco Operations Officer Environment EASPS Victoria Lazaro Operations Officer Social Development EASPS MacKenzie Fillow Consultant Legal Support EACNF Non-Bank Staff Name Title Office Phone City John Lowsby Consultant, Civil Engineer 268/ Swaziland

9 I. STRATEGIC CONTEXT A. Introduction 1. This Project Appraisal Document seeks the approval of the Executive Directors to provide an International Development Association (IDA) grant of SDR million (equivalent to US$20 million), including SDR 3.32 million (equivalent to US$5 million) from the IDA Crisis Response Window (CRW), for the Enhanced Road Access Project (ERAP) to support the Government of Samoa (GoS) in responding to exceptional natural disasters, including Tropical Cyclone Evan (TCE). Other donors have pledged financial resources for the reconstruction effort, however, the amount is not sufficient and CRW is considered the last resort for additional funding. CRW funds will be utilized to reconstruct key road sector assets that were damaged by TCE. B. Country Context 2. The Independent State of Samoa (Samoa) is a small remote Pacific Island state with a population of approximately 180,000 people. Samoa consists of the two large islands of Upolu and Savai i, and several smaller islands, and has a total land area of about 2,935 square km. It is located some 3,000 km from New Zealand, and 4,000 km from Hawaii and Australia. Samoa is one of the wealthier and better performing Pacific Island Countries (PICs) with a gross national income of around US$3,200 per capita. 3. Like all PICs, Samoa is vulnerable to extreme weather events, and the threat from tropical cyclones, flooding, earthquakes, and tsunamis is growing. The latest information from the Pacific Climate Change Science Program 1 indicates that the frequency and intensity of extreme weather and climate events (such as heavy rainfall, strong winds, storm surges, and high sea levels) is already on the rise throughout the region. These events cause severe damage to infrastructure and other economic assets, and have adverse effects on livelihoods. According to the Global Climate Risk Index 2012 report, Samoa ranks 51st out of 179 countries in terms of who suffers most from extreme weather events Over the past twenty years, tropical storms and cyclones have posed the greatest natural hazard to Samoa and caused the most damage. The most devastating - Ofa in 1990 and Val in combined to cause 21 fatalities and widespread destruction, with total economic losses estimated as high as US$500 million, 3 which was equivalent to about four times the country s gross domestic product at the time. 4 1 Climate Change in the Pacific: Scientific Assessment and New Research, Volume 2: Country Reports, Pacific Climate Change Science Program, S. Harmeling, Global Climate Risk Index 2012: Who Suffers Most from Extreme Weather Events? Weather- Related Loss Events in 2010 and 1991 to 2010, briefing paper, German Watch, Bonn, PCRAFI (Pacific Catastrophe Risk Assessment and Financing Initiative), Country Risk Profile: Samoa, September GFDRR (Global Facility for Disaster Reduction and Recovery), Samoa, 2009 PDNA Assessed Total Earthquake and Tsunami Impact at 22% of GDP, 1

10 5. Flooding has occurred regularly throughout Samoa s history, particularly in built-up areas like Apia, which has suffered numerous floods over the years, with major floods reported in 1939, 1974, 1975, 1982, 1990, 1991, 2001, 2003, 2006, 2008 and Samoa is also located in a part of the Pacific that experiences high seismic activity, and on occasion, earthquakes have triggered tsunamis. On September 29, 2009, a powerful earthquake struck south of Samoa and was followed by a tsunami that impacted American Samoa, Samoa, and northern Tonga. In Samoa, 143 deaths were reported and nearly 5,300 people (about seven percent of the country s population) were made homeless. 7. The Australian Bureau of Meteorology has projected that on a global scale, there is likely to be an increase in the average maximum wind speed of cyclones of between 2 percent and 11 percent, and an increase in rainfall intensity of about 20 percent within 100 km of a cyclone s center. While projections for the region indicate a decrease in the frequency of tropical cyclones over the next 100 years, the proportion of more intense storms is predicted to escalate Government officials are aware that the country s infrastructure assets, particularly roads and bridges, are vulnerable to climate change and more intense storms. Samoa is an active member of regional and global climate change fora and initiatives and has put forth a robust program for developing economic infrastructure, which addresses risks posed by climate change. In addition, Samoa was a case study country for the World Bank-sponsored Economics of Adaptation to Climate Change study (2010), and was the first country in the Pacific regional program of the Pilot Program for Climate Resilience (PPCR) to have an endorsed Strategic Program for Climate Resilience (SPCR). 9. In December 2012, the first PPCR project in Samoa, Enhancing the Climate Resilience of the West Coast Road (CRWCR), was approved by the Bank s Board of Directors. More recently, the Cabinet approved a plan to strengthen the climate resilience and longevity of road assets throughout the country, and is taking steps to strengthen the resilience of Samoa s economic assets to extreme climatic events. C. Situations of Urgent Need of Assistance or Capacity Constraints 10. Tropical Cyclone Evan. TCE struck Samoa on December 13 and 14, Over the two-day period five people were killed and approximately 4,250 were temporarily displaced. The GoS s Damage and Loss Assessment of Cyclone Evan (DALA) that was carried out immediately after TCE 6 estimated the combined physical damage and economic losses to transport infrastructure, houses, and tourism facilities at about US$210 million. The total estimated damages and losses were equivalent to about 30 percent of the total value of goods and services produced in the country in Based on estimates of the normal value of construction activities in Samoa, it can be inferred that recovery and reconstruction will take between two and three years. 5 Australian Bureau of Meteorology and CSIRO (Commonwealth Scientific and Industrial Research Organisation), Climate Change in the Pacific: Scientific Assessment and New Research, vol. 1, Regional Overview, and vol. 2, Country Reports, Samoa Post-Disaster Needs Assessment Cyclone Evan 2012, Government of Samoa, March

11 11. TCE caused damage to the country s main international airport at Faleolo, several roads and bridges, and a number of ports on Upolu and Savai i. Several key road sector assets were damaged, including the cross-island road (a key economic artery on Upolu), Siumu Road (the only road linking communities on the south side of Upolu Island), as well as the twenty-meter long, two-lane Leone Bridge in the Leone area of Apia, which can no longer be used by vehicles and is just one of two bridges capable of carrying heavy vehicles between Apia s main port and the principal industrial area at Vaitele. 12. There was no reported major damage to transport assets, on Samoa s other islands of Manono, Apolima, Namu a, Nu utele, or Nu ulua. 13. Assessment of Bridges. An assessment of the condition of bridges in Upolu and Savai i by the Australian Civil Corps in January 2013 and May/June 2013 indicated that 38 of 45 bridges inspected in Upolu and Savai i were in need of repair, with twelve bridges in Upolu in need of urgent repairs. A small number of these bridges may need to be replaced, but this will depend on further structural and cost assessments. 14. Environmental and Social Assessment. An Environmental and Social Screening Assessment Framework (ESSAF) has been prepared by the Land Transport Authority (LTA) to screen and identify environmental and social issues and the impact of the proposed road and bridge works. 15. The construction of new bridges and rehabilitation of existing bridges in a number of rural areas outside of Apia would contribute to pro-poor growth and could provide opportunities for employment of youth and women. This would contribute to improvement in basic need poverty that is seen to be concentrated in rural areas, as described in the 2008 Household Income and Expenditure Survey. 16. Recovery Strategy. In response to TCE, the Government declared a 30-day state of emergency. Nearly 6,000 people were evacuated after high winds damaged homes and Apia s Vaisigano River broke its bank. The Government subsequently called for international assistance, and engaged local contractors, civil society groups, and the international community in the relief and rehabilitation effort. 17. On December 20, 2012, the Government requested support from the World Bank in working with other development partners to prepare a DALA. As a result, a recovery framework was prepared, the main purpose of which was to enable a coordinated and effective recovery effort. Donor commitments in response to TCE amount to nearly US$110 million. 18. It is worth noting that Samoa joined the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), which provides tools to support ex-ante disaster risk reduction measures, such as planning, emergency preparedness, climate change adaptation, disaster risk financing, and post disaster support such as rapid assessments. In addition, three on-going Bank operations support climate resilience activities in the roads sector. 19. Coordination with Donors. Bank response to TCE is being closely coordinated with other donors in part through quarterly meetings between the Government and development 3

12 partners. There is also on-going dialogue between the Bank and other development partners at the managerial level, and through the project teams. The Bank is also working with other development partners to jointly deliver technical assistance and analytical services to the GoS. For example, the Post-Disaster Needs Assessment (PDNA) involved a cross-organizational team from the World Bank, the Asian Development Bank (ADB), the Australian Government, the New Zealand Government, the European Union (EU) and the United Nations. 20. A Development Policy Operation, also supported by IDA s Crisis Response Window, and based on coordinated discussions with other development partners, was approved by the Bank s Board of Executive Directors in July The ADB is preparing a budget support program to support Samoa s FY2014 budget. The Governments of Australia and New Zealand are also providing budget support, while the EU is extending assistance to the water sector. 21. Rationale for Bank Support. The Bank has had a successful and long-term engagement in Samoa s road sector through several past and on-going operations, including the Infrastructure Asset Management Projects (Phases 1 and 2), the Post-Tsunami Reconstruction Project, and the recently approved CRWCR. Under these activities, assistance has been extended to support the country s strategic direction for managing road assets through financial support for works and technical assistance to formulate and carry out sector reforms. The proposed project in support of post TCE rehabilitation would continue Bank engagement with Samoa in the road sector. D. Sectoral and Institutional Context 22. Until mid-2009, the Ministry of Works, Telecommunications and Infrastructure (MWTI) was responsible for managing Samoa s road sector. However, as part of Government initiatives to reform and consolidate road asset management and road use functions, these responsibilities were formally transferred to LTA in July LTA is responsible for implementing sector policy, and for planning, designing, constructing, maintaining and supervising the country s national roads and land transport infrastructure. It also oversees road use and is accountable for registering vehicles, issuing drivers licenses, enforcing vehicle load limits, and promoting road safety. Maintenance of village and plantation roads is carried out by local authorities. 24. On the principal islands of Upolu and Savai i, there are about 1,150 km of classified roads (747 km on Upolu and 403 km on Savai i), and 52 bridges (44 bridges on Upolu and 8 on Savaii). Roads are critical in Samoa, as approximately 70 percent of Samoa s population lives within one km of the coast, and critical infrastructure, such as hospitals, schools, places of employment, tourist infrastructure, port facilities, power plants, airports, and roads, are located primarily in the coastal zone. The Samoa road network faces a range of vulnerability issues, in particular: (i) coastal exposure to sea-level rise, storm surge, and wave action during cyclones and tsunamis; (ii) inland flooding and landslips during extreme rainfall events; (iii) damage from earthquakes; and (iv) accelerated pavement deterioration due to extreme weather and rising water tables in some locations. 25. Samoa s networks of roads are of critical importance to the country s economy and economic development. They support trade and promote commercial activity by facilitating the 4

13 movement of goods and services, and providing safe and efficient access to social services, including schools and health facilities. 26. The West Coast Road (WCR) is the primary artery on the main island of Upolu and provides a vital land transport link connecting Samoa s capital city Apia and the Port of Apia with Faleolo International Airport, the Mulifanua inter-island ferry wharf (the main gateway to Samoa s second island, Savai i), and communities and industry along the north-west coast. Its upkeep is critical for continued economic development as more than 50 percent of Samoa s population and most of its industry is currently located along the WCR corridor. At the eastern end of the WCR corridor is Vaitele Street, which is located in Apia and forms a critical part of the Mulifanua to Apia Economic Corridor. It is considered the country s most important section of road and supports heavy traffic with frequent congestion, especially from Vailoa Road to Atone Road through the Industrial Zone. During TCE, it played a vital role in providing access to and from affected areas, and strengthening this asset s resilience to climatic events is a priority for GoS Recognizing the fundamental role played by road sector assets in the well-being of its citizens, the Government has launched an ambitious program to strengthen the resilience of its roads and bridges by reconstructing the most critical to higher standards so that they are better able to withstand the impact of climate change and extreme weather events. E. Higher Level Objectives to which the Project Contributes 28. This emergency operation is guided by the Government s priorities articulated in the Strategy for Development of Samoa 2012 to 2016, the Samoa Infrastructure Strategic Plan, the Samoa National Adaptation Program of Action, and by the Bank s overall approach to the Pacific Islands as set out in a Pacific Islands Directions note of April The Bank s broader engagement in the region is structured around the themes of: (i) generating opportunities through greater global and regional integration; and (ii) building resilience against external shocks, including climate change. This project is aligned with the second of these themes. 29. The ERAP is also consistent with the Country Partnership Strategy for Samoa (discussed by the Board on March 29, 2012), which calls for strengthening resilience against natural disasters and reducing vulnerability to climate change. In addition, the Bank s recent report "Acting Today for Tomorrow: A Policy and Practice Note for Climate and Disaster Resilient Development in the Pacific Islands Region, reiterates the importance of reducing vulnerability to climate change and natural disasters and highlights investments in the resilience of infrastructure as a key component of dealing with climate change risks. Given its emphasis on restoring assets damaged by TCE and improving access, the project will contribute directly to the Bank s goals of eradicating extreme poverty and promoting shared prosperity. 30. The ERAP also supports the SPCR for Samoa, which sets out priorities for climaterelated investments. The SPCR is assisting with a major effort to enhance the climate resilience of economically and socially important infrastructure and mainstreaming climate resilience in 7 The climate resilience of the WCR will be improved under the Bank s CRWCR project, which became effective in April

14 Samoa s development. Many of the road sector assets proposed for improvement under ERAP are considered vital, and strengthening their resilience would directly contribute to the priority focus of the overall SPCR. Finally, reliable and climate-resilient transportation is essential to sustain economic growth, thus contributing to the World Bank Group s objectives of ending poverty and boosting shared prosperity. II. PROJECT DEVELOPMENT OBJECTIVES A. PDO 31. The project development objective is to restore key road sector assets damaged by extreme weather events and enhance the climate resilience of critical roads and bridges in Samoa. Project Beneficiaries 32. The principal beneficiaries would be the 187,800 inhabitants on the Islands of Upolu and Savai i, as the ERAP would restore access and/or help to assure future access to and from their residences, institutions and places of business. The following table provides an estimate of the number of beneficiaries for the individual sub-projects. Sub-Project Widening Vaitele Street (residents of Apia urban area and northwest Upolu) Rebuilding Leone Bridge (residents of Vaimauga West District in Apia urban area) Building a permanent bridge over the Mali oli o River (residents of Savai i) Number of Beneficiaries 99,125 24,105 44, The results of the three public consultations conducted on the two islands showed strong support from the expected beneficiaries for the types of improvements to be carried out under the project. 34. Gender. Improved road and bridge infrastructure has the potential to benefit women in Samoa. The ERAP will seek to improve safe access along road sector assets in practical ways, such as ensuring that designs consider lighting and include safe foot paths for roads and bridges that are improved under the project. In addition, public consultations and gender awareness training events for Government counterparts and contractors will be organized during implementation and the results will be documented. A key objective of these public events will be to identify needs that are more gender specific and which can be considered in design documents. 35. Persons with Disabilities. The Ministry of Natural Resources and Environment (MNRE) has developed access guidelines, which will be used as a construction reference for building and rehabilitating roads and bridges under the project. In addition, the project will carry out access audits during the design phase of roads and structures to ensure that designs are inclusive and 6

15 that features of accessibility, such as ramps and signage, are considered prior to construction. A workshop will be conducted during the early stages of implementation to increase awareness and train key stakeholders in compliance with access guidelines. A local organisation that addresses issues for persons with disabilities could be utilized to provide both access audits and training. PDO Level Results Indicators 36. The principal outcome of the ERAP would be more sustainable access for all road users. The principal outputs: (i) length of roads and number of bridges reconstructed to improved standards; and (ii) revised standards for constructing and maintaining roads and bridges to be more climate resilient. 37. The following indicators would be used to monitor progress towards the project s expected outcomes: Roads rehabilitated to improved standards (km) (core indicator); Bridges rehabilitated to improved standards (number); Reduction in disruptions in traffic flows at targeted locations (number); and Instances when project designs are informed by access audits (number). III. PROJECT DESCRIPTION A. Project Components 38. The ERAP consists of the following three components: (a) Component 1: Road and Bridge Reconstruction (estimated cost US$28.60 million, estimated IDA contribution US$17.70 million). This component would help to repair roads and bridges damaged by TCE, and upgrade, rehabilitate and/or reconstruct existing road sector assets to higher standards to strengthen their resilience to climate change and extreme weather events. The cost includes an estimated US$26.50 million for works and about US$3.00 million for detailed design and supervision activities. During the first year of the project, LTA intends to repair or replace the Leone Bridge, and to widen Vaitele Street. While Leone Bridge and Vaitele Street were the only priority projects identified for improvement during Year 1 of implementation, other road and bridge projects will be selected based on both economic and social factors, including: (i) condition of asset and urgency of repair or replacement; (ii) cost-benefit analyses; (iii) issues of safety; and (iv) population served. If carried out, the proposed bridge crossing over the Mali oli o River in Savai i is expected to require a new road opening of about two km. (b) Component 2: Technical Assistance (estimated cost US$2.00 million, estimated IDA contribution US$1.30 million). Funding would be provided to support institutional and regulatory reforms for road sector assets management and maintenance, including measures to strengthen local capacity, and to increase the sustainability of sector investments. Attention would be given to: (i) revising standards for maintaining and constructing roads and bridges to be more climate resilient; (ii) updating legal, regulatory and enforcement arrangements for enforcing axle load 7

16 limits, which would support the Bank s Development Program Operation (DPO); (iii) strengthening LTA s technical capacity to effectively plan and manage the sector, including developing a bridge maintenance program; and (iv) addressing emerging priority issues that could have an impact on the Government s ability to create more climate resilient road sector assets. (c) Component 3: Project Management (estimated cost US$1.40 million, estimated IDA contribution US$1.00 million). The services of a firm to support implementation will be financed through the project. That same firm will support implementation of both CRWCR and ERAP, both of which will be implemented by LTA. B. Project Financing 39. Partnership Arrangements. The Government of Australia (GoA) has agreed to provide a preliminary amount of up to AUD 13.0 million as co-financing (US$12.0 million equivalent). The extent of funding to be made available will be known after GoA s infrastructure and financing strategies for Samoa are approved. Supporting more climate resilient infrastructure and improving access to economic activities and social services are in-line with key tenets of GoA s infrastructure strategy for Samoa, particularly in terms of contributing to economic growth and alleviating poverty. 40. Project Cost and Financing. Bank funding consists of US$20.0 million in IDA funds, including US$5.0 million from CRW. The resources will support GoS in responding to the impact of exceptional natural disasters. CRW funds will be utilized to reconstruct key road sector assets damaged by TCE, and to build more climate resilient roads and bridges. 41. The estimated costs of each component along with amounts by funding source are summarized in the following table. Retroactive financing of up to SDR million will be available for eligible expenses paid twelve months prior to signing of the Financing Agreement. Component 1. Road & Bridge Reconstruction 1.1 Rehabilitate Existing Road Assets 1.2 Bridge Rehabilitation Program 1.3 Design and Supervision 2. Technical Assistance 2.1 Update Construction Standards 2.2 Axle Load Limit Reforms 2.3 Road Sector Management 2.4 Emerging Priority Issues Overall Cost (US$ mil.) 8, IDA (US$ mil.) GoA (US$ mil.) Project Management Totals: Overall estimated costs are calculated using an exchange rate of AUD 1 = US$ for the GoA contribution. 9 Cost estimates for works include price and physical contingencies. 8

17 C. Lessons Learned and Reflected in the Project Design 42. The proposed ERAP reflects key lessons learned from the Post-Tsunami Reconstruction Project (PTRP) and the CRWCR and the need to address climate change. (a) Investments to reconstruct road sector assets should be designed to incorporate the natural hazard and climate risks they will face and not merely be built to previous standards. Under the ERAP, standards for constructing and maintaining roads and bridges will be revised to make them more resilient to extreme climatic events. (b) Project design should be simple and based on participation by the local communities and beneficiaries. The proposed works are expected to involve basic designs. Public consultations were carried out on Upolu and Savai i on the key components of the ERAP and the associated ESSAF. Residents, who are considered indigenous peoples per OP4.10, identified the need to ensure that plans and designs consider the effects on natural springs, many which are found along road paths, because of their cultural significance. During implementation, consultations will continue for the larger sub-projects that could have larger impacts across communities. (c) Close coordination with other donors is important for delivering assistance efficiently and effectively. GOA and the Bank have a long-standing and positive relationship, and the two teams tasked to the project have established effective lines of communication, which will continue throughout project implementation. (d) Implementation support for emergency loans needs to be intensive. Emergency loans are put together over a shorter time period and as a result, some details are left to be defined during implementation. Flexibility will be required to deal with changing post-disaster conditions, and more Bank implementation support will be provided to this Project. IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 43. The Ministry of Finance would serve as the Executing Agency and the Land Transport Authority (LTA) would be the Implementing Agency for the ERAP, including on behalf of project beneficiaries from other ministries and agencies 10 should the need arise. 44. The consulting firm that will be selected to help manage and implement the CRWCR Project (which is also implemented by LTA) and ensure that the Bank s fiduciary, safeguards and reporting requirements are met, will also provide the same project management and fiduciary services in managing the ERAP. Key staff will likely include a qualified project manager, a procurement specialist, and a financial management specialist/accountant. 10 The other principal ministries and agencies are expected to include the Ministry of Works, Transport and Infrastructure, the Ministry of Natural Resources and Environment, and the Planning and Urban Management Agency. 9

18 45. The Project Steering Committee (PSC) that provides general oversight and policy direction for the implementation of the on-going Second Infrastructure Asset Management Project (SIAM-2) and CRWCR Projects will also have similar responsibilities for ERAP. B. Results Monitoring and Evaluation 46. Monitoring and evaluation of the ERAP will be conducted on two levels: (i) periodic monitoring through semi-annual reports that track progress in terms of distribution of inputs, disbursement of funds, and achievement of targeted indicators, as outlined in the Results Framework in Annex 2; and (ii) project evaluation, which will measure outcomes achieved against baseline indicators. 47. LTA will be responsible for overall management and implementation of the Monitoring Framework, including the provision of timely monitoring reports with operational data, and managing before-and-after analyses. Through its on-going experience with the PTRP, SIAM-2 and CRWCR projects, Samoa has demonstrated the capacity to meet the monitoring and evaluation (M&E) requirements for this project. In addition, public consultations and gender awareness training events for Government counterparts and contractors will be organized during implementation and the results will be documented. C. Sustainability 48. Making road sector assets more resilient to future climatic events is one of the most important considerations to improving the sector s sustainability. The ERAP will support this by revising construction standards for road maintenance and construction to reflect measures to strengthen climate resilience, and updating legal and regulatory arrangements for enforcing axle load limits. 49. Road maintenance reforms have recently been established with support from other Bank projects, including SIAM-2. A series of technical assistance activities have been designed under the ERAP to help ensure that these reforms continue to be rolled out and are strengthened. The most significant of these includes support to strengthen LTA s technical capacity to systematically plan, manage and supervise maintenance contracts, and to develop and implement a bridge maintenance program. V. KEY RISKS AND MITIGATION MEASURES A. Risk Ratings Summary Table Stakeholder Risk Risk Category Implementing Agency Risk Rating Low - Capacity Moderate - Governance Low 10

19 Project Risk - Design Moderate - Social and Environmental Moderate - Program and Donor Low - Delivery Monitoring and Sustainability - Climate Change Overall Implementation Risk B. Overall Risk Rating Explanation Low High Moderate 50. The overall risk rating for implementation is Moderate due to the scope and possible extent of the works expected under the project, which could require some land taking and might lead to delays during implementation if these are not properly managed. The risk due to natural hazards and climate change (threats to road assets due to increase in rain fall and extreme weather events) is rated high and will be partially managed by including revisions to maintenance and construction standards for project roads and bridges. The Operational Risk Assessment Framework (Annex 4) identifies the risks and the corresponding risk management measures. VI. APPRAISAL SUMMARY A. Economic and Financial Analysis 51. Works under the ERAP are expected to have a range of economic, financial and social benefits, including direct economic and financial benefits resulting from: (i) lower vehicle operating costs and reduced travel times due to the re-establishment of direct routes, such as the Leone Bridge; (ii) lower vehicle operating costs and reduced travel times from weather-proofing roads, such as the Mali oli o river crossing in Savai i, which will help to ensure access even during severe weather; and (iii) reduced travel times resulting from expanding road capacity for high volume roads, such as the widening of Vaitele Street. 52. In addition to these direct economic benefits, many of the road improvements will have important, but difficult to quantify, impacts on access to economic and social services, especially for rural communities. For instance, the 2011 population census showed that there are 5,800 people living within a ten km radius of the Mali oli o river crossing in Savai i. In an average wet season, this crossing is impassible for about ten days a year and the local population is cut off from basic education, health, cultural and religious services, as well as places of employment and centers of economic activity. Population living south of the Patamea River is not able to access the two secondary-level education facilities, which are both north of the river. On the other hand, the population to the north is unable to reach the only treatment-level health facility on the island, Tavasi District Hospital, as well as the main economic center of Salelologa without navigating the approximately 120 km the other way around the island. 11

20 53. Building more climate resilient roads and bridges is especially important during lifethreatening weather events, when the movement of people and the mobilization of plant and equipment can mean the difference between life and death. 54. A cost-benefit analysis (including sensitivity analysis) was carried out on an indicative sample of three of the works that are expected to be carried out under the project: (i) widening of Vaitele Street; (ii) rebuilding of the Leone Bridge; and (iii) building a permanent bridge over the Mali oli o River. The estimated net present values (NPV) and internal rates of return (IRR) for these three works were calculated using a standard methodology on the valuation of time savings, information on vehicle operating costs in Samoa, traffic flow data and assumptions about time and distance savings. The results indicate that under central assumptions, works on the Leone Bridge would yield a highly positive NPV and IRR. The widening of Vaitele Street would entail a positive NPV and rate of return in the region of ten percent. Given the lower traffic flows in the provincial area, the financial and economic returns for the bridge at Mali oli o are less than five percent and, yields a negative NPV under the base case and low case scenarios. However, this sub-project is justified on basis of the significant non-quantifiable economic and social factors, e.g., ensuring year-round access to markets and health and education facilities. The following table summarizes costs and benefits. When consolidated, the three sub-projects together have a high positive NPV and IRR of sixteen percent. 55. The cost-benefit analysis is based on informed assumptions about the time savings due to reduced congestion and road closures, which may vary if average traffic speeds or climatic events turn out to be different. Therefore, a sensitivity to the assumptions on time savings for each project and road closures for the Mali oli o River crossing were carried out. The sensitivity analysis shows that under the most conservative estimates, the combined works maintain a positive NPV and rate of return of twelve percent, but the return for the works on Vaitele Street and Mali oli o Bridge are around zero. Under the high case scenario, all three projects have positive NPVs and rates of return in excess of twelve percent. BASE CASE LOW CASE HIGH CASE Cost (US$) NPV IRR (%) NPV IRR (%) NPV IRR (%) Vaitele Street 9,500,000 4, (2,206) 2 13, Leone Bridge 3,000,000 17, , , Mali oli o Ford 3,000,000 (245) 4 (1,419) -2 2, All 17,500,000 19, , , NOTE: NPVs were calculated using a discount rate of five percent. B. Technical 56. Works supported under the ERAP will conform to international standards and be informed by lessons learned from project experience in Samoa. Existing standards for 12

21 constructing and maintaining roads and bridges will be updated to strengthen resilience to climate change and extreme weather events. However, the updated standards are not expected until mid-way through implementation, but some of the bridges are in need of urgent repair/replacement and works cannot be put off until the revised standards are available. In such cases, specialists will be engaged to provide immediate input to appropriate designs. 57. During preparation of the CRWCR, a road safety audit was completed on the WCR in June Many of the key recommendations from that audit are also appropriate for assets to be improved under the ERAP and will be incorporated in the design of works. These include the provision of sealed shoulders, renewal of speed bumps, and installation of lay-bys for bus stops, which will go a long way in improving road safety. 58. Road, bridge and drainage works will be based on conventional technology. C. Financial Management 59. The ERAP s financial management risk assessment identified that LTA currently does not have sufficient staff to manage contracts and meet the fiduciary requirements of this project. Financial management risks will be managed through: (a) Contracting a consulting firm to manage the financial aspects of contracts, and to maintain project financial records. The firm will be required to assign a qualified project accountant to be responsible for project financial management. (b) The consulting firm reconciling its accounting records back to the single account used by the GoS for payment of all accounts. 60. Accounting records will be maintained by the consulting firm, which will keep project records separate from its own accounts. The GoS will open a new segregated designated account (DA) in United States Dollars to enable the IDA and GoA funds to be deposited. The project will be able to use four disbursement methods: (a) advances into the DA; (b) direct payment; (c) reimbursement (of GoS pre-financed expenditure; and (d) special commitment. 61. Project Interim Financial Reports will be required and submitted to the Bank not more than 45 days after the end of the relevant reporting period. Annual audits of the project s financial statements will be required for the life of the ERAP. D. Procurement 62. The procurement capacity assessment noted that LTA does have prior experience with Bank-financed projects, including procurement processes and procedures, however, it does not have sufficient in-house staff to implement a large capital investment portfolio. A consulting firm will be hired to provide project management (including procurement and contract management) support to LTA. 63. Other key actions to mitigate procurement risks include: (i) using simplified procurement procedures, and templates, as agreed with the Bank in January 2013 for the Pacific Region and in 13

22 line with the Government s approval thresholds; and (ii) establishing an effective contracts management system, delineating responsibilities between the project management unit and LTA. 64. Annex 3 provides more details on project procurement arrangements, including an initial summary procurement plan. E. Social (including Safeguards) 65. Public consultation conducted on islands of Upolu and Savai i showed strong support from the expected beneficiaries for the project. Minor land acquisition is expected under the project, particularly in the upgrading of roads and bridges to higher standards. As such, the policies on land acquisition and involuntary resettlement are triggered. LTA has prepared a Land Acquisition and Resettlement Framework (LARF), acceptable to the Bank, to address land acquisition issues. The GoS has demonstrated the capacity to implement land acquisition in a satisfactory manner in prior Bank projects. The Samoa Codes of Environmental Practice (COEPs) of April 2007 incorporates provisions similar to the Bank s OP The World Bank s social safeguards policy on indigenous peoples (IP) (OP/BP 4.10) is triggered by the project. However, IP in Samoa refers to all Samoans in project affected villages. As part of project preparation, GoS engaged a social scientist with qualifications, experience and terms of reference that were acceptable to the Bank, to organize and conduct separate workshops of free and prior informed consultation with the village leaders of areas where the potential activities are expected to take place on the islands of Upolu and Savai i. F. Environment (including Safeguards) 67. The project is Category B from an environmental safeguards perspective, which is consistent with the categorization of similar previous road sector projects in Samoa, including SIAM-2. OP 4.01 on Environmental Assessment is triggered and an ESSAF, acceptable to the Bank, has been prepared by LTA. Each proposed activity will be screened using the ESSAF. When required, Environmental Assessments (EA) and an Environmental Management Plan (EMP) will be generated. The findings of the EA will be used by LTA to improve the designs of road and bridge repairs and reconstruction, and the EMP will be included in the bidding documents and subsequently made part of the contract. Proposed project activities have been initially screened and no other environmental safeguards policies are triggered. None of the proposed project activities are within legally declared protected areas or within or near known cultural heritage sites. Public consultations have been, and will be, carried out to validate these findings. If carried out, the proposed bridge crossing over the Mali oli o River in Savai i is expected to require a new road opening of about two km, and if constructed, it would first be screened using the ESSAF for impacts to both critical and non-critical natural habitats. The environmental impacts of road and bridge works are typical, temporary and relate mostly to construction related impacts and can be adequately covered under the ESSAF and GoS s COEPs. 68. The ESSAF and LARF have been disclosed in-country and at the Infoshop on June 24, 2013 and July 30, 2013, respectively. 14

23 Annex 1: Results Framework and Monitoring Samoa: Enhanced Road Access Project (P145545) Results Framework Project Development Objectives The development objective is to restore key road sector assets damaged by extreme weather events and enhance the climate resilience of critical roads and bridges in Samoa. Project Development Objective Indicators Indicator Name 1. Roads rehabilitated to improved standards (cumulative). 2. Bridges rehabilitated to improved standards (cumulative). 3. Reduction in disruptions in traffic flows at targeted locations. 4. Instances when project designs are informed by access audits. Core Unit of Measure Baseline Cumulative Target Values FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 End Target Frequency Km Project & mission reports. Number Project & mission reports. Number Project & mission reports. Number Access audits not routinely carried out. 1 project design informed by access audits. 3 project designs informed by access audits. 5 project designs informed by access audits. 7 project designs informed by access audits. Project & mission reports. Data Source/ Methodology Consultants reports. Consultants reports. Consultants reports. Consultants reports. Responsibility for Data Collection LTA LTA LTA LTA 15

24 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Cumulative Target Values FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 End Target Frequency Data Source/ Methodology Responsibility for Data collection Agreement on key roads for reconstruction No improvements. Designs & bid docs available for 1 asset (Q4). Works launched for at least 1 asset (Q4). Works finished for at least 1 roads (Q4). Works finished for at least 2 roads (Q4). Works finished for at least 3 roads (Q2). Works finished for at least 5 roads. Project & mission reports. Consultants reports & SPN missions. LTA Identification of specific bridges to be improved. Number No improvements. Designs & bid docs available for at least 2 bridges (Q4). Works launched for at least 2 bridges (Q4). Works finished for at least 2 bridges (Q4). Works finished for at least 3 bridges (Q4). Works finished for at least 4 bridges (Q2). Works finished for at least 6 bridges. Project & mission reports. Consultants reports & SPN missions. LTA 16

25 Annex 1: Results Framework and Monitoring Samoa: Enhanced Road Access Project (P145545) Results Framework Project Development Objective Indicators Indicator Name Roads rehabilitated to improved standards. Bridges rehabilitated to improved standards. Reduction in disruptions in traffic flows at targeted locations. Instances when project designs are informed by access audits. Intermediate Results Indicators Indicator Name Agreement on key roads for reconstruction. Identification of specific bridges to be improved. Description A cumulative measurement of the number of km of roads rehabilitated to improved standards under the ERAP. A cumulative measurement of the number of bridges rehabilitated to improved standards under the ERAP. Targeted locations are expected to include one or more of the following: (i) Leone Bridge; (ii) Vaisigano Bridge; (iii) Lelate Bridge; (iv) Mali oli o Ford crossing; and (iv) Vaitele Street widening. With the exception of the Leone Bridge, baseline measurements of the level of disruption at each location should be obtained prior to making improvements. A cumulative measure of the number of engineering designs for road sector assets (to be improved under the ERAP) that incorporate one or more recommendations from access audits. Description A cumulative measurement of the availability of design documents and subsequent completion of road works. A cumulative measurement of the availability of design documents and subsequent completion of bridge improvements. 17

26 Annex 2: Detailed Project Description Samoa: Enhanced Road Access Project Component 1: Road and Bridge Reconstruction (estimated cost US$28.60 million, estimated IDA contribution US$17.70 million.) 1. This component would help to repair roads and bridges damaged by Tropical Cyclone Evan, and upgrade, rehabilitate and/or reconstruct existing road sector assets to higher standards to strengthen their resilience to climate change and extreme weather events. The amount above includes an estimated US$25.70 million for works and about US$2.90 million for detailed design and supervision activities. 2. It should be noted that the roads and bridges identified in the following sections are considered priority projects, but that there is not enough funding under the ERAP to reconstruct all that are listed. Decisions about specific investments will be taken during project implementation. Component 1.1: Roads Program (US$15.50 million) 3. Summaries of possible road improvements are provided below. 4. Widen Vaitele Street from Vailoa Road to Atone Road through the Industrial Zone (estimated cost US$9.5 million). This road is heavily trafficked with frequent congestion and there is an urgent need to both widen the road and improve drainage. It forms a critical part of the Mulifanua to Apia Economic Corridor and would complete the widening initiated under SIAM-2. Vaitele Street forms a critical part of the Mulifanua to Apia Economic Corridor. It is considered to be the country s most important section of road and supports heavy traffic with frequent congestion, especially from Vailoa Road to Atone Road through the Industrial Zone. During TCE, it played a vital role in providing access to and from affected areas, and strengthening this asset s resilience to climatic events is a priority for GoS. 5. The total length of the widening would be approximately 2.3 km and could be considered as two separate sections with different specifications and costs: (a) Section 1: from Vailoa Road to Vaitele Industrial Road junction (1.4 km) through suburban residential area, four-lane plus central turning, sidewalk / covered drain on one-side, shoulder / open drain system on the other side, streetlights, relocation of services, pedestrian crossings (similar to Lepea Vailoa section currently under construction). Estimated construction cost is US$4.75 million. (b) Section 2: through the Vaitele industrial Area to Atone Road (0.9 km), four-lane plus central turning, sidewalks /covered drains on both sides, streetlights, relocation of services, pedestrian crossings, plot access (similar to original Vaitele Street). Estimated construction cost is US$4.75 million. 6. Upgrade Cross-Island Road (estimated cost US$4.5 million). This road is the primary land transport link between North and South Upolu. It is heavily trafficked on the Northern side 18

27 where it is steep and winding, and has poor drainage and safety issues (no sidewalks, no shoulders, no streetlights, etc.) with several pedestrian-vehicle conflict areas. During TCE it suffered damage in several places. The drainage systems were overwhelmed and the road was washed away in several areas. The project would fund the detailed design along the full length of the road from Leufisa to Siumu, and the first phase of construction on the northern side (about 3 km) to address the challenges noted above in order to bring it to primary urban road design standard. The project would also finance the first phase of construction. 7. Upgrade Aleisa Road (estimated cost US$8.0 million, this cost estimate includes design and assumes a first phase construction of 5 km). Aleisa Road is about 20 km in length and partly serves as a commuter route. It provides primary access to and from the southwest side of Upolu and Apia, and is also a potential alternative all-weather link between Apia and Faleolo Airport/Mulifanua Ferry Terminal. Although undefined at this moment, improvements could include road and bridge widening, alignment improvements, and the incorporation of appropriate drainage systems and shoulders. The project would fund the detailed design along the full length of the road, and possibly some works. Component 1.2: Bridge Rehabilitation Program (US$10.20 million) 8. Many of the bridges to be rehabilitated or replaced are expected to be chosen from the list of twelve bridges nominated as needing urgent repairs in the report produced by the Australian Civilian Corps. Bridge rehabilitation works may involve a range of different treatments, but would likely include repairs to, or replacement of, bridge components or sections, spalling concrete, corrosion of steelwork, scouring at abutments, stream scouring, faulty expansion joints, replacement of balustrades, and removal of river blockages. 9. The twelve bridges that are under consideration for these works are located in Apia (some of which are in rural areas of Upolu) and include: Vaisigano (L032) Leone (L035) Fagalii Center (L053) Sopoaga (L081) Solosolo West (L098) Luatuanu u West (L102) Aia (L148) Togafuafua North (L046) Nu usuatia (L067) Tafitoala (L068) Sataoa (L065) Laulii West (L105) 10. Re-inspection of some of the bridges during preparation missions confirmed earlier findings concerning scouring. Lower water levels allowed fuller inspection, and indicated that the bridges at Laulii West, Luatuanu u West, Solosolo East, and Solosolo West had all experienced scouring problems, resulting in poor support for abutments and/or wingwalls. 19

28 Resulting from the lack of support, there is settlement and movement of abutments and wingwalls, opening of abutment to deck joints with resultant drainage problems, and road damage. The main reason for the movement is lack of support for wingwalls, due to their founding on shallow spread footings rather than on piled footings. This is a design fault, which can be avoided by recognizing that the alluvial silts, sands and gravels forming the river beds are very susceptible to deep scouring, and that abutments and wingwalls require piled footing systems. Repair of existing unsupported abutments and / or wingwalls should preferably be provided by piles founded deep enough to avoid future damage. While very deep mass concrete footings could be adopted, they are likely to be difficult to construct due to instability of excavations. Remedial pile systems could utilize smaller section piles than generally used for abutment and pier construction, but these need to be founded at depths below expected scouring levels. 11. More immediate bridge works are also required, which involve the placement of load ratings on understrength bridges, the enforcement of these load ratings through a public awareness campaign, and the removal of debris from rivers upstream and adjacent to bridges. This work is necessary to ensure the security of the existing bridge networks and should be completed before the upcoming wet season in Samoa. 12. If required, this component would also finance temporary crossings while bridge works are being carried out. 13. Vaisigano River Crossings (est. US$5.0 million). Three key bridges cross the Vaisigano River in Apia, including the Leone, Vaisigano and Lelata Bridges. During TCE, excessive flooding and damage from large tree trunks that acted as battering rams damaged the Leone Bridge causing one pier to settle and the bridge deck to crack. The bridge has been closed to vehicular traffic since TCE. The other two bridges were not damaged. However, only the Lelata Bridge remains open to heavy vehicles, which is severely restricting access to and from Apia Port and adjacent industrial areas. As such, the first works to be carried out under the ERAP will be to repair or replace the Leone Bridge. In its report, the Australian Civil Corps recommended: (a) (b) Continued restriction of Vaisigano Bridge (at the mouth of the Vaisigano River) to light vehicles until the bridge is strengthened or replaced; and No action on Lelata Bridge, which was undamaged during TCE. 14. Before committing funds to bridge projects other than the Leone Bridge, it is recommended that an assessment of long-term options for routing heavy vehicle traffic across the Vaisigano River be carried out, including the potential eastern extension of Vaitele Street. If carried out, the assessment should be combined with an evaluation of the four ford crossings proposed for Savai i (following section), with a view to prioritizing them based on economic and social factors. 20

29 15. Ford Crossings in Savai i. 11 GoS has indicated it would like to replace up to four ford crossings in Savai i with permanent bridges. The following are descriptions of the situation at each location. (a) Mali oli o Ford (estimated cost US$3.0 million; this cost estimate includes 1 km of new road construction): Approximately 30 km from Salelologa, this bridge is prone to flash flooding. Its catchment area appears to be long and narrow. Water gets channeled in a narrow gorge, thereby increasing the velocity. During January 2013 it was reported to have flooded three times. During the rainy season ( November to March), flooding is estimated to occur twice a month and people have died as a result. When flooding occurs, the bridge can be cut off for up to eight hours. When this happens, people cannot cross, children cannot get to school, residents are not able to visit the island s main hospital, which is located on the south side of the bridge, and commuters from the north are unable to get to work in Salelologa. The closures have also affected funerals because there is only one mortuary on the island. The Government is considering one of two options to address the situation: (i) Option 1 - The T-Junction option involves building a bridge about 400 meters before the ford crossing that would make use of existing abutments which are on opposite sides of the river. 12 The abutments were constructed in 1989, but the Government was unable to reach agreement with the landowners to proceed and this option was abandoned. The T-junction option is the Government s preferred choice as it was reported that a resolution to the land issue had been agreed. This option would require the opening of a new road of approximately two km in length to connect with the existing ring road of Savai i. The possible site of the new road opening is covered with typical local flora. During public consultations and discussions with MNRE, there was been no indication of the existence of critical natural habitats or physical cultural resources in the area. The land associated with this project is classified as customary, and the decision to allow use of the land for this new road is in process using community mechanisms that are envisaged to include gender and intergenerational representation. (ii) Option 2 - Build a bridge at the ford itself, although this is not the Government s preferred option. (b) (c) Lano Ford (estimated cost of US$1.0 million): Located about thirteen km from Salelologa, this ford is vulnerable to high tides and storm surges. Located on a curve, an adjustment to the present alignment may be necessary and therefore land acquisition could be required. The overall length of the bridge would be up to 25 meters. Sapapalii Ford (estimated cost of US$0.75 million): Situated some five km north of Salelologa, this ford has eight 450 mm culverts, but only one is flowing fully with the rest partially or fully blocked. The main hospital is on the south side of the ford. 11 All of these ford crossings are located on Savaii s existing ring road, which is approximately 150 km in length. 12 The river is approximately 30 meters wide at the abutments. 21

30 (d) The Government would like to build a slightly elevated bridge with a new alignment. This would involve constructing up to 200 meters of new road on the north side, which is customary land and would require consultation with land owners. During works, a temporary traffic diversion plan would be needed. Letui Ford (estimated cost of US$0.75 million): Located about 60 km north of Salelologa, this 30 meter long ford has a spillway on its downstream face (northeast side), which has been scoured and undermined over the years by repeated flooding. During construction, a traffic diversion plan would be needed. However, this is the last priority because it is more remote, less populated, less trafficked, and residents could use the ring road going west and south as an alternate route to get to Salelologa. 16. Road and Bridge Selection. The selection of roads and bridges for improvement under the ERAP will be based on both economic and social factors, including: (i) condition of asset and urgency of repair or replacement; (ii) cost-benefit analysis; (iii) issues of safety; and (iv) population served. Component 1.3: Design and Supervision (US$2.90 million) 17. This sub-component would provide support to prepare detailed designs for road and bridge works, and qualified engineers to supervise construction. Component 2: Technical Assistance (total estimated cost US$2.00 million, estimated IDA contribution US$1.30 million) 18. Funding would be provided to support institutional and regulatory reforms in how road sector assets are managed and maintained, including measures to strengthen local capacity, and to increase the sustainability of sector investments. Attention would be given to: (i) revising construction standards for road maintenance and construction to reflect measures to strengthen climate resilience; (ii) updating legal and regulatory arrangements for enforcing axle load limits; (iii) strengthening LTA s technical capacity to effectively plan and manage the sector; and (iv) responding to existing or emerging priority issues that could have an impact on the Government s ability to create more climate resilient road sector assets. Component 2.1: Revise National Road and Bridge Standards (US$0.25 million) 19. This component would support revisions to the national standards for maintaining and constructing roads and bridges with a view to strengthening them to be more climate resilient, and to better withstand the expected increase in the frequency and intensity of extreme climatic events. Presently, the only way to incorporate more resilient standards in contractual documents requires the use of special provisions, which can vary in quality and rigor, depending on the authors writing skills and their understanding of the detailed technical requirements to be described. 20. Other operations, including the CRWCR, have earmarked funding to help assess and/or revise standards for constructing and maintaining road sector assets, however, it is unlikely that 22

31 the amounts will be enough. As a result, funding is being provided to help the Government complete this important work. Activities under this component would also take into consideration and support the expected updates to axle load limits (see Component 2.2). Component 2.2: Update Axle-Load Limit Standards and Enforcement (US$0.25 million) 21. A 2013 study carried out by the LTA found that out of a sample of 49 heavy vehicles tested, 100 percent exceeded the maximum allowable weight per axle of 6.6 tons. The lack of enforcement of vehicle loading regulations has led to dangerously overloaded heavy vehicles, which is an important factor in the premature degradation of road surfaces, rendering them vulnerable to further deterioration from climatic events. 22. LTA recently submitted revisions to the Road Traffic Regulations Act of 1961 to Parliament for its consideration. The revisions are to provide for the use of weighbridges to monitor loading and amend the Road Traffic (Payment of Fines) Act of 2009 to introduce penalties for exceeding maximum weight regulations. The enactment of these reforms in combination with updated limits would enhance the effectiveness of enforcement. 23. Under this sub-component, technical assistance would be provided to support the Government s on-going efforts to update the country s load limits for vehicles. While there is financial support for this initiative through other operations, the amounts are not enough to carry out all of the activities needed to modify and enforce revised standards. As such, a number of tasks could be carried out under this component, including: assessing current axle load limits and proposing revisions so that they are in line with modern vehicle requirements; reviewing and updating the legislative and regulatory framework covering axle load limits and their enforcement; evaluating the most appropriate means to monitor loading and enforce the updated limits (e.g., fixed weighbridges, portable weigh pads, weigh-in-motion equipment); carrying out field surveys, including calculations on actual loading capacities for roads and bridges; procuring appropriate hardware and software and supervising supply and installation as required; and training LTA staff on monitoring and enforcement of axle load limits, and use of equipment, if any. Component 2.3: Road Sector Management (US$0.50 million) 24. LTA is currently responsible for managing contracts for services ranging from simple grass cutting along roadsides to major works. Overall, LTA oversees around eighty contracts per 23

32 year on both Upolu and Savai i. Combined, these contracts are valued at about SAT 29.1 million (US$13.2 million) To strengthen LTA s technical capacity to systematically plan, manage and supervise maintenance contracts, support would be extended to build capacity and transfer knowledge. Some possible areas for development include negotiating terms and conditions in contracts and ensuring compliance with the terms and conditions, documenting and agreeing on changes or amendments to contracts that may arise during execution, and maximizing financial and operational performance, while minimizing risks. 26. Following TCE, LTA supported the Australian Civil Corps Engineers to assess the condition of bridges in Upolu and Savai i and to prepare the subsequent bridge condition report. During these inspections LTA indicated the need to strengthen its bridge maintenance program, including training in this area. As part of this sub-component, it is expected that support will be extended to strengthen the management of bridge assets. This would help to ensure that bridge assets are operating at a level that is fit for their intended purpose, and that risks of failure are managed to ensure safety of users, while minimizing the financial investment required. Incountry and international training would be used to promote learning and could include training on several topics, such as: conducting routine maintenance inspections of roads and bridges; carrying out detailed condition assessments; developing rehabilitation and maintenance strategies; preparing road sector works programs and budgets; latest methods for sealing roads; managing road laboratories; or calibrating traffic signals. 27. The training would then enable the development of costed programs for road and bridge maintenance and rehabilitation programs. The works could then be tendered out to local contractors to carry out the works. The consistent maintenance and rehabilitation of assets is an essential part of making structures more resilient to climate change. In addition, the acquisition of some equipment is expected, such as roughometers to help measure the roughness of roads, and equipment to update LTA s road laboratory. Component 2.4: Emerging Priority Issues (US$1.00 million) 28. This sub-component has been designed to flexibly respond to existing or emerging priority issues that could have an impact on the Government s ability to create more climate resilient road sector assets. With a focus on building local capacity, consultants would be brought in to provide short- or long-term technical support. While specific interventions have 13 In 2013, LTA is overseeing 22 routine maintenance contracts (12 on Upolu and 10 on Savaii), four drainage contracts (all in Apia), 12 grass cutting contracts (all on Upolu), and 50 capital works contracts. 24

33 not been identified, possible areas of support could include carrying out feasibility studies and evaluations for specific road or bridge improvements (including environmental and social assessments and associated documents), conducting studies on rain flows and drainage, gathering hydrological data, modeling of bridge catchment areas, updating aerial photos or remote sensing imaging of the country, and making revisions to Samoa s Codes of Environmental Practice. Funding will be utilized to carry out public consultations and training events to elevate awareness of safeguards, gender and access for persons with disabilities, as well as to conduct access audits of designs for works to be carried out under the ERAP. Component 3: Project Management (total estimated cost US$1.40 million, estimated IDA contribution US$1.00 million) 29. Resources would be utilized to hire a firm to provide project management support, including monitoring and evaluation, to the implementing agency, LTA. To help carry out the project and ensure that the Bank s fiduciary, safeguards and reporting requirements are met, the consulting firm that was selected to provide similar services for CRWCR, which is also implemented by LTA, will also help manage the ERAP and provide project management support to LTA. It is expected that key staff will include a qualified project manager, a procurement specialist, and a financial management specialist/accountant. In addition, it is anticipated that a safeguards specialist will be needed, but at something less than full-time. 30. The design and supervision consultants will be responsible for providing key technical inputs for the bidding and evaluation process, while the consulting firm will be responsible for finalizing the bidding documents prior to inviting bids, and LTA will be responsible for finalizing the evaluation and award process, in liaison with the Tenders Board. 31. These cost-sharing arrangements between CRWCR and ERAP are expected to reduce the overall cost of this component by an estimated US$1 million. 25

34 Annex 3: Implementation Arrangements Samoa: Enhanced Road Access Project Project Institutional and Implementation Arrangements 1. The Ministry of Finance would serve as the Executing Agency and the Land Transport Authority (LTA) would be the Implementing Agency for the ERAP. The LTA will manage the ERAP on behalf of project beneficiaries from other ministries and agencies, and will be responsible for: (i) procurement of all services, goods and equipment; (ii) financial record keeping, reporting and disbursements; (iii) project monitoring and reporting; and (iv) contractual obligations with IDA. 2. The LTA has been one of two implementing agencies for the SIAM-2, PTRP, and CRWCR projects, and is responsible for overseeing and managing the country s road networks. LTA is a statutory authority with responsibility for road use management (vehicle registration, driver licensing, traffic management), road safety programs, and road asset management (construction and maintenance). The LTA has: (i) a Board of Directors, appointed by the Government, which consists of three Directors who represent the interests of the community, commercial sector and road users; (ii) three Directors who represent the interests of government; and (iii) LTA s Chief Executive Officer, who has no voting rights. 3. LTA was formed in July 2009 as part of Government reform initiatives that consolidated road use and road asset management functions from agencies into LTA. In particular, this involved transferring road asset management functions, staff and systems, along with experience with Bank safeguard policies and financial management and procurement procedures, from the MWTI to LTA. The LTA has established a good track record in implementing road construction and maintenance projects, including works under the ongoing Bank-financed SIAM-2, PTRP and CRWCR projects. 4. To help manage and implement the project and ensure that the Bank s fiduciary, safeguards and reporting requirements are met, the consulting firm that was selected to provide similar services for CRWCR, which is also implemented by LTA, will also help manage the ERAP and provide project management support to LTA. It is expected that key staff will include a qualified project manager, a procurement specialist, and a financial management specialist/accountant. 5. Should the occasion arise, LTA will carry out the procurement and financial management of specific activities on behalf of other line ministries and agencies. In these instances, the Ministry of Finance (MoF) will ensure that the relevant line ministry and/or agency support LTA in managing the technical aspects of activities associated with their sectors, including preparing terms of reference, and implementing, monitoring, evaluating and providing comments on the activities and specific outputs. If required, local and/or international consultants may be hired under the project to support the technical specialists in these duties. 26

35 6. In implementing the ERAP, LTA will be guided by the PSC that has been established for the on-going SIAM-2, PTRP and CRWCR Projects. The PSC will provide general oversight and policy direction during project implementation and will review progress and the results of periodic monitoring and evaluation activities. The PSC is Chaired by MoF, with the CEOs from MWTI, LTA and the Ministry of Natural Resources and Environment (MNRE) serving as co- Chairs. In addition, the PSC has established processes for progress reporting and review. To streamline oversight across the sector, this PSC will extend its scope to provide oversight and guidance to the ERAP. To strengthen coordination and implementation, membership in the PSC may be expanded to include representation from other stakeholders. The PSC will meet on a semi-annual basis, or more frequently, if needed. 7. During project implementation, a range of consultant services may be procured to support core program management functions. Consultants might be recruited for a variety of activities, including independent supervision of works, technical audits, or impact evaluations. Financial Management, Disbursements and Procurement Financial Management 8. A financial management assessment was carried out in accordance with the Financial Management Practices in World Bank-Financed Investment Operations, issued by the Financial Management Sector Board on November 3, 2005 and further rationalized in the Principles Based Financial Management Practice Manual issued by the Board on March 1, Under the Bank s OP/BP with respect to projects financed by the Bank, the Recipient and the implementing agency are required to maintain financial management systems including accounting, financial reporting, and auditing systems adequate to ensure they can provide the Bank with accurate and timely information regarding the project resources and expenditures. 9. Financial Management Risks and Measures. The LTA will be the implementing agency and has previous experience with Bank-financed projects. While the LTA has financial management systems and financial management (FM) capacity that may enable it to provide the FM requirements for the project, it has limited number of FM staff. 10. The ERAP s financial management risk before implementing the mitigating measures is assessed as Substantial, but could be reduced to Moderate after the proposed mitigating measures (described below) are implemented and have shown effective impact. The main mitigating measures to reduce the FM risks associated with the current financial management system are the following: 27

36 Employment of a consulting firm to be responsible for managing all financial aspects of contracts, and maintaining project financial records. The managing contractor will be required to employ, or have already employed, a qualified project accountant who would be responsible for the FM requirements of the project; and Evidence that the consulting firm reconciles its accounting records back to the single account used by the Government of Samoa for payment of all accounts. 11. Budgeting Arrangements. The consulting firm will be responsible for preparing any counterpart (GoS) funding arrangements, excluding any in-kind contributions, in advance and time-bound to the Government s budget cycle, and include those expenditures that must be reflected in national and local budgets in annual budget proposals. The procurement plan will be the initial basis for the preparation of the budget for IDA and GoA funds. The consulting firm would have responsibility for day-to-day monitoring of the budget. There will be a regular review of the budget and as changes arise the budget will be updated at least every 12 months. 12. Accounting Arrangements. Project accounting records will be maintained by the consulting firm, which will keep project records separate from the contractors own accounts. This may be done through the use of a separate accounting system, or using the facilities of their accounting system to isolate project expenditures. MoF will provide the consulting firm with a monthly print out of payments made and this will be reconciled back to the managing contractor s records. 13. MoF will maintain the project on the Government accounting system, Finance One, but only as a one-line item in their records and hence, there will be insufficient information for reporting and management purposes. Therefore, the consulting firm will be required to maintain a set of project accounts to enable financial reporting. The consulting firm will prepare the financial documentation and verify all payments before sending them to MoF for final authorization and payment. MoF will provide the consulting firm with a monthly print out of payments made and this will be reconciled back to the managing contractor s records. 14. Internal Controls and Internal Audit. Authorization of payments is done through MoF, and hence, requires compliance with government financial policies. This provides a basis for the internal controls, which include segregation between the processing done by the contracting agency and payment of accounts done by the MoF, a comprehensive set of authorizations throughout the life of the transactions, and adequate checks and balances before any payment is made. The project will rely on the Government s control systems and the external audit, rather than an internal audit of project systems. Given that a small number of large payments to contractors for road and bridge construction will account for the majority of the project funds, and the Government s previous experience in like projects, the lack of an internal audit function is unlikely to have a material effect on the FM risk. 15. Flow of Funds. The Government will open a new segregated DA in United States Dollars (US$) to enable IDA and GoA funds to be deposited into this account. MoF will pay 28

37 project expenditures from their budget account and reimburse this expenditure from the DA. Payments will be based on documentation prepared by the managing contractor. 16. The project will be able to use four disbursement methods: (a) advances into the DA; (b) direct payment; (c) reimbursement of GoS pre-financed expenditure; and (d) special commitment. It is anticipated that the majority of expenditures will be by direct payment and reimbursement although a DA will require to be opened. All disbursement from the World Bank will be through Withdrawal Applications and the documentation required for the replenishment of the DA will be by Statement of Expenditure. 17. Financial Reporting Arrangements. The consulting firm will prepare and submit project quarterly Interim Financial Reports (IFRs) to the Bank in a format agreed at negotiations. IFRs will be due 45 days after the end of the relevant reporting period. 18. External Audit Arrangements. The audit of Project Financial Statements will be conducted by the Samoa Audit Office, which is the auditor for all government agencies and World Bank projects managed by government agencies in Samoa. Annual audits of the project s financial statements will be required for the life of the Project. These reports will be required to be received by the World Bank, within six months of the end of the fiscal year for which the reports have been audited. In addition, a copy of the management letter outlining matters that have arisen during the audit will also be requested by the World Bank. 19. Financial Management Action Plan. Actions to mitigate project financial management risks are outlined in the following table: Action Date Due Responsibility Appointment of Consulting Firm ASAP MoF FM to review technical evaluation report to determine adequacy of Project On completion of the Technical Evaluation FMS to review, LTA to send to WB. Accountant qualifications and experience. Report. Agree on format of unaudited IFRs to be Prior to disbursement. GoS, consulting firm used. Reconcile project accounts back to MoF report. Disbursements Monthly, from commencement of implementation. & Bank FMS. Consulting Firm 20. The project will use four disbursement methods: (i) advance; (ii) reimbursement; (iii) direct payment; and (iv) special commitment. To facilitate the means of payment for the majority of day-to-day expenses, a DA will be opened to enable the Bank to advance funds to the 29

38 project. Documentation required for the replenishment of the advance will be by Statement of Expenditure and while documentation will not be required to be sent, except for those contracts subject to prior review, the project will be expected to retain documentation for audit purposes and for review by staff. 21. LTA or the consulting firm will prepare the Withdrawal Applications and will send the Withdrawal Applications, along with accompanying documentation, to MoF for review, signing and submission to the World Bank. 22. The project will have one disbursement category, as shown below. Category (1) Goods, civil works, non-consulting services, consultants services, training and workshops, and incremental operating costs for the Project. Procurement Amount of the Grants Allocated in US$ mil. (to be expressed in SDR mil.) US$20.00 (SDR 13.30) Percentage of Expenditures to be Financed (inclusive of Taxes) 100% 23. Guidelines. Procurement under the proposed project will be carried out in accordance with the Bank s Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers, dated January 2011 ( Procurement Guidelines ), and Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits & Grants by World Bank Borrowers dated January 2011 ( Consultant Guidelines ), as well as the provisions stipulated in the Financing Agreement(s). 24. Procurement Plan. The Procurement Plan will be updated at least annually, or as required to reflect project implementation needs and supervision capacity assessments. Procurement will follow the streamlined procedures envisaged for Emergency Response Operations processed under OP/BP Initial procurement activities are included in the following summary procurement plan. # Contract Description Est. Cost (US$ mil.) Bank Review (Prior/ Post) 1 Road and Bridge Reconstruction Proc. Method Implementation Scheduling (Month/Year) Invite Bids/ Proposals Procurement Process Receive Bids/ Proposals Award Contract Contract Completion 30

39 Design & Supervision: Leone Bridge Design & Supervision- Vaitele St. Widening Design & Supervision: Rehab Works Works Package 1: Leone Bridge Works Package 2: Vaitele St. Widening Works Package 3: Road Rehab.- 2 lots, Upolu & Savaii Works Package 4: Ford Crossings, Savaii 0.40 Prior QCBS SEP 13 OCT 13 JAN 14 DEC Prior QCBS NOV 13 DEC 13 MAY 14 DEC Prior QCBS JAN 14 FEB 14 JUL 14 DEC Prior ICB APR 14 MAY 14 JUL 14 JAN Prior ICB SEP 14 OCT 14 JAN 15 JAN Prior ICB 4.00 Prior NCB 2 Technical Assistance Revise Road & Bridge Standards Update Axle Load Limits Road Sector Management Priority Issues 0.25 Post tbd tbd tbd tbd tbd 0.25 Post tbd tbd tbd tbd tbd 0.50 Prior tbd tbd tbd tbd tbd Tbd tbd tbd tbd tbd tbd tbd 3 Project Management 3.1 PM Services 1.40 Prior RFP to be issued in SEP 13 combined with CRWCR. Total:

40 25. Procurement of Goods. Goods to be procured under the project include equipment for LTA for enforcement of axle loads limits. Bids will be invited under national competitive bidding (NCB) or shopping procedures, as identified in the procurement plan. The first two contracts processed under the NCB method will be subject to prior review, and all contracts processed under the shopping method will be subject to post review. 26. Selection of Consultants. Consultants will be hired under the project for project management, design and supervision, and advisory services. A firm will be hired for project management services for both the CRWCR and ERAP. The Bank s standard request for proposal documents will be used for the selection of firms. 27. Thresholds, Documents and Templates. Thresholds, sample documents and templates, as agreed and provided in the Bank s Guidance Manual, Making Procurement and Financial Management Work for Fragile and Small States in the Pacific dated January 2013, shall be followed, while adhering to the Government s approval thresholds. The Bank s latest standard bidding and request for proposal documents will be used for all procurement under international competitive bidding, and the selection of firms, respectively. 28. Retroactive Financing. Retroactive financing of up to SDR million will be available for eligible expenses paid prior to the signing of the Financing Agreement, but not more than twelve months prior to the date of the countersigning of the Financing Agreement. Eligible expenditures will include works associated with the TCE recovery effort and consultant services for road designs. 29. Capacity Assessment. The procurement capacity and risk assessment was carried out in June 2013, and the assessment report and risk mitigation action plan are available in the project portal. Key risks identified are associated with inadequate procurement and contract management capacity, inconsistency in the application of the guidelines, and a protracted clearance process. While LTA is familiar with the Bank s procurement processes and procedures, it has inadequate in-house capacity to carry out the day-to-day activities in procurement and contract supervision. 30. Procurement Arrangements. The consulting firm hired by MOF for managing the project will be responsible for managing the procurement process for all contracts under the project, and following up on contract deliverables. The LTA has a technical consultant in place who will ensure the timely delivery of technical inputs for the procurement process, and will supervise the goods and works contracts, and the design and supervision consultants. Design and supervision consultants will be responsible for providing key technical inputs for the bidding and evaluation process, while the consulting firm will be responsible for finalizing the bidding documents prior to inviting bids and assisting in the evaluation process. LTA will be responsible for finalizing the evaluation and award process, in liaison with the Tenders Board. LTA will ensure that award of contracts and other key procurement information is regularly published on the MOF s 32

41 procurement website. LTA will assign staff to work closely with the consultants to ensure effective transfer of knowledge. Environmental and Social (including safeguards) 31. Environment. The project is Category B from an environmental safeguards perspective. This is consistent with the categorization of similar and previous road and bridge projects carried out in Samoa, including SIAM-2. OP 4.01 on Environmental Assessment is triggered and an Environmental and Social Safeguards Assessment Framework (ESSAF) has been prepared by LTA. Each activity will be screened by LTA using the ESSAF. When required, environmental assessments will be carried out and an environmental management plan (EMP) will be generated. The findings of the EA will be used by LTA to improve the design of the road and bridge repairs and reconstruction, and the EMP will be included in the bidding documents and subsequently made part of the winning bidder s contractual obligations. All proposed activities in the ERAP have been initially screened and no other environmental safeguards policies are triggered. None of the proposed project activities are within legally declared protected areas or within or near known cultural heritage sites. Public consultations have been, and will continue to be, carried out to validate these findings. The environmental impacts of road and bridge repairs and reconstruction are typical, temporary and relate mostly to construction related impacts. These can be adequately covered under the ESSAF and the GoS Codes of Environmental Practice (COEP). A study commissioned by LTA in 2012 on quarries in Samoa revealed a potential shortage of construction material (gravel, sand, rocks) for the proposed civil works. In addition, measures to prevent the proliferation of illegal quarries will need to be enforced. Optimization of operations and output of existing quarry sites is also recommended. 32. The LTA has previously implemented Bank projects, including SIAM-2 and PTRP, and is familiar with Bank Safeguards requirements. The LTA, together with MNRE/PUMA, will ensure that compliance with the safeguards requirements is adequate and effective. Compliance and monitoring during implementation will be carried out jointly by staff from LTA and MNRE/PUMA. The staff and resources necessary to carry out this task are adequate. 33. Social. Results of the public consultation conducted on Upolu and Savai i showed strong support for the project from the expected beneficiaries as it would restore access and/or help to assure future access to and from their residences, places of worship, institutions and places of business. Minor land acquisition can be expected under the project, particularly in the upgrading of roads and bridges to higher standards. As such, the policy on land acquisition and involuntary resettlement is triggered, which will be addressed by the Land Acquisition and Resettlement Framework (LARF) prepared by LTA. The GoS has demonstrated the capacity to implement such a frameworks from prior projects with the Bank. The Samoa Codes of Environmental Practice of April 2007 incorporates provision similar to the Bank s OP As is the practice in Samoa, GoS holds monies in trust in instances when documentation of agreements for compensation is delayed due to absentee land owners. This practice is widely accepted by affected people, as confirmed in previous projects. 33

42 34. The integration of Samoa s customs and tradition is enshrined in the Constitution and Samoa s Westminster-based legal system, and is continually evolving towards a harmonized system of governance that combines the best of both. There are, however, some deep-seated differences in both systems that occasionally challenge the fragile balance between community rights that is emphasized in traditional governance, and the rights of individuals that are safeguarded by the Constitution. These differences sometimes manifest themselves as constraints in the planning and implementation of government-led development interventions, especially where customary owned resources, including land, are involved. 35. The World Bank s social safeguards policy on indigenous peoples, OP/BP 4.10 is triggered by the project. Indigenous peoples in this context refers generally to all native Samoans in project affected villages. As part of project preparation, GoS engaged a social scientist whose qualifications, experience and terms of reference were acceptable to the Bank. The social scientist helped to organize and conduct two workshops with village leaders (which meet the requirements of free and prior informed consultations) to establish broad community support for project activities.. These public consultations also elicited input to the project design as follows: In consideration of the cultural significance of fresh water pools that are often located along roadways, effects on such pools will be avoided and if not avoidable, designs and plans will be finalized after consultations with the affected communities. In accordance with Samoan indigenous protocol, matai orators will be asked to facilitate discussions with affected landlord matais, while at other times internal community mechanisms will be used. Inclusion of safety provisions for pedestrians and vulnerable groups (including people with disabilities, school children and senior citizens) in respect of road widening. Provisions for non-motorized travel. Avoidance of negative impacts on traditional sources of livelihoods, e.g., mangroves where fish and mollusks are gathered. Taking into account suggestions of communities, when addressing flooding from rivers and waterways. 36. Consultations were also carried out with staff of involved agencies to help ensure the coordination of their respective roles during implementation. 37. LTA and other supporting agencies have demonstrated sufficient familiarity with social safeguards, particularly with land acquisition, and a growing ability to manage compliance with them. 34

43 Monitoring & Evaluation 38. Monitoring and evaluation will be conducted on two principal levels: (i) periodic monitoring will involve semi-annual reports that track progress in terms of distribution of inputs, disbursement of funds, and achievement of targeted indicators, as outlined in the Results Framework in Annex 1; and (ii) project evaluation, which will measure outcomes achieved against baseline indicators. 39. LTA will be responsible for the overall management and implementation of the Monitoring Framework. This will include providing timely monitoring reports with operational data, and managing before-and-after analyses. Through its ongoing experience with the PTRP, SIAM-2 and CRWCR projects, LTA has demonstrated capacity to meet the M&E requirements of this project. Role of Partners 40. The GoA and the Bank have a long-standing and positive relationship in the region generally and specifically in Samoa. Effective lines of communication have been established between the Bank and GoA, which was a valuable partner during preparation of the ERAP. GoA provided review and input to draft project documents and fielded a Team that worked effectively with the Bank in appraising the project. 41. GoA s engagement with the ERAP will continue throughout implementation. GoA will participate fully in implementation support missions. 35

44 Annex 4: Operational Risk Assessment Framework Samoa: Enhanced Road Access Project Risks 1. Project Stakeholder Risks 1.1 Stakeholder Risk Rating: Low Risk Description: The project has been requested by Government and local communities expressed support for the project during consultations as part of project preparation. Risk Management: Consultations with local communities will be continued during project implementation. MoF will coordinate project activities among key Government entities. Bank missions will seek wide participation among key ministries and agencies during implementation support missions. Resp: LTA/MNRE and Bank 2. Implementing Agency (IA) Risks (including Fiduciary Risks) 2.1 Capacity Rating: Moderate Risk Description: LTA has successfully implemented Bank projects in the sector. However, capacity assessments have identified the need for additional capacity to implement the project, especially on fiduciary aspects. Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed Risk Management: Technical assistance will be provided for project management (including the management of all procurement, financial, and contract administration activities), and design and supervision of construction of road rehabilitation and drainage works. The procurement plan will identify appropriate contract packaging, which will be subject to prior review. Bank missions will review the adequacy of capacity enhancement provided by the consultants. Resp: LTA/World Bank 2.2 Governance Rating: Low Risk Description: The project will adopt the governance structure already in place for the satisfactory Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed Risk Management: Bank missions will monitor the effectiveness of the governance structure, in particular on fiduciary aspects, on an on-going basis. 36

45 implementation of on-going Bank road sector projects. Resp: LTA Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed 3. Project Risks 3.1 Design Rating: Moderate Risk Description: Project activities are straightforward and LTA has implemented similar projects. The inclusion of client resilient features is an innovation under the project. Risk Management: The project includes technical assistance to prepare designs and bid documents. The Bank and the Australian Government will provide implementation support throughout the design supervision process. Resp: LTA/WB/GoA Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed 3.2 Social and Environmental Risk Description: LTA has implemented Bank projects in compliance with Bank safeguards requirements. The project is not expected to have significant environmental impacts and only limited land acquisition and resettlement is envisaged. The project ESSAF meets Bank requirements, including consultations and disclosure. Rating: Moderate Risk Management: The ESSAF will be upgraded to a detailed management plan for handling land issues once detailed designs are finalized. MNRE and PUMA will enforce regulations on establishing and operating quarries, and will optimize utilization of existing quarries. Bank missions will review the implementation of ESSAF, in particular the preparation of EAs and EMPs for subprojects (as required), inclusion of the EMP in bid documents and contracts, timely payment of compensation to affected persons, adherence to Samoan traditional practices, and implementation of the EMP. Resp: LTA/MNRE/WB Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed 3.3 Program and Donor Rating: Low Risk Description: GoA has been closely involved in the preparation of the project and is committed to provide co-financing support. GoA funds will need to be provided by December 31, Delivery Monitoring and Sustainability Risk Management: The Bank and GoA will continue to work closely in providing implementation support. The Bank will confirm the timely provision of GoA co-financing for the project. Resp: World Bank/GoA Rating: Low Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed 37

46 Risk Description: LTA has demonstrated the ability to manage and monitor the implementation of Bank projects in a satisfactory manner. The proposed will build on these experiences. Reforms in how road maintenance is carried out have recently been established. Support for these reforms continues under SIAM Climate Change / Natural Hazards Risk Description: An increase in rain fall and extreme weather events threaten road sector assets. Risk Management: An outside firm will be hired under the project to supervise construction of road sector assets. The Bank and GoA will monitor contract management and M&E on an on-going basis throughout the project implementation period. Resp: LTA Rating: High Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed Risk Management: CRWCR will assess vulnerability of the country s road network to extreme climatic events and propose recommendations. The ERAP will support revisions to maintenance and construction standards for roads and bridges. Resp: LTA Status: In progress Stage: Implementation Recurrent: Due Date: On-going Frequency: As needed 4 Overall Risk: Moderate Comments: Given the scope and possible extent of the works expected under the project, there is a chance that some land take will be required, which could lead to delays during implementation if not properly managed. 38

47 Annex 5: Implementation Support Plan Samoa: Enhanced Road Access Project Strategy and Approach for Implementation Support 1. The overall implementation risk for the project is moderate, with climate change risk rated high, and capacity, design, and social & environmental risks rated moderate. Project design already includes technical assistance through consulting firms for design and supervision, as well as project management (including fiduciary aspects). The strategy and approach for Bank implementation support will be on successful implementation of these risk management measures, as well as measures already in place in respect of fiduciary aspects and safeguards (e.g., procurement plan, ESSAF). 2. During the design phase, a decision will be taken as to the number and size of works packages to be tendered. The projected sizes of the respective packages are expected to be large enough to attract the interest of the local contracting industry. To ensure quality, the same firm that does the design work will also be responsible for supervising all works packages. In addition, the Bank will provide its views on the preliminary designs (especially as they relate to climate resilience) that are submitted to the Client for consideration. Implementation Support Plan 3. Bank missions to support implementation will be conducted about every six months, or more frequently, if needed. GoA counterparts will be invited to participate in all missions. At least once per year the missions will include technical, fiduciary and safeguard specialists, who will provide input on road and bridge design and construction, carry out post-reviews on contract management, conduct random audits of expenditures and check on filing of documents and provide on-the-job and formal training on fiduciary aspects. Safeguards specialists will also work with counterparts to help ensure that the project complies with all relevant safeguard frameworks and plans. 4. The estimated level of annual support needed is identified in the following table. Main Focus of Implementation Support Time Focus Skills Needed Resource Estimate Partner Role First 12 months Following 12 to 60 Project launch and start-up Project implementation Task Team Leader Operations Officer Technical Procurement Financial Management Environment Social Administrative Support Task Team Leader Operations Officer US$85,000 US$340,000 GoA to provide technical support. GoA to provide technical support. 39

48 months Technical Procurement Financial Management Environment Social Administrative Support Skills Mix Required Skills Needed Number of Staff Weeks Number of Trips Comments Task Team Leader Operations Officer Technical Procurement Financial Management Environment Social Administrative Support The estimates for number of staff weeks and number of trips are on an annual basis. Partners Name Institution/Country Role Government of Australia AusAID / Canberra, Australia Support during implementation. AusAID / Apia, Samoa 40

49 Annex 6: Maps Samoa: Enhanced Road Access Project 41

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